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Home My WebLink About2005-11-16 `oJH, s�N„q oa ORANGE COUNTY SANITATION DISTRICT x f� November 9, 2005 �NC f phone: 17141962-2411 NOTICE OF MEETING fax: (714)962,0356 www.acsd.com mailing address: BOARD OF DIRECTORS D. 127 Fountaiin ValBoxley, CA ORANGE COUNTY SANITATION DISTRICT 92728-8127 street address: 10844 Ellis Avenue Fountain Valley. CA WEDNESDAY, November 16, 2005 — 7:00 P.M. 92708-7018 Member Agencies DISTRICT'S ADMINISTRATIVE OFFICES ® 10844 Ellis Avenue Cities Fountain Valley, California 92708 Anaheim Brea Buena Park Cypress Fountain Valley Fullerton The Regular Meeting of the Board of Directors of the Orange County Sanitation Garden Grove Huntington Beach District will be held at the above location, time and date. Irvine La Habra La Palma Los Alamitos Newport Beach !/ / Orange Placentia Bbard Secre ry Santa Ana Seal Beach Stanton Tustin Villa Park Yorba Linda County of Orange GWR SYSTEM STEERING COMMITTEE - Monday, November 14, 2005 at 5:30 p.m. @OCWD Sanitary Districts STEERING COMMITTEE - Wednesday, November 16, 2005 at 5:00 p.m. Costa Mesa Midway City PDC COMMITTEE - Thursday, December 1, 2005 at 5:00 p.m. Water Districts OMTS COMMITTEE - Wednesday, December 7, 2005 at 5:00 p.m. Irvine Ranch FAHR COMMITTEE - Wednesday, December 14, 2005 at 5:00 p.m. CIP OVERSIGHT AD HOC COMMITTEE - Tuesday, December 15, 2005 at 5:00 p.m. To maintain world-class leadership in wastewater and water resource management. b BOARD MEETING DATES *December 21, 2005 January 25, 2006 February 22, 2006 March 22, 2006 April 26, 2006 May 24, 2006 June 28, 2006 July 26, 2006 August 23, 2006 September 27, 2006 October 25, 2006 *November 15, 2006 *Meetings are being held on the third Wednesday of the month HAdept\pa13201BS\Agenda12005 Meeting NoticeslMN9.2.doc ROLL CALL BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT MEETING DATE: 11/16/05 TIME: 7:00 p.m. (SIMONIAN) .................... ANDERSON................... ✓ (YOST) ............................ ANTOS ......................... ✓ (WILSON) ........................ BANKHEAD................... t/ (AMBRIZ).......................... CAVECCHE................... ✓ ? �31��, s�� (GARCIA) ......................... CHRISTY..................... (COLLINS)........................ CRANDALL................... �_ 9393a (ROSEN) .......................... DALTON....................... (KAWASHIMA) .............. DAVERT...................... (WILSON)........................ DUVALL...................... (UNDERHILL)................... ECKENRODE.................�� (SCHAFER)...................... FERRYMAN...................�� (BORTLE)......................... FRESCHI .............. ..... (COOK) ............................ HARDY......................... ✓ (CHOI) .............................. KANG.......................... Q-" a� (SONDHI) ......................... LUEBBEN..................... (DOW) .............................. 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WALDMAN.................... ✓ STAFF: Arhontes Ghirelli Herber Kovac ✓ � e2�� Kyle Ludwin Miles Tomko Tyner ✓ OTHERS: Ho in Nixon 10/26/05 H:ldeptladmin\BSIDIRECTOR\Directors Roll Call.doc SIGN-IN SHEET ORANGE COUNTY SANITATION DISTRICT k BOARD MEETING NAME ORGANIZATION/FIRM lease print) lease print) _ e H:\WP.DTA\ADMIN\BS\FORMS\SIGN-IN FORM.DOC REQUEST TO ADDRESS THE BOARD OF DIRECTORS All persons wishing to address the Board on specific agenda items or matters of general interest should complete and submit this form to the Board Secretary prior to commencement of the Board meeting. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting for distribution. DATE: I 116 QS AGENDA ITEM NO. 1 13 NAME: (please print) e-e-/e'�- HOME ADDRESS: g 3 Z, Ale w/u n d S Z v-e-e- 1 (number/street) m)dwaV c'; 4 , c y 2 ,6 ss (city/zip cod ) TELEPHONE: 71y ) REPRESENTING: S (self/name of organization) • m U ltivlslon ,, transcript MEDIA: Television STATION: KNBC (NBC) MARKET: Los Angeles, CA DATE: 11/14/05 TIME: 05:25 PM —rl PROGRAM: Channel 4 News SUBJECT: Fish and Pollution ESTIMATED IMPRESSIONS: 251,331 ESTIMATED PUBLICITY VALUE (per 30 seconds): 511,377.75 Paul Moyer, Co-Anchor: Could contaminated ocean water create sexual abnormalities in wildlife? That's what scientists at LIC Riverside are suggesting today in their study of fish found along the Los Angeles and Orange County coastlines. Channel 4's Vikki Vargas is live in Whittier to try to sort this out for us. Vikki. Vikki Vargas, Reporter: And, Paul, we are at the L.A. County Sanitation District, this one of many entities studying those fish. Right now, biologists are delivering their study, their initial findings, to a national conference in Baltimore. But we know this much—everyone seems to agree, whatever it is, it's in the water. [Clip begins] Imedia available for purchase • 800.560.0111 • info@multivisioninc.com now= " " =w t:�.•.�..,.e•:-.< mm.muitivisionmc.com 12 m u Ctivisioninc. :• ttirag c r.f.I Vargas: Biologists studied two species of fish: the hornyhead turbo and English sole. Both are considered bottom feeders. Experts say they would be the most likely to show the effects of chemical sediment. The study was conducted off the southern California coast. From Santa Monica to Huntington Beach, biologists stopped near three sewage outfall pipes, believing they might lead to the source of contaminants. Scientists say, of the sixty-four fish they brought to the surface, eleven male fish had female sexual characteristics. David Montagne, Biologist, L.A. County Sanitation District: The testes of some of these male fish have eggs in them. This is a female trait, not expected in these fish. Whether it—how it affects these individual males', uh, reproductive vitality, we don't know at this point. Vargas: It is the first time biologists have discovered what they call "hormone disruptors" in this area of the Pacific Ocean. UC Riverside biologist Dan Schlenk is investigating the source of the toxins. Dan Schlenk, Biologist, UC Riverside: The animals that we collect with Orange County off of the wastewater outfall are being exposed to estrogen. There's no doubt. -- � (Media available for purchase •800.560.0111 • info@multivisioninc.com s ONO = ,. :�:w:..:��. <e. ww..multivisiminc.com pag<! 2 13 m u ltivisioninc. :• msl : p . Vargas: Sanitation experts say there is no threat to swimmers or surfers; that so far, the biological changes in the fish are not affecting their overall population. Montagne: We are seeing an effect. We're seeing the signature in of effect. What we don't know is the cause, the source, the route of exposure, or for that matter, the ecological significance of the effect, uh, for these two species of fish. Vargas: Scientists actually went fishing along six hundred miles of California coastline. The affected fish, the bulk of them, they say, were found off the Palos Verdes Peninsula. Live in Whittier, I'm Vikki Vargas, Channel 4 News. (Media available for purchase • 800,560.0111 • info@multivisioninc.com flaw Nasals e„p nab rnClMea WMM4.awa(1we�nL WbCa I� lrrm fKntYtaml,it4pu,rpowalrurtYabf6►ieA�l3Tl<M www.multivisioniric.com cage ,, 14 Printed from pe.com Page 1 of 2 UCR scientist finds key to sex alterations in fish 07:07 AM PST on Tuesdav,November 15,2005 By JENNIFER BOWLES/The Press-Enterprise Sunscreen may be good for people, but bad for male fish off the Southern California coast. Sunscreen washed off in the shower or flushed down the sink appears to sexually alter male fish, a UC Riverside scientist has found, raising concerns that sewage contains chemicals that can affect an animal's reproductive system. Dan Schlenk, in some of the first studies examining how ocean species react to hormone-disrupting compounds, found that a chemical in the widely used skin product is partly to blame for some male fish developing ovary tissue and female egg protein. Oxybenzone -- which protects skin from ultraviolet light and mimics the chemical makeup of the female hormone estrogen -- survives the RESEARCH:wed-sex fish were found among two co m un spedos of flatfish that feed in bottom sediments:English sole and sewage-treatment process and settles onto the hornyhead turbot. ocean floor at sewage outfalls, where bottom- dwelling fish like sole and turbot consume it. 'IVIN 0°I"f' lW 1»<tuuto i � 8AN1A So far, Schlenk said, the presence of the mixed- UPSuNIM % — gender fish isn't affecting the species' ability to r •` je E reproduce. The fish ratio is about 60 percent male /' Y•Com and 40 percent female, which is about normal. w ` ttatAlBECUM �•` Previous studies by other scientists have shown that mixed-gender fish were infertile. The 11 male fish which had both male and female organs were found at eight "It doesn't appear to be that big of a deal here," of14sdesbetwenHuntingtonSuch Schlenk, a professor of aquatic eco-toxicology, and Santa Monica. said Monday in a telephone interview. He is in �Ukl SIIIINERN CUIFO;xlAmts,,14 WAIlR R1stificH KWiCT Baltimore this week presenting his studies at theme {"� Society of Environmental Toxicology and P 111ustration: Click to enlarge Chemistry. Oxybenzone, Schlenk said, is similar in chemical structure to estrogen, the female sex hormone. Women send estrogen -- naturally occurring and from birth-control pills -- into the sewage through their urine. But Schlenk said natural estrogen for unknown reasons doesn't appear to feminize male fish. "The only compound we can exclusively identify is oxybenzone," Schlenk said. Schlenk said that while oxybenzone most likely plays a contributing role, it might not be a primary player. Off the Palos Verdes Peninsula, experts believe the pesticide DDT dumped long ago appears to http://www.pe.com/cgi-bin/bi/gold_print.cgi 11/15/2005 15 Printed from pe.com Page 2 of 2 _ be feminizing fish in that area, he said. Health Advisory Estrogenic substances such as oxybenzone discharge into the ocean two to seven miles offshore and aren't considered a threat to beachgoers. State officials, however,have long advised against eating bottom-feeding fish caught between Malibu and Newport Beach because of health risks from chemical contaminants. At the Huntington Beach outfall more than three miles off the coast, Mary Ann Irwin,a UCR graduate working with Schlenk, found that 47 of 72 male turbot and sole produced a female egg protein, much higher than fish a few miles to the north. "Obviously, it's not supposed to be there," Schlenk said. And in a similar study conducted by the Southern California Coastal Water Research Project, 11 of 64 fish caught between Santa Monica and Huntington Beach had ovary tissue in their testes. The group's director, Steve Weisberg, said the research is in its early stages and more studies need to be conducted on more fish species to determine the significance of the findings. In Schlenk's UCR lab, he exposed halibut for one week to sediment from outfalls off Huntington Beach, the Palos Verdes Peninsula and San Diego. All the males grew small amounts of female egg protein,he said. Schlenk said his studies were funded primarily through the University of California Marine Council and its coastal environmental quality initiative. Orange County Sanitation District allowed Schlenk and Irwin on its boats so they could collect fish specimens. More studies are planned, he said. The studies looked at sewage outfall from Los Angeles and Orange counties, which is about one billion gallons a day. While most sewage from the Inland area flows into the Santa Ana River, most of it is collected by the Orange County Water District, which filters it into groundwater basins and pumps it back out for drinking water. Shlenk said that while he found similar estrogenic compounds in the Santa Ana River by Prado Dam near Corona, they haven't shown up in the well water that is sent to Orange County residents. The Associated Press contributed to this report. Online at: http://www.pe.com/breakingnews/local/stories/PE_News_Local_H_fishl5.cf49b98.html http://www.pe.com/cgi-bin/bi/gold_print.cgi 11/15/2005 16 Q Los Angeles Times: Sewage Altering Fish, Study Reports Page 1 of 4 posAs amm http://www.latimes.coiii/iiews/local/la-me-fishl 4nov 14,1,1354342.story Sewage Altering Fish, Study Reports Male bottom-dwellers with female sex characteristics are found near outfall pipes in waters off Los Angeles and orange counties. By Marla Cone Times Staff Writer November 14, 2005 Male fish with female characteristics have been discovered in ocean waters off Los Angeles and Orange counties, raising concerns that treated sewage released offshore contains hormone- disrupting compounds that are deforming the sex organs of marine life. Scientists around the world have found sexual abnormalities in frogs, fish, alligators and other wild animals exposed to sewage effluent and industrial contaminants that mimic estrogens and other hormones. But the latest research in the waters off Southern California is among the first to find such effects in ocean creatures. Eleven male bottom-dwelling fish out of 64 caught between Santa Monica and Huntington Beach had ovary tissue in their testes. No such sexual defects were found elsewhere off Southern California, even though fish were collected from Point Conception to the U.S.-Mexico border. Two other studies found other signs of feminized fish in the same ocean areas. Two-thirds of male turbot and sole caught near Orange County's sewage outfall had egg-producing proteins. And when males were exposed in a laboratory to ocean sediment collected off the Palos Verdes Peninsula and Huntington Beach—where huge volumes of sewage effluent are pumped out to sea—all of them developed female egg proteins. Dan Schlenk, an aquatic ecotoxicologist at UC Riverside who co-wrote two of the three studies to be reported today at a national conference, said it is clear that the ocean floor at the sewage outfalls is contaminated with estrogenic compounds that are feminizing fish. But effects on the overall health and abundance of fish populations and the rest of the marine ecosystem are unknown. "There's definitely estrogenic activity out there; no doubt," Schlenk said. "But whether it affects populations of the animals is the question we need to answer." Every day, nearly 1 billion gallons of treated wastewater from an area that includes about 9 million people are discharged into deep waters off Huntington Beach, the Palos Verdes Peninsula and Playa del Rey via three long undersea pipelines, called outfalls, operated by the two counties and the city of Los Angeles. Sewage effluent contains several dozen chemicals—both natural and man-made—that can alter http://www.latimes.com/news/local/la-me-fish14nov14,1,445136,print.story 11/15/2005 17 Los Angeles Times: Sewage Altering Fish, Study Reports Page 2 of 4 animal hormones, environmental scientists say. Women excrete natural estrogen and man-made forms from birth-control pills, and some industrial chemicals,pesticides and compounds in household items are endocrine disruptors, which mimic hormones. The wastewater is filtered and processed,but many contaminants remain and settle into ocean sediment, where they are consumed by bottom-feeding organisms. Excessive amounts of estrogens or estrogen mimics can create so-called intersex animals with both male and female genitals. Previously, scientists have shown that some fish with the altered organs were infertile. The effect on humans, however, is largely unknown and unproven, though some studies have linked hormone-mimicking chemicals to reduced sperm counts, altered genitalia in baby boys and premature puberty in girls. One study, for example, found that men exposed to agricultural pesticides were more likely to have defective sperm and low sperm counts than those with little or no exposure. Another found that phthalates, used in plastics and beauty products and widely found in people, seemed to alter the reproductive organs of baby boys. The estrogenic substances in the effluent are not considered a threat to people swimming or surfing at Southland beaches. The outfalls discharge into waters two to seven miles offshore. Eating fish from the area, however, has long been a health concern because the pesticide DDT and other toxic substances have contaminated the ocean floor. Turbot, sole and other bottom-dwelling fish can ingest the contaminants. State health officials for years have advised people to limit consumption of many bottom-feeding fish caught between Malibu and Newport Beach because of the risk of cancer and neurological and reproductive effects. No specific chemicals have been implicated in the new studies, but at the Palos Verdes Peninsula site, some experts suspect that a decades-old, 100-ton deposit of DDT, which can mimic estrogen in its effect on some animals, could be responsible. A pesticide plant near Torrance dumped waste into Los Angeles County sewers for three decades. The mixed-sex fish were found among two common species of flatfish that feed in bottom sediments: English sole and hornyhead turbot. The study was conducted by the Southern California Coastal Water Research Project, which has researched ocean contamination for 35 years using county, state and federal funds. Eighty-two male turbot and sole were caught at 30 sites along about 600 miles of coastline, and the 11 with both male and female organs were found at eight of 14 sites between Huntington Beach and Port Hueneme, said Doris Vidal, a researcher at the institute who led the study. Bob Horvath, head of technical services at the Los Angeles County Sanitation Districts, said that although the numbers were small, finding ovary tissue in males near the sewage outfalls was worrisome and had spurred more research. Next spring, the water research institute plans to collect about 50 flatfish from each of five outfalls between Ventura and San Diego and compare them to fish from a relatively uncontaminated area http://www.latimes.com/news/local/la-me-fish 14nov 14,1,445136,print.story 11/15/2005 18 Los Angeles Times: Sewage Altering Fish, Study Reports Page 3 of 4 off Dana Point. Results will be ready about a year later. Steve Weisberg, the institute's director, said that the results cannot be considered definitive because of the small numbers of fish, but that"certainly this is some very good information, and the first of its kind." The most intriguing aspect, he said, is that "we did not find any intersex fish north of Santa Monica Bay or south of Newport Bay, which suggests some association with the presence of the outfalls and contaminated sediments." He added that "this is also the most highly urbanized portion of Southern California," which means contaminants from rivers and runoff might also be altering the fish. Since the early 1990s, scientists have found altered hormones or deformed sex organs in alligators in Florida, fish in British rivers, frogs in the Midwest, polar bears in the Norwegian Arctic and a variety of other creatures, mostly aquatic ones. But until now, nearly all the research has been conducted in freshwater environments, mostly rivers and lakes. Only a few projects have examined ocean creatures, mostly in British estuaries. Results of the Southern California studies will be reported at the annual meeting of the Society of Environmental Toxicology and Chemistry in Baltimore. Scientists today also will report sexually altered fish being found in San Francisco Bay, Puget Sound and New York Harbor. The Southern California studies are particularly unusual because the fish were caught in deep water. Gary AnkIey, branch chief of the U.S. Environmental Protection Agency's National Health and Environmental Effects Research Laboratory, called the feminized fish "a worldwide phenomenon." "What's being seen in these fish is not physiologically normal," he said. "But we are still trying to sort out the significance of this to the fish. Is it just a localized phenomenon, a few individuals around the outfalls that are really impacted? Or does it impact populations as a whole?That is the 64-million-dollar question." Scientists are concerned that the feminized fish off Southern California might be less fertile and cause some species to disappear. But so far, there have been no declines in the abundance of turbot or sole in the region, even around the outfalls, Weisberg said. "We don't see any clear evidence of ecological disruption," he noted. At the Huntington Beach outfall,UC Riverside environmental toxicologist Mary Ann Irwin found that 47 of 72 male turbot and sole produced female egg protein, and the amounts of the protein were higher than in fish caught a few miles to the north. But she also found that the two species remain commonplace there, and males outnumber females. In Schlenk's laboratory, halibut were exposed for one week to sediment collected at outfalls off Huntington Beach, the Palos Verdes Peninsula and San Diego, and all the males grew small amounts of female egg protein. The Palos Verdes fish developed five times more egg protein than fish exposed to the Huntington Beach sediment and 10 times more than those exposed to relatively clean sediment collected between the two outfalls. But to Schlenk's surprise, man-made estrogens, not the more potent natural ones, were apparently hUp://www.latimes.com/news/local/la-me-fishl4nov14,1,445136,print.story 11/15/2005 19 Los Angeles Times: Sewage Altering Fish, Study Reports Page 4 of 4 responsible for feminizing the fish. There was no correlation between natural estrogens and the egg proteins in the fish. The research team tested 62 man-made contaminants in the wastewater, but only one— oxybenzone, used in sunscreens—stood out, and it was unlikely to be the only culprit. Even widespread chemicals in plastics and detergents called nonylphenols—found in high doses in Orange County's sediment and implicated in other studies—were not linked to the amount of egg proteins in the fish, Schlenk said. If you want other stories on this topic,search the Archives at latimes.com/archives. TMS&prims Article licensing and reprint options Copyright 2005 Los Angeles Times I Privacy Policy I Terms of Service Home Delivery I Advertise I Archives I Contact I Site Map I Help PARTNERS: kda 0 MW http://www.latimes.com/news/local/la-me-fishl4novl4,1,445136,print.story 11/15/2005 20 0 The Orange County Register Page 1 of 1 n Tuesday,November 15,2005 Users should pay for improved infrastructure Devil is in the details of the governor's trial balloon of'roads, bridges, ports, levees'project As your morning commute probably showed,California needs to construct more roads.The state also needs better waterways,drinking water, levees and ports. After the massive defeat by voters last week of his reform plank, Gov.Arnold Schwarzenegger is considering more than $50 billion in new bonds to fund such state construction projects,"reminiscent of the Pat Brown era"of the early 1960s, according to published reports. "What I've said to my team is give me the whole package: highways,freeways,bridges, ports,the levees-everything that has to do with infrastructure that will upgrade the state,"the governor is quoted as saying."Give me the whole plan and all the options of how to finance that. Let's not Mickey Mouse around here and try to introduce a$5 billion bond to fix transportation. It's bogus. Or$10 billion. Its bigger than that." The key phrase is"all the options."Bob Poole,the director of transportation studies at the Reason Foundation, pointed out to us that there are basically two ways to fund such projects.The first is general-fund bonds,which must be repaid out of the state's general fund. Currently,the state still has a$6 billion structural deficit in its general-fund budget,something not helped Nov.8 when voters rejected a modest spending-reduction initiative, Proposition 76. The second way is revenue bonds,which are paid off by those who use the improvement. For example,toll-road revenue bonds are paid off through the tolls;and water revenue bonds are paid off through higher water rates. Revenue bonds are especially attractive because they are paid by users;those who don't use the service don't pay. Mr. Poole pointed out that the governor is a co-sponsor of A13850, by Assemblyman Joe Canciamilla, D-Pittsburg.The bipartisan bill would allow Caltrans to have the authority,which had expired in 2003,to build toll roads and to permit public- private partnerships to build toll roads. Even for improving the drinking water supply,"there's no reason in principle you couldn't do that with revenue bonds,"Mr. Poole said."It gives you greater capacity and would be reflected in the price of water."He added that environmentalists should be much happier with the revenue bond approach because construction based on price-sensitive usage would be more likely to encourage conservation than construction paid for from the general fund. (Mr. Poole said it would be harder to charge tolls on waterways because it's hard to see who pays for improvements on rivers and channels.) We hope the governor will prefer these more innovative, user-pays approaches to a centralized approach using general fund revenue. Indeed, his 2004 California Performance Review, still largely unimplemented, included 38 infrastructure recommendations along decentralization lines, such as"privatizing roadside rest stops"and"outsourcing maintenance"on highways. Finally, although the Pat Brown era may be remembered fondly by some, he left office with an unfunded general-fund budget so huge that his successor, Ronald Reagan,was forced to give up a no-new-taxes pledge and raise taxes by$1 billion. Factoring inflation and population growth,that would be a$20 billion tax increase today. Even today's biggest Democratic spendthrifts haven't proposed that. Copyright 2005 The Orange County Register I Privacy+policy I User agreement http://www.ocregister.com/ocregister/opinion/commentary/editorials/print_769051.php 11/15/2005 21 Los Angeles Times: State Deficit Could Deter Bond Issue Pagel of 3 1108.44"tame FIo as 99 MUndtnp httl)://ww%v.ltttinies.com/business/la-ti-bonds 15nov l 5.1.1970618.story State Deficit Could Deter Bond Issue California must show it can afford the added debt of an infrastructure program, some say. By Tom Petruno Times Staff Writer November 15, 2005 A potential borrowing campaign to fund new roads, schools and other public facilities in California drew a generally positive response on Wall Street on Monday, but with a caveat: Sacramento should get its budget balanced first, many investors say. Gov. Arnold Schwarzenegger's staff is drafting plans for a massive bond issue of$50 billion or more to pay for public works projects across the state, The Times reported Monday, citing people who have been working with the administration. In 2004, many on Wall Street were critical of a $15-billion bond deal that California voters approved to cover the state's accumulated budget deficits. But analysts noted that the new borrowing proposal would be more in line with the accepted use of bond financing to pay for long- lasting investments such as highways, levees and other infrastructure projects. And as the most populous state, California could justify such an investing program as well as any state, some say. "If you're going to borrow, it should be for capital investment," said Tim Blake, who tracks California municipal debt for credit rating firm Moody's Investors Service in New York. What's more, the state's current debt load isn't burdensome by some Wall Street yardsticks, leaving room for additional borrowing. California has about $55 billion in bonds outstanding, counting those issues backed by general fund tax revenue. A Moody's study this year of the 50 states said California's debt load amounted to about 4.7%of the personal income of the state's residents, using 2003 data. That was above the median state figure of 2.4%, but below the levels of some other populous states, including New Jersey (7.4%) and Illinois (6.2%). California's bond debt per capita, at $1,545, ranks fourth among the 10 most populous states and ninth among all the states, Moody's said. Because many investors have judged the state's debt levels to be reasonable, California has been able to issue new bonds with relative ease in recent years, despite ongoing budget woes. http://www.Iatimes.com/business/la-fi-bondsI5nov15,1,6575638,print.story 11/15/2005 22 0 Los Angeles Times: State Deficit Could Deter Bond Issue Page 2 of 3 "The California bond market is very strong," said Robin Rappaport, municipal debt strategist at investment firm Payden& Rygel in Los Angeles. If the state were to propose $50 billion in new borrowing, "I think investor demand will be there if a reasonable amount of bonds comes out at one time," she said. Infrastructure borrowing typically is done over a period of years, as projects are ramped up, rather than in one fell swoop. From investors'viewpoint, the appeal of a huge wave of bond issuance is that California municipal debt is exempt from federal and state income taxes. So investors would have more bonds from which to choose for tax-free income. With interest rates in general on the rise, the bonds could be even more lucrative for investors. Still, many analysts said Monday that Wall Street's reception for new California debt would hinge on whether the state could balance its annual budget. Sacramento has for the last few years continued to rely on deficit financing to close budget gaps, which is the main reason California's credit rating is the lowest of all the states, experts say. "The debt burden is not the issue with the rating—it's the finances," said Steven Zimmermann, an analyst at credit rating firm Standard& Poor's. "The state economy is among the best in the nation, but the budget process is just dysfunctional," said David Blair, an analyst at Nuveen Investments in Irvine. A balanced budget would be key to stoking investors' confidence about new bond issuance, said Robert Pariseau, manager of the USAA California muni bond mutual fund. The state must show it can afford its current spending as well as the added cost of greater interest expense over time, he said. A bigger interest bill would mean "that's money that won't be there for something else" in the annual budget, Pariseau said. Debt service costs now consume about 6% of annual state revenue. The Republican governor's proposal is likely to have wide bipartisan support—and may help Schwarzenegger rebuild popularity after his ballot measures to curb state spending were defeated in last week's special election. Treasurer Phil Angelides, who is seeking the Democratic nomination for governor next year, said he had no quarrel with selling bonds to help finance long-term investment in the state, noting Monday that he had been a "forceful advocate" for infrastructure spending. Even so, Angelides said there was no point in discussing a new bond program before the budget was balanced. "You've got to show people how you're going to pay for it," he said of infrastructure spending. H.D. Palmer, spokesman for the state Department of Finance, said the borrowing program "is still a work in progress," and no total figure had been proposed for a bond issue, which would require voter approval. http://www.latimes.com/business/la-fi-bondsl5novl5,1,6575638,print.story 11/15/2005 23 Los Angeles Times: State Deficit Could Deter Bond Issue Page 3 of 3 (BEGIN TEXT OF INFOBOX) Room to borrow? Measured as a percentage of personal income or per capita, California's debt load is below that of some other big states but is well above the median for all states. Data for the 10 most populous states: State: Debt to personal income; Debt per capita New Jersey: 7.4%; $2,901 New York: 7.2%; $2,593 Illinois: 6.2%; $2,019 California: 4.7%; $1,545 Florida: 3.4%; $1,008 Ohio: 2.9%; $866 Georgia: 2.8%; $803 Pennsylvania: 2.3%; $730 Michigan: 2.2%; $691 Texas: 1.0%; $279 Median (all states): 2.4%; $703 Personal income data is for 2003; per-capita data is for 2004. Source: Moody's Investors Service If you want other stories on this topic, search the Archives at latimes.com/archives. DISReprinks Article licensing and reprint options Copyright 2005 Los Angeles Times I Privacy Policy I Terms of Service Home Delivery I Advertise I Archives I Contact I Site Map I Help PARTNERS: k0b 0 http://www.latimes.com/business/la-fi-bondsl5nov15,1,6575638,print.story 11/15/2005 24 ti Governor promotes huge bond Pagel of 2 Posted on Tue, Nov. 15, 2005 Governor promotes huge bond BORROWING BILLIONS FOR PUBLIC WORKS By Evan Halper Los Angeles Times SACRAMENTO-Coming off a losing campaign to curb state spending, Gov. Arnold Schwarzenegger is promoting a statewide public works program that may be financed by a bond sale so large it dwarfs previous state borrowings. The governor hopes to join with Democratic leaders and businesses to address Californians' growing frustration with clogged roads, polluted water, hospital shortages, overcrowded schools and, in the wake of the devastation in New Orleans, inadequate disaster preparedness. Schwarzenegger also is seizing an issue with wide bipartisan support in an effort to restore his image as a moderate, although his plan threatens to cause tension with some conservative allies who have long warned against more government borrowing. If he succeeds, Schwarzenegger could reposition himself in the model of former Gov. Pat Brown, who by the time he left office in 1967 had created a legacy of roads, waterways and universities that continue to help drive the state economy today. ' 'What I've said to my team is . . . give me the whole package: highways, freeways, bridges, ports, the levees -- everything that has to do with infrastructure that will upgrade the state," Schwarzenegger said in a recent interview. ' 'Give me the whole plan and all the options of how to finance that . . . Let's not Mickey Mouse around here and try to introduce a $5 billion bond to fix transportation. It's bogus. Or$10 billion. It's bigger than that." Big price tag The governor has not decided on an amount. But groups that have been working closely with the administration say the price tag could be $50 billion or more. Fifty billion dollars ''to $100 billion wouldn't be out of the question if we could show voters this would help solve our state's problems," said Jim Earp, executive director of the California Alliance for Jobs, an umbrella group for the state's heavy construction industry. Business groups acknowledge that the state may not be able to sell such a large bond issue unless lawmakers and voters alike go along with a tax increase to back it up -- perhaps a new quarter- or half-cent sales tax or billions of dollars in new user fees that could affect businesses. It is possible that Schwarzenegger ' 'will bite a lot of bullets to do this," said Tony Quinn, co-editor of the California Target Book, a non-partisan election guide. ' 'Don't be surprised if the governor says, 'Yes, this costs money, but it is something we have to do.' He'll say that otherwise we cannot have the state we envisioned for our children and grandchildren." ' 'The governor is aware that we remember Pat Brown with nostalgia," Quinn said. ' 'This will dominate what goes on at the Capitol for the next several months." Shortfall persists It is a challenging time for the state to make large-scale investments.Though the budget gap has narrowed significantly in recent years, a shortfall of several billion dollars persists. The state has the lowest credit rating in the country and is so indebted that the share of the budget devoted to repayment is uncomfortably high for some on Wall Street. http://www.mercurynews.com/mld/mercurynews/news/local/13170994.htm?template=co... 11/15/2005 25 Governor promotes huge bond Page 2 of 2 C Californians approved a $15 billion bond issue in March 2004 to help balance the budget.That measure, which the Legislature put on the ballot at Schwarzenegger's request, was the biggest single borrowing ever authorized in the state. California has room on its credit card for an infrastructure bond, said David Hitchcock, director of public ratings at Standard & Poors, but needs to weigh its priorities. 'There are also other pressing needs, like the need to pay for corrections and fund education," Hitchcock said. ' 'The concern would be whether the state should use its borrowing capacity for this, or on other things." Even some Democrats, who have been pushing for a large infrastructure bond issue, are blanching. Though Democrats have proposed $40 billion of borrowing in recent months for projects including court facilities,freeways and schools, they were never planning to do it all at once. ' 'We have to put this in the context of everything else we need," said Assembly Speaker Fabian Nunez, a Los Angeles Democrat who championed a $10 billion transportation bond issue this year that failed in the Legislature. t?2005 A9crcuryNews.cotn and wire service sources All Rights Reserved, http:t;ivu•w.ntcrcup•ncttis.anu http://www.mercurynews.com/mld/mercurynews/news/local/13170994.htm?template=co... 11/15/2005 26 a The Orange County Register Page 1 of 1 Wednesday,November 9,2005 Money down the sewer Based on an audit performed by a private consulting firm on behalf of the Orange County Sanitation District, it's clear that the sanitation district's board of directors was correct in accepting General Manager Blake Anderson's resignation in response to Mr.Anderson's expenditures on behalf of a New Age consulting guru. Mr.Anderson resigned last month, receiving a severance package of six months of salary. Mr.Anderson had argued that he was only trying to improve management techniques at the district when he hired Dharma Consulting,and he disputed claims that he was imposing a religious view on the district by dealing with a firm led by a self- described yoga priest. The potential religious angle raised concems of board members and local politicians,especially after the Register reported in July about the contract. But that, ultimately,is a management policy issue.The audit conducted by Newport Beach- based Moreland&Associates deals with finances. The auditors came to six conclusions,all critical of Mr.Anderson and the sanitation distric. Here are summaries of what the audit,obtained through a California Public Records Act request,showed: "The General Manager exceeded his delegated spending authority by spending a total of$192,175 on Dharma consulting between February of 2002 and May of 2004.The applicable purchasing resolutions limit the General Manager's spending authority to$100,000 in the aggregate on any single vendor contract. ... 'The General Manager exceeded his authority to enter into a sole source contract... . "The General Manager failed to file a sole source justification with the Purchasing Department as required ... .Thus, in violation of Finance Department Policy, the Dharma services were purchased without any explanation of the services being purchased ... . 'The General Manager improperly utilized the'Payment Request Voucher process... .As a consequence,the Purchasing Department was not notified of the payments,and no report of the pay-ments was filed with the Board ... ." The auditors also found that Mr.Anderson failed to follow procedures for issuing a purchase order, and that the district "exceeded the Board-approved amount of$135,000 by$17,581.41 ... ." The district conducted two audits,the Moreland audit referred to here and a separate personnel audit of Mr.Anderson's management abilities. At first the district would not release either one, despite a motion by board member Carolyn Cavecche(backed by members Mike Duvall and Harry Sidhu), but released the financial audit after our request. Most of the personnel audit has been withheld because it deals with personnel issues,which are protected under the records act. At least the public knows that the board was right to treat this matter seriously and to allow Mr.Anderson to resign, although it is unfortunate the board found it necessary to sebnd him off with six months'salary in severance pay. The board needs to pay more careful attention to spending,and other boards should follow suit. Copyright 2005 The Orange County Register I Privacy policy I User agreement http://www.ocregister.com/ocregister/opinion/homepage/print_757636.php 11/14/2005 27 Pagel of 3 MWEEKLY Oct. 28 - Nov. 3, 2005 Diary of a Mad County: Diary of a Mad County by STEVE LOWERY Wednesday, Oct. 19 A ragtag group of 400 federal agents, local and state officers, military personnel, and crack park rangers repel an assault by a misfit band of play-acting terrorists in a well-rehearsed mock attack on the San Onofrc Nuclear Generating Station in what officials dub Operation Power Play. While many in the audience are awed by the efficiency by which the good guys -- who've been preparing for this Terro- drama for three years -- turn back the evildoers ("Anyone who tries to get onboard San Onofre is not going to live to tell about it_--Jan Caldwell, FBI) others are less impressed with the production's staginess, weak back story, and what many see as a contrived and unconvincing conclusion("As if giving three years notice for a terrorist attack weren't ludicrous enough, the appearance of the Ewoks in the climactic scene -- dressed as crack park rangers -- diffused any real tension. The less said about the closing dance number the better. Terrorible" --Sith Master Randy,Phastmagoric Institute on Intergalactic Security). Either way, officials stressed they are now prepared to protect the generating plant's breast-like reactors as long as the terrorists have the common decency to give them a three-years heads up so everyone has time to adjust their calendars. A smashing name for the attack -- say, Operation Boob Job -- would also be appreciated. Thursday, Oct. 20 Reports come today that the Orange County Jail is the most crowded in the state and the third most crowded prison in the country, ranking just behind public schools and the dungeon TheNew York Times keeps for its reporters. Prison observers say that three and four inmates are being held in cells meant for two or three occupants. Sheriff Mike Carona acknowledges the overcrowding and blames it on a lack of funds to properly staff the jails with deputies able to perform the time-consuming task of processing - - i.e., indiscriminately beating-- inmates. Carona, whose office has contributed to the crowded situation -- a portion of the prison population is made up of present and former assistant sheriffs and relatives of present and former assistant sheriffs-- says one way he's dealt with overcrowding is to authorize early release of prisoners, or "family leave," as it's known around his office. 7, Friday, Oct. 21 Blake Anderson, head of the Orange County Sanitation District,resigned today after coming under scrutiny, for his hiring of a spiritual-based consulting firm. Anderson reportedly paid around $400,000 to Dharma Consulting of Leucadia; Dharma Consulting being one of those outfits that comes to your office and effectively forces you to stop doing your job so they can talk to you about what's stopping you from doing your job effectively, using a bunch of half-baked slogans and ridiculous "team- building" exercises that everyone ridicules at lunch while updating their resumes. Dharma's gimmick is that it claims it uses Eastern spiritual philosophy to show you how to crush the competition, and it's headed by a guy named Eric Klein who wrote a book called Awakening the Corporate Soul, which contains this piece of Native American wisdom (Native Americans having nothing actually to do with Eastern spiritualism, but okay): "As you go the way of life, you will see a great chasm. Jump! It is not as http://www.ocweekly.com/printme.php?&eid=69454 11/14/2005 28 a Page 2 of 3 wide as you think." Yes, when one is thinking about success in the vicious and amoral world of corporate America, who better to consult than Native Americans, whose success in dealing with American institutional power is well-chronicled and perhaps best expressed with this other inspirational gem: "As you continue on the way of life,you'll come upon a blanket. Hug it! It doesn't contain all that much smallpox." Saturday, Oct. 22 Citing her predilection toward finding Star Wars-obsessed,vintage-computer-collecting geek boys unfathomably attractive, Ellen Griley phones in a report from IGN Live, a Best Buy-sponsored "video game thing" at the Anaheim Convention Center: "So I force my buddy Tim H. --LA Weekly computer programmer/snarky sci-fi fan -- to take me with him to this video game thing, thinking I'll spend my day playing Altered Beast and winking at cute, desperate 28-year-old virgins. Turns out that's not so much the case: while IGN has loads of old school video games --Centipede! Asteroids! Galaga! -- it unfortunately passed on the Altered Beast, and those 28-year-old virgins? Oh, right. . . they don't even notice I'm alive. What with the three tricked-out Humvees, the climbing wall, the beefcake military men,the seemingly endless rows of shoot'em-up games and the close-to-scale effing tankAE"battle- ready dummy jarheads included! -- it appears the geek boys of today would rather be duped into being recruited by the Army than listen to some chick tell self-deprecating jokes in BASIC. 'This is disgusting,' I say, not really sure which offends me more: the full-scale warmongering going on at a video game thing, or the fact that the boys I'm attracted to are both Star Wars fans and skilled snipers. 'Yeah,but it's an inevitability that someone would guess guys who like to play FPS games would also like to shoot things for a living,' notes Tim H., which isn't very comforting. But at least I walked away from the day with one tiny morsel of geek-speak: FPS? Stands for First Person Shooter, as in 'Like, wow,you totally rule at FPS . . . no, really . . . I mean it . . . wanna go out sometime? Please don't shoot me.' I'll have to remember that for next year." Sunday, Oct. 23 There's only a week left to see Movieland Wax Museum,which recently announced it will be closing its doors and shipping its wax figures of show business's biggest stars north to San Francisco. Frankly, I'm shockeddC"SHOCKEDIa@"that Movieland has had such a hard time making a go of it. What is it with people today?Are they all of a sudden not interested in staring at stagnant mannequins that look something like the famous people they are supposed to represent-- if that famous person had dead eyes and had been subjected to continuous spraying of their entire body with Aqua Net hair spray?Oh, and what stars! Billy Ray Cyrus, Vidal Sassoon, Zasu Pitts,Norma Shearer. These people are big-- Gabby Hayes big! But I guess this simple pleasure has had a hard time keeping up with new entertainment technologies-- color television,books -- still, you'd expect there'd always be a need for people to see, in person, the wax visage of Miss Stella Stevens in a scene from Hollywood blockbuster The Poseidon Adventure. And what about the opportunity of seeing chart-topping recording artist Little Richard in what museum literature describes as a "typical setting." (The mind swims when trying to imagine what would qualify as "typical" for L. Richard -- one assumes it involves peacock feathers. Perhaps Aqua Net hair spray. Perhaps a whole lot of it.) Monday, Oct. 24 Heh heh heh. He said "merge." Tuesday, Oct. 25,br>Now, I'm no engineer and I've never built anything worth mentioning and, Mrs. Lowery, we've asked you to come down to school today because Steven keeps talking into his sleeve http://www.ocweekly.com/printme.php?&eid=69454 11/14/2005 29 SoCal soda bottler agrees to pay $1 million for pollution Page 1 of 1 Jilcrnla•com Posted on Thu, Nov. 10, 2005 SoCal soda bottler agrees to pay $1 million for pollution Associated Press LOS ANGELES-Seven-Up/RC Bottling Company of Southern California has agreed to pay more than $1 million in civil and criminal fines for releasing pollutants from its Vernon and Buena Park plants into rivers. The company pleaded guilty Thursday in federal court to 12 violations of the Clean Water Act. The settlement, which includes a $600,000 criminal penalty and a $428,250 civil penalty, still needs a judge's approval. An attorney for the company said it had not intentionally released the water and would spend an additional $2 million improving its facilities to prevent more releases. "It was a negligent thing," attorney Harland Braun said. "It wasn't deliberate, but it was a violation." The U.S. Attorney's office said the settlement was the largest stemming from a Clean Water Act enforcement against a soft drink bottler. An investigation by the Environmental Protection Agency in 2002 and 2003 found that the Vernon plant had discharged grease, petroleum byproducts and acidic drink "rejects," creating a stain on a bank of the Los Angeles River. --A-2003 EPA investigation found the Buena Park plant had discharged acidic industrial wastewater into the Orange County —Saaitatiaj3-QistnCt_SP2LPr qyrtpm, which ran corrorlp sewer pap es and weaken wastewater treatment V 2005 Al'wire and wire service sources.All Rights Rmerved. http:!%%wvw•.m ontercyhcrald.com http://www.montereyherald.com/mld/montereyherald/news/i3136895.htm?template=cont... 11/14/2005 30 sevenup 111005 Pagel of 1 v CORPORTE CRIME REPORTER Seven-Up Taken Down: Bottler Pleads Guilty to 12 Counts of Water Pollution 19 Corporate Crime Reporter 44(4), November 10, 2005 Seven-Up/RC Bottling Company of Southern California will plead guilty today to 12 counts of violating the Clean Water Act and pay more than $1 million in criminal and civil fines for industrial stormwater and wastewater violations at its soft drink bottling plants in Vernon and Buena Park, California. Under terms of an agreement with the U.S. Attorney in Los Angeles and the Environmental Protection Agency (EPA), the company will pay a $600,000 criminal penalty and a $428,250 civil penalty. Federal officials alleged that the company's facility in Vernon dumped grease, petroleum by-products and acid drink product directly into the Los Angeles River, creating a stain on the bank of the river. They also alleged that another facility in Buena Park dumped acidic industrial wastewater into the Orange County Sanitation District sewer system. Acidic wastewater can corrode sewer pipes and damage the integrity of wastewater treatment plants. Both waterways are already contaminated with oil, nutrients, metals, and other pollutants commonly used by industrial facilities. The Clean Water Act precludes any company that commits criminal violations from obtaining federal contracts. To avoid being precluded from obtaining federal contracts, the Seven-Up/RC Bottling Company of Southern California and its parent company, Dr Pepper/Seven-Up Bottling Group, also entered into a suspension and debarment agreement with EPA to develop a corporate-wide environmental program, which will include an environmental inspection program and a "hotline" so employees can anonymously report environmental or safety violations. Home Corporate Crime Reporter 1209 National Press Bldg. Washington, D.C. 20045 202.737.1680 http://www.corporatecrimereporter.com/sevenup111005.htm 11/14/2005 31 h I iW`oJP�SA",,,,o °= ORANGE COUNTY SANITATION DISTRICT r� 9 CINQ P f November 9, 2005 phone: (7141 962-2411 To the Chair and Members fax: of the Board of Directors (7141 962-0356 www.ocsd.eom Subject: Board Letter mailing address: P.O. Box 8127 Fountain Valley,CA 92728-8127 The following are items that you may find interesting. If you need additional street address: information on any of the items, please call me. 10844 Ellis Avenue Fountain Valley,CA FEMA Funding for SARI Emergency Repair Work 92708-7018 The Sanitation District recently received final approval from the Federal Emergency Management Agency (FEMA) for funding assistance with the SARI Emergency Member Agencies Repair Project— Phase I in the amount of$915,364. This funding covers approximately 100% of the Phase I costs. The Sanitation District has already Cities obtained approval to receive up to $1,612,000 in funding for the upcoming SARI Emergency Repair Project— Phase II work. These two monetary awards total slightly Anaheim more than $2.5 million in federal funding that the Sanitation District staff have been Brea successful in securing for the SARI Emergency Repair projects. Total Phase I and II Buena Park 9 9 Y P P J Cypress project costs are estimated at over$3 million. Fountain Valley Fullerton Garden Grove The Repair Project— Phase I was conducted in February through April 2005, Huntington Beach immediately following the heavy storms and high releases from Prado Dam in Irvine La Habra January 2005. The storm damage necessitated emergency repair work along La Palma segments of the SARI pipeline located within the riverbed where the soil cover over Los Alamitos the SARI line was eroded or the pipeline was exposed. Due to the severity of these Newport Beach p p p tY Orange storms, the President declared the area a federal disaster region which made the Placentia Sanitation District eligible to apply for FEMA funds. Santa Ana Seal Beach Stanton The Sanitation District has been quite fortunate in receiving monetary assistance Tustin Villa Park from FEMA, since federal funds are currently being diverted to pay for other natural Yorba Linda disasters that have occurred in recent months. County of Orange Manager of the Year Water Award Nick Arhontes, Director of Regional Assets and Services, received the WEFTEC Sanitary Districts Collection Systems "Manager Of The Year Water Award" which was presented at the Costa Mesa annual conference in Washington, D.C. Midway City Water Districts Board of Directors' Tour on the Nerissa Our ocean monitoring vessel Nerissa has been in service for almost a year now. Our Irvine Ranch ocean monitoring crew is fully trained, safety procedures are in place, and we've got a lot of monitoring runs under our belts. It's time to show off what our staff and Nerissa can do. I am pleased to announce the first Board of Directors ocean monitoring trip on Dec 10, 2005. We can accommodate up to 8 directors on board for this trip. Once aboard, staff will show you the various pieces of ocean monitoring equipment as we motor out 4.5 miles to the terminus of our ocean outfall. We will trawl for fish To maintain world-class leadership in wastewater and water resource management. SAN,,,JpH p ti N � 9 Board of Directors Page 2 November 9, 2005 near the outfall so you can see the variety of fish living in the area. And we'll pull up a sample of the ocean bottom 200 feet below to show you the variety of marine life living in the sediments. There will be a number of displays on board explaining how this information is used to assess the health of the ocean near our outfall. Please send a reply to Penny Kyle (pkyle(o-)ocsd.com) to reserve a spot. First come, first served. Meet at 8:00 a.m. at the Administration building where we will take the District's bus down to the dock. We will return to the Administration building by 1:30 p.m. Dress for the weather (layering usually works best). Articles of Interest I have also included several additional published articles that you might find interesting. If you would like additional information on any of the above items, please call me. C f obert . Ghirelli, D.Env. Acting General Manager RPG:gg HMEPPADMN1GMtBOARD LETTERQ0051110905 BOARD LTR.FORM.DOC Attachments i Qo�ta 4r The Metropolitan Water District of Southern California 1r � NEWS ryFQ C P.0.Box 54153,Los Angeles,California 90054-0153 • (213) 217-6485 • www.mwdh2o.com NOTE: A digital photograph of Dennis B. Underwood is available upon request. Contacts: Bobbi Becker, (213)217-7603; (213) 479-4988, mobile Bob Muir, (213)217-6930; (213) 324-5213, mobile Nov. 3, 2005 DENNIS UNDERWOOD, METROPOLITAN CEO/GENERAL MANAGER, RESPECTED WATER INDUSTRY LEADER, PASSES AWAY He was a former commissioner of U.S.Bureau of Reclamation Dennis B. Underwood, an esteemed Western water expert and former commissioner of the U.S. Bureau of Reclamation who recently became the chief executive officer and general manager of the Metropolitan Water District of Southern California, has died. He was 60. Underwood was selected last April to the top post at Metropolitan after playing a leading role in a crucial and complex effort regarding California's share of Colorado River supplies as well as negotiating one of the nation's largest habitat conservation programs. He was surrounded by family and friends when he passed away Wednesday at his Alta Loma home after a battle with cancer. "The water world has lost one of its most accomplished and humble leaders,"said Metropolitan's board Chairman Wes Bannister of Underwood's passing. "The underlying theme of Dennis' entire career was to balance needs with grace. That meant that every cause and every project he was involved in was tempered by clear, well-negotiated and respectful interaction with everyone on both sides of the table." Bannister said Metropolitan will have to "work hard to maintain the spirit of his career and to honor him by moving forward thoughtfully and with purpose, being mindful of our role as a steward for the public and the environment." In Underwood's honor, Bannister directed the American, state and Metropolitan flags to be flown at half-staff at all MWD facilities. "Dennis' unique finesse and steadfast commitment to securing a balanced approach to resolving complex and highly sensitive water issues were an inspiration," Bannister added. more . . . . . -2- "I am deeply saddened by the news of Dennis' death," said Interior Secretary Gale Norton. "As a former commissioner of Interior's Bureau of Reclamation and a major architect of the Lower Colorado River Multi-species Conservation Plan, Dennis was a creative and dynamic force in improving the management of Western water and promoting environmental protection and enhancement." Calling Underwood "a great friend and colleague," Reclamation Commissioner John Keys said today that the water world has suffered a great loss. "I credit Dennis with creating an atmosphere where people can find creative solutions rather than seeking out new ways to do battle. While there are lots of issues and disputes and concerns on the Colorado River today, one thing that I'm sure everyone can agree on is that Dennis Underwood was one of the great leaders in the modern history of the Colorado River," Keys said. Underwood took a medical leave of absence in late October and designated Debra C. Man as acting CEO and general manager. Man, who was Metropolitan's chief operating officer, will continue in this role while MWD's Board of Directors considers steps to name Underwood's successor. "The water community has suffered a tremendous loss," said Lester Snow, director of the state Department of Water Resources. "Dennis was one of the most dedicated, compassionate, and knowledgeable public servants I have ever had the pleasure to know and work with. His work ethic and commitment to balanced resource management made him a leader. His vision will be missed." When Underwood was selected as the district's 121h general manger, he said serving as CEO of Metropolitan would be the crowning jewel in his long, varied life in the world of water. Soon after assuming his new Metropolitan role, Underwood reflected on his own personal philosophy and thoughts regarding public service in an article he penned for a district employee publication. "I think I am a reflection of the heartland of the country," he wrote in Metropolitan's People.interactive publication. "I am not the kind of person who will walk across your lawn to get where I am going. Instead, I will walk around. I have respect for other people and a good more . . . . . Da 1Y`..,._ V Pilot Newport Beach and Costa Mesa, Califomra Supervisor: Discuss environment openly Ocean conference speech stresses that outdoor resources stakeholders must debate in accord. By Dave Brooks (Published: October 28, 2005) Environmentalists need to move away from traditional activist functions and more openly engage traditional adversaries like big business and private industry, Orange County Supervisor Tom Wilson said this week in an address at the Headwaters to Ocean Conference in Huntington Beach. Community leaders should facilitate the process, he said, encouraging all stakeholders to sit at the table and reach a compromise before environmental debates degrade into mudslinging battles. "There must be a fundamental change in perspective for all stakeholders," he said Thursday. "Representatives from all groups should realize that they share the same goals. We can no longer advocate blindly -- that just hurts the process." Recent efforts to restore a major portion of the Bolsa Chica wetlands, along with attempts to improve water quality in coastal Newport Beach and Huntington Beach, were the results of environmental collaboration between multiple government agencies, environmental nonprofits and private industry, he said. This change in paradigms means a shift in organizational methods and ultimately a shift in how leadership is defined; success should be a product of effective collaboration, he said, not just an end in itself. Wilson pointed to a recent decision by the Orange County Sanitation District to begin secondary treatment of sewage released from its ocean outfall line. "It took them stepping up to the plate at a great cost to themselves to do something about the beach closures we were experiencing in 1999," he said. It also took a lot of lawyers threatening to sue the sanitation district to bring in change, environmental activist Bob Costin said. "There's nothing that comes out of sitting at the table," he said. "Unless you have a number of big attorneys behind you and the funds to force them to do it, you're not going to get any results." Wilson said litigation threats often bring unnecessary costs to government projects. Instead, he called for better interregional planning to set long-term goals for environmental a management. Dozens of agencies have jurisdictions reaching the Newport Bay -- an opportunity, Wilson said, for all agencies to bring their needs to the table for collaboration. "And this can all be done without creating new levels of government," he said. The idea sounds good, several environmentalists said, but a change would require a shift in some basic assumptions by private industry. Stephanie Barger of the Costa Mesa-based Earth Resource Foundation, said many businesses need to change the way they think about profits. "When you talk about community goals, businesses and government agencies need to understand what true sustainability is," Barger said, outlining what she describes as the triple bottom-line model -- a focus on people, the planet and profit. Barger said that sustainable environmental practices often net a more sustainable profit margin. Environmentalists are getting better at arguments to advocate for more effective change in private industry, she said. "We don't need to chain ourselves to bulldozers anymore, because we can talk the economic talk," she said. Op,inion The Orange County Register • Wednesday,Nov 9,2005 Money down the sewer Audit reveals misspending by former sanitation district general manager Based on an audit perrormed by a his authority to enter into a sole private consulting firm on behalf of source contract... . the Orange County Sanitation Dis- • "The General Manager failed to trict,it's clear that the sanitation file a sole source justification with district's board of directors was the Purchasing Department as re- correct in accepting General Man- quired....Thus, in violation of Fi- ager Blake Anderson's resignation nance Department Policy,the in response to Mr.Anderson's ex- Dharma services were purchased penditures on behalf of a New Age without any explanation of the ser- consulting guru. vices being purchased.... Mr.Anderson resigned last "The General Manager impro- month,receiving a sever- perly utilized the Tay- ance package of six went Request Voucher' months of salary. The sanitation process... .As a conse- Mr.Anderson had ar- quence,the Purchasing geed that he was only district board Department was not no- trying to improve man- was right to tified of the payments, agement techniques at treat this matter and no report of the pay- the district when he seriously and to me"was filed with the hired Dharma Consulting, Board... . and he disputed claims allow General • The auditors also that he was imposing a Manager Blake found that Mr.Anderson religious view on the di,,- Anderson to failed to follow proce- trict by dealing with a resign. dures for issuing a pur- firm led by a self-de- chase order,and that the scribed yoga priest. district"exceeded the The potential religious angle Board-approved amount of$135,000 raised concerns of board members by$17,581.41...." and local politicians,especially after The district conducted two au- the Register reported in July about dits,the Moreland audit referred to the contract.But that,ultimately,is here and a separate personnel audit a management policy issue.The au- or Mr. Anderson's management abil- dit conducted by Newport ities.At first the district would not Beach-based Moreland& Associates release either one,despite a motion deals with finance& by board member Carolyn Cavecche The auditors came to six conclu- (backed by members Mike Duvall sions,all critical of Mr.Anderson and Harry Sidhu),but released the and the sanitation distric. Here are financial audit after our,re.quest. summaries of what the audit,ob- Most of the personnel audit has tained through a California Public been withheld because it deals with Records Act request, showed: personnel issues,which are pro- - "The General Manager exceeded tected under the records act. his delegated spending authority by At least the public knows that the spending a total of$192,175 on board was right to treat this matter Dharma consulting between Febru- seriously and to allow Mr.Anderson ary of 2002 and May or 2004.The to resign,although it is unfortunate applicable purchasing resolutions the board found it necessary to limit the General Manager's spend- sebnd him off with six months'sala- ing authority to$100,000 in the ag- ry in severance pay. gregate on any single vendor con- The board needs to pay more tract_... careful attention to spending,and • "The General Manager exceeded other boards should follow suit. ram: -�-�:.n.r��•�*; � s�r•: ,bR*_�r.�fi3a�;3�.av Feu:zr-,a+�,-.:�arr�r+nsrres� Board Member Request Summary As of November 9, 2005 Board Request' Date of Assigned- Status Date of Response Member Request Dept. Response 1. Silva Add notes to Treasurer's Report 10/12/05 Finance Finance Dept. will add notes to Treasurer's Report 2. Silva Pursue endorsement from Senator Feinstein 10/12/05 General to sign a letter or a grant for SARI relocation. Manager 3. Duvall Negotiated amount of fees paid to TPA for 10/12/05 Human Report to processing workers' compensation claims Resources FAHR must be lowered Committee 11/09/05 4. Duvall All contracts should maximize insurance 10/12/05 Finance indemnification for OCSD. 5. Duvall Provide a list of all travel for Executive 10/12/05 General Mana ement Team and Board of Directors Manager 6. Duvall Provide a report of top 10-15%of commercial 10/12/05 Finance industrial users affected by the rate increase 7. Silva Provide bond rating agency comparisons 10/12/05 Finance Completed 10/14/05 Finance e-mailed comparison sheet to FAHR Committee 8. Duvall Notification of fee increase for non-residential 10/12/05 Finance Completed 10/14/05 Finance e-mailed parcels notification to FAHR Committee 9. Ridgeway Schedule Sen. Feinstein to visit GWRS re 10/13/05 General project funding. Manager 10. Luebben Provide written report updating the status of 10/26/05 Finance correct billing for septic tank users 11. Marshall Written report on lobbyists' activities 10/26/05 Public Affairs 12. Ridgeway Provide a rate model over period of time 11/01/05 Finance 13. Duvall Color code CIP projects to coordinate with the 11/01/05 All type of project(collection system;treatment plant; new capacity; regulatory;etc. 14. Luebben Review contingency policies and consider 11/01/05 Engineering escalating down 15. Duvall Provide correlation how asset management is 11/01/05 Engineering/ assisting projects on a project-by-project basis I I O erations & Board Request Date of Assigned Status Date of Response Member Request Dept. Response Maintenance 16. Luebben Provide earlier e-mail sent by Ludwin in 11/01/05 Engineering Completed 11/03/05 E-mailed bulleted August in a bulleted format explaining how outline of CIP CIP would work Oversight summary proposal 17. Anderson Include design buckets and/or icons in 11/01/05 Engineering agenda reports 18. Parker Requested a biosolids video for local cable 11/02/05 TS education 19. Davert Provide Biosolids informational presentation 11/02/05 TS to Board of Directors 20. Parker Provide update on costs for bleach at 11/02/05 O&M December OMTS Meeting 21. Ridgeway Requested other Directors be given tour of 11/03/05 Engineering SARI Line 22. Ridgeway Contact General Counsel and Scott Baugh to 11/03/05 Engineering/ submit legislative request for design/build General concept_for OCSD for 2006 consideration Manager 23 PDC Provide analysis of construction management 11/03/05 Engineering services for$2 million vs. reduced services for $1 million to be submitted to 11/16/05 Board meeting H:ldeptlpa13201BSIDIRECTORQrector Requests\D i rector Requests Summary.110105.doc I. AGENDA ' BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING November 16, 2005 — 7:00 P.M. 1. Invocation and Pledge of Allegiance 2. Roll Call 3. Consideration of motion to receive and file minute excerpts of member agencies relating to appointment of Directors, if any. 4. Appointment of Chair pro tem, if necessary 5. Public Comments 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 recommendations, 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 26, 2005, 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 10/15/05 10/31/05 Totals $8,697,621.80 $15,163,543.53 CONSENT CALENDAR 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Approve revised language due to late Contractor request for Change Order No. 17 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of $23,707, increasing the total contract amount to $35,710,113, that was approved at the October 26, 2005 Board Meeting. 11/16/05 Page 2 b. (1) Receive and file petition from the Irvine Company requesting annexation of 409 acres to the Orange County Sanitation District in the vicinity of Santiago Canyon Road and Foothill Eastern Transportation Corridor, an unincorporated area in Orange County; and, (2) Adopt Resolution No. OCSD 05-26, authorizing initiation of proceedings to annex said territory to the Orange County Sanitation District (Proposed Annexation No. OCSD-54 — East Orange Area 1 Reorganization to the City of Orange Annexation). C. Approve an encroachment permit, in a form approved by General Counsel, with Warland Investments Company over an existing Orange County Sanitation District sewer and easement built in connection with Miller-Holder Trunk Sewer, Contract No. 3-3. 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 26, 2005. and the Special Meeting held on October 28, 2005, to be filed. b. Authorize renewal of contracts with ENS Resources (Eric Sapirstein) and Freshman and Kast (John Freshman and Larry Kast) at S10,000/month: Mayer, Brown, Rowe & Maw (Scott Baugh) at $5,000/month; and Townsend Public Affairs (Chris Townsend) at $5,000/month for a one year period effective January 1, 2006 through December 31, 2006, and the option to renew for one additional one-year period at the discretion of the Steering Committee. Non-Consent Calendar C. Review and consideration of agenda items considered by the Steering Committee re the November 16, 2005 meeting. d. Consideration of items deleted from Steering Committee Consent Calendar, if any. 11/16/05 Page 3 12. CIP OVERSIGHT AD HOC COMMITTEE Consent Calendar a. Order draft CIP Oversight Ad Hoc Committee Minutes for the meeting held on November 1, 2005, to be filed. Non-Consent Calendar b. Consideration of items deleted from CIP Oversight ad Hoc Committee Consent Calendar, if any. 13. 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 2, 2005 to be filed. b. Receive and file the Waste Discharge Requirements Sewer System Management Plan; Status Report on the Development of a Reporting Methodology for Subsurface Discharges of Sewage; and Portable Aeration Report prepared by Brown and Caldwell. C. Authorize the General Manager to finalize negotiations and subsequently award a contract to Workforce Software for Time Entry, Specification No. CS-2005-216BD, for technical consulting, implementation support and software purchase in the amount of S146,625, and a contingency of S28,375, for a total amount not to exceed S175,000. d. Receive and file Bid Tabulation and award a contract for the purchase of Magnesium Hydroxide, Specification No. C- 2005-244 to Hill Brothers Chemical Company at an initial delivered unit price of $1.64 per gallon excluding sales tax; indexed to natural gas previous month's daily average NYMEX Henry-Hub gas base price of S13.25 per MMBtu and an escalation index factor of an additional S0.06 per gallon magnesium hydroxide for every increase of S1.00 above the indexed cost, for a total amount not to exceed 5415,000. Non-Consent Calendar e. Consideration of items deleted from OMTS Consent Calendar, if any. 14. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. Order draft Planning, Design and Construction Committee Minutes for the meeting held on November 3, 2005 to be filed. b. Cancel the current Professional Services Agreement contract with ADS Environmental for the Long Term Flow Monitoring Program, Job No. J-73-2. 11/16/05 Page 4 C. (1) Approve Plans and Specifications for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, on file at the office of the Board Secretary; (2) Approve Addenda Nos. 1, 2, 3, and 4 to the plans and specifications: (3) Receive and file bid tabulation and recommendation; and, (4) Award a construction contract to J.F. Shea, Inc. for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, for an amount not to exceed $9,887,981. d. Approve a budget increase of S2.000,000 for the construction of the Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for a total budget amount of S21,652,000. e. Approve Amendment No. 8 to the Professional Services Agreement with SPEC Services, Inc. for Standby Power and Reliability Improvements to Treatment Plant Nos. 1 and 2, Job No. J-33-1, providing for additional engineering services for an additional amount of 5134,500, increasing the total amount not to exceed S3.359.932. f. Approve Amendment No. 2 to the Professional Services Agreement with Tetra Tech, Inc. providing for additional engineering services for Gisler-Redhill Trunk Improvements, Reach "B", Contract No. 7-37, for an additional amount of $194,400, increasing the total amount not to exceed S555,780. g. (1) Approve time extensions to Cooperative Project Contract Agreements: Contract No. 0401 with the City of Anaheim: Contract No. 0408 with the City of Fullerton: Contract No. 0208 with the City of Huntington Beach; Contract No. 0127 with the City of La Habra; Contract No. 0412 with the City of La Palma; Contract No. 0130 with the City of Orange; and Contract No. 0416 with the City of Villa Park; and, (2) Approve additional funding in the amount of S107.201 for Contract No. 0415 with Sunset Beach Sanitary District, increasing the total amount not to exceed S352,201. Non-Consent Calendar h. Approve Professional Services Agreement with EarthTech providing for Construction Management services for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, for an amount not to exceed $2,052,593. i. Consideration of items deleted from PDC Consent Calendar, if any. 11/16/05 Page 5 15. 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 9, 2005 to be filed. (Minutes to be distributed at 11116105 Board Meeting.) b. Recommend to the Board of Directors to receive and file the 2005-06 First Quarter Financial Report for the period ending September 30, 2005. C. Receive and file the Swap Report for the quarter ended September 30, 2005. d. Adopt Resolution No. OCSD05-27, Approving Amended Deferred Compensation Plan (2005) for Officers and Employees of the Orange County Sanitation District. e. Receive and file Treasurer's Report for the month of September 2005. f. Receive and file the Quarterly Investment Management Program Report for the period July 1, 2005 through September 30, 2005. g. Appoint Bear, Stearns & Co., Inc. as the District's Underwriter/Remarketing Agent for the COP Series 2005 variable rate debt issuance at the lowest annual cost to the District; and a cost of issuance amount not to exceed $140,530, in a form approved by General Counsel. h. Receive and file the Comprehensive Annual Financial Report for the year ending June 30, 2005, prepared by staff and audited by Conrad and Associates, Certified Public Accountants. i. (1) Approve the reclassification of seven employees; (2) Approve position upgrades of four positions: and, (3) Approve equity adjustment for one employee. j. (1) Direct staff to seek proposals from firms that provide Workers' Compensation Third Party Administrator (TPA) services; (2) Authorize staff to terminate the existing Workers' Compensation TPA services agreement with Cambridge Integrated Services Group, Inc. effective June 30, 2006, based on conducive market conditions; and, (3) Authorize staff to negotiate a new contract for Workers' Compensation TPA services based on competitive bidding, if advantageous, which is to include a favorable cost structure. FAHR Non-Consent Calendar k. Consideration of items deleted from FAHR Consent Calendar, if any. 11/16/05 Page 6 16. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on October 10, 2005 to be filed. GWRSSC Non-Consent Calendar b. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 17. 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 1. Consider appointment of interim General Manager position. Government Code 54957(B)(1). b. Reconvene in regular session 1. Consider compensation for interim General Manager position. C. Consideration of action, if any, on matters considered in closed session 18. Matters which a Director may wish to place on a future agenda for action and staff report. 19. Other business and communications or supplemental agenda items, if any 20. Future Meeting Date: The next Board of Directors regular meeting is scheduled for December 21, 2005, at 7:00 p.m. 21. Adjournment 11/16/05 Page 7 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. Public Comments: Any member of the public may address the Board of Directors on specific agenda items or matters of general interest. 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). If you wish to speak, please complete a Speaker's Form(located at the table outside of the Board Room)and give it to the Board Secretary. 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. 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). 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. 11/16/05 Page 8 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. 'Acting General Manager Bob Ghirelli (714) 593-7110 rghirelli@ocsd.com :Board Secretary Penny Kyle (714) 593-7130 pkyle@ocsd.com :Director/Engineering David Ludwin (714) 593-7300 dludwin@ocsd.com :Director/Finance/Treasurer Lorenzo Tyner (714) 593-7550 Ityner@ocsd.com :Director/Human Resources Lisa Tomko (714) 593-7145 Itomko@ocsd.com :Director/Information Technology Patrick Miles (714)593-7280 pmiles@ocsd.com ::Director/Operations & Maintenance Jim Herberg (714) 593-7020 jherberg@ocsd.com :Director/Technical Services Bob Ghirelli (714)593-7400 rghirelli@ocsd.com :Director/Public Affairs Bob Ghirelli (714)593-7400 rghirelli@ocsd.com Director/Regional Assets& :Services Nick Arhontes (714)593-7210 narhontes@ocsd.com :General Counsel Brad Hokin (714�564 2606 brh<a�wss law.com H:\dept\pa\320\BS\Ngenda\111605 draft agenda.doc f I v a w Orange County Sanitation District MINUTES BOARD MEETING October 26, 2005 vN.�ll y a�tir,�r�o ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 i Minutes for Board Meeting 4 Page 2 10/26/05 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on October 26, 2005 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 Steve Anderson, Chair Steve Simonian X James M. Ferryman, Vice Chair Arlene Schafer X Charles Antos Paul Yost X Don Bankhead Leland Wilson X Carolyn Cavecche Steve Ambriz X Alberta Christy Mike Garcia X Larry Crandall John Collins X Bill Dalton Mark Rosen X Doug Davert Tony Kawashima X David Shawver Brian Donahue X Michael Duvall Keri Lynn Wilson X Norman Eckenrode Constance Underhill X Richard Freschi Patricia Bortle X Jill Hardy Debbie Cook X Sukhee Kang Steven Choi X Phil Luebben Lydia Sondhi X Patsy Marshall Jim Dow X Darryl Miller Douglas Reinhart X Roy Moore John Beauman X Joy Neugebauer Vivian Kirkpatrick-Pilger X Ken Parker Catherine Driscoll X Tod Ridgeway Don Webb X Harry Sidhu Bob Hernandez Jim Silva X Lou Correa X Mark Waldman Ralph Rodriguez STAFF MEMBERS PRESENT: Bob Ghirelli, Acting General Manager; Penny Kyle, Board Secretary; Nick Arhontes; Jim Herberg; Dave Ludwin; Patrick Miles; Lisa Tomko; Lorenzo Tyner; Lilia Kovac; Jeff Reed; Simon Watson; Rich Castillon; Rob Thompson; Chuck Winsor; Ryal Wheeler; Sonja Morgan; Paula Zeller; Norbert Gaia; Jennifer Cabral; Jim Burror; Sejal Patel OTHERS PRESENT: Brad Hogin, General Counsel; Don Hughes; Jan Vandersloot; Robin Rustan; Irwin Haydock Minutes for Board Meeting Page 3 p 10/26/05 3. MOVED, SECONDED AND DULY CARRIED: Receive and file minute excerpts from the following re appointment of active and alternate Directors, as follows: City/Agency Active Director Alternate Director Stanton David Shawver Brian Donahue PUBLIC COMMENTS The following spoke in support of General Manager Blake Anderson's leadership of the Sanitation District: Jan Vandersloot; Irwin Haydock; and Robin Rustan. REPORT OF THE CHAIR Chair Anderson announced that Director Jill Hardy has been appointed to the OMTS Committee, and Don Bankhead as the Vice Chair of the OMTS Committee. The meeting schedule for the working committees was then reviewed for the month of November, and the CIP Oversight Ad Hoc Committee would be meeting on November 1. It was also noted that due to the holidays, the Steering Committee and the Board will meet one week earlier in November and December. Chair Anderson then recognized the District's lobbying team who represent the District in Sacramento and Washington, DC: Christopher Townsend, Townsend Public Affairs, Inc.; Eric Saperstein, ENS Resources; and John Freshman, Freshman & Kast. Both teams provided updates on their legislative activities and strategies. REPORT OF THE GENERAL MANAGER Bob Ghirelli, Acting General Manager, had no report. REPORT OF THE GENERAL COUNSEL Brad Hogin, General Counsel, reported that AB1234, which governs Directors compensation and reimbursement, has been passed. The Sanitation District has written policies in place and General Counsel will verify that our policies are in compliance. APPROVAL OF MINUTES The Chair ordered that the minutes of the regular meeting held September 28, 2005, be deemed approved. Director Correa abstained. Minutes for Board Meeting Page 4 ' 10/26/05 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 09/15/05 09/30/05 Totals $6,069,614.86 $18,119,111.66 Director Cavecche abstained from discussion and voting on Warrant Nos. 74939, 75107, 75108 and 75263. Director Crandall abstained from discussion and voting on Warrant No. 75086. Director Davert abstained from discussion and voting on Warrant Nos. 74608, 74800, 74936 and 75089. Director Correa abstained. Abstentions were pursuant to California Government Code Section 84308 CONSENT CALENDAR 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. No items considered COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. STEERING COMMITTEE: A verbal report was presented by Director Anderson, Chair of the Steering Committee, re the October 26, 2005 meeting. Chair Anderson noted that Bob Ghirelli provided an update on the funding issues related to the relocation of the SARI line. Steering Committee Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Steering Committee Minutes for the meeting held on September 28, 2005, to be filed. Steering Committee Non-Consent Calendar No items considered. 12. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Planning, Design and Construction Committee Minutes for the meeting held on October 13, 2005 to be filed. Director Correa abstained. Minutes for Board Meeting Page 5 10/26/05 b. MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No. 2 to Sump Pump Addition to Air Jumper Lines, Job No. SP2000-26, with Margate Construction, Inc., authorizing an addition of$8,201, increasing the total contract amount to $247,645; and, (2) Accept Sump Pump Addition to Air Jumper Lines, Job No. SP2000-26, as complete, authorizing the Final Closeout Agreement. Director Correa abstained. C. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 23 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of$117,648, increasing the total contract amount to $71,874,466. Director Correa abstained. d. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 9 to Effluent Pump Station Annex, Job No. J-77, with J.F. Shea Construction, Inc., authorizing an addition of $32,514, increasing the total contract amount to $44,260,201. Directors Correa and Davert abstained. e. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 17 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of$23,707, increasing the total contract amount to $35,710,113. Director Correa abstained. f. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 4 to the Professional Services Agreement with RBF Consulting, Inc. providing for additional design engineering and environmental compliance services for Carbon Canyon Sewer and Pump Station Abandonment, Contract No. 2-24-1, for an additional amount of$20,000, increasing the total amount not to exceed $561,786. Directors Correa and Davert abstained. g. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 5 to the Professional Services Agreement with Malcolm Pirnie, Inc. for Rehabilitation of Ellis Avenue Pump Station, Job No. 1-10, providing for additional design engineering services for an additional amount of$198,479, increasing the total amount not to exceed $4,997,734. Director Correa abstained. Minutes for Board Meeting Page 6 10/26/05 PDC Non-Consent Calendar No items considered 13. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (FAHR) FAHR Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Finance, Administration and Human Resources Committee Minutes for the meeting held on October 12, 2005 to be filed. b. MOVED, SECONDED AND DULY CARRIED: Receive and file Treasurer's Report for the month of September 2005. C. MOVED, SECONDED AND DULY CARRIED: Approve Revisions to SAFETY-POL-115, Backflow Prevention Program Policy and SAFETY-POL-202, Accident Investigation Program as provided for in Resolution No. OCSD 02-5 regarding the Sanitation District's Injury and Illness Prevention Program. d. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 05-25 approving the National Incident Management System for use at the Orange County Sanitation District during emergencies. e. MOVED, SECONDED AND DULY CARRIED: (1) Approve the results of the non- residential parcel review project; (2) Direct staff to use the corrected database on a"going-forward" basis; and, (3) Direct staff to refrain from pursuing collection of past underpayments due to the expense and effort that would be involved in the collection effort. FAHR Non-Consent Calendar No items considered. 14. GWR SYSTEM STEERING COMMITTEE (GWRSSC): GWRSSC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on September 12, 2005 to be filed. GWRSSC Non-Consent Calendar b. MOVED, SECONDED AND DULY CARRIED: (1) Approve a Professional Services Agreement with Faubel Public Affairs for$292,560 for outreach support services for the Groundwater Replenishment System; Minutes for Board Meeting Page 7 10/26/05 (2) Approve a Professional Services Agreement with KW Communications for $86,640 for construction outreach services for the Groundwater Replenishment System; (3) Approve a Professional Services Agreement with JD Communications for $74,385 for construction outreach services for the Groundwater Replenishment System; (4) Approve a Professional Services Agreement with Tashiro Choi and Associates for$42,480 for multicultural outreach services for the Groundwater Replenishment System; and, (5) Establish a budget of$20,000 for miscellaneous construction outreach expenses; all sum to a total amount of$516,065 to be equally cost-shared with the Orange County Water District. Directors Christy, Correa, Davert, Luebben,Marshall and Neugebauer abstained on Item 14(b)(1). NON-CONSENT CALENDAR 15 CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9: The Board convened in closed session at 8:05 p.m. pursuant to Government Code Section 54956.9. Confidential minutes of the Closed Session held by the Board of Directors 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. RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at 8:57 p.m. Brad Hogin, General Counsel, reported that the Board of Directors accepted the resignation of Blake P. Anderson as General Manager effective November 1, 2005. The Board of Directors also authorized payment to Mr. Anderson in an amount equal to six months' salary. ADJOURNMENT: The Chair declared the meeting adjourned at 8:57 p.m. Penny M. Ky Secretary to t Boar of Directors of Orange County Sanitation District H:\dept\pa\320\BS\Minutes\102605 draft minutes.doc A � Claims Paid From 09101105 to 09/15105 Warrant No. Vendor Amount Description Accounts Payable-Warrants 74594 Black&Veatch Corporation $ 371,209.53 Engineering Services P1-76&P1-102 74595 Brown&Caldwell 305,688.15 Professional Services P2-90&CMOM/WDR 74596 California Soil Products 33,072.40 Residuals Removal MO 3-29-95 74597 Ceilcote Air Pollution Control 40,845.60 Impeller Replacement Fan,Necessary Support&Accessories at"T Scrubber 74598 Dudek&Associates,Inc. 87,536.84 Professional Services P2-68 74599 Hill Brothers 42,493.86 Chemicals-Odor&Corrosion Control-Newport Trunkline 74600 HDR Engineering,Inc. 110,670.09 Professional Services P1-101 74601 Kemiron Companies,Inc. 186,570.51 Ferric Chloride MO 9-27-95 74602 Malcolm Pirnie,Inc. 316,178.57 Professional Services P2-80,J-79&11-26 74603 MWH Americas,Inc. 44,151.46 Professional Services J-101 74604 Occidental Energy Marketing,Inc. 170,652.60 Natural Gas for CenGen/CoGen 74605 Parsons Water&Infrastructure,Inc. 27,200.40 Professional Services J-35-1 74606 Pioneer Americas,Inc. 361,827.81 Sodium Hypochlorite 74607 Polydyne,Inc. 49.859.68 Cationic Polymer MO 3-11-92 74608 RBF Engineers 35,073.42 Engineering Services 2-24-1 74609 Tule Ranch/Magan Farms 281,963.63 Residuals Removal MO 3-29-95 74610 U.S.Metro Group, Inc. 29,232.50 Janitorial&Floor Maintenance at Plants 1 &2 74611 U.S.Peroxide,L.L.C. 292,748.73 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 74612 American Telephone&Telegraph Corp. 267.10 Long Distance Telephone Service 74613 Agilent Technologies,Inc. 207.02 Lab Parts&Supplies 74614 Air Products&Chemicals,Inc. 24,500.00 0&M Agreement Oxy Gen Sys MO 8-8-89 74615 Airgas Safety,Inc. 2,101.36 Safety Supplies 74616 Analytical Products Group, Inc. 1,018.00 Lab Parts&Supplies 74617 Ashbrook Corporation 3,897.71 Winkelpress Parts 74618 Awards&Trophies Company 63.63 Awards&Trophies 74619 ACCU-Sludge 447.64 Lab Parts&Supplies 74620 ADTECH 660.00 Electrical Parts&Supplies 74621 Baker Tanks 1,820.00 Tank&Tote Rentals 74622 Basic Chemical Solutions,L.L.C. 15,411.64 Sodium Bisulfite&Sodium Hydroxide 74623 Basler Electric Company,Department 590 2,697.62 Electrical Parts&Supplies 74624 Battery Specialties 575.13 Batteries 74625 California Municipal Statistics,Inc. 475.00 Annual Financial Statement Statistical Section FY Ending 6/30/05 74626 California Relocation Services,Inc. 150.00 Office Files Moving/Relocation Services 74627 Cambridge Isotope Labs 2,616.78 Lab Parts&Supplies 74628 Cardlock Fuel Systems,Inc. 16,362.22 Fueling District Vehicles at Local Gas Stations 74629 Carollo Engineers 4,231.73 Professional Services P2-60 74630 Cole-Parmer Instrument Company 157.20 Lab Parts&Supplies 74631 Compressor Components of California 985.91 Repairs&Maintenance-Driveline Assembly at Bitter Point Pump Sta. 74632 Computational Systems,Inc. 1,599.83 Computer Hardware/Software 74633 Consiliant Technologies,L.L.C. 5,795.00 Software Support&Maintenance-Overload Storage Neo 8000 74634 Consolidated Elect.Distributors, Inc. 1,104.70 Electrical Parts&Supplies 74635 Conveyor Components Co. 636.85 Electrical Parts&Supplies 74636 Cooper Cameron Corporation 135.37 Engine Supplies 74637 Corporate Express 12,024.95 Office Supplies H:\dept\fin\EXCEL.dta1220\APSHAREhClaims Paid Report\05-06\Claims Paid Report-09-15-05 EXHIBIT A finl210no Page 1 of 8 10/11/2005 Claims Paid From 09/01/05 to 09/15/05 Warrant No. Vendor Amount Description 74638 County of Orange-Auditor Controller 970.00 Underground Storage Tank,Hazardous Material,&State Fees 74639 County of Orange-Auditor Controller 384.00 Underground Storage Tank Modifications Application Fee 74640 County Wholesale Electric Co. 2,312.91 Electrical Parts&Supplies 74641 CASQA-California Stormwater Quality 425.00 Environmental Compliance Services Division Meeting Registration 74642 Dapper Tire Co. 605.07 Truck Tires 74643 David's Tree Service 2,530.00 Tree Maint.Service 74644 Del Mar Analytical 5,971.00 Analysis of Biosolids and Wastewater 74645 Dell Computer 8.456.91 (12)Canon Digital Cameras,(3)Projectors,(3)Projector Mounts,&Service Plan 74646 Doug Horwood Supply 138.16 Repairs&Maintenance Services-Purchasing Lobby Bid Date Stamp Clock 74647 Dunn-Edwards Corporation 20.48 Paint Supplies 74648 E.Sam Jones Distributors,Inc. 192.55 Electrical Parts&Supplies 74649 Elect Air 718.20 Mechanical Parts&Supplies 74650 Embarcadero Technologies,Inc. 6,154.25 Software Maintenance Agreement-DBArtisan Pro MS SQL 74651 Entech Instruments,Inc. 448,37 Lab Parts&Supplies 74652 Environmental Law Institute 109.90 Books&Publications 74653 Environmental Resource Association 1,416.58 Lab Parts&Supplies 74654 Ewing Irrigation Industrial 1,144.37 Landscape Irrigation Parts&Supplies 74655 Emedco 591.98 Jumbo Stencil Letter Sets 74656 ENS Resources,Inc. 10,000.00 Professional Services-Federal Grant Funding 74657 FedEx Corporation 265.83 Freight Services 74658 Fine Science Tools,Inc. 152.81 Lab Parts&Supplies 74659 Fisher Scientific Company,L.L.C. 15,629.64 Lab Parts&Supplies 74660 Fluid Components Intl.c/o Ponton 566.73 Electrical Parts&Supplies 74661 Forkert Engineering&Surveying, Inc. 2,593.05 Engineering Services P1-76&P2-66 74662 Fountain Valley Paints,Inc. 368.95 Paint Supplies 74663 Frost Engineering Services Co. 1,001.43 Mechanical Parts&Supplies 74664 G.E.Supply 6,317.58 Electrical Parts&Supplies 74665 Ganahl Lumber Company 2,433.08 Lumber/Hardware 74666 George T.Hall 150.85 Electrical Parts&Supplies 74667 Goldenwest Window Service 580.00 Groundskeeping Services 74668 Goodway Technologies Corp. 405.00 Tools 74669 Grainger,Inc. 3,254.91 Electrical Parts&Supplies 74670 Graybar Electric Company 49.69 Electrical Parts&Supplies 74671 GBC(General Binding Corp) 48.36 Office Supplies 74672 Graphic Products,Inc. 511.01 Repairs&Maintenance Services-Labeling Machine 74673 Haaker Equipment Company 683.42 Misc.Vehicle,Parts,Repairs&Service 74674 Hach Go Ponton Industries 238.50 Lab Parts&Supplies 74675 Harrington Industrial Plastics,Inc. 6,502.91 Plumbing Supplies 74676 Home Depot Credit Services 363.43 Misc.Repair&Maintenance Material 74677 Horizon Technology 3,790.19 Lab Parts&Supplies 74678 Hub Auto Supply 1,615.60 Vehicle Parts&Supplies 74679 City of Huntington Beach 14,499.38 Water Use 74680 Idexx 668.05 Lab Parts&Supplies 74681 Industrial Distribution Group 2,064.18 Mechanical Parts&Supplies 74682 Industrial Hearing&Pulmonary Mgmt. 15,951.00 Employee Medical Surveillance Services H:ldeptlfn%EXCEL.dta12201APSHARE1Claims Paid Reportl05.061Claims Paid Report-09.15-05 EXHIBIT A fin/210ft Page 2 of 8 10111/2005 Claims Paid From 09/01/05 to 09/15/05 Warrant No. Vendor Amount Description 74683 Industrial Threaded Products, Inc. 349.75 Mechanical Parts&Supplies 74684 Integrated Acoustics 4,250.00 Repairs&Maintenance Services-Removal&Replacement of Tiles in Admin.Bldg. 74685 ITT Standard c/o Heat Technology 11,301.50 Heat Exchange Plate&Frame 74686 J.L.Wingert Co. 29.62 Repairs&Maintenance Services-Pump 74687 Jamison Engineering Contractors,Inc. 8,939.00 Repairs&Maintenance Services-Gasket Installation at P2 Reactor 74688 Johnstone Supply 229.04 Electrical Parts&Supplies 74689 JWC Environmental 5,549.13 Repairs&Maintenance Services-Muffin Monster 74690 Kerr Engineering&Sales,Inc. 383.10 Mechanical Parts&Supplies 74691 Labware,Inc. 5,300.00 On-Site Lab Consulting Services-Implementation of NWA OCX 74692 Lee&Ro,Inc. 24,199.35 Professional Services 5-51 &5-52 74693 Lucci's Gourmet Foods, Inc. 55.93 Meeting Expense 74694 Invensys Systems, Inc. 1,535.55 Electrical Parts&Supplies 74695 Matt Chlor, Inc. 2,821.08 Valves 74696 Mayer, Brown, Rowe&Maw, L.L.P. 5,000.00 Professional Services-Strategic Planning&Advocacy 74697 McMahan Business Interiors 1,637.27 Construction FE05-21 74698 McMaster-Carr Supply Co. 2,213.33 Tools,Instruments, Mechanical&Maintenance Parts&Supplies 74699 Medlin Controls Co. 974.22 Instrument Supplies 74700 Mission Abrasive&Janitorial Supplies 574.49 Janitorial Supplies 74701 Mitchell Instrument Co. 885.00 Tools&Safety Equipment 74702 Motion Industries,Inc.CA 55 106.13 Mechanical Parts&Supplies 74703 National Institute of Stds&Technology 2,111.00 Lab Parts&Supplies 74704 National Plant Services, Inc. 16,813.13 Vacuum Truck Services&Video Inspection of Sewer Line Segments 74705 Nickey Petroleum Co., Inc. 249.93 Grease 74706 Neutron Products, Inc. 3,590.23 Anionic Polymer 74707 NRG Thermal Services,L.L.C. 632.30 Mechanical Parts&Supplies 74708 Office Depot Business Services Div. 973.54 Office Supplies 74709 OhmartfVEGA Corp. 839.68 Repairs&Maintenance Services-Smart Pro Density Meter 74710 OneSource Distributors, Inc. 947.73 Electrical Parts&Supplies 74711 Orange Fluid System Technologies, Inc. 254.44 Plumbing Parts&Supplies 74712 Oxygen Service Company 133.79 Specialty Gases 74713 OCB Reprographics 177.54 Printing Service-MO 1/26100 74714 OI Analytical 1,118.46 Lab Parts&Supplies 74715 P.L.Hawn Company, Inc. 1,161.28 Electrical Parts&Supplies 74716 Pacific Mechanical Supply 347.22 Plumbing Supplies 74717 Parker Supply Company 2,524.70 Mechanical Parts&Supplies 74718 Parkhouse Tire Co., Inc. 359.61 Tires 74719 Port Supply 14.00 Deck Tools 74720 PrinterGuy 3,460.00 Printer Maintenance 74721 Propipe 348.22 Video Inspection of Sewer Line Segments for Damage, Infiltration&Illegal Conn. 74722 PBM IT Solutions 112.00 Cisco SmartNet Maintenance Agreement 74723 PCG Industries 475.00 Repairs&Maintenance Services-Pump Shaft 74724 PCS Express,Inc. 122.00 Courier Service 74725 PS Tek,L.L.C. 3,933.40 Filters 74726 Rees Scientific 9,607.01 Lab Software/Hardware Upgrade-Centron System 74727 Restek Corp. 248.05 Lab Parts&Supplies H:ldeptlfin\EXCEL.dta1220VAPSHARE1Claims Paid Report105-061Claims Paid Report-09-15-05 EXHIBIT A rin/210Ac Page 3 of 8 10111/2005 Claims Paid From 09/01/05 to 09/15/05 Warrant No. Vendor Amount Description 74728 Schwing America,Inc. 2,499.73 Pump Parts&Supplies 74729 Science Applications Intl.,Corp. 13,621.22 Ocean Monitoring MO 6-8-94 74730 Scott Specialty Gases, Inc. 2,211.94 Specialty Gases 74731 Shureluck Sales&Engineering 979.97 Mechanical Parts&Supplies 74732 Sigma-Aldrich, Inc. 276.29 Lab Parts&Supplies 74733 Smith Pipe&Supply, Inc. 30.12 Mechanical Parts&Supplies 74734 Snap-On Tools, Inc. 48.56 Tools 74735 SoftChoice 754.25 Software 74736 South Coast Air Quality Management Dist. 13,221.31 Annual Emissions,Operation,&Miscellaneous Fees 74737 South Coast Air Quality Management Dist. 2,991.92 Annual Emissions,Operation,&Miscellaneous Fees 74738 South Coast Air Quality Management Dist. 81.89 Annual Emissions,Operation,&Miscellaneous Fees 74739 South Coast Air Quality Management Dist. 220.29 Annual Emissions,Operation,&Miscellaneous Fees 74740 South Coast Air Quality Management Dist. 81.89 Annual Emissions,Operation,&Miscellaneous Fees 74741 South Coast Air Quality Management Dist. 220.29 Annual Emissions,Operation,&Miscellaneous Fees 74742 South Coast Air Quality Management Dist. 81.89 Annual Emissions,Operation,&Miscellaneous Fees 74743 South Coast Air Quality Management Dist. 81.89 Annual Emissions,Operation,&Miscellaneous Fees 74744 South Coast Air Quality Management Dist. 18,488.14 Annual Emissions,Operation,&Miscellaneous Fees 74745 South Coast Air Quality Management Dist. 220.29 Annual Emissions,Operation,&Miscellaneous Fees 74746 South Coast Air Quality Management Dist. 81.89 Annual Emissions,Operation,&Miscellaneous Fees 74747 South Coast Air Quality Management Dist. 81.89 Annual Emissions,Operation,&Miscellaneous Fees 74748 Southern California Edison Co. 20,173.68 Installation of Transformer/Service 74749 Southern California Edison 8,258.88 Power 74750 Southern California Water 119.22 Water Use 74751 Stanley Steamer International,Inc. 1,143.75 Carpet Cleaning Services 74752 Sunset Ford 731.66 Vehicle Parts&Supplies 74753 Sunset Industrial Parts 73.40 Mechanical Parts&Supplies 74754 Sy Nielson Service, Inc. 170.00 Balance Calibrations 74755 SBC/MCI 208.87 Telephone Services 74756 SKYE,L.L.C. 1,446.50 Professional Services FE0440 74757 Terminix International 215.00 Pest Control 74758 The Walking Man,Inc. 1,975.00 Mailing Services-Various Construction Projects 74759 Thermo Electron Corp. 463.66 Lab Parts&Supplies 74760 Thompson Industrial Supply,Inc. 1,185.65 Mechanical Parts&Supplies 74761 Time Warner Communications 51.07 Cable Services 74762 Times Community News 126.50 Notices&Ads 74763 Todd Painting, Inc. 5,373.00 Painting Services 74764 Tony's Lock&Safe Service&Sales 30.17 Locks&Keys 74765 Truck&Auto Supply,Inc. 1,724.69 Automotive Supplies 74766 Tuff Skin 300.00 Truck Maintenance-Line-X Application on V-459 74767 TMV Systems Engineering, Inc. 4,406.25 Software Maintenance 74768 US Filter Corp. 325.00 Service Agreement-DI Water Systems at Plants 1 &2 74769 U-Line 460.95 Office/Shipping Supplies 74770 United Pacific Services,Inc. 1,125.00 Landscape Maintenance at Plt.2 74771 Vapex,Inc. 1.113.00 Pump Parts&Supplies 74772 Varian, Inc. 1,000.00 Lab Instrument Repair Service H:ldeptlrinT=XCEL.dta1220WPSHAREkClaims Paid Report105.061Claims Paid Report-09-15-05 EXHIBIT A rn/21011c Page 4 of 8 10111/2005 a • d e Claims Paid From 09/01105 to 09/15105 Warrant No. Vendor Amount Description 74773 Verizon California 711.16 Telephone Services 74774 Villa Ford 20,903.49 (1)2005-06 Ford XL F-250 Truck 74775 VWR Scientific Products Corporation 3,655.01 Lab Parts&Supplies 74776 Waste Markets Corp. 16,482.44 Maint.Agreement-Grit&Screenings Removal&Digester Bed Mat'I.Removal 74777 Water 3 Engineering, Inc. 2,845.37 Engineering Services J-67 74778 Waters Corporation 2,114.36 Lab Parts&Supplies 74779 Waxie Sanitary Supply 1,139.10 Janitorial Supplies 74780 Wilson Supply,Inc. 186.30 Plumbing Parts&Supplies 74781 WEFTEC 725.00 Environmental Assessment Division Meeting Registration(Water Envirn.Fed.) 74782 Yale/Chase Materials Handling,Inc. 3.438.79 Mechanical Parts for Electric Carts 74783 Blake Anderson 156.85 Meeting/Training Expense Reimbursement 74784 Jeffrey L.Armstrong 422.81 Meeting/Training Expense Reimbursement 74785 Carol T.Beekman 80.03 Meeting/Training Expense Reimbursement 74786 Thomas M.Blanda 171.78 Meeting/Training Expense Reimbursement 74787 James E.Colston 295.67 Meeting/Training Expense Reimbursement 74788 Steven R.DeWilde 1,050.72 Meeting/Training Expense Reimbursement 74789 James R.Harris 618.25 Meeting/Training Expense Reimbursement 74790 Vladimir A.Kogan 488.21 Meeting/Training Expense Reimbursement 74791 Charles G.Lee 402.21 Meeting/Training Expense Reimbursement 74792 Michael D.Moore 93.12 Meeting/Training Expense Reimbursement 74793 Samuel L.Mowbray 529.12 Meeting/Training Expense Reimbursement 74794 Jamiann M.Questa 133.33 Meet!ng/Training Expense Reimbursement 74795 George L.Robertson 678.00 Meeting/Training Expense Reimbursement 74796 Doug Rulison 391.30 Meet!ng/TrainIng Expense Reimbursement 74797 Y.J.Shao 190.00 Meeting/Training Expense Reimbursement 74798 County of Orange-Auditor Controller 384.00 Underground Storage Tank Modification Application Fee 74799 Orange County Sanitation District 1,393.27 Petty Cash Reimb. 74800 J F Shea Construction,Inc. 292,203.00 Construction J-35-1 74801 Cortez,Ronald 1.967.00 Employee Computer Loan Program 74802 Luna,Lourdes&CompUSA 2,753.99 Employee Computer Loan Program 74803 Nicolas,Dan 1,028.38 Employee Computer Loan Program 74804 Rea,Rory&Dell 3,000.00 Employee Computer Loan Program 74805 American Express 26,136.68 Purchasing Card Program,Misc.Supplies&Services 74806 OCB Reprographics 70,977.20 Printing Service-MO 1/26/00 74807 Synagro West,Inc. 80.020.94 Residuals Removal MO 3-29-95 74808 South Coast Air Quality Management Dist. 41,030.00 Annual Emissions Report Fee-Plt.2 74809 South Coast Air Quality Management Dist. 34,602.03 Annual Emissions Report Fee-Pit. 1 74810 American Concrete Institute 83.50 Books&Publications 74811 American Fildelity Assurance Company 376.90 Employee Cancer Insurance 74812 American Payroll Institute,Inc. 165.00 Membership 74813 Aspen Publishers,Inc. 12.89 Publication 74814 ACS Hydraulics,Inc. 242.87 Motor Repairs 74815 American Telephone&Telegraph Corp. 34.77 Telephone Service 74816 AWSI 339.00 Department of Transportation Program Management&Testing 74817 Bar Tech Telecom,Inc. 322.17 Telephone Parts&Supplies H:ldeptlfinlEXCEL.dta12201APSHARE1Claims Paid Report105-060aims Paid Report-09-15.05 EXHIBIT A fin/21onc Page 5 of 8 10111/2005 Claims Paid From 09/01/05 to 09/15/05 Warrant No. Vendor Amount Description 74818 Court Order 150.00 Wage Garnishment 74819 Compressor Components of California 5,323.23 Repairs&Maintenance-Rebuild(32)Pilot Fuel Valves 74820 County of Orange 150.00 Wage Garnishment 74821 County of Orange-Auditor Controller 70.00 Encroachment Permits 74822 County of Orange-Auditor Controller 35.00 Encroachment Permits 74823 County of Orange-Auditor Controller 35.00 Encroachment Permits 74824 County of Orange-Auditor Controller 2,030.00 Encroachment Permits 74825 County of Orange-Auditor Controller 1,015.00 Encroachment Permits 74826 CMTA-California Municipal Treasurers 350.00 Accounting Division Meeting Registration 74827 Coast Plumbing 750.00 Plumbing Repairs&Maintenance Service 74828 CWEA 225.00 Notices&Ads 74829 CWEA Membership 100.00 Membership(Calif.Water Environment Assoc.) 74830 Department of Child Support Services 188.50 Wage Garnishment 74831 Dunn-Edwards Paints 116.06 Paint Supplies 74832 DHL Express(USA),Inc. 17.42 Freight Services 74833 Employee Benefits Specialists,Inc. 9,550.82 Reimbursed Prepaid Employee Medical&Dependent Care 74834 Enchanter, Inc. 4,700.00 Ocean Monitoring&Outfall Inspection&Maintenance 74835 Court Order 445.00 Wage Garnishment 74836 Steams Bank,N.A. 711.25 Hydrochloric Acid 74837 FedEx Corporation 117.03 Freight Services 74838 Fisher Scientific 113.33 Lab Parts&Supplies 74839 Franchise Tax Board 50.00 Wage Garnishment 74840 Innertine Engineering 19,280.71 Video Inspection of Sewer Line Segments for Damage,Infiltration&Illegal Conn. 74841 Internal Revenue Service 300.00 Wage Garnishment 74842 Intl.Union of Oper. Eng.AFL-CIO Local 501 4,610.00 Dues Deduction 74843 Irvine Ranch Water District 7.88 Water Use 74844 IAPMO 400.00 Training Registration 74845 IECOC 30.00 Training Registration 74846 Jamison Engineering Contractors,Inc. 24,602.97 Repairs&Maintenance Services-Install&Upgrade Gas Flaps 74847 Jobs Available,Inc. 255.00 Notices&Ads 74848 Lindborg,Mead,Drill&Pezzillo,L.L.P. 2.765.00 On-Site Training-Construction Management 74849 LINJER 5,004.58 Professional Service-DART MO 9-22-99 74850 Massachusetts Mutual Life Ins. 599.76 Executive Disability Plan Premium 74851 Midway Mfg.&Machining Co. 5,645.94 Repairs&Maintenance Services-Impeller 74852 Court Order 225.00 Wage Garnishment 74853 Municipal Equipment Maintenance Assoc. 50.00 Membership 74854 National Bond&Trust 2,927.03 U.S.Savings Bonds Payroll Deductions 74855 National Water Research Institute 10,000.00 Membership Contribution-Southern California Salinity Coalition 74856 Nextel Communications 945.99 Cellular Phones&Air Time 74857 NAFA,Inc. 830.00 Membership 74858 Office Depot Business Services Div. 1,472.72 Office Supplies 74859 Orange County Sheriff 85.00 Wage Garnishment 74860 Orange Fluid System Technologies, Inc. 55.65 Plumbing Parts&Supplies 74861 Oxygen Service Company 117.02 Specialty Gases 74862 OCEA 650.54 Dues Deduction H:\dept\fin1EXCEL.dta\2201APSHARE\Claims Paid Report\05-06\Claims Paid Report-09-15-05 EXHIBIT A rnr210ac Page 6 of 8 10/11/2005 w w, Claims Paid From 09/01/05 to 09/15105 Warrant No. Vendor Amount Description 74863 Peace Officers Council of CA 1,620.00 Dues Deduction,Supervisors&Professionals 74864 Port Supply 33.18 Safety Boots 74865 Praxair Distribution, Inc. 15.70 Demurrage 74866 Pre-Paid Legal Services, Inc. 525.25 Employee Legal Service Insurance Premium 74867 Propipe 16,445.58 Video Inspection of Sewer Line Segments for Damage,Infiltration&Illegal Conn. 74868 Prudential Overall Supply 3,404.01 Uniforms&Related Articles 74869 Public Treasury Institute 66.25 Membership 74870 PCG Industries 750.00 Repairs&Maintenance Services-Pump Shaft 74871 R.L.Abbott&Associates 3,000.00 Kern County Biosolids Consulting Services 74872 Red Wing Shoes 158.61 Safety Shoes 74873 Reliastar Bankers Security Life Ins. 8,782.86 Employee Vol. Life Ins.,Short-Term Disability&Cancer Ins. Payroll Deductions 74874 Restek Corp. 200.00 Training Registration 74875 Rockwell Automation-Entek 502.02 Tax&Freight Charges 74876 Scottel Voice&Data, Inc. 2,284.80 Telephone System Maintenance 74877 Court Order 721.50 Wage Garnishment 74878 So.Cal.Gas Company 18,481.89 Natural Gas 74879 Source Graphics 1,256.00 Maintenance Agreement-OCE Wide Format Copier/Printer 74880 Stanford Center for Professional Dev. 4,540.00 Training Registration 74881 Sunset Ford 388.95 Vehicle Parts&Supplies 74882 SBC 1,604.62 Telephone Services 74883 SBC/MCI 777.35 Telephone Services 74884 SCAP 40.00 Environmental Compliance Services Division Meeting Registration 74885 Sunrise Marine 1,455.19 Navigation System Signal Connection to Lab Work Station Port Connectors 74886 The Standard Insurance Company 2,417.83 Executive Disability Plan Premium 74887 Tri-State Seminar On-the-River 225.00 Training Registration 74888 TSCM Corporation 1,700.00 Street Sweeping Services 74889 United Parcel Service 49.03 Parcel Services 74890 United Way 195.00 Employee Contributions 74891 Verizon California 92.02 Telephone Services 74892 The Wackenhut Corporation 13,529.85 Security Guards 74893 Waste Markets 17,764.73 Maint.Agreement-Grit&Screenings Removal&Digester Bed Mat'I.Removal 74894 Wastewater Treatment Plant Specialist 2,500.00 On-Site Training-Advance Primary Treatment/Jar Testing 74895 WEF 455.00 Membership-Water Environment Federation 74896 WEF Publications 207.50 Publication 74897 Xerox Corporation 108.95 Copier Leases 74898 Court Order 597.50 Wage Garnishment 74899 South Coast Air Quality Mgmt.Dist. 190.46 Permit Fee J-71-8 74900 Wayne W.Aegerter 604.01 Meeting/Training Expense Reimbursement 74901 Andrei loan 198.78 Meeting/Training Expense Reimbursement 74902 Vincent S.Lockyer 440.52 Meeting/Training Expense Reimbursement 74903 Tomm E. McElroy 723.32 MeetinglTraining Expense Reimbursement 74904 Umesh N.Murthy 150.00 Meeting/Training Expense Reimbursement 74905 Christina M.Thomas 350.96 MeetingfTraining Expense Reimbursement 74906 Edward M.Torres 718.47 Meeting/Training Expense Reimbursement 74907 Watson,Simon 109.00 Meeting/Training Expense Reimbursement H:XdeptlfimEXCEL.dta1220WPSHARE%Claims Paid Report105-061Claims Paid Report-09-15.05 EXHIBIT A finnlOAc Page 7 of 8 10/11/2005 Claims Paid From 09/01/05 to 09/15/05 Warrant No. Vendor Amount Description 74908 Ernest N.Yeboah 536.14 Meeting/Training Expense Reimbursement 74909 Paula A.Zeller 1,018.94 Meeting/Training Expense Reimbursement 74910 Patrick W.McNelly 44.50 Meeting/Training Expense Reimbursement 74911 Orange County Sanitation District 19,356.35 Worker's Comp.Reimb. 74912 Coast Plumbing 2.200.00 Plumbing/Drain Cleaning 74913 Midway Mfg&Machining Co. 2.125.00 Mechanical Parts&Supplies 74914 Moreland&Associates 425.00 Auditing Services MO 3-8-95 74915 Hotjobs.Com,Ltd. 4.999.00 Notices&Ads Total Accounts Payable-Warrants $ 4,108,743.85 Payroll Disbursements 38747- 38749 Employee Paychecks $ 632.74 Interim Paychecks-Retro,IDEA&Termination/Retirement 09/01/05 38750 - 38851 Employee Paychecks 144,366.23 Biweekly Payroll 09/14/05 38852 - 38854 Employee Paychecks 4,636.40 Interim Paychecks-Termination/IDEA/Correction 09/15/05 116166-116726 Direct Deposit Statements 1,056,400.27 Direct Deposit Statements 09/14/05 Total Payroll Disbursements $ 1,206,035.64 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 615,307.74 Biweekly Payroll 09/14/05 JP Morgan Chase Bank 139.527.63 Series 1993 Refunding COP's August Interest Payment Total Wire Transfer Payments $ 754,835.37 Total Claims Paid 09/01/05-09/15105 $ 6,069,614.86 H:ldepllrinlEXCEL.dta\2201APSHARE1Claims Paid ReportX05-06\Claims Paid Report-09-15-05 EXHIBIT A rn/2104c Page 8 of 8 10/11/2005 f �` Claims Paid From 09/16/05 to 09/30/05 Warrant No. Vendor Amount Description Accounts Payable-Warrants 74916 ADS Environmental Services, Inc. $ 56,050.00 Professional Services J-73-2 74917 Black&Veatch Corporation 441,375.56 Engineering Services J-102,5-58&J-79-1 74918 City of Seal Beach 54,582.47 Cooperative Projects Reimbursement Program 74919 Dudek&Associates,Inc. 119.769.49 Professional Services P2-68 74920 Fluor Enterprises,Inc. 108,644.30 Engineering Services J-84&SP-81 74921 IPMC c/o Parsons 921,418.00 Eng.Services-Integrated Program/Project Mgmt.,Temp.Staffing,&Mat'I.&Supplies 74922 Kemiron Companies,Inc. 131,812.31 Ferric Chloride MO 9-27-95 74923 Lee&Ro,Inc. 35,060.43 Professional Services P247-3,5-50,5-51,&5-52 74924 Orange County Water District 9,129,222.78 Joint GWRS Project J-36 74925 Partners Consulting Services 70,080.00 JD Edwards Help Desk Support 74926 Pioneer Americas,Inc. 326,536.12 Sodium Hypochlorite 74927 Polydyne,Inc. 42,779.61 Cationic Polymer MO 3-11-92 74928 Propipe 29,483.05 Video Inspection of Sewerline Segments for Damage,Infiltrations&Illegal Connections 74929 Southern California Edison 390,635.24 Power 74930 Spartan Pumping 49,496.83 (2)Trailer-Mounted,4"Diesel Self-Priming Pumps 74931 Synagro Technologies,Inc. 146,998.26 Residuals Removal MO 3-29-95 74932 Thompson Industrial Supply,Inc. 30,744.51 Mechanical Parts&Supplies 74933 Tule Ranch/Magan Farms 275,790.04 Residuals Removal MO 3-29-95 74934 U.S.Peroxide,L.L.C. 75,511.77 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide 74935 UBS Financial Services,Inc. 37,568.21 Remarketing Fee-2000"A"&"B"Refunding Certificates of Participation 74936 J F Shea Construction,Inc. 410,942.73 Construction J-35-1 &J-77 74937 J R Filanc Construction 277,085.70 Construction FE02-08&P1-76 74938 Margate Construction,Inc. 295,276.00 Construction P1-37 74939 Morrow-Meadows Corp. 80,293.00 Construction FE03-24&P2-47-3 74940 Olsson Construction,Inc. 29,63B.00 Construction P2-82 74941 Southern Contracting Company 26,891.00 Construction J-33-1 74942 Absolute Standards,Inc. 35.00 Lab Parts&Supplies 74943 Accutile Fasteners,Inc. 224.30 Mechanical Parts&Supplies 74944 Advance Business Graphics 214.79 Printing Services-Business Cards 74945 Agilent Technologies, Inc. 802.89 Lab Parts&Supplies 74946 Airco Filler Service 570.95 Filter Elements 74947 Airgas Safety,Inc. 6,980.12 Safety Supplies 74948 Alhambra Foundry Co.,Ltd. 2,720.96 Manhole Covers 74949 Allied Packing&Rubber,Inc. 103.86 Mechanical Parts&Supplies 74950 Alta-Robbins, Inc. 60.70 Instrument Supplies 74951 American Biofuels,L.L.C. 1.875.00 (1)Tote of Fatty Acid Methyl Esters 74952 Analysts,Inc. 1,025.46 Oil Test Kit&Analyses 74953 Applied Industrial Technology 130.94 Mechanical Parts&Supplies 74954 Aquarium Doctor 113.25 Human Resources Aquarium Service 74955 Aquatic Bioassay And Consulting Labs,Inc. 785.00 Whole Effluent Toxicity Testing 74956 Augusta Engineering 4,900.00 Training Registration 74957 AKM Consulting Engineers 17,465.50 Professional Services 741,7-39&Part-Time Dig Alert Technician 74958 Amtech Elevator Services 1,400.00 Elevator Maintenance Service 74959 ARB/PERP-Air Resources Board 360.00 Portable Equipment Registration Program Certificates Fee 74960 Basic Chemical Solutions,L.L.C. 19,210.69 Sodium Bisulfite&Sodium Hydroxide 74961 BioMerieux Vitek,Inc. 1,412.15 Lab Parts&Supplies 74962 Bird-B-Gone 178.52 Bird Control Product for Ocean Monitoring Boat Nerissa 74963 Bondlogistix,L.L.C. 2,000.00 Prof.Serv.-Preparation of Interim Arbitrage Rebate Report Re 1992 Series COPs H:ldept\fin1EXCEL.dtaQ20VAPSHARE1Claims Paid Report105-061Claims Paid Report-09-30-05 EXHIBIT B fin/2109c Page 1 of 9 10117/2005 Claims Paid From 09116/05 to 09/30105 Warrant No. Vendor Amount Description 74964 Brand Scaffold Rental&Erection,Inc. 936.32 Scaffolding Access for Catwalks of Scrubbers 9&10,and Interior Ladders 74965 Brennlag Pacific,Inc. 205.16 Janitorial Supplies 74966 Brown&Caldwell 200.00 Notices&Ads 74967 Bush&Associates,Inc. 12,648.00 Professional Services 741 74968 BNI Building News 109.23 Books&Publications 74969 Cal Protection 1,096.00 Service Agreement-Halon Fire System at Pit.2 Operations Center 74970 California Relocation Services,Inc. 225.00 Office Files Moving/Relocation Services 74971 Career Track 888.00 Training Registration 74972 Carl Warren&Co. 518.32 Insurance Claims Administrator 74973 Court Order 150.00 Wage Garnishment 74974 Columbia Analytical Services, Inc. 270.00 Analysis of Wastewater,Industrial Wastewater&Biosolids 74975 Communications Performance Group,Inc. 7,885.00 Professional Services-O&M Technical Manual&SOP's 74976 Compressor Components of California 6,340.00 Repairs&Maintenance-LSVB Engine Gas Injectors 74977 Computer Protection Technology, Inc. 2,205.32 Computer Maintenance-Battery Replacements 74978 Consolidated Elect, Distributors,Inc. 3,227.11 Electrical Parts&Supplies 74979 Consumers Pipe&Supply Co. 1,230.72 Mechanical Parts&Supplies 74980 Cooper Cameron Corporation 1,435.94 Engine Supplies 74981 Corporate Express 3,209.75 Office Supplies 74982 Corporate Image Maintenance,Inc. 168.00 Custodial Services Spec.No.9899-09 74983 Cortech Engineering 2,276.36 Pump Parts&Supplies 74984 Counterpart Enterprises, Inc. 7,198.57 Mechanical Parts&Supplies 74985 California Redevelopment Association 535.00 Training Registration 74986 Campbell Window Tinting 337.50 Window Tinting 74987 Careerbuilder 1,639.99 Notices&Ads 74988 CEM Corporation 251.89 Lab Parts&Supplies 74989 CMAA 85.00 Project Management Office Division Meeting Registration 74990 Controlled Motion Solutions 215.08 Mechanical Parts&Supplies 74991 CR&R,Inc. 2,205.00 Container Rentals 74992 CWEA Membership 100.00 Membership(Calif.Water Environment Assoc.) 74993 Del Mar Analytical 467.00 Analysis of Biosolids 74994 Dell Computer 20,700.83 (10)Dell OptiPlex Mini-Towers&(5)Latitude Notebooks 74995 Docuscurce,L.L.C. 142.08 Office Supplies 74996 Dunn-Edwards Corporation 143.26 Paint Supplies 74997 Dynalco Corp. 727.89 Instrument Maint.Servtce 74998 DDB Engineering,Inc. 1,875.00 Professional Services-Grant Management 74999 Desert Pumps&Parts,Inc. 4,829.31 Pump&Pump Parts 75000 DGA Consultants,Inc. 5,901.50 Professional Services-CCTV Data Evaluation&Support 75001 DLT Solutions,Inc. 7,012.37 Software Licenses/Subscriptions 75002 E.Sam Jones Distributors,Inc. 86.89 Electrical Parts&Supplies 75003 Eberhard Equipment 851.49 Mechanical Parts&Supplies 75004 Ecology Control Industries 420.00 Hazardous Waste Disposal 75005 Edinger Medical Group,Inc. 585.00 Medical Screenings 75006 Electrical Reliability Services, Inc. 1,248.00 Professional Services-Electrical Acceptance Testing for Capital Projects 75007 Employers Group 1,430.00 On-Site Training-Managing Priorities&Projects 75008 Enchanter,Inc. 3,200.00 Ocean Monitoring&Outfall Inspection&Maintenance 75009 Entech Instruments,Inc. 1,346.10 Lab Parts&Supplies 75010 Ewing Irrigation Industrial 1,013.64 Landscape Irrigation Parts&Supplies 75011 FedEx Corporation 841.10 Freight Services 75012 Fisher Scientific Company,L.L.C. 2,098.92 Lab Parts&Supplies H:ldeptkfin\EXCEL.dtaQ20WPSHAREkCiaims Paid Report105-061Claims Paid Report-09-30.05 EXHIBIT B rm/21011c Page 2 of 9 10/17/2005 - a Claims Paid From 09/16/05 to 09/30105 Warrant No. Vendor Amount Description 75013 Flo-Systems,Inc. 17,997.52 Pump Supplies 75014 Forked Engineering&Surveying,Inc. 869.55 Engineering Services P1-76 75015 Fountain Valley Paints,Inc. 232.64 Paint Supplies 75016 Fountain Valley Rancho Hand Wash 1,211.00 Vehicle Washing&Waxing Services 75017 Franklin Covey 289.38 Office Supplies 75018 Frasco Profiles 395.50 Human Resources Background Checks 75019 Fry's Electronics 237.03 Computer Supplies 75020 General Binding Corporation 81.22 Lab Parts&Supplies 75021 GeomAtrix Consultants,Inc. 1,164.80 Soils,Concrete&Other Materials Testing 75022 George Yardley Co. 256.01 Valves 75023 Golden Bell Products 7,771,50 Contractual Services-Insecticide Coating of Manholes 75024 Grainger,Inc. 101.82 Plumbing Parts&Supplies 75025 Greenleaf Industries 1,275.00 Groundskeeping 75026 Hach c/o Ponton Industries 2,124.13 Instrument Parts&Supplies 75027 Harold Primrose Ice 140.00 Ice For Samples 75028 Harrington Industrial Plastics,Inc. 804.72 Plumbing Supplies 75029 Home Depot Credit Services 817.28 Misc.Repair&Maintenance Material 75030 Horizon Technology 244.14 Lab Parts&Supplies 75031 Hub Auto Supply 212.50 Vehicle Parts&Supplies 75032 HDR Engineering,Inc. 849.79 Professional Services P2-82 75033 HI Standard Automotive 293.80 Automotive Parts&Supplies 75034 Industrial Distribution Group 223.74 Paint&Mechanical Supplies 75035 Industrial Metal Supply 128,04 Metal 75036 Industrial Threaded Products,Inc. 710.31 Mechanical Parts&Supplies 75037 Iron Mountain 91.13 Bid Document Storage Fees P1-37 75038 IOMA,Inc. 275.00 Training Registration 75039 J.G.Tucker and Son,Inc. 921.26 Specialty Gases 75040 Jamison Engineering Contractors,Inc. 8,900.00 Construction-Rehab of Planter Boxers at Slater Pump Sta.,&Fill&Compact Washouts 75041 Jay's Catering 1,588.00 Meeting Expenses 75042 Jensen Instrument Co. 784.07 Instrument Repairs 75043 Johnstone Supply 717.41 Electrical Parts&Supplies 75044 Kleinfelder,Inc. 434.50 Professional Services 5-52&5-51 75045 Koop Appraisal Service 97.50 Vehicle Appraisal Services-Accident Damage Claim 75046 Krohne,Inc. 125.00 Repairs&Maintenance Services-Electrical 75047 Los Angeles County 1,507.50 Sewer Service Conn.Agreement MO 9/23198 75048 Lucci's Gourmet Foods,Inc. 310.42 Meeting Expense 75049 LECO Corporation 639.06 Lab Parts&Supplies 75050 LINJER 5,080.28 Professional Service-DART MO 9-22-99 75051 M.J.Schiff&Associates,Inc. 315.00 Soil Sample Drilling-Yorba Linda Pump Sta. 75052 MarVac Electronics 14.79 Electrical Supplies 75053 Matheson Tri Gas,Inc. 174.59 Lab Parts&Supplies 75054 McMaster-Carr Supply Co. 4.237.83 Mechanical Parts,Supplies,Tools&Locks/Keys 75055 Measurement Control Systems,Inc. 5.025.66 Instrument Repairs&Calibration Service 75056 Mobile Air Conditioning Society 200.00 Membership 75057 MWH Americas,Inc. 17,571.61 Professional Service P2-74 75058 National Plant Services,Inc. 8,640.00 Vacuum Truck Services 75059 Neal Supply Co. 42.05 Plumbing Supplies 75060 New Horizons CLC of Santa Ana 2,625.00 Training Registration 75061 Newark Electronics 62.35 Instrument Parts&Supplies H:\deplUln\EXCEL.dta\220\APSHARE\Claims Paid Report\05-0b\Claims Paid Report-09-30-05 EXHIBIT B fin1210nc Page 3 of 9 10/17n005 Claims Paid From 09/16/05 to 09130/05 Warrant No. Vendor Amount Description 75062 Nu-Way Laser Engraving 2.539.30 Steel Tags 75063 Nalco Company 21,362.94 Anionic Polymer Tote 75064 Neutron Products,Inc. 17,926.24 Anionic Polymer 75065 NEXTTEQ,L.L.C. 699.06 Pump Parts&Supplies 75066 NRG Thermal Services,L.L.C. 51.25 Mechanical Parts&Supplies 75067 O C Tanner Recognition Company 929.71 Employee Service Awards Program 75068 Occidental Energy Marketing,Inc. 21,058.24 Natural Gas for CenGen/CoGen 75069 Office Depot Business Services Div. 1,690.22 Office Supplies 75070 Omega Engineering, Inc. 383.15 Repairs&Maintenance Services-Controller 75071 Omega Industrial Supply Inc. 1,132.28 Janitorial Supplies 75072 OneSource Distributors,Inc. 841.35 Electrical Parts&Supplies 75073 Orange Fluid System Technologies,Inc. 3,503.52 Plumbing Parts&Supplies 75074 Oxygen Service Company 4,990.42 Specialty Gases 75075 OCB Reprographics 4,101.34 Printing Service-MO 1/26/00 75076 OI Analytical 158.40 Lab Parts&Supplies 75077 P.L.Hawn Company,Inc. 604.60 Electrical Parts&Supplies 75078 Pacific Mechanical Supply 231.25 Mechanical Parts&Supplies 75079 Pageantry World,Inc. 199.08 American Flags 75080 Parker Supply Company 3,802.18 Mechanical Parts&Supplies 75081 Patriot Video Productions 109.74 Video&Editing Services 75082 Prudential Overall Supply 3,365.72 Uniforms&Related Articles 75083 Pumping Solutions,Inc. 4,459.56 Pumps 75084 Paragon Plastics Company 2,388.60 Plexiglas 75085 Patricia Jorgenson 600.00 On-Site Lab Group Training-Lifting Technique 75086 Rainbow Disposal Co. 2,973.12 Trash Removal 75087 Restek Corp 825.10 Lab Parts&Supplies 75088 Ricoh Business System 1,623.90 Color Copier Lease&Supplies 75089 RBF Engineers 738.50 Engineering Services 2-24-1 75090 Reliability Magazine 99.00 Subscription 75091 RS Hughes Co,Inc. 48.12 Paint Supplies 75092 RSA Sutter Soil Products 1,575.84 Soil Materials 75093 Rudolph Stolz 1,500.00 Training Registration 75094 Safety-Kleen 573.54 Parts Washer Lease&Service 75095 Sancon Engineering, Inc. 725.00 Repairs&Maintenance Services-Pump Out Air Jumpers 75096 Schwing America,Inc. 5,496.77 Pump Parts&Supplies 75097 Scott Specialty Gases,Inc. 3,001.62 Specialty Gases/Demurrage 75098 Sea-Bird Electronics,Inc. 418.87 Lab Maintenance&Service 75099 Sewer Equipment Company of America 571.08 Hose Guides&Leaders 75100 Shamrock Supply Co.,Inc. 362.94 Paint&Maintenance Supplies,Vacuum,&Tools 75101 Shureluck Sales&Engineering 134.51 Mechanical Parts&Supplies 75102 Supelco,Inc. 1,130.42 Lab Parts&Supplies 75103 Smith Pipe&Supply 56.56 Landscape Irrigation Supplies 75104 So.Cal.Gas Company 573.03 Natural Gas 75105 SoftCholce Corp. 425.19 Software Maintenance 75106 Southern California Edison 2,137.66 Power 75107 Southern Counties Lubricants 4,977.01 Gear&Hydraulic Oils 75108 Southern Counties Oil Co. 14,108.60 Diesel Fuel 75109 Sparkletts 1,974.33 Drinking Water/Cooler Rentals 75110 Sparling Instruments,Inc. 783.17 Electrical Parts&Supplies H:\dep"fin\EXCEL.dta\220%PSHARE\Claims Paid Report\0 -MCIaims Paid Report-09.30.05 EXHIBIT B rni210nc Page 4 of 9 10/17/2005 o a Claims Paid From 09/16/05 to 09130/05 Warrant No. Vendor Amount Description 75111 St Croix Sensory,Inc. 630.00 Outside Lab Services 75112 Stanley Steamer International,Inc. 1,408.90 Carpet Cleaning Services 75113 Sunset Ford 361.54 Vehicle Parts&Service 75114 Sunset Industrial Parts 1,046.75 Mechanical Parts&Supplies 75115 Technical Service Group,Inc. 1,381.60 SCADA System VAX Service Agreement 75116 SCAP 100.00 Prog.Mgmt.Office&Employee Dev.&Tmg.Divisions Meeting/Training Registration 75117 SPAN International Training 650.00 Training Software-CD Rom&CHST Workbook 75118 SPEC Services,Inc. 18,999.21 Engineering Services J-33-1 75119 Terminix International 2,765.00 Pest Control 75120 Texas Analytical Controls,Inc. 2,561.20 Instrument Parts&Supplies 75121 The Walking Man,Inc. 525.00 Public Notice Printing&Mailing Services Various Projects 75122 Thomson-Barclay's 277.64 Books&Publications 75123 Times Community News 39.00 Notices&Ads 75124 Voided Check - - 75125 Southern California Trane Service 3.721.07 Compressor&Pump 75126 Trinity Consultants,Inc. 784.81 Software Maintenance 75127 Truck&Auto Supply,Inc. 1.313.63 Automotive Supplies 75128 TMOBILE 88.72 Wireless Services 75129 TMV Systems Engineering,Inc. 6,281.25 Software Services 75130 US Filter Corp. 967.08 Service Agreement-DI Water Systems at Plants 1&2 75131 Underground Service Alert of So.Calif. 2,182.40 Membership-Underground Utility Identification/Notification Service 75132 Union Bank of California 2,203.00 Annual Administrative Fees for Series 2003 Certificates of Participation 75133 The Unisource Corporation 8,258.23 Office Supplies 75134 United Pacific Services,Inc. 16,467.51 Landscape Maintenance at Plants 1 &2 and Pump Stations 75135 United Parcel Service 1,576.95 Parcel Services 75136 UC Regents 5,000.00 Professional Services-Environmental Strategic Process Study Research Project 75137 Valverde Construction,Inc. 11,836.00 Repairs 7-4-2A 75138 Varian,Inc. 59.78 Lab Parts&Supplies 75139 Verizon California 29.71 Telephone Services 75140 Victor Buick-GMC Truck 18,898.92 (1)2005/06 GMC Chevrolet Canyon Extended Cab Pick-Up Truck 75141 Vortex Industries,Inc. 747.13 Gate Repairs 75142 VWR Scientific Products Corporation 5,783.64 Lab Parts&Supplies 75143 The Wackenhut Corporation 4,236.14 Security Guards 75144 Wally Machinery and Tool Supply,Inc. 125.53 Mechanical Parts&Supplies 75145 Waxie Sanitary Supply 678.83 Janitorial Supplies 75146 Weather&Wind Instrument Co. 514.12 Wind Sock 75147 Western States Controls 1,081.47 Electrical Parts&Supplies 75148 WEFTEC 725.00 Training Registration 75149 Voided Check - - 75150 York International 374.86 Electrical Parts&Supplies 75151 California Bank&Trust 1,415.00 Construction J-33-1,Retention 75152 Orange Community Bank 3,293.00 Construction P2-82,Retention 75153 Torrey Pines Bank 10,143.90 Construction P1-76,Retention 75154 Voided Check - 75155 Voided Check - 75156 Voided Check 75157 Voided Check 75158 Voided Check - 75159 Voided Check - H:ldepllknlEXCEL.dta12201APSHARE1Claims Paid Reportk05.061CIaims Paid Report-09.30-05 EXHIBIT B rinf21011c Page 5 of 9 10117n005 Claims Paid From 09/16/05 to 09/30/05 Warrant No. Vendor Amount Description 75160 Voided Check - 75161 Voided Check - 75162 Voided Check - 75163 Voided Check - 75164 Voided Check - 75165 Court Order 597.50 Wage Garnishment 75166 Layne T.Baroldi 232.90 Meeting/Training Expense Reimbursement 75167 Chris A.Cervellone 450.00 Meeling/Training Expense Reimbursement 75168 Martin A.Dix 405.00 Meeting/Training Expense Reimbursement 75169 Dean M.Fisher 555.00 Meeting/Training Expense Reimbursement 75170 Mark H.Kawamoto 150.00 Meeting/Training Expense Reimbursement 75171 John Mirkovich 54.50 Meeting/Training Expense Reimbursement 75172 Edmund L.Pendleton 99.00 MeetingtTraining Expense Reimbursement 75173 Mandrick S.Taylor 150.00 Meeting/Training Expense Reimbursement 75174 Robyn A.Wilcox 150.00 Meeting/Training Expense Reimbursement 75175 Ruiz,Stephanie&Dell 1,876.41 Employee Computer Loan Program 75176 James W.Silva 764.41 Meeting/Training Expense Reimbursement 75177 Basic Chemical Solutions 39,722.70 Sodium Bisulfte&Sodium Hydroxide 75178 Brown&Caldwell 156,664.48 Professional Services P2-91 75179 City of Fullerton 44,098.00 Water Use 75180 Eco Oxygen Technologies,L.L.C. 94.500.00 Professional Services-Superoxygenation in Collection System Design&Testing 75181 J R Filanc Construction 183.802.08 Repairs&Maintenance Service-Media Repacking of(18)Scrubbers at Plts.1&2 75182 Orange County Water District 185,535.50 GAP Water Use 75183 Southern California Edison 595,405.23 Power 75184 Ace Ergonomics 1.500.00 Professional Services-Ergonomic Workstation Evaluations 75185 Air Products&Chemicals 24,500.00 O&M Agreement Oxy.Gen.Sys.MO 8-8-89 75186 Allied Packing&Rubber,Inc. 177.31 Mechanical Parts&Supplies 75187 Augusta Engineering 2,187.18 Training Registration 75188 Autodesk UniversitylEnterprise Events 1,395.00 Training Registration 75189 AQHI,Inc. 1,200.00 Repairs&Maintenance Service-Flooring Removal 75190 American Telephone&Telegraph Corp. 25.74 Telephone Service 75191 City of Fountain Valley 805.00 Fire Department Permit Fee 75192 Court Order 150.00 Wage Garnishment 75193 Compressor Components of California 1,413.15 Repairs&Maintenance Services-LSVB 75194 Consumers Pipe&Supply Co. 987.64 Plumbing Parts&Supplies 75195 County of Orange 150.00 Wage Garnishment 75196 County of Orange-Auditor Controller 1,914.00 Encroachment Permit-7-36 75197 County of Orange-Auditor Controller 1,042.00 Encroachment Permit-7-36 75198 County of Orange-Auditor Controller 1,953.00 Encroachment Permit-7-36 75199 County of Orange-Auditor Controller 2,491.00 Encroachment Permit-741 75200 County of Orange-Auditor Controller 556.00 Encroachment Permit-7-36 75201 County of Orange-Auditor Controller 70.00 Encroachment Permit-2414 75202 County of Orange-Auditor Controller 17.50 Encroachment Permit-7-41 75203 County of Orange-Auditor Controller 5,280.50 Encroachment Permit-741 75204 County of Orange-Auditor Controller 384.00 Underground Storage Tank Modifications Fee-FE05-33 75205 CASA 75.00 Meeting Registration 75206 Center for Environmental Compliance 824.00 Training Registration 75207 CH2MHill 7,735.54 Professional Services J40-7 75208 CMAA 425.00 Training Registration(Construction Management Association of America) H:%dept1finlEXCEL.dta 220WPSHARE1Claims Paid Report105.WClaims Paid Report-09.30.05 EXHIBIT B rni21011c Page 6 of 9 10r1712005 o, - d Claims Paid From 09/16105 to 09130/05 Warrant No. Vendor Amount Description 75209 CMAA 1,395.00 Training Registration&Membership 75210 Department of Child Support Services 188.50 Wage Garnishment 75211 Doug Horwood Supply 79.50 Repairs&Maintenance Services-Purchasing Lobby Time&Date Clock 75212 Employee Benefits Specialists,Inc. 9,550.82 Reimbursed Prepaid Employee Medical&Dependent Care 75213 Employers Group 920.00 Training Registration 75214 Employment Development Dept. 44.00 State Unemployment Tax 75215 Environmental Management Consulting 3,780.00 Professional Services-Chlorination Study Phase 2 75216 Court Order 445.00 Wage Garnishment 75217 Excel Visual Communications 406.75 Training Supplies 75218 ENS Resources,Inc. 10,000.00 Professional Services-Legislative Advocate 75219 Stearns Bank N.A. 3,958.49 Hydrochloric Acid 75220 ESRI,Inc. 1.350.00 Training Registration 75221 FedEx Corporation 381.42 Freight Services 75222 Franchise Tax Board 50.00 Wage Garnishment 75223 Franklin Covey 72.17 Office Supplies 75224 Great Western Sanitary Supplies 258.88 Janitorial Supplies 75225 GTSI Corporation 4,767.94 Computer Hardware/Software-Panasonic CF18 Tablet 75226 Hach Go Ponton Industries 257.67 Lab Parts&Supplies 75227 Hagemeyer North America 137.77 Prescription Safety Glasses 75228 High Impact Priority Training 960.00 On-Site Training-Boom Lift&Scissor Lift 75229 Hope Health/IHAC 529.79 Wellness Newsletter 75230 Industrial Distribution Group 150.85 Rope 75231 Internal Revenue Service 125.00 Wage Garnishment 75232 Intl.Union of Oper.Eng.AFL-CIO Local 501 4,585.75 Dues Deduction 75233 Irvine Ranch Water District 43.37 Water Use 75234 J&B Auto Parts 408.31 Auto Parts&Supplies 75235 Kleinfelder,Inc. 140.00 Professional Services 5-52 75236 League of California Cities 50.00 General Management Division Meeting Registration 75237 Lindborg,Mead,Drill&Pezzillo,L.L.P. 4,270.00 Professional Services-Construction Management Training Program 75238 Luedtke Crane Systems,L.L.C. 550.88 Repairs&Maintenance Services-V-505 75239 LINJER 4,956.26 Professional Service-DART MO 9-22-99 75240 Matheson Tri Gas,Inc. 1,620.70 Specialty Gases 75241 Mayer,Brown,Rowe&Maw,L.L.P. 5,000.00 Professional Services-Strategic Planning&Advocacy 75242 Midway Mfg&Machining Co. 1,450.00 Mechanical Parts&Supplies-Impeller Shaft Assembly 75243 Court Order 225.00 Wage Garnishment 75244 Motion Industries,Inc.CA 55 180.76 Motor 75245 Municipal Water Dist.of Orange County 5,000.00 Membership 75246 National Bond&Trust 2,927.03 U.S.Savings Bonds Payroll Deductions 75247 Neal Supply Co. 8.42 Plumbing Supplies 75248 Neutron Products,Inc. 3,562.39 Anionic Polymer 75249 OneSource Distributors,Inc. 158.16 Electrical Parts&Supplies 75250 Orange County Sheriff 85.00 Wage Garnishment 75251 OCEA 650.54 Dues Deduction 75252 P.L.Hawn Company,Inc. 245.50 Electrical Parts&Supplies 75253 Peace Officers Council of CA 1,620.00 Dues Deduction,Supervisors&Professionals 75254 Pacific Supply 42.43 Transmission Filter 75255 Quest Software 2,061.68 Software Maintenance Agreement 75256 Rockwell Engineering&Equipment Co. 1,874.92 Motor and Parts 75257 Royale Cleaners 6.00 Dry Cleaning Services H:ldeptlfin\EXCEL.dta1220WPSHARE\Clatms Paid Report105.061Claims Paid Report-09-30.05 EXHIBIT B rm210nc Page 7 of 9 10/17/2005 Claims Paid From 09/16105 to 09/30105 Warrant No. Vendor Amount Description 75258 RPM Electric Motors 3,542.57 Motor Repairs 75259 Safetycare,Inc. 269.37 Safety Videos 75260 Schneider Automation,Inc. 3,404.90 Software Maint.Agreement 75261 Court Order 721.50 Wage Garnishment 75262 Southern California Edison 32.48 Power 75263 Southern Counties Oil.Co. 17,617.56 Diesel Fuel 75264 Summit Steel 675.68 Metal 75265 SBC 961.31 Telephone Services 75266 SBC Long Distance 1,676.42 Long Distance Telephone Services 75267 SBC/MCI 14.54 Telephone Services 75268 SCAP 140.00 Training Registration 75269 SETAC 630.00 Training Registration 75270 Stratus Environmental,Inc. 535.00 Repairs&Maintenance-Install Well Covers&Gaskets 75271 Systems Solution Company 374.97 Security System Access System Card Reader 75272 The Centre for Organization Effectiveness 5,816.50 Prof.Serv.-Culler Assessment of Organization Improvement Program 75273 Tony's Lock&Safe Service&Sales 1.871.15 Locks&Keys 75274 United Parcel Service 50.01 Parcel Services 75275 United Way 195.00 Employee Contributions 75276 Verizon California 80.20 Telephone Services 75277 VWR Scientific Products Corporation 247.92 Lab Parts&Supplies 75278 WEF 139.00 Membership-Water Environment Federation 75279 Court Order 597.50 Wage Garnishment 75280 County of Orange-Auditor Controller 384.00 Underground Storage Tank Modification Fee-FE05-34 75281 Teotimo C.Albia 54.50 Meeting/Training Expense Reimbursement 75282 Jeffrey L.Armstrong 490.00 Meeting/Training Expense Reimbursement 75283 Thomas M.Blanda 201.87 Meeting/Training Expense Reimbursement 75284 Kelly J.Christensen 125.40 Meeting/Training Expense Reimbursement 75285 County of Orange-Auditor Controller 384.00 Underground Storage Tank Modification Fee-FE05-32 75286 Jerry F.Evangelista 983.33 Meeting/Training Expense Reimbursement 75287 Kymberly R.Forman 140.06 Meeting/Training Expense Reimbursement 75288 Robert P.Ghirelli 777.85 Meeting/Training Expense Reimbursement 75289 Tod E.Haynes 450.00 Meeting/Training Expense Reimbursement 75290 Dale O.Henderson 179.62 Meeting/Training Expense Reimbursement 75291 Mike J.Herrera 142.61 Meeting/Training Expense Reimbursement 75292 Mark H.Kawamoto 157.65 Meeting/Training Expense Reimbursement 75293 Jeffrey L.Key 104.00 Meeting/Training Expense Reimbursement 75294 Paul Krzysiak 359.83 MeetinglTraining Expense Reimbursement 75295 Court Order 1,469.72 Wage Garnishment Refund 75296 Samuel L.Mowbray 1,043.29 Meeting/Training Expense Reimbursement 75297 Mark Mutz 183.53 Meeting/Training Expense Reimbursement 75298 James D.Niswonger 179.62 Meeting/Training Expense Reimbursement 75299 Fred J.O'Brien 102.23 Meeting/Training Expense Reimbursement 75300 Jamiann Questa 325.01 Meeting/Training Expense Reimbursement 75301 Rory Rea 54.50 Meeting/Training Expense Reimbursement 75302 Roy J.Reynolds 110.66 Meeting/Training Expense Reimbursement 75303 Jeremy J.Saum 1,836.45 Meeting/Training Expense Reimbursement 75304 Jane H.Tran 432.78 Meeting/Training Expense Reimbursement 75305 Charles F.Winsor 202.52 Meeting/Training Expense Reimbursement 75306 Paula A.Zeller 447.70 Meeting/Training Expense Reimbursement H:\deptkrinkEXCEL.dtaX220\APSHARE\Claims Paid Report\05-06\Claims Paid Report-0930-05 EXHIBIT B Gn/210nc Page 8 of 9 10/17/2005 v Claims Paid From 09/16/05 to 09/30/05 Warrant No. Vendor Amount Description 75307 County of Orange-Auditor Controller 384.00 Underground Storage Tank Modification Fee-FE05-29 75308 The Burlington Northern&Santa Fe 1,000.00 Temporary Occupancy Permit Fee-Truck Hauling Route to Santa Ana Riverbed 75309 Wild Rivers Waterpark 1,909.00 Reimbursed Employee Activity Expense 75310 Tony's Lock&Safe Service&Sales 202.03 Locks&Keys 75311 Heritage Escrow Company 75,000.00 North County Yard Purchase 1 st Installment Total Accounts Payable-Warrants S 15,724,690.37 Payroll Disbursements 38855- 38857 Employee Paychecks $ 974.52 Interim Payroll Adjustments 09/20/05 38858 38943 Employee Paychecks 152,855.52 Biweekly Payroll 09/28/05 38944 - 38950 Employee Paychecks 17,64223 Termination,Void/Reissue,Retros&Idea Payroll Checks 09/27/05 116727- 117277 Direct Deposit Statements 1,114,478.03 Direct Deposit Statements 09/28/05 Total Payroll Disbursements S 1,285,950.30 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 651,606.51 Biweekly Payroll 09/28/05 US Bank 456.864.48 Series 2000 A&B Refunding COP's September Interest Payment Total Wire Transfer Payments $ 1,108,470.99 Total Claims Paid 09/16/05-09/30/05 $ 18,119,111.66 H:\depl\fn\EXCEL.dta\220\APSHARE\Claims Paid Report\05-06\Claims Paid Report-09-30-05 EXHIBIT B fint210Rc Page 9 of 9 10117n005 BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 11/16/05 AGENDA REPORT Item Number Item Number 8 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer 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 10/01/05 to 10/15/05 and 10/16/05 to 10/31/05 C:\Documents and Settings\kawai\Local Settings\Temporary Internet Files\0LK72\Item 8 ClaimsPaid.doc Revised: 06/04/03 Claims Paid From 10101/05 to 10/15/05 Warrant No. Vendor Amount Description Accounts Payable-Warrants 75312 Black&Veatch Corporation 576.020.34 Professional Services P1-102&J-100 75313 Brown&Caldwell 494.202.15 Professional Services P1-37,132-90,&CMOM/WDR 75314 California Soil Products 124,742.71 Residuals Removal MO 3-29-95 75315 Camp Dresser&Mckee,Inc. 428.001.35 Engineering Service J-71-8 75316 City of Fountain Valley 33.381.40 Water Use 75317 Earth Tech,Inc. 229,240.38 Engineering Services P1-100 75318 Hill Brothers 28.814.26 Chemicals-Odor&Corrosion Control-Newport Trunkline 75319 HDR Engineering,Inc. 113.143.30 Professional Services P1-82 75320 Kemiron Companies,Inc. 111.200.01 Ferric Chloride MO 9-27-95 75321 Lee&Ro,Inc. 32.616.54 Professional Services 5-49 75322 Malcolm Pirnie,Inc. 455,320.58 Professional Services P2-80,J-79&11-26 75323 MWH Americas,Inc. 66,601.84 Professional Services J-101 75324 Nalco Company 32,044.43 Anionic Polymer Tote 75325 Pioneer Americas,Inc. 203,064.03 Sodium Hypochlorite 75326 Polydyne,Inc. 43.273.43 Cationic Polymer MO 3-11-92 75327 Southern California Edison 78,090.19 Power 75328 Synagro Technologies,Inc. 258,978,80 Residuals Removal MO 3-29-95 75329 Tule Ranch Magan Farms 270,581.96 Residuals Removal MO 3-29-95 75330 US Metro Group,Inc. 29,222.50 Janitorial&Floor Maintenance at Plants 1 &2 75331 US Peroxide,L.L.C. 50,764.17 Odor&Corrosion Control Treatment for Call.Sys.;Hydrogen Peroxide 75332 Woodruff Spradlin&Smart 87,067.00 Legal Services MO 7-26-95 75333 ARB,Inc. 1,248,757.20 Construction 7-41,Retention 75334 Kiewit Pacific Co. 337,500.00 Construction 5-52 75335 Union Bank of California 138,750.80 Construction 741 &7-36,Retention 75336 Wells Fargo Bank 37,500.00 Construction 5-52,Retention 75337 American Telephone&Telegraph Corp. 251.50 Long Distance Telephone Service 75338 Accutite Fasteners,Inc. 234.73 Mechanical Parts&Supplies 75339 Advance Business Graphics 214.69 Printing Services-Business Cards 75340 Air Liquide America Corporation 1,081.66 Specialty Gases 75341 Airgas Safety,Inc. 628.45 Safety Supplies 75342 Alfa Laval,Inc. 1,450.00 Repairs&Maintenance Service-Alarm Panel 75343 Allen Instruments&Supplies 223.70 Repairs&Maintenance Service-GPS Unit 75344 Alta Robbins,Inc. 119.83 Instrument Supplies 75345 American Airlines 4.846.50 Travel Services 75346 American Payroll Association 743.00 Training Registration 75347 American Training Resources,Inc. 538.31 Safety Videos 75348 Aquarium of the Pacific 179.30 Reimbursable Employee Activity Expense 75349 Aquatic Biosystems,Inc. 200.00 Lab Analyses 75350 Arch Wireless 1,233.63 Paging Service-Airtime,Service&Equipment 75351 Awards&Trophies Company 229.05 Awards&Trophies 75352 AKM Consulting Engineers 3,707.28 Professional Services 7-41 75353 AASE 140-00 Membership(American Society of Safety Engineers) 75354 ATCC 429.50 Lab Parts&Supplies 75355 Bar Tech Telecom Incorporated 6.583.85 Telephone Parts&Supplies 75356 Basic Chemical Solutions,L.L.C. 14,265.83 Sodium Bisulfile&Sodium Hydroxide 75357 Basler Electric Company Department 590 2,726.07 Electrical Parts&Supplies H:\dept\rn\EXCEL.dtaQ20\APSHARE\Claims Paid ReporA05-06\Claims Paid Report-10-15-05 EXHIBIT A fiN210/tc Page 1 of 8 11/7/2005 Claims Paid From 10/01105 to 10/15/05 Warrant No. Vendor Amount Description 75358 Battery Specialties 71.89 Batteries 75359 Bee Man Pest Control,Inc. 195.00 Pest Control 75360 Ben Meadows Company,Inc. 547.75 Lab Parts&Supplies 75361 Bootworld 4,634.23 Mobile Safety Shoe Service 75362 Bluescape Environmental 249.00 Training Registration 75363 BMC Business Machines Consultants,Inc. 509.87 Multifunctional Copier/Scanner Maintenance Agreement&Supplies 75364 Branom Instrument Co. 158.50 Instrument Parts&Supplies 75365 Brightstar Solutions,Inc. 525.00 Training Registration 75366 CSUF Foundation 11,369.50 Membership-Center for Demographic Research 75367 California Hazardous Services,Inc. 350.00 Fuel Tank Cleaning 75368 Cardlock Fuel Systems,Inc. 21,347.71 Fuel Card Program-District Vehicles&Monitoring Vessel 75369 Casual Gourmet 135.55 Meeting Expenses 75370 Carolyn V.Cavecche 643.41 MeetingfTraining Expense Reimbursement 75371 Charts,Inc. 106.40 Charts 75372 Computer Protection Technology,Inc. 9,862.50 Computer Maint_Agreement 75373 Computer Sciences Corp. 3,425.84 Consulting&Lab Services-Assay Pilot Project 75374 Conrad&Associates,L.L.P. 13,728.00 Financial Auditing Services 75375 Consolidated Electrical Distributors,Inc. 4,221.28 Electrical Parts&Supplies 75376 Consumers Pipe&Supply Co. 817.29 Plumbing Parts&Supplies 75377 Cooper Cameron Corporation 1,608.08 Engine Supplies 75378 Corporate Express 715.10 Office Supplies 75379 County Wholesale Electric Co. 922.53 Electrical Parts&Supplies 75380 Culligan of Orange County 42.80 Maint.Agreement-Cen Gen Water Softener System 75381 Cal Partitions,Inc. 1,986.91 Supply&Installation of Desks,Partitions&Shelves 75382 CEM Corporation 182.71 Lab Parts&Supplies 75383 CEPA Company 1,499.14 Lab Equipment Maint.Service 75384 CMMA 1,515.00 Membership&Training(Construction Management Association of America) 75385 Controlled Motion Solutions 1,068.00 Mechanical Parts&Supplies 75386 CORRPRO Companies, Inc. 375.00 Professional Services-Corrosion Control 75387 CR&R,Inc. 315.00 Container Rentals 75388 Davids Tree Service 8,675.00 Tree Maint.Service 75389 Del Mar Analytical 1,760.00 Analysis of Biosolids 75390 Digiphoto 6.10 Photographic Services 75391 Dunn Edwards Corporation 25.90 Paint Supplies 75392 DHL Express USA,Inc. 18.77 Freight Services 75393 Dr.Harvey Goldstone 1,080.00 On-Site Safety Glasses Dispensing 75394 Ecology Control Industries 17,274.28 Hazardous Waste Disposal 75395 Electrical Reliability Services,Inc. 1,388.00 Professional Services P2-66 75396 Employee Benefits Specialists,Inc. 653.10 Reimbursed Prepaid Employee Medical&Dependent Care 75397 Enchanter,Inc. 500.00 Ocean Monitoring&Outfall Inspection&Maintenance 75398 The Energy Resource Institute 11,000.00 Professional Services-Trailer Mounted Scrubber Testing System 75399 Environmental Engineering&Contracting 12,000.00 Professional Services-Operator Training Course VI,Audits,&Reports 75400 Environmental Science Associate 2,725.21 Professional Services J-40-5 75401 Ewing Irrigation Industrial 261.90 Landscape Irrigation Parts&Supplies 75402 Environmental Compliance Inspection Service 960.00 Professional Services-Grease Interceptor Inspections-FOG Control 75403 Envirostrategies,L.L.C. 450.00 Environmental Scientific Consultant Re Kern County CIR1Litigation 75404 Express Lens Lab 2,008.95 Safety Glasses H:1dep11finlEXCEL.dla12201APSHARESClaims Paid ReportlOS-06lClaims Paid Report-10-15-05 EXHIBIT A fin1210Aa Page 2 of 8 1117r2005 E Claims Paid From 10/01105 to 10115/05 Warrant No. Vendor Amount Description 75405 Fedex Corporation 524.41 Freight Services 75406 First American Real Estate Solutions 435.25 On-Line Orange County Property Information 75407 Fisher Scientific 11,970.88 Lab Parts&Supplies 75408 Forkert Engineering&Surveying,Inc. 589.05 Professional Services 1-2-4 75409 Franklin Covey 76.67 Office Supplies 75410 Frys Electronics 132.47 Computer Supplies 75411 Farwest Corrosion Control Co. 1,833.30 Corrosion Monitor Parts 75412 G E Supply 5,284.67 Electrical Parts&Supplies 75413 Garland Manufacturing Co. 904.64 Mechanical Parts&Supplies 75414 Geomatrix Consultants,Inc. 10.435.00 Professional Services 7-41 75415 George T Hall 366.35 Electrical Parts&Supplies 75416 Goldenwest Window Service 720.00 Landscape Maintenance at Plt.2 75417 Grainger,Inc. 2,392.60 Electrical Parts&Supplies 75418 Guarantee Records Management 417.34 Off-Site Records Storage 75419 Governmental Accounting Standards Board 180.00 Publication 75420 GE Analytical Instruments,Inc. 3,375.00 Instrument Maintenance&Calibration Services 75421 Graphic Products,Inc. 432.65 Ribbon Cartridges/Cassettes 75422 Haaker Equipment Company 170.21 Misc.Vehicle,Parts,Repairs&Service 75423 Hach Company 561.75 Lab Parts&Supplies 75424 Harold Primrose Ice 80.00 Ice For Samples 75425 Harrington Industrial Plastics,Inc. 675.02 Plumbing Supplies 75426 Health Science Associates 77.50 Training Registration 75427 Home Depot 860.30 Misc.Repair&Maintenance Material 75428 Hopkins Technical Products 297.35 Pump Supplies 75429 City of Huntington Beach 13,709.14 Water Use 75430 Industrial Distribution Group 2.831.26 Mechanical Parts,Locks&Tools 75431 Industrial Metal Supply 608.48 Metal 75432 Industrial Threaded Products,Inc. 169.80 Mechanical Parts&Supplies 75433 Innerline Engineering 24,854.41 Video Inspections of Seweriine Segments for Damage,Infilitration&Illegal Connections 75434 Inorganic Ventures,Inc. 196.35 Lab Parts&Supplies 75435 Interstate Batteries of Cal Coast 346.63 Batteries for Vehicles&Carts 75436 Invensys Systems,Inc. 1,195.39 Instrument Parts&Supplies 75437 Irvine Ranch Water District 3.90 Water Use 75438 IPI Grammtech,Inc. 14,918.00 Software Maintenance Agreement 75439 JG Tucker and Son,Inc. 2,630.36 Traffic Safety Signs,Repairs/Maintenance Service,&Retrieval Device Certification 75440 Jamison Engineering Contractors,Inc. 23,879.84 Repairs&Maintenance Service-Slater Pump Sta.&Digester G Inspection 75441 John Bell Pool Service 310.00 Service Agreement-Admin.Bldg.Atrium Pond 75442 Johnson&Associates,L.L.C. 4,500.00 Professional Services-2005 Markel Study 75443 Johnstone Supply 665.00 Electrical Parts&Supplies 75444 Kleinfelder,Inc. 429.00 Professional Services 5-52 75445 Lehigh Valley Safety Supply Co.,Inc. 671.16 Mobile Safety Shoe Service 75446 Luccis Gourmet Foods,Inc. 31.87 Meeting Expense 75447 Lims/Letter 139.00 Subscription 75448 M J Schiff&Associates,Inc. 13.315.30 Engineering Services J-106 75449 Managed Health Network 1.043.68 Employees Assistance Program 75450 Mandic Motors 290.00 Towing Services 75451 Massmutual Michel Financial Group 299.88 Executive Disability Plan Premium H:ldeptlftnlEXCEL.dla1220VAPSHARE\Claims Paid ReportM-061Claims Paid Report-10.15.05 EXHIBIT A rn211011e Page 3 of 8 11nr2005 Claims Paid From 10/01/05 to 10/15/05 Warrant No. Vendor Amount Description 75452 Mc Junkin Corporation 472.57 Plumbing Supplies 75453 Mcmaster Carr Supply Co. 1.425.22 Mechanical&Electrical Parts&Supplies 75454 Mesa Consolidated Water Dist. 16.19 Water Use 75455 Michael Asner Consulting 1,500.00 Professional Services-Purchasing RFP Policies&Procedures Review 75456 Mid West Associates 10,819.41 Pump Supplies 75457 Monster,Inc. 4,995.00 Notices&Ads 75458 National Fire Protection Association 625.50 Subscription 75459 National Plant Services,Inc. 460.00 Vacuum Truck Services 75460 National Safely Council 589.90 Membership 75461 Neal Supply Co. 12.71 Plumbing Supplies 75462 Newark Electronics 873.20 Instrument Supplies 75463 Neutron Products,Inc. 7,148.22 Anionic Polymer 75464 Office Depot Business Services Div. 575.47 Office Supplies 75465 Omnimark Instrument Corp. 31.29 Repairs&Maintenance&Calibration Services 75466 Onesource Distributors,Inc. 2,271.30 Electrical Parts&Supplies 75467 Oracle Corp. 728.62 Software Support-Oracle Enterprise&Internet Developer Suite 75468 Orange Fluid System Technologies,Inc. 487.09 Plumbing Parts&Supplies 75469 Oxygen Service Company 2.751.54 Specialty Gases 75470 OCBS Reprographics 7,620.92 Printing Service-MO 1/26/00 75471 OI Analytical 453.64 Lab Parts&Supplies 75472 PL Hawn Company,Inc. 541.77 Electrical Parts&Supplies 75473 Pacific Mechanical Supply 3.720.86 Plumbing Supplies 75474 Parker Supply Company 2,637.39 Mechanical Parts&Supplies 75475 Patriot Video Productions 643.64 Video Editing Services 75476 Printerguy 4,496.84 Printer Maintenance 75477 Propipe 2,830.82 Video Inspection of Sewer Line Segments for Damage,Infiltrations&Illegal Connection 75478 Prudential Overall Supply 4,398.24 Uniforms&Related Articles 75479 Pumping Solutions,Inc. 237.23 Mechanical Parts&Supplies 75480 PCG Industries 1,700.00 Repair&Maintenance Services-Shaft 75481 PCS Express,Inc. 122.00 Courier Service 75482 Project Management Institute,Inc. 2,100.00 Training Registration 75483 PS TEK,L.L.C. 1,124.55 Filter Element 75484 R L Abbott&Associates 3,000.00 Kern County Biosolids Consulting Services 75485 Red Wing Shoes 17,963.42 Safety Shoes 75486 Rees Scientific 2,823.23 Lab Instrument Parts&Installation 75487 Restek Corporation 200.97 Lab Parts&Supplies 75488 RBF Consulting 1,234.21 Engineering Services 5-51 75489 RD Instruments 1,163.70 Lab Parts&Supplies 75490 RM Automation Go RM Controls 61.15 Instrument Supplies 75491 IRS Hughes Co.,Inc. 155.00 Paint Supplies 75492 Safety Kleen 160.89 Parts,Washer Lease,&Service 75493 Sancon Engineering,Inc. 16,925.00 Professional Services-PVC Pipe Rehabilitation&Pump Out(3)Air Jumpers 75494 Schwing America,Inc. 4,081.10 Pump Parts&Supplies 75495 City of Seal Beach Finance Dept. 147.28 Water Use 75496 Seaventures 1,900.00 Vessel&Support Services for Water Quality Monitoring 75497 Shamrock Supply Co.,Inc. 3,602.81 Concrete&Simple Green Cleaner/Degreaser 75498 Shureluck Sales&Engineering 285.02 Grease&Lubricants H:ldeptlfn\EXCEL.dla12201APSHAREIClaims Paid Reportl05-061Claims Paid Report-10-15.05 EXHIBIT A fin/210/lc Page 4 of 8 11r7r2005 b ' Claims Paid From 10101/05 to 10/15/05 Warrant No. Vendor Amount Description 75499 Siemens Building Technologies,Inc. 1,427.06 Repairs&Maintenance Services-Admin.Bldg.Automation System 75500 Supelco,Inc. 5,581.90 Lab Parts&Supplies 75501 Smith Emery Company 1,363.56 Professional Services P1-37 75502 SoftChoice Corp. 5,122.53 Software 75503 Source Graphics 635.73 OCE Wide Format Copier/Prinler Repairs&Maintenance Service 75504 South Coast Air Quality Management Dist. 220.29 Annual Emission,Operating&Misc.Fees 75505 South Coast Air Quality Management Dist. 81.89 Annual Emission,Operating&Misc.Fees 75506 South Coast Air Quality Management Dist. 2,312.01 Annual Emission,Operating&Misc.Fees 75507 St Croix Sensory,Inc. 7.631.00 Outside Lab Olfactometry Testing Services 75508 Summit Steel 409.70 Metal 75509 Sunset Industrial Parts 74.33 Mechanical Parts&Supplies 75510 SBC 1,299.60 Telephone Services 75511 SBC/MCI 2,844.92 Telephone Services 75512 South Coast Environmental Co. 11,490.18 Cen Gen Emissions Testing Service 75513 Tasco Pacific Fire Protection 4,280.00 Repairs&Maintenance Services-Overhead Fire Sprinkler 6"Supply Line in Bldg.2 75514 Techno Coatings 2,970,00 Painting Services-Maintenance Bldg. 75515 Terminix International 50.00 Pest Control 75516 The Walking Man,Inc. 525.00 Public Notice Printing&Mailing Services Various Projects 75517 Thermo Electron Corp. 2,885.55 Lab Parts&Supplies 75518 Thompson Industrial Supply,Inc. 1.648.22 Mechanical Parts&Supplies 75519 Time Warner Communication 51.07 Cable Services 75520 Tonys Lock&Safe Service&Sales 11,222.42 Cyberlock Padlocks&Keys,and Misc.Locks&Keys 75521 Townsend Public Affairs 5,000.00 Legislative&Executive Advocate for Grant Funding 75522 Truck&Auto Supply,Inc. 451.62 Automotive Supplies 75523 TYCO Valves&Controls,L.P. 179.95 Mechanical Parts&Supplies 75524 Teledyne ISCO c/o MRC Technologies 223.25 Mechanical Parts&Supplies 75525 Thermo Electron Corp.-Informatics Div. 12,051.00 Software-Atlas 75526 US Filter Corp. 116.37 Service Agreement-DI Water Systems at Plants 1&2 75527 United Parcel Service 20.26 Parcel Services 75528 Verizon California 711.16 Telephone Services 75529 Vemes Plumbing 2,296.00 Installation of Piping&Backflow Device 75530 Vortex Corp. 418.60 Door Repairs-Laboratory Metal Doors 75531 VWR Scientific Products 7,690.92 Lab Parts&Supplies 75532 The Wackenhut Corporation 8,344.51 Security Guards 75533 Waxie Sanitary Supply 53.01 Janitorial Supplies 75534 West Lite Supply Company,Inc. 293.63 Electrical Parts&Supplies 75535 WEF 1.327.00 Membership-Water Environment Federation 75536 Xerox Corporation 14.323.21 Copier Leases 75537 Yale/Chase Materials Handling,Inc. 2,224.82 Automotive Parts&Supplies 75538 1-800-Conference(R) 421.34 Conference Telephone Calls 75539 3D Instruments,L.L.C. 1,697.50 Instrument Parts&Supplies 75540 Martin G.England 1,395.00 Meeting/Training Expense Reimbursement 75541 City of Fountain Valley 210.00 Fire Permit Application Fee-FE05-30&FE05-31 75542 Orange County Sanitation District 1,696.50 Petty Cash Reimb. 75543 American Express 25,303.61 Purchasing Card Program,Misc.Supplies&Services 75544 Dell Computer 37,365.98 (40)Personal Computers&Optical Mouses 75545 Earth Tech,Inc. 46,522.44 Professional Services P2-79 H:IdeptlfinlEXCEL.dla1220WPSHAREICIaims Paid Reportl05-06I0aims Paid Report-10-15-05 EXHIBIT A fin1210Ac Page 5 of 8 11M2005 Claims Paid From 10/01/05 to 10115105 Warrant No. Vendor Amount Description 75546 Metlife Life Insurance Company 32,696.21 Group Life,Manager Add'I.Life,Short&Long-Term Disability,&Vol.Term Life 75547 Midway Mfg.&Machining Co. 30,417.83 Mechanical Parts&Supplies 75548 NALCO Company 31,626.27 Anionic Polymer 75549 Spartan Pumping 49,496.83 (2)Trailer-Mounted 4"Diesel Self-Priming Pumps 75550 Water Environment Research Foundation 81,190.00 Annual Utility Membership 75551 Advance Business Graphics 1,357.44 Business Cardsfremplates 75552 Airgas Safety,Inc. 767.33 Safety Supplies 75553 Allen Campbell 2,095.15 Reconciliation User Fee Refund Program 75554 Arch Wireless 1,254.54 Paging Service-Airtime,Service&Equipment 75555 Aspen Publishers,Inc. 255.56 Publication 75556 AKM Consulting Engineers 3,641.40 Professional Services 7-41 75557 Basic Chemical Solutions,L.L.C. 19,297.11 Sodium Bisulfite&Sodium Hydroxide 75558 Basler Electric Company 8,027.57 On-Site Training-Voltage Control Regulation Training 75559 Black&Veatch Corporation 14,333.79 Engineering Services J-77 75560 Bush&Associates,Inc. 12,586.00 Professional Services 7-39&741 75561 Center For Creative Growth 2,500.00 Professional Services-O&M Management Coaching 75562 Christina Vasquez 1,073.50 Reconciliation User Fee Refund Program 75563 Cingular Wireless 780.69 Wireless Services 75564 Court Order 150.00 Wage Garnishment 75565 Compressor Components of California 1,365.00 Repairs&Maintenance-Rebuild(32)Pilot Fuel Valves 75566 Consumers Pipe&Supply Co. 2.44 Plumbing Parts&Supplies 75567 Cooper Cameron Corporation 2,183.34 Engine Supplies 75568 Corporate Express 15.86 Office Supplies 75569 County of Orange 150.00 Wage Garnishment 75570 County of Orange Auditor Controller 1,050.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments/Cancellations 75571 Delta Packaging Products,Inc. 145.51 Lab Parts&Supplies 75572 Department of Child Support Services 188.50 Wage Garnishment 75573 Dionex Corporation 6,093.75 Lab Parts&Supplies 75574 Electra Bond,Inc. 6,405.74 Repairs&Maintenance Services 75575 Employee Benefits Specialists,Inc. 9,508.51 Reimbursed Prepaid Employee Medical&Dependent Care 75576 Court Order 445.00 Wage Garnishment 75577 Fedex Corporation 358.54 Freight Services 75578 Filtedine Corporation 334.18 Filters 75579 Fisher Scientific Company,L.L.C. 162.49 Lab Parts&Supplies 75580 Forkert Engineering&Surveying,Inc. 6,002.70 Engineering Services 132-66 75581 Franchise Tax Board 50.00 Wage Garnishment 75582 Frys Electronics 280.10 Computer Supplies 75583 City of Fullerton 172.10 Water Use 75584 Gierlich Mitchell,Inc. 2,884.21 Mechanical Parts&Supplies 75585 City of Huntington Beach 41.34 Water Use 75586 Internal Revenue Service 125.00 Wage Garnishment 75587 Intl.Union Of Oper.Eng.AFL CIO Local 501 4.561.50 Dues Deduction 75588 Lee&Ro,Inc. 3,337.23 Professional Services 549 75589 Medlin Controls Co. 1,187.65 Instrument Supplies 75590 Court Order 225.00 Wage Garnishment 75591 National Bond&Trust 2,831.13 U.S.Savings Bonds Payroll Deductions 75592 National Filter Media Corporation 13,845.98 Filter Press Belts H:1dep11finlEXCEL.dla1220WPSHAREhClaims Paid Reporll05-061Clahs Paid Report-10.15.05 EXHIBIT A rnn10nc Page 6 of 8 1117/2005 Claims Paid From 10/01/05 to 10/15105 Warrant No. Vendor Amount Description 75593 Onesource Distributors,Inc. 239.58 Electrical Parts&Supplies 75594 The Orange County Register 5,890.64 Notices&Ads 75595 Orange County Sheriff 85.00 Wage Garnishment 75596 Orange Fluid System Technologies,Inc. 281.11 Plumbing Parts&Supplies 75597 ORCO Construction Supply 245.74 Marking Paint 75598 Oxygen Service Company 120.70 Specially Gases 75599 OCB Reprographics 65.08 Printing Service-MO 1/26/00 75600 OCEA 650.54 Dues Deduction 75601 Parker Supply Company 7,336.74 Mechanical Parts&Supplies 75602 Parsons Water&Infrastructure,Inc. 18,585.00 Professional Services J-35-1 75603 Peace Officers Council of CA 1,602.00 Dues Deduction,Supervisors&Professionals 75604 PCG Industries 3,100.00 Repair&Maintenance Services-Pump Shaft 75605 R&R Instrumentation,Inc. 343.78 Instrument Maintenance 75606 Red Valve Company,Inc. 1,529.15 Mechanical Parts&Supplies 75607 RMS Engineering&Design,Inc. 18.930.00 Engineering Services J-96 75608 Shamrock Supply Co.,Inc. 1,049.14 Simple Green Cleaner/Degreaser 75609 Shureluck Sales&Engineering 1,010.35 Mechanical Parts&Supplies 75610 Court Order 721.50 Wage Garnishment 75611 Southern California Edison 8,047.10 Power 75612 Summit Steel 820.87 Metal 75613 Sunset Industrial Parts 47.97 Mechanical Parts&Supplies 75614 SSG 1,610.48 Telephone Services 75615 SBC/MCI 38.67 Telephone Services 75616 Sideshow Network Dba Marcom Interactive 159.20 Public Information Office Meeting Registration 75617 Thomas Springston 1,073.50 Reconciliation User Fee Refund Program 75618 Thomas V.Gerlinger 4,550.00 Lab Analyses 75619 Truck&Auto Supply,Inc. 127.01 Automotive Supplies 75620 TMobile 266.26 Wireless Services 75621 United Pacific Services,Inc. 4,341.04 Landscape Maintenance-Pit. 1 75622 United Way 195.00 Employee Contributions 75623 Vapex,Inc. 2.499.00 Pump Parts&Supplies 75624 VWR Scientific Products Corporation 46.87 Lab Parts&Supplies 75625 West Coast Life 2,983.00 Annual Life Insurance-Robert Ghirelli 75626 Wincan America,Inc. 4.300.00 Software&On-Line Training-WINCAN Office Software 75627 Court Order 597.50 Wage Garnishment 75628 Bon Air,Inc. 17.131.00 Construction FE02-62 75629 Juan J.Ambriz 149.07 Meeting/Training Expense Reimbursement 75630 Sergio A.Aranela 325.27 Meeting/Training Expense Reimbursement 75631 Michael Bolster 451.10 Meeting/Training Expense Reimbursement 75632 James Cabral 369.36 Meeting/Training Expense Reimbursement 75633 William D.Cassidy 482.86 Meeting/Training Expense Reimbursement 75634 Matthew Cetera 222.47 Meeting/Training Expense Reimbursement 75635 Corina M.Chaudhry 140.00 Meeting/Training Expense Reimbursement 75636 Peter Cheffs 262.47 Meeling/Training Expense Reimbursement 75637 James E.Colston 328.07 Meetingffraining Expense Reimbursement 75638 Ronald L.Dewitt,Jr. 178.82 Meeting/Training Expense Reimbursement 75639 Allan P.Dumlao 509.41 Meeting/Training Expense Reimbursement H:VdeptlrinlEXCEL.dla\220WPSHAREICIaims Paid Reportt05-06\Claims Paid Report-10-15-05 EXHIBIT A en/210nc Page 7 of 8 11nr2005 Claims Paid From 10101/05 to 10/15/05 Warrant No. Vendor Amount Description 75640 John B.Falkenstein 100.00 Meeting/Training Expense Reimbursement 75641 Richard Gallegos 663.78 Meeting/Training Expense Reimbursement 75642 Larry E.Lazorek 426.97 Meeting/Training Expense Reimbursement 75643 Vincent S.Lockyer 367.65 Meeting/Training Expense Reimbursement 75644 David A.Ludwin 729.45 Meeting/Training Expense Reimbursement 75645 Anthony P.Monary 423.86 Meeting/Training Expense Reimbursement 75646 Padilla,Gilbert 331.07 Meeting/Training Expense Reimbursement 75647 Jamiann Questa 159.47 Meeting/Training Expense Reimbursement 75648 Doug E.Rech 85.00 Meeling/Training Expense Reimbursement 75649 Johnny J.Rocha 263.62 Meeting/Training Expense Reimbursement 75650 Donald D.Simpson 104.01 Meeting/Training Expense Reimbursement 75651 Juanita M.Skillman 874.90 Meeting/Training Expense Reimbursement 75652 Shane A.Towns 200.47 Meeling/Training Expense Reimbursement 75653 Simon L.Watson 176.90 MeetinglTraining Expense Reimbursement 75654 Ryal L.Wheeler 304.08 MeetinglTraining Expense Reimbursement 75655 Ernest N.Yeboah 837.65 MeetingfTraining Expense Reimbursement Total Accounts Payable-Warrants $ 6,676,821.38 Payroll Disbursements 38951 - 38951 Employee Paycheck $ 1,636.58 Termination Payroll Check 10/04105 38952 - 39048 Employee Paychecks 137,535.61 Biweekly Payroll 10/12/05 30949 - 30955 Employee Paychecks 974.55 Retro&Idea Payroll Checks 10/13/05 117278 -117835 Direct Deposit Statements 1,097,659.11 Direct Deposit Statements 10/12/05 Total Payroll Disbursements $ 1,237,805.85 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 644,486.51 Biweekly Payroll 10/12/05 JP Morgan Chase Bank 138,508.06 Series 1993 Refunding COPS September Interest Payment Total Wire Transfer Payments $ 782,994.57 Total Claims Paid 10/01/05-10/15105 $ 8,697,621.80 H:ldeptlfn%EXCEL.dta1220APSHARE%Claims Paid Reportl05-MClaims Paid Report-10-15-05 EXHIBIT A fn1210nc Page 8 of 8 117/2005 Claims Paid From 10/16/05 to 10/31/05 Warrant No. Vendor Amount Description Accounts Payable-Warrants 75656 ADS Environmental Services, Inc. $ 27,525.00 Professional Services J-73-2 75657 AKM Consulting Engineers 25,125.00 Professional Services-Part-Time Dig Alert Technician 75658 Blue Cross of California 712,056.88 Medical Insurance Premium 75659 Brown&Caldwell 649,202.49 Professional Services P2-90 75660 Delta Dental 116,015.38 Dental Insurance Plan 75661 HDR Engineering,Inc. 169,764.92 Professional Services P1-101 &P1-82 75662 J R Filanc Construction 78,184.42 Corrosion Repairs at No.2 Surge Tower&Medium Repacking at Plants 1 &2 Scrubbers 75663 Kaiser Foundation Health Plan 137,336.06 Medical Insurance Premium 75664 Kemiron Companies,Inc. 77,020.42 Ferric Chloride MO 9-27-95 75665 Malcolm Pimie,Inc. 97,149.90 Professional Services J-79 75666 Material and Contract Services 25,172.00 Temporary Employment Services 75667 Occidental Energy Marketing,Inc. 97,842.50 Natural Gas for CenGen/CoGen 75668 Orange County Water District 5,853,398.04 Joint GWRS Project J-36 75669 Pioneer Americas,Inc. 257,697.83 Sodium Hypochlorite 75670 Polydyne,Inc. 27,915.68 Cationic Polymer MO 3-11-92 75671 So Cal Gas Company 38,481.14 Natural Gas 75672 TekSystems 25,240.00 Temporary Employment Services 75673 Tule Ranch/Magan Farms 261,362.51 Residuals Removal MO 3-29-95 75674 US Peroxide,L.L.C. 337,378.49 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 75675 Dalke&Sons Constructions,Inc. 96,238.76 Construction P2-66-2&J-88 75676 J F Shea Construction,Inc. 255,739.50 Construction J-77&J-35-1 75677 J R Filanc Construction 391,051.35 Construction P1-76 75678 Margate Construction,Inc. 256,531.00 Construction P1-37 75679 Morrow Meadows Corp. 140,671.00 Construction P2-47-3 75680 Absolute Standards,Inc. 509.00 Lab Parts&Supplies 75681 Accounting Options, Inc. 8.417.26 Temporary Employment Services 75682 Airgas Safety,Inc. 3,662.81 Safety Supplies 75683 Allied Packing&Rubber, Inc. 72.19 Mechanical Parts&Supplies 75684 American Fildelity Assurance Company 344.40 Employee Cancer Insurance 75685 American Society for Microbiology 164.00 Membership 75686 American Society of Civil Engineers 245.00 Membership 75687 Amtech Elevator Services 1,400.00 Elevator Maintenance 75688 Appleone Employment Service 6,900.03 Temporary Employment Services 75689 Aquarium Doctor 110.83 Human Resources Aquarium Service 75690 Aquatic Biosystems,Inc. 155.00 Lab Parts&Supplies 75691 Argos Technologies, Inc. 138.97 Lab Parts&Supplies 75692 American Telephone&Telegraph Corp. 66.84 Telephone Service 75693 James L.Burror 150.00 Meeting/Training Expense Reimbursement 75694 Basic Chemical Solutions 24,449.19 Sodium Bisulfite&Sodium Hydroxide 75695 BEG Building Electronic Controls,Inc. 760.00 Fire Alarm System Maintenance&Testing 75696 Ben Meadows Company,Inc. 153.00 Lab Parts&Supplies 75697 Biomerieux Vitek,Inc. 192.20 Lab Parts&Supplies 75698 BootWorld 4.588.00 Mobile Safety Shoe Service 75699 Brooks Instrument Division 659.82 Instrument Parts&Supplies 75700 C Temp,Inc. 693.57 Instrument Parts&Supplies 75701 California Special Districts 330.00 Training Registration H:\dept\fin\EXCEL.dta\2201APSHARE1CIaims Paid Report105-061CIaims Paid Report-10-31-05 EXHIBIT B fin/210Ac Page 1 of 8 1117/2005 Claims Paid From 10/16/05 to 10/31/05 Warrant No. Vendor Amount Description 75702 Richard A.Castillon 523.00 Meeting/Training Expense Reimbursement 75703 California Auto Collision 3,156.51 Vehicle Repairs-V489 75704 California Relocation Services,Inc. 270.00 Office Files Moving/Relocation Services 75705 Martin Boyer Co.,Inc.c/o Cambridge, Inc. 6,625.00 Prof.Services-Workers'Compensation Claims 75706 Cardlock Fuel Systems,Inc. 19,432.35 Fuel Card Program-District Vehicles&Monitoring Vessel 75707 Casual Gourmet 138.67 Meeting Expenses 75708 CCP Industries 4,496.13 Janitorial Supplies 75709 Columbia Analytical Services,Inc. 860.00 Analysis of Wastewater,Industrial Wastewater&Biosolids 75710 Compressor Components of California 7,568.00 Repairs&Maintenance Service-Cleaning&Testing 32 Coils,LSVB Ignition 75711 Consolidated Elect Distributors,Inc. 3,587.74 Electrical Parts&Supplies 75712 Consolidated Plastics Company 189.76 Lab Parts&Supplies 75713 Consolidated Reprographics 376.53 Printing Services 75714 Consumers Pipe&Supply Co. 578.24 Plumbing Parts&Supplies 75715 Control Techniques Drives,Inc. 570.28 Instrument Parts&Supplies 75716 Cooper Cameron Corporation 691.03 Engine Supplies 75717 Corelink Staffing Services,Inc. 4,729.20 Temporary Employment Services 75718 Corporate Express 7,149.42 Office Supplies 75719 County of Orange Auditor Controller 264.00 Hazardous Material Fee-Removal of Underground Storage Tank FE05-29 75720 County of Orange Auditor Controller 264.00 Hazardous Material Fee-Removal of Underground Storage Tank FE05-33 75721 County Wholesale Electric Co. 1,662.82 Electrical Parts&Supplies 75722 Crane Veyor Corp. 1,135.63 Maintenance Agreement-Qrtly. Inspection&Certification of Overhead Crane 75723 Culligan of Orange County 42.80 Maint.Agreement-Cen Gen Water Softener System 75724 CWEA Membership 200.00 Membership(Calif.Water Environment Assoc.) 75725 Davids Tree Service 1,100.00 Tree Maint.Service 75726 DDB Engineering, Inc. 1,375.00 Professional Services-Grant Management 75727 Del Mar Analytical 1.438.50 Analysis of Biosolids 75728 DGA Consultants, Inc. 3.532.00 Professional Services-CCTV Data Evaluation&Support 75729 Driver Alliant Insurance Service,Inc. 294.00 Excess Watercraft Insurance-Boston Whaler 75730 Dunn Edwards Corporation 585.38 Paint Supplies 75731 Dynalco Corp. 742.22 Calibrate&Install Batteries in Beta Monitors 75732 Ecology Control Industries 2,166.09 Hazardous Waste Disposal 75733 Edinger Medical Group,Inc. 400.00 Medical Screenings 75734 Employee Benefits Specialists,Inc. 1,260.70 Reimbursed Prepaid Employee Medical&Dependent Care 75735 Enchanter, Inc. 6,300.00 Ocean Monitoring&Outfall Inspection&Maintenance 75736 Environmental Resource Center 1,198.00 Training Registration 75737 Environmental Resource Association 1,493.27 Lab Parts&Supplies 75738 EQUAPAC 2,340.03 Hydrochloric Acid 75739 Ewing Irrigation Industrial 307.01 Landscape Irrigation Parts&Supplies 75740 Excal Visual Communications 934.75 Training Supplies 75741 Fedex Corporation 459.61 Freight Services 75742 Filterline Corporation 110.96 Filters 75743 First American Real Estate Solutions 487.00 On-Line Orange County Property Information 75744 Fisher Scientific Company,L.L.C. 6,374.35 Lab Parts&Supplies 75745 Five Star Metals,Inc. 725.00 Mechanical Parts&Supplies 75746 Fluor Enterprises,Inc. 16,116.74 Engineering Services J-84 75747 Foodcraft Coffee&Refreshment Services 1,310.43 Meeting Supplies 75748 Fountain Valley Paints, Inc. 332.95 Paint Supplies H:\deptlftn\EXCEL.dta\220\APSHARE\Claims Paid Report\05-061Claims Paid Report-10-31-05 EXHIBIT B fin/210nc Page 2 of 8 111712005 Claims Paid From 10/16/05 to 10131/05 Warrant No. Vendor Amount Description 75749 Franklin Covey 148.66 Office Supplies 75750 Frasco Profiles 701.50 Human Resources Background Checks 75751 Frys Electronics 65.09 Computer Supplies 75752 Garland Manufacturing Co. 1,037.01 Mechanical Parts&Supplies 75753 Garratt Callahan Company 5,467.99 Chemicals 75754 GE Multilin, Inc. 1,800.00 Training Registration 75755 George Yardley Co. 898.25 Electrical Parts&Supplies 75756 Gerhardts,Inc. 180.65 Spark Plug Wire 75757 Getinge Castle 1,096.00 Lab Instrument Repairs 75758 Government Finance Officers Association 318.75 Training Registration 75759 Goldenwest Window Service 3,925.00 Landscape Maintenance&Removal of Leaves from Pit. 1 Roofs 75760 Government Finance Officers Association 50.00 Publication 75761 Government Institutes,Inc. 71.79 Publication 75762 Grainger, Inc. 4,299.62 Electrical Parts&Supplies 75763 Guarantee Records Management 253.25 Off-Site Records Storage 75764 Hach Company c/o Ponton Industries 245.00 Instrument Recertification-Spectrophotometer 75765 Hagemeyer North America 60.13 Prescription Safety Glasses 75766 Harold Primrose Ice 120.00 Ice For Samples 75767 Harrington Industrial Plastics,Inc. 561.32 Valve 75768 Hatch&Kirk,Inc. 521.78 Valves 75769 Home Depot 1,607.92 Misc.Repair&Maintenance Material 75770 Hopkins Technical Products 4,751.16 Valves 75771 IECOC 50.00 Membership(Industrial Environmental Coalition of Orange County) 75772 Industrial Distribution Group 2,598.40 Mechanical Parts,Supplies&Tools 75773 Industrial Threaded Products,Inc. 4,872.20 Mechanical Parts&Supplies 75774 Inside EPA 970.00 Publication 75775 Int'I.Institute of Municipal Clerks 100.00 Membership 75776 Interstate Batteries of Cal Coast 654.47 Batteries for Vehicles&Carts 75777 J&L Industrial Supply 1,819.44 Tools 75778 JG Tucker and Son,Inc. 177.96 Filters 75779 Jamison Engineering Contractors,Inc. 4,885.01 Repair&Maintenance Services at No.8 Grit Chamber 75780 Jays Catering 1,854.74 Meeting Expenses 75781 Kiesel Environmental Lab 1,470.00 Outside Lab Services 75782 KID Lindstrom,Inc. 6,080.00 Environmental Consulting Services MO 12-9-90 75783 Lenora Crane and Gateway 2,751.31 Employee Computer Loan Program 75784 League of California Cities 180.00 Publication 75785 Lehigh Valley Safety Supply Co,Inc. 1,817.79 Mobile Safety Shoe Service 75786 LINJER 5,069.36 Professional Service-DART MO 9-22-99 75787 Luccis Gourmet Foods,Inc. 12.95 Meeting Expense 75788 Michael K.Stenstrum,Ph.D.,P.E. 9,000.00 Professional Services-Off-Gas Aeration Study 75789 Maintenance Products, Inc. 3,004.07 Mechanical Parts&Supplies 75790 Maintenance Technology Corp. 403.16 Mechanical Parts&Supplies 75791 Managed Health Network 1,041.92 Employee Assistance Program 75792 Mayer Brown Rowe&Maw,L.L.P. 5,000.00 Professional Services-Strategic Planning&Advocacy 75793 MBC Applied Environmental Sciences 2,891.76 Professional Services-Kelp Beds Aerial Survey 75794 McMaster Carr Supply Co. 6,014.42 Mechanical Parts&Supplies 75795 Mc Welco Products 2,499.38 Tools H:\deptkrin\EXCEL.dta\220\APSHARE\Ciaims Paid Report\05-06\Claims Paid Report-10-31-05 EXHIBIT B rin/210nc Page 3 of 8 11/7/2005 Claims Paid From 10/16/05 to 10/31105 Warrant No. Vendor Amount Description 75796 Medlin Controls Co. 1,155.06 Instrument Supplies 75797 MVA Architects 3,460.00 Professional Services-North County Maintenance Yard 75798 MWH Americas, Inc. 5,195.39 Professional Services P2-74 75799 N Glantz&Son 633.44 White Reflective Sheeting 75800 National Plant Services,Inc. 5,870.00 Vacuum Truck Services 75801 Neal Supply Co. 3.679.23 Plumbing Supplies 75802 Neutron Products,Inc. 10,650.53 Anionic Polymer 75803 New Horizons CLC of Santa Ana 1,575.00 On-Site Training-Microsoft Word&Excel 75804 Newark Electronics 21.52 Instrument Supplies 75805 Nextel Communications 1,271.34 Cellular Phones&Air Time 75806 Ninyo&Moore Corporate Accounting 460.00 Professional Services P1-37 75807 NRG Thermal Services,L.L.C. 2,778.33 Mechanical Parts&Supplies 75808 Nu Way Laser Engraving 1,285.70 Asset Tags 75809 O C Tanner Recognition Company 1,496.01 Employee Service Awards Program 75810 OCB Reprographics 19,920.45 Printing Service-MO 1/26/00 75811 Office Depot Business Services Div. 838.59 Office Supplies 75812 Omni Western,Incorporated 28.21 Tools 75813 OneSource Distributors,Inc. 2,520.29 Electrical Parts&Supplies 75814 Orange County Hose Company 60.50 Hydraulic Hose Supplies&Parts 75815 Orange County Vector Control District 235.93 Pest Control 75816 Orange Fluid System Technologies,Inc. 251.22 Plumbing Parts&Supplies 75817 Osterbauer Compressor 6,238.73 Compressor Parts 75818 Oxygen Service Company 2,928.96 Specialty Gases 75819 Joseph W.Park,Jr. 693.91 Vehicle Damage Claim 75820 Pacific Mechanical Supply 6,771.69 Plumbing Supplies 75821 Pacific Parts&Controls,Inc. 932.04 Repairs&Maintenance Materials 75822 Pixelpushers,Inc. 11,250.00 Temporary Employment Services 75823 Port Supply 5.05 Repairs&Maintenance Materials 75824 Praxair Distribution,Inc. 15.70 Demurrage 75825 Pre Paid Legal Services,Inc. 536.15 Employee Legal Service Insurance Premium 75826 Primary Source Office Furnishings,Inc. 3,154.92 Office Furniture 75827 Primavera Systems,Inc. 9,650.00 Software Maint. 75828 Pumping Solutions,Inc. 82.41 Pump Parts&Supplies 75829 Clair California Div.Pump Engineering 64.96 Freight Services 75830 Rainbow Disposal Co. 2,774.91 Trash Removal 75831 Raven Biological Laboratories 184.37 Lab Analyses 75832 RBF Consulting 18,097.83 Engineering Services 7-38 75833 Reliastar Bankers Security Life Ins. 8,689.40 Vol.Life Ins.,Supplemental Short-Term Disability&Cancer Ins.Payroll Deductions 75834 RemedyTemp, Inc. 4,340.16 Temporary Employment Services 75835 Restek Corp. 358.69 Lab Parts&Supplies 75836 Ricoh Business System 4,923.65 Color Copier Lease,Maintenance&Supplies 75837 RMS Engineering&Design,Inc. 7,400.00 Professional Services-North County Maintenance Yard 75838 Rockwell Engineering&Equipment Co. 1,062.50 Pump Supplies 75839 Royale Cleaners 8.00 Dry Cleaning Services 75840 Rudolph H Stolz 1,500.00 Training Registration 75841 S&J Supply Co.,Inc. 5,062.10 Valves 75842 S P Kinney Engineers, Inc. 6,155.70 Software Subscription&Support-AS/400 H:ldeptVrinIEXCEL.dta12201APSHARE1Claims Paid ReporA05-WClaims Paid Report-10-31-05 EXHIBIT B fin/210nc Page 4 of 8 11l712005 0.. O Claims Paid From 10/16105 to 10/31/05 Warrant No. Vendor Amount Description 75843 Sancon Engineering, Inc. 22,900.00 Construction-Manhole Rehabilitation Program 75844 SARBS PDC 240.00 Training Registration 75845 SBC 737.20 Telephone Services 75846 SBC/MCI 765.68 Telephone Services 75847 Schwing America,Inc. 5,159.53 Pump Parts&Supplies 75848 Scottel Voice&Data,Inc. 2,284.80 Telephone System Maintenance 75849 Shureluck Sales&Engineering 123.83 Mechanical Parts&Supplies 75850 Smith Pipe&Supply 270.91 Landscape Irrigation Supplies 75851 Southern California Edison 2,288.58 Power 75852 Southern Counties Lubricants 452.55 Grease 75853 Sparkletts 190.80 Drinking Water/Cooler Rentals 75854 Spectrum Laboratory Products,Inc. 95.36 Lab Parts&Supplies 75855 Spex Certiprep, Inc. 124.59 Lab Parts&Supplies 75856 St Croix Sensory, Inc. 3,360.00 Lab Services-Olfactometry Testing 75857 Summit Steel 157.88 Metal 75858 Sunset Industrial Parts 391.35 Mechanical Parts&Supplies 75859 Teledyne ISCO c/o MRC Technologies 1.462.38 Rechargeable Batteries 75860 Terminix International 165.00 Pest Control 75861 The Standard Insurance Company 2,501.70 Executive Disability Insurance 75862 The Tin Bender 367.43 Filters 75863 Thomas V.Gerlinger 1,365.00 Lab Analyses 75864 Thompson Industrial Supply, Inc. 17,246.10 Mechanical Parts&Supplies 75865 Thomson West 183.54 Publication 75866 Tonys Lock&Safe Service&Sales 1,303.73 Cyberkeys,Locks&Keys 75867 Townsend Public Affairs 5,000.00 Legislative&Executive Advocate for Grant Funding 75868 Traffic Control Service,Inc. 551.68 Traffic Safety Supplies 75869 Truck&Auto Supply,Inc. 94.98 Automotive Supplies 75870 Tuff Skin 350.00 Truck Liner-V-550 75871 US Filter Corp. 996.17 Service Agreement-DI Water Systems at Plants 1 &2 75872 U S Bank 3,957.00 Annual Administrative Fee Re 2000 Refunding Certificates of Participation 75873 Ultra Scientific 144.48 Lab Parts&Supplies 75874 Underground Service Alert of So.Calif 1,767.00 Membership-Underground Utility Identification/Notification Service 75875 United Pacific Services,Inc. 16,213.53 Landscape Maintenance at Plants 1 &2 and Pump Stations 75876 US Airconditioning Distributors,Inc. 12,044.65 Air Conditioner Condenser 75877 US Postal Service AMS TMS 5,000.00 Postage 75878 Valley Detroit Diesel Allison 154.60 Mechanical Parts&Supplies 75879 Vapex,Inc. 1.287.00 Instrument Parts&Supplies 75880 Verizon California 119.58 Telephone Services 75881 Vernes Plumbing 1,723.00 Service Agreement-Replace(3)Backflow Devices 75882 Villa Ford 23,489.49 (1)2005-06 Ford F-250 Truck with Utility Bed 75883 Village Nurseries 974.92 Landscaping Supplies 75884 Vision Service Plan CA 19,699.08 Vision Service Premium 75885 Vortex Corp. 820.41 Door Repair 75886 VWR Scientific Products 9,215.61 Lab Parts&Supplies 75867 The Wackenhut Corporation 9,835.57 Security Guards 75886 Wally Machinery and Tool Supply, Inc. 156.24 Tools 75889 Waste Markets 15,788.37 Maint.Agreement-Grit&Screenings Removal&Digester Bed Mat'I.Removal H:ldeptlCn\EXCEL.dta\220\NPSHARE\Claims Paid Report\05-06\Claims Paid Report-10-31-05 EXHIBIT B rin/21011c Page 5 of 8 11/7/2005 Claims Paid From 10/16/05 to 10/31105 Warrant No. Vendor Amount Description 75890 Water 3 Engineering, Inc. 1.373.09 Engineering Services J-67 75891 Waxie Sanitary Supply 778.28 Janitorial Supplies 75892 WEF 493.00 Membership-Water Environment Federation 75893 Xerox Corporation 2,673.78 Xerox Synergix Maintenance Agreement 75894 California Bank&Trust 942.00 Construction J-33-1A,Retention 75895 Southern Contracting Company 17,898.00 Construction J-33-1 75896 Torrey Pines Bank 20,581.65 Construction P1-76,Retention 75897 Deirdre E. Bingman 1,195.00 Meeting/Training Expense Reimbursement 75898 George R.Crawford 417.00 Meeting/Training Expense Reimbursement 75899 Janine Filter 57.00 Meeting/Training Expense Reimbursement 75900 Larry Gibson 1,043.09 Meeting/Training Expense Reimbursement 75901 Denise M.Martinez 55.58 Meeting/Training Expense Reimbursement 75902 Frances C.Morrison 134.69 Meeting/Training Expense Reimbursement 75903 George L.Robertson 1,448.10 Meeting/Training Expense Reimbursement 75904 Paula A.Zeller 289.85 Meeting/Training Expense Reimbursement 75905 County Of Orange Auditor Controller 1,170.00 Encroachment Permits 75906 Orange County Sanitation District 14,370.46 Worker's Comp.Reimb. 75907 Orange County Sanitation District 1,110.03 Petty Cash Reimb. 75908 Black&Veatch Corporation 117,135.69 Engineering Services J-102 75909 City of Buena Park 84,390.00 Cooperative Projects Reimbursement Program 75910 Orange County Business Council 25,000.00 Membership 75911 Tule Ranch/Magan Farms 47,199.80 Residuals Removal MO 3-29-95 75912 Woodruff Spradlin&Smart 94,180.22 Legal Services MO 7-26-95 75913 United States Treasury IRS 1,120,401.15 Interim Arbitrage Rebate Liability-Series 2000 B COPs 75914 Airgas Safety 107.93 Safety Supplies 75915 American Telephone&Telegraph Corp. 25.74 Telephone Service 75916 AWSI 1,336.13 Department of Transportation Program Management&Testing 75917 Basic Chemical Solutions 10,876.14 Sodium Bisulfite&Sodium Hydroxide 75918 Battery Specialties 237.91 Batteries 75919 BMC Business Machines Consultants, Inc. 250.00 Multifunctional Copier/Scanner Maintenance Agreement 75920 Court Trustee 67.50 Wage Garnishment 75921 California Soil Products 4.505.39 Residuals Removal MO 3-29-95 75922 Cambridge Isotope Labs 4.720.92 Lab Parts&Supplies 75923 Cameron Welding Supply 14.52 Welding Supplies 75924 Cingular Wireless Airtime 69.16 Wireless Services 75925 City of Fountain Valley 210.00 Permit Fee-Removal of Underground Storage Tank FE05-33 75926 CMAA 120.00 Membership(Construction Management Association of America) 75927 Coast Transmission 1,765.52 Vehicle Repairs 75928 Court Order 150.00 Wage Garnishment 75929 Columbia Analytical Services,Inc. 615.00 Analysis of Wastewater,Industrial Wastewater&Biosolids 75930 County of Orange 150.00 Wage Garnishment 75931 CWEA Membership 100.00 Membership(Calif.Water Environment Assoc.) 75932 Dell Computer 6,816.89 (3)Dell Latitude Notebooks 75933 Department Of Child Support Services 300.00 Wage Garnishment 75934 Diehl Evans&Co.,L.L.P. 975.00 Training Registration 75935 Employee Benefits Specialists,Inc. 9,558.51 Reimbursed Prepaid Employee Medical&Dependent Care 75936 Court Order 445.00 Wage Garnishment H:\dept\fin\EXCEL.dta\220\APSHARE\Claims Paid Report\05-06\Claims Paid Report-10-31-05 EXHIBIT B fin/21011c Page 6 of 8 11/712005 Claims Paid From 10/16/05 to 10131/05 Warrant No. Vendor Amount Description 75937 Fisher Scientific Company,L.L.C. 259.64 Lab Parts&Supplies 75938 Franchise Tax Board 514.74 Wage Garnishment 75939 Gerhardts,Inc. 2,132.50 Repairs&Maintenance Service 75940 Internal Revenue Service 125.00 Wage Garnishment 75941 IBM Corporation Way 5,103.66 Maintenance Agreement AS-400 75942 Intl.Union of Oper. Eng.AFL CIO Local 501 4,537.25 Dues Deduction 75943 Irvine Ranch Water District 42.49 Water Use 75944 Liebert Cassidy 1,867.50 Professional Service-Human Resources 75945 McGarry Central 111.44 Office Equipment Maintenance Agreement 75946 Mid West Associates 468.18 Pump Parts&Supplies 75947 Court Order 225.00 Wage Garnishment 75948 National Bond&Trust 2,470.47 U.S.Savings Bonds Payroll Deductions 75949 New Horizons,C.L.C.of Santa Ana 160.00 Training Registration 75950 Occidental Energy Marketing, Inc. 12,944.26 Natural Gas for CenGen/CoGen 75951 OCEA 650.54 Dues Deduction 75952 Onesource Distributors,Inc. 75.62 Electrical Parts&Supplies 75953 Orange County Sheriff 85.00 Wage Garnishment 75954 Peace Officers Council of CA 1,593.00 Dues Deduction,Supervisors&Professionals 75955 Polydyne,Inc. 24,917.52 Cationic Polymer MO 3-11-92 75956 Quality Building Supply 25.00 Freight Services 75957 Raney Industries 4,250.00 Repairs&Maintenance Services-Building"M"Air System 75958 SBC 1,426.06 Telephone Services 75959 SBC Long Distance 1,391.68 Long Distance Telephone Services 75960 SBC/MCI 2,869.67 Telephone Services 75961 Court Order 721.50 Wage Garnishment 75962 Southern California Edison 30.20 Power 75963 SWRCB Accounting Office 406.00 Annual Fee-Storm Water Permit,5-51 &5-52 75964 Thompson Industrial Supply, Inc. 16,819.33 Mechanical Parts&Supplies 75965 The Uniource Corporation 141.76 Office Supplies 75966 United Parcel Service 2,074.35 Parcel Services 75967 United Way 195.00 Employee Contributions 75968 US Airconditioning Distributors,Inc. 192.15 Electrical Parts&Supplies 75969 Verizon California 80.10 Telephone Services 75970 WEF 455.00 Membership-Water Environment Federation 75971 Xerox Corporation 14,564.24 Copier Leases 75972 Xyon Business Solutions,Inc. 10,600,00 Temporary Employment Services 75973 Court Order 597.50 Wage Garnishment 75974 1-800-Conference(R) 1,009.10 Conference Telephone Calls 75975 Daisy G.Covarrubias 130.00 Meeting/Training Expense Reimbursement 75976 Jeffrey L.Jones 125.04 Meeting/Training Expense Reimbursement 75977 Henry E.Lorimer 54.50 Meeting/Training Expense Reimbursement 75978 Charles D.Mcgee 125.00 Meeting/Training Expense Reimbursement 75979 Jamiann Questa 137.77 Meeting/Training Expense Reimbursement 75980 Curt V.Shelp 517.77 Meeting/Training Expense Reimbursement 75981 Richard L.Spencer 21.40 Meeting/Training Expense Reimbursement 75982 Chris A.Stacklin 100.00 Meeting/Training Expense Reimbursement 75983 City of Fountain Valley 210.00 Permit Fee-Removal of Underground Storage Tank FE05-32 H:ldepNfn\EXCEL.dta12201APSHAREIClaims Paid Report105.061CIaims Paid Report-10-31-05 EXHIBIT B fn/21OAc Page 7 of 8 1 V(712005 Claims Paid From 10/16/05 to 10/31/05 Warrant No. Vendor Amount Description 75984 Employee Activity Committee 20.000.00 Service Award Expense 75985 State Board of Equalization 350.00 Annexation Fee 75986 California Hazardous Services, Inc. 1,380.00 UST Containment System-SB 989 Testing 75987 Jamison Engineering Contractors, Inc. 3,895.00 Repairs&Maint.-Fabricate/Install(4)Pipe Supports in Vault at Seal Beach Pump Sta. 75988 Mcmaster Carr Supply Co. 115.74 Plumbing Parts&Supplies 75989 Shureluck Sales&Engineering 266.59 Mechanical Parts&Supplies 75990 Thompson Industrial Supply, Inc. 602.07 Mechanical Parts&Supplies 75991 The Wackenhut Corporation 4,235.37 Security Guards Total Accounts Payable-Warrants $ 12,523,499.98 Payroll Disbursements 30956 - 31545 Employee Paychecks $ 150,207.89 Interim Retro Payroll 10/19/05 31546 - 31628 Employee Paychecks 144,278.48 Biweekly Payroll 10/26/05 31629 - 31635 Employee Paychecks 57,480.66 Interim Retro EMT&Termination Payroll 10/24/05&10/28/05 117836-118390 Direct Deposit Statements 1,145,854.22 Direct Deposit Statements 10/26/05 Total Payroll Disbursements $ 1,497,821.25 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 749,157.94 Biweekly Payroll 10/26/05 US Bank 393,064.36 Series 2000 A&B Refunding CON October Interest Payment Total Wire Transfer Payments $ 1,142,222.30 Total Claims Paid 10/16105-10131105 $ 15,163,543.53 H:\dept\rin1EXCEL.dta12201APSHARE1Ciaims Paid ReportX05-06\Claims Paid Report-1031-05 EXHIBIT B fin/210Rc Page 8 of 8 11f712005 PDC COMMITTEE Meeting Date To Bd.of Dir. 10/13/05 11/16/05 j AGENDA REPORT Item Number Item Number PDC05-100 9 a Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: David May, Project Manager SUBJECT: BUSHARD TRUNK SEWER REHABILITATION, JOB NO. 1-2-4 GENERAL MANAGER'S RECOMMENDATION Approve revised language due to late Contractor request for Change Order No. 17 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of $23,707, increasing the total contract amount to $35,710,113, that was approved at the October 26, 2005 Board Meeting. SUMMARY This change order was approved at the October 26. 2005 Board Meeting. However, due to a revision in lanquage requested by the Contractor requires the Board of Directors to re-approve Change Order No. 17. Ratify Change Order No. 17 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of $23,707, increasing the total contract amount to S35,710.113. • Job No. 1-2-4, Bushard Trunk Sewer Rehabilitation, includes the installation of 21 ,600 linear feet (just over four miles) of 108-inch reinforced concrete pipe. manholes, junction structures, and miscellaneous utility relocations. • Boyle Engineering Corporation prepared the plans and specifications and the contract was awarded to Steve P. Rados, Inc. on June 26, 2002. • Change Order No. 17 includes three items of additional work to Job No. 1-2-4. There are no reimbursable or non-reimbursable design errors associated with this change order. Liquidated damages on this contract are S2,000 per calendar day and the bonus provisions are $750 per calendar day. • The Contractor was of the opinion that language included in Item 1, Lining Repair And Dewatering Costs For Installed 108-Inch Pipe. of the change order as approved bV the October Board could be construed that the Sanitation District could seek reimbursement from the Contractor for costs incurred prior to the Settlement Agreement. The settlement agreement does settle costs prior to Au_qust 1. 2005 and the lanquage was revised to address the Contractor's concern. The change in lanquage is highlighted in bold under Item 1 of the attached change order. Page 1 Contract Schedule Contract Start Date September 16, 2002 Original Contract Completion Date March 18, 2004 Total Number of Change Orders to Date 17 Current Contract Completion Date Deferred" Actual Completion Date N/A Days Subject to Liquidated Damages N/A *See "Additional Information" on page 3 Change Order No. 17 Content Item No. Description Amount Days Type 1 Lining Repair and Dewatering $ 18,413 0 Other Costs for Installed 108-Inch Pipe 2 Temporary Restrooms at Plant $ 1,307 0 Staff No. 2 Gates Requested Design Change 3 Additional Pavement Work at $ 3,987 0 Other the Yorktown-Bushard Intersection Total — Change Order No. 17 $ 23,707 0 Item 1 is for the repair of interior lining of the 108-inch pipe. and for dewatering efforts to keep groundwater out of the pipe during the repair work. This work was associated with a plan worked out between OCSD and the Contractor to complete the installation of the purchased 108-inch pipe as effectively and quickly as possible. OCSD agreed to fund these costs to share the short term financial burden associated with the installation of this pipe. Item 2 is for extra costs associated with the rental and maintenance of two temporary restrooms at the Plant No. 2 Banning and Bushard Gates. This is a staff requested change because OCSD requested to keep the restrooms in place after the project temporarily shut down to accommodate the security personnel who staffed the gates. Item 3 is for additional pavement work at the Yorktown-Bushard Intersection. A coordination question between adjoining City of Huntington Beach and Contractor paving work caused a dip at the joint. The City requested an improvement to this area. Job Completion The contract is now 47% 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. Page 2 PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 30,003,210 Previously Authorized Changes $ 5,683,196 This Change Order (CO No. 17, Add) $ 23,707 Change Orders to Date $ 5,706,903 Percent Increase to Date 19.02% Amended Contract Price $ 35,710,113 BUDGET IMPACT ® This item has been budgeted. (Line item: FY 04/05, Section 8, Capital Improvement Program, Collections Facilities, Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Background for Item No. 1: Shortly after installation of the 108-inch concrete sewer pipe began, the pipe revealed problems with tight joints and cracking. In order to mitigate problems and avoid extensive project delays, OCSD issued a letter to the Contractor on April 16, 2004 titled "Revised Instructions For Resumption of 108-Inch Pipe Already Paid For". One of the instructional items was to install the pipe with only one instead of two gaskets. Use of one gasket necessitated the use of a joint tester, which in turn required the cutting of hand holes in the pipe liner at each test location to pull the liner out of the way of the tester. The required repairs of the lining had to be done inside the installed pipe in dry conditions. Consequently, dewatering had to be continued to keep groundwater out of the pipe. OCSD agreed to fund costs associated with joint testing that were in excess of that required by the contract, which was the case with the lining repair and the dewatering costs. OCSD and the Contractor did not settle the costs for these particular work items in mediation. Item 2.8 of the Settlement Agreement and Release effective August 1, 2005, between OCSD, the Contractor, and the pipe supplier, excludes this work and associated costs from the release of all claims. Consequently, consistent with the funding agreement between OCSD and the Contractor, OCSD is funding the costs and has reserved its right to recover the funded costs. Current Contract Completion Date: Part of the mediation between OCSD and the Contractor was a settlement of the contract time. Item 1.3.4 of the Settlement Agreement and Release effective August 1, 2005 states that the time for completion of the project will be extended by a reasonable period without penalty by mutual agreement. This will be done prior to the Page 3 continuation of the work. At this time OCSD estimates that the final completion of the project will be in the spring of 2007. I ALTERNATIVES None Page 4 CEQA FINDINGS This project was included in the 1999 Strategic Plan Program EIR certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. Additional CEQA documentation for the project was included in Addendum No. 3 to the EIR approved on December 19, 2001. This Addendum will not change CEQA findings. ATTACHMENTS 1. Change Order MB:dm:gc H:Intg1oba1\Agenda Draft ReportsTMI-2-4 AR CO#1 Tdoc Page 5 t Page 1 of 4 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Seventeen (17) Date: November 16, 2005 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation Amount of this Change Order (Add)( Gt) $ 23,707.00 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 — LINING REPAIR AND DEWATERING COSTS FOR INSTALLED 108-INCH PIPE This item is for repairs to the interior lining of a portion of the installed 108-inch sewer pipe, and for dewatering for this repair work, all on Bushard Street between Waterfront and Panacea Drive, approximate sewer stations 75+00 to 82+92. OCSD instructed the Contractor in a letter dated April 16, 2004 to install 108-inch pipe with one instead of the contract-required two joint gaskets. Use of one gasket necessitated the use of a joint tester, which in turn required the cutting of hand holes in the pipe liner at each test location to pull the liner out of the way of the tester. The required repairs of the liner had to be done inside the installed pipe under dry conditions. Consequently, dewatering had to be continued to keep groundwater out of the pipe. OCSD agreed to fund costs associated with joint testing that were in excess of that required by the contract, which was the case with the lining repair and the dewatering costs. The work consisted of cleaning the lining, cutting patches, welding of the patches to the lining, and maintaining the dewatering system for that area. Item No. 2.8 of the Settlement Agreement and Release effective August 1, 2005 between OCSD, the Contractor, and the pipe supplier, excludes this change order item from the release of all claims. Consistent with the funding agreement between OCSD and the Contractor, the approval of this item is not an admission of any responsibility by OCSD for these additional costs nor a waiver of any of OCSD's rights and remedies. OCSD reserves its rights to recover the costs paid to the Contractor under this item. (Reference FCO 124-60, CO No. 8-Item 8, CO No. 9-Item 7, CO No. 10- Item 3, CO No. 13-Item 4, CO No. 14-Item 4) ADDED COST THIS CHANGE ORDER ITEM: $18,413.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 2 of 4 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Seventeen (17) Date: November 16, 2005 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation ITEM 2—TEMPORARY RESTROOMS AT PLANT NO. 2 GATES This item is for rental and maintenance costs for two temporary restrooms between January and July 2005 at Plant No. 2 at the Banning and Bushard Gates. The Contractor had provided these restrooms initially for contract work. Once work stopped, OCSD requested that the restrooms be kept in place to keep both gates open and staffed with security personnel. The extra costs consisted of the rental and maintenance of two temporary restrooms for a period of six months. The additional work for this item was accomplished by force account pursuant to Section 46 of the General Requirements. (Reference FCO 124-36) ADDED COST THIS CHANGE ORDER ITEM: $ 1,307.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 3—ADDITIONAL PAVEMENT WORK AT THE YORKTOWN-BUSHARD INTERSECTION This item is for additional pavement work on the east side of the Yorktown-Bushard intersection, approximate sewer station 173+50. The City of Huntington Beach had paved Yorktown on the east side of Bushard up to the intersection as part of a separate City improvement project. Subsequently, on March 9, 2005, the Contractor paved this intersection. Due to a coordination question with surface elevations and limits of paving between the City's and the Contractor's paving projects, a slight dip noticeable to drivers remained in the area where the two paving jobs joined. The City requested an improvement to this area. The extra work consisted of traffic control, pavement grinding, paving, and striping. The additional work for this item was negotiated with the Contractor pursuant to Section 46 of the General Requirements. (Reference FCO 124-55) ADDED COST THIS CHANGE ORDER ITEM: $ 3,987.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL ADDED COSTS THIS CHANGE ORDER: $ 23,707.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days Page 3 of 4 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Seventeen (17) Date: November 16, 2005 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation 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 as outlined in the Settlement Agreement and Release, Item 1.3.4. It is therefore mutually agreed that no time extension 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, or as reserved in the Settlement Agreement and Release. SUMMARY OF CONTRACT TIME Original Contract Date: September 16, 2002 Original Contract Time: 550 Calendar Days Original Completion Date: March 18, 2004 Time Extension this C.O.: 0 Calendar Days Total Contract Time Extension: Deferred Revised Contract Time: Deferred Revised Final Completion Due Date: Deferred Time Subject to Liquidated Damages: N/A Actual Final Completion Date: N/A Original Contract Price $30,003,210.00 Prev. Authorized Changes $ 5,683,195.80 This Change (Add) (Dedwet) $ 23,707.00 Amended Contract Price $35,710,112.80 1 Page 4 of 4 p, ORANGE COUNTY SANITATION DISTRICT ` 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Seventeen (17) Date: November 16, 2005 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation Board Authorization Date: October 26, 2005 ORANGE COUNTY SANITATION DISTRICT Recommended by: Tod E. Haynes, P.E. Date Engineering and Construction Manager Approved by: David A. Ludwin, P.E. Date Director of Engineering Accepted by: Steve P. Rados, Inc. Contractor Date EDMS 003800465 BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 11/16/05 AGENDA REPORT Item Number Item Number 9b Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Bob Chenowith, Senior Engineering Associate SUBJECT: PROPOSED ANNEXATION NO. OCSD-54 - EAST ORANGE AREA 1 REORGANIZATION TO THE CITY OF ORANGE ANNEXATION GENERAL MANAGER'S RECOMMENDATION (1) Receive and file petition from the Irvine Company requesting annexation of 409 acres to the Orange County Sanitation District in the vicinity of Santiago Canyon Road and Foothill Eastern Transportation Corridor, an unincorporated area in Orange County; and (2) Adopt Resolution No. OCSD 05-26, authorizing initiation of proceedings to annex said territory to the Orange County Sanitation District (Proposed Annexation No. OCSD-54 — East Orange Area 1 Reorganization to the City of Orange Annexation). SUMMARY • The Orange County Sanitation District (Sanitation District) received a request from the Local Agency Formation Commission (LAFCO) on behalf of the Irvine Company to annex 409 acres to the Sanitation District. This area will also be annexed to the City of Orange and to the Irvine Ranch Water District (IRWD) to maintain the public sewers within the development via an agreement with the Sanitation District. • This development will connect into IRWD's Harvard Avenue Trunk Sewer. The planned community will build 3,942 new residential dwelling units, and will also include open space, mixed use, commercial and institutional land uses. • Annexation fees are not applicable for this area under Ordinance No. OCSD-21. The reason the fees are not applicable is that area will be within Revenue Area 14, which is the IRWD service area. Collection of all fees associated with IRWD services are governed by separate agreement and are based on actual IRWD flows treated by the Sanitation District. PROJECT/CONTRACT COST SUMMARY This total fee for this annexation is $500 for the Sanitation District staff administrative costs. 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 The project developer has already filed CEQA documents ATTACHMENTS N/A RLC:sa H:1ntg1oballAgenda Draft Reports\Joint Boards\Easl Orange Annex.doc Revised: 8P10101 Page 2 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 11/16/05 AGENDA REPORT Item Number Item Number 9c Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Adam Nazaroff, Associate Engineer III SUBJECT: ENCROACHMENT PERMIT WITH WARLAND INVESTMENTS COMPANY OVER AN EXISTING ORANGE COUNTY SANITATION DISTRICT EASEMENT GENERAL MANAGER'S RECOMMENDATION Approve an encroachment permit, in a form approved by General Counsel, with Warland Investments Company over an existing Orange County Sanitation District sewer and easement built in connection with Miller Holder Trunk Sewer, Contract No. 3-3. SUMMARY • The site of the Warland Investments Company (Project) is north east of the intersection of Valley View and Katella within the City of Cypress. The Project proposes to build warehouse buildings with commercial space and associated parking spaces. • The Orange County Sanitation District (Sanitation District) has a 51-inch sewer, Contract No. 3-3, that traverses through this property. The Sanitation District owns a 40-foot wide easement that encompasses this sewer. • The proposed encroachment permit will allow Warland Investments Company to place parking spaces, landscape planters, landscaping, and trash container enclosures within the easement. Parking spaces, or any other encroachments, will not be allowed around the sewer manhole to ensure access is always available. Sanitation District maintenance vehicles will be allowed to access the single manhole within this permit via parking lot aisles. • The permit will be revocable by the Sanitation District if its terms and conditions are violated. It also places responsibility on the property owner to remove and replace all encroaching items, if there is ever a need to excavate and replace the sewer. • The encroachment permit will be recorded at the Orange County Recorder's Office. PRIOR COMMITTEE/BOARD ACTIONS N/A K%depMgenda\Board Agenda Reports\2005 Board Agenda&Agenda Reports\1105\Item 9(c).Wadand Investments.doc Revised: 08/24/04 Page 1 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. 0 Not applicable (information item) ADDITIONAL INFORMATION None ALTERNATIVES Do not approve the encroachment permit. This will cause Warland Investments Company to redesign their development or seek legal action against the Sanitation District. CEQA FINDINGS N/A ATTACHMENTS 1 . Vicinity Map 2. Map of Sewer Easement Area AN:sa WntglobaMgenda Draft Reports\Joint Boards'tcontract 3-3—Encroachment Pemrit with Warland Investment_02.doc N:\deptlagenda\Board Agenda Reports\2005 Board Agenda 8 Agenda Reports\1105\Item 9(c).Wadand Investments.doc Revised: 0W4104 Page 2 t . I j ORANGE COUNTY •'�� & Lc Habra •,°• �� B r e a �•• �..1•+.� • `•''o�"GlT� J �•r Yorba Linda �, ----� �1�7G0 r•,_i `� Fullerton `lacentia '�• �• S�. La—Palma - r � r i•'Cypress Antaheim ,� �: .,�,•' plc o ��•° �� Villa. Park •.. r F Orange L`o s Ala . 'It sin �� f �. I �'---G a r d e n Grove'' LAME' •�•S e a l B a c h Santa Ana eatmtnster Tustin• Huntington each-,,_ Fountain Valley .� Reclamatio ~`�.. MW Iv Plant I ?\ `.N oce it/ •.% Costa Mesa •.`• � Irvine �• :;• .�4� ••�. Trea ent / UPPER % Pla 2 NEtMAoaT %• •\ 'Newport Beach N. w N It W E S Legend ORANGE COUNTY SANITATION DISTRICT SA N � •'ti District Boundary Service Area and Project Site • �•� —— Freeways Geographic Information Systems, Engineering Source: 0 5 10 OCSD GIS Data,Thomas Brothers 2002, Mlles Created:09/2005 71 .1! I I I Vim; j TJ EM=NQ MANHOLE MOMNG SEWER MAIN EX 40'Oj=. EASEMENT LEGEND --PL LA LANDSCAPE AREA Ll -LA A LA'foAo3 L111 C-4 ------------ ----- NOT TO SCALE Ss ss ss V-k FUSCOE 16795 Van Varman,Suito 100 SEWER EASEMENT AREA Irvine,CaliFamic 92606 tl 949.474.1%0 0 fox 949A 74.5315 CITY OF CYPRESI% CAUFORNIA .9 DRAFT MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, October 26, 2005, at 5 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, October 26, 2005 at 5 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: STAFF PRESENT: Directors Present: Bob Ghirelli, Acting General Manager Steve Anderson, Chair Nick Arhontes, Director of Regional Services and Jim Ferryman, Vice Chair Assets Carolyn Cavecche, Chair, OMTS Committee David Ludwin, Director of Engineering Darryl Miller, Chairman, FAHR Committee Lorenzo Tyner, Director of Finance/Treasurer Tod Ridgeway, Chairman, PDC Committee Lisa Tomko, Director of Human Resources Lou Correa, County Supervisor Gail Garrett, Committee Secretary Sonja Morgan, Principal Public Information Directors Absent: Specialist Jim Silva, County Supervisor Karen Baroldi, Senior Environmental Specialist Jeff Reed, Human Resources Manager OTHERS PRESENT: Jim Burror, Engineering Supervisor Bradley R. Hogin, General Counsel John Linder, Engineering Manager Director Doug Davert Adam Nazaroff, Associate Engineer Director Phil Luebben Ryal Wheeler, Maintenance Supervisor Director Mark Waldman Don Hughes Eric Sapirstein, ENS Resources John Freshman, Freshman and Kast Scott Baugh, Mayer Brown Rowe and Maw (via teleconference) Christopher Townsend, Townsend & Associates (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. Minutes of the Steering Committee Page 2 October 26, 2005 (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the September 28, 2005 Steering Committee meeting were approved as amended. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Steve Anderson announced David Shawver will be representing the City of Stanton on the OCSD Board. Director Bankhead has been appointed Vice Chair of OMTS. Director Hardy has also been appointed to OMTS. Chair Anderson announced future meetings, noting that the Steering and Board meetings for November and December will be held on the third Wednesdays due to the upcoming holidays. Dr. Ghirelli introduced the legislative consultants for the Sanitation District: Eric Sapirstein, ENS Resources; John Freshman, Freshman and Kast; Chris Townsend, Townsend Public Affairs; and Scott Baugh, Mayer, Brown, Rowe & Maw, who participated via teleconference. (6) REPORT OF THE GENERAL MANAGER Acting General Manager Robert Ghirelli gave an update on the relocation of the SARI line. The parties involved in the relocation project are OCSD, SAWPA, County of Orange and the Army Corps of Engineers. The General Managers met two weeks ago and concluded that a southerly alignment of the pipe along the 91 Freeway would incur the lowest costs and least environmental impact. This will be the preferred alternative in the EIR/EIS which will be published by the end of the year and completed by April 2006. Dr. Ghirelli said that funding of the project is an issue. The County has funds for the design, but not for the entire project which is estimated at$70 million. OCSD and SAWPA will draft an agreement for sharing the cost of the project, with the understanding that the Sanitation District will eventually receive compensation from the County. Efforts to obtain federal and state funds will also be made. A tour of the SARI line location is scheduled for tomorrow, October 27 for Board members, lobbyists, and representatives from Congressman Gary Miller's office. (7) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin said that AB1234, which governs Directors compensation, has been passed. The Sanitation District has written policies in place and General Counsel will verify that our policies are in compliance. Dr. Ghirelli informed that an agenda report for AB1234 will be presented to the Steering Committee in November. Minutes of the Steering Committee Page 3 October 26, 2005 (8) DISCUSSION ITEMS (Items A-G) A. State and Federal Legislative Advocacy Update; and B. Legislative Agenda—2006 Legislative Session The Sanitation District's federal legislative consultants, Eric Sapirstein and John Freshman, updated the committee on their activities for the past year and their plans for 2006. Their focus is on acquisition of federal funding for secondary treatment expansion through State and Tribal Assistance Grant (STAG) and Water resources Development Act(WRDA) appropriations. They continue to build support with the Orange County and California delegation in Washington and will continue to focus on secondary treatment funding as well as funding alternatives for the SARI line. The Senate Committee on Environment Public Works has approved a bill in which they included a High Priority Infrastructure Water Quality Projects section, with $300 million a year available for grant assistance for communities that meet the high priority eligibility. Scott Baugh reported on the state legislative initiatives and his activities in the areas of biosolids. His priority this year will be to monitor and actively participate in legislative activities relating to two-year bills, including SB 120 (Florez)Water Quality; SB 926 (Florez) Sewage Sludge Management; and, HR 18 (Baca) SC Groundwater Remediation Act. Christopher Townsend and his firm are focused on acquisition of state funding for District projects including 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. California Senator Dean Florez will tour OCSD on December 2. Scott Baugh will invite California Senator Campbell to the November 16 Steering Committee. MOVED, SECONDED AND DULY CARRIED: Direct staff to bring to the Board of Directors a revised authorization such that each contract is renewable for one- year periods at the discretion of the Steering Committee. Directors requested staff include more specifics in the draft Annual Legislative Agenda. Staff will send the draft Annual Legislative Agenda to the Steering Committee for comments. MOVED, SECONDED AND DULY CARRIED: that the Legislative Agenda 2006 be approved as a draft, with additional clarification to be sent to the Steering Committee by fax for comments. l Minutes of the Steering Committee Page 4 October 26, 2005 C. AERA Master Planned Community Equivalent Annexation Fees Jim Burror provided a handout of the proposed service area, reported on the proposed AERA project, and sought direction from the Committee on how to assess annexation fees. The property owner, AERA Energy, has requested several exclusions from the applicable Equivalent Annexation Fees, one of which is land that is designated for use as a golf course. The Committee tabled the matter because of issues that need to be explored and evaluated. Ordinance No. OCSD-21 requires us to charge by acre. General Counsel will look into whether Ordinance No. OCSD-21 should be amended for clarification should the Steering committee and Board consider excluding the restricted property. Staff was directed to present the Committee with a full report which would explain the developer's drainage plans, include the golf course in the annexation fees, provide a description of sewer capacity in the area, explain the nexus between the annexation fee and the development costs, and describe proposed amendments to Ordinance No. OCSD-21. D. Huntington Beach New Lift Station "D" and Related Sewers Nick Arhontes reported that the City of Huntington Beach has formally requested that OCSD take over the new Gravity Pump Station and related sewers. Staff has not conducted a review of the plans and specifications of the pump station and is not in an informed position re maintainability and cost factors. Several alternatives were discussed and staff was directed to take no action at present and monitor the first five years of the operation. E. Request for Reporting Changes Dr. Ghirelli informed that, in response to Chair Anderson's request, the Public Affairs department researched outside reporting methods to the Board. Sonja Morgan said the requests for monthly news clippings, monthly board member request summary, and State and Federal legislation updates can be implemented at once with minimal additional staff time. On the other hand, policies and procedures must be put in place for preparing an Outreach Calendar and Travel summary since this would involve numerous staff members throughout the divisions. F. The Agenda Items scheduled to be reviewed by the Board's working committees in November were reviewed. G. 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 There was no other business discussed. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING 1 Minutes of the Steering Committee w Page 5 October 26, 2005 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 16, 2005 at 5 p.m. The next Board Meeting is scheduled for Wednesday, November 16, 2005 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:30 p.m. in Closed Session, pursuant to Section 54956.9 and 54957, to discuss three matters. 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 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 7:00 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 7:00 p.m. Submitted by: &��- &ON-V� Gail Garrett Steering Committee Secretary CADocuments and SettingslbrhVxcal SettingslTemporary Internet FdeslOLK2MI02605 SC Minutes DRAFT21.doc � p DRAFT MINUTES OF STEERING COMMITTEE SPECIAL MEETING Orange County Sanitation District Friday, October 28, 2005, at 2 p.m. A special meeting of the Steering Committee of the Orange County Sanitation District was held on Friday, October 28, 2005 at 2:10 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: Directors Absent: Directors Present: Darryl Miller, Chairman, FAHR Committee Steve Anderson, Chair Jim Ferryman, Vice Chair OTHERS PRESENT: Carolyn Cavecche, Chair, OMTS Bradley R. Hogin, General Counsel Committee Tod Ridgeway, Chairman, PDC Committee STAFF PRESENT: Jim Silva, County Supervisor Penny Kyle, Board Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Steve Anderson did not have a report. (5) REPORT OF THE GENERAL COUNSEL General Counsel Brad Hogin did not have a report. Minutes of the Steering Committee Page 2 October 28, 2005 (6) DISCUSSION ITEMS A. Consider retention of search firm to identify candidates for interim General Manager position. Directors entered into discussion regarding the retention of a search firm for the recruitment of a general manager. They also discussed the appointment of an interim General Manager. (7) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (8) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (9) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, November 16, 2005. The next Board Meeting is scheduled for 7 p.m., Wednesday, November 16, 2005. (10) CLOSED SESSION The Committee convened at 2:17 p.m. in Closed Session, pursuant to Section 54956.9 and 54957, to discuss one matter. 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 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 2:54 p.m., the Committee reconvened in regular session. t Minutes of the Steering Committee Page 3 October 28, 2005 (11) ADJOURNMENT The Chair declared the meeting adjourned at 2:54 p.m. Submitted by: Penny M. K e Board Secretary H.WepitagendalSteering CommitteeIWISC Minutes Form.5.doc STEERING COMMITTEE Meeting Date To B/j j( Dir. 11/16/05 11/16/05 AGENDA REPORT Item Number Item Number 8d llb Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Director of Technical Services and Acting Director of Public Affairs Originator: Karen I. Baroldi, Senior Environmental Specialist SUBJECT: STATE AND FEDERAL LEGISLATIVE ADVOCACY GENERAL MANAGER'S RECOMMENDATION Authorize renewal of contracts with ENS Resources (Eric Sapirstein) and Freshman and Kast (John Freshman and Larry Kast) at $10,000/month; Mayer, Brown, Rowe & Maw (Scott Baugh) at $5.000/month; and Townsend Public Affairs (Chris Townsend) at $5,000/month for a one-year period from January 1 , 2006 through December 31 , 2006, and the option to renew for an additional one-year period at the discretion of the Steering Committee. SUMMARY On November 19, 2003. the Board of Directors established a budget of $320,000 for state and federal advocacy and authorized the General Manager to enter into Consultant Services Agreements with three providers: ENS Resources Inc. and Freshman Kast (a subcontractor to ENS Resources), Mayer, Brown, Rowe & Maw, LLP, and Townsend Public Affairs, Inc. The contracts were authorized for the 2004 calendar year, and they are renewable for up to three one-year periods at the discretion of the Steering Committee. During the 2005 Legislative Calendar, the Orange County Sanitation District (Sanitation District) renewed the contracts of its four legislative advocacy consultants to continue assisting the agency in forwarding its legislative agenda and responding to legislation of interest to the Sanitation District. PRIOR COMMITTEE/BOARD ACTIONS November 19, 2003 — Board approved current contracts with the three providers. These contracts expire on December 31, 2004. November 20, 2002 — Board approved prior contract with ENS Resources, Inc. This contract expired on December 31, 2003. PROJECT/CONTRACT COST SUMMARY Contract amounts would remain the same as the previous year. The monthly contract costs per consultant are: • ENS Resources (Eric Sapirstein) and Freshman and Kast (John Freshman and Larry Kast) - $10,000 C:\Documenls and Sellingslkawai\Local Settings\Temporary Internet Files\OLK72\llem 11(b)Legislative Contracts.doc Revised: 11/9/2005 Page 1 ■ Mayer, Brown, Rowe & Maw (Scott Baugh) - $5.000 ■ Townsend Public Affairs (Chris Townsend) - $5,000 BUDGET IMPACT E This item has been budgeted. (Line item: General Manager's Budget) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION ENS Resources and Freshman Kast: Consulting services focused on the acquisition of federal funding through the State and Tribal Assistance Grant (STAG) and the Water Resources Development Act (WRDA) appropriations for secondary treatment. Townsend Public Affairs: Consulting services focused on supporting legislative efforts, strategy for biosolids management and forwarding the Orange County boundary initiative. Townsend Public Affairs also focused on researching state and local funding opportunities. Mayer, Brown. Rowe & Maw: Consulting services focused on state legislative initiatives to support District goals in the areas of funding for secondary treatment. Mayer, Brown, Rowe & Maw, LLP also facilitated meetings with key legislators and assisted Sanitation District staff with developing strategies for various agency initiatives and programs. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None CADocuments and Settings\kawai\Local Settings\Temporary Intemet Files\OLK72\Item 11(b)Legislative Contracis.doc Revised 1 t/92005 Page 2 t MINUTES OF CIP OVERSIGHT AD HOC COMMITTEE MEETING Tuesday, November 1, 2005 A meeting of the CIP Oversight Ad Hoc Committee of the Orange County Sanitation District was held on Tuesday, November 1, 2005 at 5 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: CIP OVERSIGHT AD HOC COMMITTEE STAFF PRESENT: MEMBERS: Bob Ghirelli, Acting General Manager Dave Ludwin, Director of Engineering Directors Present: Lorenzo Tyner, Director of Finance Phil Luebben, Committee Chair Jim Herberg, Director of Operations & Charles Antos Maintenance Carolyn Cavecche Patrick Miles, Director of Information Technology Mike Duvall John Linder,.Engineering Manager Doug Reinhart (Alternate) Jim Burror, Engineering Supervisor Tod Ridgeway Gary Conklin, Engineer Steve Anderson, Board Chair David May, Project Manager Jim Ferryman, Board Vice Chair Penny Kyle, Committee Secretary Directors Absent: Mark Waldman (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Luebben had no report. (5) REPORT OF THE GENERAL MANAGER The Acting General Manager had no report. (6) REPORT OF DIRECTOR OF ENGINEERING The Director of Engineering had no report. Minutes of the CIP Oversight Ad Hoc Committee Page 2 November 1, 2005 (7) REPORT OF GENERAL COUNSEL General Counsel was not present. (8) RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING This was the first meeting of the CIP Oversight Ad Hoc Committee. (9) DISCUSSION ITEMS A. Capital Improvement Program Dave Ludwin, Director of Engineering, reviewed the workshop goals for the CIP Oversight Ad Hoc Committee and the review process staff utilizes in order to coordinate and determine what projects should be considered in the CIP process. Lorenzo Tyner, Director of Finance, reviewed the budgeting process, financial structure and how the CIP Program impacts user rates. It was determined staff should consider the following: - Consider ways to reduce contingency amounts; - Consider color coding or icons on project documents to show relationship of project to program as it relates to expansion, rehabilitation, secondary treatment, etc.; - Show cost savings provided by the Asset Management Program per project - Show relationship of each project to the CIP Program; - Provide a revised user rate model output based on last year's rate increase; Staff referred to a handout regarding proposed CIP project discussion groupings that contained helpful information and could possibly be implemented with the next year's budget book. Directors were very pleased with this approach. (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. Minutes of the CIP Oversight Ad Hoc Committee -=W-, Page 3 November 1, 2005 (13) CONSIDERATION OF UPCOMING MEETINGS The next CIP Oversight Ad Hoc Committee meeting is scheduled for Thursday, December 15, 2005 at 5 p.m. (14) CLOSED SESSION There was no closed session. (15) ADJOURNMENT The Committee Chair declared the meeting adjourned at 6:55 p.m. Submitted by: - I,K'a7 Penny M. K e Committee Secretary H:ldeptlagendaW d Hoc CommitfeeslCIP1 i 10105 C/P Minutes.doc _4 MINUTES OF THE OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE Orange County Sanitation District Wednesday, November 2, 2005— 5:00 P.M. A meeting of the Operations, Maintenance and Technical Services Committee of the Orange County Sanitation District was held on November 2, 2005, at 5:00 p.m. in the Sanitation District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: OMTS Directors Present: Staff Present: Doug Davert, Vice Chair Bob Ghirelli, Director of Technical Services Don Bankhead, Vice Chair Jim Herberg, Director of Operations & Maintenance James M. Ferryman, Board Vice Chair Patrick Miles, Director of Information Technology Ken Parker Lorenzo Tyner, Director of Finance David Shawver Lilia Kovac, Committee Secretary Marian Alter Shabbir Basrai Bob Bell OMTS Directors Absent: Deirdre Bingman Carolyn Cavecche, Chair Patrick McNelly Sukhee Kang Pongsakdi Cady Steve Anderson, Board Chair John Swindler Simon Watson Others: Norbert Gaia Phil Peterson Juanita Skillman (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Director Doug Davert chaired the OMTS meeting in Director Cavecche's absence. r Minutes of the Operations, Maintenance and Technical Services Committee ` November 2, 2005 Page 2 (5) REPORT OF THE GENERAL MANAGER Acting General Manager, Bob Ghirelli, informed the committee that Senator Florez is scheduled to visit the Sanitation District on December 2 for a tour of the facilities and to discuss the Sanitation District's operations. County Supervisor Lou Correa, Chair Anderson, Vice Chair Ferryman, and OMTS Chair Cavecche will also attend the plant tour. Mr. Ghirelli announced that Nick Arhontes, Director of Regional Assets and Services, received the WEFTEC Collection Systems` "Collections System Manager Of The Year" award which was presented at the annual conference in Washington, D.C. (6) CONSENT CALENDAR ITEMS a. Approve minutes of the September 7, 2005 Operations, Maintenance and Technical Services Committee meeting. b. OMTS05-48 Receive and file Technical Services Monthly Report, which focuses on regulatory, biosolids and performance measures for the Technical Services Department. C. OMTS05-49 Receive and file Operations & Maintenance Monthly Report, which focuses on compliance, financial data and performance measures for Operations and Maintenance Department. d. OMTS05-50 Receive and file Regional Assets and Services Monthly Report, which focuses on current business information, performance trends and financial information of the business units. e. OMTS05-51 Receive and file Information Technology Quarterly Report, which focuses on current performance trends and key technology business applications. Motion: Moved, seconded and duly carried to approve the recommended actions for items specified as 6(a) through (e) under Consent Calendar. Director Parker requested a report of advantages gained for issuing the bleach contract as approved in May by the Board. Jim Herberg, Director of Operations and Maintenance, will report at the December OMTS meeting. (7) ACTION ITEMS a. OMTS05-52 Recommend to the Board of Directors to receive and file the Waste Discharge Requirements Sewer System Management Plan; Status Report on the Development of a Reporting Methodology for Subsurface Discharges of Sewage; and Portable Aeration Report prepared by Brown and Caldwell. Minutes of the Operations, Maintenance and Technical Services Committee November 2, 2005 Page 3 Patrick McNelly, Principal Staff Analyst, briefed the committee on the reports submitted as required by the Regional Water Quality Control Board (RWQCB) on behalf of the cities it represents. Reports are available on the Sanitation District's website for public viewing and printing. Director Parker inquired about the installation of monitoring devices at manholes for overflow spill detection, and was informed that the Engineering Department already has a flow model in place throughout the entire District, however, monitoring at each manhole is cost- prohibitive. Motion: It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. OMTS05-53 Recommend to the Board of Directors to authorize the General Manager to finalize negotiations and subsequently award a contract to Workforce Software for Time Entry, Specification No. CS-2005-21613D, for technical consulting, implementation support and software purchase in the amount of $146,625, and a contingency of$28,375, for a total amount not to exceed $175,000, Director of Information Technology, Patrick Miles, provided a brief background on the origin of this request dating three years, which had been approved but not implemented due to software not meeting the Sanitation District's specifications. Staff presented the proposed software, having been tested and found to meet all the needs to automate and streamline the timekeeping reporting process. Motion: It was moved, seconded and duly carried to recommend approval to the Board of Directors. C. OMTS05-54 Recommend to the Board of Directors to receive and file Bid Tabulation and award a contract for the purchase of Magnesium Hydroxide, Specification No. C-2005-244 to Hill Brothers Chemical Company at an initial delivered unit price of$1.64 per gallon excluding sales tax; indexed to natural gas previous month's daily average NYMEX Henry-Hub gas base price of$13.25 per MMBtu and an escalation index factor of an additional $0.06 per gallon magnesium hydroxide for every increase of $1.00 above the indexed cost, for a total amount not to exceed $415,000. Engineer Shabbir Basrai recommended the proposed agreement be approved as a short-term odor control chemical process, while other environmentally-friendly chemicals are being tested for equivalent results and lower costs. Recent hurricane activity in the Gulf affected gas prices, which is used in the production of magnesium hydroxide. Motion: It was moved, seconded and duly carried to recommend approval to the Board of Directors. Minutes of the Operations, Maintenance ' and Technical Services Committee November 2, 2005 Page 4 (8) INFORMATIONAL ITEMS a. OMTS05-55 In-County Compost Use Program. Deirdre Bingman, Principal Environmental Specialist, briefly reviewed the outreach programs recently presented to the community on the benefits of recycling the Sanitation District's biosolids as soil conditioners. The product is currently available at local Wal-Marts, and the cities being served are encouraged to accept from Synagro one truckload for a local public project, free of charge, for public acceptance and approval; subsequent orders are offered at 25% discount. Director Davert suggested that the Board of Directors receive this informational report to incite additional support. b. OMTS05-56 Changes in Central Generation Operating Philosophy Jim Herberg, Director of Operations and Maintenance, informed the Committee that the Sanitation District has recently switched from using a blend of natural gas and digester gas to 100% digester gas during non- peak demand periods to generate power. This change was made to reduce air emissions and puts the Sanitation District in compliance with tighter air emission limits imposed by AQMD as of the first of the year. The change will require the Sanitation District to purchase more electricity, but will result in an overall lower energy cost due to recent increases in natural gas prices. (9) REPORT OF DIRECTOR OF INFORMATION TECHNOLOGY Director of Information Technology, Patrick Miles, referred to the Information Technology Projects summary, which reports the completion of the Sanitation District's new electronic job application and screening system, creating a centralized database of qualified applicants by identified criteria. (10) REPORT OF DIRECTOR OF OPERATIONS AND MAINTENANCE Director of Operations and Maintenance, Jim Herberg, had no report. (11) REPORT OF DIRECTOR OF TECHNICAL SERVICES Director of Technical Services, Bob Ghirelli, referred to the Technical Services report which identifies a violation of ocean discharge permit for exceeding the limit of dioxin in July. Testing was done on a possible external source with negative results. Testing is currently being done in-house, and will continue to test for the source of this chemical. Updates will be given to the Board of Directors as information becomes available. Minutes of the Operations, Maintenance and Technical Services Committee November 2, 2005 Page 5 (12) REPORT OF DIRECTOR OF REGIONAL ASSETS AND SERVICES There was no report. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY 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 MEETING DATES The next Operations, Maintenance and Technical Services Committee meeting is scheduled for December 7, 2005 at 5 p.m. (16) CLOSED SESSION There was no closed session. (17) ADJOURNMENT The Chair declared the meeting adjourned at 6:05 p.m. Submitted by: .�,f ' ��. jA?c- Lilia/A. Kovac Operations, Maintenance and Technical Services Committee Secretary H:ldeptlagenda%OMTS12005109051090705 OMTS Minutes.doc OMTS COMMITTEE Meeting Date To Bd.of Dir. 11/02/05 11/16/05 AGENDA REPORT Item Number Item Number OKTS05-52 13 b Orange County Sanitation District FROM: Nick Arhontes, P.E. - Director of Regional Assets and Services Patrick McNelly - Principal Staff Analyst, Regional Assets and Services SUBJECT: Waste Discharge Requirements (WDR) Final Deliverable Documents GENERAL MANAGER'S RECOMMENDATION: Receive and file the Waste Discharge Requirements Sewer System Management Plan; Status Report on the Development of a Reporting Methodology for Subsurface Discharges of Sewage; and Portable Aeration Report prepared by Brown and Caldwell. SUMMARY: Sewer System Management Plan (SSMP) and other WDR Documents OCSD is required to comply with the California Regional Water Quality Control Board (RWQCB), Santa Ana Region, Order No. R8-2002-0014," entitled "General Waste Discharge Requirements (WDR) for Sewage Collection Agencies in Orange County within the Santa Ana Region." The WDR requires cities and sewering agencies to prepare a plan and schedule for measures to be implemented to improve system funding and management to prevent sanitary sewer overflows (SSOs), as well as measures to effectively respond to, clean up and report SSOs. The major deliverable required under the WDR is the Sewer System Management Plan (SSMP). While leading our internal OCSD touching on almost all OCSD departments, we also led a team of all OCSD sewering agencies and cities to achieve economies of scale in our combined effort. On September 30, 2005, staff delivered our completed SSMP to the RWQCB on schedule. RA&S prepared the SSMP with the support of our consultant, Brown and Caldwell, with input from many staff members district wide. • Volume I of the SSMP provides a general description of how OCSD complies with all the various provisions of the WDR, and provides references to supporting documents and responsible OCSD departments and divisions. The product was also designed and prepared to be easily understood by the public with some awareness of the WDR. • Volume II of the SSMP contains specific information and support documents referenced in Volume I. For support material too large to be physically included in the SSMP, references are provided that indicate the type, owner, and location of these support materials at OCSD. On Sept 30, 2005, RA&S delivered two other supporting documents required by the WDR. H:\dept\agenda\Board Agenda Reports\2005 Board Agenda&Agenda Reports\1105\I1em 13(b).WDR Documents.doc 1 • The first, titled Status Report on the Development of a Reporting Methodology for Subsurface Discharges of Sewage was prepared in response to the WDR findings, Section 2 that says: "The Order also requires the discharger to develop and implement a plan to address subsurface discharges of sewage to ground waters of the State." Further, the WDR also states in Section E, paragraph 3 that, "The discharger shall propose, as part of its SSMP, a plan and schedule for reporting and evaluating subsurface discharges of sewage from its sewage collection system. In response to these WDR requirements, OCSD, with the guidance of the WDR Steering Committee, developed a research project to investigate whether any national or worldwide methodologies existed. None were found during this phase of the project. In November 2002, input was sought from the RWQCB staff and other regulators to develop such a methodology. Brown and Caldwell performed a literature search. and their contractor, a UC Irvine Civil and Environmental Engineering Department research team, developed a work plan. The research was inconclusive in some areas since even new sewers are allowed a certain amount of leakage per national standards. A defendable and accurate means of estimating and reporting subsurface leakage based on reviewing sewer video or digital images remains uncompleted. We'll be communicating further with the RWQCB staff on this status report. This report was prepared on behalf of all WDR city and sewering agency permittees. We are currently waiting for the RWQCB to give us written comments once they have had the opportunity to review the status report to determine if further work is needed. • The other supporting document, also prepared on behalf of all WDR permittees, is titled the Portable Aeration Report. This report was developed to investigate alternatives for mitigating oxygen depletion in waters of the state (specifically inland impoundments) if an SSO reaches the water body and causes severe oxygen depletion. The WDR Section C (Provisions), Part 12 (SSMP), subpart vii (Overflow Emergency Response Plan), paragraph G — requires that co-permittees: "Develop and implement a plan for the use of portable aerators where complete recovery of the sanitary sewer overflows is not practicable and where severe oxygen depletion in existing surface waters is expected." To comply with this part of the WDR. OCSD, with the support of our consultant, Brown and Caldwell, completed an initial investigation of available portable aeration technologies. The outcome is to use contractor resources and equipment, if needed, as their need is very infrequent. Copies of all of these documents will be available on the OCSD website soon as read- only files for public access and information. Communicating with the public about our SSMP is also a WDR requirement. Hldept\agenda\Board Agenda Repons\2005 Board Agenda&Agenda Reports\1105\I1em 13(b).WDR Documents.doc 2 PRIOR COMMITTEE/BOARD ACTIONS OMTS Agenda Report Number OMTS02-38 from OMTS Agenda Report on 6/05/02 SERVICES AGREEMENT WITH BROWN & CALDWELL CONSULTING FOR WASTE DISCHARGE REQUIREMENTS (WDR) SUPPORT OMTS Agenda Report Number OMTS03-11 from OMTS Agenda Report on 3/05/03 RECEIVE AND FILE — IN-PLANT FATS, OILS AND GREASE IMPACT STUDY DATED NOVEMBER 2002 OMTS Agenda Report Number OMTSO4-56 from OMTS Agenda Report on 11/03/04 EXTENSION OF CONSULTING SERVICES AGREEMENT WITH BROWN and CALDWELL CONSULTING FOR WASTE DISCHARGE REQUIREMENTS (WDR) SUPPORT These items were approved by the OMTS on the dates listed above, and were approved by the Board on 6/26/02, 3/26/03, and 11/17/05, respectively. PROJECT/CONTRACT COST SUMMARY 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 The following WDR deliverable documents were delivered to the RWQCB on or before their scheduled completion date. Task Completion Date Description Monitoring and Effective on Adoption The Monitoring and Reporting Program Reporting Program Delivered on schedule (MRP) establishes monitoring, No. R8-2002-0014 recordkeeping, reporting and public notification requirements for reporting SSOs to re ul tory agencies. SSMP Development September 30, 2002 This established OCSD's plan and schedule Plan and Schedule Delivered on schedule for compiling, writing and delivering the SSMP according to the provisions of the WDR. SSO Emergency January 1, 2003 The SSOERP establishes OCSD's plan for Response Plan Delivered on schedule responding to all SSOs and collection system emergencies, and meets all WDR requirements. HAdept\agenda\Board Agenda Reports\2005 Board Agenda 8 Agenda Reports\1105\Item 13(b).WOR Oocuments.doc 3 Preventative June 15, 2003 This details OCSD's preventive maintenance Maintenance Delivered on schedule program for all collection system assets Program based on WDR requirements. Legal Authority July 30, 2004 This deliverable describes how OCSD will Delivered on schedule comply with all applicable WDR sections relating to establishing legal authority to control inflow and infiltration, sewer design and construction, installation and testing of dew or rehabilitated sewers, fats oils and grease and other debris, and the general and specific provisions of the national pretreatment order under CFR 403.5 Grease Disposal December 30, 2004 This report describes alternative methods for Alternatives Delivered on schedule grease disposal, prepared on behalf of all dischargers named in the WDR, including in- plant impacts. This was delivered on March 20, 2003. Grease Control December 30, 2004 This is OCSD's FOG ordinance to help Program Delivered on schedule prevent sewer spills caused by grease blockages. OCSD's objective is to develop and implement a FOG Source Control Program for Food Service Establishments. The program is designed to reduce FOG discharges into the sewer system, prevent sewage spills and protect public health and the environment. Food Service Establishments are a significant FOG contributor and must share the responsibility for reducing FOG. Capacity Evaluation July 30, 2005 OCSD's System Evaluation and Capacity Delivered on schedule Assurance Plan describes our capital improvement plan that will provide hydraulic capacity of key sewer system elements under peak flow conditions. It also includes steps to evaluate those portions of the collection system which are experiencing or contributing to an SSO discharge caused by hydraulic deficiency, estimates of peak flows (including flows from SSOs that escape from the system) associated with conditions similar to those causing overflow events, estimates of the capacity of key system components, hydraulic deficiencies (including components of the system with limiting capacity) and the major sources that contribute to the peak flows associated with overflow events. It also includes capacity enhancement measures to establish a short- and long-term capital improvement program to address identified hydraulic deficiencies including prioritization, alternatives analysis, and schedules and lans to update this information annually. H:\dep1\agenda\3oard Agenda Reportst2005 Board Agenda&Agenda ReponO 105\1tem 13(b).WDR Documents.doc 4 Sewer Rehabilitation September 30, 2005 This plan Identifies and prioritizes pipe Plan for Entire Delivered on schedule structural deficiencies and describes how System OCSD will implement short-term and long- term rehabilitation actions to address each deficiency. The rehabilitation plan includes schedules for rehabilitating the entire system, as necessary. It details plans for direct rehabilitation and replacement at sewer pipes which are at risk of collapse or prone to more frequent blockages due to pipe defects. The program also includes regular visual and TV inspection of sewer pipes and a system for assessing and ranking the condition of sewer pipes. The rehabilitation and replacement plan also includes a financial plan that properly manages and protects the infrastructure assets of the collection system. This plan links directly to the OCSD Strategic Plan. Final SSMP September 30, 2005 The Sewer System Management Plan is the Delivered on schedule main deliverable in responds to the WDR that details OCSD's plan and schedule to prevent SSOs. The SSMP is organized to correspond with each section of the WDR, and in includes the compliance summary for each requirement, all applicable compliance documents, and the division responsible for each SSMP element. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None Wdept\agenda\Board Agenda Reports\2005 Board Agenda&Agenda Repons\1105\I1em 13(b).WDR Documenis.doc 5 OMTS COMMITTEE Meeting Date To Bd.of Dir. 11/02/05 11/16/05 AGENDA REPORT Item Number Item Number OMTS05-53 13 c Orange County Sanitation District FROM: Patrick Miles, Director of Information Technology Originator: Pongsakdi Cady, Senior Information Technology Analyst SUBJECT: ELECTRONIC TIME ENTRY SYSTEM GENERAL MANAGER'S RECOMMENDATION Recommend to the Board of Directors to authorize the General Manager to finalize negotiations and subsequently award a contract to Workforce Software for Time Entry, Specification No. CS-2005-216BD, for technical consulting, implementation support and software purchase in the amount of $146,625, and a contingency of $28,375 for a total amount not to exceed $175,000. SUMMARY • The needs assessment conducted of the OCSD Financial Information System (FIS) determined that one of the least efficient processes at OCSD is the collection of time card data for the purpose of generating payroll. • Currently OCSD does not have an electronic Time Entry System. • OCSD personnel use Excel spreadsheets to enter time which is manually validated by payroll staff. • Some Operations & Maintenance labor data must be entered into the Computerized Maintenance Management System (CMMS) work order system and all OCSD time sheets are entered into ERP by the Payroll staff. • To improve accuracy in timekeeping and simplify the timekeeping process, Capital Improvement Project J-104 was developed and approved in the FY 2004/05 Budget. • A Request for Proposal (RFP) to implement a Time Entry System was issued in March 2005. The RFP adhered to established formal bidding requirements with four respondents submitting proposals for this service. • A panel comprised of representatives from Finance Department, Operations and Maintenance Department, Engineering Department, Public Affairs Department, Human Resources Department, and Information Technology Department interviewed the top three respondents in May. • In order to facilitate the development and negotiation of project schedules, resources and commitments, staff seeks authorization to enter negotiations and subsequently award an agreement for these needed services. • A detailed presentation was given to the Managers on 9/29/05. The Managers gave unanimous approval to present the acquisition and implementation of the WorkForce timekeeping system to Executive Management Team for approval and subsequent presentation to the OMTS Committee for final approval. PROJECT/CONTRACT COST SUMMARY The software cost is $53,625, implementation services cost is $86,000, training cost is $7,000, and contingency is $28,375 for a total cost of $175,000. The total project budget is $250,000. This agreement is an anticipated expense and there is sufficient funding for this agreement. The $175.000 amount represents the purchase and implementation contract plus any contingency. Contingency funding is requested due to the unforeseen cost of implementing necessary business process improvements discovered during the implementation. BUDGET IMPACT This item has been budgeted. (Line item: 2005-06 Budget Section 8, page 9 Project No. J-104) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION The Project Goals • The Project goal. as approved during the FY 2004/2005 budget process, is to implement a web based time entry program. • Benefits to be realized include: • An intuitive web-based time entry. • Account validation with the current CMMS and FIS system. • Improved data access and functionality. • Incorporation of necessary business process improvements. • Electronic signature approvals through the use of workflow. • The ability for managers and supervisors to delegate their approval authority when necessary. • E-mail reminder for time entry and approval. • On-line time off requests and approval. • Fair Labor Standards Act (FLSA) compliant. • By implementing an electronic time-entry system, OCSD expects to achieve organization-wide efficiencies. For instance, employees will submit and supervisors will approve timecards electronically rather than in a paper format. Paper timecards will no longer be physically delivered to payroll and payroll will no longer physically file paper timecards. Instead, timecards will be electronically batched by division, electronically submitted to payroll for review, and electronically stored by batch. • Time savings will be achieved organization-wide as timecards will only be prepared once. Currently, an employee prepares a timecard, accounting staff enters the timecard into the financial system, and maintenance division staff enters certain timecards into the CMMS system. Page 2 The Bidding Process This migration effort specified on the RFP includes all installation, project management, application and technical consulting services necessary to complete the implementation of the Time Entry System. • The request for proposal resulted in four viable responses (Hourdoc, Journeyx, Kronos, and Workforce Software). • Respondents' proposals were then judged by a panel comprised of Information Technology, Operations & Maintenance, Engineering, Human Resources, Public Affairs, and Finance staff. • The panel rated and scored the proposals based on qualifications, staffing, project organization, completeness and feasibility of approach. Pricing was deliberately omitted during this process. • The panel arrived at a short list of firms presenting the best ability to perform the requested implementation successfully. Proposal pricing was then revealed to narrow the selection to the three contractors brought on-site for software demonstration. • Pricing for the three interviewed companies ranged from a low around $125,000 to a high of $235,000. • The two companies rated the highest after the interview processes were asked to provide references for site visits. • Kronos provide us with a reference to US Borax in Wilmington, CA. On July 19th, the evaluation committee visited US Borax and talked to the user of the Kronos system. • WorkForce Software was not able to provide us with reference to a local site visit, but they did provide an internet site with the software loaded and configured. • The requested authorization will allow OCSD to set a start date and schedule that is most beneficial to OCSD and one that is compatible with existing work responsibilities. • The requested authorization enables OCSD to identify and secure the specific implementation team best suited to meet the unique requirements of OCSD. ALTERNATIVES Continue using the current timekeeping process. CEQA FINDINGS ATTACHMENTS None Page 3 OMTS COMMITTEE 11/02/05 To11/16/05 AGENDA REPORT Item Number Item Number ONTT505-54 13 d Orange County Sanitation District FROM: Robert Ghirelli, D.Env., Director of Technical Services Originator: Ed Torres, Manager of Environmental Compliance Services Div. SUBJECT: AWARD OF MAGNESIUM HYDROXIDE CONTRACT, SPECIFICATION NO. C-2005-244 GENERAL MANAGER'S RECOMMENDATION Receive and file Bid Tabulation and award a contract for the purchase of Magnesium Hydroxide, Specification No. C- 2005-244 to Hill Brothers Chemical Company at an initial delivered unit price of $1 .64 per gallon excluding sales tax, indexed to natural gas previous month's daily average NYMEX Henry-Hub gas base price of $13.25 per MMBtu and an escalation index factor of an additional $0.06 per gallon magnesium hydroxide for every increase of S1.00 above the indexed cost. SUMMARY • Continuous treatment with magnesium hydroxide is used for controlling hydrogen sulfide at the Bay Bridge, Newport Beach pump station. This treatment was effective in controlling the odor and reduces corrosion in the sewer pipe downstream of the treatment point. • The magnesium hydroxide treatment, which has been in effect since September 2002, was implemented primarily based upon cost considerations and the fact that it posed the least environmental risk. • Five vendors received Requests for Bids. Two did not respond and two were no-bids. Hill Brothers was the sole bidder. Based upon the base bid price of $1 .64 and an estimated daily usage of about 1 ,000 gallons per day, the estimated usage for the seven-month contract is $415,000. • Natural gas is used during various stages of magnesium hydroxide production. In order to offset the uncertainty in the production costs associated with the escalating natural gas prices, the bidder has stipulated indexing of the magnesium hydroxide price to the cost of natural gas. • The cost escalation factor as submitted by Hill Brothers is $0.06 per gallon of magnesium hydroxide for every increase of $1 .00 above the base: New York Mercantile Exchange, Inc. (NYMEX) Henry-Hub gas price of $13.25 per MMBtu. • Henry-Hub, in southern Louisiana, is the principal pricing point for USA natural gas market. It is the nexus of major natural gas pipeline systems that draws supplies from the region's gas fields and markets it to various regions within the USA. The recent surge in Henry-Hub gas price is largely attributed to the hurricanes. From approximately $2 per MMBTU in the 1990s, average natural gas prices rose to $4 per MMBTU from 2000 through 2004, and $5.40 per MMBTU in 2004. Over the last year, the Henry-Hub price had typically remained between $5 - $8 until hurricane Katrina. The Henry-Hub gas prices remain high as large amounts of offshore production are confined in the Gulf of Mexico. The October 7, 2005 closing Henry-Hub gas price was $13.226. PRIOR COMMITTEE/BOARD ACTION • Contract with Hills Brothers Chemical Company on February 27, 2002. • Specification No. C-2002-95BD and amendment to Specification No. C-2002- 83BD on June 26, 2002. PROJECT/CONTRACT COST SUMMARY The current contract expired August 2005. The General Manager is seeking Board approval to award the magnesium hydroxide solution contract to Hill Brothers Chemical Company for an estimated amount not to exceed $415,000.00; to cover seven-months until the start of the next contract period (coinciding with the new fiscal year), which includes the cost of chemicals, chemical feed equipment installation, and removal and monitoring. BUDGET IMPACT ❑ This item has been budgeted. (Line item: #52 ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Based upon a study conducted in the summers of 2000 and 2001 , magnesium hydroxide was selected because of its cost effectiveness and it being the most environmental friendly. Other chemicals evaluated at that time included calcium nitrate and a combination of ferrous chloride and peroxide. As the chemical dosing location at Bay- Bridge pump station is in close proximity to an ecological preserve, the choice of chemicals becomes very restrictive. Magnesium hydroxide is similar in composition to the pharmaceutical grade Milk of Magnesia and is safe, non-hazardous and does not cause burns. The proposed cost escalation index is imposed by the magnesium hydroxide producer that Hill Brothers contracts to purchase from. The base price is fixed and subject to escalation only. A de-escalation factor, in the event the natural gas price falls below the $13.25 per MMBtu index, is not available. A study will take place to reevaluate magnesium hydroxide in light of almost 25% price increase since 2001 and the potential of further price escalations. Specifically, besides H.ufepllagendaxBoard Agenda Reporw2005 Board Agenda&Agenda Repods\1 105U1em 13(d).Magnesium Hyd—de.doc Page 2 t� looking at calcium nitrate, staff will evaluate magnesium-lime slurries. This study is expected to occur over the next six-months; data will be available to facilitate a decision prior to the end of the current contract period. ALTERNATIVES Alternatives include selecting one of the other chemicals previously evaluated, or do nothing. Based upon the 2000-01 data, the other chemicals do not provide the equivalent cost effectiveness, or present siting and safety concerns that need to be addressed. The do nothing option results in further corrosion to the system and likely future structural failures of the trunklines in this system, as well as severe odors through Newport Beach leading into the headworks at Plant 2. CEQA FINDINGS N/A ATTACHMENTS Bid Tabulation H:ldeptagendalSw,d Agenda Repods12005 Board Agenda&Agenda ReporlsU IWIlem 10(d).Magnesium Hydroxide.doc Page 3 NIB TABULATION Magnesium Hydroxide SPEC NO. C-2005-244 September 27,2005 at 2:00 p.m. ADDENDA: 0 Project Manager's Estimate: $ Contract Budget:$ Unit Price per Frei phl per Total Olvd. Estimated Total F.O.B. CONTRACTOR Gallon Gallon Unit Price Usage Divd.LUMP Ina. Non-Coll. per Gallon SUM COST ACM-Texas,LLC No 1. Applied Chemical Ma nesias Corp. $1 Response 2. Bask Chemical Solutions.LLC $ No Bid 3. Gallade Chemical $ No Bid 4. Hill Bros. $ 1.64 1.767 417,012.00 5. Los Angeles Chemical Company $ P, Witnessed By: Buyer: M&2L '7 dS� PRINT NAME / SIGNATURE Date Witness P .03 yc�If1S 0 ��.pAQ) F,4,b AnA.9 9 Z7 �5 PRINT NAME SIGNATURE Date I have reviewed the bids submitted for the above project and find that the low bid is a responsible bid. i, therefore, recommend award to in the bid amount of$ as the lowest and best bid. "Grayed compartles did rwl attend MwWatwy Job Watk,therefore May cwvwt submit a SM.unless special permission was 9►aMed by the Buyer." -%X Bld--relsponded reply of-W Bfd "No Response-no response at an(even if attended Job vatWimeethtg(whedw mandatory or noQ} "Non4lesportaive-attended mandatory job wraWmeeting but submitted a'No Bid' "mid apenfts-Pleas hilbem everyone 09 Cu bid tsbutatlom wNl be posted by tornaaow on over bttw»et ales of wNw oCs d GorrL"' Y MINUTES OF PLANNING, DESIGN, AND CONSTRUCTION COMMITTEE MEETING Orange County Sanitation District Thursday, November 3, 2005, at 5 p.m. A meeting of the Planning, Design, and Construction Committee of the Orange County Sanitation District was held on Thursday, November 3, 2005, at 5 p.m., in the Sanitation District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: PDC COMMITTEE MEMBERS: Directors Present: STAFF PRESENT: Tod Ridgeway, Chair Bob Ghirelli, Acting General Manager Norm Eckenrode, Vice Chair David Ludwin, Director of Engineering Charles Antos John Linder, Engineering Manager Alberta Christy Tod Haynes, Construction Manager Larry Crandall Jim Burror, Engineering Supervisor Doug Davert Wendy Sevenandt, Project Manager Patsy Marshall Dave May, Project Manager Roy Moore Olga Cervantes, Principal Contracts Administrator Harry Sidhu Jennifer Cabral, Public Information Specialist Penny Kyle, Committee Secretary Directors Absent: Steve Anderson, Board Chair OTHERS PRESENT: Jim Ferryman, Board Vice Chair Chuck Lake, Spec Services (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were none. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Tod Ridgeway had no report. r PDC Committee Minutes Page 2 November 3, 2005 (5) REPORT OF THE GENERAL MANAGER Bob Ghirelli, Acting General Manager, made the following announcements: - Nick Arhontes, Director of Regional Assets, received the Collections System Manager of the Year Award at the WEFTEC conference; - On December 2, 2005, the Sanitation District will be hosting Senator Flores from Central Valley; - A FEMA Grant for$900,000 for a portion of the SARI work has been confirmed; -The Sanitation District, along with Inland Empire Utilities Agency, Los Angeles County Sanitation Districts, Eastern Municipal Water District and Western Municipal Water District, are continuing due diligence for property in Chino Basin for a biosolids composting facility. (6) REPORT OF THE DIRECTOR OF ENGINEERING David Ludwin, Director of Engineering, reported there were no change orders for approval on the agenda for the month of November. An analysis on incorporating a design/build concept for the Sanitation District was scheduled to be presented in February 2006. The analysis would include policy recommendations that would need to be approved by the Board of Directors. The Committee advised staff that legislative language would need to be considered and placed on the legislative agenda prior to February, and directed staff to contact General Counsel and Scott Baugh for direction. Mr. Ludwin advised that staff was meeting with General Counsel, the insurance broker, and other appropriate staff to review indemnification language and insurance limits for professional service agreements and construction contracts. This issue should be brought to the PDC Committee and Board of Directors for consideration in the next few months. A contract for emergency repairs to the SARI line was awarded to Ken Thompson for$1.35 million. Director Ridgeway requested the Committee Directors be given a tour of the area to better understand the issues surrounding the SARI line. (7) REPORT OF GENERAL COUNSEL General Counsel was not present. (8) CONSENT CALENDAR a. Receive, file, and approve minutes of the October 13, 2005 Planning, Design, and Construction Committee Meeting. b. Receive, file and approve minutes of the October 4, 2005 Cooperative Projects Grants Committee Meeting. PDC Committee Minutes Page 3 November 3, 2005 C. CHANGE ORDER REPORTS There were no change orders this month. d. PSA AND AMENDMENT REPORT Attached is the PSA and Amendment Report. This is an information only item. Action on PSAs and Amendments that require PDC Committee or Board approval will be taken separately. There were no PSAs and no Amendments approved by the General Manager from September 23 through October 20, 2005. e. FACILITIES ENGINEERING CONSULTANT ACTIVITY REPORT Attached is the Facilities Engineering Consultant Activity Report. This is an information only item. f. 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. g. BUSHARD TRUNK SEWER REHABILITATION REPORT Attached is the Bushard Trunk Sewer Rehabilitation Report. This is an information only item. MOTION: It was moved, seconded, and duly carried to approve the recommended actions specified as Items 8(a) through (g). END OF CONSENT CALENDAR (9) ACTION ITEMS (Items a-g) a. PDC05-107 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to cancel the current Professional Services Agreement contract with ADS Environmental for the Long Term Flow Monitoring Program, Job No. J-73-2. b. PDC05-108 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to (1) Approve Plans and Specifications for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, on file at the office of the Board Secretary; (2)Approve Addenda Nos. 1, 2, 3, and 4 to the plans and specifications; (3) Receive and file bid tabulation and recommendation; and (4) Award a construction contract to J.F. Shea, Inc. for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, for an amount not to exceed $9,887,981. Director Davert abstained. PDC Committee Minutes Page 4 November 3, 2005 C. PDC05-109 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve a budget increase of$2,000,000 for the construction of the Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for a total budget amount of$21,652,000. d. PDC05-110 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 8 to the Professional Services Agreement with SPEC Services, Inc. for Standby Power and Reliability Improvements to Treatment Plant Nos. 1 and 2, Job No. J-33-1, providing for additional engineering services for an additional amount of$134,500, increasing the total amount not to exceed $3,359,932. e. PDC05-111 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 2 to the Professional Services Agreement with Tetra Tech, Inc. providing for additional engineering services for Gisler-Redhill Trunk Improvements, Reach "B", Contract No. 7-37, for an additional amount of$194,400, increasing the total amount not to exceed $555,780. f. PDC05-112 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to (1) Approve time extensions to Cooperative Project Contract Agreements: Contract No. 0401 with the City of Anaheim; Contract No. 0408 with the City of Fullerton; Contract No. 0208 with the City of Huntington Beach; Contract No. 0127 with the City of La Habra; Contract No. 0412 with the City of La Palma; Contract No. 0130 with the City of Orange; and Contract No. 0416 with the City of Villa Park; and, (2) Approve additional funding in the amount of$107,201 for Contract No. 0415 with Sunset Beach Sanitary District, increasing the total amount not to exceed $352,201. g. PDC05-113 Directors discussed the alternatives and savings for doing a portion of the construction management services in house or having EarthTech perform and oversee the entire project. Directors requested a full analysis be conducted and submitted to the Board of Directors for approval at either the full amount of$2,052,593 or reduced services at $1,050,016. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Professional Services Agreement with EarthTech providing for Construction Management services for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, for an amount not to exceed $2,052,593. (11) CLOSED SESSION There was no closed session. (12) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. PDC Committee Minutes `\ Page 5 November 3, 2005 (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 1, 2005, at 5 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 6:11 p.m. Submitted by: Z-z'`2�� 111_ Penny M. Kyle PDC Committee Secre ary H:ldeptlagenda\PDC120051Minutes1110305 PDC Minutes.doc PDC COMMITTEE Meeting Date To Bd.of Dir. 11/03/2005 11/16/05 AGENDA REPORT Item Number Item Number PDC05-107 14 b Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Adam Nazaroff, Associate Engineer III SUBJECT: LONG TERM FLOW MONITORING PROGRAM, JOB NO. J-73-2 GENERAL MANAGER'S RECOMMENDATION Cancel the current professional services agreement contract with ADS Environmental for the Long Term Flow Monitoring Program, Job No. J-73-2. SUMMARY • The Orange County Sanitation District (Sanitation District) initiated a comprehensive program to reduce wet weather flows caused by rain dependent infiltration and inflow (1/1) by 20%, or 50 mgd, as part of the implementation of the Sanitation District's Strategic Plan. One of the key elements of this reduction program was the five-year Long Term Flow Monitoring Program (Program), Job No. J-73-2. • The $6 million Program consisted of locating flow meters throughout the Sanitation District to monitor wastewater flows on a continuous basis for a period of five years. The goals of the Program was to characterize 1/1 types and locate where 1/1 was occurring has been completed in Year 3, but two years, or approximately $600,000, remain in the vendors contract that needs to be cancelled. • The Program results indicate the following: • Groundwater infiltration can be a significant along coastline, and may be significant in smaller localized inland areas. However, groundwater infiltration is not a significant contributor of the large flows at the treatment works during storm events. • Direct rainfall inflow is a significant contributor to wastewater flow at the treatment works during storm events. Also. that the areas with the highest recorded rainfall inflows are owned and operated by the local agencies and were identified by the Program. • The top 18 leakiest areas produce about 37% (about 62 MGD) of the direct rainfall inflow. The remaining portion of the 1/1 flow seen at the treatment works is diffuse, transient, and is not economical to determine. However, the 62 MGD is more than the Sanitation District's 50 MGD goal. H\depMgenda\Board Agenda Reports\2005 Board Agenda&Agenda Reports\1105\hem 14(b).J-73-2.doc Revised. 06/04/03 Page 1 • Additional study work is needed in the identified local agencies collection systems to specifically determine how rain water is entering the system (i.e. aging sewer infrastructure, illegal connections, pool drains, or other unauthorized connections). These studies are also needed to identify the necessary repairs in those areas. • The results from last year's record storms were also presented to the Board's Cooperative Projects Program Committee on October 4, 2005. • Because the results indicate that the leakiest areas are within the local agencies systems, the Sanitation District staff recommends addressing these area with Cooperative Projects Program grants for the following reasons: • The program's flow monitors will not provide the additional information on how water enters the collections system in the leakiest areas. • The leakiest areas require Sanitary Sewer Evaluation Studies (SSES) that include smoke testing, visual inspections, night time flow isolations, and recommendations for repairs. The costs for these services generally range from $100.000 to $200,000 for each location. The remaining contract funds with ADS Environmental Services (ADS) would only cover only up to five of the 18 leakiest areas. • SSES areas are solely within the local agencies service areas and require a tremendous amount of coordination effort for the Sanitation District staff to perform the work. This is because the Sanitation District does not have jurisdiction over the local agencies infrastructure. The local agencies are required to endorse the entire testing and notification process; moreover each agency has different protocols and scheduling requirements for these types of tests. • At this time. the Sanitation District does not have the staffing resources to oversee 18 new projects. • The Sanitation District's Cooperative Projects Program is established and has been funding these types of efforts since 1999. This includes Sanitation District staff to support the Cooperative Projects Program. • The other alternatives for the Program including the following: • No Change — Continuing to monitor the same basins as last winter. However, the Sanitation District staff feels that this will not yield any new information at a cost of $600,000. • Relocate existing meters to further break up the "leaky" basins under the existing contract with ADS. This may not yield any new information. because the areas KWept\agenda\Board Agenda Repons\2005 Board Agenda&Agenda Reporwt 105Utem 14(b).J-73.2.doc Revised 06/04/03 Page 2 e are already small enough to find the inflow locations using SSES's. Also, this effort is not within the current contract budget and will require an estimated $200,000 amendment to the contract. • Remove existing meters and perform Sewer System Evaluation Studies (SSES) on up to 5 the "leaky" basins under the ADS contract. This will yield good results for those basins, but will require a tremendous amount of coordination effort for the Sanitation District to perform the work. This is because the Sanitation District does not have jurisdiction over the local agencies infrastructure. The local agencies are required to endorse the entire testing and notification process; moreover each agency has different protocols and scheduling requirements for these types of tests. • Sanitation District staff feels that the goals of this Program have been met and additional flow monitoring will not yield new information, without significant modifications, and should be cancelled. Furthermore, the results of this program should be used to influence the Cooperative Projects Program grants to ensure that the Sanitation District's 1/1 reduction goals are met, minimizing the need for additional capital facilities at the treatment works. PRIOR COMMITTEE/BOARD ACTIONS PDC —3/02/2000 - Authorized staff to prepare a Request for Proposal for the development for a Long-Term Flow Monitoring Program, Job No. J-73-2. PDC — 10/25/2000 - Approved a Professional Services Agreement with ADS Environmental Services for Long Term Flow Monitoring Program, Job No. J-73-2, for an amount not to exceed $6,187,400. PDC —04/04/02 - Approved a Sole Source Purchase Order to AT&T Wireless for phone service related to Long Term Flow Monitoring Program, Job No. J-73-2, in an amount not to exceed $165,000. PDC - 11/6/03— (1) Approved a budget Amendment of $4,222,000, for Long Term Flow Monitoring Program, Job No. J-73-2, for a project budget of$7,074,000; and (2) Approved 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. PDC — 1/28/04— Approve Amendment No. 3 to the Professional Services Agreement with ADS Environmental Services for Long Term Flow Monitoring Program, Job No. J-73-2, waiving the requirement for Errors and Omissions insurance with no change to the total contract amount not to exceed $6,337,400. CPP — 10/4/2005 — Informational Item regarding the results of the FY04/05 winter from the Long Term Flow Monitoring Program, Job No. J-73-2. H:\dept\agenda\Board Agenda Reports\2005 Board Agenda&Agenda Reports\1105\Item 14(b).J-73-2.doc Revised: W04/03 Page 3 f PROJECT/CONTRACT COST SUMMARY Please see the attached Budget Information Table BUDGET IMPACT ® This item has been budgeted. (Line item: Section 8 - Page 122) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION A Professional Services Agreement (PSA) was awarded to ADS by the Sanitation District's Board of Directors on October 25, 2000, in the amount of $6,187,400, to perform flow monitoring activities. During the 2004-2005 Winter, monitoring focused on the leakiest basins from previous year's monitoring efforts. This included breaking up the leakiest basins into smaller basins; the results were an overall reduction in total flow number of monitors from 138 to 72. Staff discussed the potential recommendation for removal of existing meters and termination of the Sanitation District's existing flow monitoring contract (Job No. J-73-2) under the Informational Agenda Report at the Cooperative Projects Committee on October 4, 2005. The Committee agreed with moving the recommendation forward to the Planning, Design, and Construction Committee (PDC) for consideration. The Committee also recommended that the PDC Committee consider how information from the Sanitation Districts flow monitoring analysis and overall 1/1 control strategy might be incorporated into the Cooperative Projects Grants Program at their next regularly scheduled meeting. A power point presentation will be given by staff. ALTERNATIVES 1) No Change —Continuing to monitor the same basins as last winter. 2) Relocate existing meters to break up the "leaky" basins under the existing contract with ADS. This will require an amendment to the contract and possibly more funds to re-locate the meters. 3) Remove existing meters and perform Sewer System Evaluation Studies (SSES) on the "leaky" basins under the ADS contract. H:\dept\agenda\Board Agenda Reports\2005 Board Agenda&Agenda Repor1s\1105\Item 14(b).J-73-2.doc Revised: W04/03 Page 4 t k These studies include smoke testing, TV inspections, and manhole plugging programs to find and eliminate illegal conditions in the basins. This would also require a contract amendment and can use up whatever funds are left. CEQA FINDINGS This project is exempt from CEQA ATTACHMENTS Budget Information Table AN:sa HAntglobalWgenda Draft Reports\PDC\AR for Winter 2004_05_Results_v03-doc H:\dept\agenda\Board Agenda Reports\2005 Board Agenda d Agenda Repor1s11105\Item 14(b).J-73-2.doc Revised: 06/04/03 Page 5 BUDGET INFORMATION TABLE LONG TERM FLOW MONITORING PROGRAM Job No.J-73-2 ORIGINAL' CURRENT PROPOSED ' PROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED BUDGET PROJECT/PHASE AUTHORIZED PROJECT REVISED' AUTHORIZED TO AUTHORIZATION TOTAL, EXPENDITURE EXPENDED TO BUDGET BUDGET INCREASE BUDGET DATE REQUEST::: AUTHORIZATION TO DATE DATE(%) /DECREASE Phase 1 -Project Development $ 58,000 Phase 2-Preliminary Design $ 2,000 Phase 3-Design $ 33,000 Phase 4-Construction $ 6,613,400 $ 6,781,000 $ 6,781,000 $ 6,781,000 $ 587.479 $ 6.193,521 $ 6.004595 97% Phase 5-Commissioning Phase 6-Close-Out Phase 7-Contingency $ 367,600 $ 293,000 $ 293,000 PROJECT TOTAL $ 7,074,000 $ 7,074,000 $ 7,074,000 $ 6.781,000 1$ (587,479) $ 6,193,521 1 $ 6.004,595 97% Reimbursable Costs PROJECT NET $ 7,074,000 1 $ 7.074,000 $ 7,074,000 11 $ 6,781,000 1 $ 6,193,521 1 $ 6,004,595 97% PSA/Contract Design PSA-Flow Monitoring $ 6.187,400 $ 6,337,400 $ 6,337,400 $6,337,400 $ 593,479 $5.743,921 $ 5,743,921 100% Construction Contract EDMS: 3,798,641 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/3/05 11/16/05 AGENDA REPORT Item Number Item Number PDC05-108 14 c Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Kathy Millea, CIP Project Manager SUBJECT: REHABILITATION OF THE ACTIVATED SLUDGE PLANT AT PLANT NO. 2, JOB NO. P2-74 GENERAL MANAGER'S RECOMMENDATION (1) Approve Plans and Specifications for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, on file at the office of the Board Secretary; (2) Approve Addenda Nos. 1, 2, 3, and 4 to the plans and specifications; (3) Receive and file bid tabulation and recommendation; and (4) Award a construction contract to J.F. Shea, Inc. for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, for an amount not to exceed $9,887,981 . SUMMARY • Job No. P2-74 is one of four projects designated by the Capital Improvement Program (CIP) as required in order to meet the District's goal of Secondary Standards. It has an EPA Consent Decree date of January 15, 2009 to complete construction. There is no penalty associated with the consent date as this project does not add treatment capacity. • The purpose of this project is to ensure that the Activated Sludge Plant at Plant No. 2 can operate at its designated capacity with a high degree of reliability. The original aeration basins and secondary clarifiers are over 20 years old and in need of equipment replacement. • MWH Americas, Inc. completed the plans and specifications for Job No. P2-74 in July 2005. Sealed bids were received on September 13, 2005. Summary information on Job No. P2-74 is as follows: Project Budget: $14,841,000 Construction Contract Budget: $ 9,133,578 Engineer's Estimate: $ 8,800,000 Lowest Responsive Bid: $ 9,887,981 High Bid: $11 ,477,000 Number of Bids: 2 Page 1 i • The construction bid came in approximately $1 .1 million higher than the Engineer's r estimate. The Engineer's estimate was completed a few months before the bid Yl,, opening and the current construction market escalated the construction cost beyond anticipation. • The Director of Engineering recommends the award of the construction contract for the Rehabilitation of the Activated Sludge Plant at Plant No. 2. Job No. P2-74, to the lowest responsible bidder, J.F. Shea, Inc. in an amount not to exceed $9,887,981 . PRIOR COMMITTEE/BOARD ACTIONS Approval of Professional Services Agreement (PSA) with MWH Americas, Inc. in February 2004. PROJECT/CONTRACT COST SUMMARY Authorization of $9,887,981 for construction is being requested. BUDGET IMPACT ® This item has been budgeted. (Line item: 2005-06 cIP Budget, Section 8, Page 58) ❑ This item has been budgeted, but there are insufficient funds ❑ This item has not been budgeted. ❑ Not applicable (information item) A budget reallocation of $760,000 from Contingency to Phase 4, Construction is being requested. Please see the attached Budget Information Table. ADDITIONAL INFORMATION The project includes many modifications to the existing facility including recoating large diameter piping, replacing the electrical motor and drive in the pump station, adding odor control to the influent splitter box, replacing the aerator impellers, replacing the inlet and flow isolation gates, replacing gate actuators, replacing piping and hose bibs, adding additional instrumentation and automation. and other minor facility modifications. The District's Board of Directors approved the PSA with MWH Americas, Inc. in February 2004 to provide design services for the Rehabilitation of the Activated Sludge Plant at Plant No. 2. The design was completed in June 2005 and advertised for bid on July 5, 2005. Sealed bids were received on September 13, 2005. Please refer to the attached Bid Tabulation for additional bidder information. ALTERNATIVES None Page 2 t CEQA FINDINGS Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, was included in the Secondary Treatment and Plant Improvement Project Subsequent Environmental Impact Report (SEIR). The SEIR was certified on May 25, 2005 and a Notice of Determination was filed on May 26, 2005. ATTACHMENTS 1. Budget Information Table 2. Bid Tabulation 3. Bid Summary KM:eh H:\ntglobal\Agenda Draft Reports\PDC\P2-74 AR(Award Construction Contract only) PDC 110305.doc Page 3 BUDGET INFORMATION TABLE REHABILITATION OF THE ACTIVATED SLUDGE PLANT AT PLANT NO. 2, JOB NO. P2-74 PROPOSED ORIGINAL CURRENT PROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED,'; BUDGET PROJECT/PHASE AUTHORIZED PROJECT REVISED AUTHORIZED TO AUTHORIZATION TOTAL EXPENDITURE EXPENDED TO BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE DATEtlAi , ,j /DECREASE Phase 1-Project Development $ 100,000 $ 309,000 $ 309.000 $ 309,000 $ 309,000 $ 309,000 100% Phase 2-Preliminary Design $ 383.218 $ 189.000 $ 189,000 $ 189,000 $ 189,000 $ 189,000 100% Phase 3-Design $ 2,299,311 $ 2,144,000 $ 2,144.000 $ 2,144,000 $ 2,144,000 $ 2,117,000 99% Phase 4-Construction $ 14,817,780 $ 10.509,000 $ 760,000 $ 11,269,000 $ 1,100,000 $ 9,887,981 $ 10,987,981 $ - 0% Phase 5-Commissioning $ 255,478 $ 290,000 $ 290,000 $ 270,000 $ 270,000 $ 0% Phase 6-Close-Out $ 63,870 $ 50,000 $ 50,000 $ 40,000 $ 40,000 $ 0% Phase 7-Contingency $ 2,554,790 $ 1,350,000 $ 760,000 $ 590,000 $ - $ - $ $ 0% PROJECT TOTAL $ 20,474,447 $ 14,841.000 $ $ 14,841,000 $ 4,052,0001 $ 9,887,981 1 $ 13,939.981 1 $ 2,615,000 1904 Reimbursable Costs PROJECT NET $ 20,474,447 $ 14,841,000 $ - $ 14,841,000 $ 4,052,000 $ 9,887,981 $ 13,939,981 1 $ 2,615,000 19% PSAIContract Design PSA $ 2,196,626 $ 2,139,998 $ 2,139,998 $ 2.139,998 $ 2,139,998 $ 1,810,000 85% Construction Contract $ 12,909,671 $ 9,130,000 $ 757,981 $ 9,877.981 $ $ 9,887,981 $ 9,887,981 $ - 0% 3798508 Nov 2005 POC M6 September 13, 2005 11:00 a.m. ADDENDUM NO. 4 BID TABULATION REHABILITATION OF THE ACTIVATED SLUDGE PLANT AT PLANT NO. 2 JOB NO.P2-74 Engineer's Estimate: $8,800,000 Construction Contract Budget: $9,133,578 CONTRACTOR TOTAL BID 1. J.F. Shea Construction, Inc. $ 9,887,981 2. Tutor-Saliba Corporation $ 11,477,000 3. $ 4. $ 5. $ 6. $ 7. $ 8. $ 1 have reviewed the proposals submitted for the above project and find that the low bid is a responsible bid. I, therefore, recommend award to J.F. Shea Construction, Inc. in the bid amount of$9,887,981 as the lowest and best bid. David A. Ludwin, P.E. Director of Engineering DAL:KM:jo:kf 003797215 Revised 05/19/98 OCSD • P.O.Box 8127 . Fountain Valley,CA 92728-8127 • (714) 962-2411 BID SUMMARY REHABILITATION OF THE ACTIVATED SLUDGE PLANT AT PLANT NO. 2 JOB NO. P2-74 J.F. SHEA CONSTRUCTION, INC. TUTOR-SALIBA CORPORATION Item Approx.Qty Unit Total Unit Total No. Price Price Price Price 1 1 Lump Sum $ 1.00 $ 1.00 $ 1,000.00 $ 1,000.00 2 1 Lump Sum $ 9,399,980.00 $ 9,399,980.00 $ 10,656,000.00 $ 10,656,000.00 3 1 Lump Sum $ 200,000.00 $ 200,000.00 $ 200,000.00 $ 200,000.00 4A. 1 Lump Sum $ 99,500.00 $ 99,500.00 $ 260,000.00 $ 260,000.00 4B. 1 Lump Sum $ 56,000.00 $ 56,000.00 $ 160,000.00 $ 160,000.00 4C. 1 Lump Sum $ 32,500.00 $ 32,500.00 $ 90,000.00 $ 90,000.00 5 1 Lump Sum $ 100,000.00 $ 100,000.00 $ 110,000.00 $ 110,000.00 SUBTOTAL $ 9,887,981.00 $ 9,887,981.00 $ 11,477,000.00 $ 11,477,000.00 `Add(+)or Delete(-) $ - $ - $ - 1$ - Total Amount of Bid $ 9,887,981.00 $ 11,477,000.00 J.F. SHEA CONSTRUCTION, INC. TUTOR-SALIBA CORPORATION EDMS: 003797214 Bid Date: 9/13/05 PDC COMMITEE Meeting Date To Bd.of Dir. 11/03/05 11/16/05 AGENDA REPORT Item Number Item Number PDC05-109 14 d Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Alberto Acevedo, Project Manager SUBJECT: NEWPORT TRUNK SEWER AND FORCE MAINS, BITTER POINT PUMP STATION TO COAST TRUNK SEWER, CONTRACT NO. 5-58 GENERAL MANAGER'S RECOMMENDATION Approve a budget increase of $2,000,000 for the construction of the Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for a total budget amount of $21 ,652,000. SUMMARY • This project is required to replace the existing sewer lines which are not currently sized or configured to work with the proposed upgrades to the Bitter Pont Pump Station. The Bitter Point Pump Station upgrades are currently in design and include a large capacity increase. • The new project will include installation of: approximately 8,500 feet of 36-inch sewer force main: 3,500 feet of 12-inch gravity sewer to connect the Armstrong Oil Field to the existing Bitter Point Pump Station; a tunnel approximately 1 ,370 feet to cross the Santa Ana River; a tunnel approximately 238 feet inside Plant No. 2; 170 feet of 54-inch gravity sewer inside Plant No. 2; and installation of approximately 6,500 feet of fiber optic ductbank. The fiber optic ductbank is required to provide direct communications between the future Bitter Point Pump station and the Control Center in Plant No. 2. • The design is complete and the project is ready to be advertised for bids. • The Consultant's final construction cost estimate is $2 million dollars higher than the S15,019,867, which is included in the existing budget. This increase in cost is due to underground construction that is required to be deeper than anticipated to avoid conflicts with exiting utilities, and the addition of the fiber optic ductbank. The fiber optic ductbank will extend from Plant No. 2 to the Bitter Point Pump Station and be used for remote operation, monitoring and security. • As required by Delegation of Authority, staff is requesting this budget increase prior to releasing this project for public bidding. Revised: 06/04/03 Page 1 PRIOR COMMITTEE/BOARD ACTIONS Please see the attached Professional Services Agreement Status Report. PROJECT/CONTRACT COST SUMMARY Please see the attached Budget Information Table. BUDGET IMPACT ❑ This item has been budgeted. ® This item has been budgeted, but there are insufficient funds. (Line item: Section 8, page 27). Approval of this budget increase is being requested to insure that sufficient budget is available for the construction of the recommended facilities designed under this project. The construction budget increase of $2,000,000 is being requested. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION ALTERNATIVES No viable alternatives. CEQA FINDINGS This Board certified the Final Environmental Impact Report for the implementation of the Newport Trunk Sewer and Force Mains Replacement Project at the March 2005 meeting. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report AAC:ba:eh H:\ntglobahAgenda Draft Reports\PDC\5-58 CONSTRUCTION COST AR.doc Revised: W04/03 Page 2 + � J BUDGET INFORMATION TABLE NEWPORT TRUNK SEWER AND FORCE MAINS, BITTER POINT PUMP STATION TO COAST TRUNK SEWER CONTRACT NO. 5 -58 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS ESTIMATED ESTIMATED AUTHORIZED PROJECT BUDGET PROPOSED TOTAL PROJECT/PHASE REVISED AUTHORIZED TO AUTHORIZATION EXPENDITURE EXPENDED TO BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE DATE(%) 200412005 200512006 /DECREASE Project Development $ 128,000 $ 155,000 $ 155.000 $ 155,000 $ 155,000 $ 162,838 105% Preliminary Design $ 638,000 $ 789,000 $ 789,000 $ 789,000 $ $ 789,000 $ 800,305 101% Design $ 1,159,000 $ 909,000 $ 909,000 $ 909.000 $ $ 909,000 $ 673,334 74% Construction $ 17,054,000 $ 15.908.000 $ 2,000,000 $ 17,908,000 $ 814,500 $ $ 814,500 $ - Commissioning $ 176,000 $ 117.000 $ 117,000 $ 67,000 $ 67,000 $ Close-Out $ 47,000 $ 41,000 $ 41,000 $ 19,600 $ 19,600 $ Contingency $ 1,733,000 $ 1.733,000 $ 1,733,000 $ $ - $ - 0% PROJECT TOTAL 1 $ 20,935,000 1 $ 19.652,000 1 $ 2,000,000 1 $ 21,652,000 1 1 $ 2,754,100 1 $ $ 2,754,100 1 $ 1,636,477 1 59% Reimbursable Costs PROJECT NET I $ 20,935,000 $ 19,652,000 $ 2,000,000 $ 21,652,000 $ 2,754,100 $ $ 2,754,100 1 $ 1,636,477 1 59% PSA/Contract Design PSA $ 1,030,700 $ 1,030,700 1 $ $ 1,030,700 $ 1,018,907 $ $ 1,018,907 Construction Contract $ 15,666,000 $ 15.019,867 $ 2,000,000 $ 17.019,867 $ - $ - EOMS1003798256 10/27/2005 Professional Services Agreement Status Report NEWPORT TRUNK SEWER AND FORCE MAINS, BITTER POINT PUMP STATION TO COAST TRUNK SEWER CONTRACT NO. 5-58 Total Project Budget: $13,926,265 Consultant: Black & Veatch Corporation Start Date of Project: January 5, 2004 Date Amendment Description Cost Accumulated Costs Pending Original PSA Design engineering services for Newport Trunk Sewer and Force Mains, Bitter point Pump Station to Coast trunk $1,018,907 $1,018,907 Sewer. RS:jo EDMS: 003757689 10/27/05 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/03/05 11/16/05 AGENDA REPORT Item Number Item Number PDC05-110 14 e Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Dean Fisher, CIP project Manager SUBJECT: STANDBY POWER AND RELIABILITY IMPROVEMENTS TO TREATMENT PLANT NOS. 1 AND 2, JOB NO. J-33-1 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 8 to the Professional Services Agreement with SPEC Services, Inc. for Standby Power and Reliability Improvements to Treatment Plant Nos. 1 and 2, Job No. J-33-1 , providing for additional engineering services for an additional amount of $134.500, increasing the total amount not to exceed $3,359,932. SUMMARY • This project upgrades or replaces many existing electrical equipment items at both treatment plants that were determined to be deficient by prior electrical studies. • Due to limited manpower, the Engineering Department has been utilizing SPEC Services, Inc. to provide construction contract management services throughout the construction period. This Amendment No. 8 extends these construction services for eight months (until April 2006) in order to complete the work on Job No. J-33-1 A. • The project is currently behind schedule and the latest forecasted completion is April 2006. This project schedule has been affected by several factors including the inability of the plant to support the shutdown schedule, required changes to the equipment and contractor performance. • A proposal letter from SPEC Services, Inc. is attached indicating an amount of $134,500 to provide staffing for the anticipated additional eight-month span of construction and the additional services described above. PRIOR COMMITTEE/BOARD ACTIONS Please refer to the attached Professional Service Agreement (PSA) Status Report for all previous General Manager, Committee, and Board actions. PROJECT/CONTRACT COST SUMMARY Approval of Amendment No. 8 is being requested in the amount of $134,500, as shown in the attached Budget Information Table. If approved. this will be added to the Phase 4 Page 1 Construction Budget. The total revised contract amount with SPEC Services, Inc. after Amendment No. 8 is $3,359,932. Project contingency is available to cover this request. BUDGET IMPACT E This item has been budgeted. (Line item: FY 2005-6 CIP, Section 8, Page 75) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Background Job No. J-33-1, Standby Power and Reliability Improvements, involves the upgrade or replacement of many existing electrical equipment items at both treatment plants that were determined to be deficient by prior electrical studies. The Board of Directors awarded a PSA to SPEC Services, Inc. at the September 1998 meeting. The original design Scope of Work called for preparation of drawings, specifications, cost estimates, and support services during construction for all items listed in the project scope. In October 1999, the Board of Directors approved Amendment No. 1 to the PSA for additional work elements required for implementing the accelerated schedule for the Plant No. 2 Headworks Standby Power Facility, and for support of Motor Control Center (MCC) replacements and Central Generation generator control wiring revisions. In December 2000, the Board of Directors approved Addendum No. 2 to the PSA for construction contract management services to support the construction of Job No. J-33-1 A. Amendment Nos. 3 and 4 were approved by the General Manager in May 2002 and June 2002, for incidental work associated with Job No. J-33-1 to research and review area classification issues. Amendment No. 5 was approved by the Board of Directors in August 2003 for additional construction services relating to the Job No. J-33-1 A construction contract. This extension of services was limited to a one-year extension due to unresolved construction issues regarding worker safety in electrically classified areas. At that time, Staff was working with legal counsel to resolve the contract issues and the contract completion was uncertain. A one-year extension to the construction support was requested in order to keep the project staffed during this process. Amendment No. 6 was approved by the Board of Directors in July 2004. for additional construction services relating to Job No. J-33-1 construction contract. Once the worker safety issues had been resolved and the contractor resumed work in all areas, an Page 2 amendment was approved to continue the resident engineer services until the .� forecasted completion and closeout anticipated in February 2005. Amendment No. 7 was approved by the Board of Directors in May 2005 for additional construction services as well as design services to determine relay coordination and record drawing preparation. Amendment No. 8 is requested to continue the resident engineering construction services that are being provided by SPEC Services to support the construction effort. This construction schedule has suffered delays due to several factors including the plant's inability to support the shutdowns required by the construction schedule, several contract changes to the equipment, and contractor performance. Keeping the resident engineer on this project will help complete the construction and provide consistency. This project affects a large portion of the plant and there is a significant amount of coordination between the contractor and other Sanitation District departments. Work on this project requires close coordination between two other projects which are currently working in the same areas and all of which affect the plant operation. The service provided by SPEC Services, Inc. has been very effective and it is staff's recommendation that this service continue until the project is completed to maintain consistent project communication and technical guidance. ALTERNATIVES The Construction Management Division could use the services of IPMC to staff this project. New staff would not be as qualified, nor have the continuum of job knowledge of the SPEC Services, Inc. staff. CEQA FINDINGS This project is included in the Strategic Plan EIR, certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. ATTACHMENTS 1. Budget Information Table 2. Professional Services Agreement Status Report 3. Proposal Letter from SPEC Services, Inc. dated October 3, 2005. DF:eh H:\ntglobal\Agenda Draft Reports\PDC\J-33-1 AR Amend No 8 PDC 110305.doc Page 3 BUDGET INFORMATION TABLE STANDBY POWER AND RELIABILITY IMPROVEMENTS JOB NO. J-33-1A ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS.' PROPOSED ESTIMATED ESTIMATED PROJECTITASK AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED TO AUTHORIZATION TOTAL EXPENDITURE TO EXPENDED BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION DATE TO DATE(%) Phase 1 -Project Development $ 457,000 $ 457,000 $ 457,000 $ 457,000 $ 457,241 100% Phase 2-Preliminary Design $ 375,000 $ 375,000 $ 375,000 $ 375,000 $ 374,630 100% Phase 3-Design $ 3,202,000 $ 3,202,000 $ 3,202,000 $ 3,202,000 $ 3,201,580 100% Phase 4-Construction $14,598,000 $ 134,500 $14,732,500 $ 14.410,608 $ 134,500 $ 14.545,108 $ 13.473.700 93% Phase 5-Commissioning $ 110,000 $ 110,000 $ 110,000 $ 107,000 $ 41,210 39% Phase 6-Closeout $ 37,000 $ 37.000 $ 37,000 $ 35,000 $ - 0% Contingency $ 250,000 $ 134,500 $ 115,500 PROJECT TOTAL 1 $ 19,856,000 1 $19,029,000 1 $ $19,029,000 :_ $ 18,591,608 $ 134,5001 $ 18,721,1081 $ 17,548,361 1 94% Reimbursable Costs PROJECT NET $ 19,856,000 1 $19,029,000 1 $ $19,029,000 $ 18,591,608 1$ 134.500 $ 18,721,108 $ 17,548,361 94% Design PSA $ 3,225,432 $ 134,500 $ 3,359,932 $ 3,225,432 $ 134,500 $ 3,359,932 $ 3,016,000 90% Construction Contract $ 10,965,847 $10,965,847 $ 10.965,847 $ 10,965,847 $ 10,040,000 92% " Note: In addition to the J-33-lA construction contract,the Construction Contract amount above includes$1,561,901 for the J-33-1 construction contract and$1,432,605 to purchase the equipment installed as part of the J-33-1 work. EDMS G03797540 Professional Services Amendment Status Report Standby Power and Reliability Improvements to Treatment Plants No. 1 & No. 2 Job No. J-33-1 Total Project Budget: $19,029,000 Consultant: Spec Services, Inc. Start Date of Project: 09/23/1998 Date Amendment Description Cost AccumulatedCosts 09/28/1998 Original PSA Standby Power & Reliability Improvements, $ 2,121,748 $ 2,121,748 Job. No. J-33-1 10/27/1999 1 Additional Work on MCC's, Cengen Controls, $ 229,187 $ 2,350,935 Plant No. 2 Headworks Standby Facility 12/20/2000 2 Construction Project Management Support for $ 370,058 $ 2,720,993 Construction Contract J-33-1 A 5/30/2002 3* Addition of Ventilation & LEL Gas Detection at $ 24,770 $ 2,745,763 Plant-2 Gas Compressor Building Preparation of a Report Outlining NPFA Options 6/19/2002 4* for Coordinated Implementation of J-33-1A $ 23,500 $ 2,769,263 Remediation Measures. 8/27/2003 5 Construction Project Management Support for $ 214,500 $ 2,983,763 Construction Contract J-33-1A. 7/21/2004 6 Construction Project Management Support for $ 130,791 $ 3,114,554 Construction Contract J-33-1A. Construction Project Management Support for 6/22/05 7 Construction Contract J-33-1A. Added Relay $ 110,878 $ 3,225,432 Coordination Services and Record Drawin s. Pending 8 Construction Project Management Support for $ 134,500 $ 3,359,932 Construction Contract J-33-1A. * These Amendments were approved by the General Manager per Delegation of Authority EDMS 003797536 10/27/05 Revised 05/14/98 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/03/05 11/16/05 AGENDA REPORT Item Number Item Number PDC05-111 14 Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Hardat Khublall, CIP Project Manager SUBJECT: GISLER-REDHILL TRUNK IMPROVEMENTS. REACH "B", CONTRACT NO. 7-37 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to the Professional Services Agreement with Tetra Tech, Inc. providing for additional engineering services for Gisler-Redhill Trunk Improvements, Reach "B", Contract No. 7-37, for an additional amount of $194,400, increasing the total amount not to exceed $555,780. SUMMARY • The Orange County Sanitation District's (OCSD) 1999 Strategic Plan identified the Gisler-Redhill Trunk, Reach "B", Contract No. 7-37, to be hydraulically deficient. Recently conducted flow monitoring has confirmed that the sewer is flowing approximately 90% full, far above the 75% full design capacity for the existing size of the pipeline. • In 2003, during the preparation of the Preliminary Design Report (PDR), Amendment No. 1 was awarded requesting the design consultant conduct an assessment of the condition of the OCSD's parallel interceptor sewer line located next to the Gisler- Redhill Trunk, Reach "B". Both the Gisler-Redhill trunk sewer and the parallel interceptor share flows. This evaluation identified deficiencies in the parallel interceptor which have increased the scope of this project. • This request is to provide additional engineering services associated with the design for improvements to the OCSD's parallel interceptor sewer line. • This amendment also includes additional design work associated with pipe bursting method of construction installation to be used as an alternative method to open cut construction. This will encourage higher levels of competitive bidding, resulting in lower construction costs. The pipe bursting methodology will also reduce the disturbance to the street, thereby reducing impacts to traffic as compared with open cut construction. • OCSD has never used pipe bursting method of construction installation, therefore staff requested additional information that helped make the review process easier. This included additional geotechnical report and analysis of the impacts to adjacent utilities. The time involved in obtaining and reviewing the additional information accounted for approximately ten months of the project delay. Page 1 PRIOR COMMITTEE/BOARD ACTIONS Please see the attached Professional Services Agreement (PSA) Status Report. PROJECT/CONTRACT COST SUMMARY Please refer to the budget information table. BUDGET IMPACT ® This item has been budgeted. (Line item: CIP Budget, section 8, page 35) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) An amount of $194,000 is being moved from contingency to Phase 3 to allow for additional design services for the Gisler-Redhill Trunk Improvements, Reach "B". There is no increase to the project budget. Refer to the attached Budget Information Table and PSA Status Report for a summary of costs associated with the PSA and this pending Amendment No. 2. ADDITIONAL INFORMATION The design consultant has completed the PDR and the City of Tustin has recommended that OCSD improve the parallel interceptor while constructing the Gisler-Redhill Trunk, Reach "B" rather than come back at a later date to do the repairs. In addition to substantial cost increase to perform the work at a later date, the work would be disruptive to the public and all affected Cities. Due to staffs' approach to reduce the District's risk exposure and save costs, further studies were conducted to evaluate pipe bursting as an acceptable method of construction. It is estimated that pipe bursting will save approximately $2,500,000 and four months time. These additional studies and evaluations accounted for much of the project delays. This delay has caused the design consultant to request an additional $22,400 (equivalent to 6.6% of the original contract amount) for inflation of their original proposed fee. ALTERNATIVES There are no reasonable viable alternatives to the recommended change. CEQA FINDINGS This project was included in the 1999 Strategic Plan Program EIR, certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. Page 2 r ATTACHMENTS 1. Budget Information Table 2. PSA Status Report 3. Consultant's Letter HK:ba:eh H:1ntg1oba1\Agenda Draft Reports\PDC17-37 Addendum 2 AR.doc Page 3 BUDGET INFORMATION TABLE GISLER-REDHILL TRUNK IMPROVEMENTS, REACH B CONTRACT NO. 7-37 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED BUDGET PROJECTIPHASE AUTHORIZED PROJECT INCREASE REVISED AUTHORIZED TO AUTHORIZATION TOTAL EXPENDITURE EXPENDED TO BUDGET BUDGET !DECREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE DATE(%) Phase 1 -Project Development $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,006 100% Phase 2-Preliminary Design $ 149,000 $ 268,000 $ 268,000 $ 268,000 $ 268,000 $ 263,140 98% Phase 3-Design $ 565,000 $ 920,000 $ 194,400 $ 1,114,400 $ 920.000 $ 194,400 $ 1,114,400 $ 256.270 23% Phase 4-Construction $ 5.125.000 $ 5,124.000 $ 5,124.000 Phase 5-Commissioning $ 120,000 $ 119,000 $ 119,000 Phase 6-Close-Out $ 34,000 $ 36,000 $ 36,000 Phase 7-Contingency $ 885,000 $ 411,000 $ 194.400 $ 216,600 PROJECT TOTAL $ 6,893,000 $ 6,893,000 $ $ 6,893,000 $ 1,203,000 $ 194,400 $ 1,397,400 1 $ 534,416 38% Reimbursable Costs PROJECT NET $ 6,893.000 $ 6,893,000 $ $ 6,893,000 ,: $ 1,203,000 $ 194,400 $ 1,397,400 $ 534,416 38% PSAIContract Design PSA $ 336,880 $ 361,380 $ 194,400 $ 555.780 $ 361.380 $ 194,400 $ 555,760 $ 307.881 55% Construction Contract $ 4,305,000 $ 4.305,000 $ - $ 4,305.000 $ - $ - EDMS:003794083 Professional Services Agreement Status Report Gisler-Redhill Trunk Improvements, Reach "B" Contract No. 7-37 Total Project Budget: $6,893,000 Consultant: Tetra Tech, Inc. Start Date of Project: 1/10/02 Date Amendment Description Cost Accumulated Costs 11/28/01 Original PSA Design Improvements to trunk sewer in the Cities $336,880 $336,880 of Tustin, Irvine, and Santa Ana 10/30/03 No. 1 Additional Design Services $24,500 $361,380 Pending No. 2 Additional Design Services $194,400 $555,780 EDMS1Proj No1Doc Classl7-371Agenda Reportl7-37 PSA Status Report Amendment 2.doc 10/27/2005 003794134 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/03/05 11/16/05 AGENDA REPORT Item Number Item Number PDC05-112 14 Orange County Sanitation District FROM: John Linder, Engineering Manager Originator: Ann Tobin, Engineer SUBJECT: COOPERATIVE PROJECTS GRANTS PROGRAM, JOB NO. J-73 GENERAL MANAGER'S RECOMMENDATION 1) Approve time extensions to Cooperative Project Contract Agreements: Contract No. 0401 with the City of Anaheim; Contract No. 0408 with the City of Fullerton; Contract No. 0208 with the City of Huntington Beach, Contract No. 0127 with the City of La Habra; Contract No. 0412 with the City of La Palma; Contract No. 0130 with the City of Orange; and Contract No. 0416 with the City of Villa Park; and 2) Approve additional funding in the amount of $107,201 for Contract No. 0415 with Sunset Beach Sanitary District, increasing the total amount not to exceed $352,201. SUMMARY • The Cooperative Projects Grants Program provides funds to local agencies for projects that reduce or eliminate inflow and infiltration (1/1) to the sewer collection system. • Time extensions are required for seven existing contracts due to local agency project delays. • Sunset Beach Sanitary District requests additional grant funds for rehabilitation work funded under Contract No. 0415. Bids for sewer rehabilitation work exceed the Engineer's estimate. PRIOR COMMITTEE/BOARD ACTIONS On October 4, 2005, the Cooperative Projects Grants Committee recommended approval of seven time extensions listed above and additional funding for Contract No. 0415 with Sunset Beach Sanitary District. Additional Information is provided below. PROJECT/CONTRACT COST SUMMARY Not applicable. H:�dept\agenda\Boarc Agenda Reports\2005 Board Agenda&Agenda Repons\1105\I1em 14(g).Cooperative Projects.doc Revised. 10/10/05 Page 1 ADDITIONAL INFORMATION Time Extensions AGENCY CONTRACT GRANT APPROVED NEW NEW AMEND REASON FOR REQUEST NO. NOT TO COMPLETE COMPLETE INVOICE NO. EXCEED DATE DATE DATE AMOUNT City requires more time to City of Anaheim CP-0401 S125,000 09/01/05 01/01/06 03/01/06 1 complete project and prepare reimbursement request. City requires more time to City of Fullerton CP-0408 S158.400 12/01/05 02/01/06 04/01/06 1 complete project and prepare reimbursement request City requires more time to City of document project and Huntington CP-0208 51,125,000 08/01/05 12/01/05 02/01/06 1 prepare reimbursement Beach request City requires more time to City of La CP-0127 S385.500 06/09/05 09/01/07 11/01/07 2 analyze 1/1,prepare Habra contract,and complete project City requires more time to City of La CP-0412 S73,000 09/30/05 11/30/05 01/30/06 1 complete project and Palma prepare reimbursement request City requires more time to City of Orange CP-0130 $100,500 11/15/05 06/01/06 08/01/06 3 re-advertise and complete project. City requires more time to City of Villa complete project and Park CP-0416 $34,500 12/01/05 04/01/06 06/01/06 1 prepare reimbursement request The Cities of Anaheim and La Palma have nearly completed the studies funded under Contract Nos. 0401 and 0412, yet will require additional time to collect project deliverables and prepare reimbursement requests. The Cities of Fullerton and Villa Park have started video inspections funded under Contract Nos. 0408 and 0416. yet will require additional time to collect project deliverables and prepare reimbursement requests. Video inspections started later than anticipated partially due to the time required for preparation and approval of Cooperative Projects contract agreements. The City of Huntington Beach requires additional time to close out the completed Alabama Relief Storm Drain project funded under Contract No. 0208 and to prepare the reimbursement request. The City of La Habra funded under expired Contract No. 0127 requires additional time to complete 1/1 analysis, prepare contract documents, and complete sewer work. The City of Orange requires additional time to re-advertise and complete its Taft Avenue and Glassell Street storm drain project. No award was made during the initial bid period due to limited budget. The City of Orange has completed value engineering to reduce the project cost and will re-advertise in November 2005. H,\dept\agenda\Board Agenda Reporis\2005 Board Agenda 8 Agenda Repons\1105\Item 14(g).Cooperative Projects.doc Revised 10/10/05 Page 2 Additional Funding Request On September 8, 2005, Sunset Beach Sanitary District received four bids for sewer rehabilitation work authorized under Cooperative Projects Contract No. 0415. Bids ranged from $614,402 to $939,380 exceeding the Engineer's estimate of $400,000 provided in the August 2004 grant application. At the bid opening, two contractors stated that the cost increases were due to the high price of petroleum products. On October 13, 2005, Sunset Beach Sanitary District awarded the contract to Sancon Engineering in the amount of $614,402. Based on a bid price of $614,402 and Program payback methodology, the Sanitation District staff estimate a 20-year payback period for Contract No. 0415 rather than the 14-year period considered at the time of grant authorization. Contract No. 0415 currently provides up to $245,000 for the original sewer planning and repairs. ALTERNATIVES 1) Do not approve time extensions. Not approving the time extensions would prevent member agencies from collecting reimbursement under expired contracts. Denying the requested time extensions would essentially terminate the subject contracts. 2) Do not approve additional funding requests. Withholding additional funding could prevent the Sunset Beach Sanitary District from completing the work as planned. CEQA FINDINGS Local agencies are responsible for CEQA compliance. ATTACHMENTS None AT:sa HAntglobaKAgenda Draft Reports\PDC\J-73 PDC AR 110305 Revised 101005.doc H:\dept\agenda\Board Agenda Reports\2005 Board Agenda&Agenda Repor1s\1105\Item 14(g).Cooperative Projects.doc Revised: 10110/05 Page 3 Meeting Date To Bd.of Dir. BOARD OF DIRECTORS 11/03/05 11/16/05 AGENDA REPORT Item Number Item Number PDC05-113 14 h Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: David May, Project Manager SUBJECT: BUSHARD TRUNK SEWER REHABILITATION, JOB NO. 1-2-4 GENERAL MANAGER'S RECOMMENDATION Approve Professional Services Agreement with Earth Tech providing for Construction Management services for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, for an amount not to exceed $2,052,593. SUMMARY • The existing 54-inch Bushard Trunk Sewer is being replaced due to significant corrosion of existing piping, and to increase capacity to handle projected 2020 peak wet weather flows. • The project is located within the Cities of Huntington Beach and Fountain Valley. The trunk sewer is on Bushard Street between Ellis Avenue and Banning Road, Banning Road between Bushard Avenue and Brookhurst, and Brookhurst between Banning Road and Plant No. 2. The project consists of four miles of 108-inch sewer pipe. • After construction began in November, 2002 problems occurred with the pipe being supplied for the project: some of the concrete pipe joints cracked. Staff determined the cause of the problems to be with the pipe fabrication and installation. This was disputed by the Contractor and pipe fabricator. The Sanitation District, the Contractor and pipe fabricator have settled this dispute by agreement. • As recommended by members of the Board of Directors (Board), staff solicited proposals from qualified firms to provide third party Construction Management (CM) services for the remainder of construction. Staff requested proposals from seven firms, with three firms responding. In October, 2005 staff recommended award of a full service CM contract to Earth Tech for $2,052,593. The PDC continued this agenda item until November, 2005. The PDC requested that staff return with alternatives to full service award. • In November, 2005 staff recommended award of a partial service CM contract providing field engineering and inspection services only, to Earth Tech for $1 ,050,016. After discussing the particulars of the partial services versus full services contract award the PDC motioned to recommend the full services contract award and bring this item to the full Board for further discussion. Page 1 PRIOR COMMITTEE/BOARD ACTIONS ` A Professional Services Agreement (PSA) was approved with Boyle Engineering Corporation (Boyle) on April 26, 2000. Eight amendments to this contract have been authorized. A construction contract was awarded to Steve P. Rados, Inc. (SPR) by the Board on June 26, 2002 and 17 change orders to the contract have been ratified. A pipe procurement contract was awarded to Ameron International by the Board on September 28, 2005. PROJECT/CONTRACT COST SUMMARY Please see the attached Budget Information Table for more information. This request is for authorization of $2,052,593 for CM services provided by Earth Tech during Phase 4 of the project. . 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) Staff is requesting an increase of S2,270,057 for the construction phase budget for the award of $2.052,593 for the PSA and associated staff cost described below for Alternative 1. It is possible that additional service will be needed to address residential damage claim issues and that staff may recommend that Earth Tech, provide those services. Due to the unpredictable level of damage claims, and construction claims, it is possible that staff will request additional funds via PSA amendment. ADDITIONAL INFORMATION CM services are to manage the contractor during construction. This typically includes the services of a resident engineer, inspectors, schedulers, cost estimators, and administrative support staff. All field interaction, review of work, and all document processing with the contractor is performed by the CM team. The CM team provides several important functions. Professional, capable, knowledgeable oversight of SPR activities is the primary function of the team. Diligent, careful documentation of daily activities and correspondence between SPR and the Sanitation District is another primary function. For this project specifically, it will be very important to negotiate with SPR during and after construction. After construction, and per the Settlement Agreement, there will likely be claims made by SPR that must be settled. This issue increases the importance of accurate, detailed records during the construction, and effective negotiating of resource needs during construction. A proactive approach during construction will place the Sanitation District in a better position to negotiate final claims as allowed by the Settlement Agreement after construction completes. Page 2 Overall, CM services going forward will be important to manage the work and to prepare thoroughly for upcoming claims SPR will likely make as allowed by the Settlement Agreement. Additionally, a focused effort will be needed to address public inquiry and potential claims from homeowners near the work areas. ALTERNATIVES In October, 2005 staff recommended that the PDC award a full service CM contract to EarthTech for $2,052,593. The PDC committee requested that staff return in November, 2005 with alternatives to a full service award so they could be compared to the full service award prior to PDC action. Staff developed three alternatives for consideration by the PDC in November, 2005. The three alternatives ranged from the full service contract award to EarthTech, a mixture of services provided by EarthTech and staff, and staff providing all services. After questioning, discussion, and comparison of these three alternatives, the full service contract award to Earth Tech and the partial service award to Earth Tech were kept for further discussion. The PDC moved to recommend the full service contract award to Earth Tech with a request that these two alternatives be presented to the Board for further discussion. Presented below is Table 1 comparing a summary level cost breakdown of the two alternatives the PDC moved to keep for Board discussion. The PDC recommended award of Alternative No. 1 in Table 1. Alternative 1 provides the cost breakdown for both Earth Tech and staff based on a full service contract award to Earth Tech. Alternative 2 provides the cost breakdown for both Earth Tech and staff based on a partial service contract award to Earth Tech. The primary difference between the two alternatives is whether or not Earth Tech provides support services via sub consultants. In Alternative 1 Earth Tech provides all support services as part of the contract. In Alternative 2 staff will procure and provide these services separately from the Earth Tech contract. Page 3 TABLE 1 EARTH TECH AWL OCSD CORE SUPPORT' PUBLIC SUPPORT ALTERNATIVE DESCRIPTION SERVICES SERVICES[11 RELATIONS LABOR TOTAL 1 Earth Tech team provides all $ 1,050,016 $ 762,577 [2] $ 240,000 [41 $ 217,464 $ 2,270,057 services 6744 7930 1232 2132 18038 [6] Earth Tech provide RE/Inspection only (Core services). OCSD provide 2 support services (PC &Admin/ $ 1,050,016 $ 762,577 [3] $ 240,000 [5] $ 278,664 $ 2,331,257 Support Geotech, Noise, Vibration) consultants & PR consultant. 6744 7930 1232 2732 18638 [6] Notes [1] Services include: project controls support, administrative support, geotehnical services, dewatering analysis, noise &vibration baseline assessment and monitoring, and surface crack/deformation baseline assessment and monitoring. [2] Services provided primarily by sub consultants, and partially by Earth Tech. [3] Assumes OCSD can procure services at same price obtained by Earth Tech for proposal. [4] Services provided by Porter Novelli as a sub consultant to Earth Tech [5] Assumes OCSD can procure services at same price obtained by Earth Tech for proposal. OCSD staff would have to perform services until sub consultant could be procured as services are needed starting December, 2005. [6] Hours for each component and summation of total hours. Page 4 The four basic elements of work described in Table 1 are: • Earth Tech Core Services: A resident engineer (RE) and a team of inspectors. This team is the field management team that ensures performance of the contract terms. This team interacts with SPR continuously during the work and is responsible for records development and negotiating. This element is considered the "core" element of the entire effort. • Support Services: Schedulers, cost estimators and administrative staff support the RE and inspectors. This team provides schedule expertise, cost estimating expertise, and clerical and processing support. This team works with and at the direction of the RE. Additionally, sub consultants performing baseline condition assessments for noise, vibration, existing surface conditions, and soil settlement are required. Once the baseline conditions are established, there will be periodic measurement of the same parameters and comparison to the baseline conditions established during construction. This element will provide a basis for determining if construction activities are impacting adjacent properties. • Public Relations: This project has a high public profile. The public relations support will assist staff with community outreach efforts, which are expected to be much greater for this project prior to and after construction restarts. Work includes development of printed communication materials that are mailed, delivered door to door, posted on the OCSD web site, and presented at community meetings. Work also includes responding to public inquiry and logging of all communication records. • Additional OCSD Support Labor: Staff will need to transition information, historical knowledge and document processing information to Earth Tech. This will ensure a smooth transition of services and place the Sanitation District in the best position for potential SPR claims in the future. Additionally there will be ongoing administrative costs during the performance of the contract by staff. Alternative 2 would require slightly more staff labor to coordinate and administer the various services procured by the Sanitation District. There are very important time constraints to be considered. Staff is working with the cities of Huntington Beach and Fountain Valley and is planning for construction to restart in March, 2006. Encroachment permits with both cities, as well as permitting of a major intersection closure are being requested based on the March 2006 restart date. Mobilization must occur in February 2006 to support the restart date. The recently awarded pipe procurement contract with Ameron is structured so that the first 1000 feet of pipe is delivered to the site in late February or Ameron faces liquidated damages. This was structured to meet the March 2006 construction restart date. The Settlement Agreement states that SPR complete work by spring 2007. In order to meet this term, staff believes SPR must begin work in March 2006. SPR has indicated that they are planning for a March 2006 restart as well. Alternative 1 allows for delivery of services that best meet these time constraints. Public Relations and Baseline/Monitoring work elements should start in December 2005 to meet these constraints. Baseline conditions must be assessed before construction restarts. Alternative 2 requires staff to hire sub consultants to perform the baseline condition assessments. . Time is needed to develop RFP's, solicit proposals, award the Page 5 i work, and perform the work prior to March 2006. The same is true for public relations work. The Communications division has developed a comprehensive Community Outreach plan, which includes many outreach efforts prior to construction restart. It will be difficult to procure these services and meet the time constraints established if Alternative 2 is selected. CEQA FINDINGS This project was included in the 1999 Strategic Plan Program Environmental Impact Report (EIR) certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. The project was included in Addendum No. 3 to the Program EIR approved on December 19, 2001. The addendum did not change the Program EIR findings. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report DL:DM:kf:eh:gc HAntglobal\Agenda Draft Reports\PDMAR_110305_CM Services—Earth Tech_OCSD mix options(b).doc Page 6 The FAHR minutes of the meeting held November 9, 2005 were not available for this mailing . These minutes will be distributed at the November 16 , 2005 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. 11/09/05 11/16/05 AGENDA REPORT Item Number Item Number FAHR05-91 15 b Orange County Sanitation District FROM: Michael D. White, Controller SUBJECT: FINANCIAL REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file the FY 2005-06 Financial Report for the First Quarter ended September 30, 2005. SUMMARY Attached in a separately bound document is the District's First Quarter Financial Report for the period ended September 30, 2005. This report is a consolidation of the financial accomplishments of the District through the first quarter of the FY 2005-06. Contained within the First Quarter Financial Report are budget summary reviews of the Collections, Treatment & Disposal Operations, the Capital Improvement Program, the capital facilities and debt service funds, and the self-insurance funds. As indicated within the Overview Section of this report, 22.40 percent, or $25.47 million of the FY 2005-06 net operating budget of $113.69 million has been expended. Net operating expenses increased $3.26 million in comparison with the same period last year. The total cost per million gallons at September 30, 2005 is $1 ,150.49 based on flows of 22.14 billion gallons. or 240.63 million gallons per day. This is $95.44, or 7.66 percent below the budgeted cost per million gallons of $1 ,245.93. This underage is primarily due to expenditures being lower than budget by 10.39 percent, or $2.95 million. This expenditure shortfall is somewhat offset by the fact that flows are 3.75 percent lower than the budget estimate of 250 million gallons per day. PROJECT/CONTRACT COST SUMMARY N/A H:\depMgenda\Board Agenda Repons\2005 Board Agenda&Agenda Reports\1105\I1em 15(b).Otrly Financial Rpt.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 2005-06 Financial Report for the Quarter Ended September 30, 2005. Wdept\agenda\Board Agenda ReponsM05 Board Agenda 8 Agenda Reports\1105\I1em 15(b).01r1y Financial Rpt.doc Revised: 8/20/98 Page 2 FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/09/05 11/16/05 AGENDA REPORT Item Number Item Number FAHR05-92 15 c Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance Originator: Michael D. White, Controller SUBJECT: SWAP REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file Swap Report for the quarter ended September 30, 2005. SUMMARY In August 2003, the Committee approved an Interest Rate Exchange Agreement Policy that provides guidelines for the use of hedging products including swaps, caps, floors, collars, options, and other similar financial instruments (collectively, "hedging products") in connection with the financial exposure of the District, including interest rate exposure. As required by this policy, following are the quarterly monitoring and reporting requirements and status at September 30, 2005: Requirement Highlight all material changes to hedging product agreements including counterparty downgrades and/or terminations. Results: The District currently utilizes two hedging product agreements. the AIG Swap agreement and the Soc Gen Swap Agreement. The AIG Swap agreement was originally entered into in October 1, 1992 in order to convert the Refunding Certificates of Participation, 1992 Series (the 1992 Certificates") to a fixed rate obligation. There have been no material changes to the agreement. American International Group, Inc.'s current ratings are AAA and Aaa from Standard and Poor's and Moody's, respectively. The Soc Gen Swap Agreement was originally entered into in September 1 , 1993, in order to convert the Refunding Certificates of Participation, 1993 Series (the 1993 Certificates) to a fixed rate obligation. There have been no material changes to the agreement. Soc Gen's current ratings are AA- and Aa3 from Standard and Poor's and Moody's, respectively. Requirement Summarize any new hedging products entered into by the District since the last report. Results: No new hedging products have been entered into by the District since the last report covering the period ended June 30, 2005. As stated above, the District utilizes only two hedging product agreements, the AIG Swap agreement entered into in 1992, and the Soc Gen Swap Agreement, entered into in 1993. Requirement Summarize any planned hedging product transactions and the impact of such transactions on the District; a description of each outstanding Hedging Product agreement, including a summary of its terms and conditions, the notional amount, volume. rates, maturity, the estimated market value of each agreement. the method of procurement (competitive or negotiated), and the full name, description and credit ratings of the agreement's counterparty and if necessary, its applicable guarantor. Results: The District currently is not planning any additional hedging product transactions at this time. Requirement List any amounts which were required to be paid and received, and any amounts which actually were paid and received under each outstanding hedging product over the last quarter; Results: Following are the amounts that were actually paid and received under the District's two swap agreements. All amounts required to be paid and received were actually paid and received. 1992 1993 Certificates Certificates AIG Swap Soc Gen Swap JUIV Paid by the District to the Swap Provider S159,790.00 Paid by the Swap Provider on behalf of the District _ S (75,298.27) August Paid by the District to the Swap Provider S 2,782,631.75 S141,550.00 Paid by the Swap Provider on behalf of the District S(1,252,118.78) S (71,591.43) September Paid by the District to the Swap Provider _ S141,550.00 Paid by the Swap Provider on behalf of the District _ S (79,970.13) Requirement List any credit enhancement, liquidity facility or reserves associated therewith including an accounting of all costs and expenses incurred, whether or not in conjunction with the procurement of credit enhancement or liquidity facilities under each outstanding Hedging Product. Results: Credit Enhancements, liquidity facility or reserves associated with the 1992 Certificates AIG Swap: -Lloyds Bank Standby Purchase Agreement Commitment fees for the quarter ended July 31, 2005: $67,964.96 H:\dept\agenda\Board Agenda Repons'2005 Board Agenda&Agenda Repons\1105\I1em 15(c).Otrty SWAP Rpt.doc Revised: 06/04/03 Page 2 Credit Enhancements, liquidity facility or reserves associated with the 1993 Certificates Soc Gen Swap: -Soc Gen Irrevocable Letter of Credit Fee for the six months ended July 31, 2005: $53,083.93 Credit Enhancements, liquidity facility or reserves associated with the 2000 Certificates: -Dexia Public Finance Bank Standby Certificate Purchase Agreement Commitment Fee for the quarter ended July 31, 2005: $71,993.63 Requirement An assessment of the counterparty risk, termination risk, and other risks associated therewith, which shall include the value of the collateral posted by counterparties and the District, the aggregate marked-to-market value for each counterparty and relative exposure compared to other counterparties, and a calculation of the District's Value at Risk for each counterparty. Results: The counter party risk and termination risk has been calculated by Public Resources Advisory Group (PRAG). PRAG used the value at risk methodology in determining the county party risk at maximum exposure over the term of the Swap Agreements. Counterparty exposure limits are important because they create diversification, so if any one counterparty goes bankrupt, the District's total loss would be limited to only one counterparty. The termination risk is what the District would have to pay the counterparty upon a termination of the Swap Agreement. Following are the counterparty risk and termination risk as of September 30, 2005: 1992 1993 Certificates Certificates AIG Swap Soc Gen Swap Counterparty Risk $ 734,790 $2,475,888 Termination Risk $ 8,560,086 $2,084,314 Requirement The report shall also include a copy of this Policy in the quarter after it is adopted or subsequently modified. Results: No modifications have been made to the Policy since its adoption. PRIOR COMMITTEE/BOARD ACTIONS N/A H:\dept\agenda\Board Agenda Reports\2005 Board Agenda&Agenda Repons\1105\I1em 15(c).otrly SWAP Rpt.doc Revised: 06/04/03 Page 3 IY PROJECT/CONTRACT COST SUMMARY ' N/A BUDCETIMPACT ❑ 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 ATTACHMENTS None. H:\dept\agenda\Board Agenda Reports12005 Board Agenda&Agenda Reports11105MIem 15(c).0trty SWAP Rpt.doc Revised: 06/04/03 Page 4 I F FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/09/05 11/16/05 AGENDA REPORT Item Number Item Number FAHR05-93 15(d) Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Richard Spencer, Human Resources Supervisor SUBJECT: AMENDED DEFERRED COMPENSATION PLAN GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 05- , approving Amended Deferred Compensation Plan for Officers and Employees of the Orange County Sanitation District. SUMMARY 1) The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) imposed new requirements on qualified retirement plans, including governmental deferred compensation 457(b) plans, that provide for "mandatory distributions" of amounts equal to $5,000 or less. [Internal Revenue Code (IRC) 457(d)(1)(C)] Pursuant to the new requirements imposed by EGTRRA, mandatory cash-outs of amounts between $1 ,000 and $5,000 must now be automatically rolled over to an individual retirement plan unless the participant elects otherwise. [IRC section 401(a)(31)(13)] In order to assist with implementation of the new requirements of EGTRRA. the Internal Revenue Service (IRS) issued Notice 2005-5. Pursuant to this notice, the plan sponsor has the option to either implement or avoid the automatic rollover provision. On the advice of the plan sponsor's Investment Advisor Representative/Certified Financial Planner, OCSD has elected to avoid the new automatic rollover requirements by eliminating the mandatory distribution provisions completely. The decision to avoid the automatic rollover requirement is in the best interest of OCSD employees as they are afforded the opportunity to remove funds from the plan, upon separation of employment from the District, without penalty. This option is permissible pursuant to IRC section 1 .411(d)-4, A-2(b)(2)(v) and will result in negligible expense to OCSD in the form of administrative costs. The alternative option forces separated employees. with account values less than $5,000, to transfer funds to an IRA. thereby restricting the funds from withdrawal without penalty until age 5912. 2) The provider name of record will be changed from Valic to American International Group (AIG). The two additional provider names, Lincoln National and International City/County Management Association (ICMA). will remain unchanged. 15(d; PROJECT/CONTRACT COST SUMMARY 1) N/A 2) Costs are negligible, as they pertain only to staff administrative costs such as modification of documents referencing the provider name and communication to employees. 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 N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1) General Counsel Memorandum 2) Resolution OCSD 05-_ 3) Amended Deferred Compensation Plan Document H:ldept\agenda\Board Agenda Reports\2005 Board Agenda 8 Agenda Repons\1105\Item 15(d).Deterred Comp.doc Revised: 8/20/01 Page 2 FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/9/05 11/16/05 AGENDA REPORT Item Number Item Number FAHR05-94 15(e) Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Michael D. White, Controller SUBJECT: TREASURER'S REPORT FOR THE MONTH OF SEPTEMBER 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of September 2005. SUMMARY Pacific Investment Management Co. (PIMCO), serves as the Orange County Sanitation District's professional external money manager, and Mellon Trust serves as the Sanitation 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 Sanitation 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 Sanitation 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 one investment policy compliance exception. It pertains to the holding of one security 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 Sanitation 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 rating exception pertains to the holding of a United Airlines (UAL) Asset Backed Security with a par value of $1 .6 million, representing 0.47 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+. Both rating agencies have since withdrawn their ratings, Moody's in February 2004 and Standard & Poor's in June 2004. 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 Sanitation District would suffer an unwarranted loss if the security was sold at this time. HAdept\agenda\FAHR\FAHR2005\1105\05-94.Treasurer Report.doc Page 1 The Sanitation 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 this security very closely. Historical cost and current market values are shown as estimated by both PIMCO and Mellon Trust. The Sanitation 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. 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 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 Sanitation 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). These reports accurately reflect all Sanitation District investments and are in compliance with the Sanitation District's Investment Policy and previous requirements of California Government Code Section 53646. Government Code Section 53646 mandated that annual investment policies and quarterly reports be rendered to the legislative body. AB2853, which was signed on September 29, 2004, amends Government Code Section 53646 to remove the requirements: the rendering of these documents is optional. Although the Annual Investment Policy and Monthly and/or Quarterly Reports are no longer required, we believe it prudent to continue providing the legislative bodies with these documents. In addition, Government Code Section 53607 has not been repealed that requires an annual delegation of investment authority to the Treasurer and the submission of reports that include investment transactions by month. Sufficient liquidity and anticipated revenues are available to meet budgeted expenditures for the next six months. The tables on the following page details the book balances of the Sanitation District's investment accounts at month-end and a summary of the Cost of Funds on debt issues. A graphical representation of month-end balances is shown on the attached bar chart. H.\depnagenda\FAHR\FAHR2005U 105\05.94.Treasurer Report.doc Page 2 O ry Book Balances Estimated Investment Accounts September 30, 2005 Yield(%) State of Calif. LAIF $7,180,808 3.18 (1) Union Bank Checking Account 964,572 3.18(1) Union Bank Overnight Sweep Account 301,000 2.95 PIMCO—Short-term Portfolio 59,221,453 3.79 PIMCO- Long-term Portfolio 251,250,513 4.45 Petty Cash 4,000 N/A TOTAL $318.922.346 4.29 Debt Service Reserves w/Trustees $64,167 568 3.98 (1) This is the annualized yield for the month of August. The September annualized rate was not available as of the date of this report. Annual Cost of Funds Outstanding Interest Issue Description COP Balance Rate(%) 1992 Syn Fixed $ 100,275,000 5.55 1993 Syn Fixed 42,050,000 4.56 2000 VRDO 199,000,000 2.38 2003 Fixed 280,000,000 5.15 TOTAL $621,325,000 Weighted Avg Cost of Funds 4.29 ALTERNATIVES N/A CEQA FINDINGS N/A 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:bg HAdep1\agenda\FAHR\FAHR2005\1105\05-94.Treasurer Report.doc Page 3 a . Monthly Investment Balances by Type- Last Six Months $700,000,000 $600,000,000 ----- - - $500,000,000 $400,000,000 -- - -- - - $300,000,000 — I $200,000,000 - - $100,000,000 $0 April May June July August September i 2005 2005 2005 2005 2005 2005 i O PIMCO- Long-term 0 PIMCO-Short-term ®COP Debt Reserves 13 LAIF 0 Bank Accts 0 Petty Cash L Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund September 30, 2005 Par Value Book Value Market Value Rate Yield Balance September 1,2005 $7,580,808 $7,580,808 $7,580,808 3.18 3.18 Deposits: 9/8/2005 6,000,000 6,000,000 6,000,000 3.18 3.18 Total Deposits 6,000,000 6,000,000 6,000,000 3.18 3.18 Withdrawals: 9/14/2005 (1,500,000) (1,500,000) (1,500,000) 3.18 3.18 9/23/2005 (4,000,000) (4,000,000) (4,000,000) 3.18 3.18 9/26/2005 (900,000) (900,000) (900,000) 3.18 3.18 Total Withdrawals (6,400,000) (6,400,000) (6,400,000) 3.18 3.18 Balance September 30,2005 $7,180,808 $7,180,808 $7,180,808 3.18 3.18 (1) This is the annualized yield for the month of August. The September annualized rate was not available as of the date of this report. V I' I M C O October 7, 2005 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-Term and Liquid 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 Recap: The bond market sold off in September as the majority of fixed income sectors posted negative returns. U.S. Treasuries returned —1.33 percent over the month, underperforming the S&P 500 return of +0.81 percent. Yields on U.S. Treasuries rose sharply across all maturities, largely driven by concerns of accelerating inflation and another rate hike by the Fed. Mortgage-backed securities returned —0.53 percent, slightly underperforming Treasuries by 5 basis points after adjusting for duration. Corporate bonds returned —1.5 percent as measured by the Lehman Credit Index, marginally underperforming Treasuries by 2 basis points after adjusting for duration. High yield bonds outperformed both Treasuries and investment-grade issues, with the Lehman High Yield index returning —1.0 percent. The Lehman U.S. TIPS Index returned —0.14 percent in September,surpassing comparable nominal Treasuries for the month. The benchmark 10-year Treasury yield climbed steadily in September, ending the month at 4.33 percent, 31 basis points higher than the beginning ofthe month. While overall economic data was mixed, the market focused on positive indicators that suggested economic growth and higher inflation, unit labor costs rose more than forecasted for the second quarter, unemployment fell from 5.0 percent in July to 4.9 percent in August, and U.S. service companies reported unexpected strong growth for the month. Further implications of economic growth were lower oil prices, which fell from a prior-month record high of 70 dollars a barrel, as Hurricane Rita spared Houston's oil refineries from a direct hit. Investor concern about the increase in U.S. government debt needed to pay for the Hurricane Katrina's damages provided additional upward pressure on rates. Finally, U.S. Treasury yields were further lifted, as investors concluded that the Fed would continue to raise rates. On September 20. the Federal Open Market Committee (FOMC) met the market consensus and raised short-term rates a quarter point for the 1 Ith consecutive time to 3.75 percent, indicating that inflation pressures are building and that `measured" rate increases are likely to continue. The Fed will meet two more times this year, on November Ist and December 13th. On the inflation front, the Labor Department reported that Core CPI gained 0,t percent and Core PCE rose 0.2 percent over the month. GDP growth for the second quarter remained at 3.3 percent annualized,a slight decrease from the 3.8 percent growth rate in the first quarter. Mr. Mike N'hite, CPA October ?, 7005 Orange County Sanitation District Page Treasury yield changes during the month of September are summarized as follows: ■ 3-month bills: +4 basis points to 3.54% • 6-month bills: +21 basis points to 3.92% • 2-year notes: +35 basis points to 4.16% ■ 5-year notes: +33 basis points to 4.19% ■ 10-year notes: +31 basis points to 4.32% • 30-year notes: +31 basis points to 4.57% Performance Attrihution: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District returned —0.41% on a total return basis for the month of September, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 9 basis points. The following points summarize returns for the month ended September 30: • The Long-Term portfolio outperformed the benchmark by 9 basis points for the month. • For the twelve-month period,the Long-Term portfolio returned 1.98%,outperforming the benchmark by 96 basis points. • Portfolio duration,near the benchmark during the month,was neutral for performance as interest rates rose across the yield curve. • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was positive for performance as the credit sector underperformed Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was negative for performance as the sector lagged Treasuries on a duration-adjusted basis. Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.30% during the month of September, slightly outperforming the 3- month Treasury Bill Index. The following points summarize returns for the period ending September 30: • The Liquid portfolio outperformed the benchmark by 3 basis points for the month. • For the twelve-month period,the Liquid portfolio returned 2.68%,outperforming the benchmark by 16 basis points. • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance. L Mr. Mike While, CPA October 7, 2005 Orange County Sanitation District Page 3 Outlook and Strateny: The U.S. economy will grow more slowly over the next year with some increase in headline consumer price inflation. Despite this inflationary pressure, the yield on the 10-year Treasury is unlikely to move much beyond 4.50 percent, and could fall to 3.75 percent. The combination of slower growth and continued flows of capital into U.S. fixed income markets from high saving countries will keep rates in this range. The Federal Reserve will stop tightening at a federal funds rate near 4 percent as growth decelerates and the housing market cools. A higher than usual level of uncertainty is attached to PIMCO's forecast because it is not clear how several key factors will play out. The first is the lagged impact of higher energy prices over the past year, driven by increased demand from China and elsewhere. Another is the more recent jolt delivered by higher natural gas and gasoline prices in the aftermath of the hurricanes on the U.S. Gulf Coast. Additionally, the U.S. economy will be hit with a slowing property market arising from reduced affordability of housing. An offsetting positive factor is the continued strength of U.S. corporate investment. The key elements of PIMCO's forecast are: ■ A Slowdown In U.S. Housing... The direction of the U.S. housing market will be a critical factor in determining Fed policy over the next year. Recent gains in the U.S. property market have not only supported consumer confidence but also produced a surge in housing-related employment and residential investment. The greatest threat to the housing market is a decline in affordability. The last decade's gains in home prices relative to incomes are not sustainable because higher mortgage rates and increased energy prices will reduce what consumers can afford. • ...But Not A Collapse—PIMCO believes that while the U.S.property market suffers from regional froth, the bubble does not extend nationwide. A soft landing, meaning a slowing in the rate of appreciation but not a crash, is the most likely scenario. Housing is not expected to crash because supply and demand around the country are relatively balanced, lending conditions are favorable and low unemployment continues to support personal incomes and demand. • European Growth To Remain Meager—Domestic demand in Euroland is weak even though the region has enjoyed housing gains relative to personal incomes that exceed those in the U.S. The reason is anemic real wage growth, which dampens consumer confidence. There is no reason to expect these conditions to change over a cyclical time frame. Should the European Central Bank take any action over the next year,it will likely be in the direction of easing. • Japan and China To Contribute- Japan's recovery appears durable after many false starts in the recent past. While investment by Japanese companies still lags their cash flows, the momentum in capital spending is strong. Consumer confidence is on the rise given improved labor market conditions and wage gains. Lower expected volatility in China's economy will be positive for growth throughout Asia. Tighter credit conditions have cooled the surging Chinese property market and prodded a shift in investment away from real estate. China's recent revaluation is expected to have little impact on its trade balance as wage differentials between China and developed economies remain substantial. • Benign Core Inflation — Strong competition in globally traded goods and services will restrain core inflation (CPI less food and energy prices)even as headline inflation measures rise. Inflation is well contained in Euroland,where slow growth has driven core inflation below 2 percent. Japan will likely turn the corner from deflation to modest inflation. s J Mr. Mike White, CPA October 7, 2005 Orange County Sanitation District Page 4 To the extent that guidelines allow, PIMCO will employ a diverse range of strategies to enhance portfolio yield while still protecting investors' capital if macroeconomic stability unravels. Key strategies will include: ■ Interest Rate Strategies — We will target duration moderately above the index given an expected slowdown in growth,but retain tactical flexibility to trim this exposure should rates drop toward the lower end of our forecasted range. PIMCO will avoid longer maturity U.S.Treasuries,which offer little extra yield now that the yield curve has flattened considerably and are more sensitive to shifting expectations for headline inflation. Shorter maturities that react more to central bank policies are a better value given our forecast that Fed tightening will stop near 4 percent. ■ Mortgage-Backed Bonds—PIMCO will overweight mortgage-backed bonds,which continue to be an important structural holding because of their high credit quality and yield advantage versus Treasuries. However,most of PIMCO's added value will come from mortgage coupon and security selection. ■ Corporates—Valuation continues to be a major risk in the corporate bond markets. With corporate credit premiums overall near historic lows, PIMCO will retain its underweight to corporates. Pockets of value do exist,however, in select sectors with strong collateral protection, such as autos, telecom and utilities. We look forward to discussing these and other topics with you in the near future. Best regards, 49` Y4 ffl_. ~ Christine Telish,CPA John M. Miller,CFA Vice President Senior Vice President e 0 Orange County Sanitation District for the month cudin8 September 30,2005 Total Return Account-203 WiIh Accrued Interest Witfjout Accrued Interest Market Value 253,447.399 251,371,687 Book Value 253,023,875 250,948,164 Yield to Maturity 4.45 4.49 Short Term Account-603 %th Accrued Into Without,6cg-e interest Market Value 59,468,762 59,227.858 Book Value 59,472.779 59,231,874 Yield to Maturity 3.79 3.81 (r MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 September 2005) Page 1 of I Liquid Operating Monies(603) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO $59,468,762 • Mellon $59,467,811 Historical Cost: • PIMCO $59,472,779 • Mellon S59,468,813 15.1.2 MODIFIED DURATION Of Portfolio: 0.15 Of Index: 0.20 15.1.3 1% INTEREST RATE CHANGE Dollar Impact(gain/loss)of 1%Change: S89,203 15.1.4 REVERSE REPOS %of Portfolio in Reverse Repos: see attached schedule 00/0 15.1.5 PORTFOLIO MATURITY %of Portfolio Maturing within 90 days: 72% 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: 0.30 0.27 3 Months: 0.87 0.80 12 Months: 2.68 2.52 Fiscal Year-to-Date: 0.87 0.80 Conrmentarp • The Liquid portfolio outperformed the benchmark by 3 basis points for the month,and outperformed the benchmark by 7 basis points fiscal year-to-date. • PIMCO's emphasis on higher yielding securities such as commercial paper and short-term notes contributed to performance. C:Wwumenls and SeningslcranekLoeal Settlnpz Temporary Internet F11WOLIJ11,I4)a800-O."RPTAx MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 September 2005) Page 1 of 2 Long-Term Operating Monies(203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO $253,447,399 • Mellon S253,388,110 Historical Cost: • PIMCO S253,023,875 • Mellon S255,095,779 15.1.2 MODIFIED DURATION Of Portfolio: 2.44 Of Index: 2.42 15.1.3 1%INTEREST RATE CHANGE Dollar Impact(gain/loss)of l%Change: S6,184,117 15.1.4 REVERSE REPOS %of Portfolio in Reverse Repos: see attached schedule 0% 15.1.5 1 PORTFOLIO MATURITY %of Portfolio Maturing within 90 days: 4% 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" No* 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%)by Portfolio Index Period: 1 Month: -0.41 -0.50 3 Months: 0.20 -0.16 12 Months: 1.98 1.02 Fiscal Year-to-Date: 0.20 -0.16 • The Long-Tenn portfolio outperformed the benchmark by 9 basis points for the month,and outperformed the benchmark by 36 basis points fiscal year-to-date. • Portfolio duration.near the benchmark,was neutral for monthly performance as interest rates rose across the yield curve. • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was positive for performance,as the credit sector underperformed Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was negative for performance as the sector lagged Treasuries on a duration-adjusted basis. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING& REPORTING (foi-the month ended 30 September 2005) Page 2 of 2 *Compliance Issues: S 1,600,000 par of United Airlines(UAL)Pass-Through 2001-I-C(Enhanced Equipment Trust Certificate(EETC)-909317BC2),6.831%coupon, 3/01/2010 maturity,representing 0.63%of the portfolio holdings on a par basis was purchased on 8/10/2001;and subsequently downgraded by Moody's from A3 to BA I (on 9/18/2001)and S&P from A-to BBB(on 9/20/2001). The security was further downgraded by Moody's from BA I 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. Both rating agencies have since withdrawn their ratings(Moody's withdrew in February 2004 and S&P withdrew in June 2004).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 October 6,UAL said JP Morgan and Citigroup have agreed to arrange a$3 billion all-debt financing package to help the air carrier exit bankruptcy in February. UAL said it signed a commitment letter for the financing for a six-year term. The$3 billion will be used to repay UAL's debtor-in-possession loans,make other payments required upon exit from bankruptcy and ensure strong cash balances to conduct post-reorganization operations. UAL has been restructuring in bankruptcy since December 2002. In that time,the airline has used its court protection to slash labor costs and dump its underfunded pension plans. Last month,UAL filed its plan of reorganization with the court. If the plan wins court approval,the airline will begin to solicit votes for confirmation of the plan. PIMCO continues to negotiate with United on our holdings and currently leads an ad hoc committee. This has been an extremely complicated effort due to the complex nature of United's bankruptcy. These negotiations have required PIMCO's analysts access to non-public information and therefore sharing them results in parties becoming restricted. In light of this extremely complicated bankruptcy,PIMCO continues to strive to act in the most prudent manner to obtain maximum recovery. 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. S1,750,000 par of Virginia Electric Power NT securities(cusip 927804EN0),maturing on March 31,2006,represents 0.69%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. CADocrrtnents and SettingslerattelLocal SettitrgslTesrporar},Internet FilesIOMIL-T0800-05-09 RPT.doc c ., Report ID:GL8251 I Asset Summary Base Currency:USD by Asset 'Type with Sectors Alternate Base Currency: Exchange Rate: LIQUID OPER-PIMCO-OCSF07511102 9/30/2005 Status:FINAL Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S. DOLLAR INTEREST 246,357.72 246,357.72 0.41% 0.00 CERTIFICATES OF DEPOSIT-DOMESTIC 4,000,000.000 4,000,000.00 4,000,000.00 6.73% 0.00 COMMERCIAL PAPER-DISCOUNT 4,059,000.000 4,031,013.90 4,031,013.90 6.781%O 0.00 FED HM LOAN BNK- LESS THAN IYR 10,500,000.000 10,432,109.89 10,432,109.89 17.54% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN 1 11,200,000.000 11,074,467.61 11,074,467.61 18.62% 0.00 FNMA ISSUES-LESS THAN 1YR 11,700,000.000 11,513,492.47 11,513,492.47 19.360% 0.00 MUTUAL FUNDS 116,678.540 116,678.54 116,678.54 0.20% 0.00 REPURCHASE AGREEMENTS 11,800,000.000 11,800,000.00 11,800,000.00 19.84% 0.00 TREASURY BILLS-LESS THAN IYR 3,300,000.000 3,239,272.67 3,239,272.67 5.45% 0.00 U.S.DOLLAR 56,675,678.540 56,453,392.80 56,453,392.80 94.93% 0.00 CASH&CASH EQUIVALENTS 56,675,678.540 56,453,392.80 56,453,392.80 94.93% 0.00 FIXED INCOME SECURITIES U.S.DOLLAR BANKING&FINANCE 1,304,000.000 1,316,076.60 1,311,767.80 2.21% -4,308.80 U.S.AGENCIES 700,000.000 691,824.00 700,000.00 1.18% 8,176.00 UTILITY-TELEPHONE 1,000,000.000 1,007,520.00 1,002,650.00 1.69% -4,870.00 U.S. DOLLAR 3,004,000.000 3,015,420.60 3,014,427.80 5.07% -1,002.80 FIXED INCOME SECURITIES 3,004,000.000 3,015,420.60 3,014,417.80 5.07% -1,002.80 TOTAL ASSETS-BASE: 59,679,678.540 59,468,813.40 59,467,810.60 100.00% -1,002.80 1 Workbench Report ID:GL8251 Asset Summary Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM OPER-PIMCO-OCSF07522202 9/30/2005 Status:FINAL i Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES -85,650,707.15 -85,650,707.15 -33.80% 0.00 INTEREST 2,137,597.27 2,137,597.27 0.84% 0.00 MUTUAL FUNDS 750,018.800 750,018.80 750,018.80 0,30% 0.00 U.S.DOLLAR 750,018.800 -82,763,091.08 -82,763,091.08 -32.66% 0.00 CASH&CASH EQUIVALENTS 750,018.800 -82,763,091.08 -82,763,091.08 -32.665/6 0.00 FIRED INCOME SECURITIES U.S.DOLLAR ABS,-AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 980,000.00 0.390/o -620,000.00 ABS-HOME EQUITY 350,900.660 350,900.66 350,826.97 0.14% -73.69 ABS-STUDENT LOANS 2,587,990.370 2,588,293.65 2,589,931.36 1.02% 1,637.71 BANDING&FINANCE 41,950,000.000 42,047,079.10 41,986,583.82 16.57% -60,495.28 COLLATERALIZED MORTGAGE OBLIGATION 1,146,403.330 1,146,403.33 1,148,294.90 0.45% 1,891.57 FHLMC MULTICLASS 690,309.890 691,045.30 686,147.32 0.27% -4,897.98 FHLMC POOLS 48,358.680 47,179.93 49,756.73 0.02% 2,576.80 FNMA POOLS 51,255,389.520 51,904,690.46 51,146,871.71 20.19% -757,818.75 GNMA MULTI FAMILY POOLS 2,685,580.960 2,677,439.95 2,707,211.30 1.07% 29,771.35 GNMA SINGLE FAMILY POOLS 433,268.600 454,204.66 450,854.97 0.18% -3,349.69 INDUSTRIAL 2,000,000.000 1,998,188.00 1,999,680.00 0.79% 1,492.00 INFLATION INDEXED SECURITIES 25,701,262.680 26,247,197.61 27,177,768.95 10.73% 930,571.34 PVT PLACEMENTS- MORE THN 1YR 752,000.000 826,199.84 826,199.84 0.33% 0.00 U.S.AGENCIES 29,279,165.720 28,744,251.24 28,647,732.46 11.31% -96,518.78 U.S.GOVERNMENTS 174,318,126.090 173,391,956.07 172,242,683.37 67.98% -1,149,272.70 UTILITY-ELECTRIC 3,150,000.000 3,143,840.00 3,160,657.50 1.25% 16,817.50 U.S.DOLLAR 337,948,756.500 337,858,869.80 336,1S1,201.20 132.66% -1,707,668.60 FIXED INCOME SECURITIES 337,948,756.500 337,858,869.80 336,151,201.20 132.66% -1,707,668.60 TOTAL ASSETS-BASE: 338,698,775.300 255,095,778.72 253,388,110.12 100.00% -1,707,668.60 1 Workbench YLDANAL YIELD ANALYSIS PAGE 1 OCSF07511102 2005/09/30 RUN DATE 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME 13.36.30 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH & CASH EQUIVALENTS 1,100,000.00 BANKAMERICA CORP DISC .000 .000 99.068 1,089,742.50 1.93 0660POYM9 11/21/2005 1,089,742.50 1.84 1,600,000.00 BANKAMERICA CORP DISC .000 .000 99.068 1,595,080.00 2.82 0660POZ71 12/07/2005 1,585,080.00 2.68 1,500,000.00 CITIBANK NA NY BRH INSTL C/D .000 3.720 100.000 1,500,000.00 2.66 17304TXA6 3.720% 11/09/2005 DD 09/09/05 1,500,000.00 2.53 1,359,000.00 DU PONT DE NEMOUR DISC .000 .000 P-1 99.793 1,356,191.40 2.41 26354AXJB 10/18/2005 1,356,191.40 2.29 5,400,000.00 FEDERAL HOME LN BK CONS DISC .000 .000 P-1 99.973 5,398,569.00 9.60 313385MM5 MAT 10/03/2005 A-1+ 5,398,569.00 9.12 2,900,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.145 2,875,193.72 5.11 313385ND4 MAT 10/19/2005 A-1+ 2,875,193.72 4.85 1,900,000.00 FEDERAL HOME LN BK CONS DISC .000 .000 P-1 98.104 1,863,979.17 3.31 313385SQO A-1+ 1,863,979.17 3.15 300,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 98.123 294,368.00 .52 313385TK2 MAT 02/22/2006 A-I+ 294,368.00 .50 3,300,000.00 FEDERAL 11014E LN MTG CORP DISC .000 .000 P-1 99.973 3,299,125.50 5.86 313397MMO MAT 10/03/2005 A-1+ 3,299,125.50 5.57 2,000,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 98.593 1,971,865.00 3.50 313397NS6 MAT 11/01/2005 A-1+ 1,971,865.00 3.33 1,100,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.092 1,090,015.03 1.93 313397NZO MAT 11/08/2005 A-1+ 1,090,015.03 1.84 1,900,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 98.254 1,866,820.72 3.32 313397RQ6 HAT 01/10/2006 A-I+ 1,866,820.72 3.15 2,200,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 98.183 2,160,018.36 3.84 313397TR2 MAT 02/28/2006 A-1+ 2,160,018.36 3.65 700,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.089 686,623.00 1.22 313397UF6 MAT 03/14/2006 A-1+ 686,623.00 1.16 YLDANAL YIELD ANALYSIS PACE 2. OCSF07511102 2005/09/30 RIJN DATE s 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME 13.36.30 ==svo=o===o=o===oa=�====_____'_________-_-�;,_•=aaa-e=--cn-v-aa==a=acvoa=c=cc.^any--=m-.--n.-a--.maaac»c=aaoo=====c===zca=o=______ PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 4,000,000.00 FEDERAL NAIL 14TG ASSN DISCOUNT .000 .000 P-1 98.367 3,934,682.22 7.00 313589NL3 MAT 10/26/2005 A-1+ 3,934,682.22 6.64 3,000,000.00 FEDERAL NATI, MTG ASSN DISCOUNT .000 .000 P-1 98.794 2,963,927.50 5.27 313589QS5 MAT 12/19/2005 A-1+ 2,963,927.50 5.00 900,000.00 FEDERAL NATL 1ITG ASSN DISCOUNT .000 .000 P-1 98.270 984,427.75 1.57 313589SV6 HAT 02/08/2006 A-1+ 884,427.75 1.49 3,800,000.00 FEDERAL NATL 14TG ASSN DISCOUNT .000 .000 P-1 98.172 3,730,555.00 6.63 313589TS2 HAT 03/01/2006 A-l+ 3,730,555.00 6.30 3,300,000.00 UNITED STATES TREASURY BILL .000 .000 P-1 98.160 3,239,272.67 5.76 912795WT4 0.000% 03/16/2006 DD 09/15/05 A-1+ 3,239,272.67 5.47 2,500,000.00 WELLS FARGO BANK NA INSTL C/D .000 3.760 100.000 2,500,000.00 4.44 9497P23rn 3.760% 10/13/2005 DD 09/27/05 2,500,000.00 4.22 11,800,000.00 CS FOB CAT 2 REPO REPO .000 3.250 100.000 11,800,000.00 20.99 99441U490 03.250% 10/03/2005 DD 09/30/05 11,800,000.00 19.93 116,678.54 DREYFUS TREASURY CASH MGMT .000 3.400 AAA 100.000 116,678.54 .20 996095247 AAA 116,678.54 .20 -------- ------- ----------------- --------- TOTAL CASH & CASH EQUIVALENTS .000 .397 56,207,035.08 100.00 56,207,035.08 94.91 FIXED INCOME SECURITIES 15,000.00 ASSOCIATES CORP NORTH AMER NT- .000 6.359 AA1 100.250 15,112.95 .49 046003FM6 6.37S% 11/15/2005 DD 11/21/95 AA- 15,037.50 .03 75,000.00 BEAR STEARNS COS INC NTS .000 6.875 Al 100.000 75,422.25 2.48 073902AU2 6.875% 10/01/2005 DD 10/05/95 A 75,000.00 .13 112,000.00 BEAR STEARNS COS INC GLOBAL NT .000 3.019 Al 99.375 111,364.96 3.69 073902CB2 3.000% 03/30/2006 DD 02/19/03 A 111,300.00 .19 500,000.00 CIT GROUP INC GLOBAL SR NT .000 4.129 A2 99.910 499,820.00 16.57 125577AN6 4.125% 02/21/2006 DD 02/20/03 A 499,550.00 .84 YLDANAL YIELD ANALYSIS PAGE 3 OCSF07511102 2005/09/30 RUN DATE 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME s 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S—P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 700,000.00 FEDERAL HOME LN MTG CORP MTN .000 2.375 AAA 100.000 691,824.00 23.22 3128XicU9 2.375% 05/19/2006 DD 05/19/01 AAA 700,000.00 1.18 500,000.00 HOUSEHOLD FIN CORP NT .000 7.131 Al 101.671 511,620.00 16.96 441812FT6 7.250% 05/15/2006 DD 05/15/96 A 508,355.00 .86 102,000.00 MERRILL LYNCH 6 CO INC NT .000 6.218 AA3 100.515 102,736.44 3.40 590188FC7 6.250% 01/15/2006 DD O1/20/94 A+ 102,525.30 .17 1,000,000.00 SOUTHWESTERN BELL TEL CO HIED .000 6.543 A2 100.265 1,007,520.00 33.26 84534EDS4 6.560% 11/15/2005 DD 11/15/96 A 1,002,650.00 1.69 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .000 4.502 3,015,420.60 100.00 3,014,417.80 5.09 ------ ---�------ --------- TOTAL .000 466 59 222 455.68 100.00 59,221,452.89 100.00 YI.DANAL YIELD ANALYSIS PAGE 4 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 -------------------------------------='===o=�=saa�ca==='==a.ema�a-ssa-aa;ns-===a=-o PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL, COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH & CASH EQUIVALENTS 750,018.80 DREYFUS TREASURY CASH MGMT .000 3.400 AAA 100.000 750,018.90 100.00 996085247 AAA 750,018.80 .22 .00 BSDT-LATE MONEY DEPOSIT ACCT .000 .000 .000 .00 .00 996087094 .00 .00 -------- ------- ----------------- --------- TOTAL CASH 6 CASH EQUIVALENTS .000 3.400 750,018.80 100.00 750,018.80 .22 FIXED INCOME SECURITIES 752,000.00 AIG SUNAMERICA GLOBAL, REG S .000 5.325 109.867 826,199.84 .24 U00907AA0 5.850% 00/01/2009 DD 08/08/01 826,199.64 .25 600,000.00 CIT GROUP INC SR NT .000 7.093 A2 103.982 632,688.00 .lB 125581AA6 7.375% 04/02/2007 DD 04/01/02 A 623,889.82 .19 1,500,000.00 CIT GROUP INC NEW SR NT .000 4.310 A2 100.343 1,507,005.00 .44 125581AF5 VAR RT 09/22/2006 DD 09/23/03 A 1,505,145.00 .45 3,300,000.00 CIT GROUP INC 14T11 OSROD092 .000 4.023 A2 100.250 3,300,000.00 .98 12560PDV0 VAR RT 05/23/2008 DD 05/25/05 A 3,308,250.00 .98 1,600,000.00 CITIGROUP INC GLOBAL SR NT .000 3.751 AA1 99.984 1,600,000.00 .47 172967CW9 VAR RT 05/02/2008 DD 05/02/05 AA- 1,599,744.00 .47 1,000,000.00 FEDERAL HOME LN MTG CORP MTN .000 6.239 AAA 100.182 1,002,656.25 .29 3128X16R3 6.250% 11/14/2013 DD 11/14/03 AAA 1,001,820.00 .30 10,000,000.00 FEDERAL 11014E LN MTG CORP MTN .000 4.106 AAA 97.420 9,993,100.00 2.89 3128X3WY5 4.000% 09/22/2009 DD 09/22/04 AAA 9,742,000.00 2.89 2,700,000.00 FEDERAL HOME LN BKS CONS BD .000 8.895 AAA 93.315 2,565,820.00 .74 3133X3SQ7 VAR RT 02/27/2012 DD 02/27/04 AAA 2,519,504.65 .75 3,000,000.00 FEDERAL HOME IN BKS CONS BD .000 4.104 AAA 97.457 2,882,343.75 .86 31339XKN3 4.000% 03/18/2011 DD 06/19/03 AAA 2,923,710.00 .87 48,358.68 FHLMC GROUP 678-6064 .000 4.172 AAA 102.891 47,175.93 .01 31348SWZ3 6.304% 01/01/2028 DD 12/01/97 AAA 49,756.73 .01 YT.DANAT. YIELD AITALYSIS PAGE 5 OCSF07522202 2005/09/30 RUN DATE : 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2,350,000.00 FEDERAL 1TATL MTG ASSN DERS .000 5.220 AAA 100.592 2,385,461.50 .70 31359MJX2 5.250% 06/15/2006 DD 06/22/01 AAA 2,363,677.00 .70 6,800,000.00 FEDERAL NATL MTG ASSN DEBS .000 3.271 AAA 95.544 6,575,736.00 1.93 31359111104 3.125% 03/16/2009 DD 03/16/04 AAA 6,496,992.00 1.93 551,818.59 F'timA POOL 40254510 .000 5.011 AAA 99.784 568,373.1.4 .16 31371KVB4 5.000% 11/01/2017 DD 10/01/02 AAA 550t626.66 .16 118,409.66 FNMA FOOL 40254631 .000 5.011 AAA 99.103 121,961..96 .03 31371KY47 5.000% 02/01/2018 DD 01/01/03 AAA 118,152.71 .04 107,194.40 FNMA POOL 40254760 .000 5.011 AAA 99.776 110,410.7.3 .03 3137IK5V9 5.000% 06/01/2018 DD 05/01/03 AAA 106,954.28 .03 48,963.40 FNMA POOL 40254966 .000 5.012 AAA 99.765 50,432.31 .01 3137ILCB3 5.000% 09/01/2018 DD 08/01/03 AAA 49,848.34 .01 363,750.22 FNMA POOL 40254907 .000 5.012 AAA 99.761 363,750.22 .10 3137ILDLO 5.000% 10/01/2018 DD 09/01/03 AAA 362,880.B6 .11 259,190.10 FNMA POOL 40254953 .000 5.012 AAA 99.757 262,510.98 .D7 31371LE21 5.000% 11/01/20113 DD 10/01/03 AAA 258,560.27 .08 698,081.44 FNMA POOL 40254987 .000 5.010 AAA 99.806 707,025.61 .20 31371LF46 5.000% 12/01/2018 DD 11/01/03 AAA 696,727.39 .2.1 113,254.48 FNMA POOL 00323980 .000 5.828 AAA 102.946 118,244.76 .03 31374T2M0 6.000% 04/01/2014 DD 09/01/99 AAA 116,590.96 .03 85,676.72 FNMA POOL #0357430 .000 5.011 AAA 99.772 96,640.58 .02 31376KA71 5.000% 09/01/2018 DD 09/01/03 AAA 85,481.38 .03 33,374.37 FNMA POOL 00456482 .000 5.82E AAA 102.945 34,844.91 .01 31381CCT2 6.000% 02/01/2014 DD 02/01/99 AAA 34,357.25 .01 92,283.95 FNMA POOL 60509649 .000 5.828 AAA 102.948 96,350.21 .02 31383QEWO 6.000% 09/01/2014 DD 09/01/99 AAA 95,004.48 .03 88,310.57 FNMA POOL 00535451 .000 5.828 AAA 102.948 92,201.76 .02 31384VZOS 6.000% 06/01/2015 DD 07/01/00 AAA 90,913.97 .03 255,211.72 FNMA POOL 40555363 .000 5.011 AAA 99.783 262,968.06 .07 31385W5Y1 5.000% 04/01/2D18 DO 03/01/03 AAA 254,657.91 .08 YLDANAL YIELD ANALYSIS PACE 6 OCSF07522202 2005/09/30 RtIN DATE. 10/05/05 DISTRICT: LONG-TERM OPERATING RIIN TIME 13.36.30 PAR VALUE. YTH AT CURRE14T MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 212,R47.27 F1:14A POOL 40555545 .000 5.011 AAA 99.783 219,232.70 .06 31385XES2 5.000% 06/01/2018 DD 05/01/03 AAA 212,385.39 .06 733,416.34 FNMA POOL 40555621 .000 5.010 AAA 99.806 741,667.26 .21 31395XG68 5.000% 07/01/2019 DD 06/01/03 AAA 731,993.75 .22 408,2.35.84 FNMA POOL 406R1309 .000 5.011 AAA 99.783 420,402.91 .12 31391Y3S4 5.000% 02/01/201A DD 02/01/03 AAA 407,349.97 .12 48,880.96 FNMA POOL 406RI334 .000 5.011 AAA 99.783 50r347.39 .01 31391Y4T1 5.000% 02/01/2018 DD O1/01/03 AAA 48,774.89 .01 294,761.12 FNMA POOL 00684798 .000 5.496 AAA 100.072 294,507.92 .08 31400DX31 5.500% 03/01/2033 DD 03/01/03 AAA 294,973.35 .09 262,876.33 FNMA POOL 00684909 .000 5.011 AAA 99.776 266,244.46 .07 31400D3R1 5.000% 06/01/2018 DD 05/01/03 AAA 262,287.49 .08 143,723.05 FNMA POOL 00685200 .000 5.011 AAA 99.783 145,564.52 .04 31400EGH7 5.000% 03/01/2018 DD 03/01/03 AAA 143,411.17 .04 217,291.79 FNMA POOL /0686318 .000 5.011 AAA 99.783 223,812.60 .06 31400FPB7 5.000% 03/01/2018 DD 03/01/03 AAA 216,822.26 .06 86,775.78 FNMA POOL 10698739 .000 5.011 AAA 99.776 89,379.05 .02 31400JEL9 5.000% 06/01/2018 DD 06/01/03 AAA 86,581.40 .03 79,R46.91 FNMA POOL 40689859 .000 5.011 AAA 99.776 80,969.95 .02 31400KMGO 5.000% 05/01/2018 DD 05/01/03 AAA 79,668.05 .02 451,478.80 FNMA POOL #0693834 .000 5.011 AAA 99.783 465,023.14 .13 3140OPY74 5.000% 03/01/2018 DD 03/01/03 AAA 450,499.09 .13 168,742.93 FNMA POOL 00695852 .000 5.011 AAA 99.779 173,805.22 .05 31400SBV0 5.000% 05/01/2018 DD 05/01/03 AAA 168,370.01 .05 607,602.98 FNMA POOL 00695889 .000 5.011 AAA 99.779 625,831.09 .18 31400SC23 5.000% 05/01/2018 DD 05/01/03 AAA 606,260.18 .18 168,193.43 FNMA POOL 00702210 .000 5.010 AAA 99.806 173,239.24 .04 31401ADP9 5.000% 05/01/2018 DD 05/01/03 AAA 167,867.19 .05 100,600.80 FNMA POOL 00702328 .000 5.011 AAA 99.779 101,989.82 .02 31401AHD2 5.000% 05/01/2018 DD 04/01/03 AAA 100,378.55 .03 YLDANAL YIELD ANALYSIS PAGE : 7 OCSF07522202 2005/09/30 RIJN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION ROOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2.22,556.44 FPMA Pool, 40709148 .000 5.011 AAA 99.772 229,233.15 .06 31401HZM7 5.000% 06/01/2018 DD 06/01/03 AAA 222,049.01 .07 481,798.25 FN14A POOI, 00709160 .000 5.011 AAA 99.772 407,971.29 .14 31401JA56 5,000% 07/01/2018 DD 06/01/03 AAA 480,699.75 .14 84,910.19 F1IMA POOL 40709826 .000 5.011 AAA 99.776 85,998.10 .02 31401JSP4 5.000% 06/01/2018 DD 06/01/03 AAA 84,719.99 .03 177,732.17 FNMA POOL 40709917 .000 5.011 AAA 99,776 100,009.37 .05 31401JVJ4 5.000% 06/01/201B DD 06/01/03 AAA 177,334.05 .05 442,265.07 FNMA POOL 00710235 .000 5.011 AAA 99.772 455,533.05 .13 31401KBC8 5.000% 06/01/2018 DD 06/01/03 AAA 441,2.56.71 .13 1R1,120.97 FNMA POOL 40713365 .000 5.011 AAA 99.772 183,441.57 .05 3140INQSI 5.000% 07/01/2018 DD 07/01/03 AAA 180,708.01 .05 552,900.74 FN14A POOL, 40720319 .000 5.011 AAA 99.772 559,9R4.R0 .16 31401WG45 5.000% 07/01/2018 DD 07/01/03 AAA 551,640.13 .16 1,824,12R.38 FNMA POOL 40720369 .000 5.010 AAA 99.806 1,878,852.23 .54 31401WJNO 5.000% 06/01/2018 DD 06/01/03 AAA 1,820,590.15 .54 236,477.37 FNRA POOL 40721629 .000 5.011 AAA 99.772 243,571.71 .07 31401XVW4 5.000% 07/01/2018 DD 06/01/03 AAA 235,938.20 .07 192,401.74 FNMA POOL #0723487 .000 5.011 AAA 99.772 194,453.79 .05 31402AXQ4 5.000% 06/01/2018 DD 06/01/03 AAA 181,985.86 .05 2,751,547.34 FNMA POOL 40725530 .000 5.012 AAA 99.760 2,788,951.17 .81 31402DA75 5.000% 06/01/2019 DD 05/01/04 AAA 2,744,952.10 .81 317,139.45 FNMA POOL 00729601 .000 5.012 AAA 99.768 321,202.81 .09 31402HRW3 5.000% 07/01/2018 DD 07/01/03 AAA 316,403.69 .09 29,251.45 FNMA POOL 00732873 .000 5.012 AAA 99.757 29,626.22 .00 31402MFNS 5.000% 11/01/2018 DD 10/01/03 AAA 29,180.37 .01 928,944.58 FNMA POOL 60735227 .000 5.503 AAA 99.952 936,702.55 .27 31402QYY1 5.500% 02/01/2035 DD 01/01/05 AAA 928,499.69 .28 496,855.20 FNHA POOL #0735856 .000 5.012 AAA 99.761 501,668.48 .14 31402RQH5 5.000% 08/01/2020 DD 08/01/05 AAA 495,665.37 .15 YLDANAI. YIELD ANALYSIS PAGE R OCSF0752.2207 200S/09/30 RUN DATE 10/OS/05 DISTRICT: WIIG-TERM OPERAT111G RUN TIME 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ R TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE. % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 490,813.29 FNMA POOL 40737130 .000 5.012 AAA 99.765 497,101.83 .14 31402S4P9 5.000% 10/01/2018 DD 10/01/03 AAA 499,659.88 .15 421,976.07 FNMA POOL 00738211 .000 5.010 AAA 99.806 427,382.67 .12 31402UD02 5.000% 10/01/2018 DD 10/01/03 AAA 421,157.57 .13 153,01.1.21 FNMA POOL 00739487 .000 5.012 AAA 99.757 154,971.67 .04 31402UNC2 5.000% 10/01/2018 DD 10/01/03 AAA 152,639.39 .05 1,795,R30.00 FNMA Pont, 80740457 .000 5.010 AAA 99.806 1,820,242.06 .53 31402WTIZO 5.000% 10/01/2018 DD 10/01/03 AAA 1,792,346.66 .53 636,922.36 FNI4A POOL 80740471 .000 5.010 AAA 99.806 645,082.91 .10 31402WT40 5.000% 10/01/2018 DD 10/01/03 AAA 635,686.93 .19 616,998.69 FNMA POOL 60740748 .000 5.012 AAA 99.765 624,903.98 .10 31402W5N7 5.000% 10/01/2018 DD 11/01/03 AAA 615,548.74 .18 29,382.10 FNMA POOL 00743868 .000 5.010 AAA 99.806 29,758.56 .00 31403BHRI 5.000% 11/01/2018 DD 10/01/03 AAA 29,325.11 .01 858,521.90 FNMA POOL 40744008 .000 5.011 AAA 99.776 869,521.72 .25 31403BR54 5.000% 07/01/2018 DD 09/01/03 AAA 856,598.81 .25 129,472..09 FNMA POOL 00744316 .000 5.010 AAA 99.806 131,131.76 .03 31403S37,4 5.000% 09/01/2018 DD 09/01/03 AAA 129,22.1.75 .04 238,096.46 FNMA POOL 40747914 .000 5.012 AAA 99.757 241,147.08 .07 31403F3XO 5.000% 11/01/2018 DD 11/01/03 AAA 237,517.99 .07 149,335.97 FNMA POOL 40748400 .000 5.010 AAA 99.806 151,249.34 .04 31403GNR9 5.000% 08/01/2018 DD 09/01/03 AAA 149,046.31 .04 783,380.36 FNMA POOL /0748899 .000 5.010 AAA 99.806 793,417.42 .23 31403G7LO 5.000% 12/01/2018 DD 11/01/03 AAA 781,860.85 .23 1,691,464.63 FNMA POOL #0750377 .000 5.010 AAA 99.806 1,713,136.52 .50 31403JUA2 5.000% 11/01/2018 DD 11/01/03 AAA 1,688,193.73 .50 1,443,142.92 FNMA POOL 40750380 .000 5.010 AAA 99.806 1,461,633.20 .42 31403JUD6 5.000% 11/01/2018 DD 11/01/03 AAA 1,440,343.68 .43 137,921.53 FNMA POOL #0750445 .000 5.010 AAA 99.806 139,688.65 .04 31403JWE2 5.000% 11/01/2018 DD 11/01/03 AAA 137,654.01 .04 YLDANAL. YIELD ANALYSIS PACE 9 OCSF07522202 2005/09/30 RUN DATE t 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME t 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 9 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 651,709.85 FNMA POOL. 00751960 .000 5.010 AAA 99.806 660,059.90 .19 31403LMH1 5.000% 1.2101/2018 DD 11/01/03 AAA 650,445.74 .19 677,197.01 FNMA POOL, 00753425 .000 5.012 AAA 99.754 685,027.09 .2.0 31403NA23 5.000% 11/01/2018 DD 11/01/03 AAA 675,531.11 .20 470,535.10 FNMA Pont. 00755165 .000 5.012 AAA 99.754 476,593.83 .13 3140306A3 5.000% 12/01/2018 DD 11/01/03 AAA 469,377.58 .14 808,306.09 FNMA POOL, 40756372 .000 5.012 AAA 99.754 917,652.13 .23 31403SJRB 5.000% 11/01/2018 DD 11/01/03 AAA 806,317.66 .24 2,760,305.69 FNMA POOL #0794251 .000 5.014 AAA 99.713 2,797,828.60 .81 31405B1146 5.000% 11/01/2019 DD 11/01/04 AAA 2,752,383.61 .82 806,343.12 FNMA POOL #0789670 .000 5.015 AAA 99.710 817,304.35 .23 31405HJP4 5.000% 12/01/2019 DD 12/01/04 AAA 804,004.72 .24 913,626.22 FNMA POOL #0792432 .000 5.014 AAA 99.717 824,686.45 .24 31405LLM9 5.000% 10/01/2019 DD 10/01/04 AAA R11,323.66 .24 4,588,959.79 F11MA POOL #0792437 .000 5.014 AAA 99.717 4,588,959.79 1.36 31405LLS6 5.000% 10/01/2019 DD 10/01/04 AAA 4,575,973.03 1.36 839,644.49 FNMA POOL 40794195 .000 5.014 AAA 99.713 851,058.41 .24 31405NKG9 5.000% 11/01/2019 DD 11/01/04 AAA 837,234.70 .25 1,773,353.78 FNMA POOL, 40797160 .000 5.015 AAA 99.710 1,797,460.30 .52 31405RTR7 5.000% 12/01/2019 DD 12/01/04 AAA 1,768,211.05 .52 785,092.74 FNMA POOL 00797408 .000 5.015 AAA 99.710 795,765.10 .23 31405R3R5 5.000% 12/01/2019 DD 12/01/04 AAA 782,815.97 .23 773,590.35 FNMA POOL 40197414 .000 5.015 AAA 99.7I0 784,106.33 .22 31405R3X2 5.000% 12/01/2019 DD 12/01/04 AAA 771,346.94 .23 354,291.03 FNMA POOL 40800370 .000 5.015 AAA 99.710 353,903.53 .10 31405VFKB 5.000% 12/01/2019 DD 11/01/04 AAA 353,263.59 .10 301,156.66 FNMA POOL 40800998 .000 5.503 AAA 99.940 300,897.S7 .08 31405V3F2 5.5008 11/01/2034 DD 11/01/04 AAA 300,975.97 .09 2,896,926.75 FNMA POOL 00803923 .000 5.015 AAA 99.710 2,926,170.91 .85 31406AD41 5.000% 12/01/2019 DD 12/01/04 AAA 2,878,554.66 .85 YLDANAI, YIELD ANALYSIS PAGE 10 OCSF07522202 2005/09/30 RUN DATE : 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAI, COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2,932,461.77 FNMA POOL 00807711 .000 5.015 AAA 99.710 2,970,965.54 .94 31406EKY9 5.000% 01/01/2020 DD 01/01/05 AAA 2,924,247.63 A4 331.304.46 FNMA POOL 40A08933 .000 5.503 AAA 99.940 331,019.74 .09 31406FV24 5.500% 01/01/2035 DD 01/01/05 AAA 331,105.68 .10 313,169.30 FNMA POOL 40809350 .000 5.503 AAA 99.940 312,900.17 .09 31406GEX3 5.500% 12/01/2034 DD 01/01/05 AAA 312,981.40 .09 32.4,130.14 FNMA POOL #0814930 .000 5.500 AAA 100.008 323,851.59 .09 31406NLRO 5.500% 04/01/2035 DD 04/01/05 AAA 324,155.59 .10 323,127.03 FNMA POOL C0815923 .000 5.503 AAA 99.940 322,849.35 .09 31406PPGO 5.500% 03/01/2035 DD 03/01/05 AAA 322,933.15 .10 611,023.76 FNMA POOL 10816246 .000 5.015 AAA 99.710 611,154.57 .18 31406PZK8 5.000% 03/01/2020 DD 03/01/05 AAA 610,049.47 .18 318,736.11. FNMA POOL 40819566 .000 5.503 AAA 99.940 319,462.20 .09 31406TQTI 5.500% 04/01/2035 DD 04/01/05 AAA 318,544.87 .09 322,925.62 FNMA POOL 60922731 .000 5.503 AAA 99.940 322,649.10 .09 31406XA85 5.500% 05/01/2035 DD 05/01/05 AAA 322,731.86 .10 331,015.92 FN14A POOL 40923232 .000 5.503 AAA 99.940 330,731.44 .09 31406XSV5 5.500% 06/01/2035 DD 05/01/05 AAA 330,817.31 .10 960,561.00 FNMA POOL 40823787 .000 5.015 AAA 99.710 967,501.63 .28 31406YF47 5.000% 05/01/2020 DD 05/01/05 AAA 965,752.17 .29 7,890.69 GNMA POOL 00421389 .000 6.244 AAA 104.096 8,281.53 .00 36206UC23 6.500% 04/15/2026 DD 04/01/96 AAA 8,213.89 .00 11,920.54 GNMA POOL 60449051 .000 6.255 AAA 103.911 12,510.97 .00 36208FWLG 6.500% 01/15/2029 DD 01/01/98 AAA 12,386.72 .00 32,280.92 GNMA POOL 00466845 .000 6.245 AAA 104.076 33,979.04 .00 36209BTA6 6.500% 06/15/2028 DD 06/01/98 AAA 33,596.69 .01 39,841.03 GNMA POOL #0468052 .000 6.246 AAA 104.073 41,814.40 .01 36209C5M4 6.500% 07/15/2029 DD 07/01/98 AAA 41,463.76 .01 111,442.84 GNMA POOL #0476041 .000 6.245 AAA 104.076 116,788.63 .03 36209MZE7 6.500% 06/15/2028 DD 06/01/98 AAA 115,985.25 .03 YLDANAL YIELD ANALYSIS PAGE : 11 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TER14 OPERATING RUN TIME 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 6 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 218,937.66 GNMA POOL 40478626 .000 6.247 AAA 104.058 124,642..95 .03 36209QVT9 6.500% 01/15/2029 DD 01/01/99 AAA 123,764.15 .04 28,413.09 GN14A POOL 00490598 .000 6.246 AAA 104.064 29,776.02 .00 3620953F6 6.500% 10/15/2028 DD 10/01/98 AAA 29,567.80 .01 5,802.99 GNMA POOL. 40512235 .000 6.248 AAA 104.030 6,090.42 .00 36211GBC6 6.500% 11/15/2029 DD 11/01/99 AAA 6,036.85 .00 74,739.84 GNMA POOL 40514326 .000 6.249 AAA 104.041 80,419.90 .02 36211JLF2 6.500% 07/15/2029 DD 07/01/99 AAA 79,039.86 .02 131,049.75 GNMA II POOP. 00080395 .000 4.331 AAA 101.014 129,862.12 .03 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 132,378.59 .04 1,159,755.30 G11MA II POOL 408040AX .000 4.331 AAA 101.014 1,147,976.53 .34 36225CN28 VAR RT 05/20/2030 DD 05/01/00 AAA 1,171,515.22 .35 1,112.,493.64 GNMA II POOL 00080965 .000 4.478 AAA 100.494 1,111,798.32 .33 36225DCBR VAR RT 07/20/2034 DD 07/01/04 AAA 1,117,989.36 .33 6,500,000.00 GENERAL ELEC CO NT .000 3.701 AAA 99.984 6,502,203.50 1.93 369604AZ6 VAR RT 10/24/2005 DD 10/24/03 AAA 6,498,960.00 1.93 2,000,000.00 GOLDMAN SACHS GRP MTN OTROO203 .000 4.116 AA3 100.109 2,001,900.00 .59 38141EJL4 VAR RT 03/30/2007 DD 04/01/04 A+ 2,002,180.00 .59 800,000.00 GOLDMAN SACHS GRP MTN 4TR00207 .000 3.959 AA3 100.531 000,000.00 .2.3 38141E303 VAR RT 07/23/2009 DD 07/23/04 A+ 804,249.00 .24 4,250,000.00 GOLDMAN SACHS GRP .000 4.290 AA3 100.234 4,250,000.00 1.26 38143UBD2 VAR RT 06/28/2010 DD 06/28/05 A+ 4,259,945.00 1.26 250,000.00 HSBC BK USA MTN 6SR00012 .000 3.985 AA2 100.125 250,170.00 .07 4042QGAMI VAR RT 09/21/2007 DD 09/21/04 AA- 250,312.50 .07 2,700,000.00 HSBC FIN CORP NT .000 4.000 Al 100.000 2,700,000.00 .80 40429CCU4 VAR RT 09/15/2008 DD 09/15/05 A 2,700,000.00 .80 3,000,000.00 HSBC FIN CORP MTN 4 TR 00002 .000 3.899 Al 100.031 3,000,000.00 .89 40429JAB3 VAR RT 02/28/2007 DD 03/29/05 A 3,000,930.00 .89 3,000,000.00 HSBC FIN CORP HTN 4 TR 00007 .000 4.009 Al 100.015 2,995,830.00 .89 40429JAG2 VAR RT 05/10/2010 DD 05/10/05 A 3,000,450.00 .89 YLDANAL YIELD ANALYSIS PAGE 12 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 11.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL, COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YTF.LD S-P PRICE MARKET VALUE 6 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2,500,000.00 BOUSEHOLD FIN CORD NT .000 7.058 A2 102.015 2,591,500.00 .75 441912GHI 7.200% 07/15/2006 DD 07/15/99 A 2,550,375.00 .76 2,000,000.00 MORGAN STANLEY .000 3.697 AA3 100.109 2,002,980.00 .59 61746BAK2 VAR RT 01/12/2007 DD 01/13/04 A+ 2,002,180.00 .59 3,200,000.00 MORGAN STA14LEY NT .000 3.975 AA3 97.484 3,149,248.00 .92 61746BALO 3.8751 01/15/2009 DD 01/13/04 A+ 3,119,488.00 .93 650,000.00 HORGAN STANLEY HT .000 3.809 AA3 100.031 650,000.00 .19 61746SA7.2 VAR RT 11/09/2006 DD 11/12/04 A+ 650,201.50 .19 1,400,000.00 PUBLIC SVC ELEC 6 GAS CO 1ST .000 4.085 A3 100.000 1,400,000.00 .41 744567FN3 VAR RT 06/23/2006 DD 06/25/04 A- 1,400,000.00 .42 350,900.66 RESIDENTIAL ASSET 03-RS11 AIIB .000 4.161 AAA 99.979 350,900.66 .10 760985K83 VAR RT 12/25/2033 DD 12/30/03 AAA 350,826.97 .10 1,800,000.00 SLM CORP MTN 4 TR 00067 .000 3.848 A2 100.312 1,805,040.00 .53 78442FCUO VAR RT 07/25/2008 DD 07/26/04 A 1,805,616.00 .54 2,587,990.37 SL.M STUDENT LN TR 04-6 A2 .000 3.687 AAA 100.075 2,588,293.65 .77 78442GMA1 VAR RT 01/25/2013 DD 06/30/04 AAA 2,589,931.36 .77 2,300,000.00 SAT-0110M SMITH MTN 4 SR 00206 .000 3.935 AAl 100.203 2,300,514.60 .68 79548EJP8 VAR RT 05/18/2007 DD 05/28/02 2,304,669.00 .68 2,498,126.09 SBA GTD DF.V PARTN 2001-20C 1 .000 5.985 AAA 105.935 2,499,12.6.09 .78 83162CLJO 6.340% 03/01/2021 AAA 2,646,389.87 .79 1,146,403.33 SBA GTD PARTN CTFS SBIC-PS 01 .000 6.629 AAA 100.165 1,146,403.33 .34 831641DD4 6.640% 02/10/2011 DD 02/21/01 NR 1,148,294.90 .34 2,000,000.00 TOYOTA MTR CR MTN ITROO413 .000 3.730 AAA 99.984 1,998,188.00 .59 89233PTE6 VAR RT 09/18/2006 DD 03/16/05 AAA 1,999,680.00 .59 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .000 11.153 WR 61.250 1,600,000.00 .29 909317BC2 6.831% 03/01/2010 DD 08/22/01 A- 980,000.00 .29 2,539,551.00 US TREASURY INFLATION INDEX NT .000 3.424 AAA 105.875 2,754,748.60 .79 9128273T7 3.625% 01/15/2008 DD 01/15/98 AAA 2,688,749.62 .80 11,317,160.00 US TREASURY INFLATION INDEX NT .000 3.571 AAA 108.500 12,497,136.76 3.6S 9129274YS 3.875% 01/15/2009 DD 01/15/99 AAA 12,279,118.60 3.64 YLDANAL YIELD ANALYSIS PAGE 13 OCSF07522202 2005/09/30 RIIN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ------------------------------ ------- ------- ------- -------- ------------ ---------- 3,900,000.00 U S TREASURY NOTES .000 5.734 AAA 100.291 4,193,993.62 1.16 9126276117 05.750% 11/15/2005 DD 11/15/00 AAA 3,910,979.50 1.16 2,100,000.00 U S TREASURY NOTES .000 4.266 AAA 99.625 2,3.05,699.39 .fit 912828BH2 4.250% 08/15/2013 DD 08/15/03 AAA 2,092,125.00 .62 10,900,000.00 U S TREASURY NOTES .000 3.459 AAA 97.580 10,709,447.11 3.16 912828BT6 3.375% 12/15/2008 DD 12/15/03 AAA 10,636,220.00 3.16 105,134.00 US TREASURY INFLATION INDEXED .000 1.959 AAA 102.110 107,939.37 .03 91282RBW9 2.000% 01/15/2014 DD 01/15/04 AAA 107,964.99 .03 12,500,000.00 U S TREASURY NOTES .000 2.775 AAA 99.090 12.,424,543.03 3.68 912828CMO 2.750% 06/30/2006 DD 06/30/04 AAA 12,386,250.00 3.68 3,213,026.00 US TREASURY INFLATION INDEX NT .000 1.957 AAA 102.180 3,300,893.88 .97 912828CP3 2.000% 07/15/2014 DD 07/15/04 AAA 3,283,069.97 .97 14,000,000.00 U S TREASURY NOTES .000 2.779 AAA 9B.960 33,927,531.92 4.12 912828CQ1 2.750% 07/31/2006 DD 07/31/04 AAA 13,854,400.00 4.11 35,300,000.00 11 5 TREASURY NOTES .000 2.411 AAA 98.500 35,120,197.62 10.34 912828CU2 2.375% 08/31/2006 DD 08/31/04 AAA 34,770,500.00 10.32 20,000,000.00 U S TREASURY NOTES .000 2.916 AAA 98.600 20,640,268.90 6.10 912828DD9 2.8754 11/30/2006 DD 11/30/04 AAA 20,508,800.00 6.09 13,920,000.00 U S TREASURY NOTES .000 3.597 AAA 97.300 13,626,296.77 4.02 912826DE7 3.500% 12/15/2009 DD 12/15/04 AAA 13,544,160.00 4.02 16,200,000.00 U S TREASURY NOTES .000 4.035 AAA 99.140 16,201,259.92 4.77 912828DP2 4.000% 03/15/2010 DD 03/15/05 AAA 16,060,680.00 4.77 11,200,000.00 U S TREASURY NOTES .000 3.773 AAA 99.390 11,165,662.53 3.31 912828DQO 3.750% 03/31/2007 DD 03/31/05 AAA 11,131,680.00 3.30 11,000,000.00 U S TREASURY NOTES .000 3.537 AAA 98.950 10,915,072.09 3.23 912828DW7 3.500% 05/31/2007 DD 05/31/05 AAA 10,884,500.00 3.23 20,000,000.00 U S TREASURY NOTES .000 3.659 AAA 99.080 19,864,857.19 5.89 912828DY3 3.625% 06/30/2007 DD 06/30/05 AAA 19,816,000.00 5.88 1,750,000.00 VIRGINIA ELEC 3 PWR 01 SER A .000 5.715 A3 100.609 1,743,840.00 .52 927804ENO 5.750% 03/31/2006 DD 03/27/01 BBB+ 1,760,657.50 .52 XLDAUAL YIELD ANALYSIS PAGE 14 OCSF07522202 2005/09/30 RU14 DATE : 10/05/05 DISTRICT: LONG-TER14 OPERATING RUN TIME 13.36.30 PAR VALUE. YTM AT CURRENT MOODY MARKET TOTAL COST/ W TYPE SECURITY 1D SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- -------------------'---------- ------- ------- ------- -------- ------------ ---------- 8,525,791.68 US TREASURY INFLATION TNDEX 14T 3.817 3.263 AAA 303.438 7,586,479.00 2.62 9128272M3 3.375% 01/15/2007 DD 01/15/97 AAA 8,818,865.77 2.62 690,309.09 FHLMC MULTICLASS 11TG SER E3 A 6.316 4.260 AAA 99.397 691,045.30 .20 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 686,147.32 .20 400,706.50 GNMA GTD REMIC TR 2000-9 FH 6.320 4.241 AAA 100.724 400,706.50 .12. 3837H4NX9 VAR RT 02/16/2030 AAA 403,607.62 .12 159,140.19 GNHA II POOL 4080088M 6.705 4.335 AAA 100.932 162,621.36 .04 36225CC20 7.375% 06/20/2027 DD 06/01/97 AAA 160,623.37 .05 123,142.09 GNMA II POOL 00080023 6.992 4.073 AAA 101.269 125,181.62 .03 36225CA7,9 VAR RT 12/20/2026 DD 12/01/96 AAA 124,704.76 .04 2,100,000.00 FEDERAL NATL HTG ASS14 DEBS 7.113 6.164 AAA 107.478 2,030,133.00 .67 31359MEYS 6.625% 09/15/2009 DD 09/01/99 AAA 2,257,038.00 .67 928,459.22 WMP/HUNTOON PAIGE 4000-11150 7.684 7.413 AAA 101.177 908,294.24 .27 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 939,383.19 .28 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .023 4.417 337,858,869.80 100.00 336,151,201.20 99.75 -------- ------- ----------------- --------- TOTAL .023 4.416 338,608,888.60 100.00 336,901,220.00 100.00 Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2005 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 INTEREST RECEIVABLE 2,383,954.99 2,383,954.99 0.76% 0.00 RECEIVABLE FOR INVESTMENTS 14,198.20 14,198.20 0.00% 0.00 SOLD PAYABLE FOR INVESTMENTS -85,664,905.35 -85,664,905.35 -27.38% 0.00 PURCHASED BANKAMERICA CORP 99.0675 1,100,000.000 1,089,742.50 1,089,742.50 0.35% 0.00 DISCI 1/21/2005SECID: 0660POYM9 BANKAMERICA CORP 99.0675 1,600,000.000 1,585,080.00 1,585,080.00 0.51% 0.00 DISC 12/07/2005SECID: 0660POZ71 CITIBANK NA NY BRH INSTL C/D 3. 100.0000 1,500,000.000 1,500,000.00 1,500,000.00 0.48% 0.00 720% 11/09/2005 DD O8/09/05SEC ID: 17304TXA6 DU PONT DE NEMOUR 99.7933 1,359,000.000 1,356,191.40 1,356,191.40 0.43% 0.00 DISC10/18/2005SEC ID: 26354AXJ8 FEDERAL HOME LN BK CONS 99.9735 5,400,000.000 5,398,569.00 5,398,569.00 1.73% 0.00 DISCMAT 10/03/2005SEC ID: 313385MM5 FEDERAL HOME LN BK CONS DISC 99.1446 2,900,000.000 2,875,193.72 2,875,193.72 0.92% 0.00 NMAT 10/19/2005SEC ID: 313385ND4 FEDERAL HOME LN BK CONS 98.1042 1,900,000.000 1,863,979.17 1,863,979.17 0.60% 0.00 DISCSEC ID:313385SQ0 FEDERAL HOME LN BK CONS DISC 98.1227 300,000.000 294,368.00 294,368.00 0.09% 0.00 NMAT 02/22/2006SEC ID: 313385TK2 FEDERAL HOME LN MTG CORP 99.9735 3,300,000.000 3,299,125.50 3,299,125.50 1.05% 0.00 DISCMAT 10/03/2005SEC ID: 313397MM0 FEDERAL HOME LN MTG CORP 98.5933 2,000,000.000 1,971,865.00 1,971,865.00 0.63% 0.00 DISCMAT 11/01/2005SEC 1D: 313397NS6 FEDERAL HOME LN MTG CORP 99.0923 1,100,000.000 1,090,015.03 1,090,015.03 0.35% 0.00 DISCMAT 11/08/2005SEC 1D: 313397NZ0 1 Workbench Report ID: GL8013 Asset Detail Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCS000010000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FEDERAL HOME LN MTG CORP 98.2537 1,900,000.000 1,866,820.72 1,866,820.72 0.60% 0.00 DISCMAT 01/10/2006SEC ID: 313397RQ6 FEDERAL HOME LN MTG CORP 98.1827 2,200,000.000 2,160,018.36 2,160,018.36 0.69% 0.00 DISCMAT 02/28/2006SEC ID: 313397TR2 FEDERAL HOME LN MTG CORP 98.0890 700,000.000 686,623.00 686,623.00 0.22% 0.00 DISCMAT 03/14/2006SEC ID: 313397UF6 FEDERAL NATL MTG ASSN 98.3671 4,000,000.000 3,934,682.22 3,934,682.22 1.26% 0.00 DISCOUNTMAT 10/26/2005SEC ID:313589NL3 FEDERAL NATL MTG ASSN 98.7943 3,000,000.000 2,963,827.50 2,963,827.50 0.95% 0.00 DISCOUNTMAT 12/19/2005SEC ID:313589QS5 FEDERAL NATL MTG ASSN 98.2698 900,000.000 884,427.75 884,427.75 0.28% 0.00 DISCOUNTMAT 02/08/2006SEC ID:313589SV6 FEDERAL NATL MTG ASSN 98.1725 3,800,000.000 3,730,555.00 3,730,555.00 1.19% 0.00 DISCOUNTMAT 03/01/2006SEC ID:313589TS2 UNITED STATES TREASURY BILL 0. 98.1598 3,300,000.000 3,239,272.67 3,239,272.67 1.04% 0.00 000%03/16/2006 DD 09/15/05SEC ID:912795WT4 WELLS FARGO BANK NA INSTL C/D 100.0000 2,500,000.000 2,500,000.00 2,500,000.00 0.80% 0.00 3.760% 10/13/2005 DD 09/27/05SEC ID:9497P23M7 CS FOB CAT 2 REPO REPO03.250% 100.0000 11,800,000.000 11,800,000.00 11,800,000.00 3.77% 0.00 10/03/2005 DD 09/30/05SEC ID: 99441U490 DREYFUS TREASURY CASH 100.0000 866,697.340 866,697.34 866,697.34 0.28% 0.00 MGMTSEC ID:996085247 TOTAL CASH&CASH EQUIVALENTS 57,425,697.340 -26,309,698.28 -26,309,698.28 -8.41% 0.00 FIXED INCOME SECURITIES AIG SUNAMERICA GLOBAL REG S 5. 109.8670 752,000.000 826,199.84 826,199.84 0.26% 0.00 850%08/01/2008 DD 08/08/01SEC ID: U00907AAO ASSOCIATES CORP NORTH AMER NT- 100.2500 15,000.000 15,112.95 15,037.50 0.00% -75.45 6.375% 11/15/2005 DD 11/21/95SEC ID:046003FM6 2 Workbench Report ID: GL8013 Asset Detail Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCS000010000 9/30/2005 Status: FINAL - — - Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base BEAR STEARNS COS INC NTS6. 100.0000 75,000.000 75,422.25 75,000.00 0.02% -422.25 875% 10/01/2005 DD 10/05/95SEC ID:073902AU2 BEAR STEARNS COS INC GLOBAL 99.3750 112,000.000 111,364.96 111,300.00 0.04% -64.96 NT3.000%03/30/2006 DD 02/19/03SEC ID:073902CB2 CIT GROUP INC GLOBAL SR NT4. 99.9100 500,000.000 499,820.00 499,550.00 0.16% -270.00 125%02/21/2006 DD 02/20/03SEC ID: 125577AN6 CIT GROUP INC SR NT 7.375% 103.9816 600.000.000 632,688.00 623,889.82 0.20% -8,798.18 04/02/2007 DD 04/01/02SECID: 125581AA6 CIT GROUP INC NEW SR NTVAR RT 100.3430 1,500,000.000 1,507,005.00 1,505,145.00 0.48% -1,860.00 09/22/2006 DD 09/23/03SECID: 125581AF5 CIT GROUP INC MTN#SR00092VAR 100.2500 3,300,000.000 3,300,000.00 3,308,250.00 1.060% 8,250.00 RT 05/23/2008 DD 05/25/05SEC ID: 12560PDVO CITIGROUP INC GLOBAL SR NTVAR 99.9840 1,600,000.000 1,600,000.00 1,599,744.00 0.51% -256.00 RT 05/02/2008 DD 05/02/05SEC ID: 172967CW9 WMP/HUNTOON PAIGE#000- 101.1766 928,459.220 908,294.24 939,383.19 0.30% 31,088.95 111507.500% 12/01/2030 DD 10/21/99SEC ID:302998GE3 FEDERAL HOME LN MTG CORP 100.0000 700,000.000 691,824.00 700,000.00 0.22% 8,176.00 MTN2.375%05/19/2006 DD 05/19/03SEC ID:3128X1CU9 FEDERAL HOME LN MTG CORP MTN 100.1820 1,000,000.000 1,002,656.25 1,001,820.00 0.32% -836.25 6.250%, 11/14/2013 DD 11/14/03SEC ID:3128X16R3 FEDERAL HOME LN MTG CORP MTN 97.4200 10,000,000.000 9,993,100.00 9,742,000.00 3.11% -251,100.00 4.000%09/22/2009 DD 09/22/04SEC ID:3128X3WY5 FHLMC MULTICLASS MTG SER E3 99.3970 690,309.890 691,045.30 686,147.32 0.22% -4,897.98 AVAR RT 08/15/2032 DD 12/01/97SEC ID:3133TCE95 FEDERAL HOME LN BKS CONS 93.3150 2,700,000.000 2,565,820.00 2,519,504.65 0.81% -46,315.35 BDVAR RT 02/27/2012 DD 02/27/04SEC ID:3133X3SQ7 3 Workbench i Asset Detail Report ID: -GLSO13 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base ' FEDERAL H0ME LN BKS CONS BD 4. 97.4570 3,000,000.000 2,882,343.75 2,923,710.00 0.93% 41,366.25 000%03/18/2011 DD 06/19/03SEC ID:31339XKN3 FHLMC GROUP#78-6064 6.384% 102.8910 48,358.680 47,179.93 49,756.73 0.02% 2,576.80 01/01/2028 DD 12/01/97SEC ID: 31348SWZ3 FEDERAL NA,rL MTG ASSN DEBS6. 107.4780 2,100,000.000 2,030,133.00 2,257,038.00 0.72% 226,905.00 625%09/15/2009 DD 09/01/99SEC ID:31359MEYS FEDERAL NATL MTG ASSN DEBSS. 100.5820 2,350,000.000 2,385,461.50 2,363,677.00 0.76% -21,784.50 250%,06/15/2006 DD 06/22/01SEC 1D:31359MJX2 FEDERAL NATL MTG ASSN DEBS 3. 95.5440 6,800,000.000 6,575,736.00 6,496,992.00 2.08% -78,744.00 125%03/16/2009 DD 03/16/04SEC ID:31359MUQ4 FNMA POOL#0254510 5.000% 99.7840 551,818.590 568,373.14 550,626.66 0.18% -17,746.48 11/01/2017 DD 10/01/02SEC ID: 31371KVB4 FNMA POOL H0254631 5.000% 99.7830 118,409.660 121,961.96 118,152.71 0.04% -3,809.25 02/01/2018 DD 01/01/03SECID: 31371KY47 FNMA POOL#0254760 5.000% 99.7760 107,194.400 110,410.23 106,954.28 0.03% -3,455.95 06/01/2018 DD 05/01/03SEC ID: 31371K5V9 FNMA POOL#0254866 5.000% 99.7650 48,963.400 50,432.31 48,848.34 0.02% -1,583.97 09/01/2018 DD 08/01/03SEC ID: 31371LCB3 FNMA POOL#0254907 5.000% 99.7610 363,750.220 363,750.22 362,880.86 0.12% -869.36 10/01/2018 DD 09/01/03SEC ID: 31371LDL0 FNMA POOL#0254953 5.000% 99.7570 259,190.100 262,510.98 258,560.27 0.08% -3,950.71 11/01/2018 DD 10/01/03SEC ID: 31371LE21 FNMA POOL#0254987 5.000% 99.8060 698,081.440 707,025.61 696,727.39 0.22% -10,298.22 12/01/2018 DD 11/01/03SEC ID: 3137ILF46 FNMA POOL 90323980 6.000% 102.9460 113,254.480 118,244.76 116,590.96 0.04% -1,653.80 04/01/2014 DD 09/01/99SEC ID: 31374T2M0 4 Workbench Report ID: GL8013 Asset Detail Base Currency: USD by Currency Alternate Base Currency: OCSD.CONSOLIDATED-OCSG00010000 9/30/2005 Exchange Rate: Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#0357430 5.000% 99.7720 85,676.720 86,640.58 85,481.38 0.03% -1,159.20 09/01/2018 DD 09/01/03SEC ID: 31376KA71 FNMA POOL#0456482 6.000% 102.9450 33,374.370 34,844.91 34,357.25 0.01% -487.66 02/01/2014 DD 02/01/99SEC ID: 31381CCT2 FNMA POOL#0509649 6.000% 102.9480 92,283.950 96,350.21 95,004.48 0.03% -1,345.73 09/01/2014 DD 09/01/99SEC ID: 31383QEW0 FNMA POOL#0535451 6.000% 102.9480 88,310.570 92,201.76 90,913.97 0.03% -1,287.79 06/01/2015 DD 07/01/OOSEC ID: 31384VZQ8 FNMA POOL#0555363 5.000% 99.7830 255,21 1.720 262,868.06 254,657.91 0.08% -8,210.15 04/O1/2018 DD 03/01/03SECID: 31385W5Y 1 FNMA POOL#0555545 5.000% 99.7830 212,847.270 219,232.70 212,385.39 0.07% -6,847.31 06/01/2018 DD 05/01/03SEC ID: 31385XES2 FNMA POOL#0555621 5.000% 99.8060 733,416.340 741,667.26 731,993.75 0.23% -9,673.51 07/01/2018 DD 06/01/03SEC ID: 31385XG68 FNMA POOL#0681309 5.000% 99.7830 408,235.840 420,482.91 407,349.97 0.13% -13,132.94 02/01/2018 DD 02/01/03SECID: 31391Y3S4 FNMA POOL 00681334 5.000% 99.7830 48,880.960 50,347.39 48,774.89 0.02% -1,572.50 02/01/2018 DD O1/01/03SEC ID: 3139IY4T1 FNMA POOL#0684798 5.500% 100.0720 294,761.120 294,507.82 294,973.35 0.09% 465.53 03/01/2033 DD 03/01/03SEC ID: 31400DX31 FNMA POOL 40684908 5.000% 99.7760 262,876.330 266,244.46 262,287.49 0.08% -3,956.97 06/01/2018 DD 05/01/03SEC ID: 31400D3R1 FNMA POOL#0685200 5.000% 99.7830 143,723.050 145,564.52 143,41 1.17 0.05% -2,153.35 03/01/2018 DD 03/01/03SEC ID: 31400EGH7 FNMA POOL#0686318 5.000% 99.7830 217,293.790 223,812.60 216,822.26 0.07% -6,990.34 03/01/2018 DD 03/01/03SEC ID: 31400FPB7 5 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: OCSD•CONVSOLIDATED-OCSG00010000 9/30/2005 Exchange Rate: Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#0688739 5.000% 99.7760 86,775.780 89,379.05 86,581.40 0.03% -2,797.65 06/01/2018 DD 06/01/03SECID: 31400JEL9 FNMA POOL#0689859 5.000% 99.7760 79,846.910 80,869.95 79,668.05 0.03% -1,201.90 05/01/2018 DD 05/01/03SEC ID: 31400KMG8 FNMA POOL#0693834 5.0001% 99.7830 451,478.800 465,023.14 450,499.09 0.14% -14,524.05 03/01/2018 DD 03/01/03SEC ID: 3140OPY74 FNMA POOL#0695852 5.000% 99.7790 168.742.930 173,805.22 168,370.01 0.05% -5,435.21 05/01/2018 DD 05/01/03SECID: 31400SBVO FNMA POOL#0695889 5.000% 99.7790 607,602.980 625,831.08 606,260.18 0.19% -19,570.90 05/01/2018 DD 05/01/03SEC ID: 31400SC23 FNMA POOL#0702210 5.000% 99.8060 168,193.430 173,239.24 167,867.19 0.050% -5,372.05 05/01/2018 DD 05/01/03SEC ID: 31401ADP9 FNMA POOL#0702328 5.000%, 99.7790 100,600.880 101,889.82 100,378.55 0.03% -1,511.27 05/01/2018 DD 04/01/03SEC ID: 31401AHD2 FNMA POOL#0709148 5.000% 99.7720 222,556.440 229,233.15 222,049.01 0.07% -7,184.14 06/01/2018 DD 06/01/03SEC ID: 31401HZM7 FNMA POOL#0709360 5.000% 99.7720 481,798.250 487,971.29 480,699.75 0.15% -7,271.54 07/01/2018 DD 06/01/03SEC ID: 31401JB56 FNMA POOL#0709826 5.000% 99.7760 84,910.190 85,998.10 84,719.99 0.03% -1,278.11 06/01/2018 DD 06/01/03SEC ID: 31401JSP4 FNMA POOL 40709917 5.0001% 99.7760 177,732.170 180,009.37 177,334.05 0.06% -2,675.32 06/01/2018 DD 06/01/03SECID: 31401JVJ4 FNMA POOL#0710235 5.000% 99.7720 442,265.070 455,533.05 441,256.71 0.14% -14,276.34 06/01/2018 DD 06/01/03SEC ID: 31401KBC8 FNMA POOL#0713365 5.000% 99.7720 181,120.970 183,441.57 180,708.01 0.06% -2,733.56 07/01/2018 DD 07/01/03SEC ID: 31401NQS1 6 Workbench Asset Detail Report ID: 01,8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCS&CONSOLIDATED-OCSG00010000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#0720319 5.000%. 99.7720 552,900.740 559,984.80 551,640.13 0.18% -8,344.67 07/01/2018 DD 07/01/03SECID: 31401WG45 FNMA POOL 40720369 5.000% 99.8060 1,824,128.380 1,878,852.23 1,820,590.15 0.58% -58,262.08 06/01/2018 DD 06/01/03SEC ID: 31401WJNO FNMA POOL#0721629 5.000%, 99.7720 236,477.370 243,571.71 235,938.20 0.081% -7,633.51 07/01/2018 DD 06/01/03SEC ID: 31401XVW4 FNMA POOL#0723487 5.000`%a 99.7720 182,401.740 184,453.78 181,985.86 0.06% -2,467.92 06/01/2018 DD 06/01/03SEC ID: 31402AXQ4 FNMA POOL U0725530 5.000% 99.7603 2,751,547.340 2,788,951.17 2,744,952.10 0.88% -43,999.07 06/01/2019 DD 05/01/04SEC ID: 31402DA75 FNMA POOL#0729601 5.000% 99.7680 317,139.450 321,202.81 316,403.69 0.10% -4,799.12 07/01/2018 DD 07/01/03SEC ID: 31402HRW3 FNMA POOL U0732873 5.000%, 99.7570 29,251.450 29,626.22 29,180.37 0.01% -445.85 11/01/2018 DD 10/01/03SEC ID: 31402MFN5 FNMA POOL#0735227 5.500% 99.9520 928,944.580 936,782.55 928,498.69 0.30% -8,283.86 02/01/2035 DD 01/01/05SEC ID: 31402QYYI FNMA POOL#0735856 5.000% 99.7605 496,855.200 501,668.48 495,665.37 0.16% -6,003.11 08/01/2020 DD 08/01/05SEC ID: 31402RQH5 FNMA POOL#0737130 5.000% 99.7650 490,813.290 497,101.83 489,659.88 0.16% -7,441.95 10/01/2018 DD 10/0 1/03SEC ID: 31402S4P9 FNMA POOL U0738211 5.0001%, 99.8060 421,976.070 427,382.67 421,157.57 0.13% -6,225.10 10/01/2018 DD 10/01/03SEC ID: 31402 U DQ2 FNMA POOL#0738487 5.000% 99.7570 153,01 1.210 154,971.67 152,639.39 0.05% -2,332.28 10/01/2018 DD 10/01/03SEC ID: 31402UNC2 FNMA POOL#0740457 5.000% 99.8060 1,795,830.000 1,820,242.06 1,792,346.66 0.57% -27,895.40 10/01/2018 DD 10/01/03SEC ID: 31402WTN8 7 Workberich Asset Detail Report ID: GL8013 Base Currency: USD by CurrencyAlternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss i Description Base Shares Par Base Base Total Base FNMA POOL#0740471 5.000% 99.8060 636,922.360 645,082.91 635,686.93 0.20% 9,395.98 10/01/2018 DD 10/01/03SEC ID: 31402WT40 FNMA POOL#0740748 5.000% 99.7650 616,998.690 624,903.98 615,548.74 0.200% -9,355.24 10/01/2018 DD 11/01/03SEC 1D: 31402W5H7 FNMA POOL#0743868 5.000% 99.8060 29,382.100 29,758.56 29,325.11 0.01% -433.45 11/01/2018 DD 10/01/03SEC ID: 314038MRI FNMA POOL 00744008 5.000% 99.7760 858,521.900 869,521:72 856,598.81 0.27% -12,922.91 07/01/2018 DD 09/01/03SEC ID: 31403BR54 FNMA POOL#0744316 5.000% 99.8060 129,472.890 131,131.76 129,221.75 0.04% -1,910.01 09/01/2018 DD 09/01/03SEC ID: 31403B3Z4 FNMA POOL#0747914 5.0000% 99.7570 238,096.460 241,147.08 237,517.89 0.08% -3,629.19 11/01/2018 DD 11/01/03SEC ID: 31403F3X0 FNMA POOL#0748400 5.000% 99.8060 149,335.970 151,249.34 149,046.31 0.051% -2,203.03 08/01/2018 DD 09/01/03SEC ID: 31403GNR9 FNMA POOL#0748899 5.000% 99.8060 783,380.360 793,417.42 781,860.85 0.25% -11,556.57 12/01/2018 DD 11/01/03SEC ID: 31403G7L0 FNMA POOL#0750377 5.000% 99.8060 1,691,464.630 1,713,136.52 1,688,183.73 0.54% -24,952.79 11/01/2018 DD 11/01/03SEC ID: 31403JUA2 FNMA POOL#0750380 5,000% 99.8060 1,443,142.920 1,461,633.20 1,440,343.68 0.46% -21,289.52 11/01/2018 DD 11/01/03SEC ID: 31403JUD6 FNMA POOL 40750445 5.000% 99.8060 137,921.530 139,688.65 137,654.01 0.04% -2,034.64 11/01/2018 DD 11/01/03SEC ID: 31403J W E2 FNMA POOL#0751960 5.000% 99.8060 651,709.850 660,059.90 650,445.74 0.21% -9,614.16 12/01/2018 DD 11/01/03SEC ID: 31403LM H 1 FNMA POOL#0753425 5.000% 99.7540 677,197.010 685,027.09 675,531.11 0.22% -9,495.98 11/01/2018 DD 11/01/03SEC ID: 31403NA23 8 Workbench Asset Detail Report ID: •GL8013 Base Currency: USD by Currency Alternate Base Currency: OCSD-CONSOLIDATED-OCSG00010000 9/30/2005 Exchange Rate: Status: FINAL ------ --------- - _ -- .. —.-- ------. -- - --------------- -- -- Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#0755165 5.000% 99.7540 470,535.100 476,563.83 469,377.58 0.15% -7,186.25 12/01/2018 DD 11/01/03SEC ID: 31403Q6A3 FNMA POOL#0756372 5.0000!, 99.7540 808,306.090 817,652.13 806,317.66 0.26% -11,334.47 11/01/2018 DD 11/01/03SECID: 31403SJR8 FNMA POOL 40784251 5.00051, 99.7130 2,760,305.690 2,797,828.60 2,752,383.61 0.88% -45,444.99 11/01/2019 DD 11/01/04SEC ID: 31405BH46 FNMA POOL#0789670 5.000% 99.7100 806.343.120 817,304.35 804,004.72 0.26% -13,299.63 12/01/2019 DD 12/01/04SEC ID: 31405HJP4 FNMA POOL#0792432 5.00WIo 99.7170 813,626.220 824,686.45 811,323.66 0.26% -13,362.79 10/01/2019 DD 10/01/04SEC ID: 31405LLM9 FNMA POOL#0792437 5.0000% 99.7170 4,588,959.790 4,588,959.79 4,575,973.03 1.46% -12,986.76 10/01/2019 DD 10/01/04SEC ID: 31405LLS6 FNMA POOL 40794195 5.000%, 99.7130 839,644.480 851,058.41 837,234.70 0.27% -13,823.71 11/01/2019 DD 11/01/04SEC ID: 31405NKG9 FNMA POOL#0797160 5.000% 99.7100 1,773,353.780 1,797,460.30 1,768,211.05 0.57% -29,249.25 12/01/2019 DD 12/01/04SEC ID: 31405RTR7 FNMA POOL#0797408 5.000% 99.7100 785,092.740 795,765.10 782,815.97 0.25% -12,949.13 12/01/2019 DD 12/01/04SEC ID: 3140SR3R5 FNMA POOL#0797414 5.000% 99.7100 773,590.350 784,106.33 771,346.94 0.25% -12,759.39 12/01/2019 DD 12/01/04SEC ID: 31405R3X2 FNMA POOL#0800370 5.000% 99.7100 354,291.030 353,903.53 353,263.59 0.1 1% -639.94 12/01/2019 DD 11/01/04SEC ID: 31405VFK8 FNMA POOL#0800998 5.500% 99.9400 301,156.660 300,897.87 300,975.97 0.10% 78.10 11/01/2034 DD 11/01/04SECID: 3140SV3F2 FNMA POOL#0803923 5.000% 99.7100 2,886,926.750 2,926,170.91 2,878,554.66 0.92% -47,616.25 12/01/2019 DD 12/01/04SEC ID: 31406AD41 9 Workbench Asset Detail Report ID: GLsoi<s Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: IOCSD-CONSOLIDATED-OCSG00010000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#080771 1 5.000% 99.7100 2,832,461.770 2,870,965.54 2,824,247.63 0.90% -46,717.91 01/01/2020 DD 01/01/05SEC ID: 31406EKY9 FNMA POOL#0808933 5.5000% 99.9400 331,304.460 331,019.74 331,105.68 0.11% 85.94 01/01/2035 DD 01/01/05SEC ID: 31406FV24 FNMA POOL#0809350 5.5001%, 99.9400 313,169.300 312,900.17 312,981.40 0.10'% 81.23 12/01/2034 DD 01/01/05SECID: 31406GEX3 FNMA POOL#0814930 5.500% 100.0079 324,130.140 323,851.59 324,155.59 0.10% 304.00 04/01/2035 DD 04/01/05SEC ID: 31406NLK8 FNMA POOL#0815923 5.500% 99.9400 323,127.030 322,849.35 322,933.15 0.10%) 83.80 03/01/2035 DD 03/01/05SEC ID: 31406PPG8 FNMA POOL#0816246 5.000% 99.7100 611,823.760 611,154.57 610,049.47 0.19% -1,105.10 03/01/2020 DD 03/01/05SEC ID: 31406PZK8 FNMA POOL#0819566 5.500% 99.9400 318,736.110 318,462.20 318,544.87 0.10'%u 82.67 04/01/2035 DD 04/01/05SEC ID: 31406TQTI FNMA POOL 90822731 5.500% 99,9400 322,925.620 322,648.10 322,731.86 0.10% 83.76 05/01/2035 DD 05/01/05SEC ID: 31406XA85 FNMA POOL#0823232 5.500% 99.9400 331,015.920 330,731.44 330,817.31 0.11% 85.87 06/01/2035 DD 05/01/05SEC ID: 31406XSV5 FNMA POOL#0823787 5.000% 99.7100 968,561.000 967,501.63 965,752.17 0.31% -1,749.46 05/01/2020 DD 05/01/05SEC ID: 31406YF47 GNMA POOL#0421389 6.500% 104.0960 7,890.690 8,281.53 8,213.89 0.00% -67.64 04/15/2026 DD 04/01/96SEC ID: 36206UC23 GNMA POOL#0449851 6.5000% 103.9107 11,920.540 12,510.97 12,386.72 0.00% -124.25 01/15/2028 DD 0 1/0 1/98SEC ID: 36208FWLO GNMA POOL#0466845 6.500% 104.0760 32,280.920 33,879.84 33,596.69 0.01% -283.15 06/15/2028 DD 06/01/98SEC ID: 36209BTA6 10 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD•COIVSOLIDATED-OCSG00010000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GNMA POOL#0468052 6.500% 104.0730 39,841.030 41,814.40 41,463.76 0.01% -350.64 07/15/2028 DD 07/01/98SEC ID: 36209C5M4 GNMA POOL 40476041 6.500% 104.0760 111,442.840 116,788.63 115,985.25 0.04% -803.38 06/15/2028 DD 06/01/98SEC ID: 36209MZE7 GNMA POOL 00478626 6.500% 104.0580 118,937.660 124,642.95 123,764.15 0.04"/, -878.80 01/15/2029 DD 01/01/99SEC ID: 36209QVT9 GNMA POOL 90480598 6.500% 104.0640 28,413.090 29,776.02 29,567.80 0.01% -208.22 10/15/2028 DD 10/0 1/98SEC ID: 36209S3F6 GNMA POOL 00512235 6.500% 104.0300 5,802.990 6,090.42 6,036.85 0.00% -53.57 11/15/2029 DD 11/01/99SEC ID: 36211GBC6 GNMA POOL#0514326 6.500% 104.0410 76,738.840 80,419.90 79,839.86 0.03% -580.04 07/15/2029 DD 07/01/99SEC ID: 36211JLF2 GNMA 11 POOL#0080023VAR RT 101.2690 123,142.090 125,181.62 124,704.76 0.04% -476.86 12/20/2026 DD 12/01/96SEC ID: 36225CAZ9 GNMA lI POOL#080088M 7.375% 100.9320 159,140.180 162,621.36 160,623.37 0.05% -1,997.99 06/20/2027 DD 06/01/97SEC ID: 36225CC20 GNMA 11 POOL#0080395VAR RT 101.0140 131,049.750 129,862.12 132,378.59 0.04% 2,516.47 04/20/2030 DD 04/01/OOSECID: 36225CNM4 GNMA II POOL#080408XVAR RT 101.0140 1,159,755.300 1,147,976.53 1,171,515.22 0.37% 23,538.69 05/20/2030 DD 05/01/OOSEC ID: 36225CN28 GNMA 11 POOL#0080965VAR RT 100.4940 1,112,493.640 1,111,798.32 1,117,989.36 0.36% 6,191.04 07/20/2034 DD 07/01/04SEC ID: 36225DCB8 GENERAL ELEC CO NTVAR RT 99.9840 6,500,000.000 6,502,203.50 6,498,960.00 2.08% -3,243.50 10/24/2005 DD 10/24/03SECID: 369604AZ6 GOLDMAN SACHS GRP MTN 100.1090 2,000,000.000 2,001,900.00 2,002,180.00 0.64% 280.00 #TR00203VAR RT 03/30/2007 DD 04/01/04SEC ID:38141EJL4 11 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD•COlYSOLIDATED-OCSG00010000 9/30/2005 Status: FINAL —_ _---- -__------------------ --- ---------------- Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GOLDMAN SACHS GRP MTN 100.5310 800,000.000 800,000.00 804,248.00 0.26% 4,248.00 NTR00207VAR RT 07/23/2009 DD 07/23/04SEC ID:38141EJQ3 GOLDMAN SACHS GRPVAR RT 100.2340 4,250,000.000 4,250,000.00 4,259,945.00 1.360% 9,945.00 06/28/2010 DD 06/28/05SEC ID: 38143UBD2 GNMA GTD REMIC TR 2000-9 100.7240 400,706.500 400,706.50 403,607.62 0.13% 2,901.12 FHVAR RT 02/16/2030SEC ID: 3837H4NX9 HSBC BK USA MTN #SR00012VAR 100.1250 250.000.000 250,170.00 250,312.50 0.08% 142.50 RT 09/21/2007 DD 09/21/04SEC ID:4042QOAM 1 HSBC FIN CORP NTVAR RT 100.0000 2,700,000.000 2,700,000.00 2,700,000.00 0.86% 0.00 09/15/2008 DD 09/15/05SEC 1D: 40429CCU4 HSBC FIN CORP MTN #TR 100.0310 3,000,000.000 3,000,000.00 3,000,930.00 0.96%, 930.00 00002VAR RT 02/28/2007 DD 03/29/05SEC ID:40429JAB3 HSBC FIN CORP MTN #TR 100.0150 3,000,000.000 2,995,830.00 3,000,450.00 0.96% 4,620.00 00007VAR RT 05/10/2010 DD 05/10/05SEC ID:40429JAG2 HOUSEHOLD FIN CORP NT 7.250% 101.6710 500,000.000 511,620.00 508,355.00 0.16% -3,265.00 05/15/2006 DD 05/15/96SEC ID: 441812FT6 HOUSEHOLD FIN CORP NT7.200% 102.0150 2,500,000.000 2,591,500.00 2,550,375.00 0.82% -41,125.00 07/15/2006 DD 07/15/99SECID: 441812GHI MERRILL LYNCH&CO INC NT6. 100.5150 102,000.000 102,736.44 102,525.30 0.03% -211.14 250%01/15/2006 DD 01/20/94SEC ID: 590188FC7 MORGAN STANLEYVAR RT 100.1090 2,000,000.000 2,002,980.00 2,002,180.00 0.64% -800.00 01/12/2007 DD 01/13/04SEC ID: 61746BAK2 MORGAN STANLEY NT 3.875% 97.4840 3,200,000.000 3,149,248.00 3,119,488.00 1.00% -29,760.00 01/15/2009 DD 01/13/04SEC ID: 61746BALO MORGAN STANLEY NTVAR RT 100.0310 650,000.000 650,000.00 650,201.50 0.21% 201.50 11/09/2006 DD 11/12/04SEC ID: 61746SAZ2 12 Workbench Asset Detail Report ID: OLS013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2005 Status: FINAL - - - ---- -----.-- ---- --Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base PUBLIC SVC ELEC&GAS CO 100.0000 1,400,000.000 1,400,000.00 1,400,000.00 0.45% 0.00 1STVAR RT 06/23/2006 DD 06/25/04SEC ID:744567FN3 RESIDENTIAL ASSET 03-RS11 99.9790 350,900.660 350,900.66 350,826.97 0.11% -73.69 AIIBVAR RT 12/25/2033 DD 12/30/03SEC ID: 760985K83 SLM CORP MTN #TR 00067VAR RT 100.3120 1,800,000.000 1,805,040.00 1,805,616.00 0.58% 576.00 07/25/2008 DD 07/26/04SECID: 78442FCU0 SLM STUDENT LN TR 04-6 A2VAR 100.0750 2,587,990.370 2,588,293.65 2,589,931.36 0.83% 1,637.71 RT O1/25/2013 DD 06/30/04SEC ID:78442GMA 1 SALOMON SMITH MTN # SR 100.2030 2,300,000.000 2,308,514.60 2,304,669.00 0.74% -3,845.60 00206VAR RT 05/18/2007 DD 05/28/02SEC ID:79548EJP8 SBA GTD DEV PARTN 2001-20C 16. 105.9350 2,498,126.090 2,498,126.09 2,646,389.87 0.85% 148.263.78 340%03/01/2021SECID: 83162CLJ0 SBA GTD PARTN CTFS SBIC-PS 01 100.1650 1,146,403.330 1,146,403.33 1,148,294.90 0.37% 1,891.57 6.640%02/10/201 1 DD 02/21/OI SEC ID:831641DD4 SOUTHWESTERN BELL TELCO 100.2650 1,000,000.000 1,007,520.00 1,002,650.00 0.32% -4,870.00 MED6.560% 11/15/2005 DD 11/15/96SEC ID:84534EDS4 TOYOTA MTR CR MTN #TR00413VAR 99.9840 2,000,000.000 1,998,188.00 1,999,680.00 0.64% 1,492.00 RT 09/18/2006 DD 03/16/05SEC ID:89233PTE6 UNITED AIRLS PASSTHRU 01-1 C 6. 61.2500 1,600,000.000 1,600,000.00 980,000.00 0.31% -620,000.00 831%03/01/2010 DD 08/22/OISEC ID:909317BC2 US TREASURY INFLATION INDEX 103.4375 8,525,791.680 7,586,479.00 8,818,865.77 2.82% 1,232,386.77 NT 3.375%01/15/2007 DD O1/15/97SEC ID:9128272M3 US TREASURY INFLATION INDEX NT 105.8750 2,539,551.000 2,754,748.60 2,688,749.62 0.86% -65,998.98 3.625%01/15/2008 DD 01/15/98SEC ID:9128273T7 US TREASURY INFLATION INDEX NT 108.5000 11,317,160.000 12,497,136.76 12,279,118.60 3.92% -218,018.16 3.875%01/15/2009 DD O1/15/99SEC ID:9128274YS 13 Workbench Asset Detail Report ID: GLS013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base U S TREASURY NOTES05.7500% 100.2815 3,900,000.000 4,193,993.62 3,910,978.50 1.25% -283,015.12 11/15/2005 DD 11/15/OOSEC ID: 9128276N7 U S TREASURY NOTES 4.250% 99.6250 2,100,000.000 2,105,699.39 2,092,125.00 0.670% -13,574.39 08/15/2013 DD 08/15/03SEC ID: 912828BH2 U S TREASURY NOTES 3.375%6 97.5800 10,900,000.000 10,708,447.11 10,636,220.00 3.40% -72,227.1 1 12/15/2008 DD 12/15/03SEC ID: 912828BT6 US TREASURY INFLATION INDEXED 102.1 100 105,734.000 107,939.37 107,964.99 0.03% 25.62 2.0000%01/15/2014 DD 01/15/04SEC ID:912828BW9 U S TREASURY NOTES 2.750% 99.0900 12,500,000.000 12,424,543.03 12,386,250.00 3.960% -38,293.03 06/30/2006 DD 06/30/04SECID: 912828CM0 US TREASURY INFLATION INDEX 102.1800 3,213,026.000 3,300,893.88 3,283,069.97 1.05% -17,823.91 NT 2.000%07/15/2014 DD 07/15/04SEC ID:912828CP3 U S TREASURY NOTES 2.750`%u 98.9600 14,000,000.000 13,927,531.82 13,854,400.00 4.43% -73,131.82 07/31/2006 DD 07/31/04SECID: 912828CQ1 U S TREASURY NOTES 2.375% 98.5000 35,300,000.000 35,120,197.62 34,770,500.00 11.11% -349,697.62 08/31/2006 DD 08/31/04SEC ID: 912828CU2 U S TREASURY NOTES 2.875% 98.6000 20,800,000.000 20,640,268.90 20,508,800.00 6.56% -131,468.90 11/30/2006 DD 11/30/04SEC ID: 912828DD9 U S TREASURY NOTES 3.500% 97.3000 13,920,000.000 13,626,296.77 13,544,160.00 4.33% -82,136.77 12/15/2009 DD 12/15/04SEC ID: 912828DE7 U S TREASURY NOTES 4.000%) 99.1400 16,200,000.000 16,201,259.92 16,060,680.00 5.13% -140,579.92 03/15/2010 DD 03/15/05SEC ID: 912828DP2 U S TREASURY NOTES 3.750% 99.3900 11,200,000.000 11,165,662.53 11,131,680.00 3.56% -33,982.53 03/31/2007 DD 03/31/05SECID: 912828DQ0 U S TREASURY NOTES 3.500% 98.9500 11,000,000.000 10,915,072.08 10,884,500.00 3.48% -30,572.08 05/31/2007 DD 05/31/05SEC ID: 912828DW7 14 Workbench Asset Detail Report ID: GL8013 Base Currency: USD j by Currency Alternate Base Currency: i Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base U S TREASURY NOTES 3.625% 99.0800 20,000,000.000 19,864,857.19 19,816,000.00 6.33% -48,857.19 06/30/2007 DD 06/30/05SEC ID: 912828DY3 VIRGINIA ELEC&PWR 01 SER A5. 100.6090 1,750,000.000 1,743,840.00 1,760,657.50 0.56% 16,817.50 750%03/31/2006 DD 03/27/01SEC ID:927804ENO TOTAL FIXED INCOME SECURITIES 340,952,756.500 340,874,290.40 339,165,619.00 108.41% -1,708,671.40 TOTAL ASSETS U.S. DOLLAR 398,378,453.840 314,564,592.12 322,855,920.72 100.00% -1,708,671.40 TOTAL ASSETS-BASE: 398,378,453.840 314,564,592.12 312,855,920.72 100.00% -1,708,671.40 15 Workbench Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss TYPe Description Reported Date Base Es Rate Shares/Par Base Base Base RECEIPTS AND DISBURSEMENT TRANSACTIONS CASH TRANSFERRED IN U.S.DOLLAR CD RECD FRM OCSF0752222 REPS CLIENT 9/2/2005 0.000 20,000,000.00 20,000,000.00 0.00 REBALANCINGSEC ID: NA9123459OCSF07511102: LIQUID OPER- 9/2/2005 PIMCO DISTRIBUTION TO PLAN ADMINISTRATOR U.S.DOLLAR CW TRAN TO ORANGE COUNTYSEC ID: 9/8/2005 0.000 -10,000,000.00 -10,000,000.00 0.00 NA9123459OCSF07522202: LONG TERM OPER-PIMCO 9/8/2005 CW TRAN TO ORANGE COUNTYSEC ID: 9/22/2005 0.000 -10,000,000.00 -10,000,000.00 0.00 NA9123459OCSF07522202: LONG TERM OPER-PIMCO 9/22/2005 TOTAL DISTRIBUTION TO PLAN ADMINISTRATOR U.S.DOLLAR: 0.000 -20,000,000.00 -20,000,000.00 0.00 TOTAL DISTRIBUTION TO PLAN ADMINISTRATOR BASE: 0.000 -20,000,000.00 -20,000,000.00 0.00 CASH TRANSFERRED OUT U.S.DOLLAR CW TRAN TO OCSF0751112 REPS CLIENT 9/2/2005 0.000 -20,000,000.00 -20,000,000.00 0.00 REBALANCINGSEC ID: NA9123459OCSF07522202: LONG TERM 9/2/2005 OPER-PIMCO TOTAL RECEIPTS AND DISBURSEMENT TRANSACTIONS BASE: 0.000 -20,000,000.00 -20,000,000.00 0.00 PURCHASES Workbench "Actual Settle Date 1 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD i OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base CASH&CASH EQUIVALENTS U.S.DOLLAR B BANKAMERICA CORP DISC 12/07/2005SEC 9/8/2005 99.0675 1,600,000.000 1,585,080.00 -1,585,080.00 0.00 ID:0660POZ71BROKER:BANC OF AMERICA 9/8/2005 SEC LLC,SAN FRANCISCOOCSF07511102: 9/8/2005 LIQUID OPER-PIMCO B DU PONT DE NEMOUR DISC 09/16/2005SEC 9/2/2005 99.8647 1,000,000.000 998,646.67 -998,646.67 0.00 ID:26354AWG5BROKER:GOLDMAN SACHS 9/2/2005 &CO,NYOCSF07511102: LIQUID OPER- 9/2/2005 PIMCO B DU PONT DE NEMOUR DISC 09/29/2005SEC 9/16/2005 99.8671 1,000,000.000 998,671.11 -998,671.11 0.00 ID:26354AWV2BROKER: CREDIT SUISSE, 9/16/2005 NEW YORKOCSF07511102: LIQUID OPER- 9/16/2005 PIMCO B DUPONT DE NEMOUR DISC 10/18/2005SEC 9/28/2005 99.7933 1,359,000.000 1,356,191.40 -1,356,191.40 0.00 ID:26354AXJ8BROKER:CREDIT SUISSE, 9/28/2005 NEW YORKOCSF07511102: LIQUID OPER- 9/28/2005 PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/2/2005 99.9624 4,100,000.000 4,098,460.22 -4,098,460.22 0.00 09/06/2005SEC ID:313385LJ3BROKER: 9/2/2005 BARCLAYS CAPITAL INC, NEW 9/2/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/6/2005 99.9906 4,100,000.000 4,099,612.78 -4,099,612.78 0.00 09/07/2005SEC ID:313385LKOBROKER: 9/6/2005 BARCLAYS CAPITAL INC, NEW 9/6/2005 YORKOCSF07511102:LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/7/2005 99.9906 1,300,000.000 1,299,877.94 -1,299,877.94 0.00 9/8/2005SEC ID:313385LL8BROKER: 9/7/2005 BARCLAYS CAPITAL INC,NEW 9/7/2005 YORKOCSF07511102: LIQUID OPER-PIMCO Workbench "Actual Settle Date 2 r c Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base B FEDERAL HOME LN BK CONS DISC N MAT 9/9/2005 99.9718 3,800,000.000 3,798,929.67 -3,798,929.67 0.00 09/12/2005SEC ID:313385LQ7BROKER: 9/9/2005 BARCLAYS CAPITAL INC, NEW 9/9/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/12/2005 99.9905 6,500,000.000 6,499,382.50 -6,499,382.50 0.00 09/13/2005SEC ID:313385LR5BROKER: 9/12/2005 BARCLAYS CAPITAL INC, NEW 9/12/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/14/2005 99.9906 2,800,000.000 2,799,735.56 -2,799,735.56 0.00 09/15/2005SEC ID: 313385LTI BROKER: 9/14/2005 BARCLAYS CAPITAL INC,NEW 9/14/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISCSEC ID: 9/15/2005 99.9901 6,500,000.000 6,499,353.61 -6,499,353.61 0.00 313385LU8BROKER:BARCLAYS CAPITAL 9/15/2005 INC,NEW YORKOCSF07511102: LIQUID 9/15/2005 OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/16/2005 99.9706 6,500,000.000 6,498,087.92 -6,498,087.92 0.00 09/19/2005SEC ID:313385LX2BROKER: 9/16/2005 BARCLAYS CAPITAL INC, NEW 9/16/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/19/2005 99.9901 6,500,000.000 6,499,359.03 -6,499,359.03 0.00 09/20/2005SEC ID:313385LYOBROKER: 9/19/2005 BARCLAYS CAPITAL INC,NEW 9/19/2005 YORKOCSF07511102:LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/20/2005 99.9903 6,500,000.000 6,499,368.06 -6,499,368.06 0.00 09/21/2005SEC ID:313385LZ7BROKER: 9/20/2005 MORGAN STANLEY&,CO INC, 9/20/2005 NYOCSF07511102:LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/21/2005 99.9900 6,500,000.000 6,499,350.00 -6,499,350.00 0.00 09/22/2005SEC ID:313385MAIBROKER: 9/21/2005 BARCLAYS CAPITAL INC, NEW 9/21/2005 YORKOCSF07511102:LIQUID OPER-PIMCO Workbench Actual Settle Date 3 i j Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00020000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss i Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B FEDERAL HOME LN BK CONS SYSTEM MAT 9/22/2005 99.9904 6,500,000.000 6,499,373.47 -6,499,373.47 0.00 09/23/2005SEC ID: 313385MB9BROKER: 9/22/2005 BANC OF AMERICA SEC LLC,SAN 9/22/2005 FRANCISCOOCSF07511102:LIQUID OPER- PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/23/2005 99.9702 6,500,000.000 6,498,060.83 -6,498,060.83 0.00 09/26/2005SEC ID:313385ME3BROKER: 9/23/2005 BARCLAYS CAPITAL INC,NEW 9/23/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/26/2005 99.9900 6,500,000.000 6,499,350.00 -6,499,350.00 0.00 09/27/2005SEC ID: 313385MFOBROKER: 9/26/2005 GOLDMAN SACHS&•CO,NYOCSF07511 102: 9/26/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/27/2005 99.9899 6,500,000.000 6,499,346.39 -6,499,346.39 0.00 09/28/2005SEC ID: 313385MG8BROKER: 9/27/2005 BARCLAYS CAPITAL INC, NEW 9/27/2005 YORKOCSF07511102: LIQUID OPER-PIMCO / B FEDERAL HOME LN BK CONS DISC N MAT 9/28/2005 99.9900 6,500,000.000 6,499,350.00 -6,499,350.00 0.00 09/29/2005SEC ID: 313385MH6BROKER: 9/28/2005 BARCLAYS CAPITAL INC,NEW 9/28/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/29/2005 99.9900 6,700,000.000 6,699,330.00 -6,699,330.00 0.00 09/30/2005SEC ID:313385MJ2BROKER: 9/29/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/29/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/30/2005 99.9735 4,900,000.000 4,898,701.50 -4,898,701.50 0.00 10/03/2005SEC ID:313385MMSBROKER: 9/30/2005 GOLDMAN SACHS&CO,NYOCSF07511102: 9/30/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/30/2005 99.9735 500,000.000 499,867.50 -499,867.50 0.00 10/03/2005SEC ID:313385MMSBROKER: 9/30/2005 BARCLAYS CAPITAL INC, NEW 9/30/2005 YORKOCSF07511102:LIQUID OPER-PIMCO Workbench Actual Settle Date 4 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00020000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ea Rate Shares/Par Base Base Base B FEDERAL HOME LN MTG CORP DISC MAT 9/2/2005 99.9624 1,900,000.000 1,899,286.44 -1,899,286.44 0.00 09/06/2005SEC ID:313397W8BROKER: 9/2/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/2/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/15/2005 99.9901 3,800,000.000 3,799,622.11 -3,799,622.11 0.00 09/16/2005SEC ID:313397LU3BROKER: 9/15/2005 BANC OF AMERICA SEC LLC,SAN 9/15/2005 FRANCISCOOCSF07511102: LIQUID OPER- PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/16/2005 99.9706 3,800,000.000 3,798,882.17 -3,798,882.17 0.00 09/19/2005SEC ID:313397LX7BROKER: 9/16/2005 GOLDMAN SACHS&CO,NYOCSF07511102: 9/16/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/19/2005 99.9901 3,800,000.000 3,799,625.28 -3,799,625.28 0.00 09/20/2005SEC ID:313397LY5BROKER: 9/19/2005 LEHMAN GOUT SECS INC,NYOCSF07511102:9/19/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/20/2005 99.9904 3,800,000.000 3,799,635.83 -3,799,635.83 0.00 09/21/2005SEC ID:313397LZ2BROKER: 9/20/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/20/2005 YORKOCSF07511102:LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/21/2005 99.9902 3,400,000.000 3,399,667.56 -3,399,667.56 0.00 09/22/2005SEC ID:313397MA6BROKER: 9/21/2005 LEHMAN GOVT SECS INC,NYOCSF0751 1102:9/21/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/22/2005 99.9903 3,100,000.000 3,099,698.61 -3,099,698.61 0.00 09/23/2005SEC ID:313397MB4BROKER: 9/22/2005 CITIGROUP GBL MKTS/SALOMON,NEW 9/22/2005 YORKOCSF07511102:LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/23/2005 99.9706 3,100,000.000 3,099,088.08 -3,099,088.08 0.00 09/26/2005SEC ID:313397ME8BROKER: 9/23/2005 BARCLAYS CAPITAL INC, NEW 9/23/2005 YORKOCSF07511102:LIQUID OPER-PIMCO Workbench Actual Settle Date 5 Transaction Detail Report 1D: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base B FED HOME LN MTG CORP DISC NTS MAT 9/26/2005 99.9901 3,100,000.000 3,099,692.58 -3,099,692.58 0.00 09/27/2005SEC ID: 313397MF5BROKER: 9/26/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/26/2005 YORKOCSF0751 1 102: LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/27/2005 99.9901 600,000.000 599,940.50 -599,940.50 0.00 09/28/2005SEC ID: 313397MG3BROKER: 9/27/2005 LEHMAN GOVT SECS INC,NYOCSF0751 1 102:9/27/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/28/2005 99.9901 1,100,000.000 1,099,890.92 -1,099,890.92 0.00 09/29/2005SEC ID:313397MH I BROKER: 9/28/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/28/2005 YORKOCSF0751 1102: LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/29/2005 99.9901 3,400,000.000 3,399,662.83 -3,399,662.83 0.00 09/30/2005SEC ID: 313397MJ7BROKER: 9/29/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/29/2005 YORKOCSF0751 1 102: LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/30/2005 99.9735 3,300,000.000 3,299,125.50 -3,299,125.50 0.00 10/03/2005SEC ID: 313397MMOBROKER: 9/30/2005 LEHMAN GOUT SECS INC, NYOCSF07511102:9/30/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/2/2005 98.1827 2,200,000.000 2,160,018.36 -2,160,018.36 0.00 02/28/2006SEC ID: 313397TR2BROKER: 9/2/2005 UBS SECURITIES LLC, 9/2/2005 STAMFORDOCSF07511102: LIQUID OPER- PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/13/2005 98.0890 700,000.000 686,623.00 -686,623.00 0.00 03/14/2006SEC ID:313397UF6BROKER: 9/13/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/13/2005 LIQUID OPER-PIMCO B FEDERAL NATL MTG ASSN DISCOUNT MAT 9/2/2005 98.1725 3,800,000.000 3,730,555.00 -3,730,555.00 0.00 03/01/2006SEC ID:313589TS2BROKER: 9/2/2005 UBS SECURITIES LLC, 9/2/2005 STAMFORDOCSF0751 1 102: LIQUID OPER- PIMCO Workbench 'Actual Settle Date 6 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED•OCSG00010000 9/1/2005 - 9/30/2005 status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B FEDERAL NATL MTG ASSN DISCOUNT MAT 9/28/2005 97.9808 2,500,000.000 2,449,520.28 -2,449,520.28 0.00 03/29/2006SEC ID:313589UWIBROKER: 9/28/2005 LEHMAN GOVT SECS INC, NYOCSF07522202:9/28/2005 LONG TERM OPER-PIMCO B U S TREASURY BILL DUE 09/15/2005 DD 9/2/2005 99.8754 1,200,000.000 1,198,505.00 -1,198,505.00 0.00 03/17/20005SEC ID:912795VR9BROKER: 9/2/2005 GOLDMAN SACHS&CO,NYOCSF07511102: 9/2/2005 LIQUID OPER-PIMCO B U S TREASURY BILL DUE 09/15/2005 DD 9/6/2005 99.9138 4,500,000.000 4,496,118.75 -4,496,118.75 0.00 03/17/20005SEC ID:912795VR9BROKER: 9/6/2005 CHASE/GREENWICH CAP,NEW 9/6/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B U S TREASURY BILL DUE 09/15/2005 DD 9/13/2005 99.9810 5,100,000.000 5,099,033.13 -5,099,033.13 0.00 03/17/20005SEC ID:912795VR9BROKER: 9/13/2005 BANC OF AMERICA SEC LLC,SAN 9/13/2005 FRANCISCOOCSF07511102:LIQUID OPER- PIMCO B UNITED STATES TREASURY BILL 0.000% 9/15/2005 98.1598 3,300,000.000 3,239,272.67 -3,239,272.67 0.00 03/16/2006 DD 09/15/05SEC ID: 9/15/2005 912795WT4BROKER: CHASE/GREENWICH 9/15/2005 CAP,NEW YORKOCSF07511102: LIQUID OPER-PIMCO B WELLS FARGO BANK NA INSTL C/D 3.500% 9/6/2005 100.0000 2,800,000.000 2,800,000.00 -2,800,000.00 0.00 09/14/2005 DD 09/07/05SECID: 9/7/2005 9497P2T23BROKER:WELLS FARGO 9/6/2005 BROKERAGE SVCS LLC, MINNEAPOCSF07511102: LIQUID OPER- B WffLq FARGO BANK NA INSTL C/D 3.760% 9/26/2005 100.0000 2,500,000.000 2,500,000.00 -2,500,000.00 0.00 10/13/2005 DD 09/27/05SEC ID: 9/27/2005 9497P23M7BROKER:WELLS FARGO 9/26/2005 BROKERAGE SVCS LLC, MINNEAPOCSF07511102:LIQUID OPER- B Rfl&CAT 2 REPO REPO 03.500% 9/1/2005 100.0000 14,000,000.000 14,000,000.00 -14,000,000.00 0.00 09/02/2005 DD 09/01/05SECID: 9/l/2005 99440H 151 BROKER:CREDIT SUISSE, NEW 9/1/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench Actual Settle Date 7 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B LEHMAN CAT 1 REPO REPO 03.530% 9/1/2005 100.0000 4,000,000.000 4,000,000.00 -4,000,000.00 0.00 09/02/2005 DD 09/01/05SECID: 9/1/2005 99440H61513ROKER: LEHMAN GOVT SECS 9/1/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 03.450% 9/2/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/06/2005 DD 09/02/05SECID: 9/2/2005 99440KI 13BROKER:CREDIT SUISSE, NEW 9/2/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 03.470%09/07/2005 9/6/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 DD 09/06/05SEC ID:99440L665BROKER: 9/6/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/6/2005 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 03.4601%09/08/2005 9/7/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 DD 09/07/05SEC ID:99440N315BROKER: 9/7/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/7/2005 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 03,450%09/09/2005 9/8/2005 100.0000 11,500,000.000 11,500,000.00 -11,500,000.00 0.00 DD 09/08/05SEC ID:99440QO29BROKER: 9/8/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/8/2005 LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 03.410% 9/9/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/12/2005 DD 09/09/05SECID- 9/9/2005 99440R746BROKER: LEHMAN GOVT SECS 9/9/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 03.400%09/13/2005 9/12/2005 100.0000 9,200,000.000 9,200,000.00 -9,200,000.00 0.00 DD 09/12/05SEC ID:99440T403BROKER: 9/12/2005 LEHMAN GOVT SECS INC, NYOCSF07511102:9/12/2005 LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 03.420% 9/13/2005 100,0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/14/2005 DD 09/13/05SEC ID: 9/13/2005 99440V325BROKER: LEHMAN GOVT SECS 9/13/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO Workbench Actual Settle Date 8 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss TYPe Description Reported Date Base Ex Rate Shares/Par Base Base Base B LEHMAN CAT 1 REPO REPO 03.440% 9/14/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/15/2005 DD 09/14/05SECID: 9/14/2005 99440X008BROKER: LEHMAN GOVT SECS 9/14/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 03.6100% 9/15/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/16/2005 DD 09/15/05SECID: 9/15/2005 99440Y74 1 BROKER: LEHMAN GOVT SECS 9/15/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 03.5300N, 9/16/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/19/2005 DD 09/16/05SECID: 9/16/2005 99441A205BROKER: LEHMAN GOVT SECS 9/16/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO B CS FOB CAT 2 REPO REPO 03.510% 9/19/2005 100.0000 3,200,000.000 3,200,000.00 -3,200,000.00 0.00 09/20/2005 DD 09/19/05SECID: 9/19/2005 99441CS99BROKER: CREDIT SUISSE,NEW 9/19/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO B LEHMAN CAT I REPO REPO 03.500% 9/19/2005 100.0000 11,800,000.000 11,800,000.00 -1 1,800,000.00 0.00 09/20/2005 DD 09/19/05SECID: 9/19/2005 99441C607BROKER: LEHMAN GOVT SECS 9/19/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 03.560% 9/20/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/21/2005 DD 09/20/05SECID: 9/20/2005 9944 1 E 124BROKER: LEHMAN GOVT SECS 9/20/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 03.630% 9/21/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/22/2005 DD 09/21/05SECID: 9/21/2005 99441F725BROKER:LEHMAN GOVT SECS 9/21/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO B CS FOB CAT 2 REPO REPO 03.620% 9/21/2005 100.0000 1,900,000.000 1,900,000.00 -1,900,000.00 0.00 09/22/2005 DD 09/21/05SECID: 9/21/2005 99441F865BROKER:CREDIT SUISSE,NEW 9/21/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench Actual Settle Date 9 Transaction Detail Report ID: EWBA09 Reported b Transaction Category p y g rq Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B CS FOB CAT 2 REPO REPO 03.610% 9/22/2005 100.0000 3,400,000.000 3,400,000.00 -3,400,000.00 0.00 09/23/2005 DD 09/22105SECID: 9/22/2005 99441H804BROKER:CREDIT SUISSE,NEW 9/22/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO B LEHMAN CAT 1 REPO REPO 03.600% 9/22/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/23/2005 DD 09/22/05SECID: 9/22/2005 99441H812BROKER:LEHMAN GOVT SECS 9/22/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 03.600% 9/23/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/26/2005 DD 09/23/05SECID: 9/23/2005 9944 1 K450BROKER:LEHMAN GOVT SECS 9/23/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO B CS FOB CAT 2 REPO REPO 03.610% 9/23/2005 100.0000 3,300,000.000 3,300,000.00 -3,300,000.00 0.00 09/26/2005 DD 09/23/05SECID: 9/23/2005 9944 1 K492BROKER:CREDIT SUISSE,NEW 9/23/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO B CS FOB CAT 2 REPO REPO 03.620% 9/26/2005 100.0000 3,500,000.000 3,500,000.00 -3,500,000.00 0.00 09/27/2005 DD 09/26/05SECID: 9/26/2005 99441 M 134BROKER: CREDIT SUISSE, NEW 9/26/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO B LEHMAN CAT I REPO REPO 03.620% 9/26/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/27/2005 DD 09/26/05SECID: 9/26/2005 99441M332BROKER:LEHMAN GOVT SECS 9/26/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 03.650% 9/27/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 09/28/2005 DD 09/27/05SEC ID: 9/27/2005 99441N967BROKER:LEHMAN GOVT SECS 9/27/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO B CS FOB CAT 2 REPO REPO 03.650% 9/27/2005 100.0000 3,500,000.000 3,500,000.00 -3,500,000.00 0.00 09/28/2005 DD 09/27/05SECID: 9/27/2005 99441PO38BROKER:CREDIT SUISSE,NEW 9/27/2005 YORKOCSF07522202:LONG TERM OPER- PIMCO Workbench "Actual Settle Date 10 Transaction Detail Report ID: EVVBA09 Reported by Transaction Category Base Currency: USD Ij OCSD•CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL i Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B CS FOB CAT 2 REPO REPO 03.580% 9/28/2005 100.0000 1,600,000.000 1,600,000.00 -1,600,000.00 0.00 09/29/2005 DD 09/28/05SECID: 9j28/2005 9944 1 Q838BROKER:CREDIT SUISSE,NEW 9/28/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO B LEHMAN CAT 2 REPO 03.5801%09/29/2005 9/28/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 DD 09/28/05SEC ID:99441Q994BROKER: 9/28/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/28/2005 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 03.520%09/30/2005 9/29/2005 100.0000 10,400,000.000 10,400,000.00 -10,400,000.00 0.00 DD 09/29/05SEC ID:99441S529BROKER: 9/29/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/29/2005 LIQUID OPER-PIMCO B CS FOB CAT 2 REPO REPO 03.250% 9/30/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 10/03/2005 DD 09/30/05SECID: 9/30/2005 99441U490BROKER:CREDIT SUISSE,NEW 9/30/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B DREYFUS TREASURY CASH MGMTSEC ID: 9/l/2005 1.0000 311.110 311.11 -311.11 0.00 996085247OCSF07511102: LIQUID OPER- 9/1/2005 PIMCO 9/1/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/1/2005 1.0000 6,093,527.590 6,093,527.59 -6,093,527.59 0.00 996085247OCSF07522202:LONG TERM 9/1/2005 OPER-PIMCO 9/l/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/2/2005 1.0000 11,907,494.970 11,907,494.97 -11,907,494.97 0.00 996085247OCSF07511102: LIQUID OPER- 9/2/2005 PIMCO 9/2/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/6/2005 1.0000 43,786.810 43,786.81 -43,786.81 0.00 9960852470CSF07522202:LONG TERM 9/6/2005 OPER-PIMCO 9/6/2005 Workbench Actual Settle Date 11 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B DREYFUS TREASURY CASH MGMTSEC ID: 9/7/2005 1.0000 1,259.450 1,259.45 -1,259.45 0.00 9960852470CSF07511102: LIQUID OPER- 9/7/2005 PIMCO 9/7/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/8/2005 1.0000 16,054.110 16,054.11 -16,054.11 0.00 9960852470CSF07511102: LIQUID OPER- 9/8/2005 PIMCO 9/8/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/9/2005 1.0000 98,172.410 98,172.41 -98,172.41 0.00 9960852470CSF07511102:LIQUID OPER- 9/9/2005 PIMCO 9/9/2005 B DREYFUS TREASURY CASH MGMTSEC 1D: 9/12/2005 1.0000 7.134.280 7,134.28 -7,134.28 0.00 9960852470CSF07522202: LONG TERM 9/12/2005 OPER-PIMCO 9/12/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/13/2005 1.0000 11,449.240 11,449.24 -11,449.24 0.00 9960852470CSF07511102:LIQUID OPER- 9/13/2005 PIMCO 9/13/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/14/2005 1.0000 3,291.000 3,291.00 -3,291.00 0.00 9960852470CSF07511102:LIQUID OPER- 9/14/2005 PIMCO 9/14/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/15/2005 1.0000 62,879.170 62,879.17 -62,879.17 0.00 9960852470CSF07511102:LIQUID OPER- 9/15/2005 PIMCO 9/15/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/15/2005 1.0000 256,401.160 256,401.16 -256,401.16 0.00 9960852470CSF07522202:LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 Workbench Actual Settle Date 12 • w Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B DREYFUS TREASURY CASH MGMTSEC ID: 9/16/2005 1.0000 119,023.470 119,023.47 -1 19,023.47 0.00 9960852470CSF07522202: LONG TERM 9/16/2005 OPER-PIMCO 9/16/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/19/2005 1.0000 11,804,486.860 11,804,486.86 -11,804,486.86 0.00 996085247OCSF07511102: LIQUID OPER- 9/19/2005 PIMCO 9/19/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/19/2005 1.0000 3,020,869.050 3,020,869.05 -3,020,869.05 0.00 9960852470CSF07522202:LONG TERM 9/19/2005 OPER-PIMCO 9/19/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/20/2005 1.0000 2,242,585.820 2,242,585.82 -2,242,585.82 0.00 9960852470CSF07522202: LONG TERM 9/20/2005 OPER-PIMCO 9/20/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/21/2005 1.0000 402,149.330 402,149.33 -402,149.33 0.00 996085247OCSF07511102: LIQUID OPER- 9/21/2005 PIMCO 9/21/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/23/2005 1.0000 100,340.940 100,340.94 -100,340.94 0.00 9960852470CSF07522202:LONG TERM 9/23/2005 OPER-PIMCO 9/23/2005 B DREYFUS TREASURY CASH MGMTSEC 1D: 9/23/2005 1.0000 4,031.090 4,031.09 -4,031.09 0.00 996085247OCSF07511102:LIQUID OPER- 9/23/2005 PIMCO 9/23/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/26/2005 1.0000 4,497.420 4,497.42 -4,497.42 0.00 996085247OCSF07511102: LIQUID OPER- 9/26/2005 PIMCO 9/26/2005 Workbench Actual Settle Date 13 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss TYpe Description Reported Date Base Es Rate Shares/Par Base Base Base B DREYFUS TREASURY CASH MGMTSEC ID: 9/26/2005 1.0000 1,415,258.140 1,415,258.14 -1,415,258.14 0.00 9960852470CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/27/2005 1.0000 351.940 351.94 -351.94 0.00 9960852470CSF07522202: LONG TERM 9/27/2005 OPER-PIMCO 9/27/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/27/2005 1.0000 1,899.670 1,899.67 -1,899.67 0.00 9960852470CSF07511102:LIQUID OPER- 9/27/2005 PIMCO 9/27/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/28/2005 1.0000 45,764.070 45,764.07 -45,764.07 0.00 9960852470CSF07511102:LIQUID OPER- 9/28/2005 PIMCO 9/28/2005 B BSDT-LATE MONEY DEPOSIT ACCTSEC ID: 9/23/2005 1.0000 12,797.280 12,797.28 -12,797.28 0.00 9960870940CSF07522202: LONG TERM 9/23/2005 OPER-PIMCO 9/23/2005 TOTAL CASH&CASH EQUIVALENTS U.S. DOLLAR: 479,234,816.380 478,952,767.14 -478,952,767.14 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: 479,234,816.380 478,952,767.14 -478,952,767.14 0.00 FIXED INCOME SECURITIES U.S.DOLLAR B BEAR STEARNS COS INC GLOBAL NT 3.000%9/13/2005 99.4330 112,000.000 111,364.96 -111,364.96 0.00 03/30/2006 DD 02/19/03SEC ID: 9/16/2005 073902CB2BROKER:JEFFERIES&CO INC, 9/13/2005 NEW YORKOCSF07511102:LIQUID OPER- PIMCO Workbench "Actual Settle Date 14 r � Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCS000010000 9/l/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IB BEAR STEARNS COS INC GLOBAL NT 3.000%9/13/2005 99.4330 0.000 0.00 -1,549.33 0.00 03/30/2006 DD 02/19/03SECID: 9/16/2005 073902CB2BROKER:JEFFERIES&CO INC, 9/13/2005 NEW YORKOCSF07511102: LIQUID OPER- PIMCO B FEDERAL HOME LN MTG CORP MTN 2.3751% 9/21/2005 98.8320 700,000.000 691,824.00 -691,824.00 0.00 05/19/2006 DD 05/19/03SECID: 9/22/2005 3128X1CU9BROKER: GOLDMAN SACHS& 9/21/2005 CO, NYOCSF07511102: LIQUID OPER-PIMCO IB FEDERAL HOME LN MTG CORP MTN 2.375% 9/21/2005 98.8320 0.000 0.00 -5,680.21 0.00 05/19/2006 DD 05/19/03SECID: 9/22/2005 3128X1CU9BROKER:GOLDMAN SACHS& 9/21/2005 CO,NYOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP MTN 6.250%9/27/2005 100.2656 1,000,000.000 1,002,656.25 -1,002,656.25 0.00 11/14/2013 DD 11/14/03SEC ID: 9/28/2005 3128X16R3BROKER: FIRST TENNESSEE BK 9/27/2005 NA-BOND DIV,MEMPHISOCSF07522202: LONG TERM OPER-PIMCO IB FEDERAL HOME LN MTG CORP MTN 6.250%9/27/2005 100.2656 0.000 0.00 -23,263.89 0.00 11/14/2013 DD 11/14/03SEC ID: 9/28/2005 3128XI6R3BROKER: FIRST TENNESSEE SK 9/27/2005 NA-BOND DIV, MEMPHISOCSF07522202: LONG TERM OPER-PIMCO B FEDERAL HOME LN BKS CONS BD 4.000% 9/28/2005 96.0781 3,000,000.000 2,882,343.75 -2,882,343.75 0.00 03/18/2011 DD 06/19/03SECID: 9/29/2005 31339XKN3BROKER: FIRST TENNESSEE BK 9/28/2005 NA-BOND DIV, MEMPHISOCS1707522202: LONG TERM OPER-PIMCO IB FEDERAL HOME LN BKS CONS BD 4.000% 9/28/2005 96.0781 0.000 0.00 -3,666.67 0.00 03/18/2011 DD 06/19/03SECID: 9/29/2005 31339XKN3BROKER:FIRST TENNESSEE BK 9/28/2005 NA-BOND DIV,MEMPHISOCSF07522202: LONG TERM OPER-PIMCO B HSBC FIN CORP NT VAR RT 09/15/2008 DD 9/8/2005 100.0000 2,700,000.000 2,700,000.00 -2,700,000.00 0.00 09/1 5/05SEC ID:40429CCU4BROKER:JP 9/15/2005 MORGAN CHASE BANK/HSBCI, NEW 9/8/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench 'Actual Settle Date 15 1 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base B MERRILL LYNCH&CO INC NT 6.250% 9/8/2005 100.7220 102,000.000 102,736.44 -102,736.44 0.00 01/15/2006 DD 01/20/94SEC ID: 9/13/2005 590188FC7BROKER:JEFFERIES&CO INC, 9/8/2005 NEW YORKOCSF07511102: LIQUID OPER- PIMCO IB MERRILL LYNCH&CO INC NT 6.250% 9/8/2005 100.7220 0.000 0.00 -1,027.08 0.00 01/15/2006 DD O1/20/94SECID: 9/13/2005 590188FC7BROKER:JEFFERIES&CO INC, 9/8/2005 NEW YORKOCSF07511102: LIQUID OPER- PIMCO B SLM CORP MTN N TR 00067 VAR RT 9/27/2005 100.2800 1,800,000.000 1,805,040.00 -1,805,040.00 0.00 07/25/2008 DD 07/26/04SECID: 9/30/2005 78442FCUOBROKER: GOLDMAN SACHS& 9/27/2005 CO, NYOCSF07522202: LONG TERM OPER- PIMCO IB SLM CORP MTN#TR 00067 VAR RT 9/27/2005 100.2800 0,000 0.00 -12,931.00 0.00 07/25/2008 DD 07/26/04SECID: 9/30/2005 78442FCUOBROKER:GOLDMAN SACHS& 9/27/2005 CO,NYOCSF07522202: LONG TERM OPER- PIMCO B SLM STUDENT LN TR 04-6 A2 VAR RT 9/29/2005 100.01 17 2,587,990.370 2,588,293.65 -2,588,293.65 0.00 O1/25/2013 DD 06/30/04SECID: 10/4/2005 78442GMA I BROKER: BARCLAYS CAPITAL 9/29/2005 INC,NEW YORKOCSF07522202:LONG TERM OPER-P1MCO IB SLM STUDENT LN TR 04-6 A2 VAR RT 9/29/2005 100.0117 0.000 0.00 -18,834.10 0.00 O1/25/2013 DD 06/30/04SECID: 10/4/2005 78442GMA 1 BROKER:BARCLAYS CAPITAL 9/29/2005 INC, NEW YORKOCSF07522202: LONG TERM OPER-PIMCO BC SALOMON SMITH MTN N SR 00206 VAR RT 8/23/2005 100.3702 -2,300,000.000 -2,308,514.60 2,308,514.60 0.00 05/18/2007 DD 05/28/02SECID: 8/26/2005 79548EJP8BROKER:CITIGROUP GBL 9/l/2005 MKTS/SALOMON,NEW YORKOCSF07522202: LONG TERM OPER-PIMCO IBC SALOMON SMITH MTN N SR 00206 VAR RT 8/23/2005 100.3702 0.000 0.00 13,432.34 0.00 05/18/2007 DD 05/28/02SECID: 8/26/2005 79548EJP8BROKER:CITIGROUP GBL 9/1/2005 MKTS/SALOMON,NEW YORKOCSF07522202: LONG TERM OPER-PIMCO Workbench 'Actual Settle Date 16 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00o10000 9/1/2005 - 9/30/2005 status: FINAL I Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base B SALOMON SMITH MTN # SR 00206 VAR RT 8/23/2005 100.3702 2,300,000.000 2,308,514.60 -2,308,514.60 0.00 05/18/2007 DD 05/28/02SECID: 8/26/2005 79548EJP8BROKER:CITIGROUP GBL 9/1/2005 MKTS/SALOMON, NEW YORKOCSF07522202:9/12/2005 LONG TERM OPER-PIMCO IB SALOMON SMITH MTN # SR 00206 VAR RT 8/23/2005 300.3702 0.000 0.00 -6,298.06 0.00 05/18/2007 DD 05/28/02SECID: 8/26/2005 79548EJP8BROKER: CITIGROUP GBL 9/1/2005 MKTS/SALOMON,NEW YORKOCSF07522202:9/12/2005' LONG TERM OPER-PIMCO B U S TREASURY NOTES 4.250%08/15/2013 9/19/2005 100.4248 2,100,000.000 2,108,920.04 -2,108.920.04 0.00 DD 08/15/03SEC ID: 912828BH2BROKER: 10/4/2005 LEHMAN GOVT SECS INC,NYOCSF07522202:9/19/2005 LONG TERM OPER-P1MCO IB U S TREASURY NOTES 4.250%08/15/2013 9/19/2005 100.4248 0.000 0.00 -12,126.36 0.00 DD 08/15/03SEC 1D: 912828BH2BROKER: 10/4/2005 LEHMAN GOVT SECS INC,NYOCSF07522202:9/19/2005 LONG TERM OPER-PIMCO B U STREASURY NOTES 3.375% 12/15/2008 9/21/2005 98.2426 10,900,000.000 10,708,447.11 -10,708,447.11 0.00 DD 12/15/03SEC ID:912828BT6BROKER: 10/19/2005 GOLDMAN SACHS&CO, NYOCSF07522202: 9/21/2005 LONG TERM OPER-PIMCO IB US TREASURY NOTES 3.375"/. 12/15/2008 9/21/2005 98.2426 0.000 0.00 -126,645.49 0.00 DD 12/15/03SEC 1D:912828BT6BROKER: 10/19/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/21/2005 LONG TERM OPER-PIMCO B U S TREASURY NOTES 2.750%06/30/2006 9/7/2005 99.2477 9,500,000.000 9,428,528.27 -9,428,528.27 0.00 DD 06/30/04SEC ID:912828CMOBROKER: 9/21/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/7/2005 LONG TERM OPER-PIMCO IB U S TREASURY NOTES 2.750%06/30/2006 9/7/2005 99.2477 0.000 0.00 -58,923.23 0.00 DD 06/30/04SEC ID:912828CMOBROKER: 9/21/2005 GOLDMAN SACHS&CO, NYOCSF07522202: 9/7/2005 LONG TERM OPER-PIMCO Workbench Actual Settle Date 17 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price_... Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B U S TREASURY NOTES 2.750%07/31/2006 9/14/2005 99.1398 5,000,000.000 4,956,992.20 -4,956,992.20 0.00 DD 07/31/04SEC ID:912828CQ I BROKER: 9/21/2005 MERRILL LYNCH PIERCE FENNER SMITH INC 9/14/2005 NYOCSF07522202: LONG TERM OPER-PIMCO IB U S TREASURY NOTES 2.750%,07/31/2006 9/14/2005 99.1398 0.000 0.00 -19,429.35 0.00 DD 07/31/04SEC ID:912828CQIBROKER: 9/21/2005 MERRILL LYNCH PIERCE FENNER SMITH INC 9/14/2005 NYOCSF07522202: LONG TERM OPER-PIMCO B U S TREASURY NOTES 2.750%07/31/2006 9/20/2005 99.1356 14,000,000.000 13,878,982.74 -13,878,982.74 0.00 DD 07/31/04SEC ID:912828CQ I BROKER: 10/19/2005 CREDIT SUISSE,NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO IB U S TREASURY NOTES 2.750%07/31/2006 9/20/2005 99.1356 0.000 0.00 -83,695.65 0.00 DD 07/31/04SEC ID:912828CQ1BROKER: 10/19/2005 CREDIT SUISSE,NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO B U S TREASURY NOTES 3.500% 12/15/2009 9/20/2005 97.8901 13,920,000.000 13.626,296.77 -13,626,296.77 0.00 DD 12/15/04SEC ID:912828DE7BROKER: 10/39/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO IB U S TREASURY NOTES 3.500% 12/15/2009 9/20/2005 97.8901 0.000 0.00 -167,724.59 0.00 DD 12/15/04SEC ID:912828DE7BROKER: 10/19/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO B U S TREASURY NOTES 4.000%03/15/2010 9/6/2005 100.5313 15,000,000.000 15,079,687.50 -15,079,687.50 0.00 DD 03/15/05SEC ID:912828DP2BROKER: 9/6/2005 UBS SECURITIES LLC, 9/6/2005 STAMFORDOCSF07522202: LONG TERM OPER-PIMCO IB U S TREASURY NOTES 4.000%03/15/2010 9/6/2005 100.5313 0.000 0.00 -285,326.09 0.00 DD 03/15/05SEC ID:912828DP2BROKER: 9/6/2005 UBS SECURITIES LLC, 9/6/2005 STAMFORDOCSF07522202: LONG TERM OPER-PIMCO Workbench Actual Settle Date 18 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B U STREASURY NOTES 3.7500%03/31/2007 9/20/2005 99.6840 11,200,000.000 11,164,607.55 -11,164,607.55 0.00 DD 03/31/05SEC ID:912828DQOBROKER: 10/19/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO IB U S TREASURY NOTES 3.750"/,03/31/2007 9/20/2005 99.6840 0.000 0.00 -21,923.08 0.00 DD 03/31/05SEC ID: 912828DQOBROKER: 10/19/2005 CREDIT SUISSE,NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO B U STREASURY NOTES 3.5001%05/31/2007 9/20/2005 99.2279 11,000,000.000 10,915,072.08 -10,915,072.08 0.00 DD 05/31/05SEC 1D: 912828DW7BROKER: 10/19/200.9 GOLDMAN SACHS&CO, NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO IB U S TREASURY NOTES 3.500%05/31/2007 9/20/2005 99.2279 0.000 0.00 -148,319.67 0.00 DD 05/31/05SEC ID:912828DW713ROKER: 10/19/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO B U S TREASURY NOTES 3.625%06/30/2007 9/20/2005 99.3817 20,000,000.000 19,876,334.40 -19,876,334.40 0.00 DD 06/30/05SEC ID: 912828DY3BROKER: 10/19/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO 113 U S TREASURY NOTES 3.6250/,06/30/2007 9/20/2005 99.3817 0.000 0.00 -218,682.07 0.00 DD 06/30/05SEC ID: 912828DY3BROKER: 10/19/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S.DOLLAR: 124,621,990.370 123,628,127.71 -124,830,741.29 0.00 TOTAL FIXED INCOME SECURITIES BASE: 124,621,990.370 123,628,127.71 -124,830,741.29 0.00 TOTAL PURCHASES BASE: 603,856,806.750 602,580,894.85 -603,783,508.43 0.00 Workbench "Actual Settle Date 19 Transaction Detail Report ID: 'EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PAY UPS FIXED INCOME SECURITIES U.S.DOLLAR PU FHLMC MULTICLASS MTG SER E3 A VAR RT 9/1/2005 100.0000 0.650 0.65 -0.65 0.00 08/15/2032 DD 12/01/97SECID: 9/1/2005 3133TCE950CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/16/2005* PU US TREASURY INFLATION INDEX NT 3.375% 7/15/2005 100.0000 38,096.140 38,096.14 -38,096.14 0.00 01/15/2007 DD 0 1/15/97SEC ID: 7/15/2005 9128272M30CSF07522202:LONG TERM 9/1/2005 OPER-PIMCO 9/30/2005* PU US TREASURY INFLATION INDEX NT 3.625% 7/15/2005 100.0000 11,340.000 11,340.00 -11,340.00 0.00 01/15/2008 DD O1/15/98SECID: 7/15/2005 9128273T70CSF07522202:LONG TERM 9/1/2005 OPER-PIMCO 9/30/2005* PU US TREASURY INFLATION INDEX NT 3.875% 7/15/2005 100.0000 50,540.000 50,540.00 -50,540.00 0.00 01/15/2009 DD 01/15/99SECID: 7/15/2005 9128274Y50CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/30/2005* PU US TREASURY INFLATION INDEXED 2.000'% 7/15/2005 100.0000 472.000 472.00 -472.00 0.00 01/15/2014 DD 01/15/04SECID: 7/15/2005 912828BW90CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/30/2005* PU US TREASURY INFLATION INDEX NT 2.000% 7/15/2005 100.0000 14,353.000 14,353.00 -14,353.00 0.00 07/15/2014 DD 07/15/04SEC ID: 7/15/2005 912828CP30CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/30/2005* TOTAL FIXED INCOME SECURITIES U.S.DOLLAR: 114,801.790 114,801.79 -114,801.79 0.00 TOTAL FIXED INCOME SECURITIES BASE: 114,801.790 114,801.79 -114,801.79 0.00 Workbench Actual Settle Date 20 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base TOTAL PAY UPS BASE: 114,801.790 114,801.79 -114,801.79 0.00 SALES CASH&CASH EQUIVALENTS U.S.DOLLAR S FEDERAL HOME LN MTG CORP DISC MAT 9/29/2005 98.8694 -200,000.000 -197,738.89 197,738.89 0.00 12/12/2005SEC ID:313397QKOBROKER: 9/29/2005 UBS SECURITIES LLC, 9/29/2005 STAMFORDOCSF07522202:LONG TERM OPER-PIMCO IS FEDERAL HOME LN MTG CORP DISC MAT 9/29/2005 98.8694 0.000 0.00 711.22 0.00 12/12/2005SEC ID-.313397QKOBROKER: 9/29/2005 UBS SECURITIES LLC, 9/29/2005 STAMFORDOCSF07522202: LONG TERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 9/29/2005 97.9808 -1,000,000.000 -979,808.11 979,808.11 0.00 03/29/2006SEC ID:313589UW I BROKER: 9/29/2005 MORGAN STANLEY&CO INC. 9/29/2005 NYOCSF07522202: LONG TERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 9/29/2005 97.9808 0.000 0.00 734.39 0.00 03/29/2006SEC 1D:313589UW1BROKER: 9/29/2005 MORGAN STANLEY&CO INC, 9/29/2005 NYOCSF07522202:LONG TERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 9/30/2005 97.9808 -1,500,000.000 -1,469,712.17 1,469,712.17 0.00 03/29/2006SEC ID:313589UW 1BROKER: 9/30/2005 CREDIT SUISSE,NEW YORKOCSF07522202: 9/30/2005 LONG TERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 9/30/2005 97.9808 0.000 0.00 1,037.83 0.00 03/29/2006SEC ID:313589UW1BROKER: 9/30/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 9/30/2005 LONG TERM OPER-PIMCO Workbench "Actual Settle Date 21 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base S U S TREASURY BILL 10/13/2005 DD 9/1/2005 98.5164 -2,000,000.000 -1,970,327.92 1,970,327.80 -0.12 04/14/2005SEC ID:912795VVOBROKER: 9/2/2005 GOLDMAN SACHS&CO,NYOCSF07511102: 9/1/2005 LIQUID OPER-PIMCO IS U S TREASURY BILL 10/13/2005 DD 9/1/2005 98.5164 0.000 0.00 22,246.64 0.00 04/14/2005SEC ID:912795VVOBROKER: 9/2/2005 GOLDMAN SACHS&CO, NYOCSF07511102: 9/1/2005 LIQUID OPER-PIMCO S CS FOB CAT 2 REPO REPO 03.500% 9/1/2005 100.0000 -3,200,000.000 -3,200,000.00 3,200,000.00 0.00 09/01/2005 DD 08/3 1/05SEC ID: 9/1/2005 99440F718BROKER: CREDIT SUISSE, NEW 9/1/2005 YORKOCSF07511102: LIQUID OPER-PIMCO IS CS FOB CAT 2 REPO REPO 03.500% 9/1/2005 100.0000 0.000 0.00 311.11 0.00 09/01/2005 DD 08/31/05SECID: 9/1/2005 99440F718BROKER:CREDIT SUISSE, NEW 9/1/2005 YORKOCSF07511102: LIQUID OPER-PIMCO S CS FOB CAT 2 REPO REPO 03.500% 9/2/2005 100.0000 -14,000,000.000 -14,000,000.00 14,000,000.00 0.00 09/02/2005 DD 09/0 1/05SEC ID: 9/2/2005 99440H 15 1 BROKER:CREDIT SUISSE, NEW 9/2/2005 YORKOCSF07522202:LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.500% 9/2/2005 100.0000 0.000 0.00 1,361.11 0.00 09/02/2005 DD 09/01/05SECID: 9/2/2005 99440HISIBROKER: CREDIT SUISSE,NEW 9/2/2005 YORKOCSF07522202:LONG TERM OPER- PIMCO S LEHMAN CAT 1 REPO REPO 03.530% 9/2/2005 100.0000 -4,000,000.000 -4,000,000.00 4,000,000.00 0.00 09/02/2005 DD 09/01/05SECID: 9/2/2005 9944OH615BROKER: LEHMAN GOVT SECS 9/2/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.530% 9/2/2005 100.0000 0.000 0.00 392.22 0.00 09/02/2005 DD 09/01/05SECID: 9/2/2005 99440H615BROKER: LEHMAN GOVT SECS 9/2/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO Workbench "Actual Settle Date 22 ti Transaction Detail Report ID: EwBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSOOOO10000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base S CREDIT SUISSE FB REPO 03.450% 9/6/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/06/2005 DD 09/02/05SECID: 9/6/2005 99440KI 13BROKER:CREDIT SUISSE, NEW 9/6/2005 YORKOCSF07511102: LIQUID OPER-PIMCO IS CREDIT SUISSE FB REPO 03.450% 9/6/2005 100,0000 0.000 0.00 4,523.33 0.00 09/06/2005 DD 09/02/05SECID: 9/6/2005 99440KI 1313ROKER:CREDIT SUISSE,NEW 9/6/2005 YORKOCSF07511102: LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 03.470%09/07/2005 9/7/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 DD 09/06/05SEC ID:9944OL665BROKER: 9/7/2005 LEHMAN GOVT SECS INC, NYOCSF07511102:9/7/2005 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 03.470%09/07/2005 9/7/2005 100.0000 0.000 0.00 1,137.39 0.00 DD 09/06/05SEC ID:99440L665BROKER: 9/7/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/7/2005 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 03.460%09/08/2005 9/8/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 DD 09/07/05SEC ID:99440N315BROKER: 9/8/2005 LEHMAN GOVT SECS INC,NYOCSF07511 102:9/8/2005 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 03.4609%09/08/2005 9/8/2005 100.0000 0.000 0.00 1,134.11 0.00 DD 09/07/05SEC ID:99440N315BROKER: 9/8/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/8/2005 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 03.450%09/09/2005 9/9/2005 100.0000 -11,500,000.000 -11,500,000.00 11,500,000.00 0.00 DD 09/08/05SEC ID:994400029BROKER: 9/9/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/9/2005 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 03.450%09/09/2005 9/9/2005 100.0000 0.000 0.00 1,102.08 0.00 DD 09/08/05SEC ID:994400029BROKER: 9/9/2005 LEHMAN GOVT SECS INC, NYOCSF07511102:9/9/2005 LIQUID OPER-PIMCO Workbench Actual Settle Date 23 Transaction Detail Report m: EWBA09 Reported by Transaction Category Base Currency: IISD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Cost Amount Net Gain/Loss Settle Date Base Price TYPe Description Reported Date Base Ex Rate Shares/Par Base Base Base S LEHMAN CAT 1 REPO REPO 03.410% 9/12/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/12/2005 DD 09/09/05SECID: 9/12/2005 9944OR746BROKER: LEHMAN GOVT SECS 9/12/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.410% 9/12/2005 100.0000 0.000 0.00 3,353.17 0.00 09/12/2005 DD 09/09/05SECID: 9/12/2005 99440R746BROKER: LEHMAN GOVT SECS 9/12/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 03.400%09/13/2005 9/13/2005 100.0000 -9,200,000.000 -9,200,000.00 9,200,000.00 0.00 DD 09/12/O5SEC ID:99440T403BROKER: 9/13/2005 LEHMAN GOVT SECS INC.NYOCSF07511102:9/13/2005 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 03.400%09/13/2005 9/13/2005 100.0000 0.000 0.00 868.89 0.00 DD 09/12/05SEC ID:99440T403BROKER: 9/13/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/13/2005 LIQUID OPER-PIMCO S LEHMAN CAT 1 REPO REPO 03.420% 9/14/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/14/2005 DD 09/13/05SECID: 9/14/2005 99440V325BROKER: LEHMAN GOUT SECS 9/14/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.420% 9/14/2005 100.0000 0.000 0.00 1,121.00 0.00 09/14/2005 DD 09/13/05SECID: 9/14/2005 99440V325BROKER: LEHMAN GOVT SECS 9/14/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO S LEHMAN CAT 1 REPO REPO 03.440% 9/15/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/15/2005 DD 09/14/05SEC ID: 9/15/2005 99440X008BROKER:LEHMAN GOVT SECS 9/15/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.440% 9/15/2005 100.0000 0.000 0.00 1,127.56 0.00 09/15/2005 DD 09/14/05SECID: 9/15/2005 99440X008BROKER:LEHMAN GOVT SECS 9/15/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO Workbench Actual Settle Date 24 Transaction Detail Report ID: EVIBA09 Reported by Transaction Category Base Currency: usD OCSD.CONSOLIDATED-OCS000010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base S LEHMAN CAT 1 REPO REPO 03.610% 9/16/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/16/2005 DD 09/15/05SECID: 9/16/2005 99440Y741 BROKER: LEHMAN GOVT SECS 9/16/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.610%, 9/16/2005 100.0000 0.000 0.00 1,183.28 0.00 09/16/2005 DD 09/15/05SECID: 9/16/2005 99440Y741 BROKER: LEHMAN GOVT SECS 9/16/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO S LEHMAN CAT 1 REPO REPO 03.5300i„ 9/19/2005 100.0000 -11,800.000.000 -11,800,000.00 11,800,000.00 0.00 09/19/2005 DD 09/16/05SECID: 9/19/2005 99441A205BROKER: LEHMAN GOVT SECS 9/19/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.530% 9/19/2005 100.0000 0,000 0.00 3,471.17 0.00 09/19/2005 DD 09/16/05SECID: 9/19/2005 99441A205BROKER: LEHMAN GOVT SECS 9/19/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO S CS FOB CAT 2 REPO REPO 03.510% 9/20/2005 100.0000 -3,200.000.000 -3,200,000.00 3,200,000.00 0.00 09/20/2005 DD 09/19/05SECID: 9/20/2005 99441C599BROKER:CREDIT SUISSE, NEW 9/20/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.510% 9/20/2005 100.0000 0.000 0.00 312.00 0.00 09/20/2005 DD 09/19/05SECID: 9/20/2005 99441C599BROKER:CREDIT SUISSE, NEW 9/20/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO S LEHMAN CAT 1 REPO REPO 03.500% 9/20/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/20/2005 DD 09/19/05SEC ID: 9/20/2005 9944 1 C607BROKER: LEHMAN GOVT SECS 9/20/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.500% 9/20/2005 100.0000 0.000 0.00 1,147.22 0.00 09/20/2005 DD 09/19/05SECID: 9/20/2005 99441C607BROKER: LEHMAN GOVT SECS 9/20/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO Workbench Actual Settle Date 25 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base S LEHMAN CAT 1 REPO REPO 03.560% 9/21/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/21/2005 DD 09/20/05SECID: 9/21/2005 99441 E I 24BROKER: LEHMAN GOVT SECS 9/21/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.560%, 9/21/2005 100.0000 0.000 0.00 1,166.89 0.00 09/21/2005 DD 09/20/05SECID: 9/21/2005 9944 1 E 1 24BROKER:LEHMAN GOVT SECS 9/21/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO S LEHMAN CAT 1 REPO REPO 03.630% 9/22/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/22/2005 DD 09/21/05SECID: 9/22/2005 9944 1 F725BROKER: LEHMAN GOVT SECS 9/22/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.630% 9/22/2005 100.0000 0.000 0.00 1,189.83 0.00 09/22/2005 DD 09/21/05SECID: 9/22/2005 9944117725BROKER: LEHMAN GOVT SECS 9/22/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO S CS FOB CAT 2 REPO REPO 03.620% 9/22/2005 100.0000 -1,900,000.000 -1,900,000.00 1,900,000.00 0.00 09/22/2005 DD 09/21/05SECID: 9/22/2005 99441F865BROKER:CREDIT SUISSE, NEW 9/22/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.620% 9/22/2005 100.0000 0.000 0.00 191.06 0.00 09/22/2005 DD 09/21/05SECID: 9/22/2005 9944 1 F865BROKER:CREDIT SUISSE, NEW 9/22/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO S CS FOB CAT 2 REPO REPO 03.610% 9/23/2005 100.0000 -3,400,000.000 -3,400,000.00 3,400,000.00 0.00 09/23/2005 DD 09/22/05SECID: 9/23/2005 9944 1 H804BROKER:CREDIT SUISSE,NEW 9/23/2005 YORKOCSF07522202:LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.610% 9/23/2005 100,0000 0.000 0.00 340.94 0.00 09/23/2005 DD 09/22/05SECID: 9/23/2005 99441 H804BROKER:CREDIT SUISSE, NEW 9/23/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench *Actual Settle Date 26 t Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD•COIVSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base S LEHMAN CAT 1 REPO REPO 03.600% 9/23/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/23/2005 DD 09/22/05SEC ID: 9/23/2005 99441H812BROKER: LEHMAN GOVT SECS 9/23/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.600% 9/23/2005 100.0000 0.000 0.00 1,180.00 0.00 09/23/2005 DD 09/22/05SECID: 9/23/2005 9944 1 H812BROKER: LEHMAN GOVT SECS 9/23/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO S LEHMAN CAT 1 REPO REPO 03.600% 9/26/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/26/2005 DD 09/23/05SECID: 9/26/2005 9944 1 K450BROKER: LEHMAN GOVT SECS 9/26/2005 INC,NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.600%, 9/26/2005 100.0000 0.000 0.00 3,540.00 0.00 09/26/2005 DD 09/23/05SECID: 9/26/2005 99441K450BROKER: LEHMAN GOVT SECS 9/26/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO S CS FOB CAT 2 REPO REPO 03.610% 9/26/2005 100.0000 -3,300,000.000 -3,300,000.00 3,300,000.00 0.00 09/26/2005 DD 09/23/05SECID: 9/26/2005 9944 1 K492 BROKER: CREDIT SUISSE, NEW 9/26/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.610% 9/26/2005 100.0000 0.000 0.00 992.75 0.00 09/26/2005 DD 09/23/05SECID: 9/26/2005 99441K492BROKER:CREDIT SUISSE, NEW 9/26/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO S CS FOB CAT 2 REPO REPO 03.620% 9/27/2005 100.0000 -3,500,000.000 -3,500,000.00 3,500,000.00 0.00 09/27/2005 DD 09/26/05SECID: 9/27/2005 99441 M 134BROKER: CREDIT SUISSE,NEW 9/27/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.620% 9/27/2005 100.0000 0.000 0.00 351.94 0.00 09/27/2005 DD 09/26/05SECID: 9/27/2005 99441 M 134BROKER: CREDIT SUISSE,NEW 9/27/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench *Actual Settle Date 27 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base S LEHMAN CAT 1 REPO REPO 03.620% 9/27/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/27/2005 DD 09/26/05SECID: 9/27/2005 99441M332BROKER: LEHMAN GOVT SECS 9/27/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT I REPO REPO 03.620% 9/27/2005 100.0000 0.000 0.00 1,186.56 0.00 09/27/2005 DD 09/26/05SECID: 9/27/2005 9944 1 M332BROKER: LEHMAN GOVT SECS 9/27/2005 INC,NYOCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 1 REPO REPO 03.650% 9/28/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/28/2005 DD 09/27/05SECID: 9/28/2005 9944 1 N967BROKER: LEHMAN GOVT SECS 9/28/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.650% 9/28/2005 100.0000 0.000 0.00 1,196.39 0.00 09/28/2005 DD 09/27/05SECID: 9/28/2005 99441N967BROKER: LEHMAN GOVT SECS 9/28/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO / S CS FOB CAT 2 REPO REPO 03.650% 9/28/2005 100.0000 -3,500,000.000 -3,500,000.00 3,500,000.00 0.00 09/28/2005 DD 09/27/05SECID: 9/28/2005 99441PO38BROKER: CREDIT SUISSE, NEW 9/28/2005 YORKOCSF07522202:LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.650% 9/28/2005 100.0000 0.000 0.00 354.86 0.00 09/28/2005 DD 09/27/05SECID: 9/28/2005 99441PO38BROKER:CREDIT SUISSE, NEW 9/28/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO S CS FOB CAT 2 REPO REPO 03.5800/., 9/29/2005 100.0000 -1,600,000.000 -1,600,000.00 1,600,000.00 0.00 09/29/2005 DD 09/28/05SECID: 9/29/2005 9944 1 Q838BROKER:CREDIT SUISSE,NEW 9/29/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.580% 9/29/2005 100.0000 0.000 0.00 159.11 0.00 09/29/2005 DD 09/28/05SECID: 9/29/2005 99441Q838BROKER: CREDIT SUISSE,NEW 9/29/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench Actual Settle Date 28 i Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base S LEHMAN CAT 2 REPO 03.5809,16 09/29/2005 9/29/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 DD 09/28/05SEC ID:99441Q994BROKER: 9/29/2005 LEHMAN GOVT SECS INC, NYOCSF07511102:9/29/2005 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 03.580%,09/29/2005 9/29/2005 100.0000 0.000 0.00 1,173.44 0.00 DD 09/28/05SEC ID:99441Q994BROKER: 9/29/2005 LEHMAN GOVT SECS INC, NYOCSF07511102:9/29/2005 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 03.520%,09/30/2005 9/30/2005 100.0000 -10,400,000.000 -10,400,000.00 10,400,000.00 0.00 DD 09/29/05SEC ID:9944 1 S529 BROKER: 9/30/2005 LEHMAN GOVT SECS INC,NYOCSF07511102:9/30/2005 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 03.520%09/30/2005 9/30/2005 100.0000 0.000 0.00 1,016.89 0.00 DD 09/29/05SEC ID:9944 1 S529BROKER: 9/30/2005 LEHMAN GOVT SECS INC,NYOCSF0751 1102:9/30/2005 LIQUID OPER-PIMCO S DREYFUS TREASURY CASH MGMTSEC ID: 9/2/2005 1.0000 -5,943.990.890 -5,943,990.89 5,943,990.89 0.00 9960852470CSF07522202: LONG TERM 9/2/2005 OPER-PIMCO 9/2/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/6/2005 1.0000 -11,885,785.870 -11,885,785.87 11,885,785.87 0.00 9960852470CSF07511102:LIQUID OPER- 9/6/2005 PIMCO 9/6/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/8/2005 1.0000 -579,172.460 -579,172.46 579,172.46 0.00 9960852470CSF07522202: LONG TERM 9/8/2005 OPER-PIMCO 9/8/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/12/2005 1.0000 -96,029.330 -96,029.33 96,029.33 0.00 9960852470CSF07511102: LIQUID OPER- 9/12/2005 PIMCO 9/12/2005 Workbench "Actual Settle Date 29 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss j Type Description Reported Date Base Es Rate Shares/Par Base Base Base S DREYFUS TREASURY CASH MGMTSEC ID: 9/16/2005 1.0000 -107,372.210 -107,372.21 107,372.21 0.00 9960852470CSF07511102: LIQUID OPER- 9/16/2005 PIMCO 9/16/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/20/2005 1.0000 -11,797,856.670 -11,797,856.67 11,797,856.67 0.00 9960852470CSF07511102: LIQUID OPER- 9/20/2005 PIMCO 9/20/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/21/2005 1.0000 -4,903,246.330 -4,903,246.33 4,903,246.33 0.00 9960852470CSF07522202: LONG TERM 9/21/2005 OPER-PIMCO 9/21/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/22/2005 1.0000 -479,723.640 -479,723.64 479,723.64 0.00 9960852470CSF07522202: LONG TERM 9/22/2005 OPER-PIMCO 9/22/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/22/2005 1.0000 -395,386.460 -395,386.46 395,386.46 0.00 9960852470CSF07511102: LIQUID OPER- 9/22/2005 PIMCO 9/22/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/28/2005 1.0000 -1,532,736.480 -1,532,736.48 1,532,736.48 0.00 9960852470CSF07522202:LONG TERM 9/28/2005 OPER-PIMCO 9/28/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/29/2005 1.0000 -97,819.390 -97,819.39 97,819.39 0.00 9960852470CSF07511102: LIQUID OPER- 9/29/2005 PIMCO 9/29/2005 S DREYFUS TREASURY CASH MGMTSEC 1D: 9/29/2005 1.0000 -100,159.760 -100,159.76 100,159.76 0.00 9960852470CSF07522202: LONG TERM 9/29/2005 OPER-PIMCO 9/29/2005 Workbench Actual Settle Date 30 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCS000010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price jTran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base S DREYFUS TREASURY CASH MGMTSEC ID: 9/30/2005 1.0000 -3,218.270 -3,218.27 3,218.27 0.00 9960852470CSF07511102: LIQUID OPER- 9/30/2005 PIMCO 9/30/2005 S DREYFUS TREASURY CASH MGMTSEC ID: 9/30/2005 1.0000 -279,043.970 -279,043.97 279,043.97 0.00 9960852470CSF07522202: LONG TERM 9/30/2005 OPER-PIMCO 9/30/2005 S BSDT-LATE MONEY DEPOSIT ACCTSEC ID: 9/26/2005 1.0000 -12,797.280 -12,797.28 12,797.28 0.00 9960870940CSF07522202: LONG TERM 9/26/2005 OPER-P[MCO 9/26/2005 TOTAL CASH&CASH EQUIVALENTS U.S.DOLLAR: -304,414,339.010 -304,331,926.10 304,393,242.36 -0.12 TOTAL CASH&CASH EQUIVALENTS BASE: -304,414,339.010 -304,331,926.10 304,393,242.36 -0.12 FIXED INCOME SECURITIES U.S.DOLLAR S FNMA POOL#0357328 5.000% 8/26/2005 100.2266 -19,892.180 -20,488.96 19,937.24 -551.72 01/01/2018 DD 01/01/03SECID: 9/19/2005 31376J4M8BROKER: MORGAN STANLEY& 9/1/2005 CO INC,NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL#0357328 5.000% 8/26/2005 100.2266 0.000 0.00 49.73 0.00 01/01/2018 DD 0 1/0 1/03SEC ID: 9/19/2005 31376J4M8BROKER: MORGAN STANLEY& 9/1/2005 CO INC,NYOCSF07522202: LONG TERM OPER-PIMCO S FNMA POOL#0357430 5.000% 8/26/2005 100.2266 -971,072.310 -981,996.87 973,272.39 -8,724.48 09/01/2018 DD 09/01/03SECID: 9/19/2005 31376KA7 I BROKER: MORGAN STANLEY& 9/1/2005 CO INC,NYOCSF07522202: LONG TERM OPER-PIMCO Workbench "Actual Settle Date 31 Transaction Detail Report ID: EWBA09 j Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCS000010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IS FNMA POOL#0357430 5.000% 8/26/2005 100.2266 0.000 0.00 2,427.68 0.00 09/01/2018 DD 09/01/03SEC ID: 9/19/2005 31376KA71BROKER: MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202:LONG TERM OPER-PIMCO S FNMA POOL#0555453 5.000% 8/26/2005 100.2266 -26,581.270 -26,921.85 26,641.49 -280.36 05/01/2018 DD 04/01/03SECID: 9/19/2005 31385XBW6BROKER: MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL#0555453 5.000% 8/26/2005 100.2266 0.000 0.00 66.45 0.00 05/01/2018 DD 04/01/03SECID: 9/19/2005 31385XBW6BROKER:MORGAN STANLEY& 9/1/2005 CO INC,NYOCSF07522202: LONG TERM OPER-PIMCO S FNMA POOL#0685665 5.000% 8/26/2005 100.2266 -24,132.330 -24,856.30 24,187.01 -669.29 02/01/2018 DD 02/01/03SECID: 9/19/2005 31400EW22BROKER:MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202:LONG TERM OPER-PIMCO IS FNMA POOL#0685665 5.000% 8/26/2005 100.2266 0.000 0.00 60.33 0.00 02/01/2018 DD 02/01/03SECID: 9/19/2005 31400EW22BROKER: MORGAN STANLEY& 9/l/2005 CO INC,NYOCSF07522202:LONG TERM OPER-PIMCO S FNMA POOL#0697026 5.000%, 8/26/2005 100.2266 -18,033.800 -18,574.83 18,074.65 -500.18 05/01/2018 DD 04/01/03SEC ID: 9/19/2005 31400TLF2BROKER:MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL#0697026 5.000% 8/26/2005 100.2266 0.000 0.00 45.08 0.00 05/01/2018 DD 04/01/03SECID: 9/19/2005 31400TLF2BROKER: MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO S FNMA POOL#0709963 5.000% 8/26/2005 100.2266 -17,255.590 -17,476.69 17,294.68 -182.01 06/01/2018 DD 06/01/03SECID: 9/19/2005 31401JWYOBROKER: MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO Workbench "Actual Settle Date 32 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IS FNMA POOL#0709963 5.000% 8/26/2005 100.2266 0.000 0.00 43.14 0.00 06/01/2018 DD 06/01/03SEC ID: 9/19/2005 31401JWYOBROKER: MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO S FNMA POOL 90713344 5.000% 8/26/2005 100.2266 -11,771.520 -12,124.65 11,798.19 -326.46 06/01/2018 DD 06/01/03SECID: 9/19/2005 31401NP52BROKER:MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL 00713344 5.000% 8/26/2005 100.2266 0.000 0.00 29.43 0.00 06/01/2018 DD 06/01/03SECID: 9/19/2005 31401NP52BROKER: MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO S FNMA POOL#0797160 5.000% 8/26/2005 100.2266 -949,386.060 -962,291.78 951,537.02 -10,754.76 12/01/2019 DD 12/01/04SECID: 9/19/2005 31405RTR7BROKER:MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL#0797160 5.000% 8/26/2005 100.2266 0.000 0.00 2,373.47 0.00 12/01/2019 DD 12/01104SEC ID: 9/19/2005 31405RTR7BROKER:MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO S FNMA POOL#0823787 5.000% 8/26/2005 100.2266 -962,173.490 -961,121.11 964,353.41 3,232.30 05/01/2020 DD 05/01/05SECID: 9/19/2005 31406YF47BROKER:MORGAN STANLEY& 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL#0823787 5.000% 8/26/2005 100.2266 0.000 0.00 2,405.43 0.00 05/01/2020 DD 05/01/05SECID: 9/19/2005 31406YF47BROKER:MORGAN STANLEY& 9/1/2005 CO INC,NYOCSF07522202: LONG TERM OPER-PIMCO S U S TREASURY NOTES 4.250%08/15/2013 9/19/2005 100.4688 -2,100,000.000 -2,105,699.39 2,109,843.75 4,144.36 DD 08/15/03SEC ID:912828BH2BROKER: 9/20/2005 LEHMAN GOVT SECS INC,NYOCSF07522202:9/19/2005 LONG TERM OPER-PIMCO Workbench "Actual Settle Date 33 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IS U S TREASURY NOTES 4.250%08/15/2013 9/19/2005 100.4688 0.000 0.00 8,730.98 0.00 DD 08/15/03SEC ID: 912828BH2BROKER: 9/20/2005 LEHMAN GOUT SECS INC, NYOCSF07522202:9/19/2005 LONG TERM OPER-PIMCO S U S TREASURY NOTES 3.375% 12/15/2008 9/21/2005 98.2188 -10,900,000.000 -10,644,845.28 10,705,843.75 60,998.47 DD 12/15/03SEC ID:912828BT6BROKER: 9/22/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/21/2005 LONG TERM OPER-PIMCO IS U S TREASURY NOTES 3.375% 12/15/2008 9/21/2005 98.2188 0.000 0.00 99,507.17 0.00 DD 12/15/03SEC ID:912828BT6BROKER: 9/22/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/21/2005 LONG TERM OPER-PIMCO S U S TREASURY NOTES 2.750%06/30/2006 9/7/2005 99.2188 -9,500,000.000 -9,487,380.07 9,425,781.25 -61,598.82 DD 06/30/04SEC ID:912828CMOBROKER: 9/8/2005 GOLDMAN SACHS&CO.NYOCSF07522202: 9/7/2005 LONG TERM OPER-PIMCO IS U S TREASURY NOTES 2.750%06/30/2006 9/7/2005 99.2188 0.000 0.00 49,694.29 0.00 DD 06/30/04SEC ID: 912828CMOBROKER: 9/8/2005 GOLDMAN SACHS&CO, NYOCSF07522202: 9/7/2005 LONG TERM OPER-PIMCO S U S TREASURY NOTES 2.750%,07/31/2006 9/14/2005 99.1250 -5,000,000.000 -5,010,604.84 4,956,250.00 -54,354.84 DD 07/31/04SEC 1D: 912828CQIBROKER: 9/15/2005 MERRILL LYNCH PIERCE FENNER SMITH INC 9/14/2005 NYOCSF07522202: LONG TERM OPER-PIMCO IS U S TREASURY NOTES 2.750%07/31/2006 9/14/2005 99.1250 0.000 0.00 17,187.50 0.00 DD 07/31/04SEC ID: 912828CQ I BROKER: 9/15/2005 MERRILL LYNCH PIERCE FENNER SMITH INC 9/14/2005 NYOCSF07522202: LONG TERM OPER-PIMCO S U S TREASURY NOTES 2.750%07/31/2006 9/20/2005 99.0625 -14,000,000.000 -13,927,531.83 13,868,750.00 -58,781.83 DD 07/31/04SEC ID:912828CQ1BROKER: 9/21/2005 CREDIT SUISSE,NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO Workbench Actual Settle Date 34 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base 1S U S TREASURY NOTES 2.750%,07/31/2006 9/20/2005 99.0625 0.000 0.00 54,402.17 0.00 DD 07/31/04SEC ID:912828CQIBROKER: 9/21/2005 CREDIT SUISSE,NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO S U S TREASURY NOTES 3.500%. 12/15/2009 9/20/2005 97.8750 -13,920,000.000 -13,733,493.75 13,624,200.00 -109,293.75 DO 12/15/04SEC ID:912828DE7BROKER: 9/21/2005 GOLDMAN SACHS&CO, NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO IS U S TREASURY NOTES 3.5001,1, 12/15/2009 9/20/2005 97.8750 0.000 0.00 130,452.46 0.00 DD 12/15/04SEC ID:912828DE7BROKER: 9/21/2005 GOLDMAN SACHS&CO.NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO S U S TREASURY NOTES 4.000%,03/15/2010 9/2/2005 100.7891 -15,000,000.000 -14,928,462.05 15,1 18,359.38 189,897.33 DD 03/15/05SEC ID:912828DP2BROKER: 9/6/2005 BARCLAYS CAPITAL INC,NEW 9/2/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS U S TREASURY NOTES 4.000%03/15/2010 9/2/2005 100.7891 0.000 0.00 285,326.09 0.00 DD 03/15/05SEC ID: 912828DP2BROKER: 9/6/2005 BARCLAYS CAPITAL INC,NEW 9/2/2005 YORKOCSF07522202:LONG TERM OPER- PI M CO S U S TREASURY NOTES 4.000%,03/15/2010 9/6/2005 100.5069 -15,000,000.000 -15,001,166.59 15,076,030.80 74,864.21 DD 03/15/05SEC ID: 912828DP2BROKER: 9/21/2005 UBS SECURITIES LLC, 9/6/2005 STAMFORDOCSF07522202: LONG TERM OPER-PIMCO IS U S TREASURY NOTES 4.000%03/15/2010 9/6/2005 100.5069 0.000 0.00 9,944.75 0.00 DD 03/15/05SEC ID:912828DP2BROKER: 9/21/2005 UBS SECURITIES LLC, 9/6/2005 STAMFORDOCSF07522202: LONGTERM OPER-PIMCO S U S TREASURY NOTES 3.750%03/31/2007 9/20/2005 99.6875 -11,200,000.000 -11,165,662.54 11,165,000.00 -662.54 DD 03/31/05SEC ID:912828DQOBROKER: 9/21/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO Workbench "Actual Settle Date 35 Transaction Detail Report ID: -EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOLIDATED-OCSG000100O0 9/1/2005- 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss i Type Description Reported Date Base Es Rate Shares/Par Base Base Base IS U S TREASURY NOTES 3.750%03/31/2007 9/20/2005 99.6875 0.000 0.00 199,672.13 0.00 DD 03/31/05SEC ID:912828DQOBROKER: 9/21/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO S U S TREASURY NOTES 3.5001%05/31/2007 9/20/2005 99.2188 -11,000,000.000 -10,902,179.20 10,914,062.50 11,883.30 DD 05/31/05SEC ID:912828DW713ROKER: 9/21/2005 GOLDMAN SACHS&CO, NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO IS U S TREASURY NOTES 3.500%05/31/2007 9/20/2005 99.2188 0.000 0.00 118,866.12 0.00 DD 05/31/05SEC ID:912828DW7BROKER: 9/21/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO S U STREASURY NOTES 3.625%06/30/2007 9/20/2005 99.3750 -20,000,000.000 -19,864,857.19 19,875,000.00 10,142.81 DD 06/30/05SEC ID:912828DY3BROKER: 9/21/2005 GOLDMAN SACHS&CO, NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO IS U S TREASURY NOTES 3.625%06/30/2007 9/20/2005 99.3750 0.000 0.00 163,519.02 0.00 DD 06/30/05SEC ID: 912828DY313ROKER: 9/21/2005 GOLDMAN SACHS&CO,NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S.DOLLAR: -130,620,298.550 -129,797,735.77 130,991,020.93 48,481.74 TOTAL FIXED INCOME SECURITIES BASE: -130,620,298.550 -229,797,735.77 130,991,020.93 48,481.74 TOTAL SALES BASE: -435,034,637.560 -434,129,661.87 435,384,263.29 48,481.62 PRINCIPAL PAYMENTS FIXED INCOME SECURITIES U.S.DOLLAR Workbench "Actual Settle Date 36 Transaction Detail Report 1D: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSGo0010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD WMP/HUNTOON PAIGE 0000-11150 7.500% 9/1/2005 100.0000 -890,500 -871.16 890.50 19.34 12/01/2030 DD 10/21/99SEC ID: 9/1/2005 302998GE30CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/29/2QQ5* PDC FHLMC MULTICLASS MTG SER E3 A VAR RT 8/1/2005 100.0000 13,104.100 13,118.06 -13,104.10 13.96 08/15/2032 DD 12/01/97SECID: 8/1/2005 3133TCE950CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/15/2UU5` PD FHLMC MULTICLASS MTG SER E3 A VAR RT 8/1/2005 100.0000 -13,104.750 -13,118.71 13,104.75 -13.96 08/15/2032 DD 12/01/97SECID: 8/1/2005 3133TCE950CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/16/2005 PD FHLMC MULTICLASS MTG SER E3 A VAR RT 9/1/2005 100.0000 -12.151.150 -12,164.09 12,151.15 -12.94 08/15/2032 DD 12/01/97SECID: 9/1/2005 3133TCE950CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO PD FHLMC GROUP#78-6064 6.384% 9/l/2005 100.0000 -2.047.050 -1,997.15 2,047.05 49.90 01/01/2028 DD 12/01/97SECID: 9/1/2005 31348SWZ30CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO PD FNMA POOL#0254510 5.000% 9/1/2005 100.0000 -13,658.530 -14,068.29 13,658.53 -409.76 11/01/2017 DD 10/01/02SECID: 9/l/2005 31371KVB40CSF07522202:LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0254631 5.000% 9/1/2005 100.0000 -2,479.450 -2,553.83 2,479.45 -74.38 02/01/2018 DD 01/01/03SECID: 9/1/2005 31371 KY470CSF07522202: LONGTERM 9/1/2005 OPER-PIMCO 9/26/2005 PD FNMA POOLN0254760 5.0000% 9/1/2005 100.0000 -2,186.440 -2,252.03 2,186.44 -65.59 06/01/2018 DD 05/01/03SECID: 9/1/2005 31371K5V90CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005. Workbench Actual Settle Date 37 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD ocw-CONSOLIDATED-oCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL#0254866 5.000% 9/l/2005 100.0000 -1,064.990 -1,096.94 1,064.99 -31.95 09/01/2018 DD 08/01/03SECID: 9/l/2005 31371 LCB30CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0254907 5.000% 9/l/2005 100.0000 -8,164.160 -8,164.16 8,164.16 0.00 10/01/2018 DD 09/01/03SECID: 9/l/2005 3137 1 LDLOOCSF07522202: LONGTERM 9/l/2005 OPER-PI M CO 9/26/2005• PD FNMA POOL#0254953 5.000% 9/1/2005 100.0000 -5,742.450 -5,816.03 5,742.45 -73.58 11/01/2018 DD 10/01/03SECID: 9/1/2005 31371LE2IOCSF07522202: LONGTERM 9/1/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0254987 5.000% 9/l/2005 100.0000 -11,695.010 -11,844.85 11,695.01 -149.84 12/01/2018 DD 11/01/03SECID: 9/l/2005 3137 1 LF460CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0323980 6.000% 9/l/2005 100.0000 -3,059.130 -3,193.92 3,059.13 -134.79 04/01/2014 DD 09/01/99SECID: 9/l/2005 31374T2MOOCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/2G/20U5* PD FNMA POOL 00357328 5.000% 9/l/2005 100.0000 -322.160 -331.82 322.16 -9.66 01/01/2018 DD 01/01/03SECID: 9/l/2005 31376J4M80CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0357430 5.000% 9/1/2005 100.0000 -26,487.270 -26,785.25 26,487.27 -297.98 09/01/2018 DD 09/01/03SECID: 9/1/2005 31376KA7 I OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 PD FNMA POOL#0456482 6.000% 9/1/2005 100.0000 -1,265.750 -1,321.52 1,265.75 -55.77 02/01/2014 DD 02/01/99SECID: 9/l/2005 31381CCT20CSF07522202:LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005* Workbench *Actual Settle Date 38 Transaction Detail Report ID: MWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL#0509649 6.00Wo 9/l/2005 100.0000 -815.650 -851.59 815.65 -35.94 09/01/2014 DD 09/01/99SECID: 9/1/2005 31383QEWOOCSF07522202: LONGTERM 9/l/2005 OPER-PIMCO 9/26/2005 PD FNMA POOL#0535451 6.000% 9/1/2005 100.0000 -2,534.290 -2,645.96 2,534.29 -111.67 06/01/2015 DD 07/01/OOSECID: 9/l/2005 31384VZQ80CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005; PD FNMA POOL#0555363 5.000% 9/l/2005 100.0000 -5,717.340 -5,888.86 5,717.34 -171.52 04/01/2018 DD 03/01/03SECID: 9/l/2005 31385W5YIOCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005` PD FNMA POOL#0555453 5.000% 9/1/2005 100.0000 -601.250 -608.95 601.25 -7.70 05/01/2018 DD 04/01/03SECID: 9/1/2005 31385XBW60CSF07522202: LONG TERM 9/l/2005 OPER-P1MC0 9/26/2005" PD FNMA POOL#0555545 5.000% 9/l/2005 100.0000 -5,016.020 -5,166.50 5,016.02 -150.48 06/01/2018 DD 05/01/03SECID: 9/l/2005 31385XES20CSF07522202:LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005" PD FNMA POOL#0555621 5.000% 9/l/2005 100.0000 -14,721.870 -14,887.49 14,721.87 -165.62 07/01/2018 DD 06/01/03SECID: 9/l/2005 31385XG680CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005- PD FNMA POOL#0681309 5.000% 9/1/2005 100.0000 -6,922.370 -7,130.04 6,922.37 -207.67 02/01/2018 DD 02/01/03SECID: 9/l/2005 31391Y3S40CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 PD FNMA POOL#0681334 5.000% 9/1/2005 100.0000 -932.850 -960.84 932.85 -27.99 02/01/2018 DD 01/01/03SECID: 9/1/2005 31391Y4TIOCSF07522202: LONGTERM 9/1/2005 OPER-PIMCO 9/26/2005 Workbench *Actual Settle Date 39 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss 'lope Description Reported Date Base Es Rate Shares/Par Base Base Base PD FNMA POOL#0684798 5.50011/4 9/l/2005 100.0000 -12,344.930 -12,334.32 12,344.93 10.61 03/01/2033 DD 03/01/03SECID: 9/1/2005 31400DX310CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0684908 5.00011% 9/l/2005 100.0000 -8,723.500 -8,835.27 8,723.50 -111.77 06/01/2018 DD 05/01/03SECID: 9/l/2005 31400D3R10CSF07522202:LONG TERM 9/l/2005 OPER-PI MCO 9/26/2005* PD FNMA POOL#0685200 5.000% 9/l/2005 100,0000 -4,412.950 -4,469.49 4,412.95 -56.54 03/01/2018 DD 03/01/03SECID: 9/1/2005 31400EGH70CSF07522202: LONGTERM 9/l/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0685665 5.000% 9/1/2005 100.0000 -643.950 -663.27 643.95 -19.32 02/01/2018 DD 02/01/03SEC ID: 9/1/2005 31400EW220CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0686318 5.000% 9/1/2005 100.0000 -4,930.280 -5,078.19 4,930.28 -147.91 03/01/2018 DD 03/01/03SECID: 9/l/2005 31400FPB70CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/2G/2UU5* PD FNMA POOL90688739 5.000% 9/l/2005 100.0000 -511.880 -527.24 511.88 -15.36 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31400JEL90CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0689859 5.000% 9/l/2005 100.0000 -405.130 -410.32 405.13 -5.19 05/01/2018 DD 05/01/03SECID: 9/l/2005 3140OKMG80CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0693834 5.000% 9/1/2005 100.0000 -11,809.060 -12,163.33 11,809.06 -354.27 03/01/2018 DD 03/01/03SECID: 9/1/2005 3140OPY740CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005* Workbench Actual Settle Date 40 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-0CSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL#0695852 5.000`%u 9/1/2005 100.0000 -3,876.460 -3,992.75 3,876.46 -116.29 05/01/2018 DD 05/01/03SECID: 9/l/2005 31400SBVOOCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL#0695889 5.000% 9/l/2005 100.0000 -8,405.730 -8,657.90 8,405.73 -252.17 05/01/2018 DD 05/01/03SECID: 9/l/2005 31400SC230CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO <)/26/2005 PD FNMA POOL#0697026 5.0001,46 9/l/2005 100.0000 -426.010 -438.79 426.01 -12.78 05/01/2018 DD 04/01/03SECID: 9/l/2005 3140OTLF20CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0702210 5.000% 9/l/2005 100.0000 -4,180.140 -4,305.54 4,180.14 -125.40 05/01/2018 DD 05/0 1/03SEC ID: 9/l/2005 3140]ADP90CSF07522202: LONGTERM 9/l/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0702328 5.000% 9/l/2005 100.0000 -2,072.710 -2,099.27 2,072.71 -26.56 05/01/2018 DD 04/01/03SEC ID: 9/l/2005 31401AHD20CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005 PD FNMA POOL#0709148 5.000% 9/1/2005 100.0000 -3,685.250 -3,795.81 3,685.25 -110.56 06/01/2018 DD 06/01/03SECID: 9/I/2005 31401HZM70CSF07522202:LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005 PD FNMA POOL 90709360 5.000% 9/l/2005 100.0000 -25,504.790 -25,831.57 25,504.79 -326.78 07/01/2018 DD 06/01/03SECID: 9/l/2005 3140IJB560CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/2G/2005* PD FNMA POOL#0709826 5.000% 9/l/2005 100.0000 -1,880.920 -1,905.02 1,880.92 -24.10 06/01/2018 DD 06/01/03SECID: 9/l/2005 31401JSP40CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005` Workbench "Actual Settle Date 41 Zip ale(] aluis pamod.. yauaq*joM .SOOZ/9Z/6 SOOZ/I/6 OOWId-213dO SOOZ/I/6 W2I3.L ONO'I :ZOZZZSLOdSOOWAAX I Ob I£ Q[O3S£0/i0/90 QQ 8IOZ/IO/LO O1'6ZZ- SL'9£9'L 88'998'L- 08L'9£9'L- 0000'OOI SOOZ/1/6 %000'S 6Z91ZLO#7OOd VWN3 (Id <SOOZ/9Z/6 OO W Id-N3dO SOOZ/I/6 'I SOOZ/I/6 WSSIONO �ZOZZZSLOASOOONPMiOVIE ul 03SEo/10/90 as 91OZ/10/90 IV89I'i- b6'9t,6'8£ Se'sIVov- Ot,6'9t6'8E- 0000'001 SOOZ/1/6 %000'S 69£OZLOUgOOd VWN3 Qd .SOOZ/9Z/6 SOOZ/1/6 OOWId-213dO SOOZ/I/6 W83,LONOl :ZOZZZSLOdSOOStOMIOtii£ QI OSSEO/IO/LO QQ 910Z/I0/LO 9S'16I 9Z'IS6'bi Z8'Zt,i'sI- 09Z'196`bI- 0000*001 SOOZ/1/G %000'S 61£OZLO#100d VWNJ dd . SOOZ/9Z/6 S OOWId-2I3dO SOOZ/I/6 SOOZ/I/6 WN:91`ONOI :ZOZZZSLOdSOOI SON iObI£ QI O3SE01I01LO OQ 81OZ/I0/LO ££'ZS- bS'b80`b LS'9£I'b- ObS't,807- 0000'OOI SOOZ/1/6 0/6000'9 S9££ILO#100d VWNJ Od .SOOZ/9Z/6 SOOZ/I/6 OOWId-213dO `O SOOZ/1/6 WN3.LNO'I :ZOZZZS b LOgSOOZSdN10i£ a133S£0/IO/90 Q4 8TOZ/I0/90 08'91- £S'9ZS ££'ZbS- OES'9ZS- 0000'001 SOOZ/I/6 %000'S VVEEILO#100d VWNd (Id .SOOZ/9Z/G SOOZ/I/6 OOWId-2I3dO SOOZ/1/6 WN3'1'JNO'I :ZOZZZSLOdSOOSOBNIObi£ =Q1O3S£0/I0/90 QQ 8i0Z/I0/90 LC'tiSt,- OL'Sbi'SI LO'009`9I- OOL'SbI`SI- 0000*001 SOOZ/1/6 %000'S S£ZOILO#7OOd VWNJ (Id • SOOZ/906 SOOZ/i/6 OOWId-213dO SOOZ/1/6 WZ131OMO'I :ZOZZZSLOdS0O0.�MIiOb l£ QI O3SEO/IO/90 oo 8IOZ/10/90 LO'I- tL'£8 I8118- ObL'£8- 0000'OOI SOOZ/1/6 %000'S £9660LO#100d VWNJ dd -S00OW/6 SOOZ/[/6 OO W Id-2i3dO WN3.L'ONOI :ZOZZZSL03SOOt7PAfi0bIE SOOZ/1/6 OI O3S£0/IO/90 Qa 8IOZ/IO/90 93'1£- Oi'£9t"Z 99't,6t,`Z- OOI'£9b'Z- 0000'OOI SOOZ/1/6 %000'S LI660LO#'1OOd VWNd dd ases assg ases Jed/saseiqg awu sa ases a;ea pa:podem uol;duosaQ adA ssoZ/ute :tax ;unoutV ;sod aoud axes a;eQ au;ag ue=Z j aoud IVOO l a;eQ aped, l°XL-1=;B;s SOOZ/OE/6 - SOOZ/i/6 000moonsoo-aazvanosmoo-asoo asn :6ouaunO assg dio2o4e3 uoi4ovsuvjj, Aq pwpodag 60VaMS. :al 3sodag P-84ou u0pousi vil Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL#0723487 5.000% 9/l/2005 100.0000 -857.120 -866.76 857.12 -9.64 06/01/2018 DD 06/01/03SECID: 9/l/2005 31402AXQ4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0725530 5.000% 9/l/2005 100.0000 -48,591.490 -49,252.03 48,591.49 -660.54 06/01/2019 DD 05/01/04SECID: 9/l/2005 31402DA75OCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005" PD FNMA POOL#0729601 5.000% 9/l/2005 100.0000 -11,077.360 -11,219.29 11,077.36 -141.93 07/01/2018 DD 07/01/03SECID: 9/l/2005 31402HRW3OCSF07522202: LONG TERM 9/l/2005 OPER-P1MCO 9/26/2005* PD FNMA POOL N0732873 5.000% 9/l/2005 100.0000 -211.700 -214.41 211.70 -2.71 11/01/2018 DD 10/01/03SECID: 9/l/2005 31402MFN5OCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005 PD FNMA POOL#0735227 5.500% 9/l/2005 100.0000 -19,552.080 -19,717.05 19,552.08 -164.97 02/01/2035 DD 01/01/05SECID: 9/l/2005 31402QYYIOCSF07522202: LONGTERM 9/l/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0735856 5.000% 9/1/2005 100.0000 -3,144.800 -3,175.27 3,144.80 -30.47 08/01/2020 DD 08/01/05SEC ID: 9/1/2005 31402RQHSOCSF07522202: LONGTERM 9/l/2005 OPER-PIMCO 9/2G/2005* PD FNMA POOL#0737130 5.000% 9/1/2005 100.0000 -2,698.030 -2,732.60 2,698.03 -34.57 10/01/2018 DD 10/01/03SECID: 9/1/2005 31402S4P9OCSF07522202: LONGTERM 9/1/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0738211 5.000% 9/1/2005 100.0000 -8,627.600 -8,738.14 8,627.60 -110.54 10/01/2018 DD 10/01/03SECID: 9/1/2005 31402UDQ2OCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005* Workbench *Actual Settle Date 43 b� aiva apiaS lumad.. gauagN.toM .SOOZ/9Z/G SOW[/6 00WId-213d0 'I SOOZ/1/6 WHSIONO :ZOZZZSLOAS000X£q£Ot,i£ :a103S£0/1o/II Qa BTOz/TO/I I LV6ZT- 60'9O1'01 9S'ti£z'Ol- 060'901'O1- 0000'OO1 SOOZ/1/6 %000'S t,16LtLo#100d VWN8 ad .SOOZ/9Z/6 SOOZ/I/6 OOWId-213d0 S00z/T/6 WS3,L�JNO'l :zO6us;L03SOObZ£8£OtlI£ :GI 03S£o/10/60 as RTOZ/10/60 z9'Stl- SS'09S'£ LI'909'£- oSS'09S'£' 0000'001 SOOZ/1/6 %000'S 91CVtLO#'I00d VWNd ad .SOOZ/9Z/6 OOWId-213dO 90OZ/1/6 WN31ON0'1 :ZoZZZSL03SO0ttSHe Cot,1£ SoOZ/1/6 :aI03S£O/TO/60 Qa 81OZ/I0/LO 89119- 96'L9Z't, £9'zz£'t,- OS6'L9Z't,- 0000'OO1 S00Z/1/6 %000'S 800trbL0#'IOOd VWNd ad •SOOZ/9Z/6 SOOZ/i/6 OO W[d-2I3d0 SOOZ/1/6 W831ONO'1 :ZOZZZSL03SOOINwacOtric :al 036£0/10/01 as 1310010/11 LI'IT- 091L8 19788- OO9'IL8- 0000*001 900Z/1/6 %00o'S 898£bLO#'IOOd VWNd ad .SOOZ/9z/6 SOOz/[/6 OOWId-213d0 SOOZ/1/6 Wx3.LONO'I :ZOZZZSLOgSOOLHSMZObT£ :GI 03S£0/TO/1T as 81OZ/10/01 SL'Itz- 17Z'898'81 66'601'6I- OtZ'898'81- 0000*001 90001/6 0/,,000'9 8tLOtLO#100d VWNq ad .SOOZ/9Z/G SOOz/I/6 0041Id-N3d0 SOOZ/1/6 W113J.ONO'I :ZOZZZSL03S0Oot,,LMZOt,I£ :a103S£0/TO/ol as sloz/10/01 LT's£- ZO'6L6'Z 61'LTO'£- OZO'6L6'Z- 0000'001 SOOZ/1/6 %000'S ILtp0tttLO#700d VWN3 ad .SOOZ/9Z/6 SOOZ/T/6 00WId-2I3d0 WN31OmO'I :ZOZZZSL03S0O8N.LMZot,i£ SOOZ/ /6 :al 03s£o/to/ol Qa Sloz/10/01 b8'9t,£- TL'1719'SZ SS'198'Sz- OIL'tIS'SZ- 0000'001 SOOZ/1/6 %000'S LS170tLO#'I00d VWNd ad •S;OOZ/9z/6 SOOz/i/6 00W1d-2I3d0 SOOZ/T/6 WN31 ONO'I :zOZZZSL03soozom izOt,i£ :al 03S£o/10/01 as sioz/10/01 81'9£- 9t"£z8'z b9'698'Z- 09t,'£z8'z- 0000*001 20OZ/1/6 '%,000'9 L8t,8£L0#100d VWNd ad asag aseg assa Jmd/sasBzls eva xa asBg a;Ba paasodag uopdpassa adAl ssoZ/uFBJD 40M ;unou V ;soa aaI=d aseg a;Ba al;;ag uBsy aaud IBooZ a;Ba apsiy i 'WKjj :sn:lBas 200Z/O£/6 - SOMA/6 0000t0000soo-affivanosmoo-asoo asa c6ouaisno asag AQo2a4le3 uoi4o7asuvz L Aq papodag 6ovams :aI aaodag ITB;aQ uoT}aBsulaiy Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL#0748400 5.0001% 9/l/2005 100.0000 -3,100.600 -3,140.33 3,100.60 -39.73 08/01/2018 DD 09/01/03SECID: 9/1/2005 31403GNR9OCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0748899 5.0000% 9/l/2005 100.0000 -26,948.500 -27,293.78 26,948.50 -345.28 12/01/2018 DD 11/01/03SECID: 9/1/2005 31403G7LOOCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9 �6 /� /..005' PD FNMA POOL#0750377 5.000% 9/1/2005 100.0000 -37,604.280 -38,086.08 37,604.28 -481.80 11/01/2018 DD 11/01/03SECID: 9/l/2005 31403JUA2OCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005, PD FNMA POOL#0750380 5.000% 9/l/2005 100.0000 -21,360.100 -21,633.78 21,360.10 -273.68 11/01/2018 DD 11/01/03SECID: 9/l/2005 31403JUD6OCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005 PD FNMA POOL#0750445 5.000% 9/l/2005 100.0000 -619.990 -627.93 619.99 -7.94 11/01/2018 DD 11/01/03SECID: 9/l/2005 31403JWE2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005- PD FNMA POOL#0751960 5.000% 9/1/2005 100.0000 -4,125.730 -4,178.59 4,125.73 -52.86 12/01/2018 DD 11/01/03SECID: 9/1/2005 31403LMH I OCSF07522202: LONGTERM 9/1/2005 OPER-PIMCO 9/26/2Q05` PD FNMA POOL#0753425 5.000% 9/1/2005 100.0000 -8,428.980 -8,526.44 8,428.98 -97.46 11/01/2018 DD 11/O1/03SECID: 9/l/2005 31403NA23OCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005 PD FNMA POOL#0755165 5.000% 9/l/2005 100.0000 -15,511.420 -15,710.16 15,511.42 -198.74 12/01/2018 DD 11/01/03SECID: 9/l/2005 31403Q6A30CSF07522202:LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005 Workbench *Actual Settle Date 45 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOLIDATED•OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL#0756372 5.0001%, 9/l/2005 100.0000 -4,132.290 -4,180.07 4,132.29 -47.78 11/01/2018 DD 11/01/03SECID: 9/1/2005 31403SJR80CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0784251 5.0000% 9/1/2005 100.0000 -129,147.340 -130,902.94 129,147.34 -1,755.60 11/01/2019 DD 11/01/04SECID: 9/l/2005 31405BH460CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0789670 5.000% 9/l/2005 100.0000 -18,535.110 -18,787.07 18,535.11 -251.96 12/01/2019 DD 12/01/04SECID: 9/l/2005 31405HJP40CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0792432 5.000% 9/l/2005 100.0000 -11,214.020 -11,366.46 11,214.02 -152.44 10/01/2019 DD 10/01/04SECID: 9/l/2005 31405LLM90CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0792437 5.000% 9/l/2005 100.0000 -172,439.800 -172,439.80 172,439.80 0.00 10/01/2019 DD 10/01/04SECID: 9/1/2005 31405LLS60CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/2G/2UU5' PD FNMA POOL#0794195 5.000% 9/l/2005 100.0000 -39,298.910 -39,833.13 39,298.91 -534.22 11/01/2019 DD 11/01/04SEC ID: 9/1/2005 31405NKG90CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0797160 5.0000% 9/1/2005 100.0000 -264,012.690 -267,601.61 264,012.69 -3,588.92 12/01/2019 DD 12/01/04SECID: 9/l/2005 31405RTR70CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005' PD FNMA POOL#0797408 5.000% 9/112005 100.0000 -3,026.730 -3,067.87 3,026.73 -41.14 12/01/2019 DD 12/01/04SECID: 9/1/2005 31405R3R50CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/26/2005* 6t,'orkbench 'Actual Settle Date 46 L� alua alllaS lunlov.. yauagN.roM .SOOZ/9Z/6 00W1d-N3d0 SOOZ/I/6 W83.1 ON01 :Z0ZZZSL0dS008H1N9ot�l£ SOOZ/1/6 :at 03SSo/10/10 as S£OZ/10/10 ti£'O 6b'T 6£ 9I'T 6£- 06b'16£- 0000*001 SOOZ/T/6 %OOS'S 0£6171 SOP 100d VWMA ad .s00Z/9Z/6 00Wld-N3dO SOOZ/1/6 WN31ON0I:ZOZZZSLOAS00£X3O9ObT£ SOOZ/1/6 :(]I03SSO/10/10 as b£OZ/10/LT OI'£ bl'Zl9'£ b0'609'£- 0bi'ZT9'£- 0000*001 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SOOZ/I/b 00 W[d-2I3d0 SOOZ/1/6 WN31ONO'1:ZOZZZSLOgS00ZX£21SObi£ :GI 03Stb0/10/ZI as 61OZ/10/ZT 60'617- LZ'l19'£ 9£'099'£- OLZ'l19'£- 0000*001 SOOZ/1/6 %000'S bibL6L01t 100d VWN3 ad asus aseg assg sea/sasegs a;eg xg assg a;eQ papodag uoi;duasaQ adAl i ao aseg a;eQ a ;as ssoZ/uieQ ;aH ;unouiv ;sod Fed uesy ' aqua jeaoZ a;eQ apesy 7VRIA MUMS SOOZ/OE/6 - $OOZ/T/6 000010000800-a3.61Lar7osK03-as30 aSn :Aauajsn3 assg Ajo2a4B3 uoi;aysulsa,I, Aq pa:podag j 60VEM3 :ai podag jiE;aQ u0pausuiel jL . I Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/200S Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL#0815923 5.5001% 9/1/2005 100.0000 -371.370 -371.05 371.37 0.32 03/01/2035 DD 03/01/05SECID: 9/1/2005 31406PPG80CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0816246 5.000% 9/1/2005 100.0000 -8,132.490 -8,123.60 8,132.49 8.89 03/01/2020 DD 03/01/05SECID: 9/1/2005 31406PZK8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0819566 5.500% 9/1/2005 100.0000 -5,540.940 -5,536.18 5,540.94 4.76 04/01/2035 DD 04/01/05SECID: 9/1/2005 31406TQTIOCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0822731 5.500'% 9/1/2005 100.0000 -6,672.050 -6,666.32 6,672.05 5.73 05/01/2035 DD 05/01/05SECID: 9/1/2005 31406XA85OCSF07522202: LONGTERM 9/1/2005 OPER-P1MCO 9/26/2005* PD FNMA POOL#0823232 5.500% 9/1/2005 100.0000 -375.490 -375.17 375.49 0.32 06/01/2035 DD 05/01/05SECID: 9/1/2005 31406XSV5OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005* PD FNMA POOL#0823787 5.0000/, 9/1/2005 100.0000 -7,678.570 -7,670.17 7,678.57 8.40 05/01/2020 DD 05/01/05SECID: 9/1/2005 31406YF47OCSF07522202: LONG TERM 9/1/2005 OPER-P1MCO 9/26/2005* PD GNMA POOL#0421389 6.500% 9/1/2005 100.0000 -22.770 -23.90 22.77 -1.13 04/15/2026 DD 04/01/96SECID: 9/1/2005 36206UC23OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005 PD GNMA POOL#0449851 6.500% 9/1/2005 100.0000 -26.770 -28.10 26.77 -1.33 O1/15/2028 DD 01/01/98SECID: 9/1/2005 36208FWLOOCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005* Workbench *Actual Settle Date 48 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CON SOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD GNMA POOL 40466845 6.500% 9/1/2005 100.0000 -49.270 -51.71 49.27 -2.44 06/15/2028 DD 06/01/98SECID: 9/1/2005 36209BTA60CSF07522202: LONGTERM 9/1/2005 OPER-P1MC0 9/]5/2005' PD GNMA POOL 90468052 6.5000% 9/1/2005 100.0000 -117.030 -122.83 117.03 -5.80 07/15/2028 DD 07/01/98SECID: 9/l/2005 36209CSM40CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/15/2005. PD GNMA POOL 90476041 6.500% 9/1/2005 100.0000 -4,385.560 -4,595.93 4,385.56 -210.37 06/15/2028 DD 06/01/98SECID: 9/1/2005 36209MZE70CSF07522202: LONGTERM 9/1/2005 OPER-PIMCO 9/15/2005° PD GNMA POOL00478626 6.500% 9/l/2005 100.0000 -189.230 -198.31 189.23 -9.08 01/15/2029 DD 01/01/99SEC ID: 9/l/2005 36209QVT90CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/15/2005 PD GNMA POOL#0480598 6.500% 9/l/2005 100.0000 -41.110 -43.08 41.11 -1.97 10/15/2028 DD 10/0 1/98SEC ID: 9/l/2005 36209S3F60CSF07522202: LONG TERM 9/l/2005 OPER-PIMCO 9/15/2005 PD GNMA POOL#0512235 6.500% 9/1/2005 100.0000 -8.340 -8.75 8.34 -0.41 11/15/2029 DD 11/O1/99SECID: 9/l/2005 3621 IGBC60CSF07522202:LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005` PD GNMA POOL#0514326 6.500% 9/1/2005 100.0000 -197.880 -207.37 197.88 -9.49 07/15/2029 DD 07/01/99SECID: 9/l/2005 36211JLF20CSF07522202:LONG TERM 9/l/2005 OPER-PIMCO 9/15/2005 PD GNMA 11 POOL#0080023 VAR RT 12/20/20269/1/2005 100.0000 -8,164.590 -8,299.82 8,164.59 -135.23 DD 12/01/96SEC ID: 9/1/2005 36225CAZ90CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005- Workbench Actual Settle Date 49 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD GNMA II POOL N080088M 7.375%, 9/1/2005 100.0000 -336.250 -343.61 336.25 -7.36 06/20/2027 DD 06/01/97SECID: 9/1/2005 36225CC200CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005 PD GNMA 11 POOL#0080395 VAR RT 9/l/2005 100.0000 -6,459.400 -6,400.86 6,459.40 58.54 04/20/2030 DD 04/01/OOSECID: 9/1/2005 36225CNM4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005 PD GNMA II POOL H080408X VAR RT 9/1/2005 100.0000 -62,003.470 -61,373.75 62,003.47 629.72 05/20/2030 DD 05/01/OOSECID: 9/1/2005 36225CN28OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005" PD GNMA 11 POOL#0080965 VAR RT 9/1/2005 100.0000 -37,393.080 -37,369.71 37,393.08 23.37 07/20/2034 DD 07/01/04SECID: 9/1/2005 36225DCB8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005" PD GNMA GTD REMIC TR 2000-9 FH VAR RT 9/16/2005 100.0000 -11,422.520 -11,422.52 11,422.52 0.00 02/16/2030SECID: 9/16/2005 3837H4NX90CSF07522202: LONG TERM 9/16/2005 OPER-PIMCO PD RESIDENTIAL ASSET 03-RS1 1 AI113 VAR RT 9/25/2005 100.0000 -22,595.550 -22,595.55 22,595.55 0.00 12/25/2033 DD 12/30/03SECID: 9/25/2005 76098SK83OCSF07522202: LONG TERM 9/25/2005 OPER-PIMCO 9/28/2005. PD SBA GTD DEV PARTN 2001-20C 1 6.340% 9/1/2005 100.0000 -276,215.980 -276,215.98 276,215.98 0.00 03/01/2021SECID: 9/1/2005 83162CWOOCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S.DOLLAR: -1,790,038.160 -1,806,875.90 1,790,038.16 -16,837.74 Workbench *Actual Settle Date 50 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base TOTAL FIXED INCOME SECURITIES BASE: -1,790,038.160 -1,806,875.90 1,790,038.16 -16,837.74 TOTAL PRINCIPAL PAYMENTS BASE: -1,790,038.160 -1,806,875.90 1,790,038.16 -16,837.74 MATURITIES CASH&CASH EQUIVALENTS U.S. DOLLAR MT DU PONT DE NEMOUR DISC 09/16/2005SEC 9/16/2005 100.0000 -1,000,000.000 -998,646.67 998,646.67 0.00 ID:26354AWGSOCSF07511102: LIQUID 9/16/2005 OPER-PIMCO 9/16/2005 MT DU PONT DE NEMOUR DISC 09/28/2005SEC 9/28/2005 100.0000 -1,900,000.000 -1,890,525.33 1,890,525.33 0.00 ID:26354AWU4OCSF07511102: LIQUID 9/28/2005 OPER-PIMCO 9/28/2005 MT DU PONT DE NEMOUR DISC 09/29/2005SEC 9/29/2005 100.0000 -1,000,000.000 -998,671.11 998,671.11 0.00 ID:26354AWV2OCSF07511102: LIQUID 9/29/2005 OPER-PIMCO 9/29/2005 MT FEDERAL HOME LN BK CONS DISC MAT 9/6/2005 100.0000 -4,100,000.000 -4,098,460.22 4,098,460.22 0.00 09/06/2005SECID: 9/6/2005 313385LJ3OCSF07511102: LIQUID OPER- 9/6/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/7/2005 100.0000 -4,100,000.000 -4,099,612.78 4,099,612.78 0.00 09/07/2005SECID: 9/7/2005 313385LKOOCSF07511102: LIQUID OPER- 9/7/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC MAT 9/8/2005 100.0000 -1,300,000.000 -1,299,877.94 1,299,877.94 0.00 9/8/2005SEC ID:313385LL8OCSF07511102: 9/8/2005 LIQUID OPER-PIMCO 9/8/2005 Workbench *Actual Settle Date 51 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss j Type Description Reported Date Base Ex Rate Shares/Par Base Base Base MT FEDERAL HOME LN BK CONS DISC MAT 9/9/2005 100.0000 -2,300,000.000 -2,281,279.28 2,281,279.28 0.00 9/9/2005SEC ID:313385LM6OCSF07511102:9/9/2005 LIQUID OPER-PIMCO 9/9/2005 MT FEDERAL HOME LN BK CONS DISC N MAT 9/12/2005 100.0000 -3,800,000.000 -3,798,929.67 3,798,929.67 0.00 09/12/2005SECID: 9/12/2005 313385LQ7OCSF07511102: LIQUID OPER- 9/12/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC MAT 9/13/2005 100.0000 -6,500,000.000 -6,499,382.50 6,499,382.50 0.00 09/13/2005SECID: 9/13/2005 313385LR5OCSF07511102: LIQUID OPER- 9/13/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/15/2005 100.0000 -2,800,000.000 -2,799,735.56 2,799,735.56 0.00 09/15/2005SECID: 9/15/2005 313385LTIOCSF07511 102: LIQUID OPER- 9/15/2005 PIMCO MT FEDERAL HOME LN SK CONS DISC BOND 9/16/2005 100.0000 -6,500.000.000 -6,499,353.61 6,499,353.61 0.00 MATURITYSEC ID: 9/16/2005 313385LU80CSF07511102: LIQUID OPER- 9/16/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/19/2005 100.0000 -6,500,000.000 -6,498,087.92 6,498,087.92 0.00 09/19/2005SECID: 9/19/2005 313385LX2OCSF07511102: LIQUID OPER- 9/19/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/20/2005 100.0000 -6,500,000.000 -6,499,359.03 6,499,359.03 0.00 09/20/2005SECID: 9/20/2005 313385LYOOCSF07511102:LIQUID OPER- 9/20/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/21/2005 100.0000 -6,500,000.000 -6,499,368.06 6,499,368.06 0.00 09/21/2005SECID: 9/21/2005 313385LZ7OCSF07511102: LIQUID OPER- 9/21/2005 PIMCO Workbench *Actual Settle Date 52 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: uSD OCSD-CONSOLIDATED-OCSGO0010000 9/1/2005- 9/30/2005 status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base MT FEDERAL HOME LN BK CONS DISC N MAT 9/22/2005 100.0000 -6,500,000.000 -6,499,350.00 6,499,350.00 0.00 09/22/2005SECID: 9/22/2005 313385MAIOCSF07511102: LIQUID OPER- 9/22/2005 PIMCO MT FEDERAL HOME LN BK CONS SYSTEM MAT 9/23/2005 100.0000 -6,500,000.000 -6,499,373.47 6,499,373.47 0.00 09/23/2005SECID: 9/23/2005 313385MB90CSF0751 1102: LIQUID OPER- 9/23/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/26/2005 100.0000 -6,500.000.000 -6,498,060.83 6,498,060.83 0.00 09/26/2005SECID: 9/26/2005 313385ME3OCSF07511102: LIQUID OPER- 9/26/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC MAT 9/27/2005 100.0000 -6,500,000.000 -6,499,350.00 6,499,350.00 0.00 09/27/2005SECID: 9/27/2005 313385MFOOCSF07511102: LIQUID OPER- 9/27/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC MAT 9/28/2005 100.0000 -6,500,000,000 -6,499,346.39 6,499,346.39 0.00 09/28/2005SECID: 9/28/2005 313385MG8OCSF07511102: LIQUID OPER- 9/28/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/29/2005 100.0000 -6,500,000.000 -6,499,350.00 6,499,350.00 0.00 09/29/2005SEC ID: 9/29/2005 313385MH60CSF0751 1102: LIQUID OPER- 9/29/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC MAT 9/30/2005 100.0000 -6,700,000.000 -6,699,330.00 6,699,330.00 0.00 09/30/2005SECID: 9/30/2005 313385MJ20CSF0751 l 102: LIQUID OPER- 9/30/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/6/2005 100.0000 -2,600,000.000 -2,593,641.91 2,593,641.91 0.00 09/06/2005SECID: 9/6/2005 313397LJ8OCSF07511102: LIQUID OPER- 9/6/2005 PIMCO Workbench Actual Settle Date 53 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSGO0010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base MT FEDERAL HOME LN MTG CORP DISC 9/13/2005 100.0000 -2,000,000.000 -1,983,569.44 1,983,569.44 0.00 0.000%09/13/2005 DD 09/13/04SEC ID: 9/13/2005 313397LROOCSF07511102:LIQUID OPER- 9/13/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/16/2005 100.0000 -3,800,000.000 -3,799,622.11 3,799,622.11 0.00 09/16/2005SECID: 9/16/2005 313397LU3OCSF07511102: LIQUID OPER- 9/16/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/19/2005 100.0000 -3,800,000.000 -3,798,882.17 3,798,882.17 0.00 09/19/2005SECID: 9/19/2005 313397LX7OCSF07511102: LIQUID OPER- 9/19/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/20/2005 100.0000 -3,800,000.000 -3,799,625.28 3,799,625.28 0.00 09/20/2005SECID: 9/20/2005 313397LY50CSF07511102: LIQUID OPER- 9/20/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/21/2005 100.0000 -3,800,000.000 -3,799,635.83 3,799,635.83 0.00 09/21/2005SECID: 9/21/2005 313397LZ2OCSF07511102: LIQUID OPER- 9/21/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/22/2005 100.0000 -3,400,000.000 -3,399,667.56 3,399,667.56 0.00 09/22/2005SECID: 9/22/2005 313397MA6OCSF07511102: LIQUID OPER- 9/22/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/23/2005 100.0000 -3,100,000.000 -3,099,698.61 3,099,698.61 0.00 09/23/2005SECID: 9/23/2005 313397MB4OCSF07511102: LIQUID OPER- 9/23/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/26/2005 100.0000 -3,100,000.000 -3,099,088.08 3,099,088.08 0.00 09/26/2005SECID: 9/26/2005 313397ME8OCSF07511102: LIQUID OPER- 9/26/2005 PIMCO Workbench *Actual Settle Date 54 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base MT FED HOME LN MTG CORP DISC NTS MAT 9/27/2005 100.0000 -3,100,000.000 -3,099,692.58 3,099,692.58 0.00 09/27/2005SECID: 9/27/2005 313397MF5OCSF07511102: LIQUID OPER- 9/27/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/28/2005 100.0000 -600,000.000 -599,940.50 599,940.50 0.00 09/28/2005SECID: 9/28/2005 313397MG3OCSF07511102: LIQUID OPER- 9/28/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/29/2005 100.0000 -1,100,000.000 -1,099,890.92 1,099,890.92 0.00 09/29/2005SECID: 9/29/2005 313397MH IOCSF07511102: LIQUID OPER- 9/29/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/30/2005 100.0000 -3,400,000.000 -3,399,662.83 3,399,662.83 0.00 09/30/2005SECID: 9/30/2005 313397MJ7OCSF07511102: LIQUID OPER- 9/30/2005 PIMCO MT GENERAL ELEC CAP DISC 09/09/2005SEC 9/9/2005 100.0000 -1,896,000.000 -1,889,711.25 1,889,711.25 0.00 ID:36959HW94OCSF07511102: LIQUID 9/9/2005 OPER-PIMCO 9/9/2005 MT U S TREASURY BILL 0.000%09/01/2005 DD 9/1/2005 100.0000 -800,000.000 -798,492.67 798,492.67 0.00 03/03/05SEC ID: 912795VP3OCSF07511102: 9/1/2005 LIQUID OPER-PIMCO 9/1/2005 MT U S TREASURY BILL DUE 09/15/2005 DD 9/15/2005 100.0000 -10,800,000.000 -10,793,656.88 10,793,656.88 0.00 03/17/20005SECID: 9/15/2005 912795VR90CSF0751 l 102:LIQUID OPER- 9/15/2005 PIMCO MT WELLS FARGO BANK NA INSTL C/D 3.500% 9/6/2005 100.0000 -1,800,000.000 -1,800,000.00 1,800,000.00 0.00 09/06/2005 DD 08/12/05SECID: 9/6/2005 9497P2H67OCSF07511102: LIQUID OPER- 9/6/2005 PIMCO Workbench Actual Settle Date 55 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base MT WELLS FARGO BANK NA INSTI,C/D 3.500% 9/14/2005 100.0000 -2,800,000.000 -2,800,000.00 2,800,000.00 0.00 09/14/2005 DD 09/07/05SECID: 9/14/2005 9497P2T23OCSF07511102: LIQUID OPER- 9/14/2005 PIMCO TOTAL CASH&CASH EQUIVALENTS U.S. DOLLAR: -156,196,000.000 -156,109,928.99 156,109,928.99 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: -156,196,000.000 -156,109,928.99 156,109,928.99 0.00 TOTAL MATURITIES BASE: -156,196,000.000 -156,109,928.99 156,109,928.99 0.00 MISCELLANEOUS ACTIVITY FIXED INCOME SECURITIES U.S. DOLLAR SW TO DELIVER OFF FRACTIONAL UNIT FNMA 9/26/2005 -0.030 -0.03 0.00 -0.03 POOL#0357328SEC ID: 9/26/2005 31376J4M8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO SW TO DELIVER OFF FRACTIONAL UNIT FNMA 9/26/2005 -0.010 -0.01 0.00 -0.01 POOL#0555453SEC ID: 9/26/2005 31385XBW6OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO SW TO DELIVER OFF FRACTIONAL UNIT FNMA 9/26/2005 -0.020 -0.02 0.00 -0.02 POOL 90709963SEC ID: 9/26/2005 31401JWYOOCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S.DOLLAR: -0.060 -0.06 0.00 -0.06 TOTAL FIXED INCOME SECURITIES BASE: -0.060 -0.06 0.00 -0.06 Workbench Actual Settle Date 56 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base i TOTAL MISCELLANEOUS ACTIVITY BASE: -0.060 -0.06 0.00 -0.06 INTEREST CASH&CASH EQUIVALENTS U.S.DOLLAR IT DU PONT DE NEMOUR DISC 09/16/2005SEC 9/16/2005 1,000,000.000 1,353.33 1,353.33 0.00 ID:26354AWGSOCSF0751 1 102: LIQUID 9/16/2005 OPER-PIMCO 9/16/2005 IT DU PONT DE NEMOUR DISC 09/28/2005SEC 9/28/2005 1,900,000.000 9,474.67 9,474.67 0.00 ID:26354AWU4OCSF07511102: LIQUID 9/28/2005 OPER-PIMCO 9/28/2005 IT DU PONT DE NEMOUR DISC 09/29/2005SEC 9/29/2005 1,000,000.000 1,328.89 1,328.89 0.00 ID:26354AWV2OCSF07511102: LIQUID 9/29/2005 OPER-PIMCO 9/29/2005 IT FEDERAL HOME LN BK CONS DISC MAT 9/6/2005 4,100,000.000 1,539.78 1,539.78 0.00 09/06/2005SECID: 9/6/2005 313385LJ3OCSF07511102: LIQUID OPER- 9/6/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/7/2005 4,100,000.000 387.22 387.22 0.00 09/07/2005SECID: 9/7/2005 313385LKOOCSF07511102: LIQUID OPER- 9/7/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 9/8/2005 1,300,000.000 122.06 122.06 0.00 9/8/2005SEC ID:313385LL8OCSF07511102: 9/8/2005 LIQUID OPER-PIMCO 9/8/2005 Workbench Actual Settle Date 57 Transaction Detail Report ID: EwEA09 i Reported by Transaction Category Base Currency: USD i OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Tree Description Reported Date Base Ea Rate Shares/Par Base Base Base IT FEDERAL HOME LN BK CONS DISC MAT 9/9/2005 2,300,000.000 18,720.72 18,720.72 0.00 9/9/2005SEC ID:313385LM6OCSF07511102:9/9/2005 LIQUID OPER-PIMCO 9/9/2005 IT FEDERAL HOME LN BK CONS DISC N MAT 9/12/2005 3,800,000.000 1,070.33 1,070.33 0.00 09/12/2005SECID: 9/12/2005 313385LQ7OCSF07511102: LIQUID OPER- 9/12/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 9/13/2005 6,500,000.000 617.50 617.50 0.00 09/13/2005SECID: 9/13/2005 313385LR50CSF0751 1102: LIQUID OPER- 9/13/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/15/2005 2,800,000.000 264.44 264.44 0.00 09/15/2005SECID: 9/15/2005 313385LTIOCSF07511 102: LIQUID OPER- 9/15/2005 PIMCO IT FEDERAL HOME LN BK CONS DISCSEC ID: 9/16/2005 6,500,000.000 646.39 646.39 0.00 313385LU8OCSF07511102: LIQUID OPER- 9/16/2005 PIMCO 9/16/2005 IT FEDERAL HOME LN BK CONS DISC N MAT 9/19/2005 6,500,000.000 1,912.08 1,912.08 0.00 09/19/2005SECID: 9/19/2005 313385LX20CSF0751 1102: LIQUID OPER- 9/19/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/20/2005 6,500,000.000 640.97 640.97 0.00 09/20/2005SECID: 9/20/2005 313385LYOOCSF07511102:LIQUID OPER- 9/20/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/21/2005 6,500,000.000 631.94 631.94 0.00 09/21/2005SECID: 9/21/2005 313385LZ7OCSF07511102: LIQUID OPER- 9/21/2005 PIMCO Workbench *Actual Settle Date 58 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FEDERAL HOME LN BK CONS DISC N MAT 9/22/2005 6,500,000.000 650.00 650.00 0.00 09/22/2005SECID: 9/22/2005 313385MAIOCSF07511102: LIQUID OPER- 9/22/2005 PIMCO IT FEDERAL HOME LN BK CONS SYSTEM MAT 9/23/2005 6,500,000.000 626.53 626.53 0.00 09/23/2005SECID: 9/23/2005 313385MB90CSF07511102: LIQUID OPER- 9/23/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/26/2005 6,500,000.000 1,939.17 1,939.17 0.00 09/26/2005SECID: 9/26/2005 313385ME30CSF07511102: LIQUID OPER- 9/26/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 9/27/2005 6,500,000.000 650.00 650.00 0.00 09/27/2005SECID: 9/27/2005 313385MFOOCSF07511102: LIQUID OPER- 9/27/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 9/28/2005 6,500,000.000 653.61 653.61 0.00 09/28/2005SECID: 9/28/2005 313385MG80CSF07511102: LIQUID OPER- 9/28/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/29/2005 6,500,000.000 650.00 650.00 0.00 09/29/2005SECID: 9/29/2005 313385MH60CSF07511 102: LIQUID OPER- 9/29/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 9/30/2005 6,700,000.000 670.00 670.00 0.00 09/30/2005SECID: 9/30/2005 313385MJ20CSF07511102:LIQUID OPER- 9/30/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/6/2005 2,600,000.000 6,358.09 6,358.09 0.00 09/06/2005SECID: 9/6/2005 313397W80CSF07511102: LIQUID OPER- 9/6/2005 PIMCO Workbench Actual Settle Date 59 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSGO0010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss TYPO Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FEDERAL HOME LN MTG CORP DISC 9/13/2005 0.000 16,430.56 16,430.56 0.00 0.000%09/13/2005 DD 09/13/04SEC ID: 9/13/2005 3 1 3397LROOCSF07511102: LIQUID OPER- 9/13/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/16/2005 3,800,000.000 377.89 377.89 0.00 09/16/2005SECID: 9/16/2005 313397LU3OCSF07511102: LIQUID OPER- 9/16/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/19/2005 3,800,000.000 1,117.83 1,117.83 0.00 09/19/2005SECID: 9/19/2005 313397LX70CSF0751 1102: LIQUID OPER- 9/19/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/20/2005 3,800,000.000 374.72 374.72 0.00 09/20/2005SECID: 9/20/2005 313397LYSOCSF0751 1 102: LIQUID OPER- 9/20/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/21/2005 3,800,000.000 364.17 364.17 0.00 09/21/2005SECID: 9/21/2005 313397LZ2OCSF07511102: LIQUID OPER- 9/21/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/22/2005 3,400,000.000 332.44 332.44 0.00 09/22/2005SECID: 9/22/2005 313397MA6OCSF07511102: LIQUID OPER- 9/22/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/23/2005 3,100,000.000 301.39 301.39 0.00 09/23/2005SECID: 9/23/2005 313397MB4OCSF07511102: LIQUID OPER- 9/23/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/26/2005 3,100,000.000 911.92 911.92 0.00 09/26/2005SECID: 9/26/2005 313397ME80CSF0751 1102: LIQUID OPER- 9/26/2005 PIMCO Workbench *Actual Settle Date 60 Transaction Detail Report ID: BWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONVSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss . Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FED HOME LN MTG CORP DISC NTS MAT 9/27/2005 3,100,000.000 307.42 307.42 0.00 09/27/2005SECID: 9/27/2005 313397MF50CSF07511102: LIQUID OPER- 9/27/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/28/2005 600,000.000 59.50 59.50 0.00 09/28/2005SECID: 9/28/2005 313397MG30CSF07511102: LIQUID OPER- 9/28/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/29/2005 1,100,000.000 109.08 109.08 0.00 09/29/2005SECID: 9/29/2005 313397MH10CSF07511102: LIQUID OPER- 9/29/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/30/2005 3,400,000.000 337.17 337.17 0.00 09/30/2005SECID: 9/30/2005 313397MJ70CSF07511102: LIQUID OPER- 9/30/2005 PIMCO IT GENERAL ELEC CAP DISC 09/09/2005SEC 9/9/2005 1,896,000.000 6,288.75 6,288.75 0.00 ID:36959HW940CSF07511102: LIQUID 9/9/2005 OPER-PIMCO 9/9/2005 IT U S TREASURY BILL 0.000%09/01/2005 DD 9/1/2005 800,000.000 1,507.33 1,507.33 0.00 03/03/05SEC ID: 912795VP30CSF07511102: 9/1/2005 LIQUID OPER-PIMCO 9/1/2005 IT U S.TREASURY BILL DUE 09/15/2005 DD 9/15/2005 10,800,000.000 6,343.12 6,343.12 0.00 03/17/20005SECID: 9/15/2005 912795VR90CSF07511102:LIQUID OPER- 9/15/2005 PIMCO IT WELLS FARGO BANK NA INSTL C/D 3.500% 9/6/2005 1,800,000.000 4,375.00 4,375.00 0.00 09/06/2005 DD 08/12/05SECID: 9/6/2005 9497P2H670CSF07511102: LIQUID OPER- 9/6/2005 PIMCO Workbench "Actual Settle Date 61 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status:FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT WELLS FARGO BANK NA INSTL C/D 3.500% 9/14/2005 2,800,000.000 1,905.56 1,905.56 0.00 09/14/2005 DD 09/07/05SECID: 9/14/2005 9497P2T230CSF07511 102:LIQUID OPER- 9/14/2005 PIMCO CW SHORT TERM FDS INT ADJ NET OF 9/30/2005 0.000 -8,220.66 -8,220.66 0.00 OVERNIGHT INTERESTSEC ID: 9/30/2005 990000PJ40CSF07511102: LIQUID OPER- 9/30/2005 PIMCO CW SHORT TERM FDS INT ADJ NET OF 9/30/2005 0.000 -484.36 -484.36 0.00 OVERNIGHT INTERESTSEC ID: 9/30/2005 990000PJ40CSF07522202: LONG TERM 9/30/2005 OPER-PIMCO IT DREYFUS TREASURY CASH MGMTSEC ID: 9/6/2005 0.000 5,114.93 5,114.93 0.00 9960852470CSF07522202:LONG TERM 9/1/2005 OPER-PIMCO 9/6/2005 9/6/2005- IT DREYFUS TREASURY CASH MGMTSEC ID: 9/6/2005 0.000 1,047.33 1,047.33 0.00 9960852470CSF07511102:LIQUID OPER- 9/1/2005 PIMCO 9/6/2005 9/6/2005- TOTAL CASH&CASH EQUIVALENTS U.S.DOLLAR: 154,196,000.000 89,808.81 89,808.81 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: 264,196,000.000 89,808.81 89,808.81 0.00 FIXED INCOME SECURITIES U.S.DOLLAR IT BEAR STEARNS COS INC GLOBAL NT 3.000%9/30/2005 112,000.000 1,680.00 1,680.00 0.00 03/30/2006 DD 02/19/03SECID: 9/30/2005 073902CB20CSF07511102: LIQUID OPER- 9/30/2005 PIMCO Workbench "Actual Settle Date 62 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base 1T CIT GROUP INC NEW SR NT VAR RT 9/22/2005 1,500,000.000 14,734.38 14,734.38 0.00 09/22/2006 DD 09/23/03SECID: 9/22/2005 125581AFSOCSF07522202: LONGTERM 9/22/2005 OPER-PIMCO 1T WMP/HUNTOON PAIGE 0000-11150 7.500% 9/29/2005 890.500 5,808.44 5,808.44 0.00 12/01/2030 DD 10/21/99SECID: 9/1/2005 302998GE30CSF07522202: LONG TERM 9/29/2005 OPER-PIMCO 9/29/2005. IT FEDERAL HOME LN MTG CORP MTN 4.000%9/22/2005 10,000,000.000 200,000.00 200,000.00 0.00 09/22/2009 DD 09/22/04SECID: 9/22/2005 3128X3WY50CSF07522202: LONG TERM 9/22/2005 OPER-PIMCO IT FHLMC MULTICLASS MTG SER E3 A VAR RT 9/16/2005 13,104.750 2,447.19 2,447.19 0.00 08/15/2032 DD 12/01/97SECID: 8/1/2005 3133TCE950CSF07522202: LONG TERM 9/16/2005 OPER-P1MCO 9/16/2005. IT FHLMC MULTICLASS MTG SER E3 A VAR RT 9/16/2005 0.650 0.65 0.65 0.00 08/15/2032 DD 12/01/97SEC ID: 8/1/2005 3133TCE950CSF07522202: LONG TERM 9/16/2005 OPER-PIMCO 9/16/2005- IT FHLMC GROUP#78-6064 6.384% 9/15/2005 205.290 181.19 181.19 0.00 01/01/2028 DD 12/01/97SEC ID: 8/1/2005 31348SWZ30CSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005` IT FEDERAL NATL MTG ASSN DEBS 6.625% 9/15/2005 2,100,000.000 69,562.50 69,562.50 0.00 09/15/2009 DD 09/01/99SECID: 9/15/2005 31359MEY50CSF07522202:LONG TERM 9/15/2005 OPER-PIMCO IT FEDERAL NATL MTG ASSN DEBS 3.125% 9/16/2005 6,800,000.000 106,250.00 106,250.00 0.00 03/16/2009 DD 03/16/04SECID: 9/16/2005 31359MUQ40CSF07522202: LONGTERM 9/16/2005 OPER-PIMCO Workberuh Actual Settle Date 63 Transaction Detail Report ID: EWBA09 j Reported by Transaction Category Base Currency- USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base IT FNMA POOL#0254510 5.000% 9/26/2005 13,658.530 2,356.15 2,356.15 0.00 11/01/2017 DD 10/01/02SECID: 9/1/2005 31371KVB4OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0254631 5.000% 9/26/2005 2,479.450 503.70 503.70 0.00 02/01/2018 DD 01/01/03SECID: 9/1/2005 31371KY470CSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0254760 5.000% 9/26/2005 2,186.440 455.75 455.75 0.00 06/01/2018 DD 05/01/03SECID: 9/1/2005 31371K5V90CSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005. IT FNMA POOL#0254866 5.000% 9/26/2005 1,064.990 208.45 208.45 0.00 09/01/2018 DD 08/01/03SEC ID: 9/1/2005 31371LCB30CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0254907 5.000% 9/26/2005 8,164.160 1,549.64 1,549.64 0.00 10/01/2018 DD 09/01/03SEC ID: 9/1/2005 31371 LDLOOCSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0254953 5.000% 9/26/2005 5,742.450 1,103.88 1,103.88 0.00 I1/01/2018 DD 10/0 1/03SEC ID: 9/l/2005 3137 1 LE2 IOCSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0254987 5.000% 9/26/2005 11,695.010 2,957.40 2,957.40 0.00 12/01/2018 DD 11/01/03SEC ID: 9/1/2005 3137ILF460CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0323980 6.000% 9/26/2005 3,059.130 581.57 581.57 0.00 04/01/2014 DD 09/01/99SECID: 9/1/2005 31374T2MOOCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005' Workbench 'Actual Settle Date 64 99 aled aliias lTeniaV. yauagXaoAj ,SOOZ/9Z/6 SOOZ/9Z/b 00 W Id-21Sd0 SOOZ/i/6 WNS.LONO'I:ZOZZZSLOdS00ZSSXS8£I£ :Ql 03s£o/1o/so as 81oZ/10/90 00'0 9L'LO6 9L'LO6 OZ0'910`s SOOZ/9Z/6 %000'9 SbSSSSO#'IOOd VWNd .LI .SOOZ/9Z/G SOOZ/9Z/6 00WId-21Sd0 SOOZ/1/6 WH31LONO'1 :ZOZZZSLOSS009mGxs8£1£ :aI 0Ss£o/1o/bo as slot/10/so 00'0 WTI 9Z'£11 oSZ'109 SOOZ/9Z/6 %000'9 £SbSSSO#'IOOd VWNd LI =SOOZ/9Z/6 SOOZ/9Z/G 00WId-2ISd0 1. SOOZ/I/6 WZ12ONOI :ZOZZZSLOdsoolAsmse£I£ :GI 03S£o/10/£o as 81OZ/10/bo 00'0 OZ'L8o,I 06'L80,I Ob£'LIL`S SOOZ/9Z/6 %000'S E9E2920#100d VWNd LI •SOOZ/9Z/6 SOOZ/9Z/6 00WId-NSdO SOOZ/1/6 KN31ONO'I:ZOZZZSLOdS008aZAb8£lE :41 0SS00/Io/Lo oa sloZ/10/90 00'0 ZZ'bSb LZ'bSb 06Z'b£S`Z SOOZ/9Z/6 °/,000'9 iSbSE901l100d VWN3 LI .SOOZ/9Z/6 S00Z/9Z/6 00WId-2iSd0 SOOZ/i/6 W*83�'ONO'I :ZOZZZSLOgS000M3a£8EI£ :QI 03S66/10/60 OQ bIOZ/10/60 00'0 OS'S97 OS'S9b OS9'S18 SOOZ/9Z/6 %,000'9 6b960900100d VWNd ,Ll •SOOZ/9Z/b S 00WId-2ISd0 00Z/9Z/6 SOOZ/i/6 WNS.1.ON0'1 :ZOZZZSLOdS00Z.L00i8£I£ :Ql 03S66/IO/ZO QQ MOZ/IO/ZO 00'0 OZ'£LI OZ'£LI OSL'S9Z`i SOOZ/9Z/6 %,000'9 Z8b99bO#100d VWNd 11 .SOOZ/9Z/6 SOOZ/9Z/6 00WId-2ISd0 'I SOOZ/I/6 WNSIONO :ZOZZZSLOdS00ILVx9L£I£ :Ql 03S£0/10/60 QQ 8TOZ/10/60 00'0 Sb'£iS`b sb'£IS'b OLZ'L8b`9Z SOOZ/9Z/6 %000'9 OEbLS£O#'IOOd VWNd Il • SOOZ/9Z/6 OOWId-MSdO SOOZ/9Z/6 WS3.I,JNO'I :ZOZZZSLOdS008Wb1'9L£I£ SOOZ/1/6 :Q1 03S£0/10/I0 as 8IOZ/10/IO 00'0 EZ'b8 £Z'b8 09I'ZZ£ SOOZ/9Z/6 %,000'S 8Z£LS£O#100d VWNd LI asBg asag as+eg sled/sa.sqs a;eg s3 aseg 018Q papodag not;dposaQ ad,4 sso,j/um ;aH ;unoxuV 4so3 oolid aseg a;ea aid;ag uesJ, gaud IeaoZ a;eQ apes,L �xI3 :sr3eas SOOZ/O£/6 - SOOZ/I/6 0000i0000sao-assvanosnloo-asoo asn :6auasanp asea /CTo2o:p3 uo j:joSsuBs f, Afq pa:podaM 6ovams :aI asodag Iie49Q uOT;aESUei f, Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL#0555621 5.0001% 9/26/2005 14,721.870 3,117.24 3,117.24 0.00 07/01/2018 DD 06/01/03SECID: 9/1/2005 31385XG680CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 IT FNMA POOL 00681309 5.000% 9/26/2005 6,922.370 1,729.83 1,729.83 0.00 02/01/2018 DD 02/01/03SECID: 9/1/2005 3139 1 Y3S40CSF07522202:LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0681334 5.000% 9/26/2005 932.850 207.56 207.56 0.00 02/01/2018 DD 01/01/03SECID: 9/1/2005 31391Y4T10CSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005" IT FNMA POOL#0684798 5.500% 9/26/2005 12,344.930 1,407.57 1,407.57 0.00 03/01/2033 DD 03/01/03SECID: 9/l/2005 31400DX310CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005- IT FNMA POOL#0684908 5.000% 9/26/2005 8,723.500 1,131.67 1,131.67 0.00 06/01/2018 DD 05/01/03SECID: 9/1/2005 3140OD3R10CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005- IT FNMA POOL#0685200 5.000% 9/26/2005 4,412.950 617.23 617.23 0.00 03/01/2018 DD 03/01/03SECID: 9/1/2005 31400EGH70CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0685665 5.000% 9/26/2005 643.950 103.23 103.23 0,00 02/01/2018 DD 02/01/03SECID: 9/1/2005 31400EW220CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL 40686318 5.000% 9/26/2005 4,930.280 925.93 925.93 0.00 03/01/2018 DD 03/01/03SECID: 9/1/2005 31400FPB70CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* Workbench *Actual Settle Date 66 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss jType Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL#0688739 5.000`%u 9/26/2005 511.880 363.70 363.70 0.00 06/01/2018 DD 06/01/03SECID: 9/1/2005 31400JEL9OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0689859 5.000% 9/26/2005 405.130 334.38 334.38 0.00 05/01/2018 DD 05/01/03SECID: 9/1/2005 31400KMG8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL 00693834 5.000'% 9/26/2005 11,809.060 1,930.37 1,930.37 0.00 03/01/2018 DD 03/01/03SECID: 9/1/2005 31400PY74OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0695852 5.000';% 9/26/2005 3,876.460 719.25 719.25 0.00 05/01/2018 DD 05/0 1/03SEC ID: 9/1/2005 31400SBVOOCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0695889 5.000% 9/26/2005 8,405.730 2,566.70 2,566.70 0.00 05/01/2018 DD 05/01/03SECID: 9/1/2005 31400SC23OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0697026 5.000% 9/26/2005 426.010 76.92 76.92 0.00 05/01/2018 DD 04/01/03SECID: 9/1/2005 31400TLF20CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0702210 5.000% 9/26/2005 4,180.140 718.22 718.22 0.00 05/01/2018 DD 05/01/03SECID: 9/1/2005 31401ADP9OCSF07522202:LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL 90702328 5.000% 9/26/2005 2,072.710 427.81 427.81 0.00 05/01/2018 DD 04/01/03SECID: 9/1/2005 31401AHD20CSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005* Workbench 'Actual Settle Date 67 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL#0709148 5.000%, 9/26/2005 3,685.250 942.67 942.67 0.00 06/01/2018 DD 06/01/03SECID: 9/1/2005 31401HZM7OCSF07522202:LONG TERM 9/26/2005 OPER-P1MCO 9/26/2005- IT FNMA POOL#0709360 5.0001% 9/26/2005 25,504.790 2,113.76 2,113.76 0.00 07/01/2018 DD 06/01/03SECID: 9/1/2005 31401JB56OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 ' IT FNMA POOL#0709826 5.000% 9/26/2005 1,880.920 361.63 361.63 0.00 06/01/2018 DD 06/01/03SECID: 9/1/2005 31401JSP4OCSF07522202: LONG TERM 9/26/2005 OPER-P1MCO 9/26/2005- IT FNMA POOL 90709917 5.000"/o 9/26/2005 2,463.100 750.81 750.81 0.00 06/01/2018 DD 06/01/03SECID: 9/1/2005 31401JVJ4OCSF07522202:LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005- IT FNMA POOL#0709963 5.000% 9/26/2005 83.740 72.25 72.25 0.00 06/01/2018 DD 06/01/03SECID: 9/1/2005 31401JWYOOCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005, IT FNMA POOL#0710235 5.000% 9/26/2005 15,145.700 1,905.88 1,905.88 0.00 06/01/2018 DD 06/01/03SECID: 9/1/2005 31401KBC8OCSF07522202: LONGTERM 9/26/2005 OPER-P1MCO 9/26/2005 IT FNMA POOL 40713344 5.000% 9/26/2005 526.530 51.24 51.24 0.00 06/01/2018 DD 06/01/03SECID: 9/1/2005 31401NP52OCSF07522202:LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005- IT FNMA POOL 40713365 5.0000% 9/26/2005 4,084.540 771.69 771.69 0.00 07/01/2018 DD 07/01/03SECID: 9/1/2005 31401NQSIOCSF07522202:LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* Workbench "Actual Settle Date 68 a � Transaction Detail Report ID: EVVBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL#0720319 5.000% 9/26/2005 14,951.260 2,366.05 2,366.05 0.00 07/01/2018 DD 07/01/03SECID: 9/l/2005 31401 WG450CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0720369 5.000% 9/26/2005 38,946.940 7.762.81 7,762.81 0.00 06/01/2018 DD 06/01/03SECID: 9/1/2005 31401WJNOOCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 IT FNMA POOL#0721629 5.000% 9/26/2005 7.636.780 1,017.14 1,017.14 0.00 07/01/2018 DD 06/01/03SECID: 9/l/2005 3140 1 XVW40CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 IT FNMA POOL#0723487 5.000% 9/26/2005 857.120 763.58 763.58 0.00 06/01/2018 DD 06/01/03SECID: 9/1/2005 31402AXQ40CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005" IT FNMA POOL#0725530 5.000% 9/26/2005 48,591.490 11,667.25 11,667.25 0.00 06/01/2019 DD 05/01/04SECID: 9/1/2005 31402DA750CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005. IT FNMA POOL#0729601 5.0001% 9/26/2005 11,077.360 1,367.57 1,367.57 0.00 07/01/2018 DD 07/01/03SECID: 9/1/2005 31402HRW30CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 IT FNMA POOL 00732873 5.000% 9/26/2005 211.700 122.76 122.76 0.00 11/01/2018 DD 10/01/03SECID: 9/1/2005 31402MFN50CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 IT FNMA POOL 00735227 5.500% 9/26/2005 19,552.080 4,347.28 4,347.28 0.00 02/01/2035 DD 01/01/05SECID: 9/1/2005 31402QYY I OCSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005* Workbench *Actual Settle Date 69 Transaction Detail Report ID: EWSA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL#0735856 5.000% 9/26/2005 3,144.800 2,083.34 2,083.34 0.00 08/01/2020 DD 08/01/05SECID: 9/1/2005 31402RQH50CSF07522202:LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0737130 5.000% 9/26/2005 2,698.030 2,056.30 2,056.30 0.00 10/01/2018 DD 10/01/03SECID: 9/1/2005 31402S4P90CSF07522202:LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0738211 5.000% 9/26/2005 8,627.600 1,794.18 1,794.18 0.00 10/01/2018 DD 10/01/03SECID: 9/1/2005 31402UDQ20CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005- IT FNMA POOL#0738487 5.000% 9/26/2005 2,823.460 649.31 649.31 0.00 10/01/2018 DD 10/01/03SECID: 9/1/2005 31402UNC20CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0740457 5.000% 9/26/2005 25.514.710 7,588.94 7,588.94 0.00 10/01/2018 DD 10/01/03SECID: 9/l/2005 31402WTN80CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005- IT FNMA POOL H0740471 5.000% 9/26/2005 2,979.020 2,666.26 2,666.26 0.00 10/01/2018 DD 10/01/03SECID: 9/1/2005 31402WT400CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005- IT FNMA POOL#0740748 5.000% 9/26/2005 18,868.240 2,649.45 2,649.45 0.00 10/01/2018 DD 11/0 1/03SEC ID: 9/1/2005 31402W5H70CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 IT FNMA POOL#0743868 5.000% 9/26/2005 871.500 126.06 126.06 0.00 11/01/2018 DD 10/01/03SECID: 9/l/2005 31403BMR10CSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005* Workbench "Actual Settle Date 70 IL aluG aillaS IsnloV.. gouagxloM •SOOZ/9Z/6 SOOZ/9Z/6 00WId-2I3d0 SOOZ/i/6 W35.LONO'I :ZOZZZSLOdSOOrSA%£Obi£ Q103S£0/i0hI QQ8i0Z/10/ii 00'0 9Z'LLS 9Z'LLS 066'619 S00Z/9Z/6 %000'S SttOSLO#'IOOd VWNd LI :SOOZ/9Z/6 S 00WId-2ISd0 OOZ/9Z/6 SOOZ/I/6 Ws3J.ONO'1 :ZOZZZSLOsso09unflcOtlI£ =0103S£0/IO/ii QQ8i0Z/10/1I 00'0 OI'ZOI`9 Oi'ZOi,9 OOI'09£`IZ SOOZ/9Z/6 %000'S 08£OSLO#'I00d VWNd LI •SOOZ/9Z/6 00WId-213d0 SOOZ/9Z/6 SOOZ/1/6 WHSZONO'1=ZOZZZSLOdS00ZV1IC£Oti I QI03S£0/10/Ii QQ8i0Z/10/II 00'0 SVi70Z`L Sti'tOZ'L OSZ'b09`L£ 900Z/9Z/6 %000'S LL£OSLO#700d VWNd ll .SOOZ/9Z/6 SOOZ/9Z/6 00W[d-2I3d0 SOOZ/I/6 WSS.LONO1 :ZOZZZSLOdS000'ILO£OtiI£ QI03S£0/IO/II aQ 8IOZ/IO/ZI 00'0 L£'9L£`£ L£'9L£`£ OOS'8b6`9Z SOOZ/9Z/6 %000'S 6688bL0#100d VWNd .LI .SOOZ/9Z/6 00WId-S2dO SOOZ/9Z/6 WS3.L ONO I :ZOZZZGLO-qS006NN000t I£ 900z/I/6 :GI 035£o/I0/60 as 81OZ/IONO 00'0 SI'S£9 9I'S£9 009'001`E SOOZ/9Z/6 %000'S OOb8i7L0#'I0Od VWNd 11 .SOOZ/9Z/6 SOOZ/9Z/6 00WId-2I3d0 SOOZ/I/6 WN3.L ONO] :ZOZZZSLOdS000X£d£ObI£ QI03S£0/IO/II QQ8i0Z/10/ii 00'0 Li'b£0'i LI'fi£0`I 060'9OI'OI SOOZ/9Z/6 0/6000"S bI6LbLO#'I00d VWN-q .LI <500C/9Z/6 S 00WId-2I3d0 OOZ/9Z/6 SOOZ/i/6 W931ONO'l :ZOZZZSLOdSOO17Z£8£ObI£ OI 035£0/10/60 as 91OZ/10/60 00'0 0£'17SS 0£'bSS OSS'09S`£ SOOZ/9Z/6 '%000'S 91Ctt7LO#'I00d VWNd .LI •SOOZ/9Z/6 SOOZ/9Z/6 00WId-2I3d0 SOOZ/1/6 WHUONOl :ZOZZZSLOdS0OI7S2I8£Obi£ =QI 33S£o/10/60 as SIOZ/IO/LO 00'0 96'b69`£ 96'b6S`£ OS6'L9Z`b S006/9Z/6 0/6000'S 800bbLO#'IOOd VWNd .LI asug aseg aseg red/saiElqs a;vH xg aseg o4va papodag not;duasaa ad q ssoa/uFso :tm lunomV ;803 aaud assg alga aj;las ues,L good p;aoZ a;BQ apext 'IVMIB :smogs 900Z/OS/6 -SOMA/6 0000i0000s3o-ag.EvanosNOO-asoo asn :Sauasm3 asag Ajo2oleo uoi;oesuei,y ,fq papodag 60VsmZ :QI:podoa It ea not o7asuess, Transaction Detail Report ID: -EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL#0751960 5.0001%, 9/26/2005 4,125.730 2,732.65 2,732.65 0.00 12/01/2018 DD 11/01/03SECID: 9/1/2005 31403LMHIOCSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/2(i/2005 IT FNMA POOL#0753425 5.000% 9/26/2005 8,428.980 2,856.77 2,856.77 0.00 11/01/2018 DD 11/01/03SECID: 9/1/2005 31403NA230CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0755165 5.000".'o 9/26/2005 15,511.420 2,025.19 2,025.19 0.00 12/01/2018 DD 11/01/03SECID: 9/1/2005 31403Q6A30CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL 90756372 5.000'% 9/26/2005 4,132.290 3,385.16 3,385.16 0.00 I1/O1/2018 DD 11/Ol/03SECID: 9/1/2005 31403SJR80CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0784251 5.000% 9/26/2005 129,147.340 12,039.39 12,039.39 0.00 11/01/2019 DD 11/01/04SECID: 9/l/2005 31405BH460CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0789670 5.000% 9/26/2005 18,535.110 3,437.00 3,437.00 0.00 12/01/2019 DD 12/01/04SEC ID: 9/l/2005 31405HJP40CSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL 90792432 5.000% 9/26/2005 11,214.020 3,436.84 3,436.84 0.00 10/01/2019 DD 10/01/04SECID: 9/1/2005 31405LLM90CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0792437 5.000% 9/26/2005 172,439.800 19,839.16 19,839.16 0.00 10/01/2019 DD 10/01/04SECID: 9/l/2005 31405LLS60CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* Workbench *Actual Settle Date 72 e « Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Es Rate Shares/Par Base Base Base IT FNMA POOL#0794195 5.000% 9/26/2005 39,298.910 3,662.26 3,662.26 0.00 11/01/2019 DD 11/01/04SECID: 9/1/2005 31405NKG90CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0797160 5.0001A 9/26/2005 264,012.690 12,444.80 12,444.80 0.00 12/01/2019 DD 12/01/04SECID: 9/l/2005 31405RTR70CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0797408 5.000% 9/26/2005 3,026.730 3,283.83 3,283.83 0.00 12/01/2019 DD 12/01/04SECID: 9/1/2005 31405R3R50CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005- IT FNMA POOL 90797414 5.000% 9/26/2005 3.611.270 3,238.34 3,238.34 0.00 12/01/2019 DD 12/01/04SEC ID: 9/1/2005 31405R3X20CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0800370 5.000% 9/26/2005 1..510.950 1,482.51 1,482.51 0.00 12/01/2019 DD 11/0 1/04SEC ID: 9/1/2005 31405VFK80CSF07522202:LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0800998 5.500% 9/26/2005 332.430 1,381.83 1,381.83 0.00 11/01/2034 DD 11/01/04SEC ID: 9/1/2005 31405V3F20CSF07522202:LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 - IT FNMA POOL#0803923 5.000% 9/26/2005 13,006.520 12,083.06 12,083.06 0.00 12/01/2019 DD 12/01/04SECID: 9/1/2005 31406AD410CSF07522202:LONG TERM 9/26/2005 OPER-P1MCO 9/26/2005* IT FNMA POOL#0807711 5.0000% 9/26/2005 79,445.900 12,132.95 12,132.95 0.00 01/01/2020 DD 0 1/0 1/05SEC ID: 9/1/2005 31406EKY90CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* Workbench Actual Settle Date 73 Transaction Detail Report 1D: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005- 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss j Type Description Reported Date Base Ea Rate Shares/Par Base Base Base IT FNMA POOL 90808933 5.500%, 9/26/2005 341.950 1,520.05 1,520.05 0.00 01/01/2035 DD 01/01/05SECID: 9/1/2005 31406FV240CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0809350 5.5001% 9/26/2005 3,612.140 1,451.91 1,451.91 0.00 12/01/2034 DD 0 1/0 1/05SEC ID: 9/1/2005 31406GEX30CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0814930 5.500':/o 9/26/2005 391.490 1,487.39 1,487.39 0.00 04/01/2035 DD 04/01/05SECID: 9/1/2005 31406NLK80CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005- IT FNMA POOL#0815923 5.500'% 9/26/2005 371.370 1,482.70 1,482.70 0.00 03/01/2035 DD 03/01/05SECID: 9/1/2005 31406PPG80CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0816246 5.000% 9/26/2005 8,132.490 2,583.15 2,583.15 0.00 03/01/2020 DD 03/01/05SECID: 9/1/2005 31406PZK80CSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005 IT FNMA POOL#0819566 5.500% 9/26/2005 5,540.940 1,486.27 1,486.27 0.00 04/01/2035 DD 04/01/05SECID: 9/l/2005 31406TQTIOCSF07522202: LONGTERM 9/26/2005 OPER-PIMCO 9/26/2005' IT FNMA POOL#0822731 5.500% 9/26/2005 6,672.050 1,510.66 1,510.66 0.00 05/01/2035 DD 05/01/05SECID: 9/l/2005 31406XA850CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT FNMA POOL#0823232 5.500% 9/26/2005 375.490 1,518.88 1,518.88 0.00 06/01/2035 DD 05/01/05SECID: 9/1/2005 31406XSVSOCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* Workbench *Actual Settle Date 74 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOUDATED-OCSG00010000 9/l/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL#0823787 5.000% 9/26/2005 7,678.570 8,076.72 8,076.72 0.00 05/01/2020 DD 05/01/05SECID: 9/1/2005 31406YF470CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005* IT GNMA POOL#0421389 6.5001/6 9/15/2005 22.770 42.86 42.86 0.00 04/15/2026 DD 04/01/96SECID: 9/l/2005 36206UC23OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 IT GNMA POOL#0449851 6.500% 9/15/2005 26.770 64.71 64.71 0.00 01/15/2028 DD 01/01/98SECID: 9/l/2005 36208FWLOOCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 IT GNMA POOL#0466845 6.500% 9/15/2005 49.270 175.12 175.12 0.00 06/15/2028 DD 06/01/98SECID: 9/1/2005 36209BTA6OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005* IT GNMA POOL#0468052 6.500% 9/15/2005 117.030 216.44 216.44 0.00 07/15/2028 DD 07/01/98SECID: 9/1/2005 36209CSM4OCSF07522202:LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005* IT GNMA POOL#0476041 6.500% 9/15/2005 4,385.560 627.40 627.40 0.00 06/15/2028 DD 06/01/98SECID: 9/1/2005 36209MZE7OCSF07522202:LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005* IT GNMA POOL#0478626 6.500% 9/13/2005 189.230 645.27 645.27 0.00 01/15/2029 DD 01/01/99SECID: 9/1/2005 36209QVT9OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005* IT GNMA POOL#0480598 6.500% 9/15/2005 41.110 154.13 154.13 0.00 10/15/2028 DD 10/0 1/98SEC ID: 9/1/2005 36209S3F6OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 Workbench Actual Settle Date 75 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currencq: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT GNMA POOL#0512235 6.500% 9/15/2005 8.340 31.48 31.48 0.00 11/15/2029 DD 11/01/99SECID: 9/1/2005 36211GBC60CSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/]5/2005'' IT GNMA POOL#0514326 6.500% 9/15/2005 197.880 416.74 416.74 0.00 07/15/2029 DD 07/01/99SECID: 9/1/2005 36211JLF20CSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 IT GNMA 11 POOL#0080023 VAR RT 12/20/20269/20/2005 8,164.590 451.37 451.37 0.00 DD 12/01/96SECID: 9/1/2005 36225CAZ90CSF07522202: LONG TERM 9/20/2005 OPER-PIMCO 9/20/2005" IT GNMA II POOL 9080088M 7.375% 9/20/2005 336.250 581.42 581.42 0.00 06/20/2027 DD 06/01/97SECID: 9/1/2005 36225CC200CSF07522202: LONG TERM 9/20/2005 OPER-P1MC0 9/20/2005' IT GNMA Il POOL 90080395 VAR RT 9/20/2005 6,459.400 501.34 501.34 0.00 04/20/2030 DD 04/01/OOSECID: 9/1/2005 36225CNM40CSF07522202: LONG TERM 9/20/2005 OPER-PIMCO 9/20/2005 IT GNMA 11 POOL#080408X VAR RT 9/20/2005 62,003.470 4,454.33 4,454.33 0.00 05/20/2030 DD 05/01/OOSECID: 9/1/2005 36225CN280CSF07522202: LONG TERM 9/20/2005 OPER-PIMCO 9/20/2005- IT GNMA 11 POOL#0080965 VAR RT 9/20/2005 37,393.080 3,353.84 3,353.84 0.00 07/20/2034 DD 07/01/04SECID: 9/1/2005 36225DCB80CSF07522202: LONGTERM 9/20/2005 OPER-PIMCO 9/20/2005; IT GOLDMAN SACHS GRP MTN#TR00203 VAR 9/30/2005 2,000,000.000 18,348.89 18,348.89 0.00 RT 03/30/2007 DD 04/01/04SECID: 9/30/2005 38141EJL40CSF07522202:LONG TERM 9/30/2005 OPER-PIMCO Workbench •Actual Settle Date 76 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL I Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT GOLDMAN SACHS GRP VAR RT 06/28/2010 9/28/2005 4,250,000.000 41,033.75 41,033.75 0.00 DD 06/28/05SECID: 9/28/2005 38143UBD2OCSF07522202: LONG TERM 9/28/2005 OPER-PIMCO 1T GNMA GTD,REMIC TR 2000-9 FH VAR RT 9/16/2005 11,422.520 1,398.66 1,398.66 0.00 02/16/2030SECID: 9/16/2005 3837H4NX90CSF07522202: LONG TERM 9/16/2005 OPER-PIMCO IT HSBC BK USA MTN NSR00012 VAR RT 9/21/2005 250,000.000 2,242.10 2,242.10 0.00 09/21/2007 DD 09/21/04SECID: 9/21/2005 4042QOAMIOCSF07522202: LONGTERM 9/21/2005 OPER-PIMCO ITC HSBC FIN CORP MTN #TR 00002 VAR RT 8/31/2005 -3,000,000.000 -25,760.00 -25,760.00 0.00 02/28/2007 DD 03/29/05SECID: 8/31/2005 40429JAB30CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO IT HSBC FIN CORP MTN #TR 00002 VAR RT 8/31/2005 3,000,000.000 25,480.00 25,480.00 0.00 02/28/2007 DD 03/29/05SECID: 8/31/2005 40429JAB3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO IT PUBLIC SVC ELEC&GAS CO 1ST VAR RT 9/23/2005 1,400,000.000 12,797.28 12,797.28 0.00 06/23/2006 DD 06/25/04SECID: 9/23/2005 744567FN3OCSF07522202: LONG TERM 9/23/2005 OPER-PIMCO IT RESIDENTIAL ASSET 03-RS11 AIIB VAR RT 9/28/2005 22,595.550 1,318.44 1,318.44 0.00 12/25/2033 DD 12/30/03SECID: 9/25/2005 760985K83OCSF07522202: LONG TERM 9/28/2005 OPER-PIMCO 9/28/2005 IT SBA GTD DEV PARTN 2001-20C 1 6.340% 9/1/2005 276,215.980 94,905.71 94,905.71 0.00 03/01/2021SECID: 9/1/2005 83162CLJOOCSF07522202: LONG TERM 9/l/2005 OPER-PIMCO Workbench *Actual Settle Date 77 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD•CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT TOYOTA MTR CR MTN #TR00413 VAR RT 9/19/2005 2,000,000.000 6,272.23 6,272.23 0.00 09/18/2006 DD 03/16/05SECID: 9/18/2005 89233PTE6OCSF07522202: LONG TERM 9/19/2005 OPER-PIMCO 9/]9/2005* CD US TREASURY INFLATION INDEX NT 3.375% 9/1/2005 0.000 3,940.98 3,940.98 0.00 01/15/2007 DD 01/15/97SEC ID: 9128272M3OCSF07522202:LONG TERM 9/1/2005 OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.375% 9/30/2005 0.000 38,096.14 38,096.14 0.00 01/15/2007 DD 01/15/97SEC ID: 9128272M3OCSF07522202:LONG TERM 9/30/2005 OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.625% 9/30/2005 0.000 11,340.00 11,340.00 0.00 01/15/2008 DD 01/15/98SEC ID: 9128273T70CSF07522202: LONG TERM 9/30/2005 OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.875% 9/30/2005 0.000 50,540.00 50,540.00 0.00 01/15/2009 DD 01/15/99SEC ID: 9128274Y5OCSF07522202: LONG TERM 9/30/2005 OPER-PIMCO CD US TREASURY INFLATION INDEXED 2.000% 9/30/2005 0.000 472.00 472.00 0.00 01/15/2014 DD 01/15/04SEC ID: 912828BW9OCSF07522202: LONG TERM 9/30/2005 OPER-PIMCO CD US TREASURY INFLATION INDEX NT 2.000% 9/30/2005 0.000 14,353.00 14,353.00 0.00 07/15/2014 DD 07/15/04SEC ID: 912828CP3OCSF07522202:LONG TERM 9/30/2005 OPER-PIMCO IT VIRGINIA ELEC&PWR O1 SER A 5.750% 9/30/2005 1,750,000.000 50,312.50 50,312.50 0.00 03/31/2006 DD 03/27/O1SEC ID: 9/30/2005 927804ENOOCSF07522202: LONG TERM 9/30/2005 OPER-PIMCO Workbench Actual Settle Date 78 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/1/2005 - 9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: 33,951,150.000 993,021.92 993,021.92 0.00 TOTAL FIXED INCOME SECURITIES BASE: 33,951,150.000 993,021.92 993,021.92 0.00 TOTAL INTEREST BASE: 188,147,150.000 1,082,830.73 1,082,830.73 0.00 TOTAL TRANSACTIONS: 199,098,082.760 -8,267,939.45 -29,531,249.05 31,643.82 Workbench Actual Settle Date 79 FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/9/05 11/16/05 AGENDA REPORT item Number Item Number FAHR05-95 15 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Michael D. White, Controller SUBJECT: QUARTERLY INVESTMENT MANAGEMENT PROGRAM REPORT FOR THE PERIOD JULY 1 , 2005 THROUGH SEPTEMBER 30, 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file the Quarterly Investment Management Program Report for the period July 1 , 2005 through September 30, 2005. SUMMARY Section 15.0 of the Sanitation District's Investment Policy includes monthly and quarterly reporting requirements for the Sanitation District's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by PIMCO, the Sanitation District's external money manager. The ongoing monitoring of the Sanitation District's investment program by staff and Callan Associates, the Sanitation District's independent investment advisor, indicates that the Sanitation District's investments are in compliance with the Sanitation 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 Sanitation District to meet budgeted expenditures for the next six months. The Sanitation District's portfolios do not include any reverse repurchase agreements or derivative securities. PROJECT/CONTRACT COST SUMMARY 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. [5� Not applicable (information item) H:\depttagenda\Board Agenda Repons\2005 Board Agenda&Agenda Repons\1105HIem 15(f)Oirly Invst Mgmi Rpt.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 Sanitation District's portfolios, as of June 30, 2005 and September 30, 2005. The Liquid Operating Monies portfolio, with an average maturity of 50 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 Sanitation District's portfolios as compared to their benchmarks for the period July 1 through September 30, 2005. Portfolio Performance Summary Quarter Ended September 30.2005 Liquid Operating Monies(4-0) Long-Term Operating Monies(%) Total Rate Total Rate of of Return Benchmark(" Return Benchmark"' 3 Months 0.87 0.80 0.20 -0.16 6 Months 1.60 1.49 1.95 1.51 9 Months 2.23 2.07 1.65 0.86 12 Months 12.68 2.52 1.98 1.02 Since inception 30 Sept.95 4.19 3.77 5.76 5.60 Market Value S59.5M S253.4M Average Quality "AAA" "AAA" Current Yield(°o) 3.0 3.9 Estimated Yield to Maturity(°o) 3.8 4.5 Quarterly Deposits(Withdrawals) $20.0M S-90.00M Estimated Annual Income S2.1 M S9.8M (1) Benchmarks: • Liquid Operating Portfolio: 3-Month Treasury Bill Index • Long-Term Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the attached bar chart. Liquid Long-Term Quarter Operating Operating Ending Monies($M) Monies(SM) 31 Dec.04 73.1 368.0 31 Mar.05 73.5 336.9 30 Jun.05 39.1 342.8 30 Se .05 59.5 253.4 H:\deptlagenda\board Agenda Repons\2005 Board Agenda&Agenda Repons\1105\Item 15(f).0trly Invst Mgmt Rpt.doc Revised: 8/20/98 Page 2 a , Sanitation District's Investment Account Balances as of September 30, 2005 i Book Balances Estimated Investment Accounts September 30, 2005 Yield(%) State of Calif. LAIF $ 7,180,808 3.18 Union Bank Checking Account 964,572 3.18 Union Bank Overnight Sweep Account 301,000 2.95 PIMCO—Short-term Portfolio 59,221,453 3.79 PIMCO- Long-term Portfolio 251,250,513 4.45 Petty Cash 4,000 N/A TOTAL 4.29 Debt Service Reserves w/Trustees $ 64,167,56 3.98 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. Investment Transactions and Balances in LAIF 7. Asset Summary by Asset Type — Liquid Operating Portfolio 8. Asset Summary by Asset Type — Long Term Portfolio 9. Investment Listing of Liquid Operating and L-T Portfolios (Yield Analysis Report). 10. Callan Report (separate bound document) 11. PIMCO Report (separate bound document) H:ldeptlagonda\Board Agenda Reports\2005 Board Agenda&Agenda Reporls11105Htem 15(f).otrly Invst Mgmt Rpf.doc Revised: 8/20198 Page 3 HISTORICAL YIELD CURVE 5.50 - 5.25 - ----- 5.00 -- - 4.75 - - 4.50 - - - 4.25 4.00 - ---- - - -- - 3.75 - 3.50 - - - - 3.25 - --- -- - - - 3.00 W_ } 2.75 --- ---- --- - - --- 2.50 2.25 -- - -- - - -- --- 2.00 1.75 - . --- -- - -- - -- 1.50 - 1.25 1.00 --- ------ -- ----- -- - - -- 0.75 0.50ITH 4 1 T -� 4TI N M to r- O O O t 31-Mar-05 f 30-Jun-05 f 30-Sep-05 i 1 P I M C O October 26,2005 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 Yd quarter of 2005 in addition to an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term and Liquid portfolios over the period. We have also included is a section on strategies to be pursued in your portfolio during the coming months. Bond Market Recap: Most Fixed Income Sectors Decline As Interest Rates Rise Most bond sectors lost ground in the third quarter as interest rates rose. The Lehman Brothers Aggregate Bond Index,a widely used index of high-grade U.S. bonds, lost 0.67 percent during the quarter.The benchmark ten-year Treasury yield ended the quarter at 4.33 percent,41 basis points higher than at the end of the previous period. Interest rates were volatile intra quarter despite ending higher for the full period. Rates rose in July, fell in August and then reversed course in September as investor sentiment shifted about the direction of Federal Reserve policy,the impact of two Gulf Coast hurricanes and the potential for a pullback in the surging housing market. The yield curve continued to flatten over the course of the quarter. The graph below shows recent movements in interest rates and changes in the shape of the yield curve. The biggest uncertainty in bond markets during the quarter was whether soaring energy prices, already a worry even before the hurricanes, would drive inflation higher or exert a more powerful negative impact on growth by crimping consumer purchasing power. Crude oil prices touched a record(in nominal terms)of more than$70 per barrel during the quarter before falling back. Investors hoping for a pause in Fed tightening in the aftermath of Hurricane Katrina were disappointed on September 20, when the U.S. central bank lifted the federal funds rate another 25 basis points to 3.75 percent, the second increase of the quarter. Fed policy makers gave no indication they were considering a pause, stating on both occasions that rates may rise at a .'measured pace". In its latest statement, the Fed said higher energy prices post-Katrina could cause inflation to accelerate. Mr. Mike White, CPA October 26, 2005 Orange County Sanitation District Page 2 While rising rates suggested that investors shared the Fed's concern about inflation, there were also signs late in the quarter that growth was poised to slow down. A key index of consumer confidence weakened to its lowest level in nearly two years and new home sales fell more than expected. These reports raised the specter of a pullback in spending by consumers, who have been pinched by higher gasoline prices and have relied on rising home values to sustain their purchases. As the quarter closed, it was unclear how resilient household spending would be. Emerging Markets,Non-U.S. and High Yield Outperform The following summarizes sector returns for the third quarter. • Mortgage-backed securities underperformed like-duration Treasuries during the quarter. The mortgage sector was adversely affected by duration extension arising from higher interest rates, which more than offset mortgages' yield advantage relative to Treasuries. Performance was mixed between mortgage coupons. ■ High-grade corporate bonds outpaced Treasuries of similar duration as their yield advantage cushioned the impact of rising rates. While corporate credit quality overall remained strong during the quarter, concerns arose that a jump in debt-financed corporate takeovers would prove to be unfriendly to bondholders. High yield corporates fared better than their investment grade counterparts, generating a positive absolute return, but their performance was held down by credit concerns as well, especially in the auto and airline sectors. ■ Less volatile fixed income asset classes such as real return and municipal bonds outpaced Treasuries during the quarter. Municipal bonds tend to outperform Treasuries when rates rise. In the case of TIPS, real yields rose less than yields on nominal bonds of comparable maturity. • Emerging market bonds were the best performing fixed income sector.Cash continues to flow into the asset class amid improving credit fundamentals and ratings upgrades. Emerging market bonds also benefited from expectations of limited future supply as many countries completed funding for the year and in some cases began buying back debt. ■ Most government bond markets outside the U.S. outperformed Treasuries. In Europe, yields rose as much as 40 basis points less than for U.S. bonds of comparable maturity as growth and inflation were higher in the U.S. In Japan, investors began to discount eventual tightening by the Bank of Japan, sending yields higher, but as in Europe the increase was less than that in the U.S. Performance Attribution: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District returned 0.20 percent over the quarter, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 36 basis points. The following points summarize returns for the quarter ended September 30.2005. s i Mr. Mike White, CPA October 26, 2005 Orange County Sanitation District Page 3 ■ Your portfolio outperformed its benchmark for the quarter • Active management and broad diversification helped your portfolio weather a challenging quarter for bonds. ■ important contributors to performance for the quarter were: ➢ Below-index duration for most of the quarter as rates rose ➢Exposure to short maturity mortgages,as these issues outperformed like-duration Treasuries );-An allocation to TIPS,as real yields rose less than yields on nominal bonds of comparable maturity ■ The following strategy detracted from returns: ➢ Underweighting corporate bonds,as their yield advantage mitigated price pressure from higher rates Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.87 percent during the quarter, outperforming the 3-month Treasury Bill Index by 7 basis points. The following points summarize returns for the period ending September 30,2005: ■ Your portfolio outperformed the index for the quarter ■ Active management and broad diversification were important during a challenging quarter for bonds • Exposure to short-term corporate notes contributed to performance, as the sector outpaced Treasuries as their yield advantage mitigated price pressure from higher rates Economic Outlook: Slower Growth With Inflation Pressure,But High Uncertainty The U.S. economy will grow more slowly over the next year with some increase in headline consumer price inflation. The yield on the benchmark 10-year Treasury will range between 3.75 percent and 4.50 percent. The combination of slower growth and continued flows of capital into U.S. fixed income markets from high saving countries will keep rates in this range. The Federal Reserve will stop tightening at a federal funds rate near 4 percent as growth decelerates and the housing market cools. The economic outlook is highly uncertain,however, because it is not clear how several key factors will play out. The first is the lagged impact of higher energy prices over the past year, driven by increased demand from China and elsewhere. Another is the more recent jolt delivered by higher natural gas and gasoline prices in the aftermath of hurricanes on the U.S.Gulf Coast.Additionally, the U.S. economy will be hit with a slowing property market arising from reduced affordability of Mr. Mike White, CPA October 26, 2005 Orange County Sanitation District Page a housing. An offsetting positive factor is the continued strength of U.S. corporate investment. Key elements of PIMCO's forecast are: ■ A Slowdown In U.S. Housing ... The direction of the U.S. housing market will be a critical factor in determining Fed policy over the next year. Recent gains in the U.S. property market have not only supported consumer confidence but also produced a surge in housing-related employment and residential investment. The greatest threat to the housing market is a decline in affordability. The last decade's gains in home prices relative to incomes are not sustainable because higher mortgage rates and increased energy prices will reduce what consumers can afford. ■ ... But Not A Collapse — PIMCO believes that while the U.S. property market suffers from regional froth, the bubble does not extend nationwide. A soft landing, meaning a slowing in the rate of appreciation but not an outright decline, is the most likely scenario. Housing is not expected to crash because supply and demand nationwide are relatively balanced, lending conditions are favorable and low unemployment continues to support incomes and demand. ■ European Growth To Remain Meager— Domestic demand in Euroland is weak even though the region has enjoyed housing gains relative to personal incomes that exceed those in the U.S. The reason is anemic real wage growth, which dampens consumer confidence. PIMCO sees no evidence that these conditions will change over a cyclical time frame. If the European Central Bank takes any action over the nest year, the most likely course will be to ease. • Japan and China To Contribute—Japan's recovery appears durable after many false starts in the recent past. While investment by Japanese companies still lags their cash flows, the momentum in capital spending is strong. Consumer confidence is on the rise given improved labor market conditions and wage gains. Lower expected volatility in China's economy will be positive for growth throughout Asia. Tight credit conditions have cooled the Chinese property market and prodded a shift in investment away from real estate. China's currency revaluation is expected to have little impact on its trade balance as wage differentials between China and developed economics remain substantial. ■ Benign Core Inflation— Strong competition in globally traded goods and services will restrain core inflation (CPI less food and energy prices) even as headline inflation measures rise. Inflation is well contained in Euroland, where slow growth has driven core inflation below 2 percent.Japan will likely turn the corner from deflation to modest inflation. Rein In Risk Taking Amid Uncertain Economic Environment PIMCO takes moderate risks across a variety of strategies, but we will be especially price and value-sensitive in an unusually ambiguous economic environment. Maior strategies will include: ■ Interest Rate Strategies — We will target duration moderately above the index given an expected slowdown in growth, but retain tactical flexibility to trim this exposure should rates drop toward the lower end of our forecasted range. PIMCO will avoid longer maturity U.S. Mr. Mike White, CPA October 26, 2005 Orange County Sanitation District Page 5 Treasuries,which offer little extra yield now that the yield curve has flattened considerably and are more sensitive to shifting expectations for headline inflation. Shorter maturities that react more to central bank policies are a better value given our forecast that these interest rates will be lower than markets now expect. • Mortgage-Backed Bonds —PIMCO will overweight mortgage-backed bonds, which continue to be an important structural holding because of their high credit quality and yield advantage versus Treasuries. However, most of PIMCO's added value will come from mortgage coupon and security selection. ■ Corporates — Valuation remains a major risk in the corporate bond market. With credit premiums overall near historic lows,PIMCO will retain its underweight to corporates. Pockets of value do exist, however, in select sectors with strong collateral protection, such as autos, telecom and utilities. ■ TIPS and Munis — We will retain modest tactical holdings of these defensive securities as a hedge against economic uncertainty. PIMCO has reduced its TIPS exposure in 2005 as real return bonds have rallied, but some exposure is still justified as a hedge in case inflation pressures prove greater than anticipated. The case for municipal bonds is similar, since munis typically hold their value better than taxable bonds when rates rise. In addition, muni yields remain attractive relative to taxable yields on a historical basis. ■ Europe — PIMCO will retain exposure to European government bonds, though at reduced levels compared to recent periods. Given prospects for meager growth, and thus muted inflation and interest rate risk in Euroland, a tactical allocation to this region can still add value. We have taken profits on this position, however, as European yields have fallen relative to Treasury yields. ■ Emerging Markets — Most emerging economies continue to see improving credit fundamentals. Despite their recent gains, these issues still offer attractive yields compared to other credit-intensive alternatives such as corporate bonds. We will therefore retain our exposure to this sector,though we will not look to add to our positions. ■ Currency -- Given PIMCO's secular forecast for a weak dollar, a modest currency allocation focused on the yen and emerging market currencies has the potential to add value. Strategy The following list highlights the strategies that will be used in the Long Term portfolio in the coming months: ■ PIMCO will rein in risk exposures in light of the uncertain economic outlook ■ Target duration near to moderately above index given an expected slowdown in growth but retain tactical flexibility should rates fall toward the lower end of our forecasted range • Focus on shorter maturities,which offer the best value given our forecast that these interest rates will be lower than markets now expect C Mr. Mike White. CPA October 26, 2005 Orange County Sanitation District Page 6 • Retain modest defensive allocations to TIPS to hedge against interest rate uncertainty ■ Emphasize mortgages as a source of high quality yield but add value primarily via security selection • Underweight corporate bonds,where credit spreads overall remain thin, but hold select auto, telecom and utility issues The following list highlights the strategies that will be used in the Liquid portfolio in the coming months: • PIMCO will rein in risk exposures in light of the uncertain economic outlook ■ "Target duration near to moderately above index given an expected slowdown in growth but retain tactical flexibility should rates fall toward the lower end of our forecasted range ■ Limit corporate bond exposure,where credit spreads are thin, but hold select short-maturity issues and commercial paper 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 OCSD Investment Management Progra 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 -- $0 30 Jun 04 30 Sep 04 31 Dec 04 31 Mar 05 30 Jun 05 30 Sep 05 0 Liquid Operating Monies 0 Long-Term Operating Monies Summary of Performance Data and Portfolio Statistics Orange County Sanitation District Liquid Operating Portfolio 10-Year Return vs.Standard Deviation 10 8 X Performance ®® • Citigroup Periods .:. 7 1 1 1 1 . . t . rt 6 rTreasury 10-Yr.Strip Total Portfolio' ° I ■portfolio Before Fees(%) 4.19 2.74 1.76 2.68 2.23 1.60 0.87 " a Index After Fees(%) 4.04 2.58 1.60 2.48 2.08 1.49 0.80 2 ' Citigroup 3 Month T-Bill Index(96)2 3.77 2.35 1.59 2.52 2.07 1 49 0.80 i 0 0 2 4 6 8 10 Standard Deviation of Relurn7 of Market Value' Duration in Yrs informationIr 1 r1 .r Allocation1 rr t tt t 11 1 11 Total Market Value($MM) 39.1 59.5 Government 28 7 0.0 0.0 Quarterly Contributions($MM) -35.0 20.0 Mortgages 0 0 0.0 0.0 Estimated Annual Income($MM) 1.2 2.1 Corporates 9 4 0.0 0.0 Estimated Yield to Maturity(%) 3.1 3.8 High Yield 0 0 0.0 0.0 Estimated Duration(yrs) 0.2 0.2 Non U.S.$Developed Issues 0 0 0.0 0.0 Average Maturity(yrs) 0.2 0.2 Emerging Markets Issues 0 0 0.0 0.0 Average Quality AAA AAA Other 0 0 0.0 0.0 Average Coupon(%) 2.3 3.0 Net Cash/Money Markets:a 63 89 0.1 0.1 Net Currency Exposure(%) 0.0 0.0 Commercial Paper/STIF 63 62 0.1 0.1 Tracking Error(3 yrs,%)° 0.1 0.1 ST Government 0 0 0.0 0.0 Information Ratio(3 yrs)°' 1.0 1.7 Certificate of Deposit 0 7 0.0 0.0 See example of tracking error/information ratio on Banker's Acceptance 0 0 0.0 0.0 footnote page of the Appendix. Money Mkt Futures 0 0 0.0 0.0 Less:Liabilities 0 20 0.0 0.0 Total 100 100 0.2 0.2 See footnotes in Appendix. 2 Summary of Performance Data and Portfolio Statistics Orange County Sanitation District Long Term Portfolio 10-Year Return vs.Standard Deviation 8 , Performance • 6 X LBAG Periods 1 1/ • . . • ? - Portfolio r Index Total Portfolio' w Before Fees(%) 5.76. 5.14 2.76 1.98 1.65 1.95 0.20 '2 4 A Citigroup 3- After Fees(%) 5.61 4.98 2.60 1.82 1.53 1.87 0.15 d` 2 j Merrill 1-5 Year Gov't.Corp.(%)2 5.60 5.15 2.43 1.02 0.86 1.51 -0.16 I 0 0 2 4 6 8 Standard Deviation of Return2(% %of Market Value" %of Duration' Summary Information 1 11 1 /1 Sector Allocation . 1 11 1 1/ 1 11 • 1 11 Total Market Value($MM) 342.8 253.4 Government 78 63 77 66 Quarterly Contributions($MM) 0.0 -90.0 Mortgages 18 17 17 21 Estimated Annual Income($MM) 13.1 9.8 Corporates 1 2 2 2 Estimated Yield to Maturity(%) 4.1 4.5 High Yield 0 0 0 0 Estimated Duration(yrs) 2.3 2.4 Non U.S.S Developed Issues 0 0 0 0 Benchmark Duration(yrs) 2.4 2.4 Emerging Markets Issues 0 0 0 0 Average Maturity(yrs) 2.6 2.8 Other 0 0 0 0 Average Quality AAA AAA Net Cash Equivalents:3 3 18 4 11 Average Coupon(%) 3.9 3.9 Commercial Paper/STIF 0 0 0 0 Net Currency Exposure(%) 0.0 0.0 ST Mortgages 1 3 0 0 Tracking Error(3 yrs.,%)3 0.5 0.5 ST Corporates 16 17 2 2 Information Ratio(3 yrs.)' 0.4 0.6 ST Government 6 27 2 9 See example of tracking error!information ratio an Other 1 1 0 0 footnote page of the Appendix. Less:Liabilities -21 -30 0 0 Total 100 100 100 100 See footnotes in Appendix. 2 J Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund September 30, 2005 Par Value Book Value Market Value Rate Yield Balance September 1, 2005 $7,580,808 $7,580,808 $7,580,808 3.18 3.18 Deposits: 9/8/2005 6,000,000 6,000,000 6,000,000 3.18 3.18 Total Deposits 6,000,000 6,000,000 6,000,000 3.18 3.18 Withdrawals: 9/14/2005 (1,500,000) (1,500,000) (1,500,000) 3.18 3.18 9/23/2005 (4,000,000) (4,000,000) (4,000,000) 3.18 3.18 9/26/2005 (900,000) (900,000) (900,000) 3.18 3.18 Total Withdrawals (6,400,000) (6,400,000) (6,400,000) 3.18 3.18 Balance September 30, 2005 $7,180,808 $7,180,808 $7,180,808 3.18 3.18 (1) This is the annualized yield for the month of August. The September annualized rate was not available as of the date of this report. Asset Summary Report ID:GL8251 Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LIQUID OPER-PIMCO-OCSF07511102 9/30/2005 Status:FINAL Net Unrealized j Cost —Market Value J % of Gain/Loss Description Shares Par ---Base Base Total Base CASH&CASH EQUIVALENTS U.S.DOLLAR INTEREST 246,357.72 246,357.72 0.41% 0.00 CERTIFICATES OF DEPOSIT- DOMESTIC 4,000,000.000 4,000,000.00 4,000,000.00 6.73% 0.00 COMMERCIAL PAPER-DISCOUNT 4,059,000.000 4,031,013.90 4,031,013.90 6.78% 0.00 FED HM LOAN BNK-LESS THAN IYR 10,500,000.000 10,432,109.89 10,432,109.89 17.54% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN 1 11,200,000.000 11,074,467.61 11,074,467.61 18.62% 0.00 FNMA ISSUES-LESS THAN 1YR 11,700,000.000 11,513,492.47 11,513,492.47 19.36% 0.00 MUTUAL FUNDS 116,678.540 116,678.54 116,678.54 0.20% 0.00 REPURCHASE AGREEMENTS 11,800,000.000 11,800,000.00 11,800,000.00 19.84% 0.00 TREASURY BILLS- LESS THAN 1YR 3,300,000.000 3,239,272.67 3,239,272.67 5.45% 0.00 U.S.DOLLAR 56,675,678.540 56,453,392.80 56,453,392.80 94.93% 0.00 CASH&CASH EQUIVALENTS 56,675,678.540 56,453,392.80 56,453,392.80 94.93% 0.00 FIXED INCOME SECURITIES U.S.DOLLAR BANKING&FINANCE 1,304,000.000 1,316,076.60 1,311,767.80 2.21% -4,308.80 U.S.AGENCIES 700,000.000 691,824.00 700,000.00 1.18% 8,176.00 UTILITY-TELEPHONE 1,000,000.000 1,007,520.00 1,002,650.00 1.69% -4,870.00 U.S.DOLLAR 3,004,000.000 3,015,420.60 3,014,417.80 5.07% -1,002.80 FIXED INCOME SECURITIES 3,004,000.000 3,015,420.60 3,014,417.80 5.07% -1,002.80 TOTAL ASSETS-BASE: 59,679,678.540 59,468,813.40 59,467,810.60 100.00% -1,002.80 1 Workbench Asset Summary Report ID:GL8251 Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM OPER-PIMCO-OCSF07522202 9/30/2005 Status:FINAL Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S.DOLLAR PENDING TRADES -85,650,707.15 -85,650,707.15 -33.80% 0.00 INTEREST 2,137,597.27 2,137,597.27 0.84% 0.00 MUTUAL FUNDS 750,018.800 750,018.80 750,018.80 0.30% 0.00 U.S.DOLLAR 750,018.800 -82,763,091.08 -82,763,091.08 -32.66% 0.00 CASH&CASH EQUIVALENTS 750,018.800 -82,763,091.08 -82,763,091.08 -32.66% 0.00 FIXED INCOME SECURITIES U.S.DOLLAR ABS-AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 980,000.00 0.39% -620,000.00 ABS-HOME EQUITY 350,900.660 350,900.66 350,826.97 0.14% -73.69 ABS-STUDENT LOANS 2,587,990.370 2,588,293.65 2,589,931.36 1.02% 1,637.71 BANKING&FINANCE 41,950,000.000 42,047,079.10 41,986,583.82 16.57% -60,495.28 COLLATERALIZED MORTGAGE OBLIGATION 1,146,403.330 1,146,403.33 1,148,294.90 0.45% 1,891.57 FHLMC MULTICLASS 690,309.890 691,045.30 686,147.32 0.27% -4,897.98 FHLMC POOLS 482358.680 47,179.93 49,756.73 0.02% 2,576.80 FNMA POOLS 51,255,389.520 51,904,690.46 51,146,871.71 20.19% -757,818.75 GNMA MULTI FAMILY POOLS 2,685,580.960 2,677,439.95 2,707,211.30 1.07% 29,771.35 GNMA SINGLE FAMILY POOLS 433,268.600 454,204.66 450,854.97 0.18% -3,349.69 INDUSTRIAL 2,000,000.000 1,998,188.00 1,999,680.00 0.79% 1,492.00 INFLATION INDEXED SECURITIES 25,701,262.680 26,247,197.61 27,177,768.95 10.73% 930,571.34 PVT PLACEMENTS- MORE THN 1YR 752,000.000 826,199.84 826.199.84 0.33% 0.00 U.S.AGENCIES 29,279,165.720 28,744,251.24 28,647,732.46 11.31% -96,518.78 U.S.GOVERNMENTS 174,318,126.090 173,391,956.07 172,242,683.37 67.98% -1,149,272.70 UTILITY-ELECTRIC 3,150,000.000 3,143,840.00 3,160,657.50 1.25% 16,817.50 U.S.DOLLAR 337,948,756.500 337,858,869.80 336,151,201.20 132.66% -1,707,668.60 FIXED INCOME SECURITIES 337,948,756.500 337,858,869.80 336,152,201.20 132.66% -1,707,668.60 TOTAL ASSETS-BASE: 338,698,775.300 255,095,778.72 253,388,110.12 100.00% -1,707,668.60 1 Workbench YLDANAL YIELD ANALYSIS PAGE I OCSF07511102 2005/09/30 RUN DATE : 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME : 13.36.30 a-c�.a=-aaaaac===co-.rcaacncsc.-:cxcascacoccc=c=a==v=-o-nac=c=-c-c=-cocoav=o=c=o-==cococcccocmc=-==-cnccosc=cec=cscc=cWs-a==co PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 9 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH S CASH EQUIVALENTS 1,100,000.00 BANKAMERICA CORP DISC .000 .000 99.068 1,089,742.50 1.93 0660POYM9 11/21/2005 1,089,742.50 1.84 1,600,000.00 BANKA14ERICA CORP DISC .000 .000 99.068 1,585,080.00 2.82 0660POZ71 12/07/2005 1,585,080.00 2.68 1,500,000.00 CITIBANK NA NY BRH INSTL C/D .000 3.720 100.000 1,500,000.00 2.66 17304TXA6 3.720% 11/09/2005 DD 08/09/05 1,500,000.00 2.53 1,359,000.00 DU PONT DE NEMOUR DISC .000 .000 P-1 99.793 1,356,191.40 2.41 26354AXJB 10/18/2005 1,356,191.40 2.29 5,400,000.00 FEDERAL HOME LN BX CONS DISC .000 .000 P-1 99.973 5,398,569.00 9.60 313385MMS MAT 10/03/2005 A-I+ 5,398,569.00 9.12 2,900,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.145 2,875,193.72 5.11 313385ND4 MAT 10/19/2005 A-1+ 2,875,193.72 4.85 1,900,000.00 FEDERAL HOME LN BK CONS DISC .000 .000 P-1 98.104 1,863,979.17 3.31 313395SQO A-1+ 1,863,979.17 3.15 300,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 98.123 294,368.00 .52 313365TK2 MAT 02/22/2006 A-I+ 294,368.00 .50 3,300,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.973 3,299,125.50 5.86 313397MMO MAT 10/03/2005 A-1+ 3,299,125.50 5.57 2,000,000.00 FEDERAL HONE LN MTG CORP DISC .000 .000 P-1 98.593 1,971,865.00 3.50 313397NS6 MAT 11/01/2005 A-1+ 1,971,865.00 3.33 1,100,000.00 FEDERAL HOME LN HTG CORP DISC .000 .000 P-1 99.092 1,090,015.03 1.93 313397NZD MAT 11/08/2005 A-I+ 1,090,015.03 1.84 1,900,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 98.254 1,866,820.72 3.32 313397RQ6 MAT O1/10/2006 A-1+ 1,866,820.72 3.15 2,200,000.00 FEDERAL HOME LN MTG CORD DISC .000 .000 P-1 98.183 2,160,018.36 3.84 313397TR2 HAT 02/28/2006 A-1+ 2,160,018.36 3.65 700r000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 98.089 686,623.00 1.22 313397UF6 MAT 03/14/2006 A-1+ 686,623.00 1.16 YLDANAL YIELD ANALYSIS PACE 2 OCSF07511102 2005/09/30 RIJN DATE, 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME s 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 4,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 98.367 3,934,682.22 7.00 313589NL3 MAT 10/26/2005 A-1+ 3,934,682.22 6.64 3,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 98.794 2,963,927.50 5.27 313589QS5 MAT 12/19/2005 A-1+ 2,963,827.50 5.00 900,000.00 FEDERAL NATL 1ITG ASSN DISCOUNT .000 .000 P-1 98.270 984,427.75 1.57 313589SV6 MAT 02/08/2006 A-1+ 884,427.75 1.49 3,800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 98.172 3,730,555.00 6.63 313589TS2 MAT 03/01/2006 A-1+ 3,730,555.00 6.30 3,300,000.00 UNITED STATES TREASURY BILL .000 .000 P-1 98.160 3,239,272.67 5.76 912795WT4 0.000% 03/16/2006 DD 09/15/05 A-1+ 3,239,272.67 5.47 2,500,000.00 WELLS FARGO BANK NA INSTL C/D .000 3.760 100.000 2,500,000.00 4.44 9497P13M7 3.760% 10/13/2005 DD 09/27/05 2,500,000.00 4.22 11,R00,000.00 CS FOB CAT 2 REPO REPO .000 3.250 100.000 11,800,000.00 20.99 99441U490 03.250% 10/03/2005 DD 09/30/05 11,800,000.00 19.93 116,679.54 DREYFUS TREASURY CASH MGI4T .000 3.400 AAA 100.000 116,678.54 .20 996085247 AAA 116,676.54 .20 -------- ------- ----------------- --------- TOTAL CASH & CASH EQUIVALENTS .000 .397 56,207,035.08 100.00 56,207,035.08 94.91 FIXED INCOME SECURITIES 15,000.00 ASSOCIATES CORP NORTH AMER NT- .000 6.359 AAl 100.250 15,112.95 .49 046003FM6 6.375% 11/15/2005 DD 11/21/95 AA- 15,037.50 .03 75,000.00 BEAR STEARNS COS INC NTS .000 6.875 Al 100.000 75,422.25 2.48 073902AU2 6.875% 10/01/2005 DD 10/05/95 A 75,000.00 .13 112,000.00 BEAR STEARNS COS INC GLOBAL NT .000 3.019 Al 99.375 111,364.96 3.69 073902CB2 3.000% 03/30/2006 DD 02/19/03 A 111,300.00 .19 500,000.00 CIT GROUP INC GLOBAL SR NT .000 4.129 A2 99.910 499,820.00 16.57 125577AN6 4.125% 02/21/2006 DD 02/20/03 A 499,550.00 .94 YI.DANAL YIELD ANALYSIS PAGE 3 OCSF07511102 2005/09/30 RUN DATE 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME 13.36.30 PAR VALUE YTN AT CURRENT MOODY MARKET TOTAL COST/ B TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 700,000.00 FEDERAL HOME LN 14TG CORP MTN .000 2.375 AAA 100.000 691,824.00 23.22 312BX1CU9 2.375% 05/19/2006 DD 05/19/03 AAA 700,000.00 1.18 500,000.00 HOUSEHOLD FIN CORP NT .000 7.131 Al 101.671 511,620.00 16.96 441812FT6 7.250% 05/15/2006 DD 05/15/96 A 509,355.00 .86 102,000.00 MERRILL LYNCH 6 CO INC NT .000 6.218 AA3 100.515 102,736.44 3.40 590188FC7 6.250% 01/15/2006 DD 01/20/94 A+ 102,525.30 .17 1,000,000.00 SOUTHWESTERN BELL TEL CO 14ED .000 6.543 A2 100.265 1,007,520.00 33.26 84534F.DS4 6.560% 11/15/2005 DD 11/15/96 A 1,002,650.00 1.69 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .000 4.502 3,015,420.60 100.00 3,014,417.80 5.09 -------- ------- ----------------- --------- TOTAL .000 .466 59,222,455.68 100.00 59,221,452.BB 100.00 YI.DANAL YIELD ANALYSIS PAGE 4 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAI. COST/ 9 TYPE SECURITY ID SECURITY DESCRIPTION HOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH 6 CASH EQUIVALENTS 750,018.80 DREYFUS TREASURY CASH MGMT .000 3.400 AAA 100.000 750,019.80 100.00 996085247 AAA 750,018.80 .22 .00 BSDT-LATE MONEY DEPOSIT ACCT .000 .000 .000 .00 .00 996087094 .00 .00 -------- ------- ----------------- --------- TOTAL CASH 6 CASH EQUIVALENTS .000 3.400 750,018.90 100.00 750,018.80 .22 FIXED INCOME SECURITIES 752,000.00 AIG SUNAMERICA GLOBAI, REG S .000 5.325 109.867 826,199.84 .24 000907AA0 5.850% 08/01/2008 DD 08/08/01 826,199.84 .25 600,000.00 CIT GROUP INC SR NT .000 7.093 A2 103.982 632,688.00 .19 125581AA6 7.375% 04/02/2007 DD 04/01/02 A 623,889.82 .19 1,500,000.00 CIT GROUP INC NEW SR NT .000 4.310 A2 100.343 1,507,005.00 .44 125581AFS VAR RT 09/22/2006 DD 09/23/03 A 1,505,145.00 .45 3,300,000.00 CIT GROUP INC MTN OSR00092 .000 4.023 A2 100.250 3,300,000.00 .98 12560PDVO VAR RT 05/23/2009 DD 05/25/05 A 3,308,250.00 .98 1,600,000.00 CITIGROUP INC GLOBAL SR NT .000 3.751 AA1 99.984 1,600,000.00 .47 172967CW9 VAR RT 05/02/2008 DD 05/02/05 AA- 1,599,744.00 .47 1,000,000.00 FEDERAL HOME LN MTG CORP MTN .000 6.239 AAA 100.182 1,002,656.25 .29 3128X16R3 6.250% 11/14/2013 DD 11/14/03 AAA 1,001,820.00 .30 10,000,000.00 FEDERAL HOME LN MTG CORP MTN .000 4.106 AAA 97.420 9,993,100.00 2.89 3128X3WY5 4.000% 09/22/2009 DD 09/22/04 AAA 9,742,000.00 2.89 2,700,000.00 FEDERAL HOME LN HKS CONS BD .000 8.895 AAA 93.315 2,565,820.00 .74 3133X3SQ7 VAR RT 02/27/2012 DD 02/27/04 AAA 2,519,504.65 .75 3,000,000.00 FEDERAL HOME LN BKS CONS BD .000 4.104 AAA 97.457 2,882,343.75 .86 31339XKN3 4.000% 03/18/2011 DD 06/19/03 AAA 2,923,710.00 .87 48,358.60 FHLMC GROUP 878-6064 .000 4.172 AAA 102.891 47,179.93 .01 31348SWZ3 6.384% 01/01/2028 DD 12/01/97 AAA 49,756.73 .01 YT.DANAI, YIELD ANALYSIS PAGE s 5 OCSF07522202 2005/09/30 RIIN DATE s 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME s 13.36.30 PAR VALUE YTN AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 9 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2,350,000.00 FEDERAL NATL MTG ASSN DEBS .000 5.220 AAA 100.582 2,385,461.50 .70 31359MJR2 5.250% 06/15/2006 DD 06/22/01 AAA 2,363,677.00 .70 6,800,000.00 FEDERAL HATL MTG ASSN DEBS .000 3.271 AAA 95.544 6,575,736.00 1.93 31359MU04 3.125% 03/16/2009 DD 03/16/04 AAA 6,496,992.00 1.93 551,81R.59 FNMA POOL 40254510 .000 5.011 AAA 99.784 568,373.1.4 .16 31371KVB4 5.000% 11/01/2017 DD 10/01/02 AAA 550,626.66 .16 17R,409.66 FNMA POOL 40254611 .000 5.011 AAA 99.783 121,961..96 .03 31371KY47 5.000% 02/01/2010 DD 01/01/03 AAA 110,152.71 .04 107,194.40 FN14A POOL 40254760 .000 5.011 AAA 99.776 110,410.2.3 .03 31371K5V9 5.000% 06/01/2018 DD 05/01/03 AAA 106,954.28 .03 48,963.40 FNMA POOL 00254866 .000 5.012 AAA 99.765 50,432.31 .01 31371LCB3 5.000% 09/01/2018 DD 08/01/03 AAA 48,848.34 .01 363,750.22 FNMA POOL 00254907 .000 5.012 AAA 99.761 363,750.22 .10 3137ILDLO 5.000% 10/01/2018 DD 09/01/03 AAA 362,880.86 .11 259,190.10 FNMA POOL 110254953 .000 5.012 AAA 99.757 262,510.98 .07 31371LE21 5.000% 11/01/2018 DD 10/01/03 AAA 258,560.27 .08 698,081.44 FNMA POOL 40254987 .000 5.010 AAA 99.806 707,025.61 .20 31371LF46 5.000% 12/01/2018 DD 11/01/03 AAA 696,727.39 .21 113,254.48 FNMA POOL #0323980 .000 5.828 AAA 102.946 118,244.76 .03 31374T2M0 6.000% 04/01/2014 DD 09/01/99 AAA 116,590.96 .03 85,676.72 FNMA POOL #0357430 .000 5.011 AAA 99.772 86,640.58 .02 31376KA71 5.000% 09/01/2018 DD 09/01/03 AAA 85,481.38 .03 33,374.37 FNMA POOL 90456482 .000 5.828 AAA 102.945 34,844.91 .01 31381CCT2 6.000% 02/01/2014 DD 02/01/99 AAA 34,357.25 .01 92,283.95 FNMA POOL 00509649 .000 5.828 AAA 102.948 96,350.21 .02 31383QEWO 6.000% 09/01/2014 DD 09/01/99 AAA 95,004.48 .03 BB,310.57 FNMA POOL #0535451 .000 5.828 AAA 102.948 92,201.76 .02 31384VZQB 6.000% 06/01/2015 DD 07/01/00 AAA 90,913.97 .03 255,211.72 FNHA POOL 00555363 .000 5.011 AAA 99.783 262,868.06 .07 31385W5Y1 5.000% 04/01/2018 DD 03/01/03 AAA 254,657.91 .08 YLDANAL YIELD ANALYSIS PAGE 6 OCSF07522202 2005/09/30 RUN DATE, 10/05/05 DISTRICT: LONG-TERM OPERATING Rl1N TIME 13.36.30 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 212.,R47.27 FNMA POOL 00555545 .000 5.011 AAA 99.783 219,232.70 .06 31365XES2 5.000% 06/01/2018 DD 05/01/03 AAA 212,385.39 .06 733,416.34 FNMA POOL 40555621 .000 5.010 AAA 99.806 741,667.26 .21 31385XG68 5.000% 07/01/2018 DD 06/01/03 AAA 731,993.75 .22 408,235.R4 FNMA POOL 40681309 .000 5.011 AAA 99.783 420,4R2.91 .12 31391Y3S4 5.000% 02/01/201P DD 02/01/03 AAA 407,349.97 .12 48,880.96 FNMA POOL 40681334 .000 5.011 AAA 99.703 50,347.39 .01 31391Y4T1 5.000% 02/01/2018 DD 01/01/03 AAA 48,774.89 .01 294,761.12 FNMA POOL 00684798 .000 5.496 AAA 100.072 294,507.92 .00 31400DX31 5.500% 03/01/2033 DD 03/01/03 AAA 294,973.35 .09 262,876.33 FNMA POOL 40684908 .000 5.011 AAA 99.776 266,244.46 .07 31400D3R1 5.000% 06/01/2018 DD 05/01/03 AAA 262,287.49 .08 143,723.05 FNMA POOL 40695200 .000 5.011 AAA 99.783 145,564.52 .04 31400F.GH7 5.000% 03/01/2018 DD 03/01/03 AAA 143,411.17 .04 217,29.1.79 FNMA POOL 006R6318 .000 5.011 AAA 99.783 223,812.60 .06 31400FPB7 5.000% 03/01/2018 DD 03/01/03 AAA 216,822.26 .06 86,775.70 FITMA POOL /0698739 .000 5.011 AAA 99.776 89,379.05 .02 31400JEL9 5.000% 06/01/2018 DD 06/01/03 AAA 86,581.40 .03 79,846.91 FNMA POOL 40689959 .000 5.011 AAA 99.776 80,869.95 .02 3140OKMGB 5.000% 05/01/2019 DD 05/01/03 AAA 79,668.05 .02 451,478.80 FNMA POOL 00693834 .000 5.011 AAA 99.703 465,023.14 .13 3140OPY74 5.000% 03/01/2018 DD 03/01/03 AAA 450,499.09 .13 168,742.93 FNMA POOL 00695852 .000 5.011 AAA 99.779 173,005.22 .05 31400SBVO 5.000% 05/01/2018 DD 05/01/03 AAA 168,370.01 .05 607,602.98 FNMA POOL 00695BB9 .000 5.011 AAA 99.779 625,831.08 .18 31400SC23 5.000% 05/01/2018 DD 05/01/03 AAA 606,260.18 .18 168,193.43 FNMA POOL 00702210 .000 5.010 AAA 99.806 173,239.24 .04 31401ADP9 5.000% 05/01/2018 DD 05/01/03 AAA 167,867.19 .05 100,600.98 FNMA POOL 60702329 .000 5.011 AAA 99.779 101,989.82 .02 31401AHD2 5.000% 05/01/2018 DD 04/01/03 AAA 100,378.55 .03 YLDANAI, YIELD ANALYSIS PAGE : 7 OCSF07522202 2005/09/30 RIJN DATE. : 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 222,556.44 FNMA POOI, 40709140 .000 5.011 AAA 99.772 229,233.15 .06 31401HZH7 5.000% 06/01/2018 DD 06/01/03 AAA 222,049.01 .07 4R1,79R.25 FNI4A POOL. a07O9360 .000 5.011 AAA 99.772 4R7,971.29 .14 31401JR56 5.000% 07/01/2018 DD 06/01/03 AAA 480,699.75 .14 84,910.19 FNMA POOL 40709826 .000 5.011 AAA 99.776 85,998.10 .02 314o1JSP4 5.000% 06/01/2019 DD 06/01/03 AAA 64,719.99 .03 177,732.17 FNHA POOL, #0709917 .000 5.011 AAA 99.776 180,009.37 .05 31401JVJ4 5.000% 06/01/2018 DD 06/01/03 AAA 177,334.05 .05 442,265.07 FNMA POOL 00710235 .000 5.011 AAA 99.772 455,533.05 .13 31401KBCO 5.000% 06/01/2018 DD O6/01/03 AAA 441,256.71. .13 181,120.97 FNI1A POOL 60713365 .000 5.011 AAA 99.772 183,441.57 .05 3140INQS1 5,000% 0710112018 DD 07/01/03 AAA 180,708.01 .05 552,900.74 FNMA POOL 10720311 .000 5.011 AAA 99.772 559,9R4.80 .16 31401WG45 5.000% 07/01/2018 DD 07/01/03 AAA 551,640.13 .16 1,824,12R.38 FNMA POOL 00720369 .000 5.010 AAA 99.806 1,878,852.23 .54 31401WJN0 5.000% 06/01/2018 DD 06/01/03 AAA 1,820,590.15 .54 236,477.37 FN1U1 POOL. 40721629 .000 5.011 AAA 99.772 243,571.71 .07 31401XVW4 5.000% 07/01/2018 DD O6/01/03 AAA 235,938.20 .07 182,401.14 FNMA POOL 00723487 .000 5.011 AAA 99.772 184,453.78 .05 31402AXQ4 5.000% 06/01/2018 DD 06/01/03 AAA 181,985.86 .05 2,751,547.34 FNMA POOL. 40725530 .000 5.012 AAA 99.760 2,788,951.17 .81 31402DA75 5.000% 06/01/2019 DD 05/01/04 AAA 2,744,952.10 .81 317,139.45 FNMA POOL 00729601 .000 5,012 AAA 99.768 321,202.81 .09 31402HRW3 5.000% 07/01/2018 DD 07/01/03 AAA 316,403.69 .09 29,251.45 FNHA POOL 00732873 .000 5.012 AAA 99.757 29,626.22 .00 31402MFNS 5.000% 11/01/2018 DD 10/01/03 AAA 29,180.37 .01 928,944.58 FNMA POOL #0735227 .000 5.503 AAA 99.952 936,782.55 .27 31402QYY1 5.500% 02/01/2035 DD O1/01/05 AAA 928,498.69 .28 496,855.20 FNHA POOL 60735856 .000 5.012 AAA 99.761 501,668.48 .14 31402RQH5 5.000% 08/01/2020 DD 08/01/05 AAA 495,665.37 .15 YLDANAL YIELD ANALYSIS PACE s R OC>F07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERN OPERATING RUN TIME 13.36.30 PAR VALUE YTF1 AT CURRENT MOODY MARKET TOTAL. COST/ E TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE. E TOTAL ----------------- ---------------------`------- ------- ------- ------- -------- ------------ ---------- 490,813.29 FNMA POOL 10737130 .000 5.012 AAA 99.765 497,101.83 .14 31402S4P9 5.000E 10/01/2018 DD 10/01/03 AAA 489,659.88 .15 421,976.07 FNMA POOL 00738211 .000 5.010 AAA 99.906 427,382.67 .12 31402UD02 5.000E 10/01/2018 DD 10/01/03 AAA 421,157.57 .13 153,011.21 FNMA POOL 00738487 .000 5.012 AAA 99.757 354,971.67 .04 31402UNC2 5.000E 10/01/2018 DD 10/01/03 AAA 152,639.39 .05 1,795,830.00 FI1MA POOL 60740457 .000 5.010 AAA 99.806 1,820,242.06 .53 31402WT119 5.000E 10/01/2018 DD 10/DI/03 AAA 1,792,346.66 .53 636,922.36 FNMA POOL 40740471 .000 5.010 AAA 99.006 645,092.91 .18 31402WT40 5.000E 10/01/2018 DD 10/01/03 AAA 635,686.93 .19 616,998.69 FIIMA POOL 00740748 .000 5.012 AAA 99.765 624,903.90 .19 31402W5H7 5.000E 10/01/2018 DD 11/01/03 AAA 615,548.74 .18 29,382.10 FNMA POOL 00743868 .000 5.010 AAA 99.806 29,758.56 .00 31403BMRI 5.000E 11/01/2018 DD 10/01/03 AAA 29,325.11 .01 858,521.90 FNMA POOL 40744008 .000 5.011 AAA 99.776 R69,521.72 .25 31403BR54 5.000E 07/01/2018 DD 09/01/03 AAA 856,598.81 .25 129,412.89 FNMA POOL 00744316 .000 5.010 AAA 99.806 131,131.76 .03 31403837.4 5.000% 09/01/2018 DD 09/01/03 AAA 129,221.75 .04 238,096.46 FNMA POOL 40747914 .000 5.012 AAA 99.757 241,147.08 .07 31403F3XO 5.000E 11/01/2018 DD 11/01/03 AAA 237,517.89 .07 149,335.97 FNMA POOL 40748400 .000 5.010 AAA 99.806 151,249.34 .04 31403GNR9 5.000E 08/01/2018 DD 09/01/03 AAA 149,046.31 .04 783,380.36 FNMA POOL #0748899 .000 5.010 AAA 99.806 793,417.42 .23 31403G7L0 5.000E 12/01/2018 DD 11/01/03 AAA 781,860.85 .23 1,691,464.63 FNMA POOL 00750377 .000 5.010 AAA 99.806 1,713,136.52 .50 31403JUA2 5.000E 11/01/2018 DD 11/01/03 AAA 1,688,183.73 .50 1,443,142.92 FNMA POOL #0750380 .000 5.010 AAA 99.806 1,461,633.20 .42 31403JUD6 5.000E 11/01/2018 DD 11/01/03 AAA 1,440,343.68 .43 137,921.53 FNMA POOL 00750445 .000 5.010 AAA 99.806 139,688.65 .04 31403JWE2 5.000E 11/01/2019 DD 11/01/03 AAA 137,654.01 .04 YLDANAL YIELD ANALYSIS PAGE 9 OCSF07522202 2005/09/30 RUN DATE r 10/05/05 DISTRICT: TANG-TERN OPERATING RUN T114E : 13.36.30 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE B TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 651,709.85 FNMA POOL 00751960 .000 5.010 AAA 99.806 660,059.90 .19 31403LMH1 5.000% 12/01/2018 DD 11/01/03 AAA 650,445.74 .19 677,197.01 FH14A POOL 40753425 .000 5.012 AAA 99.754 685,027.09 .2.0 31403NA23 5.000% .11/01/2018 DD 11/01/03 AAA 675,531.11 .20 470,535.)0 FNMA POOL 40755165 .000 5.012 AAA 99.754 476,563.R3 .13 31403Q6A3 5.000% 12/01/2018 DD 11/01/03 AAA 469,377.58 .14 808,306.09 FNMA POOL 40756372 .000 5.012 AAA 99,754 817,652.13 .23 31403SJRB 5.000% 11/01/2018 DD 11/01/03 AAA 806,317.66 .24 2,760,305.69 FNMA POOL 00784251 .000 5.014 AAA 99.713 2,797,82R.60 R1 31405BH46 5.000% 11/01/2019 DD 11/01/04 AAA 2,752,383.61 .82 806,343.12 FNMA POOL 40789670 .000 5.015 AAA 99.710 817,304.35 .23 31405HJP4 5.000% 12/01/2019 DD 12/01/04 AAA 904,004.72 .24 813,626.22 FNHA POOL #0792432 .000 5.014 AAA 99.717 824,686.45 .24 31405LLM9 5.000% 10/01/2019 DD 10/01/04 AAA 811,323.66 .24 4,588,959.79 FNMA POOL 40792437 .000 5.014 AAA 99.717 4,5E8,959.79 1.36 31405I.LS6 5.000% 10/01/2019 DD 10/01/04 AAA 4,575,973.03 1.36 839,644.48 FNMA POOL. 40794195 .000 5.014 AAA 99.713 R51,058.41 .24 31405NKG9 5.000% 11/01/2019 DD 11/01/04 AAA 837,234.70 .25 1,773,353.7E FNMA POOL 00797160 .000 5.015 AAA 99.710 1,797,460.30 .52 31405RTR7 5.000% 12/01/2019 DD 12/01/04 AAA 1,768,211.05 .52 785,092.74 FNMA POOL #0797408 .000 5.015 AAA 99.710 795,765.10 .23 31405R3R5 5.0001 12/01/2019 DD 12/01/04 AAA 782,815.97 .23 773,590.35 FNMA POOL 40797414 .000 5.015 AAA 99.710 704,106.33 .22 31405R3R2 5.000% 12/01/2019 DD 12/01/04 AAA 771,346.94 .23 354,291.03 FNMA POOL 00800370 .000 5.015 AAA 99.710 353,903.53 .10 31405VFKB 5.000% 12/01/2019 DD 11/01/04 AAA 353,263.59 .10 301,156.66 FNMA POOL 4080099E .000 5.503 AAA 99.940 300,897.87 .08 31405V3F2 5.5008 11/01/2034 DD 11/01/04 AAA 300r975,97 .09 2,886,926.75 FNMA POOL 00803923 .000 5.015 AAA 99.710 2,926,170.91 .85 31406AD41 5.000% 12/01/2019 DD 12/01/04 AAA 2,878,554.66 .85 YLDANAI, YIELD At1ALYSIS PAGE 10 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RIIN TIME 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAI. COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2,932,161.77 FtIMA POOL 00807711 .000 5.015 AAA 99.710 2,870,965.54 .94 31406EKY9 5.000% 01/01/2020 DD 01/01/05 AAA 2,824,247.63 .84 331,304.46 FNNA POOL 40808933 .000 5.503 AAA 99.940 331,019.74 .09 31406FV24 5.500% 01/01/2035 DD 01/01/05 AAA 331,105.68 .10 313,169.30 FtIMA POOL 40809350 .000 5.503 AAA 99.940 312,900.17 .09 31406GEX3 5.500% 12/01/2034 DD 01/01/05 AAA 312,981.40 .09 324,130.14 FNMA POOL $0814930 .000 5.500 AAA 100.008 323,851.59 .09 31406NLK8 5.500% 04/01/2035 DD 04/01/05 AAA 324,155.59 .10 323,127.03 FNMA POOL 40815923 .000 5.503 AAA 99.940 322,849.35 .09 31406PPGB 5.500% 03/01/2035 DD 03/01/05 AAA 322,933.15 .10 611,823.76 FNMA POOL 40916246 .000 5.015 AAA 99.710 611,154.57 .18 31406PZR8 5.000% 03/01/2020 DD 03/01/05 AAA 610,049.47 .19 318,736.11 FNMA POOL 40919566 .000 5.503 AAA 99.940 318,462.20 .09 31406TOT1 5.500% 04/01/2035 DD 04/01/05 AAA 318,544.87 .09 322,925.62 FNnA POOL 40822731 .000 5.503 AAA 99.940 322,648.10 .09 31406XA85 5.500% 05/01/2035 DD 05/01/05 AAA 322,731.86 .10 331,015.92 FNnA POOL 40823232 .000 5.503 AAA 99.940 330,731.44 .09 31406XSV5 5.500% 06/01/2035 DD 05/01/05 AAA 330,817.31 .10 968,561.00 FNMA POOL 40823787 .000 5.015 AAA 99.710 967,501.63 .28 31406YF47 5.000% 05/01/2020 DD 05/01/05 AAA 965,752.17 .29 7,890.69 GNMA POOL 00421389 .000 6.244 AAA 104.096 8,281.53 .00 36206UC23 6.500% 04/15/2026 DD 04/01/96 AAA 8,213.89 .00 11,920.54 GNMA POOL 40449851 .000 6.255 AAA 103.911 12,510.97 .00 36208FWLO 6.500% 01/15/2028 DD 01/01/98 AAA 12,386.72 .00 32,280.92 GNMA POOL #0466845 .000 6.245 AAA 104.076 33,979.84 .00 36209BTA6 6.500% 06/15/2028 DD 06/01/98 AAA 33,596.69 .01 39,841.03 GNMA POOL #0468052 .000 6.246 AAA 104.073 41,814.40 .01 36209CSM4 6.500% 07/15/2028 DD 07/01/98 AAA 41,463.76 .01 111,442.84 GNMA POOL 40476041 .000 6.245 AAA 104.076 116,788.63 .03 36209MZE7 6.500% 06/15/2028 DD 06/01/98 AAA 115,985.25 .03 YLDAHAL, YIELD ANALYSIS PAGE : 11 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 119,937.66 GNMA POOL 40479626 .000 6.247 AAA 104.058 .124,642.95 .03 36209QVT9 6.500% 01/15/2029 DD 01/01/99 AAA 123,764.15 .04 28,413.09 GN14A POOL 00490599 .000 6.246 AAA 104.064 29,776.02 .00 36209S3F6 6.500% 10/15/2029 DD 10/01/98 AAA 29,567.80 .01 5,802.99 GNMA POOL. 40512235 .000 6.248 AAA 104.030 6,090.42 .00 36211GBC6 6.500% 11/15/2029 DD 11/01/99 AAA 6,036.85 .00 76,73B.84 GN14A POOL 40514326 .000 6.249 AAA 104.041 80,419.90 .02 36211JLF2 6.500% 07/15/2029 DD 07/01/99 AAA 79,839.86 .02 131,049.75 GNMA II POOL 00080395 .000 4.331 AAA 101.014 129,862.12 .03 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 132,378.59 .04 1,159,755.30 GNMA I1 POOL, 40RO40RX .000 4.331 AAA 101.014 1,147,976.53 .34 36225CN28 VAR RT 05/20/2030 DD 05/01/00 AAA 1,171,515.22 .35 1,112,493.64 GNMA II POOL 40080965 .000 4.478 AAA 100.494 1,111,799.32 .33 36225DCBB VAR RT 07/20/2034 DD 07/01/04 AAA 1,117,989.36 .33 6,500,000.00 GENERAL ELEC CO NT .000 3.701 AAA 99.994 6,502,203.50 1.93 369604AZ6 VAR RT 10/24/2005 DD 10/24/03 AAA 6,498,960.00 1.93 2,000,000.00 GOLDMAN SACHS GRP MTN ITROO203 .000 4.116 AA3 100.109 2,001,900.00 .59 38141EJL4 VAR RT 03/30/2007 DD 04/01/04 A+ 2,002,180.00 .59 800,000.00 GOLDMAN SACHS GRP MTN ITROO207 .000 3.959 AA3 100.531 800,ODO.00 .2.3 3814IE303 VAR RT 07/23/2009 DD 07/23/04 A+ 804,248.00 .24 4,250,000.00 GOLDMAN SACHS GRP .000 4.290 AA3 100.234 4,250,000.00 1.26 38143UBD2 VAR RT 06/28/2010 DD 06/28/05 A+ 4,259,945.00 1.26 250,000.00 HSBC BK USA MTN ISR00012 .000 3.985 AA2 100.125 250,170.00 .07 4042Q0AM1 VAR RT 09/21/2007 DD 09/21/04 AA- 250,312.50 .07 2,700,000.00 HSBC FIN CORP NT .000 4.000 Al 100.000 2,700,000.00 .80 40429CCU4 VAR RT 09/15/2008 DD 09/15/05 A 2,700,000.00 .80 3,000,000.00 HSBC FIN CORP MTN # TR 00002 .000 3.899 Al 100.031 3,000,000.00 .89 40429JAB3 VAR RT 02/28/2007 DD 03/29/05 A 3,000,930.00 .89 3,000,000.00 HSBC FIN CORP MTN # TR 00007 .000 4.009 Al 100.015 2,995,830.00 .89 40429JAG2 VAR RT 05/10/2010 DD 05/10/05 A 3,000,450.00 .89 YLDANAL YIELD ANALYSIS PACE 12 OCSF07522202 2005/D9/30 Rl1N DATE. 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 PAR VALUE, YTM AT CURRENT MOODY MARKET TOTAL, COST/ % TYPE SECURITY ID SECURITY DESCRIPTION ROOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2,500,000.00 HOUSEHOLD FIN CORP NT .000 7.058 A2 102.015 2,591,500.00 .75 441812GH1 7.200% 07/15/2006 DD 07/15/99 A 2,550,375.00 .76 2,000,000.00 MORGAN STANLEY .000 3.697 AA3 100.109 2,002,990.00 .59 61746BAK2 VAR RT 01/12/2007 DD 01/13/04 A+ 2,002,180.00 .59 3,200,000.00 14ORCAN STANLEY NT .000 3.975 AA3 97.484 3,149,248.00 .92 61746BALO 3.875% 01/15/2009 DD 01/13/04 A+ 3,119,488.00 .93 650,000.00 MORGAN STANLEY NT .000 3.809 AA3 100.031 650,0D0.00 .19 61746SA7.2 VAR RT 11/09/2006 DD 11/12/04 A+ 650,201.50 .19 1,400,000.00 PUBLIC SVC ELEC 6 GAS CO 1ST .000 4.085 A3 100.000 1,400,000.00 .41 744567FN3 VAR RT 06/23/2006 DD 06/25/04 A- 1,400,000.00 .42 350,900.66 RESIDENTIAL ASSET 03-RS11 AIIS .000 4.161 AAA 99.979 350,900.66 .10 760985K83 VAR RT 12/25/2033 DO 12/30/03 AAA 350,926.97 .10 1,800,000.00 SLM COPP MTN 4 TR 00067 .000 3.848 A2 100.312 1,805,040.00 .53 7B442FCU0 VAR RT 07/25/2009 DD 07/26/04 A 1,805,616.00 .54 2,587,990.37 SLM STUDENT LN TR 04-6 A2 .000 3.687 AAA 100.075 2,588,293.65 .77 78442GMAI VAR RT 01/25/2013 DD 06/30/04 AAA 2,589,931.36 .77 2,300,000.00 SALOMON SMITH MTN C SR 00206 .000 3.935 AA1 100.203 2,308,514.60 .68 7954REJPB VAR RT 05/16/2007 DO 05/28/02 2,304,669.00 .68 2,498,126.09 SBA GTD DEV PARTN 2001-20C 1 .000 5.985 AAA 105.935 2,498,12.6.09 .78 83162CLJ0 6.34o8 03/01/2021 AAA 2,646,389.87 .79 1,146,403.33 SBA GTD PARTN CTFS SBIC-PS 01 .000 6.629 AAA 1DO.165 1,146,403.33 .34 831641DD4 6.640% 02/10/2011 DD 02/21/01 NR 1,148,294.90 .34 2,000,000.00 TOYOTA MTR CR MTN OTR00413 .000 3.730 AAA 99.984 1,998,188.00 .59 89233PTE6 VAR RT 09/18/2006 DD 03/16/05 AAA 1,999,680.00 .59 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .000 11.153 WR 61.250 1,600,000.00 .29 909317BC2 6.831% 03/01/2010 DD 08/22/01 A- 980,000.00 .29 2,539,551.00 US TREASURY INFLATION INDEX NT .000 3.424 AAA 105.875 2,754,748.60 .79 9128273T7 3.625% 01/15/2008 DD 01/15/98 AAA 2,689,749.62 .80 11,317,160.00 US TREASURY INFLATION INDEX NT .000 3.571 AAA 108.500 12,497,136.76 3.65 9128274Y5 3.875% 01/15/2009 DD 01/15/99 AAA 12,279,119.60 3.64 YLDAIIAL YIELD ANALYSIS PAGE 13 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 3,900,000.00 U S TREASURY NOTES .000 5.734 AAA 100.291 4,193,993.62 1.16 9128276N7 05.750% 11/15/2005 DD 11/15/00 AAA 3,910,979.50 1.16 2,100,000.00 U S TREASURY NOTES .000 4,266 AAA 99.625 2,1.05,699.39 .62 912828BH2 4.250% 08/15/2013 DD 08/15/03 AAA 2,092,125.00 .62 10,900,000.00 U S TREASURY NOTES .000 3.459 AAA 97,580 30,709,447.11 3.16 912828BT6 3.375% 12/15/2008 DD 12/15/03 AAA 10,636,220.00 3.16 105,734.00 US TREASURY INFLATION INDEXED .000 1.959 AAA 102.110 107,939.37 .03 912828BW9 2.000% 01/15/2014 DD 01/15/04 AAA 107,964.99 .03 12,500,000.00 U S TREASURY NOTES .000 2.775 AAA 99.090 12,424,543.03 3.68 912828CMO 2.750% 06/30/2006 DD 06/30/04 AAA 12,386,250.00 3.68 3,213,026.00 US TREASURY INFLATION INDEX NT .000 1.957 AAA 102.180 3,300,893.88 .97 912828CP3 2.000% 07/15/2014 DD 07/15/04 AAA 3,283,069.97 .97 14,000,000.00 U S TREASURY NOTES .000 2.779 AAA 98.960 13,927,531.82 4.12 912828COI 2.750% 07/31/2006 DD 07/31/04 AAA 13,854,400.00 4.11 35,300,000.00 U S TREASURY NOTES .000 2.411 AAA 98.500 35,120,197.62 10.34 912828CU2 2.375% 08/31/2006 DD 08/31/04 AAA 34,770,500.00 10.32 20,800,000.00 U S TREASURY NOTES .000 2.916 AAA 98.600 20,640,260.90 6.10 912828DD9 2.075% 11/30/2006 DD 11/30/04 AAA 20,508,800.00 6.09 13,920,000.00 U S TREASURY NOTES .000 3.597 AAA 97.300 13,626,296.77 4.02 912828DE7 3.500% 12/15/2009 DD 12/15/04 AAA 13,544,160.00 4.02 16,200,000.00 U S TREASURY NOTES .000 4.035 AAA 99.140 16,201,259.92 4.77 912828DP2 4.000% 03/15/2010 DD 03/15/05 AAA 16,060,680.00 4.77 11,200,000.00 U S TREASURY NOTES .000 3.773 AAA 99.390 11,165,662.53 3.31 912828DOO 3.750% 03/31/2007 DD 03/31/05 AAA 11,131,680.00 3.30 11,000,000.00 U S TREASURY NOTES .000 3.537 AAA 98.950 10,915,072.08 3.23 91282BDW7 3.500% 05/31/2007 DD 05/31/05 AAA 10,884,500.00 3.23 20,000,000.00 U S TREASURY NOTES .000 3.659 AAA 99.080 19,864,857.19 5.89 912828DY3 3.625% 06/30/2007 DD 06/30/05 AAA 19,816,000.00 5.88 1,750,000.00 VIRGINIA ELEC S PWR 01 SER A .000 5.715 A3 100.609 1,743,840.00 .52 927804ENO 5.750% 03/31/2006 DD 03/27/01 BBB+ 1,760,657.50 .52 YLDANAL YIELD ANALYSIS PAGE 14 OCSF01522202 2005/09/30 RU14 DATE 10/05/05 DISTRICT: LONG-TER14 OPERATING RUN TIME 13.36.30 -�--��-��=¢¢ems¢-¢--__�.......-.-3^--�----___�=��2��C�==a-�--......---------------.�..-----------------------..---L..---------------...-- PAR VALUE, YTH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY 1D SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 8,525,791.68 US TREASURY INFLATION IIIDF.X NT 3.817 3.263 AAA 103.439 7,586,479.00 2.62. 9128272H3 3.375% 01/15/2007 DD 01/15/97 AAA 8,819,865.77 2.62 690,309.A9 FHLMC MULTICLASS HTG SER E3 A 6.316 4.260 AAA 99.397 691,045.30 .20 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 686,147.32 .20 400,706.50 GNMA GTD RF.MIC TR 2000-9 FH 6.320 4.241 AAA 100.724 400,706.50 .12 3837H4NX9 VAR RT 02/16/2030 AAA 403,607.62 .12 159,140.18 GNMA II POOL 4080088H 6.705 4.335 AAA 100.932 162,621.36 .04 36225CC20 7,375% 06/20/2027 DD 06/01/97 AAA 160,623.37 .05 123,142.09 GNMA II POOL 10080023 6.992 4.073 AAA 101.269 125,181.62 .03 36225CA7,9 VAR RT 12/20/2026 DD 12/01/96 AAA 124,704.76 .04 2,100,000.00 FEDERAL NATL MTG ASSN DENS 7.113 6.164 AAA 107.418 2,030,133.00 .67 3135914EY5 6.625% 09/15/2009 DD 09/01/99 AAA 2,257,038.00 .67 928,459.22 WMP/HUNTOON PAIGE 4000-11150 7.684 7.413 AAA 101.177 909,294.24 .27 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 939,383.19 .28 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .023 4.417 337,858,869.80 100.00 336,151,201.20 99.75 -------- ------- ----------------- --------- TOTAL .023 4.416 339,608,888.60 100.00 336,901,220.00 100.00 FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/09/05 11/16/05 AGENDA REPORT Item Number Item Number FAHR05-96 15 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance Originator: Michael D. White, Controller SUBJECT: SELECTION OF BEAR, STEARNS & CO., INC. TO SERVE AS THE DISTRICT'S UNDERWRITERS/REMARKETING AGENT FOR THE ISSUANCE OF UP TO $200 MILLION IN CERTIFICATES OF PARTICIPATION (COP) GENERAL MANAGER'S RECOMMENDATION Appoint Bear, Stearns & Co., Inc. as the District's Underwriter/Remarketing Agent for the COP Series 2005 variable rate debt issuance at the lowest annual cost to the District; and a cost of issuance amount not to exceed $140,530, in a form approved by General Counsel. SUMMARY At the September 14, 2005 FAHR Committee meeting, the Committee approved staff's recommended listing of 10 qualified underwriters/remarketing agents for consideration of these services on the COP series 2005 debt issuance. On September 30, 2005, staff issued a Request for Proposal (RFP) for Underwriter/ Remarketing Agent Services (Specification No. CS-2005-248), to these ten firms to begin the selection process. In all, there were six firms (the "Proposers") which submitted written responses to the RFP (the "Proposals"). Four other firms provided responses acknowledging receipt of the RFP and indicating that they would not be submitting a Proposal in response to the RFP. The six Proposers were: (1) Banc of America Securities LLC; (2) Bear, Stearns & Co., Inc.; (3) Citigroup Global Markets, Inc.; (4) Goldman, Sachs & Co.; (5) Lehman Brothers; and (6) Morgan, Stanley & Co. Taking into account the questions in the RFP, the District determined a weighted scoring method (the "Scoring Method") which included the qualifications of the proposing firms, the staffing and project organization, the work plan, the fees proposed by each firm and the presentations, if any, to be given as the evaluation criteria. The District also assembled an Evaluation Committee to select the remarketing agent from among the Proposers. The Evaluation Committee consisted of the District's Director of Finance and the Controller, and one representative from the District's financial advisor, Public Resources Advisory Group ("PRAG"). C:\Documents and Settings*awai\Local SettingsJemporary Internet Files\OLK72\1tem 15(g)COP Underwriter.doc Revised: 06/04/03 Page 1 The Purchasing Division tabulated the three sets of evaluations from the Evaluation Committee together with the calculated scores for the cost and price evaluation criteria. M Using these results, the Purchasing Division invited three firms to the interview process (the "Interviewees"). The three Interviewees were: (1) Bear, Stearns & Co., Inc.; (2) Goldman, Sachs & Co.; and (3) Lehman Brothers. After adding together the scores for each Interviewee, Bear, Stearns & Co., Inc. was selected as the recommended remarketing agent for its highest total score. The firm's highest total was the result of (1) its strong qualifications as a firm, (2) good proposed staffing and project organization, (3) a comprehensive work plan and (4) the best pricing for daily reset variable rate demand COPs among all of the Proposers. PRIOR COMMITTEE/BOARD ACTIONS At the August 24, 2005 Board meeting: (1) Staff was directed to initiate the process of issuing up to $200 million in new variable-rate Certificates of Participation (COP) debt, and return to the Board of Directors for approval to issue the COPs; and, (2) Authorization was give to the General Manager to negotiate and enter into a sole source Consultant Services Agreement with Orrick, Herrington & Sutcliffe to provide bond counsel services in an amount not to exceed S135,000. At the September 14, 2005 FAHR Committee meeting, staff received Committee approval on a listing of 10 qualified underwriters/remarketing agents for consideration of these services for the issuance of up to $200 million in new variable-rate COPs. PROJECT/CONTRACT COST SUMMARY In accordance with the District's Board-adopted Debt policy, the District will restrict long- term borrowing to capital improvements that cannot be financed from current revenue, and before any new debt is issued, the impact of debt service payments on total annual fixed costs will be analyzed. This policy will assist in the leveling out of user rates over time and avoid any spiked increases in the short term. All costs involved in the COP issuance, including underwriting costs, will be paid from the proceeds of the new issue. 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) C:'.Documents and Settings\kawanLocal Semngs\Temporary Internet Fi1es\OLK72\Item 15(g)COP Underwriter.doc Revised: 06/04/03 Page 2 ADDITIONAL INFORMATION At the September 14, 2005 FAHR Committee meeting, the Committee approved the following as qualified underwriting/re-marketing firms and to be provided a request for proposal for these services on the COP Series 2005: • A.G. Edwards • Bear Stearns & Co. • Citigroup Global Markets • Goldman Sachs • JP Morgan • Lehman Brothers • Morgan Stanley & Co. • RBC Dain Rauscher • Stone & Youngberg LLC On September 30, 2005, the Orange County Sanitation District (the "District") distributed the Request for Proposal (RFP) for Broker/Dealer/Underwriter (Specification No. CS-2005-248) to ten firms to begin the remarketing agent selection process for the District's Certificates of Participation, Series 2005 (the "COPs") scheduled to be sold in early 2006. Responses to the RFP were due by 2:00 p.m: Pacific Standard Time on October 12, 2005. In all, there were six firms (the "Proposers") which submitted written responses to the RFP (the "Proposals"). Four other firms provided responses acknowledging receipt of the RFP and indicating that they would not be submitting a Proposal in response to the RFP. The six Proposers were: (1) Banc of America Securities LLC; (2) Bear, Stearns & Co., Inc.; (3) Citigroup Global Markets, Inc.; (4) Goldman, Sachs & Co.; (5) Lehman Brothers; and (6) Morgan, Stanley & Co. Taking into account the questions in the RFP, the District determined a weighted scoring method (the "Scoring Method") which included the qualifications of the proposing firms, the staffing and project organization, the work plan, the fees proposed by each firm and the presentations, if any, to be given as the evaluation criteria. The weighting for each evaluation criteria is as follows: Qualifications of the Firm.................................................25% Staffing and Project Organization.................................... 15% WorkPlan........................................................................ 10% Costand Price.................................................................25% Presentation, if any..........................................................25% The District also assembled an Evaluation Committee to select the remarketing agent from among the Proposers. The Evaluation Committee consisted of the District's Director of Finance and the Controller, and one representative from the District's financial advisor, Public Resources Advisory Group ("PRAG"). On October 14, 2005, the Evaluation Committee met with the District's Contracts, Purchasing and Materials Management Division (the "Purchasing Division") to discuss the rules pertaining to the CMocuments and Settings\kawailocal SettingsJemporary Intemet Files\OLK72\I1em 15(g)COP UnderwrRecdoc Revised: 0&04103 Page 3 evaluation process and to fully explain the adopted Scoring Method. During this meeting, the Evaluation Committee, in consultation with the Purchasing Division, decided that only the top three firms, as determined by the Scoring Method without taking into account the presentation evaluation criteria, would be interviewed on October 27, 2005. Members of the Evaluation Committee reviewed each of the Proposals and collectively discussed the evaluation criteria in greater detail on October 20, 2005. After the discussion, each member independently assigned scores for each of the first three evaluation criteria—namely, (1) the qualifications of the firms, (2) the proposed staffing and project organization for each firm and (3) the proposed work plan for each firm. PRAG also calculated the scores for the cost and price evaluation criteria using the sum of (1) the proposed initial fees and expenses and (2) the present value of the proposed remarketing fees of each firm based on daily reset variable rate demand certificates of participation (which was the reset mode recommended by each of the six Proposers) and an assumed average life of 15 years for the COPs. These scores for the cost and price evaluation criteria were scaled linearly to the best bid in accordance with the scaling method as described by the Purchasing Division. The Purchasing Division tabulated the three sets of evaluations from the Evaluation Committee together with the calculated scores for the cost and price evaluation criteria. Using these results, the Purchasing Division invited three firms to the interview process (the "Interviewees"). The three Interviewees were: (1) Bear, Stearns & Co. Inc.; (2) Goldman, Sachs & Co.; and (3) Lehman Brothers. The Interviewees were notified of their selection for the interview process on October 21, 2005. While the Evaluation Committee believes that all six Proposers demonstrated sufficient qualifications to undertake the remarketing agent assignment, the Interviewees were selected on account of their personnel and experience, more comprehensive work plans and better overall price. The interviews were conducted on October 27, 2005 in the predetermined format of the Interviewees presenting their qualifications, staffing and project organization, work plan and any other material which the firms deemed appropriate over a 30 minute time limit. The Evaluation Committee then asked the Interviewees questions over an additional 15 minutes. Some questions were prepared in advance to clarify responses in the Interviewees' Proposals and to further understand each Interviewee's opinion on issues pertaining to the variable rate demand COPs. Additional questions were also asked based on the presentation and verbal responses provided by the Interviewees. From the Evaluation Committee's perspective, the three firms performed equally well during their respective interviews. All three firms presented their qualifications clearly and effectively during the formal presentation process. All three firms answered the prepared and impromptu questions competently and to the satisfaction of the members of the Evaluation Committee. In the discussion immediately following the interviews, the Evaluation Committee together concluded that each firm would be assigned the same score for the interview portion of the evaluation criteria. After adding together the scores for each Interviewee, Bear, Steams & Co., Inc. was selected as the remarketing agent for its highest total score under the Scoring Method. C:\Documents and Settings\kawailLocal Settings\Temporary Internal Fi1es\OLK72M1em 15(g)COP Underwr ter.doc Revised: 06/04/03 Page 4 The firm's highest total was the result of (1) its strong qualifications as a firm, (2) good proposed staffing and project organization, (3) a comprehensive work plan and (4) the best pricing for daily reset variable rate demand COPS among all of the Proposers. $200 million Certificates of Participation Issuance Schedule ➢ Negotiate professional services agreement with bond counsel October ➢ Issue Underwriter/Remarketing Agent Request for Proposal ➢ Issue Bank Request for Proposals ➢ Select Underwriter/Remarketing Agent November ➢ Select Bank ➢ Develop legal documents ➢ Develop disclosure documents(Official Statement) ➢ Develop rating agency presentation December ➢ Conduct rating agency presentations ➢ Finalize debt service and cash flow modeling ➢ Finalize legal and disclosure documents ➢ Marketing and Sale of the COPs through a Negotiated Sale Process January ➢ Execute$200 million Variable-Rate COP issue ➢ Investment of Bond Proceeds ➢ Debt Administration ATERNATIVES None. CEQA FINDINGS None. ATTACHMENTS 1. Scoring Summary Evaluation on the six firms submitting proposals. C:1Documents and Setlingslkawai\Local Settings\Temporary Inlemet FIIes10LK7211tern 15(g)COP Underwriter.doc Revised: 06/04/03 Page 5 Orange County Sanitation District Certificates of Participation,Series 2005 Spec.No.CS-2005-248,Broker/Dealer/Underwriter Lehman Banc of America Bear Stearns Citigroup Goldman Sachs Brothers Mor an Stanley Evaluation Criteria Weight Score Points Score Points Score Points Score Points Score Points Score Points 1 Qualifications of Firm 25 10 250 7 175 8 200 10 250 7 175 8 200 2 Staffing and Project Organization 15 5 75 7 105 6 90 7 105 7 105 . 7 105 3 Work Plan 10 5 50 10 100 6 60 9 90 1 8,J, 80 4 40 4 Cost and Price 25 7.2 179 10.0 250 6.0 151 6.9 173 9.0` 224 7.0 174 5 Presentation 25 N/A 7 175 N/A 7 175 7 175 N/A EVALUATOR-LOUIS CHOI 100 554 805 501 793 759 519 'SHORT LIST SCORES 554 630 501 618 584 1 519 Banc of Lehman _ America Bear Stearns Citigroup Goldman Sachs Brothers Mor an Stanle Evaluation Criteria Weight Score Points Score Points Score Points Score Points Score +Points Score Points 1 Qualifications of Firm 25 10 250 7 175 8 200 8 200 7' ' 175 8 200 2 Staffing and Project Organization 15 5 75 7 105 5 75 7 105 7 105 6 90 3 Work Plan 10 6 60 8 80 6 60 9 90 8 80 5 50 4 Cost and Price 25 7.2 179 10.0 250 6.0 151 6.9 173 9.0 224 7.0 174 5 Presentation 25 N/A 7 175 N/A 7 175 7'; 175 N/A EVALUATOR-MIKE WHITE 100 564 L785 486 743 759 1 514 SHORT LIST SCORES ! I 564 610 ! 486 568 584 514 Banc of Lehman America Bear Stearns Citigroup Goldman Sachs Brothers Morgan Stanley Evaluation Criteria Weight Score Points Score Points Score Points Score Points Score Points Score Points 1 Qualifications of Firm 25 9.5 237.5 7 175 8.5 212.5 9.5 237.5 7:5 ;: ,187.5 7.5 187.5 2 Staffing and Project Organization 15 6 90 7 105 5.5 82.5 6 90 6.5 97.5 6.5 97.5 3 Work Plan 10 5 50 10 100 6 60 8 80 ;8 =` 80 5 50 4 Cost and Price 25 7.2 179 10.0 250 6.0 151 6.9 173 9.0 224 7.0 174 5 Presentation 25 N/A 7 175 N/A 7 175 7 175 NIA EVALUATOR-LORENZO TYNER 100 556.5 805 506 755.5 764 509 SHORT LIST SCORES 556.5 630 506 580.5 589 509 SHORT LIST AVG Totals--Possible 750 558 623 497 647 586 514 (SHORT LIST OF FIRMS Possible Points Final Score 1 Bear,Steams& Co., Inc. 1000 798 2 Goldman Sachs&Co. 1000 764 3 Lehman Brothers; , 1000 761 C:1Documents and SettingslcranelLocal SettingslTemporary Internet Files10LK31Scoring Totals FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/09/05 11/16/05 AGENDA REPORT Item Number Item Number FAHR05-97 15 h Orange County Sanitation District FROM: Michael White, Controller SUBJECT: ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE YEAR ENDED JUNE 30, 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file the Comprehensive Annual Financial Report (CAFR) for the year ending June 30, 2005, prepared by staff and audited by Conrad and Associates, Certified Public Accountants. SUMMARY The District's independent auditors, Conrad & Associates, have completed their examination of the District's financial statements for the year ended June 30, 2005 and have issued an unqualified opinion. Each year, the FAHR Committee reviews the results of the audit and the corresponding Auditor's report to the Committee. During the audit performed by Conrad & Associates, no matters involving the internal control over financial reporting and its operations that the auditors consider to be material weakness were noted. Ken AI-Imam, 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 eleven 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 Internal Control Over Financial Reporting, and the Auditor's Appropriations Limit Report are attached. PROJECT/CONTRACT COST SUMMARY 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) H.Wepmgenda!Board Agenda Repons\2005 Board Agenda&Agenda Reports\1105\1tem 15(h).CAFR.doc Revised: 8/20/98 Page 1 ATTACHMENTS 1 . Comprehensive Annual Financial Report for the year ended June 30, 2005. (Separately bound document.) 2. Report on Compliance and Internal Control Over Financial Reporting. 3. Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets. WdepMgenda\Board Agenda Repor15\2005 Board Agenda 8 Agenda Reports\1105U1em 15(h).CAFR.doc Revised 8!20198 Page 2 u CONRADAND CERTIFIED PUBLIC ACCOUNTANTS 200 ASSOCIATES L.L.P. 2301 DUPONTVINE, LIFORIVE,SUITE612 � IRVINE,CALIFORNIA 92612 (949)474-2020 Fax(949)263-5520 Board of Directors Orange County Sanitation District Fountain Valley, California Report on Compliance and internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards We have audited the financial statements of the Orange County Sanitation District("District") as of and for the year ended June 30, 2005, and have issued our report thereon dated September 9, 2005. We conducted our audit in accordance with generally accepted auditing standards 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 financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws,regulations, and contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. 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 the 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, rather than 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 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. L.L,? September 9, 2005 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION CONRAD AND CERTIFIED PUBLIC ACCOUNTANTS 200 ASSOCIATES, L.L.P. 2301 DUPONT V ONTCALIFORNA DRIVE, ITE 926122 (949)474-2020 Fax(949)263-5520 Board of Directors Orange County Sanitation District Fountain Valley, California Independent Accountants' Report on A reed-Upon Procedures Applied to Appropriations Limit Worksheets We have applied the procedures enumerated below to the appropriations limit worksheets prepared by the Orange County Sanitation District for the year ended June 30, 2005. These procedures, which were agreed to by the Orange County Sanitation District and the League of California Cities (as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines) were performed solely to assist the Orange County Sanitation District in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the 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 the results of those procedures were as follows: 1. We obtained the worksheets referred to above 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. Results: No exceptions were noted as a result of our procedures. 2. We recalculated the mathematical computations reflected in the District worksheets. Results: No exceptions were noted as a result of our procedures. MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION i Board of Directors Orange County Sanitation District Page Two 3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by the District and to information provided by the State Department of Finance. Results: No exceptions were noted as a result of our procedures. 4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the Board of Directors for the prior year. Results: No exceptions were noted as a result of our procedures. We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the worksheets referred to above. 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 the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines. This report is intended solely for the use of the Orange County Sanitation District and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. 4 September 9,2005 FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/09/05 11/16/05 AGENDA REPORT Item Number Item Number FAHR05-98 15 i Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Ann Sullivan, Principal Human Resources Analyst SUBJECT: MID-YEAR STAFFING MODIFICATIONS: RECLASSIFICATION AND EQUITY ADJUSTMENTS GENERAL MANAGER'S RECOMMENDATION 1. Approve the reclassification of seven OCSD employees 2. Approve position upgrades of four positions 3. Approve equity adjustment for one employee SUMMARY In an effort to support OCSD's staffing needs, it becomes necessary to review and modify job titles and pay grades when appropriate. This occurs in situations where staffing requirements result in the need for higher levels of skill and performance. Furthermore, the need for the higher skill level must be indefinite and ongoing. Human Resources Policy C10.10, as well as bargaining unit Memorandums of Understanding, provides this opportunity. Both state that requests are considered twice per year, once during the annual budgeting process and again in November. During the current period, sixteen requests were submitted for consideration. The Human Resources Department reviewed each request in detail and discussions ensued with the appropriate Department Head. Consequently, the Human Resources Department recommends that twelve of the requests be approved (Attachment 1). Seven of the requests will result in classification changes for current employees effective immediately following Board approval. These seven employees have met the criteria outlined in the Reclassification Guidelines, which are summarized below: 1 . The incumbent has been in the position being considered for reclassification and performing the higher level duties for at least 6 months 2. The incumbent meets the qualifications for the position being considered for reclassification 3. The incumbent's classification is not being reclassified from a non-supervisory to a supervisory classification One request provides for an equity adjustment due to department restructuring. The remaining four requests upgrade vacant positions. Detailed information regarding each of the requests is documented in the additional information section. Revised: 06/04/03 Page 1 PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY The cost for the salary increases as a result of the reclassifications and equity adjustment for the remainder of FY 05/06 (November 25 to June 30) is $15,024. Annualized cost of the salary increases as a result of the reclassifications and equity adjustment is $30,048 and will be included in the budgeting process. BUDGET IMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ® This item has not been budgeted. (sufficient funds exist from vacant positions). ❑ Not applicable (information item). ADDITIONAL INFORMATION 220 — Accounting and Budgeting Division Reclassify Ann Crafton from a Staff Analyst at PG 70 ($4,659 - $5,824) to Senior Staff Analyst at PG 76 ($5,403 - $6,753) based on managing parcel review project, managing redevelopment agency program, overseeing lease agreements for the timely receipt of revenues, and overseeing annual review of 20% of commercial parcels. In the past year Ann Crafton's responsibilities as a Staff Analyst have expanded considerably. When initially assigned as a Staff Analyst, Ms. Crafton's responsibilities consisted of reviewing and maintaining parcel use codes, preparing monthly reports, preparing deposits, and processing sewer service fee claims. These responsibilities are of moderate scope and complexity, and routine in nature. Due to business need, Ms. Crafton's responsibilities have expanded to performing duties at the higher classification of Senior Staff Analyst, which consist of managing the review of 46,000 non-residential parcels including the selection, supervision. training, evaluation and discharge of 13-14 temporary employees. The results of this project identified 1,628 corrections to the County Assessor's database resulting in the proper assessment of an additional $3 million in sewer service fee revenue on an annual basis. Ms. Crafton has taken on the responsibility of reviewing all amounts owed from Redevelopment Agencies (RDA) that are in OCSD's service area based on RDA pass- through agreements. There are a total of 49 RDA's within the 21 member cities of OCSD. Ms. Crafton has organized city files for each individual RDA. This includes researching when the RDA Ordinance was adopted, if any amendments or mergers have taken place since that time, the limitations on the pass-through amounts and when the payments should have started. Once Ms. Crafton establishes a date that payments should have started, she researches hard copy files (prior to OCSD's automated system) for proof of payment. Once all payments have been logged, a review is conducted to see if any payments are missing or if the RDA did not start payments as Revised: W04/03 Page 2 scheduled. Currently, the Finance Department is working with 9 RDA's for agreed upon past due revenue at this time. The level of problem solving at the Senior Staff Analyst level is expected to develop solutions to complex problems, plan, schedule and arrange his/her own activities to meet expected results of the work, and completed work is only reviewed upon completion. Ms. Crafton's expanded responsibilities fall within the criteria of the higher classification of Senior Staff Analyst. 230—Contracts. Purchasing, & Materials Division Upgrade a Staff Analyst position at PG 70 ($4,659 - $5,824) to a Senior Contract Administrator at PG 82 ($6,264 - $7,831) based on change in business need requiring work beyond the analytical and research duties found at the Staff Analyst level. The upgraded position will be posted as a promotional opportunity. Since establishing the Staff Analyst position in the department, OCSD's contracts have become more complex in nature, requiring greater knowledge and experience to manage the $3 billion CIP program over the next ten years. An example of the increase in complexity of managing the CIP contracts, the Bushard Pipeline contract has a multitude of legal issues that can only be resolved by a seasoned contract professional. The current Staff Analyst classification does not require the level of knowledge, skills, and abilities to handle such complex issues. At the Senior Contract Administrator level, decisions made that obligate the District for years to come must be made by an experienced professional who has the demonstrated understanding of the complexities associated with managing multiple CIP contracts. Required are advanced legal and contract administration skills with the ability to interface with General Counsel to ensure OCSD is in compliance with the intricacies and associated enforcement responsibilities. With the change in business need, there will continue to be work containing responsibilities that require skills that exercise considerable latitude in determining the best approach in completing assignments. In addition, the development of solutions to complex problems requires the use of advanced critical thinking skills. These are expected requirements at the Senior Contracts Administrator level. 420—Collection Facilities O&M Division Upgrade a Mechanic position at PG 61 ($3,730 - $4,663) to a Lead Mechanic at PG 71 ($4,775 - $5,970) to align and reflect the current staffing levels. In FY 04/05 a position was borrowed from Division 830 to post and recruit for a Lead Mechanic with the intent of upgrading a Mechanic position during the budget cycle of FY 05/06 in order to return the borrowed position. Due to an oversight, the upgrade of the position was not included during the budget cycle of FY 05/06. This request will allow Division 420 to return to Division 830 the position that was borrowed so that current staffing levels are correctly reflected. Upgrade two Mechanic positions at PG 61 ($3,730 - $4,663) to two Senior Mechanic positions at PG 67 ($4,326 - $5,408) in support of the long range plan to provide qualified staff career growth opportunities, and to focus training to ensure the knowledge Revised: 06104/03 Page 3 S and skills of the work unit are passed on in support of succession planning. The District's pay for performance approach aligns with the department's Bench Building Program that requires employees to achieve a certain skill level and reach performance requirements necessary for the higher job level. The upgraded positions will be posted as promotional opportunities. 433 — Plant Facilities Maintenance Division Reclassify Arnold Lacap from a Mechanic at PG 61 ($3,730 - $4,663) to Senior Mechanic at PG 67 ($4,326 - $5,408) based on performing the full scope of the job functions in the Rebuild Shop by completing rebuilds and bench tests on a large array of pumps, wastewater treatment plant equipment and auxiliary components. When initially assigned to the Mechanic level, Mr. Lacap worked under close supervision, and received detailed instructions on tasks assigned. Over the past year, Mr. Lacap has performed his job responsibilities at the higher classification of Senior Mechanic requiring limited supervision, complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. This is demonstrated by Mr. Lacap's handling of complete rebuilds on a large array of wastewater treatment plant equipment including but not limited to centrifugal pumps, progressive capacity pumps, opposing diaphragm assemblies, metering pumps, multi-stage turbines, sump pumps, Vaughn chopper pumps, lobe-type, etc. In addition, Mr. Lacap handles complete rebuilds on a host of auxiliary components such as gear boxes, fans, blowers, belt filter press rollers and related equipment. He uses an assortment of precision measuring devices to include dial indicators, inside and outside micrometers, snap gauges, inside and outside calipers, depth gauges, electrical balancing machine, zero glass beader, 200 ton and 50 ton Enerpac hydraulic presses, drill press, and all sizes of pneumatic tools and hand tools. Mr. Lacap handles the more complex tasks, is prepared for any emergency that may arise, and assists when needed in offering his expertise and skills to correct problems. He offers quality assistance to fellow staff members as needed and shares advice and suggestions. The distinct differences between the Mechanic level and the Senior Mechanic level are the level of supervision received, the type of instruction given on the task at hand, and the job knowledge necessary to complete the tasks. At the Mechanic level there is close supervision with detailed instructions given for new lines of work or special assignments. There is an understanding of the general aspects of the job and limited understanding of the technical phases of the job. While at the Senior Mechanic level or journey level, supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. 540 —Workforce Support Services Division of Human Resources Equity adjustment for Richard Spencer, Human Resources Supervisor at PG 85 from Step 3 ($7,377) to Step 4 ($7,713) based on recent changes in the HR organizational structure. Mr. Spencer is now directly responsible for both the 520 and 540 divisions. This was done to provide a more efficient approach in managing HR operations. Revised: 06/04/03 Page 4 As a result of a reorganization and redistribution of work in the Human Resources Department, the responsibilities and the span of control for the Human Resources Supervisor has changed significantly. This change in the reporting structure has increased the scope of work. This position is now responsible for two divisional areas instead of one, expanding the staff and functional areas supervised. This position is now responsible for employee development programs, classification and compensation programs, strategic staffing programs, employee benefit programs, and employee workforce support services. The diversity of these programs has increased the level of responsibility as well as the level of complexity. An equity adjustment would support recognition of these changes. 640 — Source Control Division of Technical Services Reclassify Chris Stacklin from Associate Engineer III PG 80 ($5,964 - $7,455) to Engineer at PG 84 ($6,581 - $8,228) based on issuing and renewing industrial wastewater discharge permits, monitoring compliance and regulatory conformity by sampling and reviewing processes, and evaluating corrective response plans and proposals. For the past two years Mr. Stacklin has managed permitting and compliance and enforcement for a diverse set of industries and agencies. His principal responsibility is enforcement projects that include administrative complaints and settlement agreements in coordination with legal counsel and the permittee. Mr. Stacklin has participated in high profile and sensitive enforcement actions, which involved liaison and coordination with the District Attorney and Source Control. Mr. Stacklin has developed a fee structure for Class I, Class II and SPDPs that was adopted by the Ordinance. He has provided extensive and crucial input for an EPA audit and report response. Additionally, he developed, implemented and coordinated the SPDP streamlining effort that resulted in a more efficient and effective program. At the Engineer level, it is expected that development of solutions are on a variety of complex problems. Mr. Stacklin's responsibilities at the higher classification of Engineer fall within this expectation level. 740 — Planning Division of Engineering Department Reclassify Richard Schlegel from Engineering Assistant II at PG 70 ($4,659 - $5,824) to Engineering Data Management Tech II at PG 74 ($5,143 - $6,429) based on performing the full scope of the job functions by capturing engineering data via computer, advising and assisting engineering and other departments on GIS issues, and answering questions and resolving user problems of the engineering data management system. The job duties for Mr. Schlegel have increased due to the changed nature of the work to be accomplished within the Engineering Department. With new computer technology, the department has moved from manual drafting and information transfer to highly complex, accurate and fast electronic knowledge transfer. To accomplish the work, staff must have and use knowledge, skills and abilities commensurate with expanding needs of the department and organization. As an example, Mr. Schlegel's new duties include translation of computer aided drafting (CAD) files to Geographic Information Systems (GIS) format to be used in the Facilities Atlas. An old corresponding duty would include only drafting using CAD. Revised: 06/04/03 Page 5 The changed nature of the work performed by Mr. Schlegel supports the continued transition from blueprints to an electronic format that is available to the organization via the Facilities Atlas system. Additionally, Mr. Schlegel's increased knowledge and skills support the organization's ability to receive and transfer electronic drawings in standard formats for integration and distribution throughout the organization. The Engineering Data Management Tech II is at the journey level of the job class where supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. 850— Mechanical Maintenance & Power Production O&M Division Reclassify James Arthur from a Power Plant Operator I at PG 66 ($4,222 - $5,276) to Power Plant Operator II at PG 71 ($4,775 - $5,970) based on performing the full scope of the job functions by operating and maintaining electrical power generation equipment, i.e., gas engines, pumps, compressors. Mr. Arthur has been performing the Power Plant Operator II duties for 28 months. Mr. Arthur performs power plant rounds; inspecting, recording date, water sampling and diagnosis, equipment and systems checks, and daily and monthly operating logs. He serves on the power plant standby for emergency callouts, which requires advanced knowledge for operating and maintaining all aspects of plant power. Additionally, he understands complex maintenance and repair problems through the application of thorough troubleshooting skills and procedures, and provides sound solutions for correcting problems. The distinct differences between the Power Plant Operator I level and the Power Plant Operator II level are the level of supervision received, the type of instruction given on the task at hand, and the job knowledge necessary to complete the tasks. At the Power Plant Operator I level there is close supervision with detailed instructions given for new lines of work or special assignments. There is an understanding of the general aspects of the job and limited understanding of the technical phases of the job. While at the Power Plant Operator II level or journey level, supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. Reclassify Charles Gober from a Mechanic at PG 61 ($3730 - $4,663) to Senior Mechanic at PG 67 ($4,326 - $5,408) based on performing at the full scope of the job functions on the solids team by providing mechanical maintenance and repair to wastewater treatment plant mechanical equipment including piping, valves, pumps, gearboxes, engines, and all other minor and major mechanical rotating equipment. Mr. Gober works independently and exercises judgment and initiative as he applies thorough troubleshooting skills to determine solutions when correcting problems. He serves on the mechanical standby for emergency repair callouts. A criterion for placement on this emergency repair callout list is advanced knowledge of various types of process equipment and systems. Mr. Gober has assumed the task of re-piping seal Revised: 06/04/03 Page 6 water and grease lines for pumps and other rotating equipment, and has provided detailed system and equipment information when recommending improvements to daily functions. Mr. Gober handles the more complex maintenance and repair problems. The distinct differences between the Mechanic level and the Senior Mechanic level are the level of supervision received, the type of instruction given on the task at hand, and the job knowledge necessary to complete the tasks. At the Mechanic level there is close supervision with detailed instructions given for new lines of work or special assignments. There is an understanding of the general aspects of the job and limited understanding of the technical phases of the job. While at the Senior Mechanic level or journey level, supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. Reclassify Brian Tafolla from a Mechanic at PG 61 ($3730 - $4,663) to Senior Mechanic at PG 67 ($4,326 - $5,408) based on performing at the full scope of the job functions on the water team by providing mechanical maintenance and repair to wastewater treatment plant mechanical equipment including piping, valves, pumps, gearboxes, engines, and all other minor and major mechanical rotating equipment. Mr. Tafolla works independently and exercises judgment and initiative as he applies thorough troubleshooting skills to determine solutions when correcting problems. Mr. Tafolla has been involved with the rehabilitation of the grit paddle system and has provided suggestions on ways to improve the system. On the rehabilitation of the 108" PEDB isolation gates, he provided suggestions on improving the procedure to follow for re-assembly. He serves on the mechanical standby for emergency repair callouts. A criterion for placement on this emergency repair callout list is advanced knowledge of various types of process equipment and systems. Mr. Tafolla handles the more complex maintenance and repair problems. The distinct differences between the Mechanic level and the Senior Mechanic level are the level of supervision received, the type of instruction given on the task at hand, and the job knowledge necessary to complete the tasks. At the Mechanic level there is close supervision with detailed instructions given for new lines of work or special assignments. There is an understanding of the general aspects of the job and limited understanding of the technical phases of the job. While at the Senior Mechanic level or journey level, supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. ALTERNATIVES Approve none or some of the recommendations. • If reclassifications are not approved, job duties will be reviewed and modified to be consistent with current classifications. Revised: 06/04/03 Page 7 l CEQA FINDINGS T N/A ATTACHMENTS 1. Summary Reclassification, Equity Adjustment, and Position Upgrade for November 2005 HAdept\agenda\FAH R\FAHR2005\1105\05-98.Reclassifications.doc Revised: 06/04/03 Page 8 % ATTACHMENT 1 SUMMARY RECLASSIFICATION EQUITY ADJUSTMENT POSITION UPGRADE NOVEMBER 2005 RECLASSIFICATION REQUESTS Current Proposed Employee Div Classification Title Reclassification Title Crafton,A. 220 Staff Analyst Senior Staff Analyst ------------ Lacap,A. 433 1 Mechanic Senior Mechanic Stacklin,C. 11640 Associate Engineer III Engineer I I I ---------------------- Schlegel, R. 740 ; Engineering Asst II Engineering _____________ I _ _ _ __Data Management Tech II_ ------------------- -------------------------- Arthur,J. 850 Power Plant Operator I Power Plant Operator II I I I I I I Tafolla,B. 850 ; Mechanic i Senior Mechanic I I I I I I Gober,C. 850 Mechanic Senior Mechanic I 0 I EQUITY ADJUSTMENT REQUEST Proposed Employee I Div Current Pay Step Pay Ste Spencer,R. 540 Step 3-PG 85 Step 4-PG 85 HR Supervisor HR Supervisor POSITION UPGRADE REQUESTS Proposed Re uestor Div Current Title i Upgrade Title Staff Analyst Senior Contracts Administr Dubois,M. 230 PG 70 PG 82 -----------------------r--------T-------659=$----- ----;-------�$6_264_$7_831)------ Mechanic i Lead Mechanic Blanda,T. 420 PG 61 PG 71 ($3,730-$4,663) ; ($4,775-$5,970) -----------------------y..---------.----------------------------+-------------------------------- i Mechanic-2 each Senior Mechanic-2 each Blanda,T. 420 PG 61 PG 67 ($3,730-$4,663) ($4,326-$5,408 TOTAL: 12 FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/09/05 11/16/05 AGENDA REPORT Item Number Item Number FAHR05-99 15 Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Jeff Reed, Human Resources Manager SUBJECT: WORKERS' COMPENSATION THIRD PARTY ADMINISTRATOR (TPA) CLAIMS ADMINISTRATION AND MANAGED CARE SERVICES GENERAL MANAGER'S RECOMMENDATION 1. Direct staff to seek proposals from firms that provide Workers' Compensation Third Party Administrator (TPA) services; 2. Authorize staff to terminate the existing Workers' Compensation TPA services agreement with Cambridge Integrated Services Group, Inc. effective June 30, 2006, based on conducive market conditions; and, 3. Authorize staff to negotiate a new contract for Workers' Compensation TPA services based on competitive bidding, if advantageous, which is to include a favorable cost structure. SUMMARY Costs for Cambridge Integrated Services Group, Inc. (Cambridge) TPA claims administration services appears to be going up due to a flat rate fee structure and decreasing OCSD claims experience rates (count). Staff was directed to provide information on the Third Party Administrator, which was to include the following: (1) background; (2) contract terms; and, (3) performance. BACKGROUND The Orange County Sanitation District (OCSD) is self-insured for workers' compensation. Cambridge serves as the TPA on behalf of the OCSD. Cambridge provides claims administration and managed care services. Cambridge has directly administered the program since July 1998. CONTRACT TERMS Claims administration costs are generally based on either a flat rate fee or a percentage of the claims costs. Key points of the Cambridge contract include the following: • Claims Administration flat rate fee - $26,500 annually • On-Line Access fee for claims information and report generation - S1 ,000 annually Revised. 06/04/03 Page 1 • Managed Care —percent of savings, per hour charge, or per line charge • 30 clairns per year cap — subject to review if exceeded in prior year • Three year contract • Year-to-year renewals • Effective date — July 1 , 2004 • Expiration date — June 30, 2007 PERFORMANCE In August 2005, CSAC (California State Association of Counties) Excess Insurance Authority (the Authority) conducted an assessment of the OCSD workers' compensation claims service. The Authority analyzed claims data, examined a representative sample of claims, and reviewed the findings against the Authority's "Workers Compensation Claims Administration Guidelines," as amended June 6, 2003. In general, the Authority found that Cambridge is "effectively providing claims service to OCSD's employees and is meeting industry best practices, state law and the Authority's own guidelines with an overall grade of 920/0: however, performance is below the Authority's acceptable level of 95%..." PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY Costs per claim at $27,500: • Claim count average of 35 at total claims administration cost of $27,500 over consecutive three fiscal year period July 1 , 1999 — June 30, 2002 is: o Approximately $786 per claim • Claim count average of 17.3 at total claims administration cost of $27,500 over consecutive three fiscal year period July 1, 2002 — June 30, 2005 is: o Approximately $1 ,590 per claim Costs for the Cambridge TPA Claims Administration services are as follows: • $26,500 Flat Rate Annual Fee • $1 ,000 Annual Fee for On-Line Access (Optional) Costs are contingent on the use of Cambridge Managed Care Service and subject to a cap of 30 claims per year (revisited if exceeded in prior year). Revised- 06/04/03 Page 2 Costs for Cambridge TPA Managed Care services are as follows: • Bill Review.......................................$1.20 per line, 2 line header • PPO............................................... 28% of savings • Second Level Review.........................30% of savings • Prescription Rx................................. 30% of savings • Telephonic Case Management..............$91.00 per hour • Field Case Management......................$95.00 per hour • Utilization Review— Inpatient................$160.00 per hour • Utilization Review— Outpatient..............$145.00 per hour • Peer Review......................................$91.00 per hour plus physician's cost 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 The Orange County Sanitation District (OCSD) is self-insured for workers' compensation. Cambridge Integrated Services Group, Inc. (Cambridge) serves as the TPA on behalf of the OCSD. Cambridge has administered the program since July 1998. Previously, Presidium (1997) and Hertz Claim Management (HCM, 1993) provided the services. Information indicates that both of these organizations were ultimately acquired by Cambridge through merger and acquisition processes. Keenan & Associates (Keenan) acted as the OCSD TPA prior to HCM, Presidium and Cambridge. Keenan initially charged a flat rate fee of $29,700 for TPA services related to claims administration. Keenan had proposed an annual cost of$31,146 so the contract was terminated. Cambridge (HCM) was awarded the contract for services initially at an annual flat rate fee of $25,000 for claims administration services. OCSD worker's compensation claims count was 76 in the fiscal year preceding Cambridge (HCM) becoming the TPA. Claims administration costs are generally based on either a flat rate fee or a percentage of the claims costs. The current contract with Cambridge is based a flat rate fee. Cambridge's costs have increased from $25,000 initially to$27,500 ($26,500 flat rate fee plus $1,000 annual fee for On-Line Access) over the period the firm has administered the program. Cost for Cambridge TPA services appears to be going up due to a flat rate fee structure and OCSD decreasing claims experience rates (count). OCSD claims counts are being driven down by implementation of an aggressive safety program and ready address of ergonomic issues affecting employees. Revised: 0&04103 Page 3 For the three consecutive fiscal years from July 1, 1999 through June 30, 2002, the OCSD average workers' compensation claims experience rate was 35. This equates to a cost of approximately $786 per claim at a claims administration cost of $27,500. For the last three consecutive fiscal years (July 1, 2002 through June 30, 2005), the OCSD average workers' compensation claims experience was 17.3. This equates to a cost of approximately $1 ,590 per claim at a claims administration cost of $27,500. OCSD claims experience rates have decreased by slightly more than 50% based on a comparison of the two periods. In the fiscal year ending June 30, 2005, OCSD reported 19 workers' compensation claims. OCSD workers' compensation claims count for the first quarter of Fiscal Year 2005 — 2006 stands at one (1). Two additional claims are anticipated to be reported to the FAHR Committee at the December meeting in the monthly OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. Utilization of TPA claims administration services allows OCSD to maintain a "self- insurance" status without allocating staffing resources for this skill set. The services provided by Cambridge for claims administration include: o Claims Processing o Benefit Payments o Claims Investigation o Litigation Support o Subrogation o Setting Reserve Allocation o Medical Treatment Coordination o Escrow Administration o Employee Interface A separate aspect of the contract with Cambridge Integrated Services Group is for Managed Care services. The elements of this service are designed to minimize the cost of medical services provided while ensuring that an employee is receiving all appropriate treatment. The Managed Care services include: o Medical Bill Review o Use of a Preferred Provider Organization for Treatment o Telephonic Case Management o Field Case Management o Utilization Review o Peer Review Managed Care costs are driven by either a percent of the savings demonstrated or a specific charge per hour for the physician's or nurse's time. Revised: 06/04/03 Page 4 The Managed Care services encompass the industry standard for medical cost containment and are geared to maximize the provisions provided for under the California Workers' Compensation reforms associated with SB 899. OCSD has seen actual claim progression and resolution as a direct result of applying utilization review to a claim, resulting in movement to settlement. The CSAC Excess Insurance Authority provided OCSD with a claims audit report related to Cambridge's performance, dated August 2005. The Authority graded Cambridge on 23 claims components, using a four-point grading scale. The Authority analyzed claims data, examined a sample of up to eight claims per component, and reviewed the findings against its own guidelines. The Authority provided Cambridge with an overall grade of 92% out of 100%. The Authority's acceptable level of performance is 95%. The Authority noted the following opportunities for improvement in Cambridge's claims administration activities: • Compensability score of 91%— Consistent follow-up required on discovery of incident facts, medical history and forensic medical opinion to evaluate compensability. • Three-Point Contact score of 66% - Contact injured worker, employer and treating physician within five working days of receipt of notice of claim; document contacts in file. • Initial Indemnity Payments score of 91% - Consistent maintenance of documentation of initial indemnity benefit notices in claim file. • Fiscal Handling score of 69% - Implement process to comply with the "balancing"* requirement; record documentation of "balancing" activity in the file. • Penalties score of 91% - Close supervision of benefit due dates. • Incoming Correspondence— Consistent date stamping of incoming correspondence for the date of receipt. *Requirement for active indemnity cases to be balanced with appropriate file documentation on a semi-annual basis to verify statutory benefits are paid, and medical/legal and vocational rehabilitation charges are appropriate. ALTERNATIVES • Defer action until current contract with Cambridge expires in June 2007. • Direct staff to enter into negotiations with Cambridge on an alternative fee structure for claims administration services. CEQA FINDINGS N/A ATTACHMENTS N/A Revised: 06/04/03 Page 5 (� GWR System Steering Committee f October 10, 2005 MINUTES GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE STEERING COMMITTEE (A Committee of Orange County Water District and Orange County Sanitation District Directors) OCWD Boardroom, 10500 Ellis Avenue, Fountain Valley Monday, October 10, 2005, 5:30 p.m. Committee Members Philip L. Anthony OCWD Director, Chairman ..............Present Kathryn Barr OCWD Director ................................Present Roger Yoh OCWD Director..........................Not Present Steve Anderson OCSD Director .................................Present Mike Duvall OCSD Director, Vice Chairman ........Present Carolyn Cavecche OCSD Director ..........................Not Present Alternates Jan Debay OCWD Director (No. 1) ....................Present Denis Bilodeau OCWD Director (No. 2) .................Present Steve Sheldon OCWD Director(No. 3) ............Not Present Jim Ferryman OCSD Director (No. 1) .....................Present Don Bankhead OCSD Director (No. 2) .....................Present Larry Crandall OCSD Director(No. 3) .....................Present Other Directors Present None. CONSENT CALENDAR(ITEM NO. 1 ) MOTIONNOTE ACTION TAKEN 1. MINUTES OF PREVIOUS MEETING ANTHONY-AYE RECOMMENDATION: Approve Minutes of the September 12, 2005 BARR-AYE APPROVED Groundwater Replenishment System DEBAY-MOTION,AYE Steering Committee Meeting as mailed ANDERSON-AYE DUVALL-SECOND,AYE FERRYMAN-AYE 2. ISSUANCE OF REQUESTS FOR PROPOSALS FOR AN ANTHONY-AYE INTEGRATED INFORMATION SYSTEM FINANCIAL SYSTEM BARR-AYE APPROVED SPECIALIST DEBAY-MOTION,AYE RECOMMENDATION: Agendize for October 19 OCWD Board ANDERSON-AYE meeting: Authorize issuance of Requests DUVALL-SECOND,AYE for Proposals for the services of a Financial FERRYMAN-AYE System Specialist to assist in the implementation of the Integrated Information System. 3. ISSUANCE OF REQUESTS FOR PROPOSALS FOR AN ANTHONY-AYE INTEGRATED INFORMATION SYSTEM PROCESS BARR-AYE APPROVED CONTROL SYSTEM INTEGRATION SPECIALIST DEBAY-MOTION,AYE RECOMMENDATION: A endize for October 19 OCWD Board ANDERSON-AYE - 1 - GWR System Steering Committee October 10, 2005 meeting: Authorize issuance of Requests DUVALL—SECOND,AYE for Proposals for the services of a Process FERRYMAN-AYE Control System Integration Specialist to assist in the implementation of the Integrated Information System. 4. LIMITED TERM EMPLOYMENT AGREEMENT FOR MIRCEA ANTHONY-AYE COMAN TO PROVIDE ELECTRICAL INSPECTION SERVICES BARR—AYE STAFF REQUESTED FOR THE GWR SYSTEM ADVANCED WATER DEBAY-MOTION,AYE THAT THIS ITEM BE PURIFICATION FACILITY ANDERSON-AYE DEFFERED TO A RECOMMENDATION: Agendize for the October 19 OCWD Board DUVALL—SECOND,AYE LATER MEETING. meeting: Authorize execution of a twenty- FERRYMAN-AYE month limited term employment agreement with Mircea Coman to provide electrical, instrumentation and process control inspection services for the GWR System Advanced Water Purification Facility at an hourly rate of$50.00 per hour from November 1, 2005 to June 30, 2007,with these costs being shared between the OCWD and OCSD. END OF CONSENT MATTERS FOR CONSIDERATION 5. CONTINUATION OF GROUNDWATER REPLENISHMENT ANTHONY-AYE (GWR) SYSTEM OUTREACH BARR—SECOND,AYE APPROVED RECOMMENDATION: Agendize for the October 19 OCWD and DEBAY—AYE October 26 OCSD Board meetings: ANDERSON-AYE DUVALL—MOTION,AYE 1) Authorize the issuance of a Professional FERRYMAN-AYE Service Agreement to Faubel Public Affairs for$292,560 for outreach support services for the GWR System. 2) Authorize the issuance of a Professional Service Agreement to KW Communications for$86,640 for construction outreach services for the GWR System. 3) Authorize the issuance of a Professional Service Agreement to JD Communications for$74,385 for construction outreach services for the GWR System. 4) Authorize the issuance of a Professional Service Agreement to Tashiro Choi and Associates for$42,480 for multicultural outreach services for the GWR System. 5) Authorize establishing a budget of $20,000 for construction outreach expenses. - 2 - i GWR System Steering Committee October 10, 2005 6. ISSUANCE OF A PROFESSIONAL SERVICES AGREEMENT ANTHONY-AYE TO COMMERCIAL RELOCATION COMPANY, INC.FOR BARR—SECOND,AYE APPROVED RELOCATION OF EXISTING SHELVING, ADDITION OF DEBAY—MOTION,AYE NEW SHELVING AND MODULAR FURNITURE FOR THE ANDERSON-AYE NEW WAREHOUSE DUVALL—AYE RECOMMENDATION:Agendize for October 19 OCWD Board FERRYMAN-AYE Meeting: Authorize issuance of a Professional Service Agreement to Commercial Relocation Company, Inc. in an amount not to exceed$96,500 to provide for the relocation of existing shelving, addition of new shelving and modular furniture for the new Warehouse. INFORMATIONAL ITEMS 7. OCSD SECURITY PLAN UPDATE STAFF REQUESTED THAT THIS ITEM BE DEFERRED TO A LATER MEETING 8. OCSD QUARTERLY CAPITAL PROJECT UPDATE INFORMATIONAL 9. BARRIER OPERATIONS WORKPLAN FOR FY 2006-2007 INFORMATIONAL 10. ADVANCED WATER PURIFICAITON FACILITY COST INFORMATIONAL SAVINGS UPDATE 11. PROJECT SCHEDULE AND BUDGET UPDATE INFORMATIONAL 12. CONSTRUCTION PROJECTS PROGRESS INFORMATIONAL 13. MONTHLY CHANGE ORDER UPDATE INFORMATIONAL 14. STATUS REPORT INFORMATIONAL • Grants and Loans Update • Public Information and Education Update DIRECTORS'ANNOUNCEMENTS/REPORTS GENERAL MANAGERS'ANNOUNCEMENTS/REPORTS ADJOURNMENT 6:10 P.M. - 3 - ►� \ Compre", pensive nnual . _ - Inancia1g,% o r Coe ENV/Rod z O ' ~ •11• y Im for the Fiscal Year Ended June 30 , 2005 Orange County Sanitation District, California Mw uxd Lad Uw ORANGE COUNTY SANITATION DISTRICT ORANGE COUNTY, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT um FOR THE YEAR ENDED JUNE 30, 2005 Uw Uw tow ww LKI Prepared By: Department of Finance Accounting Division Michael D.White, CPA Controller i i� f �i W (THIS PAGE LEFT INTENTIONALLY BLANK) L tw and ORANGE COUNTY SANITATION DISTRICT Comprehensive Annual Financial Report Table of Contents low For the Year Ended June 30, 2005 Paqe Old INTRODUCTORY SECTION: Letterof Transmittal................•--------....................................-----.....................................----.......... i GFOA Certificate of Achievement................................................................................................ viii CSMFO Certificate of Award ....................................................................................................... ix mBoard of Directors........................................................................................................................ x OrganizationChart....................................................................................................................... xi Map of Service Area •• FINANCIAL SECTION: Independent Auditors' Report...................................................................................................... 1 Management's Discussion and Analysis—Required Supplementary Information....................... 3-8 �., Basic Financial Statements: Statement of Net Assets ................................................................................ Statement of Revenues, Expenses, and Changes in Net Assets...................................... 11 Statementof Cash Flows.................................................................................................... 12 'ZW Notes to Basic Financial Statements 13-32 Supplementary Information: Combining Statement of Net Assets................................................................................... 34 ,.W Combining Statement of Revenues, Expenses, and Changes in Net Assets .................... 35 Combining Statement of Cash Flows.................................................................................. 36 Schedule of Changes in Net Assets by Activity and Revenue Area.................................... 37 a' STATISTICAL SECTION: Net Assets by Component—Last Five Fiscal Years.................................................................... 40 Revenues and Gross Capital Contributions by Source-Last Ten Fiscal Years.......................... 41 ,=d Expenses by Type-Last Ten Fiscal Years ................................................................................. 42 Change in Net Assets—Last Five Fiscal Years........................................................................... 43 Cash and Investment Reserve Balances—Last Ten Fiscal Years.............................................. 44 Cash and Investment Portfolio—Current Fiscal Year.................................................................. 45 ftw' Number of Accounts and Revenues by Customer Class—Last Ten Fiscal Years...................... 46 Annual Sewer Service Charges, SFR—Last Six Fiscal Years and Next Fiscal Year.................. 46 Property Tax Rates-Direct and Overlapping Governments- tw Last Ten Fiscal Years.............................................................................................................. 47 Principal Users—Current Fiscal Year and Nine Years Ago......................................................... 47 Assessed and Estimated Actual Value of Taxable Property- LastTen Fiscal Years..........................................................................................................•--- 48 law Property Tax and User Fee Levies and Collections-Last Ten Fiscal Years............................... 49 Property Value and Construction-Last Ten Fiscal Years........................................................... 50 Ratio of Annual Debt Service for Bonded Debt to Total Expenses—Last Ten Fiscal Years....... 51 Bond Coverage-Last Seven Fiscal Years.................................................................................. 52 tow Computation of Direct and Overlapping Debt—Current Fiscal Year........................................... 53 Comparison of the Volume of Wastewater Treated With Revenues and Expenses- LastTen Fiscal Years............................................................................................................. 54 tow Authorized Full-time Equivalents by Function—Last Ten Fiscal Years....................................... 55 Biosolids Produced-Last Ten Fiscal Years................................................................................ 56 Demographic Statistics-Last Ten Fiscal Years.......................................................................... 57 Estimated Populations Served by the Orange County Sanitation District.................................... 58 Insurance in Force MiscellaneousStatistics....................................................................................................•----...... 60 • f 1� W (THIS PAGE LEFT INTENTIONALLY BLANK) �f W i e.r told d.t 6" () Ir. hod Introductory Section Imi ami aw mw mi mi mg — `OJN� SAMI/,�r,oy o� C? ORANGE COUNTY SANITATION DISTRICT 9 IM1,C 7 EN\P phone: September 9, 2005 (7141 962-2411 fax: (714)9620356 The Board of Directors of the www.ocsd.com Orange County Sanitation District, mailing address: Orange County, California P.O. Box 8127 )untain Valley.CA Submitted herewith is the Comprehensive Annual Financial Report of the Orange County Sanitation 92728-8127 District, Orange County, California for the fiscal year ended June 30, 2005. This report includes the street address: financial position and activity of individual revenue areas, as described within the Governmental Structure 1844 Ellis Avenue below, as of June 30, 2005 and was prepared by the Accounting Division of the Sanitation District's 3untain Valley,CA Finance Department. 92708-7018 Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, Member including all disclosures, rests with the Sanitation District. To the best of our knowledge and belief, the Agencies enclosed data is accurate in all material respects and is reported in a manner designed to present fairly 4 the financial position and results of operations of the Sanitation District. All disclosures necessary to Cities enable the reader to gain an understanding of the agency's financial activities have been included. Anaheim Brea The report presented herewith consists of three parts: (1) an introductory section consisting of a letter of Buena Park transmittal, awards received for the prior year's Comprehensive Annual Financial Report, a listing of the Cypress Board of Directors, an organization chart, and a map of the service area; (2) a financial section consisting Fountain Valley of the independent auditors' report, Management's Discussion and Analysis of the financial statements, Fullerton Garden Grove basic financial statements, and supplementary financial statements and schedule of the individual U!jntington Beach Revenue Area Funds; and (3) a statistical section consisting of pertinent financial and non-financial data Irvine that presents historical trends and other information about the District. La Habra La Palma Los Alamitos Included within the accompanying financial statements are all of the organizations, activities, and functions Newport Beach controlled by the Sanitation District's Board of Directors in accordance with the Governmental Accounting Orange Standards Board Statement Number 14, "The Financial Reporting Entity'. For the purpose of this �. Placentia Santa Ana evaluation, control was determined by the Board's responsibility for: (1) adoption of the budget and user Seal Beach charges, (2) taxing authority, and (3) establishment of policies. The reporting entity and its services are Stanton described in further detail in Note 1 of the financial statements. Tustin Villa Park Yorba Linda GOVERNMENTAL STRUCTURE 1 Linty of Orange The Orange County Sanitation District encompasses the Northern section of Orange County. The Sanitary Districts Sanitation District provides wastewater treatment for an area of the County covering 471 square miles and serving a population of approximately 2.4 million, or 81 percent of the County's population. The Sanitation Costa Mesa Midway City District was originally incorporated in 1954 as nine separate public corporations, or districts. In April of 1998, at the District's request, the Board of Supervisors of the County of Orange passed Resolution No. "later Districts 98-140 ordering the consolidation of these nine County Sanitation Districts into a new, single sanitation district, to be known as the Orange County Sanitation District, effective July 1, 1998. This action was Irvine Ranch recommended to the Board by the Local Agency Formation Commission in order to simplify governance structures, 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, 2003, all Revenue Areas, except Revenue Area 14, consolidated user fee rates and all enterprise fund accounting and budgeting activities and are now known as the Consolidated Revenue Area. i To maintain world-class leadership in wastewater and water resource management u ; I The Sanitation 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 two remaining Revenue Areas, the Consolidated Revenue Area and Revenue Area 14, has its own budget and is 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 its revenues LJ from service charges to the Irvine Ranch Water District. The purpose of the Sanitation District's wastewater management program is to protect the public's health, U preserve 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. The Sanitation District sewerage system includes approximately 620 miles of sewers that convey u 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 138 million gallons per day (mgd) and 168 mgd, respectively. Approximately 60 percent of the advanced primary effluent also 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. ECONOMIC CONDITIONS AND OUTLOOK In June 2005, the Anderson Center for Economic Research at Chapman University forecasted payroll job growth in Orange County of 1.7 percent in 2005, or the creation of 24,000 jobs, and 1.2 percent growth in 2006, or the creation of 18,000 new jobs. This projection is a decline from the actual job growth of 2.2 L percent in 2004. Most of this decline is being attributed to the job weakness within the construction sector due to the projected decline in the building permit valuation levels and a corresponding drop in construction spending. The unemployment rate for Orange County increased from 3.6 percent in FY 2003-04 to 3.9 percent in FY 2004-05. Total taxable sales is forecasted to increase 5.4 percent in 2005 and 4.6 percent in 2006 while personal income is forecasted to increase over the same time period 6.1 percent and 5.7 percent, respectively. Fueled by low commercial vacancy rates, nonresidential permit valuation is forecasted to increase 4.0 percent, or $45.4 million in 2005 and 0.2 percent, or $2.4 million, in 2006. Although residential permit valuation achieved a 7.7 percent, or $160.8 million growth in 2004, a decline of 5.2 percent, or $116.9, million is forecasted for 2005. According to Chapman University, the contributing factors associated with U the decline in residential permit valuations include slower economic growth, higher interest rates, and the scarcity of land available for development. Unlike last year, Chapman University is now forecasting an imminent housing price decline. In the prior year, they had forecasted significantly lower appreciation than what actually occurred due to lower than anticipated mortgage rates. However, Chapman is projecting higher mortgage rates in 2005 and 2006. , They believe that families in Orange County can not afford higher prices, and question whether they can u even afford current prices. Chapman University is forecasting the rate of housing appreciation to fall L� ii I" Ind sharply, from 27.4 percent appreciation in 2004 to 6.7 percent in 2005,followed by a decline of 3.5 percent in 2006. They have termed this decline to be a slow deflation as opposed to a "bursting of the bubble". MAJOR INITIATIVES A New Ocean Discharge Permit The Sanitation District's Board of Directors decided in July 2002 to voluntarily give up its modified ocean discharge permit, issued under section 301(h) of the Federal Clean Water Act, which allowed the Sanitation District to discharge a higher level of Suspended Solids and Biochemical Oxygen Demand than otherwise required by the Act if adequate environmental and public health protection was demonstrated. It was for this reason, in fact, that the U.S. Environmental Protection Agency (EPA) and the State of dr California issued this agency the modified permit and consistently supported the Sanitation District in this effort. To obtain a renewal of its ocean discharge permit without the modification (oftentimes referred to as a "waiver"), the District is undertaking a massive capital improvement program ("CIP")of building new, and rehabilitating existing, facilities in order for the Sanitation District to operate its facilities in a manner that will allow it to achieve secondary treatment standards as defined by the Act. tow Achieving secondary treatment standards will take approximately 7.5 years to complete. Permits are issued for five (5)years duration, and the EPA has no authority to waive the discharge limits requirements or grant a longer permit (except per Sec. 301(h)). The alternative was to voluntarily seek a consent decree concurrently with the issuance of the new ocean discharge permit. This consent decree approves the construction schedule and decrees that no penalties will be imposed for discharges that exceed the secondary treatment limits during the period of construction. This negotiated consent decree was signed by the District, EPA, and the State of California Regional Water Quality Control Board and filed with the U.S. District Court on November 15, 2004. "d 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 72,000 acre-feet per year of reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier. low GWRS will have the capacity to divert up to 100 million gallons of water a day from the Sanitation District's ocean discharge during peak winter storms, which will allow the District to defer construction of an ,m additional ocean outfall at an estimated cost of$170 million. The Sanitation District and OCWD have agreed to match the funding for this project. The Sanitation District alone has budgeted $251.7 million through FY 2007-08. Through FY 2004-05, $67.1 million of this 'o amount has been incurred with an additional $84.8 million included in the cash flow outlay for FY 2005-06. Federal and State Grants of$45 million will offset part of the Sanitation District's costs. Biosolids Program The Sanitation District produces approximately 650 tons of digested and dewatered (Class B) biosolids per day. By 2020, the Sanitation District's biosolids production is projected to increase by 30 percent, to 310,000 tons annually. The Sanitation District relies on land application of its Class A chemically- stabilized biosolids in both Kern County, California and on its ranch in Kings County, California; on land iii i L application of Class B biosolids in Arizona; composting to Class A biosolids in Riverside County and in Arizona; and landfilling Class B biosolids at two landfills in Yuma County, Arizona. - Counties throughout California and Arizona have developed, or are in the process of developing, ordinances that severely restrict or ban the land application of Class B biosolids. Kern and Kings Counties have already banned land application of Class B biosolids. It has become clear that future requirements for managing biosolids will be more restrictive and costs will increase as current options are eliminated. r, The dynamic regulatory issues, land application ordinances and bans, and public perception challenges prompted the Sanitation District to develop a Long-Range Biosolids Management Plan. This plan was approved by the Board in December 2003. The goal is to develop a sustainable, reliable, and economical program for long-range biosolids management providing environmentally sound practices that meet the stringent federal, state, and local regulatory requirements. The Plan recommendations include new in- plant technologies to reduce the volume of biosolids, exploration of Class A biosolids products, and movement into the energy and fuel production and compost markets. In April 2005, the Board approved a contract with EnerTech Environmental, Inc. to convert the Sanitation District's biosolids to a renewable fuel at their Regional Biosolids Processing Facility in Rialto, California. The EnerTech's solution is a relatively new, patented heat treatment process. The patented process increases the ability to dewater biosolids in order to maximize the efficiency of the production of fuel. By decreasing the moisture content of biosolids prior to drying, a smaller dryer is needed, thus reducing capital and energy consumption. The fuel product will be totally recycled and reused, under agreements with area cement kilns and other fuel users. Residual ash from the fuel combustion becomes part of the cement product, resulting in no residual waste product liability. EnerTech proposes to finance, design, construct, and operate this 625 ton per day facility. Several local governmental agencies have previously 1.., committed approximately 275 tons per day of biosolids to this project and this project has now become economically viable with the commitment of 200 tons of biosolids per day from the Sanitation District. Also in April 2005, the Board approved the amendment of the existing memorandum of understanding (MOU) with South Orange County Wastewater Authority (SOCWA) for preliminary facility design, permitting, and community relations activities for the development of a composting facility at the Prima Deshecha Landfill in South Orange County. For the past two years under the previously existing MOU, SOCWA and the District have been working with the Orange County Integrated Waste Management Department's Biosolids Committee to site an enclosed biosolids and greenwaste composting facility at the Prima Deshecha Landfill in South Orange County. The proposed "South Orange County Composting Facility" would take in approximately 100 to 110 tons of Class B biosolids daily from the District and SOCWA, and combined with like amounts of wood chips and yard trimmings, would produce approximately 65 to 75 tons of compost per day. The MOU reflects a 50-50 participation commitment and ownership in the facility between SOCWA and the Sanitation District, and consent to initiate and fund the 6w1i tasks for the initial planning, permitting and concept design of the project. The costs to beneficially reuse biosolids are expected to increase by about $3 million per year starting in FY 2006-07. The FY 2005-06 budget for biosolids management alone is $10.0 million. Asset Management A Strategic Plan for Asset Management was completed in December 2002 and was unanimously adopted by the Board of Directors. This Strategic Plan defined Asset Management for the District as: "to create and acquire, maintain, rehabilitate, replace and augment these valuable wastewater assets in the most cost effective (lowest life cycle cost) sustainable manner at the level of service required by present and future generations of regulators and customers at an acceptable level of risk." The strategic plan included: an analysis of the current state of asset management at the District, the L.+ development of a basic and advanced asset management program tailored to the District, and a gap analysis showing the needed changes for each level of asset management. It also presented a business iv i a" wo case for the District for implementation of advanced asset management practices. The business case projected that at least$350 million in life cycle asset cost savings could be obtained over a 25 year period, that an additional $50 million could be saved in reduced capital expenditures, and that the implementation ow of advanced asset management practices would put the District on track to developing a platform for sustainable infrastructure. In April 2003, the Board directed staff to submit the Asset Management Program to an independent peer UN review process with the intent of developing recommendations for the Board. That review was completed in November 2003 and was reviewed by the Board in February 2004. The recommendation from the independent review was for the Sanitation District to implement advanced management practices. A staff tft driven approach was approved in April 2004 by the Board of Directors. In June 2005, an Asset Management Implementation Plan was developed that estimated the to implementation cost effort would be $7.5 million in order to achieve the $350 million in life cycle asset costs savings. Full implementation of the asset management program is projected to take up to six years. Using life- cycle asset costs and applying advanced maintenance practices, the District projects considerable long term cost-savings while increasing reliability. As Asset Management is a process of continuous improvement,the future state of asset management will continually be reviewed. ..r SERVICE EFFORTS AND ACCOMPLISHMENTS The Sanitation District received the Silver "Peak Performance" Award from the National Association of Clean Water Agencies for 2004. In September of 2004, the Sanitation District received the Environmental Protection Agency's 2004 National Clean Water Act Recognition Award for its outstanding biosolids management program. The Sanitation District received the Collection System of the Year Award from the Santa Ana River Basin Chapter of the California Water Environment Association for 2004. In October of 2004, The Orange County Water District and the Sanitation District received the 2004 Public Education "Program of the Year" from the WateReuse Association for their joint effort in the Groundwater �+ Replenishment System water reuse public information program. The Sanitation District received two Pubic Relations Society of America Awards of Excellence in god recognition of the Fats, Oils, and Grease Training Video and Multilingual Public Education Toolbox. ACCOUNTING AND BUDGETARY CONTROLS Imm The District's accounting records are maintained on the accrual basis. In developing and evaluating the 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 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 provide reasonable assurance of proper recording of financial transactions. two 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 during the year. Upon adoption, District's staff allocates the joint works budget proportionately to v i 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 purchasing standards. 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 $38,861,000 at June 30, 2005 that has maturities out to 120 days, and a long- term investment pool of $339,301,000 that has average maturities out to 2.7 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 $63.6 million consist of bank investment contracts of $33.9 million with AIG and Bayerische Landesbank Girozentrale, with $12.4 million maturing in 2013 and the remaining $21.5 million maturing in 2016, and $29.7 million in U.S. Government securities and open-ended mutual funds. Investment income includes changes in the fair value of investments. Increases or decreases in fair value during the current year do not necessarily represent trends that will continue; nor is it always expected that such amounts will be realized, especially in the instance of temporary changes in the fair value of investments. i V Investment earnings for the year were $15,118,000, an increase of $8,332,000 from the prior fiscal year total of$6,786,000. The increase in investment and interest income is attributable to higher yields earned on investments that are somewhat offset by the lower cash and investment balances over the prior year. Cash and investment balances decreased in FY 2004-05 from the prior year by $134.0 million, from $606.3 million to $472.3 million, or 22.1 percent. This decrease is primarily attributable to the $197.0 million cash outlay in support of the District's capital improvement program. However, yields earned on investments increased from 1.31 percent to 2.80 percent during this same time period generating the Ir, overall increase in investment and interest income. The increase in the yields earned on investments can also be partially attributed to the change in unrealized gains and losses from year-to-year. As of June 30, 2004, the District had unrealized losses on investments totaling $2,617,000. As of June 30, 2005, these unrealized losses were reduced to $2,055,000 for a total year-to-year increase in investments of$562,000. The District's investment policy is structured conservatively towards liquidity to avoid having to sell investments at a loss and having ,,_, unrealized losses become realized losses. In 1998, the District conducted an in-depth review of its reserve policy. This review included a survey of 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, 2005, the District's designated net assets totaled $472 million, and have been earmarked for the following specific purposes in accordance with the District's reserve policy: Designated For Cash Flow Contingency $108 million Designated For Self-Insurance 57 million Designated For Capital Improvements 242 million L' Designated For Debt Service Requirements 65 million Total Designated Net Assets $ 472 million vi ow RISK MANAGEMENT For the year ended June 30, 2005, 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 occurrence with outside excess insurance coverage to $50 million. The self-insured portion for property damage covering fire, and other perils other than flood and earthquake is $25,000 per occurrence with outside excess insurance coverage to $750 million. The self-insured portion for property damage covering flood is $100,000 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 tow 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$250,000. District management believes that there are no outstanding claims as of June 30, 2005 that would materially affect the financial position of the District. INDEPENDENT AUDIT LW 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 Conrad & Associates, Inc., to perform the audit for the year ended June 30, 2005. The auditors' report on the aw 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, 2005. For additional information and analysis on the financial condition of the wo Sanitation District and the results of operations for the year ended June 30, 2005, please see the Management's Discussion and Analysis within the financial statements beginning on page 3. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE MW IN FINANCIAL REPORTING The Government Finance Officers' Association of the United States and Canada (GFOA) awarded a UW 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, 2004. This was the eleventh 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 ,NW comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current ON comprehensive annual financial report continues to meet the Certificate of Achievement Program 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 preparation. I would also like to thank the District's Board 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. Respectfully submitted, Michael D.White, CPA Controller vii .d L i 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, 2004 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 systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting and financial reporting. WW '5LR-� CUM I= President Executive Director viii 1 I 1 1 I 1 I f 1 1 1 t 1 f 1 f 1 1 l California Society o 31unicipal 3inance Off-wers Certificate of Award Outstanding Financial Reporting 2003-2004 Presented to the Oranga Coum�vSanitation This certificate is issued in re•ct ignition of erc•etin;professional standards and criteria in reporting which reflect a high level of gaalitr in the annual financial statements ' and in the underlr•ing which the reparts were prepared. Februar 24, 2UU5 Sandra 5chmiJt,(hair Profi�tional d Technical tilantlatd.a ununittcc Dedicated to Excellence in ,lfunicipal Financial Afanagenlent i 6W ORANGE COUNTY SANITATION DISTRICT Board of Directors As of June 30, 2005 L ►„d AGENCY ACTIVE DIRECTOR ALTERNATE DIRECTOR Cities: Anaheim Harry Sidhu Bob Hernandez Brea Roy Moore John Beauman Buena Park Patsy Marshall Jim Dow 4� Cypress Phil Luebben Lydia Sondhi Fountain Valley Larry Crandall John Collins 6W Fullerton Don Bankhead Leland Wilson Garden Grove Bill Dalton Mark Rosen Huntington Beach Jill Hardy Debbie Cook �,, Irvine Sukhee Kang Steven Choi La Habra Steve Anderson Steve Simonian La Palma Mark Waldman Ralph Rodriguez Los Alamitos Ken Parker Catherine Driscoll 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 Paul Yost Charles Antos Stanton Harry Dotson David Shawver Tustin Doug Davert Tony Kawashima Villa Park Richard A. Freschi Patricia Bortle Yorba Linda Michael Duvall Keri Lynn Wilson Sanitary/Water Districts: Costa Mesa Sanitary District James M. Ferryman Arlene Schafer Midway City Sanitary District Joy Neugebauer Vivian Kirkpatrick-Pilger Irvine Ranch Water District Darryl Miller Douglas Reinhart County Areas: Member of the Board of Supervisors Jim Silva Lou Correa ilia I ice+ x wo %Zw ORANGE COUNTY SANITATION DISTRICT Organizational Chart As of June 30, 2005 WWI Ord BOARD OF DIRECTORS rw GENERAL GENERAL MANAGER COUNSEL OFFICE ww ADMINISTRATION HUMAN RESOURCES FINANCE INFORMATION OPERATIONS& TECHNICAL ENGINEERING AND EMPLOYEE TECHNOLOGY MAINTENANCE SERVICES DEVELOPMENT ADMINISTRATIVE HUMAN FINANCE NFORMATION OPERATIONS& ENGINEERING SERVICES RESOURCES ADMINISTRATION TECHNOLOGY MAINTENANCE ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION J;F� COMMUNICATIONS EMPLOYEE ACCOUNTING CUSTOMER& REGIONAL ENVIRONMENTAL PLANNING DEVELOPMENT/ NETWORK ASSESSMENT ASSETS AND TRANNG SUPPORT (OCEAN& �d SERVICES BIOSOLIDS) SAFETY& PURCHASING& PROGRAMMING FACILITIES ENVIRONMENTAL PROJECT HEALTH WAREHOUSE &DATABASE MAINTENANCE SCIENCES MANAGEMENT SYSTEMS SERVICES LABORATORY OFFICE L� EMPLOYEE PROCESS PROCESS SOURCE ENGNEERING& SERVICES CONTROLS ENGINEERING CONTROL L CONSTRUCTION INTEGRATION PLANT NO.1 ENVIRONMENTAL OPERATIONS COMPLIANCE SVCS (AIR& wrl LEGISLATION) PLANT NO 2 OPERATIONS MECHANICAL MAINTENANCE& POWER PRODUCTION ELECTRICAL& INSTRUMENTATION MAINTENANCE aw rri Xl ORANGE COUNTY SANITATION DISTRICT Map of Service Area As of June 30, 2005 LOS ANGELES COUNTY LA HABRA S14, 6 BREACk ♦ O�9y •p��QO O i J� CFCO CO GO GylY G�yli YORBA LINDA FULLERTON r pav PLACENTIA QiL 10 t PALMA BUENA ANAHEIM Co II. PARK CYPRESS s 5� VILLA ANAHElhk / PARK ` LOS STANTON / ORANGE ♦ ' s `'' /ALAMITOS �syti r. GARDEN GROVE SEAL BEACH S ♦ W MINSTER MIDWAY - CITY SANTA ANA ♦' IUSTIN � \\\ ♦ FOUNTA VAL. Y El raw HUNT TON f COSTA MESA 7 Reclamation Plant No. 1 IRVINE Treatment NEWPd4T BEA ' Plant No. 2 1,71 Allf r e .. IHf Orange County Sannation D,stna(OCSD) ♦ Orange County CA r ❑' Rev. 13}3 Mm X11 r rr rr low wr () ID rr Financial Section wd aw MW WEI Ow CONRAD . ND CERTIFIED PUBLIC ACCOUNTANTS taw DRIVE, 200 ASSOCIATES, L..L..P 2301 RV NOE,CALIFORN AITE 92612 (949)474-2020 Fax(949)263-5520 Uft Board of Directors Orange County Sanitation District tm Fountain Valley, California Independent Auditors' Report We have audited the accompanying basic financial statements of the Orange County Sanitation District, as of and °" for the year ended June 30, 2005, as listed in the table of contents. These financial statements are the responsibility of the management of the Orange County Sanitation District. Our responsibility is to express an opinion on these financial statements based on our audit. MW 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 Im 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 financial statements referred to above present fairly, in all material respects, the financial position of the Orange County Sanitation District, as of June 30, 2005, 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. The information identified in the accompanying table of contents as management's discussion and analysis is not a required part of the basic financial statements, but is supplementary information required by accounting principles generally accepted in the United States of America. 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. wo Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Orange County Sanitation District's basic financial statements. The introductory section, supplementary information and statistical tables 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 tables 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. In accordance with Government Auditing Standards, we have also issued a report dated September 9, 2005 on our consideration of the Orange County Sanitation District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial 'ow reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. September 9, 2005 woo 1 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS ad MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION (THIS PAGE INTENTIONALLY LEFT BLANK) 2 N. ,m, Management Discussion and Analysis June 30,2005 "d This section of the financial statements of the Orange County Sanitation District (District) is management's narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2005. The information presented here is to be considered in conjunction with additional U09i information provided within the letter of transmittal located in the Introductory Section of this report. Financial Highlights Md ■ As of June 30, 2005, the assets of the District exceeded its liabilities by$1,041.2 million (net assets). Of this amount, $418.3 million (unrestricted net assets) may be used to meet the District's ongoing obligations to citizens and creditors. ■ The District's total net assets increased$17.1 million, or 1.7 percent over the prior year. ■ Net Capital Assets, consisting of non-depreciable capital assets and depreciable capital assets net of accumulated depreciation, increased $128.4 million, or 12.3 percent over the prior year. ■ Net Assets invested in capital assets, net of related debt increased $140.1 million, or 33.5 percent. ■ Unrestricted Net Assets decreased$99.0 million, or 19.1 percent from the prior year. got Overview of the Basic Financial Statements The District operates as a utility enterprise and presents its financial statements using the economic 'o resources measurement focus and the full accrual basis of accounting. As an enterprise fund, the District's basic financial statements comprise two components: financial statements and notes to the financial statements. This report also contains other supplementary information in addition to the basic ,1, financial statements themselves. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 34, the District's financial statements include a statement of net assets, statement of revenues, expenses and changes in N' net assets, and a statement of cash flows. The statement of net assets includes all of the District's assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to District creditors (liabilities). It also provides the basis for computing the ,a, rate of return, evaluating the capital structure of the District, and assessing the liquidity and financial flexibility of the District. The statement of revenues, expenses, and changes in net assets accounts for the current year's ani revenues and expenses. This statement measures the success of the District's operations over the past year and can be used to determine the District's creditworthiness. It also highlights the District's dependency on property tax revenues in supplementing user fees and other charges for recovering total ow costs. The final required financial statement is the statement of cash flows. The statement reports cash receipts, cash payments, and net changes in cash resulting from operations and investments during the .0 reporting period. Net Assets tow As previously stated, net assets increased $17.1 million, or 1.7 percent to$1,041.2 million in FY 2004-05 over the prior year. In comparison, net assets increased $13.8 million, or 1.4 percent, to $1,024.1 million in FY 2003-04 over FY 2002-03. W" 3 (Dollars in thousands) �+ Percentage June 30, June 30, Increase Increase 2005 2004 (Decrease) (Decrease) 6+ Assets Current and other assets $ 530,910 $ 649,482 $ (118,572) -18.3% Capital assets, net 1,173,932 1,045,518 128,414 12.3% , Total assets 1,704,842 1,695,000 9,842 0.6% Liabilities Long-term debt outstanding 609,292 622,111 (12,819) -2.1% Other liabilities 54,303 48,757 5,546 11.4% Total liabilities 663,596 670,868 (7,273) -1.1% Net assets: Investment in capital assets, net of related debt 558,391 418,267 140,124 33.5% Restricted 64,514 88,519 (24,005) -27.1% Unrestricted 418,342 517,346 (99,004) -19.1% Total net assets $ 1,041,247 $ 1,024,132 $ 17,115 1.7% 10� Current and other assets decreased $118.6 million, or 18.3 percent, due primarily to the funding of$197 , million in capital improvements for FY 2004-05. jam, Capital assets, net increased $128.4 million, or 12.3 percent, due primarily to the continuing capital improvement program that includes construction of the Groundwater Replenishment System (GWRS), a 50/50 joint cost sharing effort of the Orange County Sanitation District and the Orange County Water District that will initially provide 72,000 acre-feet per year of reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier at a cost of $503.3 million. The Sanitation District incurred $35.4 million in construction during FY 2004-05 for this project bringing the total project cost-to-date to$67.1 million with a projected completion date in FY 2007-08. Another major project underway is the Effluent Pumping Station at Plant No. 2. This has been designed to meet pumping requirements for peak flow events. The new pump station will be capable of providing back-up to the Ocean Outfall Booster Station and of pumping secondary effluent exclusively through the existing 78-inch outfall during peak flow emergencies. In FY 2004-05, $27.5 million of the estimated $63.7 million was incurred bringing the total cost-to-date to $39.3 million with completion expected in FY 2007-08. The Rehabilitation of Trickling Filters and Construction of Six New Clarifiers at Plant No. 2 is another ongoing construction project. This project will enable Plant No. 2 to meet secondary treatment standards by increasing secondary treatment capacity by 60 million gallons per day. The Sanitation District incurred $20.9 million in construction costs on this project during FY 2004-05 for total project outlay to date of $38.6 million. The total projected cost is$48.7 million with completion expected in FY 2010-11. See page 7 for the Schedule of Capital Assets and a listing of the other major capital additions for FY 2004-05. Net assets invested in capital assets, net of related debt increased $140.1 million, or 33.5 percent over the prior year as a result of the $128.4 million increase in the net capital assets over the prior year, as referred to above, and the $12.0 million decline in the net outstanding debt issued to acquire capital assets due to debt payments. 4 Changes in Net Assets Net assets increased $17.1 million in FY 2004-05, a 1.7 percent increase over the prior year. (Dollars in thousands) Percentage June 30, June 30, Increase Increase 2005 2004 (Decrease) (Decrease) Revenues: Operating revenues Service Charges $ 120,917 $ 101,995 $ 18,922 18.6% Permit and inspection fees 498 332 166 50.0% Total operating revenues 121,415 102,327 19,088 18.7% Non-operating revenues Property taxes 35,764 46,943 (11,179) -23.8% Investment and interest income 15,118 6,785 8,333 122.8% Capital facilitites capacity charges 9,814 8,998 816 9.1% Other 1,051 928 123 13.3% Total non-operating revenues 61,747 63,654 (1,907) -3.0% Total revenues 183,162 165,981 17,181 10.4% Expenses: Operating expense other than depreciation and amortization 101,846 95,403 6,443 6.8% Depreciation and amortization 53,211 46,118 7,093 15.4% Non-operating expense 20,526 19,920 606 3.0% Total expenses 175,583 161,441 14,142 8.8% Income before capital contributions 7,579 4,540 3,039 66.9% Capital contributions (distributions), net 9,536 9,245 291 3.1% Increase in net assets 17,115 13,785 3,330 24.2% Beginning net assets 1,024,132 1,010,347 13,785 1.4% Ending net assets $ 1,041,247 $ 1,024,132 $ 17,115 1.7% Sources of Revenue Functional Expenses June 30, 2005 June 30,2005 8% 10% 13% ❑Collections 20% 6% ❑User Fees ❑Treatment& ❑Taxes Levied Disposal ❑Interest 30% ❑Depreciation & ❑Other Amortization ElInterest 047% Expense 66% 5 L As previously stated, an enterprise fund is used to account for the operations of the District, which is jam, 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. Sewer service user 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. Imo,, In FY 2004-05, operating revenues increased $19.1 million, or 18.7 percent over the prior year, reflective of the $18.9 million, or 18.6 percent increase in service charges. The increase in service charges is primarily due to the 15.0 percent increase in the average sewer user fee rate over the prior year. 6w The $1.9 million, or 3.0 percent, decline in non-operating revenues consists of an $11.2 million, or 23.8 percent decline in property tax revenue that is partial offset by an $8.3 million, or 122.8 percent increase in investment and interest income. The$11.2 million decrease in property tax revenues is reflective of the State of California's current fiscal crisis and the implementation of the first year of a two-year 40 percent secured property tax shift away from independent special districts. This 40 percent reduction for FY 2004-05 was somewhat offset by the continuing upturn in the real estate market. Total assessed valuations increased over the prior year by 8.5 percent, and the full value of these increases was received on all non-secured property tax distributions. The increase in investment and interest income is attributable to the higher yields earned on investments that were somewhat offset by the lower cash and investment balances over the prior year. Yields earned on investments increased from 1.31 percent in FY 2003-04 to 2.80 percent in FY 2004-05 generating an overall increase in investment and interest income. However, cash and investment balances decreased in FY 2004-05 from the prior year by$134.0 million from $606.3 million to $472.3 million, or 22.1 percent, and is primarily attributable to the $197.0 million cash outlay in support of the District's capital improvement program. Of the 6.8 percent increase in operating expense before depreciation and amortization, collection system , operating activities increased 26.7 percent, or $4.3 million, while treatment and disposal operating expenses increased by 2.3 percent, or$1.9 million. The increase in collection system operating activities is primarily attributable to a $2.2 million increase in chemicals for treatment in the Newport Trunk line and an increase of $0.9 million in salaries and benefits related to the increased costs in maintaining the 620 miles of sewers free from failure. The increase in treatment and disposal operating expenses is primarily due to the $3.4 million increase in salaries and benefits. These costs were partially offset by increased overhead charges of$1.5 million to the capital improvement program as total capital improvement outlay , was just under$200 million. The salaries and benefits expense increased $3.4 million, or 7.9 percent within the treatment and L disposal activities, and $900,000, or 17.4 percent within the collection activities. These total increases of $4.3 million in salary and benefit operating expenses is part of the overall increase in the District salaries and benefits of $5.4 million when including salaries and benefits capitalized within the capital improvement program. Overall, total District salaries and benefits were $63.1 million, a 9.3 percent 6,A increase over the prior year total of$57.7 million. This increase is attributable to the addition of 34.3 full time equivalent employees over the prior year that were necessary to support the District's $2.4 billion capital improvement program and to optimize the operations of the existing secondary treatment facilities to achieve the highest possible treatment standards. Included within the overall increase in salaries and 6' benefits is a $1.9 million increase in the employer's share of retirement contributions as imposed by the Orange County Employee's Retirement System. kw The 15.4 percent,or$7.1 million increase in depreciation and amortization expense is due to the recent completion of$28 million in construction project assets now being depreciated and the completion of $15.3 million in capitalized studies that are now being amortized over a five-year period. Included in the list of construction projects placed into service in FY 2004-05 are the$17.3 million Standby Power& Reliability Modifications Utility System Project and the$7.0 million Warner Avenue Relief Sewer. Included in the list of studies that were capitalized in FY 2004-05 and are now being amortized are the 6 L $5.3 million Huntington Beach Shoreline Contamination Investigation and the$4.3 million CIP Strategic Plan Update. Capital Assets At June 30, 2005, the District had a net investment of $1.174 billion in capital assets. This amount represents a net increase (including additions and deletions) of$128.4 million, or 12.3 percent over the prior year. Schedule of Capital Assets (Net of Depreciation and Amortization) (Dollars in thousands) Percentage too June 30, June 30, Increase Increase 2005 2004 (Decrease) (Decrease) tmi Land $ 13,021 $ 11,446 $ 1,575 13.8% Construction in Progress 487,885 359,104 128,781 35.9% Sewage collection facilities 259,534 255,755 3,779 1.5% kaw Sewage treatment facilities 305,641 317,979 (12,338) -3.9% Effluent disposal facilities 57,004 50,089 6,915 13.8% Solids disposal facilities 1 3 (2) -66.7% am General and administrative facilities 50,845 51,142 297 -0.6% Capital assets, net $ 1,173,931 1,045,518 128,413 12.3% WW Major capital asset additions for the current fiscal year included the following: $35.4 million-Ground Water Replenishment System • $27.5 million- Effluent Pumping Station Annex Md • $20.9 million- Rehabilitation of the Trickling Filters&Construction of Secondary Clarifiers • $ 8.6 million- 16 Additional Primary Clarifiers at Plant No. 1 • $ 6.4 million-Gisler-Redhill/North Trunk Improvements „d • $ 6.4 million- New Secondary Treatment System at Plant No. 1 More detailed information about the District's capital assets is provided in Notes 1 and 3 of Notes to the Financial Statements. MW Debt Administration MW At June 30, 2005, the District had $621.3 million outstanding in certificates of participation (COP), a net decrease of $12.1 million, or 1.9 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. Eft 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 W, high ratings. Over the next ten years, the District is projecting an additional $2.4 billion in future treatment plant and collection system capital improvements. In accordance with the District's long-term debt fiscal policy, the District will restrict long-term borrowing to capital improvements that cannot be financed from current revenue. kNo The Sanitation District is currently in the process of releasing $200 million of new COP variable rate debt that is expected to be issued in January 2006. A total of $1.5 billion in COP debt issuance is being IEW proposed over the next ten years. These financings are needed early in the 20-year capital improvement program because the bulk of the construction is scheduled during the next ten years. For more detailed information on long-term debt activities, refer to Note 4 of the Notes to Basic Financial Statements. Economic Factors and Next Year's Budgets and Rates ■ The unemployment rate within the County of Orange is currently 3.9 percent, which is an increase from a rate of 3.6 percent a year ago. ■ Inflation for Orange County in 2004 increased 3.3 percent based on the 2004 actual percentage change in the consumer price index according to the June 2005 Economic and Business Review report prepared by Chapman University. • The actual rate of return on investments increased from the 1.31 percent earnings rate in FY 2003-04 to 2.8 percent for FY 2004-05. All of these factors were considered in preparing the District's budget for FY 2005-06. The Sanitation District's user fee schedule was increased by 31.1 percent for FY 2005-06 over the prior year. The fee applicable to the District's largest customer base, the single-family residential fee, increased annually by $36.00 from $115.00 to$151.00. These rate increases were necessary to finance the District's cash flow needs as capital improvement outlays alone will increase 40.6 percent to $277.0 million in FY 2005-06, and are projected to total $2.4 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 should be addressed to the Finance Department, Orange County Sanitation District, P.O. Box 8127, Fountain Valley, CA 92728-8127. I 8 mw tmd tmw �i ORANGE COUNTY SANITATION DISTRICT BASIC FINANCIAL STATEMENTS 9 ORANGE COUNTY SANITATION DISTRICT Statement of Net Assets June 30, 2005 (With Comparative Data for June 30, 2004) 2005 2004 Current assets: Cash and cash equivalents $ 40,667,279 $ 101,667,204 Investments 367,715,247 416,653,124 Accounts receivable, net of allowance for uncollectibles 11,161,337 9,465,565 Accrued interest receivable 3,833,632 4,005,023 Due from other governmental agencies 3,429,419 4,182,762 Connection fees receivable 1,507,780 561,697 Property tax receivable 1,651,481 1,073,114 Inventories 4,464,047 4,338,777 Prepaid and other assets 608,571 672,228 Total current assets 435,038,793 542,619,494 Noncurrent assets: Restricted: Cash and cash equivalents 30,029,371 5,964,807 Investments 33,933,427 81,994,903 Accrued interest receivable 551,060 559,270 Unrestricted: Non-depreciable capital assets 500,906,057 370,549,957 Depreciable capital assets, net of accumulated depreciation 673,025,746 674,967,717 Deferred charges 3,926,011 4,106,715 Excess purchase price over book value on acquired assets, net 7,482,529 8,140,238 6W Other assets, net 19,949,383 6,096,856 Total noncurrent assets 1,269,803,584 1,152,380,463 Total assets 1,704,842,377 1,694,999,957 6W Current liabilities: Accounts payable 14,301,005 13,914,502 6W Accrued expenses 6,787,605 6,076,755 Retentions payable 5,783,105 3,343,920 Interest payable 8,889,235 8,855,862 Current portion of long-term obligations 18,541,952 16,565,607 Total current liabilities 54,302,902 48,756,646 Noncurrent liabilities: Noncurrent portion of long-term obligations 609,292,595 622,111,252 Total liabilities 663,595,497 670,867,898 Net assets: Invested in capital assets, net of related debt 558,391,221 418,266,586 Restricted for debt service 64,513,858 88,518,980 Unrestricted 418,341,801 517,346,493 Total net assets $1,041,246,880 , $1,024,132,059 See Accompanying Notes to Basic Financial Statements. 6w 10 "d ORANGE COUNTY SANITATION DISTRICT Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended June 30, 2005 0.0 (With Comparative Data for the Year Ended June 30, 2004) � 2005 2004 Operating revenues: Service charges $ 120,916,671 $ 101,994,667 Permit and inspection fees 498,391 332,329 Total operating revenues 121,415,062 102,326,996 Operating expenses other than depreciation end and amortization: Salaries and benefits 53,048,037 48,711,494 Utilities 6,473,251 5,408,223 Mai Supplies, repairs and maintenance 18,289,913 16,954,161 Contractual services 18,573,208 18,498,097 Directors'fees 131,240 141,440 ,C, Meetings and training 924,001 979,802 Other 4,406,730 4,710,179 Total operating expenses other than aw depreciation and amortization 101,846,380 95,403,396 Operating income before depreciation and amortization 19,568,682 6,923,600 am Depreciation and amortization 52,553,688 45,460,338 Amortization of excess purchase price over law book value on acquired assets 657,709 657,709 Operating loss (33,642,715) (39,194,447) ,W Non-operating revenues: Property taxes 35,763,818 46,943,327 Investment and interest income 15,117,946 6,785,653 Capital facilities capacity charges 9,814,131 8,997,737 Other 1,051,123 927,906 Total non-operating revenues 61,747,018 63,654,623 me Non-operating expenses: Interest 17,469,464 15,524,457 Capital grants to member agencies 1,969,190 3,050,918 b'' Other 1,086,988 1,344,842 Total non-operating expenses 20,525,642 19,920,217 and Income before capital contributions 7,578,661 4,539,959 Capital contributions from other agencies 9,536,160 9,244,805 Change in net assets 17,114,821 13,784,764 Total net assets-beginning 1,024,132,059 1,010,347,295 Total net assets-ending $1,041,246,880 $1,024,132,059 „r See Accompanying Notes to Basic Financial Statements. 11 i ORANGE COUNTY SANITATION DISTRICT Statement of Cash Flows For the Year Ended June 30,2005 (With Comparative Data for the Year Ended June 30,2004) 2005 2004 Cash flows from operating activities: 6r Receipts from customers and users $ 123,776,585 $ 100,701.615 Payments to employees (51.793.490) (47,971,535) Payments to suppliers (44,872,273) (45,282,279 Net cash provided by operations 27,110.822 7,447,804 ►� Cash flows from noncapital financing activities: Capital facilities capacity charges 8,868,048 9,353,899 Proceeds from property taxes 35,185,451 47,159,697 6W Capital grants to member agencies (1,969,190) (3,050,918) Net cash provided by noncapital financing activities 42,084,309 53,462.678 i Cash flows from capital and related financing activities: iw Additions to property,plant and equipment (187,877,990) (149,480,823) Disposal of property, plant,and equipment - 4.227,802 Interest paid (25,928,520) (16,763,529) Principal payments on certificates of participation (12,040,000) (11,610.000) Proceeds from certificates of participation issuance - 278,672,948 Certificates of participation issuance costs - (1,616,176) Proceeds from capital contributions 7,156,246 7,432,277 Net cash provided(used)by capital and related financing activities (218,690,264) 110,862,499 Cash flows from investing activities: Proceeds from the sale of investments 4,633,824,499 2,602,462,257 Purchases of investments (4,536,262,824) (2,695,596,858) Interest received 14,998,097 18,913,059 Net cash provided(used)by investing activities 112,559,772 (74,221,542) Net increase(decrease)in cash and cash equivalents (36,935,361) 97,551,439 Cash and cash equivalents, beginning of year 107,632,011 10,080,572 Cash and cash equivalents,end of year $ 70,696.650 $ 107,632,011 L Reconciliation of operating loss to net cash provided by operating activities: Operating loss $ (33.642,715) $ (39.194,447) Adjustments to reconcile operating loss to net cash provided by operations: Depreciation and amortization 53,211,397 46,118.047 Bad debt expense 127,085 - Other non-operating revenues and expenses 1,013,724 993,334 (Increase)/decrease in operating assets: Accounts receivable (1,822.857) (1,818,878) 6w Due from other governmental agencies 3,133.257 (734,409) Inventories (215,351) 270,296 Prepaid and other assets 63,657 204,474 Increasel(decrease)in operating liabilities: Accounts payable 386,503 (2,115,075) Accrued expenses 1,368,039 597.223 Retentions payable 2,439,185 1,915,491 low, Arbitrage payable 315,390 235,890 Compensated absences 905,049 695,112 Claims and judgments (171,541) 280,746 Net cash provided by operations $ 27,110,822 $ 7,447,804 L.r Noncash Activities: Unrealized gain(loss)on the fair value of investments $ 562,322 $ (11,496,334) Net disposal of assets with no cash effect (1,616,697) (1,137,115) Certificates of participation issuance cost-underwriter's fee - (829,244) Certificates of participation original issue discount - (497,808) See Accompanying Notes to Basic Financial Statements. 12 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 (1) Summary of Significant Accountinq Policies Reporting Entity The Orange County Sanitation District(OCSD)is a public agency which owns and operates certain wastewater facilities in order to provide regional wastewater collection, treatment, and disposal services to approximately 2.5 million people in the northern and central portion of the County of Orange, California. OCSD is managed by an administrative organization comprised of directors appointed by the agencies and cities which are serviced by OCSD. OCSD'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 OCSD'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 OCSD, including all assets, liabilities, and equity. bow Effective July 1, 1998, the organization became known as the Orange County Sanitation District. The boundaries of one of the previous districts, now known as Revenue Area No. 14, has been maintained separately because their use of OCSD's collection, treatment, and disposal system is uni funded by the Irvine Ranch Water District. The boundaries of the other eight districts have been consolidated and are collectively referred to as the Consolidated Revenue Area. OCSD utilizes joint operating and capital outlay accounts to pay joint treatment, disposal, and construction costs. These joint costs are allocated to each revenue area based on gallons of sewage flow. The tM supplemental schedules and statements show internal segregations and are not intended to represent separate funds for presentation as major or non-major funds in the basic financial statements. LZJ The accompanying financial statements present OCSD 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 OCSD's operations. OCSD is considered to be financially accountable for the Corporation which is governed by a board comprised entirely of OCSD'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, 2005, other than principal and interest payments on outstanding certificates of participation(see Note 4). OCSD is independent of and overlaps other formal political jurisdictions. There are many governmental entities, including the County of Orange, that operate within OCSD'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 MW (GASB)Statement 14. Measurement Focus and Basis of Accounting OCSD 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 services 13 (Continued) ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 to the general public on a continuing basis be financed or recovered primarily through user 6W charges. Basis of accounting refers to when revenues and expenses are recognized in the accounts and 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. OCSD 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, OCSD staff prepares an annual operating adopted by the Board of y g plan which is 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. �..� 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 6W unrealized changes in fair value. Accounts Receivable Accounts receivable is shown net of the allowance for uncollectible receivables which was 6' $215,700 at June 30, 2005. Any unbilled sewer service receivables are recorded at year-end. Inventory L, Inventory is stated at cost,which approximates market, on a weighted-average basis. i Capital Assets 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. r, Capital assets of property, plant, and equipment are defined as assets with an initial, individual cost — of more than $5,000 and an estimated useful life of at least 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. During the fiscal year ended June 30, 2005, net interest costs of $8.56 million were capitalized. 14 (Continued) oft ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements ® June 30, 2005 ,w Depreciation of plant and equipment is provided for over the estimated useful lives of the assets using the straight-line method. OCSD generally follows the guidelines of estimated useful 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 lives for 'n' 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 Irfe 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 -d Certain assets are classed 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 OCSD's policy to use restricted resources first, then unrestricted resources as they are needed. Compensated Absences OCSD'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 "d earned by eligible employees. In determining the estimated sick leave liability at June 30 of each year, OCSD assumes that all employees' 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 a, the liability is based on historical trends. Claims and Judgments ,M OCSD 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 is based on historical trends. Property Taxes The County is permitted by State law (Proposition 13) to levy taxes at one percent of full market value (at time of purchase) and can increase the assessed value no more than two percent per year. OCSD 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. 15 (Continued) ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 The County bills and collects the property taxes and remits them to OCSD 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. Capital Facilities Capacity Charges Capital facilities capacity charges represent fees received from developers and residents to join 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- upon share of additions to capital assets. Operating and Non-operating Revenues and Expenses Operating revenues and expenses result from collecting, treating, and disposing of wastewater and inspection and permitting services. OCSD's operating revenues consist of charges to customers for the services provided. Operating expenses include the cost of providing these 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. Construction Commitments OCSD has active construction projects to add additional capacity, improve treatment, or replace/rehabilitate existing assets. At June 30, 2005, the outstanding commitments with contractors totaled $133,193,000. Lai Self-Insurance Plans For the year ended June 30, 2005, OCSD was self-insured for portions of workers' compensation, property damage, and general liability. The self-insurance portion of workers' compensation is `' $500,000 per person per occurrence with outside excess insurance coverage to $50 million. The self-insured portion for property damage covering fire and other perils is $25,000 per occurrence with outside excess insurance coverage to $750 million. The self-insured portion for property L, damage covering flood is $100,000 per occurrence with outside excess insurance coverage to $300 million. OCSD is self-insured for all property damage from the perils of earthquakes. OCSD 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. OCSD is substantially self-insured for general liability coverage with a $250,000 self-insured deductible, but has excess general liability coverage to $25 million per occurrence. There were no significant changes in insurance coverage during the fiscal year ended June 30, 2005. During the past three fiscal years there have been no settlements in excess of covered amounts. — Claims against OCSD 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. OCSD management believes that there are no unrecorded claims as of June 30, 2005 that would materially affect the financial position of OCSD. w 16 (Continued) ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 Deferred Compensation Plan OCSD offers its employees a deferred compensation plan established in accordance with Internal Revenue Code Section 457. The plan permits all employees of OCSD to defer a portion of their m 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 OCSD's general creditors, in accordance with GASB Statement 32, the plan's assets and liabilities are not included within OCSD's financial statements. (2) Cash and Investments Cash and investments as of June 30, 2005 are classified within the accompanying Statement of Net Assets as follows: Statement of Net Assets: Current, Unrestricted: Cash and cash equivalents $ 40,667,279 Investments 367,715,247 Subtotal-current, unrestricted 408,382,526 Restricted: Cash and cash equivalents 30,029,371 Investments 33,933,427 Subtotal-restricted 63,962,798 Total cash and cash equivalents and investments $472,345,324 Cash and investments consist of the following as of June 30, 2005: Cash on hand $ 4,000 Deposits with financial institutions (48,479) LW Investments 408,427,005 Monies held by trustees: Investments $29,661,048 i, Investment contracts 33,933,427 Cash deposits 368,323 Subtotal-monies held by trustees 63,962,798 MW Grand total cash and investments $472,345,324 Investments Authorized by the California Government Code and OCSD's Investment Policy am The table below identifies the investment types that are authorized by the California Government Code and OCSD's investment policy. The table also identifies certain provisions of either the California Government Code or OCSD's investment policy (whichever is more restrictive) that NO address interest rate risk, credit risk, and concentration of credit risk. A separate table addresses investments of debt proceeds that are held by trustees. Those investments are governed by the provisions of the debt agreements rather than the general "° provisions of the California Government Code or OCSD's investment policy. No 17 (Continued) MW w ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 Authorized Maximum by OCSD's Maximum Investment Investment Type-Authorized by the Investment Maximum Percentage in a Single - California Government Code Policy? Maturity(IM) of Portfolio(+) Issuer o) Local Agency Bonds Yes 5 years None None ` U.S.Treasury Obligations Yes 5 years None None California State Treasury Obligations Yes 5 years None None U.S.Agency Securities Yes 5 years None None Banker's Acceptances Yes 180 days 40% 30% Commercial Paper Yes 270 days/31 days 15%/30% 10% Negotiable Certificates of Deposit Yes 5 years 30% None Repurchase Agreements Yes 1 year None None Reverse Repurchase Agreements Yes 90 days(2) 5%(2) None Corporate Medium-Term Notes Yes 5 years 30% None Mutual Funds Yes N/A 15%(2) 10% Money Market Mutual Funds Yes N/A 15%(2) None Mortgage Pass-Through Securities/CMO Yes 5 years 20% None County Investment Pools Yes N/A None None Local Agency Investment Fund(LAIF) Yes N/A None None Notes (1)Restrictions are in accordance with the California Government Code unless indicated otherwise. (2)The restriction is in accordance with OCSD's Investment Policy which is more restrictive than the California Government Code. 3)As allowed by California Government Code Section 53601, the Board of Directors has adopted a policy of no maximum maturity for iaw investments purchased by OCSD's external money manager for the long-term investment portfolio. However,the duration of the long- term investment portfolio can never exceed 60 months. Investments purchased for the short-term investment portfolio are subject to the maturity restrictions noted in this table. Investments Authorized by Debt Agreements The investment of debt proceeds held by trustees is governed by provisions of the debt agreements, rather than the general provisions of the California Government Code on OCSD's _ investment policy. The table below identifies the investment types that are authorized for investments held by OCSD's trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk,credit risk, and concentration of credit risk. Maximum Maximum Investment Maximum Percentage in a Single — Investment Type-Authorized by Trust Agreements Maturity of Portfolio Issuer IOU State and Local Agency Bonds 5 years None None U.S. Treasury Obligations 5 years None None U.S.Agency Securities 5 years None None Banker's Acceptances 180 days 40% 10% �+ Commercial Paper 270 days/31 days 15%/30% 10% Negotiable Certificates of Deposit 5 years 30% 10% Repurchase Agreements 1 year None None Corporate Medium-Term Notes 5 years 30% None Mutual Funds NIA 20% 10% _ Money Market Mutual Funds N/A 20% None Local Agency Investment Fund(LAIF) N/A None None , Guaranteed Investment Contracts N/A None None 18 (Continued) MW ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements 'm June 30, 2005 ,d Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer an investment has before maturity, the greater the eft sensitivity of its fair value to changes in market interest rates. One of the ways that OCSD manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time, as necessary to provide the cash flow and w liquidity needed for operations. OCSD monitors the interest rate risk inherent in its managed portfolio by measuring the modified duration of its portfolio. The duration of monies held for shorter term purposes is recommended by OCSD's Treasurer and is based on OCSD's cash flow requirements in meeting current operating and capital needs. The average duration of monies invested for shorter term purposes may never exceed 180 days. The duration of monies held for longer term purposes is recommended annually by OCSD's Treasurer and is based on OCSD's five-year cash flow forecast. The average duration may not exceed 120 percent nor be less than 80 percent of the recommended duration. The average duration of monies invested for longer term purposes may never exceed 60 months. Following is a table which summarizes OCSD's investments by purpose with the modified duration. Modified Modified Duration Duration Investment Type Fair Value (in years) in months Short-Term Portfolio: U.S. Treasury Bills $ 10,875,701 0.14433 1.76 U.S. Agency Securities 20,596,042 0.16540 2.01 Commercial Paper 2,778,595 0.04650 0.57 Corporate Medium-Term Notes 3,500,000 0.10700 1.30 .w Money Market Mutual Funds 1,110,656 0.08300 1.01 Short-term portfolio subtotal $ 38,860,994 0.13941 1.70 Long-Term Portfolio: U.S. Treasury Notes $ 164,449,507 1.90976 23.24 U.S.Treasury Inflation-Protection Bonds 27,113,550 4.57280 55.64 U.S. Agency Securities 78,297,464 2.88584 35.11 "d Negotiable Certificates of Deposit 9,995,500 0.01300 0.16 Corporate Medium-Term Notes 50,707,069 1.97650 24.05 Money Market Mutual Funds 1,486,740 0.08300 1.01 Mortgage Pass-Through Securities/CMO 7,251,568 4.44383 54.07 Long-term portfolio subtotal $339,301,398 2.73558 33.28 19 (Continued) 4.i ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements ;,1e June 30, 2005 OCSD monitors the interest rate risk inherent in its other investments using specific identification of the investments. Following is a table of these investments as of fiscal year end. Fair Value Maturities Investments held by fiscal agents: Money Market Mutual Funds: US Bank $ 358,440 not available Fidelity Treasury Class III Fund 696 990,486 60 days or less First American Treasury Obligation 158,227 90 days or less Blackrock Institutional Funds 28,153,895 90 days or less Guaranteed Investment Agreements: AIG - 1992 COP 12,417,000 August 1, 2013 AIG- 1993 COP 4,205,000 July 14, 2016 Bayerische Landesbank Girozentrale-2000 COP 17,311,427 August 1, 2016 Local Agency Investment Fund (LAIF) 30,264,613 165 day average Fair Value of Other Investments $93,859,088 - Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations OCSD's investments (including investments held by trustees) include the following investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above): • Mortgage-backed securities: These securities are subject to early payment in a period of jam, declining interest rates. The resulting reduction in expected total cash flows affects the fair value of these securities, making them highly sensitive to change in interest rates. At fiscal year end, the fair value of investments in mortgage-backed securities totaled $68,382,499. • Treasury inflation-protection bonds (TIPs): The U.S.Treasury Department pays a fixed, semi- _ annual coupon on these investments that is based on a Treasury auction plus an adjustment for inflation, making the fair value of these securities highly sensitive to changes in interest rates. At fiscal year end, the fair value of investments in TIPs totaled $27,113,550. Disclosures Relating to Credit Risk W Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally — recognized statistical rating organization. The following table presents the minimum rating as required by the California Government Code, OCSD's investment policy, or debt agreements, and the actual rating as of year-end for each investment type: w i 20 (Continued) ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements m June 30, 2005 Investment Type and the Lowest Rating Reported at Year End Fair Value Investments with no legal minimum rating&no required disclosure: U.S.Treasury Obligations $202,438,757 =d U.S.Agency Securities-GNMA 3,590,054 Subtotal $206,028,811 Investments with no legal minimum rating: MW U.S.Agency Securities(other than GNMA): Rating of A-1+(Standard& Poor's) 20,596,041 Rating of AAA(Standard&Poor's) 74,690,864 Not rated at fiscal year end 16,547 Negotiable Certificates of Deposit: Not rated at fiscal year end 9,995,500 Local Agency Investment Fund(LAIF): Not rated at fiscal year end 30,264,613 Investments with fiscal agents-Guaranteed Investment Contracts: Not rated at fiscal year end 33,933,427 Subtotal 169,496,992 Investments with a legal minimum rating(or its equivalent)of A: Commercial Paper: Rating of P-1 (Moody) 2,778,595 ..� Corporate Medium-Term Notes: Rating of A(Standard& Poor's) 8,575,060 Rating of A-(Standard&Poor's)' 470,000 Rating of A+(Standard&Poor's) 21,875,426 Rating of A2(Moody) 5,438,490 Rating of A3(Moody) 1,399,776 Rating of AA-(Standard&Poor's) 1,849,325 �^ Rating of AA+(Standard&Poor's) 826,200 Rating of AAA(Standard& Poor's) 8,500,655 Rating of BBB+(Standard&Poor's)" 1,772,138 Rating of MIG1 (Moody) 3,500,000 Money Market Mutual Funds: Rating of AAA(Standard& Poor's) 2,597,396 Invested with fiscal agents: ++ Rating of Aaa(Moody) 28,312,122 Rating of AAA(Moody) 990,486 Not rated at fiscal year end 358,440 tow Subtotal 89,244,109 Investments with a legal minimum rating(or its equivalent)of AA: Mortgage Pass-Through Securities/CMO: Rating of AAA(Standard&Poor's) 5,528,077 no Rating of AAA(Moody) 1,723,491 Subtotal 7,251,568 Total $472,021,480 °11 'Investment was in compliance with legal requirements at the time it was purchased. ..r 21 (Continued) i ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 1 Concentration of Credit Risk Limitations on the amount that OCSD is allowed to invest in any one issuer have been identified previously in the section, "Investments Authorized by the California Government Code and OCSD's Investment Policy" and in the section, "Investments Authorized by Debt Agreements." OCSD 4 follows whichever guideline is the most restrictive. As of fiscal year end, OCSD has investments in FNMA (U.S. Agency Securities) totaling $70,756,054 which represents more than 5 percent of OCSD's investments. Custodial Credit Risk Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and OCSD's investment policy contain legal requirements that limit the exposure to custodial credit risk for deposits as follows: a financial institution must secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150%of the secured public deposits. _ I Custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and OCSD's investment policy do not contain legal or policy requirements that � would limit the exposure to custodial credit risk for investments. As of June 30, 2005, OCSD's investments in the following investment types were held by the fiscal agent's safekeeping department of the broker-dealer(counterparty)used to buy the securities. Money market mutual funds $ 29,661,048 — Guaranteed investment contracts 33,933,427 Total $63,599A,475 Investment in State Investment Pool OCSD 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 OCSD's investment in this pool is reported in the accompanying financial statements at amounts based upon OCSD's pro-rata share of the fair value provided by 6.' LAW for the entire LAW 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. Included in LAIF's investment portfolio are mortgage-backed securities, other asset-backed securities, loans to certain state funds, securities with interest rates that vary according to changes in rates greater than a one-for-one basis, and structured notes. tow i.� 22 (Continued) I.r Ma ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements em June 30, 2005 W, (3) Capital Assets Capital asset activity for the year ended June 30, 2005 is as follows: VEW Balance at Balance at June 30,2004 Additions Deletions June 30,2005 Capital assets not depreciated: MW Cost: Land $ 11,446,087 $ 1,594,941 $ (19,548) $ 13,021,480 Construction in progress 359,103,870 196.981,765 (68,201,058) 487,884,577 Total nondepreciable assets 370,549,957 198,576,706 (68.220,606) 500.906,057 Depreciable capital assets: Cost: Sewage collection facilities 425,430,380 13,962,586 (542,721) 438,850,245 Sewage treatment facilities 657,941,648 17,708,203 (5,977,483) 669,672,368 Effluent disposal facilities 87,110,617 10,576,886 (672,683) 97,014,820 Solids disposal facilities 3,051,243 73,244 (49,993) 3,074,494 General and administrative facilities 125,801,901 9,224,657 (8,528,114) 126,498,444 Subtotal 1,299,335,789 51,545,576 (15,770,994) 1,335,110,371 Accumulated depreciation: Sewage collection facilities (169,675,624) (9,998,139) 357,220 (179.316.543) Sewage treatment facilities (339,962,746) (26,460,764) 2,392,365 (364,031,145) Effluent disposal facilities (37,021,494) (3,076,572) 87,056 (40,011,010) �.0 Solids disposal facilities (3,048,536) (55.880) 31,547 (3,072,869) General and administrative facilities (74,659,672) (10,750,136) 9,756,750 (75,653,058) Subtotal (624,368,072) (50,341,491) 12,624.938 662,084,625 �+ Net depreciable assets 674,967,717 1,204,085 (3,146,056) 673,025,746 Net capital assets $ 1,045,517,674 $ 199,780,791 $ (71,366,662) $ 1,173,931,803 ..d (4) Long-Term Liabilities The following is a summary of the changes in long-term liabilities for the year ended June 30, 2005: Certificates Arbitrage Compensated Claims and of Payable Absences Judgments Participation Totals Balance,July 1 $ 996,610 $ 4,720,697 $ 1,601,749 $ 633,365,000 $ 640,684,056 Additions 321,056 5,252,151 73,069 - 5,646,276 Deletions (5,666) (4,347,102) (244,610) (12,040,000) (16,637,378) Balance,June 30 1,312,000 5,625,746 1,430,208 621,325,000 629,692,954 Due within one year 1,005,700 4,347,102 434,150 12,755,000 18,541,952 Unamortized discount - - - 804,855 804,855 Unamortized deferred amount on refundings - - - 1,053,552 1,053,552 Long-term amount $ 306,300 $ 1,278,644 $ 996,058 $ 606,711,593 $ 609,292,595 +.a 23 (Continued) .,r ORANGE COUNTY SANITATION DISTRICT y Notes to Basic Financial Statements June 30, 2005 Arbitrage Payable The Tax Reform Act of 1986 (the Act) requires OCSD to calculate and remit rebatable arbitrage earnings to the Internal Revenue Service. Certain of OCSD's debt and interest earnings on the proceeds thereof are subject to the requirements of the Act. OCSD's liability at June 30, 2005 is $1,312,000 for future years' remittances. Compensated Absences OCSD's policies related to compensated absences are described in Note 1. OCSD's liability at June 30, 2005 is $5,625,746 with an estimated $4,347,102 to be paid or used within the next fiscal L year. Claims and Judgments Payable OCSD is self-insured in a number of areas as described in Note 1. The following is a summary of the claims and judgments payable as of June 30, 2005 and 2004: -. 2004-05 2003-04 L Claims and judgments payable at July 1 $ 1,601,749 $ 1,321,003 Claims incurred during the fiscal year 21,265 887,496 Adjustments to the prior year 51,804 - w Payments on claims during the fiscal year (2",610) 606,750 Claims and judgments payable at June 30 1,430,208 1,601,749 Less: current portion 434,150) 471,850 6W Total long-term claims and judgments payable $ 996,058 $1,129,899 Certificates of Participation OCSD 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 OCSD. Certificates of participation at June 30, 2005 are summarized as follows: Amount t., 1992 refunding certificates of participation $ 100,275,000 1993 refunding certificates of participation 42,050,000 2000 refunding certificates of participation 199,000,000 61ki 2003 certificates of participation 280,000,000 Total certificates of participation payable $ 621,325,000 Refunded Certificates of Participation 1986 Certificates of Participation 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 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. W 24 (Continued) ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 ow 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. 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: • 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 r,► 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 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 r 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, ..r 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. Outstanding Certificates of Participation December 1992 Refunding Certificates of Participation On December 3, 1992, OCSD completed the sale of$160,600,000 of refunding certificates of participation. The certificates were issued to refund the remaining outstanding principal "r 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, 2005 was 1.26 percent. On October 1, 1992, OCSD and a brokerage company entered into an interest rate exchange swap agreement (Note 5). Annual principal payments are due on 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, 2005 reserve of $12,417,038 is held by the trustee, US Bank, and meets the reserve requirement.Additionally,AMBAC provides municipal bond insurance for the certificates. 25 (Continued) ORANGE COUNTY SANITATION DISTRICT } Notes to Basic Financial Statements June 30, 2005 i.i September 1993 Refunding Certificates of Participation On September 2, 1993, OCSD 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, 2005, was 1.75 percent. On September 1, 1993, OCSD and a brokerage company entered into an interest rate exchange swap agreement(Note 5). Annual principal payments are due on 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, 2005 reserve of $4,779,285 is held by the trustee, JPMorgan, and meets the reserve requirement. August 2000 Refunding Certificates of Participation On August 31, 2000, OCSD 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 reimburse OCSD 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, 2005 was 1.75 percent. Annual principal payments are due on 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, 2005 reserve of $17,419,913 is held by US Bank, the trustee, and meets the reserve requirement. August 2003 Certificates of Participation On August 26, 2003, OCSD completed the sale of$280,000,000 of certificates of participation. The certificates were issued to finance and to reimburse OCSD for the acquisition, construction, and installation of additional improvements made to the wastewater system. The interest rate on the certificates is fixed and ranges from 5.00 percent to 5.25 percent. Annual principal payments are due on February 1, beginning February 1, 2021. The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2005 reserve of$28,153,415 is held by Union Bank, the trustee, and meets the reserve requirement. low 26 (Continued) ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 ,.„ Annual Amortization Requirements The annual requirements to amortize all debt related to certificates of participation as of June 30, 2005, are as follows: low Estimated Year Interest Rate ow Ending Estimated Swaps, Net June 30, Principal Interest (See Note 5) Total 2006 $ 12,755,000 $ 21,473,175 $ 4,028,034 $ 38,256,209 2007 13,465,000 21,178,246 3,655,528 38,298,774 2008 14,265,000 20,865,883 3,258,947 38,389,830 2009 15,060,000 20,536,020 2,789,190 38,385,210 2010 16,110,000 20,183,525 2,283,793 38,577,318 2011-2015 106,970,000 94,267,172 5,695,165 206,932,337 2016-2020 119,800,000 81,430,483 249,570 201,480,053 2021-2025 101,465,000 65,627,198 - 167,092,198 %0+ 2026-2030 111,255,000 42,164,628 - 153,419,628 2031-2033 110,180,000 10,073,168 - 120,253,168 Total $ 621,325,000 $ 397,799,498 $21,960,227 $ 1,041,084,725 r (5) Interest Rate Swans on Certificates of Participation As indicated in Note 4, OCSD 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 OCSD's borrowing costs when compared against fixed-rate bonds at the time of issuance. The swaps effectively change OCSD'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, OCSD and a brokerage company entered into an interest rate exchange swap agreement pursuant to which OCSD will pay a fixed interest rate of 5.55 percent. OCSD 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 agreement is accounted for as a hedge, and the associated interest rate differential to be paid or received is 'r 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 $10.92 million as of June 30, 2005. 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. 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. 27 (Continued) w ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 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, 2005, OCSD 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, OCSD 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 AA by Standard & Poor's and Aa2 by Moody's Investors Service as of June 30, 2005. 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 OCSD, the counterparty, and the Swap Insurer. The collateral would be held by a 4--1 third-party custodian. Basis Risk: The swap does not expose OCSD 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: OCSD 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 swap may be terminated by OCSD 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, OCSD and a brokerage company entered into an interest rate exchange swap agreement pursuant to which OCSD will pay a fixed interest rate of 4.56 percent. OCSD 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 $3.43 million as of June 30, 2005. 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. This method calculates the future net settlement payments required by the swap, assuming that Y 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, 2005, OCSD 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, OCSD would be exposed to credit risk in the amount of the swap's fair value. The swap's 28 (Continued) No ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 00 counterparty, Societe Generale Bank, was rated AA- by Standard & Poor's and Aa2 by Moody's Investors Service as of June 30, 2005. 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 Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Government National Mortgage ,r 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 OCSD, the counterparty, and the Swap Insurer. The collateral would be held by a third-party custodian. Basis Risk: The swap does not expose OCSD 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: OCSD 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 too and the unpaid amounts awed less the unpaid amounts due from the non-defaulting party. The swap may be terminated by OCSD 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. (6) Net Assets The difference between assets and liabilities is reported as net assets. Net assets are classed as restricted, unrestricted, or invested in capital assets, net of related debt. Net assets at June 30, 2005 consisted of the following: no June 30, 2005 Invested in capital assets, net of related debt: Capital assets, net of accumulated depreciation $ 1,173,931,803 Outstanding debt issued to acquire capital assets, net of unamortized bond discount and deferred amount on refundings (619,466,593) Unamortized deferred charges of debt issued to acquire capital assets 3,926,011 Subtotal 558,391,221 Restricted by debt covenants for debt service on MW certificates of participation 64,513,858 Unrestricted 418,341,801 Total Net Assets $ 1,041,246,880 29 (Continued) w ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 (7) Pension Plan OCSD 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. Benefits w All OCSD 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"as defined in Section 31462 of the Retirement Law of 1937, the total years of service under OCERS, and the employee's 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. Id Tier I and Tier II covered employees are required to contribute 3.94%-7.72% and 5.44%-10.65%, respectively, of their annual compensation to OCERS. OCSD 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 years ended June 30, 2005, 2004, and 2003, the required contribution equaled the contribution actually made.The following table provides salary and contributions requirements for the current and two prior L"' fiscal years. For the Fiscal Year Ending June 30, 2005 June 30,2004 June 30, 2003 Total Payroll Costs $ 49,332,630 $ 45,738,510 $ 38,514,484 Payroll Costs of Employees Covered by OCERS 44,669,861 40,094,512 35,341,483 Contributions Requirements: Contributed by Employees 1,250,374 1,092,292 1,072,477 Contributed by the District on Behalf of Employees 1,996,310 1,777,201 1,549,829 6,j Total Employee Required Contribution 3,246,684 2,869,493 2,622,306 District Required Contribution 5,524,673 3,668,650 1,943,056 Total Contribution $ 8,771,357 $ 6,538,143 $ 4,565,362 Employee Required Contribution as a Percent of -- Covered Payroll 7.27% 7.16% 7.42% District Required Contribution as a Percent of Covered Payroll 12.37% 9.15% 5.50% Total Contribution as a Percent of all Participating Wj Entities'Contributions 4.78% 3.79% 4.11% 30 (Continued) ^ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 .d (8)Transactions with Irvine Ranch Water District—Revenue Area No. 14 Formation of Revenue Area No. 14& Excess Purchase Price Over Book Value of Acquired Assets On July 1, 1985, Revenue Area No. 14 was formed as an independent special district as a result of a negotiated agreement between OCSD and Irvine Ranch Water District (IRWD). At the time of Revenue Area 14's creation, OCSD consisted of eight independent special districts (see Note 1 — Reporting Entity). The eight existing districts sold a portion of the joint treatment facilities and land to the newly created district and recorded capacity rights revenue at the time of the sale. In accordance with the negotiated agreement between OCSD and IRWD, IRWD paid OCSD $34,532,000 for an initial 15,000,000 gallons per day capacity in OCSD's joint treatment facilities (with an ultimate collection capacity of 32,000,000 gallons per day)and for a pro-rata interest in real property(based on flow of 32,000,000 gallons per day). The book value of the assets acquired was determined to be $14,553,000 as of June 30, 1986; these assets were recorded at book value in Revenue Area 14. The excess of the purchase price over the assets'book value was$19,979,000 and was recorded as an intangible asset in Revenue Area No. 14. The excess of the purchase price over the assets' book value is being amortized over the remainder of the useful lives of the original assets acquired. As of June 30, 2005, the unamortized amount of the excess of purchase price over the assets'book value was$7,482,529. Annual Transactions 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 OCSD's joint capital outlay revolving fund budget requirements and certain capital improvements during the term of the +� agreement, which contribution amounted to$9,535,115 in 2005. (9)Commitments �tl Groundwater Replenishment System: In March 2001, OCSD entered into an agreement with the Orange County Water District; California, to design and construct Phase 1 of the "Groundwater Replenishment System"(GWRS). OCSD has no explicit, measurable equity interest in GWRS. No ..+ separate financial statements are prepared for 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 barrier. The GWRS is planned for three phases, Phase 1 will produce approximately 72,000 acre-feet per year of recycled water by August 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 OCSD's ocean discharge. As of June 30, 2005, the total estimated cost of GWRS Phase 1 was $503.32 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. OCSD's estimated gross and net share is$251.66 million and$205.41 million, respectively. Costs incurred by OCSD through June 30, 2005 total $67.11 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 OCSD's policy to treat all wastewater discharges into the ocean to secondary treatment standards thereby providing for continued public safety, marine ecosystem protection, 31 (Continued) ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2005 and water reclamation opportunities. To implement this policy, OCSD 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. bo OCSD estimates that it will take a total of approximately eleven years and additional capital improvement costs of$271 million to reach secondary treatment discharge standards. Secondary - treatment discharge standards are scheduled to be reached in 2013. In the interim, OCSD 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 50 percent secondary portion will increase incrementally as operations change and new facilities are constructed and placed in service. , i t.� 32 am W" ad �.r �i wo ORANGE COUNTY SANITATION DISTRICT SUPPLEMENTARY INFORMATION uw ON 33 ORANGE COUNTY SANITATION DISTRICT Combining Statement of Net Assets _ June 30,2005 With Comparative Totals for June 30,2004 i Revenue Consolidated Totals r Area No. 14 Revenue Area Eliminations 2005 2004 Current assets: Cash and cash equivalents $ - $ 40,667.279 $ - $ 40,667,279 $ 101,667,204 Investments - 367,715,247 - 367,715,247 416,653,124 Due from other Revenue Area - 4,618,455 (4,618,455) - - Accounts receivable,net of allowance for uncollectibles 140,188 11,021,149 - 11,161,337 9,465,565 Accrued interest receivable 216,984 3,616,648 - 3,833,632 4,005,023 Due from other governmental agencies 3,429,419 - - 3,429,419 4,182,762 Connection fees receivable - 1,507,780 - 1.507,780 561,697 Property tax receivable 43,394 1,608,087 - 1,651,481 1,073,114 Inventories 256.902 4,207,145 - 4,464,047 4,338,777 Prepaid and other assets 34,445 574,126 - 608,571 672,228 Total current assets 4.121,332 435,535,916 (4,618.455) 435,038,793 542,619,494 I� Noncurrent assets: Restricted: Cash and cash equivalents - 30,029,371 - 30,029,371 5,964,807 Investments - 33,933,427 - 33,933,427 81,994,903 Accrued interest receivable - 551,060 - 551.060 559,270 Unrestricted: Non-depreciable capital assets 24,864,452 476,041,605 - 500,906,057 370,549,957 Depreciable capital assets,net of 6W accumulated depreciation 44,503,797 628,521,949 - 673,025,746 674,967,717 Deferred charges - 3,926,011 - 3,926,011 4,106,715 Excess purchase price over book value on acquired assets,net 7,482,529 - - 7,482,529 8,140,238 Other assets,net 805.329 19,144,054 - 19,949,383 6.096,856 Total noncurrent assets 77,656,107 1,192,147,477 - 1,269,803,584 1,152,380,463 I� Total assets 81,777,439 1,627,683,393 (4,618,455) 1,704,842,377 1,694,999,957 Current liabilities: Accounts payable 694,588 13,606,417 - 14,301,005 13,914,502 tn.+ Accrued expenses 359,956 6,427,649 - 6,787.605 6.076,755 Due to other Revenue Area 4,618,455 - (4,618,455) - - Retentions payable 319,845 5.463.260 - 5,783,105 3.343,920 Interest payable - 8.889,235 - 8,889,235 8,855,862 W Current portion of long-term obligations 270,619 18.271,333 - 18,541,952 16,565,607 Total current liabilities 6,263,463 52,657.894 (4,618,455) 54,302,902 48,756,646 Noncurrent liabilities: Noncurrent portion of long-term obligations 128.748 609,163.847 - 609,292,595 622,111,252 Total liabilities 6,392,211 661,821,741 (4,618,455) 663,595,497 670,867,898 Net assets: Invested in capital assets, net of related debt 69.368,249 469,022,972 - 558,391,221 418,266,586 Restricted for debt service - 64,513,858 - 64,513,858 88,518,980 Unrestricted 6.016,979 412,324,822 - 418,341,801 517,346,493 a� Total net assets $75,385,228 $ 965,861,652 $ - $1,041,246,880 $1,024,132,059 i� 34 - W wo ORANGE COUNTY SANITATION DISTRICT Combining Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended June 30, 2005 two With Comparative Totals for June 30, 2004 1w Revenue Consolidated Totals Area No. 14 Revenue Area 2005 2004 Operating revenues: ftw Service charges $ 5,624,182 $ 115,292,489 $ 120,916,671 $ 101,994.667 Permit and inspection fees 9,634 488,757 498,391 332,329 .d Total operating revenues 5.633,816 115,781,246 121,415,062 102,326,996 Operating expenses other than depreciation and amortization: low Salaries and benefits 2,768,764 50,279,273 53,048,037 48,711,494 Utilities 395,835 6,077,416 6,473,251 5,408,223 Supplies,repairs and maintenance 705,766 17,584,147 18,289,913 16,954,161 Contractual services 890,712 17,682,496 18,573,208 18,498,097 Directors'fees 14,581 116,659 131,240 141,440 Meetings and training 52,669 871,332 924,001 979,802 Other 229,365 4,177,365 4,406,730 4,710.179 Total operating expenses other than depreciation and amortization 5,057,692 96,788,688 101,846,380 95,403,396 �•+ Operating income(loss)before depreciation and amortization 576,124 18.992,558 19,568,682 6,923,600 Depreciation and amortization 5,744,262 46,809,426 52,553,688 45,460,338 Amortization of excess purchase price over book value on acquired assets 657,709 - 657,709 657,709 wa Operating loss (5,825,847) (27,816,868) (33,642,715) (39,194,447) Non-operating revenues: Property taxes 915,191 34,848.627 35,763,818 46,943,327 Investment and interest income(loss) (1,016) 15,118,962 15,117,946 6,785,653 Capital facilities capacity charges 339,762 9,474,369 9,814,131 8,997,737 Other 31,881 1,019,242 1,051,123 927,906 Total non-operating revenues 1,285,818 60,461,200 61,747,018 63,654,623 Non-operating expenses: Interest - 17,469,464 17,469,464 15,524,457 Capital grants to member agencies - 1,969,190 1,969,190 3,050,918 Other 90,359 996,629 1,086,988 1,344,842 Total non-operating expenses 90,359 20,435,283 20,525,642 19,920,217 Income(loss)before capital contributions (4,630.388) 12,209,049 7,578,661 4,539,959 Capital contributions from other agencies 9,535,115 1,045 9,536,160 9,244,805 Change in net assets 4,904,727 12,210,094 17,114,821 13,784,764 Total net assets-beginning 70,480,501 953,651,558 1,024,132,059 1,010,347,295 Total net assets-ending $75,385,228 $965,861,652 $1,041,246,880 $1,024,132,059 35 ORANGE COUNTY SANITATION DISTRICT WWI Combining Statement of Cash Flows _ For the Year Ended June 30,2005 With Comparative Totals for June 30,2004 Revenue Consolidated Totals Area No.14 Revenue Area Eliminations 2005 2004 Cash flows from operating activities: Receipts from customers and users $12,428,958 $ 111,347,627 $ $ 123,776,585 $ 100,701,615 Payments to employees (2,655,277) (49,138,213) - (51,793.490) (47.971,535) Payments to suppliers (2,016,334) (42,855,939) - (44,872,273) (45,282,276) Net cash provided by operations 7,757,347 19,353,475 - 27,110,822 7,447,804 Cash flows from noncapital financing activities: - Capital facilities capacity charges 339,762 8,528,286 - 8,868,048 9,353,899 Proceeds from property taxes 871,797 34,313,654 - 35,185.451 47,159,697 Imi Grants to member agencies - (1,969,190) - (1,969,190) (3,050,918) Net cash provided by noncapital financing activities 1.211,559 40,872,750 42,084.309 53,462,678 Cash flows from capital and related financing activities: 6W Additions to property,plant and equipment (16.021,028) (179,845.488) 7,988,526 (187,877,990) (149,480.823) Disposal of property,plant,and equipment - 7,988,526 (7,988,526) - 4,227,802 Additions to other assets (86,131) - 86.131 - (3,416) Disposal of other assets - 86,131 (86,131) - 3,416 Interest paid - (25,928,520) - (25,928,520) (16,763,529) W Principal payments on certificates of participation - (12,040,000) - (12,040,000) (11,610,000) Proceeds from certificates of participation issuance - - - - 278.672,948 Certificates of participation issuance costs - - - - (1,616,176) Proceeds from capital contributions 7.155,201 1,045 - 7,156.246 7,432,277 Not cash provided(used)by capital and related financing activities (8,951,958) (209,738,306) (218,690.264) 110,862,499 Cash flows from investing activities: 4.d Proceeds from the sale of investments - 4,633,824.499 - 4,633.824,499 2.602,462,257 Purchases of investments - (4,536,262,824) - (4,536,262,824) (2,695,596,858) Interest received (16,948) 15,015,045 14,998,097 18,913,059 Net cash provided(used)by investing activities (16,948) 112,576,720 - 112,559,772 (74,221.542) Net increase(decrease)in cash and cash equivalents - (36,935,361) - (36,935,361) 97,551,439 Cash and cash equivalents,beginning of year - 107,632,011 - 107,632,011 10.080.572 Cash and cash equivalents,end of year $ - $ 70,696,650 $ - $ 70,696,650 $ 107,632,011 Reconciliation of operating loss to net cash provided by operating activities: Operating loss $ (5,825,847) $ (27,816,868) $ - $ (33,642,715) $ (39.194,447) Adjustments to reconcile operating loss to net cash provided by operations: - Depreciation and amortization 6,401.971 46,809,426 - 53,211,397 46,118.047 Bad debt expense 1,827 125,258 - 127,085 - LW Other non-operating revenues and expenses 29,764 983,960 - 1,013,724 993,334 (Increaseudecrease in operating assets: Due from other Revenue Area - (3,034,983) 3,034,983 - - Accounts receivable 595,021 (2,417,878) - (1,822,857) (1,818.878) Due from other governmental agencies 3.133,257 - - 3,133,257 (734,409) Inventories (39,784) (175,567) - (215,351) 270,296 _. Prepaid and other assets (700) 64,357 - 63,657 204,474 Increase/(decrease)in operating liabilities: Accounts payable 90.566 295,937 - 386,503 (2,115.075) Accrued expenses 53,189 1,304,850 - 1,368.039 597.223 Due to other Revenue Area 3,034,983 - (3,034.983) - - Retentions payable 191,120 2,248,065 - 2,439,185 1,915,491 Arbitrage payable - 315,390 - 315,390 235.890 Compensated absences 81,438 823.611 - 905,049 695,112 Claims and judgments 542 (172,083) (171,541) 280,746 Net cash provided by operations $ 7,757.347 $ 19.353.475 $ - $ 27,110,822 $ 7,447,804 W Noncash Activities: Unrealized gain(loss)on the fair value of investments $ - $ 562,32-2 $ - $ 562,322 $ (11,496,334)Net disposal of assets with no cash effect (83,075) (1,533,622) - (1,616,697) (1,137,115) Certificates of participation issuance cost-underwriter's fee - - - - (829,244) Certificates of participation original issue discount - - - - (497,808) Net transfer of assets between Revenue Areas (19,990) 19,990 36 ORANGE COUNTY SANITATION DISTRICT Schedule of Changes in Net Assets by Activity and Revenue Area For the Year Ended June 30, 2005 Revenue Consolidated Area No. 14 Revenue Area Totals Collection activities: Revenues and capital contributions: Permit and inspection fees $ 4,020 $ 395,198 $ 399,218 Other revenues 11,871 685,717 697,588 Other capital contributions 9,535,115 - 9,535,115 Total revenues and capital contributions 9,551,006 1,080,915 10,631,921 Expenses: Salaries and benefits 29,376 4,619,546 4,648,922 Utilities 56,898 428,081 484,979 Supplies, repairs and maintenance 50,742 6,666,320 6,717,062 Contractual services 68,620 3,980,014 4,048,634 Directors'fees 14,581 116,659 131,240 Meetings and training 884 8,205 9,089 Other expenses 180,637 2,855,710 3,036,347 Total expenses 401,738 18,674,535 19,076,273 Net collection activities 9,149,268 (17,593,620) (8,444,352) Treatment and disposal activities: Revenues: Service charges 288,490 4,808,497 5,096,987 Permit and inspection fees 5,614 93,559 99,173 Investment and interest income 176 2,938 3,114 Other revenues 20,010 333,525 353,535 Total revenues 314,290 5,238,519 5,552,809 Expenses: Salaries and benefits 2,739,388 45,659,727 48,399,115 Utilities 338,937 5,649,335 5,988,272 Supplies,repairs and maintenance 655,024 10,917,827 11,572,851 Contractual services 822,092 13,702,482 14,524,574 Meetings and training 51,785 863,127 914,912 Other expenses 139,087 2,318,284 2,457,371 Total expenses 4,746,313 79,110,782 83,857,095 w, Net treatment and disposal activities (4,432,023) (73,872,263) (78,304,286) Unallocated revenues(expenses): Service charges 5,335,692 110,483,992 115,819,684 Property taxes 915,191 34,848,627 35,763,818 Investment and interest income(loss) (1,192) 15,116,024 15,114,832 Capital facilities capacity charges 339,762 9,475,414 9,815,176 Interest expense - (17,469,464) (17,469,464) Capital grants to member agencies - (1,969,190) (1,969,190) Depreciation and amortization (6,401,971) (46,809,426) (53,211,397) _ Total unallocated revenues(expenses) 187,482 103,675,977 103,863,459 Total change in net assets $ 4,904,727 $ 12,210,094 $ 17,114,821 37 f� �.i 41 4� (THIS PAGE INTENTIONALLY LEFT'BLANK) �l �I �I 4 i 38 �i r .r r ow r Statistical Section IRW Mai upi %wi MW ww ORANGE COUNTY SANITATION DISTRICT STATISTICAL SECTION This part of the comprehensive annual financial report of the Orange County Sanitation District (OCSD) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about OCSD's overall financial health. Contents Pages Financial Position and Trends These schedules contain current and trend information to help the reader understand OCSD's financial position and how OCSD's financial performance and well-being have changed overtime. 40 -45 Revenue Capacity These schedules contain information to help the reader assess OCSD's most significant revenue sources, i.e., user service charges and property taxes. 46 -50 Debt Capacity These schedules present information to help the reader assess the affordability of OCSD's current levels of outstanding debt and OCSD's ability to issue additional debt in the future. 51 - 53 Operating Information These schedules contain data to help the reader understand how the information in ,..r OCSD's financial report relates to the services it provides and the activities it performs. 54 -56 Demographic and Miscellaneous Information These schedules offer demographic information to help the reader understand the environment within which OCSD's financial activities take place. 57-60 39 ORANGE COUNTY SANITATION DISTRICT Net Assets by Component (Dollars in Thousands) Last Five Fiscal Years (Note 1) $1,200,000 $1,000,000 $800,000 $600,000 ,.. $400,000 $200,000 $0 - - -- — 2000-01 2001-02 2002-03 2003-04 2004-05 .r ❑Unrestricted ■Restricted for Debt Service .. ❑Invested in Capital Assets, Net of Related Debt Invested in Capital Assets, Restricted .. Net of Related for Debt Fiscal Year Debt Service Unrestricted Total Net Assets 2000-01 $463,935 $36,468 $446,558 $ 946,961 2001-02 501,997 36,070 435,906 973,973 2002-03 578,647 35,182 396,518 1,010,347 2003-04 418,267 88,519 517,346 1,024,132 .r 2004-05 558,391 64,514 418,342 1,041,247 Note 1: Net Assets are calculated as a result of GASB 34, which was implemented in FY 2001-2, retrospective to 2000-01. Ten years data will eventually be presented as data is accumulated. Source: Orange County Sanitation District's Accounting Division. 40 ORANGE COUNTY SANITATION DISTRICT _ Revenues and Gross Capital Contributions by Source (Dollars in Thousands) Last Ten Fiscal Years " $141,576 $117,980 .r $94,384 $70,788 S47,192 S23,596 $0 - -- _ 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 O Operating Revenue ■Non-Operating Revenue ■Contributed Capital Capacity Operating Revenue Non-Operating Revenue Rights& Permit& Cap. Facilities Total Capital Fiscal Service Inspection Total Property Capacity Non- Contrib- Year Charges Fees Operating Taxes Interest Charges Other Operating utions 1995-96 S 71,362 S 120 $ 71,482 $ 29,285 $ 20,209 S 9,493 $ 4,224 $ 63,211 S 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 2003-04 101,995 332 102,327 46,943 6,786 8,998 928 63,655 9,245 2004-05 120,917 498 121,415 35,764 15,118 9,814 1,051 61,747 9,536 i Source: Orange County Sanitation District's Accounting Division. 41 ORANGE COUNTY SANITATION DISTRICT Expenses by Type Y (Dollars in Thousands) Last Ten Fiscal Years $150,000 -- - ---- - $140,000 - - $130,000 .� $120,000 - - -- - $1 10.000 $100.000 _ - $90,000 _ - $80.000 I - - $70.000 -- - $60,000 i $50,000 - -� S40,000 - --- - $30.000 �r $20,000 S 10,000 $0 1995-96 1996-97 1997-98 1998-99 1999.00 2000.01 2001-02 2002-03 2003-04 2004.05 ■Operating Expense ONon Operating Expense Operating Non-Operating Fiscal Personal Maint& Depr& Total Interest Total Non- Year Services Utilities Other Amort Operating Expense Other(1) Operating 1995-96 S 32,660 S 2,978 S 26,114 S 34,001 S 95,753 S 20,731 $ 7,648 S 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 2003-04 48,711 5,408 41,284 46,118 141,521 15,524 4,396 19,920 2004-05 53,048 6,473 42,325 53,211 155,057 17,470 3,056 20,526 w Notes (1) - For FY 1999-00, Other Non-Operating Expense includes $22,994,647 for the loss on investment in the Orange County -� Investment Pool. Source: Orange County Sanitation District's Accounting Division. 42 ORANGE COUNTY SANITATION DISTRICT Change in Net Assets (Dollars in Thousands) Last Five Fiscal Years (Note 1) $1,060,000 $1,040,000 $1,020,000 $1,000,000 $980,000 $960,000 — $940,000 $920,000 $900,000 / $880,000 2000-01 2001-02 2002-03 2003-04 2004-05 Ending Net Assets by Fiscal Year Fiscal Total Total Change in Beginning Ending Year Revenues Expenses Net Assets Net Assets Net Assets 2000-01 $161,971 $ 133,543 $28,428 $ 918,533 $ 946,961 2001-02 164,580 137,568 27,012 946,961 973,973 2002-03 173,662 137,288 36,374 973,973 1,010,347 2003-04 175,226 161,441 13,785 1,010,347 1,024,132 —' 2004-05 192,698 175,583 17,115 1,024,132 1,041,247 Note 1: Net Assets are calculated as a result of GASB 34, which was implemented in FY 2001-2, retrospective to 2000-01. Ten years information will eventually be presented as data is accumulated. Source: Orange County Sanitation District's Accounting Division. r 43 ORANGE COUNTY SANITIATION DISTRICT - Cash and Investment Reserve Balances (Dollars in Millions) Last Ten Fiscal Years I Capital Debt Cash Flow Self- Improvement Service L,, Fiscal Year Contingency Insurance Program Requirements Total 1995-96 $42 $243 $ 55 $46 $ 386 1996-97 39 82 195 60 376 � 1997-98 63 89 188 33 373 1998-99 56 54 233 33 376 1999-00 60 57 284 32 433 2000-01 77 56 311 33 477 2001-02 70 57 303 35 465 2002-03 100 57 237 33 427 2003-04 71 57 390 88 606 2004-05 108 57 242 65 472 i� Notes: IW The Cash Flow Contingency Reserve is to fund operations, maintenance, and certificates of participation debt service expenses for the first half of the fiscal year, prior to the receipt of the first installment of the property tax allocation and sewer service user fees. The Self-Insurance Reserve is to provide requirements for property damage including fire, flood and earthquake, general liability and workers' compensation. The Capital Improvement Program Reserve is to fund annual increments of the capital improvement program with a target level at one half of the average annual capital improvement program through the year 2020. The Debt Service Required Reserves are monies held and controlled by a trustee pursuant to the provisions of certificates of participation issues, and the monies are not available for the general needs of the District. Lad ►.r Source: Orange County Sanitation District's Accounting Division. 44 - ORANGE COUNTY SANITIATION DISTRICT Cash and Investment Portfolio �+ as of June 30, 2005 e" Cost Market Value Net Unrealized Gain/Loss Shares Par Base Base %of Total Base Investment Portfolio: Cash and Cash Equivalents(U.S.Dollar): ON Pending Trades $ $ (72,891,745.10) $ (72,891,745.10) -19.28% $ Certificates of Deposit-Domestic 10,000,000.00 9,995,500.00 9,995,500.00 2.64% Commercial Paper-Discount 2,800,000.00 2,778,595.00 2,778,595.00 0.73% No Fed Hm Loan Bnk-Less Than 1 Year 6,100,000.00 6,062,253.42 6,062,253.42 1.60% Federal Home Loan Mortgage-Less Than 1 Yr 4,000,000.00 3,956,401.13 3,956,401.13 1.05% FNMA Issues-Less Than 1 Year 10,700,000.00 10,577,387.77 10,577,387.77 2.80% Mutual Funds 2,597,395.77 2,597,395.77 2,597,395.77 0.69% 4r Treasury Bills-Less Than 1 Year 11,000,000.00 10,875,701.36 10,875,701.36 2.88% Subtotal 47,197,395.77 (26,048,510.65) (26,048,510.65) -6.89% Fixed Income Securities(U.S.Dollar): ABS-Airplane Receivables 1,600,000.00 1,600,000.00 470,000.00 0.12% (1,130,000.00) ABS-Home Equity 443,416.80 443,416.80 443,824.74 0.12% 407.94 Banking&Finance 47,650,000.00 47,741,511.20 47,739,276.14 12.62% (2,235.06) Collateralized Mortgage Obligation 1,625,857.81 1,625,857.81 1,723,490.57 0.46% 97,632.76 FHLMC Multiclass 730,909.94 731,688.60 731,523.90 0.19% (164.70) '~ FHLMC Pools 50,760.81 49,523.51 52,370.94 0.01% 2,847.43 FNMA Pools 56,788,776.08 57,497,631.85 57,471,959.21 15.20% (25,672.64) GNMA Multi Family Pools 3,015,840.96 3,006,148.54 3,054,378.87 0.81% 48,230.33 GNMA Single Family Pools 512,217.65 537,054.43 535,675.21 0.14% (1,379.22) Industrial 2,000,000.00 1,998,188.00 1,999,680.00 0.53% 1,492.00 Inflation Indexed Securities 25,594,309.86 26,140,659.55 27,113,549.88 7.17% 972,890.33 PVT Placements-More Than 1 Year 752,000.00 826,199.84 826,199.84 0.22% - ,r, U.S.Agencies 18,513,599.87 18,317,891.77 18,545,167.53 4.90% 227,275.76 U.S.Governments 240,194,342.07 242,606,383.27 240,331,892.20 63.55% (2,274,491.07) Utility-Electric 3,150,000.00 3,143,840.00 3,171,913.50 0.84% 28,073.50 Subtotal 402,622,031.85 406,265,995.17 404,210,902.53 106.89% (2,055,092.64) w.1 Total Investment Portfolio $ 449,819,427.62 380,217,484.52 378,162,391.88 100.00% $ (2,055,092.64) Demand Cash Accounts (44,479.30) (44,479.30) Monies Held With Fiscal Agents 63,962,798.19 63,962,798.19 Monies with the Local Agency Investment Fund 30,332,936.25 30,264,612.91 Total Cash and Investments $ 474,468,739.66 $ 472,345,323.68 mr alp ann Source: Mellon Trust and the Orange County Sanitation District's Accounting Division. ur 45 P" I ORANGE COUNTY SANITATION DISTRICT " Number of Accounts and Revenues by Customer Class (Dollars in Millions) Last Ten Fiscal Years Residential/Commercial Industrial Number of Total Percentage Total Percentage Equivalent Sewer Svc. of Sewer Number of Sewer Svc. of Sewer Single-Family Charge Service Charge Customer Charge Service Charge Fiscal Year Dwellings Revenue Revenues Accounts Revenue Revenues 1995-96 849,576 $58.1 90% 892 $6.6 10% 1996-97 814,001 66.2 92% 869 6.0 8% �+ 1997-98 851,770 62.2 92% 678 5.7 8% 1998-99 882,103 61.6 89% 678 7.8 11% 1999-00 919,072 72.0 89% 649 9.1 11% W 2000-01 883,603 64.5 91% 596 6.6 9% 2001-02 898,031 70.3 90% 573 7.5 10% 2002-03 897,757 77.0 92% 603 6.3 8% 2003-04 860,156 86.0 92% 530 7.5 8% 2004-05 860,634 99.0 90% 568 10.5 10% Source: Orange County Sanitation District's Accounting Division. ORANGE COUNTY SANITATION DISTRICT Annual Sewer Service Charges Single Family Residence Rate Last Six Fiscal Years and Next Fiscal Year(Note 1) Sewer Service Fiscal Year Charge 1999-00 $ 81.02 2000-01 78.00 2001-02 80.00 2002-03 87.50 2003-04 100.00 2004-05 115.00 2005-06 151.00 w Note 1: Prior to FY 1999/00, the District was comprised of nine separate Districts, and each District had their own rate. Data on the District's single rate will be compiled and will be added to this schedule until ten year's accumulated data is available. W_j i.r Source: Orange County Sanitation District's Accounting Division. W 46 - - W ORANGE COUNTY SANITATION DISTRICT Property Tax Rates - Direct and Overlapping Governments (per$100 of asessed value) Last Ten Fiscal Years Fiscal Basic OCSD#11, 1958 Year 1%Levy Bond I&R Fund Total 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 1999-00 1.00000 0.00000 1.00000 2000-01 1.00000 0.00000 1.00000 2001-02 1.00000 0.00000 1.00000 2002-03 1.00000 0.00000 1.00000 2003-04 1.00000 0.00000 1.00000 2004-05 1.00000 0.00000 1,00000 Source: County of Orange Auditor-Controller's Office. ORANGE COUNTY SANITATION DISTRICT Principal Users For the Current Fiscal Year and Nine Years Ago Fiscal Year Ended 6/30/05 Fiscal Year Ended 6/30196 Permittee %to Total Permittee %to Total Service Service Charge Service Service Charge User Charges Rank Revenue Charges Rank Revenue .b MCP Foods, Inc. $881,089 1 0.73% Alstyle Apparel-Activewear Mfg. 793,035 2 0.66% Kimberly-Clark Worldwide, Inc. 727,318 3 0.60% $389,776 2 0.55% Stremicks Heritage Foods, LLC 591,308 4 0.49% Disneland Resort 569,661 5 0.47% 145,725 7 0.21% House Foods America Corp. 540,548 6 0.45% Disneyland Resort--DCA 411,368 7 0.34% �r Van Law Food Products, Inc. 359,771 8 0.30% Seven-Up Bottling Company 235,146 9 0.19% 119,454 10 0.12% Expo-Dyeing&Finishing, Inc. 218,959 10 0.18% Hunt-Wesson, Inc. 252,206 4 0.36% Shell Western E&P 125,371 8 0.18% Marine Corps Air Station 277,834 3 0.39% Pepsi-Cola Bottling 248,082 5 0.35% Sundor Brands 415,585 1 0.59% Anaheim Citrus 124,849 9 0.20% Favorite Foods 145,773 6 0.21% $5,328,203 4.41% $2,244,655 3.16% .r Source: Orange County Sanitation District's Accounting Division. 47 ORANGE COUNTY SANITATION DISTRICT Assessed and Estimated Actual Value of Taxable Property (Dollars in Millions) Last Ten Fiscal Years $250,000 $200,000 / S150.000 / $100.000 s50.000 so - - -- -- 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002.03 2003.04 2004-05 r ■Secured Property Assessed Value t7Unsecured Property Assessed Value Secured Property Unsecured Property Totals Ratio of Total Percent Estimated Estimated Estimated Assessed to Change in Assessed Actual Assessed Actual Assessed Actual Estimated Assessed Fiscal Year Value Value Value Value Value Value Value Value 1995-96 $122,524 $122,524 $3,372 $3,372 $125,896 $125,896 100% -1.18% r„ 1996-97 122,304 122,304 3,247 3,247 125,551 125,551 100% -0.27% 1997-98 125,018 125,018 3,302 3,302 128,320 128,320 100% 2.21% 1998-99 131,295 131,295 3,394 3,394 134,689 134,689 100% 4.96% 1999-00 142,126 142,126 3,507 3,507 145,633 145,633 100% 8.13% 2000-01 155,544 155,544 3,778 3,778 159,322 159,322 100% 9.40% 2001-02 169,357 169,357 4,066 4,066 173,423 173,423 100% 8.85% 2002-03 183.223 183,223 5,657 5,657 188,880 188,880 100% 8.91% 2003-04 197,143 197,143 4,309 4,309 201,452 201,452 100% 6.66% 2004-05 214,529 214,529 4,743 4,743 219,272 219,272 100% 8.85% Source: Orange County Auditor-Controller's Office. .. 48 ORANGE COUNTY SANITATION DISTRICT Property Tax and User Fee Levies and Collections (Dollars in Thousands) Last Ten Fiscal Years $160,000 $140.000 $120.000 $100.000 $80.000 560,000 S40,000 $20.000 $• - - 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 ❑Total Tax and User Fee Levy ®Total Tax and User Fee Collection Current Total Tax °o of Total Tax Tax and Percent of Delin- and User °6 of Total O/S Delinquen- Fiscal and User ERAF III User Fee Levy quent Fee Collection Delinquen- cies to Tax Year Fee Levy Deduction Collection Collected Collection Collection to Levy cies Levy 1995-96 S 91,775 S S 91,596 99.80 S 812 S 92,408 100.69 S 179 0.20 1996-97 89,794 89,570 99.75 180 89,750 99.95 224 0.25 y 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 2003-04 134,389 134.132 99.81 94 134,226 99.88 257 0.19 2004-05 153.187 (16.198) 152,745 99.71 92 152,837 99.77 442 0.29 Source: Orange County Auditor- Controller's Office. 49 i ORANGE COUNTY SANITATION DISTRICT — Property Value and Construction Covering The Entire County of Orange(1) (Dollars In Thousands) Last Ten Fiscal Years Non- Assessed Residential Residential Property Value(2) Constr.(3) Construction (3) Total �+ Fiscal Calendar No.of Construction Year Value Year Value Units Value Value(3) 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 Lai 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 1,208,626 12,020 2,328,123 3,536,749 2002-03 269,684,864 2003 1,005,547 9,310 2,076,443 3,081,990 2003-04 287,923,828 2004 1,132,850 9,316 2,237,753 3,370,603 2004-05 311,802,395 2005 (4) 1,178,276 8,802 2,120,832 3,299,108 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. W i W 50 W ORANGE COUNTY SANITATION DISTRICT Ratio of Annual Debt Service for Bonded Debt to Total Expenses (Dollars in Thousands) Last Ten Fiscal Years s 60.0% M 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% - - - - -- -- 1995-96 1996.97 1997-98 1998.99 1999.00 2000-01 2001-02 2002-03 2003-04 2004-05 Total Ratio of Debt Principal Total Debt Operating Service to Total Fiscal Year (1) Interest Service Expenses (2) Operating Expenses 1995-96 S 10,180 S 21,298 S 31,478 S 61,752 50.970o 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 2003-04 11,610 22,508 34,118 95,403 35.76 2004-05 12,040 25,871 37,911 101,846 37.22 Notes (1) - Excludes principal reductions due to advanced refunding. (2) - Excludes depreciation and amortization expense. Source: Orange County Sanitation District's Accounting Division. 51 ORANGE COUNTY SANITATION DISTRICT Bond Coverage (Dollars in Millions) Last Seven Fiscal Years (Note 1) 4.50 4.00 3.50 3.00 2.50 _ 2.00 1.50 _ 1.00 0.50 LEI 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 Fiscal Year Ending June 30, 1999 2000 2001 2002 2003 2004 2005 Revenues Sewer Service Charges, net of refunds $ 61.6 $ 72.0 $ 64.5 $ 70.3 $ 77.0 $ 86.0 $ 99.0 Industrial Sewer Service Charges 7.8 9.1 6.6 7.5 6.3 7.5 10.5 Revenue Area No. 14 Fees 0.7 2.2 2.0 2.2 3.2 5.8 6.9 Ad Valorem Taxes 32.8 35.6 38.4 41.1 44.6 46.9 35.8 Interest Earnings 17.9 20.5 39.4 27.8 25.9 6.8 15.1 Capital Facilities Capacity Charges 9.5 7.9 7.3 10.6 10.1 9.0 9.8 Other Revenues 2.4 1.2 2.5 2.5 3.4 4.0 6.1 Total Operating& Non-operating Revenues 132.7 148.5 160.7 162.0 170.5 166.0 183.2 Operating Expenses(excludes depreciation) 54.7 59.4 62.3 68.6 79.7 95.4 101.8 Net Revenues $ 78.0 $ 89.1 $ 98.4 $ 93.4 $ 90.8 $ 70.6 $ 81.4 Debt Service Requirements Principal Payments 12.1 12.9 13.8 10.4 11.0 11.6 12.0 Interest Payments 18.5 17.2 16.7 13.0 11.4 22.5 25.9 Total Debt Service Requirements $ 30.6 $ 30.1 $ 30.5 $ 23.4 $ 22.4 $ 34.1 $ 37.9 w Coverage Ratios 2.55 2.96 3.23 3.99 4.05 2.07 2.15 Ending Reserves, Excluding Debt Service Funds $ 343.0 $ 401.0 $ 444.0 $ 430.0 $ 394.0 $ 518.0 $ 407.0 Note 1: Ten years data will eventually be presented as data is accumulated. Source: Orange County Sanitation District's Accounting Division. 52 ORANGE COUNTY SANITATION DISTRICT Computation of Direct and Overlapping Debt 'W June 30, 2005 2004-05 Assessed Valuation(Land&Improvements Only): $196,590,453,834(after deducting$22,681,057,434 redevelopment incremental valuation) %Applicable Debt 6/30/05 �tl Overlapping Tax and Assessment Debt (Based on redevelopment adjusted all property assessed valuation of$202,435,478,867): Orange County Teeter Plan Obligations 72.159% $ 89,278,723 Metropolitan Water District of Southern California 15.234 63,889,873 Coast Community College District 99.537 107,608,323 North Orange County Joint Community College District 97.015 239,368,991 Rancho Santiago Community College District 98.396 209,293,081 Brea-Olinda and Laguna Beach Unified School Districts 97.825&7.953 28,303,708 Newport Mesa Unified School District 100.000 107,360,000 Placentia-Yorba Linda Unified School District 98.619 96,367,680 �+ Saddleback Valley Unified School District 11.611 11,611,000 Santa Ana Unified School District 100.000 140,943,156 Tustin Unified School District School Facilities Improvement District No.2002-1 98.745 13,029,403 Anaheim Union High School Districts 100.000 118,808,955 Fullerton Joint Union High School District 90.537 58,426,161 Huntington Beach Union High School District 99.076 177,306,483 School Districts 97.692-100 185,763,507 City of Anaheim 99.108 6,565,905 Irvine Ranch Water District Improvement Districts Various 191,562,874 Other Special Districts 100.000 755,000 m Bonita Canyon Community Facilities District No.98-1 100.000 44,005,000 Irvine Unified School District Community Facilities District No.86-1 100.000 94,875,000 Tustin Unified School District Community Facilities District No.88-1 and 97-1 100.000 162,572,675 Orange County Community Facilities District No.87-4 99.993 69,337,461 Other Community Facilities Districts Various 271,004,847 Orange County Assessment Districts 100.000 103,584,366 City of Irvine 1915 Act Bonds 100.000 707,784,293 City of Tustin 1915 Act Bonds 100.000 61,970,000 Other 1915 Act Bonds Various 30,564,164 de, Total Overlapping Tax and Assessment Debt $3,391,940,629 Direct and Overlapping General Fund Debt: Orange County General Fund Obligations 72.159% $ 632,472,913 Orange County Pension Obligations 72.159 80,653,913 Orange County Board of Education Certificates of Participation 72.159 14,359,641 wo Orange County Transit District Authority 72.159 2,673,491 Coast Community College District Certificates of Participation 99.537 7,161,687 South Orange County Community College District Certificates of Participation 34.182 13,860,801 Brea-Olinda Unified School District Certificates of Participation 97.825 31,651,279 Orange Unified School District Certificates of Participation 96.801 50,641,443 Santa Ana Unified School District Certificates of Participation 100.000 46,701,888 Other Unified School District Certificates of Participation Various 25,577,490 Union High School District Certificates of Participation Various 61,129,272 School District Certificates of Participation Various 64,712,349 City of Anaheim General Fund Obligations 99.108 663,412,150 City of Fullerton General Fund Obligations 100.000 34,459,256 City of Huntington Beach General Fund and Judgment Obligations 99.982 89,635,003 City of Irvine General Fund Obligations 100.000 42,940,000 City of Santa Ana General Fund Obligations 100.000 133,032,243 Other City General Fund Obligations Various 186,603,228 Orange County Sanitation District Certificates of Participation(1) 100.000 142,325,000 Irvine Ranch Water District Certificates of Participation 88.627 41,300,182 Municipal Water District of Orange County Water Facilities Corporation 66.866 23,513,429 Yorba Linda County Water District Certificates of Participation 97.536 10,216,896 No Orange County Fire Authority 44.940 8,837,451 Total Gross Direct and Overlapping General Fund Debt $2,407,871,005 Less: Orange County Transit District Authority(80%self-supporting) 2,138,793 City of Anaheim self-supporting obligations 630,531,991 Other City self-supporting obligations 9,828,924 MWDOC Water Facilities Corporation(100%self-supporting) 23,513,429 Total Net Direct and Overlapping General Fund Debt $1,741.857,868 Gross Combined Total Debt(2) $5.799,811,634 Net Combined Total Debt $5,133,798,497 (1) Excludes certificates of participation supported by wastewater revenues. (2) Excludes tax and revenue anticipation notes,enterprise/mortgage revenues,tax allocation bonds and non-bonded capital lease obligations. Ratios to: Total Overlapping Tax and Assessment Debt Gross Combined Total Debt Net Combined Total Debt Land&Improvement Assessed Valuation 1.55% 2.95% 2.61% All Property Assessed Valuation N/A 2.87% 2.54% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/05: $7,825,560 Source: California Municipal Statistics. 53 r ORANGE COUNTY SANITATION DISTRICT - Comparison of the Volume of Wastewater Treated With Revenues and Expenses Last Ten Fiscal Years I 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) 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 2003-04 238 882.94 141,521 19,920 102,327 63,655 2004-05 243 881.13 155,057 20,526 121,415 61,747 iW 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 2004-05 increased $51.5 million, or 41.5 percent since FY 1995-96, primarily as a result of (1)the expected increase in wastewater flows, (2)OCSD's decision beginning in FY 2002-03 to maximize existing secondary treatment facilities as OCSD moves from a 50/50 mix of primary and secondary effluent treatment to meeting secondary treatment standards by December 31, 2012, and (3) OCSD's decision to eliminate most bacteria from the ocean outfall discharge by disinfecting the effluent beginning in FY 2002-03 at an additional cost in chemicals of$7 million annually. Depreciation expense represents 37 percent of the increase as a result of the previous expansion in capital facilities and the financing associated with the expansion. Maintenance, chemicals, utilities, and other operating costs represent another 32 percent of the increase, primarily due to the increase in the levels of treatment referred to above. In FY 2004-05, personnel expenses rose 8.9 percent over the prior year. This increase is mainly due to the additional 31 full-time equivalent positions authorized in FY 2004-05. WW As depicted from the chart above, actual wastewater treatment flows have consistently remained between 237 mgd and 244 mgd, other than in FY 1997-98 which reached a high of 254 mgd and in FY 2000-01 which reached 246 mgd. Due to normal weather conditions during the year, FY 2004-05 had flows of 243 mgd. r� Source: Orange County Sanitation District. tow 54 w ORANGE COUNTY SANITATION DISTRICT Authorized Full-time Equivalents by Function Last Ten Fiscal Years 400 350 300 250 200 150 100 50 0- An 0 4 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 General Management ■Finance ❑Human Resources ❑Technical Services ■Engineering 13 Operations and Maintenance ■Information Technologies 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 General Management 21 18 16 15 13 12 17 17 17 18 Finance 42 41 39 38 37 37 39 39 40 45 Human Resources 19 17 18 17 17 18 19 28 32 34 Technical Services 121 104 100 93 88 87 95 94 100 112 Engineering 77 73 72 67 75 73 104 79 80 95 Operations and Maintenance 375 342 289 286 255 250 261 272 285 282 Information Technologies 23 21 26 26 33 33 39 40 44 44 Total FTE's 678 616 560 542 518 510 574 569 598 629 Source: Orange County Sanitation District's Accounting Division. 55 ORANGE COUNTY SANITATION DISTRICT Biosolids Produced Last Ten Fiscal Years 55,000 50,000 45,000 40,000 35,000 r.w 30,000 25,000 20,000 r.r ❑1995-96 ■1996-97 13 1997-98 81998-99 ■1999-00 ■2000-01 13 2001-02 13 2002-03 0 2003-04 ■2004-05 Fiscal Year Tonnage r 1995-96 38,802 1996-97 39,386 rr 1997-98 42,645 1998-99 41,127 1999-00 42,831 2000-01 42,254 .. 2001-02 42,505 2002-03 47,631 2003-04 50,519 2004-05 51,700 Source: Orange County Sanitation District's Environmental Assessment Division. 56 .r ORANGE COUNTY SANITATION DISTRICT m Demographic Statistics Covering The Entire County of Orange(1) Last Ten Fiscal Years (2) (3) (4) (6) Population Median Public School (5) Total Debt Fiscal Estimates Family Enrollment Unemployment COP Debt Per Year (In Thousands) Income (In Thousands) Rate (In Thousands) Capita 1995-96 2,624 $57,106 422 4.1% $408,210 $156 1996-97 2,632 59,629 443 3.2% 397,545 151 1997-98 2,615 61,812 458 2.9% 386,240 148 1998-99 2,776 63,478 471 2.6% 374,135 135 1999-00 2,828 69,310 483 2.9% 361,255 128 2000-01 2,880 70,577 494 3.0% 386,370 134 2001-02 2,940 70,887 503 4.1% 376,000 128 2002-03 2,979 72,985 512 4.0% 364,975 123 +� 2003-04 3,017 74,200 517 3.6% 633,365 210 2004-05 3,057 76,206 (7) 514 3.9% 621,325 203 Notes and Data Sources (1)-The Orange County Sanitation District services 471 square miles or 59%of the total 799 square miles tow that make up the boundaries of the County of Orange. (2)- Data Source - Demographic Research Unit, California Department of Finance. m (3)- Data Source-Anderson Center for Economic Research, Chapman University (4)- Data Source- California Department of Education, Educational Demographics Unit. (5)- Data Source- State of California, Employment Development Department as of June 30 of each fiscal year. (6) - Data Source-Orange County Sanitation District's Accounting Division. Equals total certificates of participation outstanding at the end of the year. (7)-Estimated number. 57 i ORANGE COUNTY SANITATION DISTRICT Estimated Populations Served by the L, Orange County Sanitation District June 30, 2005 i Population as of January 1,2005 LW' Anaheim 345,300 Brea 39,600 Buena Park 81,100 Costa Mesa 113,400 Cypress 48,900 Fountain Valley 57,350 Fullerton 135,700 Garden Grove 172,050 Huntington Beach 200,800 tow Irvine 180,800 La Habra 61,800 La Palma 16,100 Los Alamitos 12,000 Newport Beach 83,100 Orange 137,750 6W Placentia 50,300 Santa Ana 351,700 Seal Beach 25,300 Stanton 38,800 Tustin 70,900 Villa Park 6,200 W estminister 92,300 Yorba Linda 65,600 Subtotal City(1) 2,386,850 Estimated Population Served in Unincorporated Areas (2) 81,000 2,467,850 Data Sources: (1) Demographic Research Unit, California Department of Finance. (2) Orange County Sanitation District Accounting Division. land 58 m ORANGE COUNTY SANITATION DISTRICT m Insurance in Force As of July 1, 2005 Ono Type Insurer Deductible Limit All-Risk Property Fire and Other Perils Public Entity Property $25,000 per occurrence $1 billion/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 $350,000 �+ excess insurance companies 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 American International Group $250,000 $25 million/occurrence General Liability AIG (first$10 million and annual aggregate layer); Traders& Pacific Insurance Company ($15 million layer excess$10 million) Travel &Accident Chubb Group of Insurance $0 Accidental Death & Companies Dismemberment: Class 1: Elected Officials; $500,000 per occurrence Class 2: Employees; 10 X annnual salary, up to $500,000 per occurrence Excess Workers' Compensation CA Public Entity Insurance $500,000 $150 million each accident, Authority Each Accident each employee Source: Orange County Sanitation District's Risk Management Office. m 59 ORANGE COUNTY SANITATION DISTRICT Miscellaneous Statistics June 30, 2005 District Organization: The Orange County Sanitation District is one consolidated district made up of two revenue areas which service unincorporated county areas and twenty-three cities and related special districts, as follows: Consolidated Revenue Area how County of Orange (unincorporated areas) Cities: Anaheim Huntington Beach Santa Ana Brea Irvine Seal Beach Buena Park La Habra Stanton Costa Mesa La Palma Tustin Cypress Los Alamitos Villa Park 6, Fountain Valley Newport Beach Westminster Fullerton Orange Yorba Linda Garden Grove Placentia Special Districts: Midway City Sanitary District Costa Mesa Sanitary District Revenue Area No. 14 County of Orange (unincorporated areas) I Cities: r, Irvine Orange Tustin Special District: Irvine Ranch Water District Governing Body: 25-member Board of Directors L Authorized Full-Time Equivalent Employees: 629 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: 2.5 million Total Miles of Trunk and Subtrunk Sewers: 620 miles Number of Pumping Stations: 18 W Wastewater System Treatment Capacities (Million Gallons per Day) Existing Primary Existing Secondary Planned Capacity Actual Flows Treatment Capacity Treatment Capacity by 2020 6w Plant 1 88 138 75 170 Plant 2 155 168 90 150 Total W am Source: Orange County Sanitation District's Accounting Division. 60 ORANGE COUNTY SANITATION DISTRICT Finance Department (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 6/30/05 Z �I* Vmimt kk AM t� IL t r.` w i n e Count San' tion Dis !Ct'.\ C .11T mia '1 pF I il il L iff- I I il , I- ow Table of Contents kow Section1 - Overview..................................................................................................................1 'd Section 2 -Operating Budget Review Chart of the Cost per Million Gallons by Department— Budget and Actual ..........................1 cow Chart of the Net Expenses by Major Category—Budget and Actual....................................1 Divisional Contributions to Gallonage Charge......................................................................2 Comparison of Expenses by Department.............................................................................3 Summary of Collection, Treatment, and Disposal Expenses by Major Category..................4 Summary of Treatment and Disposal Revenues..................................................................5 Summary of Other Revenues...............................................................................................5 Summary of Collection, Treatment, and Disposal Expenses by Line Item............................6 Summary of Collection, Treatment, and Disposal Expenses by Process .............................8 'm Chart of Staffing Trends 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—Capital Facilities & Debt Service Capital Facilities Budget Review ..........................................................................................1 DebtService Budget Review................................................................................................1 ,ow Section 5—Self Insurance Budget Review General Liability and Property Fund Budget Review............................................................1 imd Workers' Compensation Fund Budget Review .....................2 ................................................ i FY 2005-06 First Quarter Report W This Page Intentionally Left Blank W W W Ld W W W W Overview First Quarter Financial Report September 30, 2005 The Finance Department is pleased to present the FY 2005-06 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. Operating Budget Review. This section reports on collection, treatment, and disposal net operating costs. At September 30, 2005, 22.40 percent, or$25.47 million of the FY 2005-06 net operating budget of$113.69 million has been expended. Net operating _J expenses increased from the same period last year by $3.26 million or 14.69 percent. A variety of factors which are discussed below have caused this increase in expenses. The total cost per million gallons at September 30, 2005, is $1,150.49 based on flows of 22.14 billion gallons, or 240.63 million gallons per day. This is $95.44, or 7.66 percent less than the budgeted cost per million gallons of$1,245.93. This lower cost q, per million gallons is primarily due to net expenses being 10.39 percent less than the proportionate budget through September 30, 2005. This is somewhat offset by flows being 3.75 percent lower than the budgeted 250 million gallons per day. Some of the significant joint operating results as of September 30, 2005 include: • Salaries. Wages and Benefits— Personnel costs are near to being on target at 23.94 percent of budget through September 30, while staffing is 48 full-time equivalents (FTE's), or 7.45 percent below the total 644 FTE's approved in the FY 2005-06 budget. Salary and benefit costs are $1.84 million higher than the $14.8 million incurred by this same time last year, mainly as a result of annual range adjustment and merit increases effective as of July 2005. Additionally, there are 18 more employees than at this same time last year. Net operating personnel costs are expected to approximate budget throughout the remainder of the year. • Operating Expenses— Other than personnel costs, the operating expense category is the largest expense item in the operating budget, and chemicals comprise the majority of this category. As expected during the budget process, the cost of chemicals has risen over the prior year, pushing total operating expenses $747,000 higher than at this same time last year. However, operating expenses are slightly m lower than the proportionate budget through September 30, totaling $4.22 million, or 20.59 percent of the composite $20.51 million budget. Based on current processes, chemical costs are anticipated to parallel the proportionate budget throughout the remainder of the year and to be at or below budget at year-end. Section 1 - Page 1 i.d FY 2005-06 First Quarter Report • Contractual Services- Overall costs for contractual services were slightly lower + than the proportionate $14.39 million budget through September 30 at $3.45 million, or 23.96 percent. Solids removal costs, budgeted at $10.02 million, comprise the majority of this expense category. At September 30, solids removal costs totaled $2.75 million, or 27.47 percent of budget. Total contractual services costs are anticipated to be at or below budget at year-end. • Professional Services- Overall professional services totaled $654,000, or 14.83 percent of the composite $4.41 million budget through September 30. Costs for supporting the Enterprise Resource Planning (ERP) system are higher than the proportionate budget at 50.93 percent, or$140,800, as a result of finalizing issues - resulting from the last system upgrade. The use of consultants for supporting the ERP system is expected to be lower in the second and third quarters of the fiscal �"`' year. All other professional services costs (such as legal costs, engineering, and environmental consulting services) are proportionately low through September 30 due to being in the planning or request for proposal stage, being started later in the fiscal year due to the timing of when services are needed, or the need for the service is being re-evaluated. It is anticipated that the overall costs for this category will increase in the next quarter of the fiscal year but will overall remain below budget. w • Utilities- Utilities costs totaled $2.43 million, or 39.99 percent of the composite $6.07 million budget through September 30. These costs are proportionately high due to a change in the operation of the Central Generation facilities. The new 6W operating philosophy of the Central Generation facilities is to purchase electricity for power production rather than purchasing natural gas to supplement the digester gas needed to run the Central Generation facilities. This operating philosophy change allows the Central Generation facilities to meet air emission requirements. As a result of this operational change, the costs of utilities are expected to be approximately $492,000 higher than the budget for the fiscal year. WW • Revenues-Treatment and Disposal -Through September 30, revenues resulting from the treatment and disposal processes totaled $1.20 million, or 29.18 percent of the $4.10 million budget. The largest revenue item is the Interdistrict Sewer Charge _ to the Santa Ana Watershed Protection Agency for treatment of flows. This revenue totaled $670,400 at September 30, or 26.82 percent of the $2.5 million budgeted revenue, due to higher biochemical oxygen demand (BOD) and total suspended solids (TSS) loadings than was anticipated when the budget was prepared. Sales of compressed natural gas (CNG) are at $64,000, or 142.26 percent of the $45,000 budget. When the budget was prepared, it was unknown that upgrading the meters to accept credit cards would result in such higher revenues. It is anticipated that the annual sales revenue for CNG will be $250,000. • Other Revenues- Service Fees & Property Taxes -These revenues make up the 6.r� majority of the regular revenues. These revenues are collected by the County through the property tax roll and are not distributed to the District until after the first Section 1 - Page 2 6w Overview quarter of each year. Through September 30, revenues from service fees and property taxes are only at 1.20 percent and 8.67 percent of the budget, respectively. However, these revenues are anticipated to approximate budget at year-end. • Other Revenues — Capacity Rights and Debt Proceeds — These two revenue categories have had no activity as of September because there has been no capacity rights sales and the District is still in the process of issuing debt. These revenue categories are expected to have activity later in the fiscal year. • Other Revenues — Permittee User Fees — Permittee User Fees are at 35.42 percent of the $12.811 million budget. The revenues through the first quarter are proportionately higher than the budget due to including the first quarter's estimated billing of $3.59 million as well as the annual true-up of the prior year's actual charges, which resulted in an additional $877,000 of charges to permittees. It is estimated that the permittee user charges will exceed the budget amount by approximately $1.55 million by year-end. Comparison of First Quarter Cost per Million Gallon Results With Year-End Actuals (Budget) Last Five Years 1250 1'D5 1.pp - 1025 - 950 - I 875 -- - - 800 - - - _ 725 - 650 - - - I I 575 - - - 500 - 425 -, 0402 4203 B:i:P3 D.9:95 OS-06 It Year It Year tt Year It Year 16t Amual Otr end Otr end Otr end Otr end Otr Budget As demonstrated in the preceding graph, the cost per million gallons at the end of the first quarter has been between 7 and 17 percent lower than at year-end. The 2005-06 first quarter continues with this trend when compared with the year's budget. Staff believes that overall operating costs will more closely approximately budget by year- end. Section 1 - Page 3 FY 2005-06 First Quarter Report Section 2 - Page 1 provides a graphical comparison of each Department's actual -- contribution towards the gallonage charge through the first quarter of FY 2005-06 and as budgeted for FY 2005-06. 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, 2005 and 2004; Section 2 — Page 5 provides a summary of revenues by line item through September 30, 2005 and 2004; Section 2 — pages 6 and 7 provide a summary of expenses by line item through September 30, 2005 and 2004; Section 2 — Page 8 provides a summary of expenses by process through September 30, 2005 and 2004; Section 2 — Page 9 provides staffing trends over the last five years including total positions authorized, actual positions filled, and vacant positions. Capital Outlay Review: $300,000,000 $250,000,000- $200,000,000- ... $150,000,000 _ AM- $100,000,000V y $50,000,000 $0 09/30/05 Actual Projected 2005-06 2005-06 Capital Outlay Capital Outlay Capital Outlay Cashflow Budget $42,163,500 $261,056,000 $277,110,600 Capital Improvement Programs: As depicted by the preceding chart, Capital Outlays totaled $42,163,500 or 15.22 percent of the capital outlay cash flow budget for FY 2005-06 as of September 30, 2005. Costs are proportionately low through the first quarter as many projects are still in the design phase or have experienced various delays. For example, the North County Collection Yard is still in the process of being acquired. Through September 30, this acquisition cost totals only $79,000, but the year's projected outlay is expected to be $10,500,000. Another example of the delay in capital outlays is with the Groundwater Replenishment System (GWRS). The GWRS is currently at $15.70 million, or 18.51 percent of the FY 2005-06 budgeted cash flows of $84.81 million, and is expected only to achieve project cash outlays of $73.18 million, or 86.29 percent at year-end. This cash outlay shortfall is attributable to the success Section 1 - Page 4 Overview by the Orange County Water District in obtaining $92.5 million in grant funding assistance that is applied first to the project costs before equal cash outlay contributions are required between the two agencies. Overall, the capital outlay costs low of the capital improvement program are expected to be $261,056,000, or 94.21 percent of capital outlay cash flow budget at year-end. bw 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 Dow dollar amount of capital expenditures incurred for each major capital improvement funding source. d; 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 •w project life. Capital Facilities & Debt Service Budget Review: This section shows the cost value of the District's capital facilities at September 30, 2005, as well as the debt service costs resulting from the need to provide funding for the construction of capital facilities. Currently, all principal payments on debt issues are due in August each year. Consequently, 100 percent of the principal payments have been made by the end of the first quarter each year. Interest costs are expensed ratably throughout the fiscal WA year. Due to variable interest rates, some of the interest expense amounts vary from the proportionate budget. Additionally, since the 2005 debt issue has not yet been completed, there has been no interest expense incurred as of September 30. Interest expense is anticipated to approximate budget at year-end. Self-insurance Budget Reviews: The District is self-insured for portions of workers' compensation, property damage, and general liability. Separate fund accounting is used for recording the revenue and expenses incurred in managing these liability claims. The revenues to these funds represent charges to operating divisions. Expenses to these funds include actual claims paid, claims administration, and excess loss policies. The Self-Insurance Fund revenues totaled $648,400 or 24.95 percent of the $2,598,700 budget at September 30, while total expenses were $397,600 or 17.34 percent of the $2,293,300 budget. Section 1 - Page 5 FY 2005-06 First Quarter Report w This Page Intentionally Left Blank Section 1 - Page 6 i.r Operating Budget Review Cost per Million Gallons by Department Budget and Actual September 30, 2005 $700 .�,. $600 $500 $400 $300 ... $200 $100 �+ $0 > O N C V .5d C Q ¢ Eooc EC OI _O 0 U a) C � r1 L C .O C N W ~ C) a) C C Q) a 0 w Oaf.50 a) ■Budget ■Actual Collection, Treatment, & Disposal Expenses by Major Category Budget and Actual (in thousands) September 30, 2005 $55,000 $50,000 $45,000 $40,000 .� $35,000 $30,000 $25,000 - $20,000 $15,000 .r $10,000 $5,000 - LLM $0 ad CO cc N .S 0) CM N 7 a) C 0 ,C N N la C C la C U U O U 2 `O N a) = .� U) a) C U C a) N 41 N ' a) C — Ql ad CO al S] fa N G. X C a) �7 2 y C a N = 0 otS C 0 CL 7 O W O fn p y y C N E O to w ■Budget ■Actual Section 2 - Page 1 2005-06 First Quarter Report Divisional Contributions to Gallonage Charge For the Three Months Ended September 30, i"'' 2005-06 9130103 9130104 Annual 9130105 Actual Actual Budget Actual 6md Flow in Million Gallons 22,831.79 21,793.00 91,250.00 22,137.51 Flow in Million Gallons per Day 248.17 236.88 250.00 240.63 General Manager's Department L:4j General Management Administration $ 19.88 $ 21.59 $ 18.28 $ 11.32 Finance Department _ Finance Administration 11.68 3.47 6.01 5.87 Accounting 18.33 21.92. 54.10 50.99 Contracts,Purchasing,&Materials Mgmt. 15.86 20.17 27.08 26.22 Subtotal 45.87 45.56 87.19 83.08 Public Affairs Department Public Affairs Administration - - 4.41 3.09 Board Services 8.64 5.79 6.29 5.87 Public Information Office 6.33 9.69 7.72 7.12 _ Legislative Advocacy and Grants - - 5.58 3.19 Subtotal 14.97 15.48 24.00 19.27 tow Regional Assets&Services Department Regional Assets&Services Administration - - 12.09 10.82 Collection Facilities Operations&Maint. 22.26 28.84 54.47 44.00 1 Facilities Maintenance Services 46.68 56.04 63.37 57.49 Subtotal 68.94 84.88 129.93 112.31 Human Resources Department Human Resources Administration 8.85 10.56 6.81 6.24 Employee Development/Training 5.23 8.62 16.94 11.46 WW Safety and Health 9.43 12.94 19.16 15.43 Work Force Support Services 6.41 6.39 13.55 9.90 Employee and Labor Relations - - 2.19 2.22 Subtotal 29.92 38.51 58.65 45.25 Technical Services Department Technical Services Administration 8.74 14.92 10.28 10.37 Environmental Assessment 40.77 25.18 33.99 26.94 Environmental Sciences Laboratory 48.42 58.32 59.84 58.94 Source Control 39.31 48.37 57.30 50.72 tow Environmental Compliance Services 16.51 28.36 84.82 56.43 Subtotal 153.75 175.15 246.23 203.40 Engineering Department Engineering Administration 4.26 5.28 5.77 5.73 6" Planning 14.00 17.39 48.22 39.92 Project Management Office 13.80 17.21 20.85 22.16 Engineering and Construction 53.59 65.39 81.99 72.45 Subtotal 85.65 105.27 156.83 140.26 Operations&Maintenance Department Operations&Maintenance Administration 5.00 7.27 8.66 11.40 O&M Process Engineering 16.03 20.68 26.77 21.95 Plant No. 1 Operations 147.91 151.44 168.58 192.25 Plant No.2 Operations 203.84 213.56 226.68 262.13 Mechanical Maintenance&Power Production 133.52 150.90 144.84 125.27 Instrumentation&Electrical Maintenance 68.12 74.60 77.08 76.12 Subtotal 574.42 618.45 652.61 689.12 6.4 Information Technology Department Information Technology Administration 2.89 3.52 4.78 4.50 -- Customer&Network Support 27.11 38.59 47.74 34.87 Programing&Database Systems 16.70 17.72 19.78 22.34 Process Controls Integration 14.27 19.12 21.10 21.31 Subtotal 60.97 78.95 93.40 83.02 Total Operating Expenses 1,054.37 1,183.84 1,467.12 1,387.03 Cost Allocation (201.36) (295.36) (176.27) (182.49) 6w Collection System Operating Costs 114.86 174.35 n/a nla Net Operating Requirements 967.87 1,062.83 1,290.85 1,204.54 Collection,Treatment,&Disposal Revenues (29.19) (43.88) (44.92) (54.05) Net Operating Expenses $ 938.68 $ 1,018.95 $ 1,245.93 $ 1,150.49 Section 2-Page 2 Im Operating Budget Review Comparison of Expenses by Department "w For the Three Months Ended September 30, 2005-06 9130103 9130/04 Year to Date Budget% vow Department and Division Actual Actual Budget 9/30/05 Realized General Manager's Department General Management Administration $ 453,992 $ 470,514 $ 1,668,150 $ 250.696 15.03% Finance Department °�" Finance Administration 266,656 75,597 548,540 129,940 23.69% Accounting 418,584 477,762 4,936,900 1,128,801 22.86% Contracts,Purchasing,&Materials Mgmt. 362,055 439,558 2,471,300 580,376 23.48% Subtotal 1,047,295 992,917 7,956,740 1,839,117 23.11% on Public Affairs Department Public Affairs Administration - - 402,090 68,316 16.99% Board Services 197,375 126,210 574.080 129.994 22.64% N d Public information Office 144,619 211,255 704,420 157,721 22.39% Legislative Advocacy and Grants - - 508,800 70,685 13.89% Subtotal 341,994 337,465 2,189,390 426,716 19.49% Regional Assets&Services Department Regional Assets&Services Administration - - 1,103,400 239,559 21.71% .w Collection Facilities Operations&Maint. 508,192 628,509 4,970,760 974,051 19.60% Facilities Maintenance Services 1,065,728 1,221,181 5,782,800 1,272,602 22.01% Subtotal 1,573.920 1,849.690 11,856,960 2,486.212 20.97% VW Human Resources Department Human Resources Administration 202,042 230,139 621,070 138,229 22.26% Employee Developmentrrraining 119,350 187,935 1,546,120 253.786 16.41% Safety and Health 215,415 282,033 1,748,800 341.631 19.54% am Work Force Support Services 146,349 139.243 1,236,410 219,195 17.73% Employee&Labor Relations - - 199,460 49,082 24.61% Subtotal 683,156 839,350 5,351,860 1,001,923 18.72% Technical Services Department am Technical Services Administration 199,496 325,236 938.100 229,492 24.46% Environmental Assessment 930,760 548,738 3,101,990 596,351 19.22% Environmental Sciences Laboratory 1,105,518 1,270,914 5,460,000 1,304,713 23.90% Source Control 897,476 1,054,131 5,228,920 1,122.769 21.47% no Environmental Compliance Services 376,858 617,951 7,740,040 1,249,142 16.14% Subtotal 3,510,108 3,816,970 22,469,050 4,502,467 20.04% Engineering Department Engineering Administration 97,362 115,140 526,760 126,904 24.09% Planning 319,537 379,032 4,400,450 883.750 20.08% Project Management Office 315,161 374,961 1,902,510 490,506 25.78% Engineering and Construction 1.223,643 1,425,129 7,481,220 1,603,897 21.44% Subtotal 1,955,703 2,294,262 14,310,940 3,105,057 21.70% Operations&Maintenance Department Operations&Maintenance Administration 114,269 158,350 789,830 252,349 31.95% O&M Process Engineering 366,023 450,751 2,442,360 485,969 19.90% Plant No. 1 Operations 3,376,981 3,300,414 15,383,250 4,256,021 27.67% .r Plant No.2 Operations 4,653,737 4,654,143 20,684,210 5,802,999 28.06% Mechanical Maintenance&Power Production 3,048,528 3,288,488 13,216,630 2,773,110 20.98% Instrumentation&Electrical Maintenance 1,555,201 1,625,766 7.033,940 1,685,109 23.96% Subtotal 13,114,739 13,477,912 59,550,220 15,255,557 25.62% Information Technology Department Information Technology Administration 66,096 76,618 436,400 99,666 22.84% Customer&Network Support 619,008 841.014 4,356,300 771,853 17.72% Programing&Database Systems 381,310 386,158 1.805,000 494,636 27.40% tl•+ Process Controls Integration 325,911 416,574 1,925.830 471,654 24.49% Subtotal 1,392,325 1,720,364 8,523,530 1,837,809 21.56% Total Operating Expenses 24,073,232 25,799,444 133,876.840 30,705,554 22.94% Cost Allocation (4,597,551) (6,436,853) (16,085,900) (4,040,141) 25.12% Collection System Operating Costs 2,622,526 3,799.659 n/a n/a n/a Net Operating Requirements 22,098,207 23,162,250 117,790,940 26,665,413 22.64% Collection,Treatment,&Disposal Revenues (666,483) (956,281) (4,100,000) (1,196,434) 29.18% Net Operating Expenses $ 21,431,724 $ 22,205.969 $ 113.690,940 $ 25.468,979 22.40% Section 2-Page 3 2005-06 First Quarter Report Summary of Collection,Treatment,& Disposal Expenses by Major Category For the Three Months Ended September 30,2005 Expense Expense Increase Increase Percent Budget Through Through (Decrease) (Decrease) Budget Remaining Description 2005-06 9130105 9130104 $ % Realized Budget i Salary&Wages $ 53,707,700 $ 12,699,096 $ 11,406,688 $ 1,292,408 11.33% 23.64% $ 41,008,604 L_! Employee Benefits 15,860,100 3.957,846 3,408,368 549,478 16.12% 24.95% 11,902,254 - Administrative Expenses 1,262,250 194,349 341,682 (147,333) -43.12% 15.40% 1,067,901 Printing&Publication 525,960 99,271 67,051 32,220 48.05% 18.87% 426,689 Training&Meetings 1,327,750 193,248 158,649 34,599 21.81% 14.55% 1,134.502 Operating Expenses 20,505,440 4,222,425 3,475,622 746.903 21.49% 20.59% 16,283,015 Contractual Services 14,386,470 3,447,535 2,962,135 485.400 16.39% 23.96% 10.938,935 Professional Services 4,412,540 654.223 885,888 (231,665) -26.15% 14.83% 3,758,317 - Research&Monitoring 1,411,610 217,229 292.814 (75,585) -25.81% 15.39% 1,194,381 *V Repairs&Maintenance 8,306,460 1,464,956 2,137,830 (672,874) -31.47% 17.64% 6,841,504 Utilities 6,072,100 2,428,111 1,641,025 787,086 47.96% 39.99% 3,643,989 law Other Materials,Supplies, and Services 6,098.460 1,127,265 550,163 577,102 104.90% 18.48% 4.971,195 Net Cost Allocation (16,085,900) (4,040,141) (4,165,565) 125,424 -3.01% 25.12% (12,045,759) Net Operating Requirements 117,790,940 26.665,413 23,162,250 3,503,163 15.12% 22.64% 91.125,527 L"W Collection,Treatment, &Disposal Revenues (4,100,000) (1,196,434) (956,281) (240,153) 25.11% 29.18% (2,903,566) I.0 Net Operating Expenses $ 113.690,940 $ 25,468,979 $ 22,205,969 $ 3,263,010 14.69% 22.40% $ 88,221,961 Gallonage Flow(MG) 91,250.00 22,137.51 21,793.00 344.51 1.58% Gallonage Flow(MGD) 250.00 240.63 236.88 3.75 1.58% Gallonage Flow($'s/MG) $1,245.93 $1,150.49 $1.018.95 $131.54 12.91% , i Section 2-Page 4 Operating Budget Review +� Summary of Treatment&Disposal Revenues For the Three Months Ended September 30,2005 r % Revenue Revenue Revenue Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2005-06 9130105 9130/05 Budget 9130104 $ % Inter District Sewer Use $ 2,500,000 $ 670,397 26.82% $ 1,829,603 $ 527,700 $ 142,697 27.04% Wastehauler 500,000 169,273 33.85% 330,727 141,268 28,005 19.82% Sludge Disposal 725,000 210,900 29.09% 514,100 174,300 36,600 21.00% CNG Sales 45,000 64,018 142.26% (19,018) 17,025 46,993 276.02% Other Sales - 4,665 N/A (4,665) 42 4,623 11007.14% Rents&Leases 30,000 7,540 25.13% 22,460 5,397 2,143 39.71% wd General Non-Operating 100,000 14,171 14.17% 85.829 40,145 (25,974) -64.70% Power Sales 200,000 55.470 27.74% 144,530 50,404 5,066 10.05% �+ Total $ 4,100,000 $ 1,196,434 29.18% $ 2,903,566 $ 956,281 $ 240.153 25.11% vd r Summary of Other Revenues For the Three Months Ended September 30,2005 Revenue Revenue Revenue Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2005.06 9/30105 9130105 Budget 9130/04 $ % Service Fees $ 141,652,000 $ 1,698,546 1.20% $ 139,953,454 $ 1,348,578 $ 349,968 25.95% tod User Fees(Permits) 12,811,000 4,537,782 35.42% 8,273,218 3,129,563 1,408,219 45.00% Capital Facilities Capacity Charges 8,769,000 543,788 6.20% 8,225,212 753,148 (209,360) -27.80% 'mod Capacity Rights 2,600,000 - 0.00% 2,600,000 - - N/A Capital Assessments 21,562,000 2,451,903 11,37% 19,110.097 4,451,677 (1,999,774) -44.92% Debt Proceeds 200,000,000 - 0.00% 200,000,000 - - N/A Wo Property Taxes 36,019,000 3,123,818 8.67% 32,895,182 3,212,279 (88,461) -2.75% Interest Earnings 19,017,000 2,115,331 11.12% 16,901,669 6,628,267 (4,512.936) -68.09% Other Revenue 5,992,000 16,206 0.27% 5,975.794 182,460 (166,254) -91.12% Total $ 448,422.000 $ 14,487,374 3.23% $ 433,934,626 $ 19,705,972 $ (5,218.598) -26.48% ud Section 2-Page 5 IK' 2005-06 First Quarter Report Summary of Collection,Treatment,&Disposal Expenses by Line Item For the Three Months Ended September 30,2005 Expense %Expense Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2005-06 9130105 9130105 Budget 9130104 $ % Salaries.Wages&Benefits Salaries&Wages $ 53,707,700 $ 12,699,096 23.64% $ 41,008,604 $ 11,406,688 $ 1,292,408 11.33% Employee Benefits t� Retirement 9,398,700 2,409,759 25.64% 6,988,941 1,918,270 491,489 25.62% Group Insurances 5,782.700 1,411,388 24.41% 4,371,312 1,274,691 136.697 10.72% - Tuition&Certification Reimb 150,000 17,337 11.56% 132.663 18,741 (1,404) -7.49% Uniform Rental 85,000 13,067 15.37% 71.933 16,556 (3,489) -21.07% Workers'Compensation 425.000 106,251 25.00% 318,749 175,000 (68,749) -39.29% Unemployment Insurance 18,700 44 0.24% 18,656 5,110 (5,066) -99.14% Total Benefits 15,860,100 3,957,846 24.95% 11,902,254 3,408,368 549,478 16.12% Salaries,Wages&Benefits 69.567,800 16,656,942 23.94% 52,910,858 14,815,056 1.841,886 12.43% 6w Matl,Supply.&Services Administrative Expenses Memberships 253,520 79,875 31.51% 173.645 144,214 (64,339) -44.61% Office Exp-Supplies 149,500 19,029 12.73% 130.471 26,668 (7,639) -28.64% Postage 73,530 5,010 6.81% 68,520 15,176 (10,166) -66.99% _. Books&Publications 51,650 6,715 13.00% 44,935 7,160 (445) -6,22% Forms 3,350 123 3.67% 3.227 1,851 (1,728) -93.35% yv Small Computer Items 592,800 65,387 11,03% 527,413 129,392 (64,005) 49.47% Minor Furniture&Fixtures 137.900 18,210 13.21% 119,690 17,221 989 5.74% —- Subtotal 1,262,250 194,349 15.40% 1,067,901 341,682 (147,333) 43.12% Printing&Publication law Repro-In-House 395,750 77,830 19.67% 317,920 47,418 30,412 64.14% Printing-Outside 85,350 4,604 5.39% 80,746 12,777 (8,173) -63.97% Notices&Ads 42,800 16,664 38.93% 26,136 6,343 10,321 162.71% Photo Processing 2,060 173 8.40% 1,887 513 (340) -66.28% iru Subtotal 525,960 99,271 18.87% 426,689 67,051 32,220 48.05% Training&Meetings Meetings 327,250 40,690 12.43% 286,560 46,629 (5,939) -12.74% Training 1,000,500 152,558 15.25% 847.942 112.020 40,538 36.19% ww Subtotal 1,327,750 193,248 14.55°/a 1,134,502 158,649 34.599 21.81% Operating Expenses - Chemical Coagulants 5.677,400 1,230,642 21.68% 4,446,758 1,038,862 191,780 18.46% Odor Control 6,059,000 792,374 13.08% 5,266,626 486,790 305,584 62.78% t►a Disinfection 6,771,000 1,736,206 25.64% 5,034,794 1,546,982 189,224 12.23% Chemicals-Misc&Cogen 41,000 7,258 17.70% 33,742 2,321 4,937 212.71% Gasoline,Diesel&Oil 460,330 84,474 18.35% 375,856 55,663 28,811 51.76% Tools 301,980 48,805 16.16% 253,175 50,424 (1,619) -3.21% ►� Safety equipment/tools 269,000 77,010 28.63% 191,990 37,311 39,699 106.40% Solv,Paints&Jan.Supplies 72,350 28,378 39.22% 43,972 27,052 1,326 4.90% -- Lab Chemicals&Supplies 651.420 182,148 27.96% 469,272 189,617 (7,469) -3.94% Other Operating Supplies 171,960 34,089 19.82% 137,871 34,462 (373) -1.08% Property Tax Fees 30,000 1,041 3.47% 28,959 6,038 (4,997) -82.76% Subtotal 20,505,440 4,222,425 20.59% 16,283,015 3,475,522 746.903 21.49% Contractual Services Solids Removal 10.023,840 2.753,741 27.47% 7,270,099 2,314.694 439,047 18.97% Other Waste Disposal 799,950 106,147 13.27% 693,803 139,440 (33,293) -23.88% Groundskeeping 220.860 76,240 34.52% 144,620 35,727 40,513 113.40% Janitorial 407,900 87.678 21.49% 320,222 80.355 7.323 9.11% Outside Lab Services 228,400 30.294 13.26% 198,106 22,438 7.856 35.01% Oxygen Plant Oper 302,000 73,500 24.34% 228,500 81,294 (7,794) -9.59% County Service Fee 450,000 51,239 11.39% 398,761 50,299 940 1.87% Temporary Services 320,300 38,322 11.96% 281,978 68,498 (30,176) -44.05% ww Security Services 297,470 52,466 17.64% 245,004 65,018 (12,552) -19.31% Other 1.335,750 177,908 13.32% 1,157.842 104,372 73,536 70.46% Subtotal 14,386,470 3,447,535 23.96% 10,938,935 2,962,135 485,400 16.39% (Continued) Section 2-Page 6 Operating Budget Review Summary of Expenses by Line Item For the Three Months Ended September 30,2005 Expense %Expense Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2005-06 9/30105 9130105 Budget 9130104 $ % Continued: Professional Services Legal 638,000 104,655 16.40% 533,345 304,287 (199,632) -65.61% too Audit&Accounting 180,000 15,316 8.51% 164,684 37,304 (21,988) -58.94% Engineering 432,330 24.888 5.76% 407,442 86,832 (61,944) -71.34% Enviro Scientific Consulting 634,300 12,960 2.04% 621,340 130,940 (117,980) -90.100/0 PeopleSoft Support 276,460 140,800 50.93% 135,660 47,780 93,020 194.68% Software Prgm Consulting 126,800 13,138 10.36% 113,662 21,164 (8,026) -37.92% Advocacy Efforts 291,000 59,114 20.31% 231,886 64,577 (5,463) -8.46% Industrial Hygiene Services 50,000 - 0.00% 50,000 3,707 (3,707) -100.00% Labor Negotiation Services 10,000 - 0.00% 10,000 - - NIA Other 1,773,650 283,352 15.98% 1.490,298 189,297 94,055 49.69% Subtotal 4,412,540 654,223 14.83% 3,758,317 885,888 (231,665) -26.15% Research&Monitoring Environmental Monitoring 727,400 112,739 15.50% 614,661 149,400 (36,661) -24.54% Air Quality Monitoring 168,000 8,490 5.05% 159.510 12,949 (4,459) -34.44% Research 516,210 96,000 18.60% 420,210 130.465 (34.465) -26.42% Subtotal 1.411,610 217,229 15.39% 1,194,381 292,814 (75,585) -25.81% Repairs&Maintenance Materials&Services 6,721,960 1,231,301 18.32% 5,490,659 1,819,828 (588,527) -32.34% Svc.Mtc.Agreements 1,584,500 233,655 14.75% 1,350,645 318,002 (84,347) -26.52% Subtotal 8,306.460 1,464,956 17.64% 6,841,504 2,137,830 (672,874) -31.47% �y Utilities Telephone 189,000 27,104 14.34% 161,896 39,895 (12.791) -32.06% Diesel For Generators 25,000 2,833 11.33% 22,167 3,323 (490) -14.75% Natural Gas 2,447,100 300,142 12.27% 2,146,958 618,246 (318,104) -51.45% esd Power 2,132,000 1,745,039 81.850/6 386,961 680,905 1,064,134 156.28% Water 1,279,000 352,993 27.60% 926.007 298,656 54,337 18.19% Subtotal 6,072,100 2,428,111 39.99% 3,643,989 1.641,025 787,086 47.96% Other Operating Supplies Outside Equip Rental 30,280 1,234 4.08% 29,046 31,577 (30,343) -96.09% Insurance Premiums 25,000 - 0.00% 25,000 - - N/A Prop&Gen Liab Insurance 2,160,000 540,000 25.00% 1,620,000 275,001 264,999 96.36% Freight 107.330 25,941 24.17% 81,389 22,542 3,399 15.08% ud Misc.Operating Expense 119,950 11,881 9.90% 108,069 77,248 (65,367) -84.62% Uncoliectible Accounts 5,000 - 0.00% 5,000 3,554 (3,554) -100.00% Regulatory Operating Fees 426,700 136,967 32.10% 289,733 108,313 28,654 26.45% Subtotal 2,874,260 716,023 24.91% 2,158,237 518,235 197,788 38.17% 'W General Manager Contingency &Reappropriations 469,350 - 0.00% 469,350 - - NIA Other Non-Oper Expense 2,754,850 411,242 14.93% 2,343,608 31,928 379,314 1188.03% MW Total Materials, Supplies&Services 64,309,040 14,048,612 21.85% 50,260,428 12,512,759 1,535.853 12.27% ..r Total Expenditures 133,876,840 30,705,554 22.94% 103,171,286 27,327,815 3,377,739 12.36% Cost Allocation (16,085,900) (4,040,141) 25.12% (12,045,759) (4,165,565) 125,424 -3.01% Net Operating Requirements 117,790,940 26,665,413 22.64% 91.125,527 23.162,250 3,503,163 15.12% ara Collection,Treatment, &Disposal Revenue (4,100,000) (1,196,434) 29.18% (2,903,566) (956,281) (240,153) 25.11% Net Operating Expense $ 113,690,940 $ 25.468,979 22.40% $88,221,961 $ 22,205,969 $ 3,263,010 14.69% rd r Section 2-Page 7 2005-06 First Quarter Report Summary of Collection,Treatment, &Disposal Expenses by Process 6W For the Three Months Ended September 30,2005 Increase Increase Actual Actual (Decrease) (Decrease) 9130105 9/30104 $ % w Process: Preliminary Treatment $ 1,794,598 $ 1,508,376 $ 286,222 18.98% Primary Treatment 3,004,414 2.234,712 769,702 34.44% Secondary Treatment 1,621,701 942,021 679,680 72.15% Cryogenic Plant(Plant 2) 212,824 56,057 156,767 279.66% - Effluent Disposal 354,286 134,633 219,653 163.15% Solids Handling 7,467,410 5,973,664 1,493,746 25.01% Cogeneration 2,052,881 2,765,478 (712,597) -25.77% i Utilities 3,215,340 3,277,127 (61,787) -1.89% Electrical Distribution 234,547 384,803 (150,256) -39.05% Miscellaneous Buildings 1,128,405 903,454 224,951 24.90% Air Quality 1,641,651 979,509 662,142 67.60% Laboratory 1,714,426 2,014,543 (300,117) -14.90% Collections 2,222,930 1,987,873 235,057 11.82% + Net Operating Requirements 26,665,413 23,162,250 3,503,163 15.12% Less: Revenues (1,196,434) (956,281) (240,153) 25.11% �+ Net Joint Operating Expenses $ 25,468,979 $ 22,205,969 $ 3,263,010 14.69% W 6.i iw) Section 2-Page 8 Operating Budget Review Staffing Trends Full Time Equivalents September 30, 2005 ,r 700 6" 650 629 .. i 598 600 1 574 567 i .. 550 500 n.r 450 — T 6/30/2002 6/30/2003 6/30/2004 6/30/2005 9/30/2005 .r ■Actual 0 Vacant At September 30, 2005, the total head count was 606 employees, or a full time equivalency of 596. Section 2 - Page 9 w 2005-06 First Quarter Report This Page Intentionally Left Blank 6w 6w Section 2-Page 10 6w CIP Review Capital Improvement Program By Type and Funding Source For the Three Months Ended September 30, 2005 Miss. Process Supper Related Protects Projects 4% 1% Water Management Projects 37%. Ocean Outfall Systems 6% Utility Systems 3% Solids Handling&Digestion 2% .tee Odor Control Projects 2% Strategic&Master Planning 1% Prior Year Treatment Projects 1% Equipm�:nt t';6 Primary Treatment 4% 6 Headworks 1% Secondary Treatment 109, Research&Developm=_nt Plant 1% Collections Automation Facilities 25% Total Capital Improvement Expenditure - $42,163,470 ReplacemenYRehabi lilation $14.639.414 35o/ Support $773,745 2% Improved Treatment $19.594,429 46% Additional Capacity $7,155,882 17% Total Capital Improvement Expenditure - $42,163,470 Section 3 - Page 1 FY 2005-06 First Quarter Report Summary of Capital Improvement Construction Requirements-Current Year , For the Three Months Ended September 30,2005 2005-06 2005-06 2005-06 Cashflow Actual at Projected ►�+ Budget 9130105 Outlay Collection System Improvement Prolects Collections Greenville Sullivan/Raiff Street Manhole Rehab $ - $ - $ Santa Ana Trunk Sewer Rehab. - 19,591 290,200 Lower Main-Broadway MH Rehabilitation - - - Continuous Feed Chemical Treatment Facility 875,000 56,165 189,800 6..1 Carbon Canyon Sewer and Pump Station Abandonment 2,117,000 57.217 254,500 Santa Ana River Interceptor Relief Sewer - - - Santa Ana River Interceptor Realignment and Prot. 648,000 107,118 313,500 Abandonment of the Existing SARI in SA River - - - t Abandonment of Yorba Linda Pump Station - - - Taft Branch Improvements - - Atwood Subtrunk Improvements - - Lower Santa Ana River Interceptor Improvements - - - WW Euclid Relief Improvements-Reach"A" - - - Euclid Relief Improvements-Reach"B" - - - i Santa Ana River Relief Sewer,Reach B - - - Newhope-Placentia&Cypress Trunk Replacements 568,000 15,211 300,400 Upper 8 Lower Newhope-Placentia MH Rehabilitation - - - SARI and South Anaheim Interceptor MH Rehabilitation - - - Rehabilitate District Siphons by Adding Air Jumper 216,000 221,057 724,700 Green River Meter Station - - - Trask Branch of the Hoover-Western Subtrunk - - - Rehabilitation of the Westside Pump Station 645,000 29,155 508,500 Westside Relief Interceptor/Los Alamitos MH Rehab - - - Rehabilitation of the Seal Beach and Edinger PS 162,000 12,174 210,300 Miller-Holder Trunk Condition Assessment 250,000 - 250,000 Rehabilitation of Magnolia Trunk Sewer 1,000,000 14,139 859,800 Balboa Trunk Sewer Rehabilitation - - - Replacement of the Bitter Point Pump Station 965,000 158,924 935,300 Replacement of the Rocky Point Pump Station 683,000 60,564 529,100 Rehabilitation of the 14th Street Pump Station 3,411,000 419,462 4,746,400 Rehabilitation of the"A"Street Pump Station 3,220,000 986,870 4,707,900 Rehabilitation of the Bay Bridge Pump Station(95%) 76,000 30,895 75,000 Crystal Cove Pump Station Interior Rehabilitation 181,000 5,232 63,200 Bitter Point Force Main Rehabilitation 3,163,000 77,283 432,100 low Newport Force Main Condition Assessment 650,000 - 650,000 Bayside Drive Improvement 109,000 3,856 36,600 Realign&Rehab of Big Canyon Offsite Trunk Sewer 700,000 5,061 700,000 Sunflower Interceptor Manhole Rehab 2,093,000 17,355 2,099,000 LW Lemon Heights Subtrunk Street Rehabilitation 155,000 7.206 91,800 Gisler-Redhill Trunk Sewer Relocation-Phase 1 787,000 26,838 176,400 Gisler-Redhill Trunk Improvements,Reach A 3,932,000 194,377 4,128,000 Gisler-Redhill System Improvements,Reach B 418,000 8,538 286,800 Orange Trunk Improvements 173,000 9,573 145,200 West Trunk Improvements 36,000 12,455 113,000 Gisler-Redhill/North Trunk Improvements 9,287,000 4.265,759 7,324,000 Rehabilitation of the College Ave Pump Station 652,000 39,932 670,800 Rehabilitation of the MacArthur Pump Station 543,000 53,361 336,500 _ Lower Gisler-Redhill Trunk Relocation and MH Rehab - - - Upper Gisler-Redhill MH Rehabilitation&Campus Dr - - Edinger/Bolsa Chica Trunk Improvements - - - Coast Trunk Sewer Rehabilitation 1,776,000 178,730 2,099,200 Warner Sewer Siphon 649,000 3,683 3,700 (Continued) Section 3-Page 2 ow CIP Review UW Summary of Capital Improvement Construction Requirements-Current Year For the Three Months Ended September 30, 2005 2005-06 2005-06 2005-06 �a Cashflow Actual at Projected Budget 9130/05 Outlay (Collections continued) ,N OCTA Sewer Relocation Projects 108,000 16,813 48,700 Permanent Odor Control Facilities - - - North County Collections Yard 10,500.000 78,916 10,500,000 Facilities Engineering Projects-Collections 195,000 18,764 169,600 Replacement of the Ellis Ave.Pump Station 2.450,000 109,483 10,071,800 Bushard Trunk Sewer Rehabilitation 7,774.000 3,563,960 10,498,200 Pump Station P&IDs and Equipment Tagging 290,000 - 290,000 Additional Charges to CIP Closed at 6/30/05 - 20,477 76,900 Subtotal-Collections 61,457,000 10.906,194 65,906,900 Revenue Area 14 Rehabilitation of the Bay Bridge Pump Station(5%) 4,000 1,626 4,000 Additional Charges to CIP Closed at 6130/05 - - Subtotal-Revenue Area 14 4,000 1,626 4,000 ,sy Total Collection System Improvement Projects 61,461,000 10,907,820 65,910,900 Treatment&Disposal Projects Headworks Headworks Rehabilitation and Expansion at Plant No. 1 - - - Headworks Rehabilitation/Refurbishment 393,000 37,655 301,300 Headworks Improvements at Plant No.2 10,366,000 564,863 11,184,400 rr Headworks Construction Trailers at Plant No.2 1,017,000 L. 986,500 Subtotal-Headworks 11,776,000 602,518 12.472,200 Primary Treatment Primary Clarifiers 16-31&Related Facilities 7,501,000 1,239,714 6,796,300 Primary Treatment Rehabilitation/Refurbishment 1,912,000 565,092 4,023,200 Subtotal-Primary Treatment 9,413,000 1,804,806 10,819.500 Secondary Treatment New Secondary Treatment System at Plant No.1 7,911,000 1,088,233 10,126,400 r Trickling Filter Rehabilitation and New Clarifiers 9,255,000 1,691,058 6,529,400 Activated Sludge Plant Rehabilitation 14,846,000 197,453 14,151,700 Secondary Treatment Monitoring&Control System Upgrade 2,748.000 370,269 1,654,700 Rehabilitation of Activated Sludge Plant at Plant 2 734,000 95,238 920,100 Trickling Filters at Plant No.2 6.558,000 857,092 6,152,900 Subtotal-Secondary Treatment 42,052,000 4,299,343 39,535,200 Solids Handling&Digestion Sludge Digester Rehabilitation at Plant 1 2,879,000 279,501 1,794,200 Sludge Dewatering and Odor control at Plant 1 5,651,000 195,962 3,785,800 Truck Wash and Dewatering Beds at Plant No.1 692,000 16,029 272,100 Solids Storage and Truck Loading Facility 668,000 48,703 962,900 Rehabilitation of Solids Storage Silos A&B at P2 - - - Piant No.2 Primary Sludge Feed System Project 2,058,000 302,688 2,238,700 Digester Rehabilitation at Plant No.2 324,000 - 337,900 Sludge Dewatering and Odor Control at Plant 2 66,000 - 208,300 Tule Ranch Biosolids Management Needs 64,000 2,657 32,500 Subtotal-Solids Handling&Digestion 12,402,000 845,540 9,632,400 (Continued) Section 3- Page 3 FY 2005-06 First Quarter Report Summary of Capital Improvement Construction Requirements-Current Year For the Three Months Ended September 30,2005 2005-06 2005-06 2005-06 Cashflow Actual at Projected low Budget 9130105 Outlay Ocean Outfall Systems Peak Flow Management 287,000 49,288 119,500 Effluent Pumping Station Annex 21.525,000 2,723,124 11,182,500 OOBS Rehabilitation Assessment Study 200,000 455 200,000 NPDES Permit Renewal 60.000 2,478 25,000 Subtotal-Ocean Outfall Systems 22.072.000 2,775,345 11,527,000 Utility Systems Arc Flash Hazard Evaluation 26,000 14,645 30,200 Interplant Gas Line Rehabilitation 1,018,000 60,995 1,189,900 Generator Bus Split Project at Plant Nos. 1 and 2 274,000 3,502 280,000 Standby Power and Reliability Modifications 1,098,000 258,787 1,713,100 Cable Tray Improvements at Plants 1 &2 655,000 59,541 789,800 Air Quality Improvements 1,924,000 312,471 1,499,100 Central Generation Automation 1.566,000 250,380 1,149,300 Fire Suppression for Servers and Equipment at P1 8 P2 587,000 6,737 628,400 Electrical Power Distribution System Improvements - - - Plant 1 66kV Substation 16,000 33,365 4,657.800 6W Gas Compressor Addition at Plant No.2 1,657,000, 33,117 1,724.700 Electrical Equipment Refurbishment and Protection 1,362,000 57,805 528.900 Plant 1 Plant Water VFD Replacement 968,000 57,038 933.800 Subtotal-Utility Systems 11,151,000 1,148,383 15,125,000 Odor Control Related Projects Rehabilitation of Odor Control Facilities 1,357,000 797,286 2,359.200 Digester Gas Building Odor Control Project 100,000 686 100,000 Lao Odor Control for New Solids Truck Loading Station 150,000 455 150,000 Subtotal-Odor Control Related Projects 1,607,000 798.427 2,609,200 _ Process Related Special Projects Diesel Exhaust Emissions Controls Options Study 237,000 93 237,000 l" Evaluating Fine Screens for Primary Effluent - - - Piant O&M Manual and SOP Project-Phase 1 800,000 12,640 800,000 Corrosion Management 1,247,000 9,899 1,247.000 Special Projects: Anaerobic Baffled Reactor(ABR) 265,000 704 265,000 Special Projects: MicrofiltrationlPrimary Effluent 20,000 - 20,000 Special Projects: Biotrickling Filter(BTF) 130,000 43,986 130,000 Subtotal-Process Related Special Projects 2.699.000 67.322 2,699,000 Plant Automation&Computerization SCADA Historian Replacement 200,000 640 400,000 Time Entry System 220,000 7,546 200,000 Power Monitoring and Control Systems - 23,762 158,200 Fats,Oils,and Grease(FOG)Software 25,000 8,797 25,000 Enterprise Contract Management Solution 175,000 1,949 175,000 Document Management 156,000 - 156,000 Strategic Information Architecture(SIA) 500,000 - 25,000 Intemettintranet Development 100,000 11,331 21,300 CMMS System Replacement 115,000 2,698 115,000 PDS2D Software Replacement 20,000 - 20,000 Environmental Compliance Awareness Program 50,000 29,483 50,000 Citizen Relationship Management(CRM) 100,000 - 5,000 Disaster Recovery 21,000 - 10,000 Geographic Information System 345,000 1,107 150,000 Financial Information System Upgrade 505,000 160,680 210,700 Network Equipment Upgrade 520,000 34 500.100 Subtotal-Plant Automation&Computerization 3,052,000 248,027 2.221,300 6W (Continued) Section 3-Page 4 CIP Review um Summary of Capital Improvement Construction Requirements-Current Year For the Three Months Ended September 30,2005 2005-06 2005-06 2005-06 ro Cashflow Actual at Projected Budget 9130/05 Outlay Miscellaneous&Support Projects ,-W Facilities Engineering Projects-Joint 492,000 13,544 373,000 Facilities Engineering Projects-Plant 1 482,000 248,299 578,100 Facilities Engineering Projects-Plant 2 477,000 192,234 522,300 Area Classification Study Implementation Plan 909,000 745,284 1,389,600 wo Modifications to Existing Mechanical Systems 112,000 - 112,000 Building Rehabilitation/Refurbishment - - - Space Allocation and Interior Renovation 1,239,000 113,320 1,113,900 Laboratory Rehabilitation 1,350,000 18,760 1,240,100 wo Laboratory Refurbishment at Plant No. 1 670.000 15,619 161,800 Regional FOG Control Collection at Plant No.1 - - - Plant No.2 Landscaping Project 90,000 44,788 121,500 ow Small Cap.Equip.Replacement Project 500,000 103,214 500,000 Asset Management Program 950,000 50,822 949,900 Warehouse Reinvention Project 130,000 14,777 130,000 Plant 2 Maintenance Building Modifications 54,000 11,244 57,300 `90 Subtotal-Miscellaneous&Support Projects 7,455,000 1,571,905 7,249,500 Capital Equipment Purchases Groundwater Replenishment System 84,811,000 15,698.907 73,182,300 ~° Long Term Permanent Monitoring Program 648.000 69,411 631.200 Subtotal-Water Management Projects 85,459,000 15,768,318 73,813,500 woo Strategic&Master Planning Collection System Model and Strategic Plan Update 558,000 191,540 453,500 Treatment Plant Strategic Plan Update 815,000 337,115 700,000 Orange County Biosolids Production Siting Study 500,000 8,006 500,000 no Unifying Strategies Implementation 2.060,000 - 2,060,000 Subtotal-Strategic&Master Planning 3.933,000 536,661 3,713,500 Research&Development kw Bioscope Additive to Improve Anaerobic Digestion 150,000 - 150,000 Microsludge Process to Improve Anaerobic Digestion 250,000 250,000 Nitrification/Dentrification Study 150,000 - 150,000 USBR Brine Management Grant Project 50.000 3,395 50,000 Wd Subtotal-Research&Development 600.000 3,395 600,000 Additional Charges to CIP Completed at 6130/05 - 504,474 1,149,200 ,=0 Total Treatment and Disposal Projects 213,671,000 30,974,464 193,166,500 Capital Equipment Purchases 1,978,600 281,186 1,978,600 Total Collections and Treatment&Disposal aW Projects and Capital Equipment Purchases $ 277,110,600 $ 42,163,470 $261.056,000 bw am Section 3- Page 5 FY 2005-06 First Quarter Report Summary of Capital Improvement Construction Requirements-Project Life For the Three Months Ended September 30,2005 Current Total Approved June 30,2005 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2006 Budget Collection System Improvement Protects Collections Greenville Sullivan/Raitt Street Manhole Rehab $ 5,506,000 $ - $ - $ - $ 5,506,000 Santa Ana Trunk Sewer Rehab. 17,057,000 419,472 290,200 709,672 16,347,328 Lower Main-Broadway MH Rehabilitation 2,694,000 - - - 2,694,000 Continuous Feed Chemical Treatment Facility 1,361,000 381,156 189,800 570,956 790,044 Carbon Canyon Sewer and Pump Station Abandonment 7,694,000 981,354 254,500 1,235,854 6,458,146 Santa Ana River Interceptor Relief Sewer 26,062.000 277,423 - 277,423 25,784,577 Santa Ana River Interceptor Realignment and Prot. 9,584,000 2,586,207 313,500 2,899,707 6,684.293 Abandonment of the Existing SARI in SA River 13,383,000 151 - 151 13,382,849 Abandonment of Yorba Linda Pump Station 1,323,000 - - - 1,323,000 Taft Branch Improvements 4,786,000 9,386 - 9,386 4,776,614 Atwood Subtrunk Improvements 5,140,000 110,352 - 110,352 5,029,648 Lower Santa Ana River Interceptor Improvements 63,372.000 - - - 63,372,000 Euclid Relief Improvements-Reach"A" 29,852,000 13,510 - 13,510 29,838,490 Euclid Relief Improvements-Reach"B" 20,996,000 - - - 20,996,000 Santa Ana River Relief Sewer,Reach B 63,738,000 - - - 63,738,000 Newhope-Placentia&Cypress Trunk Replacements 43,034,000 - 300,400 300,400 42,733,600 Upper&Lower Newhope-Placentia MH Rehabilitation 6,471,000 - - - 6,471,000 SARI and South Anaheim Interceptor MH Rehabilitation 4,573,000 - - - 4.573,000 Rehabilitate District Siphons by Adding Air Jumper 6,501,000 294,197 724,700 1,018,897 5,482,103 Green River Meter Station 704,000 - - - 704,000 Trask Branch of the Hoover-Western Subtrunk 2,384,000 - - - 2.384.000 Rehabilitation of the Westside Pump Station 7,300,000 930,616 508,500 1,439,116 5.860,884 Westside Relief Interceptor/Los Alamitos MH Rehab 30.517,000 - - - 30,517,000 Rehabilitation of the Seal Beach and Edinger PS 10.773,000 16,528 210,300 226,828 10,546,172 Miller-Holder Trunk Condition Assessment 250,000 321 250,000 250,321 (321) Rehabilitation of Magnolia Trunk Sewer 77,583,000 - 859,800 859,800 76,723,200 Balboa Trunk Sewer Rehabilitation 7.873,000 - - - 7,873.000 Replacement of the Bitter Point Pump Station 29,019,000 1,645.664 935.300 2,580,964 26,438,036 Replacement of the Rocky Point Pump Station 24,610.000 3.222.723 529,100 3,751,823 20,858.177 Rehabilitation of the 14th Street Pump Station 8,888,000 3,260,460 4,746,400 8,006,860 881.140 60 Rehabilitation of the"A"Street Pump Station 9,083,000 4.063,489 4,707,900 8,771,389 311,611 Rehabilitation of the Bay Bridge Pump Station(95%) 18,930,650 326,987 75,000 401,987 18,528,663 Crystal Cove Pump Station Interior Rehabilitation 3,683,000 1,409 63.200 64,609 3,618,391 6,w Bitter Point Force Main Rehabilitation 19,652,000 1,610,273 432,100 2,042,373 17,609.627 Newport Force Main Condition Assessment 650,000 586 650,000 650,586 (586) Bayside Drive Improvement 2,436,000 - 36,600 36,600 2,399,400 Realign&Rehab of Big Canyon Offsite Trunk Sewer 2,280,000 - 700,000 700,000 1,580,000 Lao Sunflower Interceptor Manhole Rehab 3,422,000 1.055,781 2,099.000 3,154,781 267,219 Lemon Heights Subtrunk Street Rehabilitation 2,543,000 122,068 91.800 213,868 2,329,132 Gisler-Redhill Trunk Sewer Relocation-Phase 1 1,160,000 156,315 176.400 332,715 827.285 Gisler-Redhill Trunk Improvements,Reach A 7,067,000 2,591,513 4,128.000 6,719,513 347,487 Gisler-Redhill System Improvements,Reach B 6,893,000 556,104 286.800 842,904 6.050,096 Orange Trunk Improvements 5,298,000 5,252,189 145.200 5,397,389 (99,389) West Trunk Improvements 453,000 136,200 113,000 249,200 203,800 Gisler-Redhill/North Trunk Improvements 17,492,000 8,311,086 7,324,000 15,635,086 1,856,914 Rehabilitation of the College Ave Pump Station 7.403,000 395,153 670,800 1,065,953 6,337,047 Rehabilitation of the MacArthur Pump Station 3.678,000 306,475 336,500 642,975 3,035,025 Lower Gisler-Redhill Trunk Relocation and MH Rehab 11,185,000 - - - 11,185,000 Upper Gisler-Redhill MH Rehabilitation&Campus Dr 2,995,000 - - - 2,995,000 Edinger/Bolsa Chica Trunk Improvements 4,176,000 - - - 4,176,000 Coast Trunk Sewer Rehabilitation 20,964,000 835,548 2,099,200 2,934,748 18,029,252 Warner Sewer Siphon 1.179,000 15,568 3,700 19,268 1,159,732 Is+ (Continued) Section 3- Page 6 elm CIP Review UW Summary of Capital Improvement Construction Requirements-Project Life For the Three Months Ended September 30,2005 Current Total ow Approved June 30,2005 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2006 Budget (Collections continued) wo OCTA Sewer Relocation Projects 300,000 124,135 48,700 172,835 127.165 Permanent Odor Control Facilities 3,848,000 - - - 3,848,000 North County Collections Yard 10,500,000 - 10,500,000 10,500,000 - "No Facilities Engineering Projects-Collections 5,400,000 342 169,600 169,942 5,230,058 Replacement of the Ellis Ave.Pump Station 57,481,000 2,685,621 10,071,800 12,757,421 44,723,579 Bushard Trunk Sewer Rehabilitation 53,580,000 24,104,948 10,498,200 34,603,148 18,976,852 Pump Station P&IDs and Equipment Tagging 720,000 - 290,000 290,000 430,000 Additional Charges to CIP Closed at 6/30/05 241,500 34,553 76,900 111,453 130,047 Subtotal-Collections 817,721,150 66,835,863 65,906,900 132,742,763 684,978,387 Headworks Rehabilitation of the Bay Bridge Pump Station(5%) 996,350 17,209 4,000 21,209 975,141 Additional Charges to CIP Closed at 6/30105 - - - _ Subtotal-Revenue Area 14 996,350 17,209 4,000 21,209 975,141 Total Collection System Improvement Projects 818,717,500 66,853,072 65,910,900 132,763,972 685,953,528 Treatment&Disposal Protects Headworks Headworks Rehabilitation and Expansion at Plant No.1 56,373,000 - - - 56,373,000 Headworks Rehabilitation/Refurbishment 4,920,000 210,147 301,300 511,447 4,408,553 Headworks Improvements at Plant No.2 288.289,000 18,808,420 11,184,400 29,992,820 258,296,180 Headworks Construction Trailers at Plant No.2 1,088,000 986,500 986,500 101,500 Subtotal-Headworks 350,670,000 19,018,567 12,472,200 31,490,767 319,179,233 o.r Primary Treatment Primary Clarifiers 16-31&Related Facilities 89,760,000 77,403,505 6,796,300 84,199,805 5,560,195 Primary Treatment Rehabilitation/Refurbishment 104.150,000 3.503,534 4,023,200 7,526,734 96,623,266 Subtotal-Primary Treatment 193,910,000 80,907,039 10,819,500 91,726,539 102,183,461 Secondary Treatment New Secondary Treatment System at Plant No.1 291,424,000 8,008.522 10,126,400 18,134,922 273,289,078 r� Trickling Filter Rehabilitation and New Clarifiers 46,850,000 38,626,040 6,529,400 45,155,440 1,694,560 Activated Sludge Plant Rehabilitation 50,260,000 4,433,451 14,151,700 18,585,151 31.674,849 Secondary Treatment Monitoring&Control System Upgrade 9.220,000 7,543,718 1,654,700 9,198,418 21,582 Rehabilitation of Activated Sludge Plant at Plant 2 14,841,000 2,703,608 920,100 3,623,708 11.217,292 Trickling Filters at Plant No.2 253,125,000 4,106,862 6,152,900 10,259,762 242,865,238 Subtotal-Secondary Treatment 665,720,D00 65,422.201 39,535,200 104,957,401 560,762,599 wo Solids Handling&Digestion Sludge Digester Rehabilitation at Plant 1 54,916,000 625,159 1,794,200 2,419,359 52,496.641 Sludge Dewatering and Odor control at Plant 1 134,683,000 484,415 3,785,800 4,270,215 130,412,785 Truck Wash and Dewatering Beds at Plant No.1 4,806.000 24,676 272,100 296,776 4,509,224 No Solids Storage and Truck Loading Facility 15,822,000 14,645,647 962,900 15,608,547 213,453 Rehabilitation of Solids Storage Silos A&B at P2 10,483,000 1,719 - 1,719 10,481,281 Plant No.2 Primary Sludge Feed System Project 14,684,000 907,865 2,238,700 3,146,565 11,537,435 �.a Digester Rehabilitation at Plant No.2 31,102,000 - 337,900 337,900 30,764,100 Sludge Dewatering and Odor Control at Plant 2 51,696,000 - 208,300 208,300 51,487,700 Tule Ranch Biosolids Management Needs 1,057,000 281,207 32,500 313,707 743,293 Subtotal-Solids Handling&Digestion 319,249,000 16,970.688 9,632,400 26,603,088 292.645,912 (Continued) Section 3-Page 7 FY 2005-06 First Quarter Report Summary of Capita! Improvement Construction Requirements-Project Life For the Three Months Ended September 30, 2005 Current Total _ Approved June 30,2005 Year Projected Remaining iaw� Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2006 Budget Ocean Outfall Systems Peak Flow Management 3,393,000 3,328,983 119,500 3,448,483 (55,483) Effluent Pumping Station Annex 63,736,000 39,348,549 11,182,500 50,531.049 13,204,951 OOBS Rehabilitation Assessment Study 200,000 1,253 200,000 201.253 (1,253) NPDES Permit Renewal 214,000 1,230,249 25,000 1,255,249 (1,041,249) Subtotal-Ocean Outfall Systems 67,543,000 43.909,034 11,527,000 55,436.034 12,106,966 Utility Systems Arc Flash Hazard Evaluation 160,000 4,706 30,200 34,906 125,094 Interplant Gas Line Rehabilitation 3,076,000 73,482 1,189,900 1,263,382 1,812,618 Generator Bus Split Project at Plant Nos.1 and 2 5,426.000 - 280,000 280,000 5,146,000 Standby Power and Reliability Modifications 19,029,000 17,328,953 1,713,100 19,042,053 (13,053) Cable Tray Improvements at Plants 1 &2 37,057,000 1,194,660 789,800 1.984,460 35,072,540 Air Quality Improvements 6,817,000 4,039,717 1,499,100 5,538,817 1,278,183 Central Generation Automation 6,794,000 355,899 1,149,300 1.505,199 5,288.801 Fire Suppression for Servers and Equipment at P1&P2 687,000 60,507 628,400 688,907 (1,907) Electrical Power Distribution System Improvements 11,046,000 - - - 11,046,000 Plant 1 66kV Substation 5,173,000 25,077 4,657,800 4.682,877 490.123 Gas Compressor Addition at Plant No.2 11,560,000 390,292 1,724,700 2.114,992 9,445.008 Electrical Equipment Refurbishment and Protection 3,637,000 317,088 528,900 845,988 2,791,012 Plant 1 Plant Water VFD Replacement 1.547,000 258,677 933,800 1,192.477 354,523 W Subtotal-Utility Systems 112,009,000 24,049,058 15.125,000 39,174,058 72,834,942 Odor Control Related Projects Rehabilitation of Odor Control Facilities 53,707,000 3,541,859 2,359,200 5,901,059 47,805,941 Digester Gas Building Odor Control Project 100,000 - 100,000 100,000 - Odor Control for New Solids Truck Loading Station 150,000 150,0D0 150,000 - Subtotal-Odor Control Related Projects 53,957,000 3,541,859 2,609,2D0 6,151,059 47,805,941 Process Related Special Projects 61W Diesel Exhaust Emissions Controls Options Study 250,000 3.229 237,000 240,229 9,771 Evaluating Fine Screens for Primary Effluent 75,000 - - - 75,000 Plant O&M Manual and SOP Project-Phase 1 4,000,000 479.802 800,000 1,279,802 2,720,198 Corrosion Management 7,548,000 276,297 1,247,000 1,523,297 6,024.703 6., Special Projects: Anaerobic Baffled Reactor(ABR) 455,000 136,015 265,000 401,015 53,985 Special Projects: MicrofiltrationlPrimary Effluent 20,000 3,216,540 20,000 3,236,540 (3,216,540) Special Projects: Biotrickling Filter(BTF) 280,000 673,578 130.000 803,578 (523,578) Subtotal-Process Related Special Projects 12,628,000 4,785,461 2,699,000 7,484,461 5,143,539 wNd Plant Automation&Computerization SCADA Historian Replacement 456,000 - 400,000 400,000 56,000 Time Entry System 250,000 22,134 200,000 222,134 27,866 j`, Power Monitoring and Control Systems 4,042,000 35,482 158,200 193,682 3,848,318 Fats,Oils,and Grease(FOG)Software 100,000 35,568 25,000 60,568 39,432 -- Enterprise Contract Management Solution 1,175,000 - 175.000 175.000 1,000,000 Document Management 864,000 591,859 156,000 747,859 116,141 Strategic Information Architecture(SIA) 1,995,000 529,880 25,000 554,880 1,440,120 Intemettintranet Development 650,000 278,396 21,300 299,696 350,304 CMMS System Replacement 3,789.000 32,361 115.000 147.361 3.641,639 PDS2D Software Replacement 250,D00 - 20,000 20,000 230,000 t..t Environmental Compliance Awareness Program 330,000 60.300 50,000 110,300 219,700 Citizen Relationship Management(CRM) 250.000 - 5,000 5,000 245,000 Disaster Recovery 21,000 - 10,000 10,000 11,000 Geographic Information System 4,157,000 570,643 150,000 720,643 3,436,357 Financial Information System Upgrade 3.895,000 2,879,184 210,700 3,089,884 805,116 Network Equipment Upgrade 2,901,000 1,222,805 500,100 1,722,905 1,178,095 Subtotal-Plant Automation&Computerization 25.125,000 6.258,612 2,221,300 8,479,912 16,645,088 W (Continued) Section 3-Page 8 CIP Review Summary of Capital Improvement Construction Requirements-Project Life For the Three Months Ended September 30, 2005 Current Total Approved June 30,2005 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2006 Budget Miscellaneous&Support Projects Facilities Engineering Projects-Joint 18,200,000 205,816 373.000 578,816 17.621,184 Facilities Engineering Projects-Plant 1 18,200,000 690,763 578,100 1,268,863 16,931,137 Facilities Engineering Projects-Plant 2 18,200,000 986,480 522,300 1,508,780 16,691,220 Area Classification Study Implementation Plan 26,970,000 25,705,631 1.389,600 27,095,231 (125,231) sY Modifications to Existing Mechanical Systems 3,507,000 272.215 112,000 384,215 3,122,785 Building Rehabilitation/Refurbishment 1,456,000 169 - 169 1,455.831 Space Allocation and Interior Renovation 18,572,000 1,500,425 1,113,900 2.614,325 15.957,675 ,.d Laboratory Rehabilitation 1,777,000 319,751 1,240,100 1,559,851 217,149 Laboratory Refurbishment at Plant No.1 6,912,000 - 161,800 161,800 6,750.200 Regional FOG Control Collection at Plant No. 1 3,195,000 - - 3,195,000 Plant No.2 Landscaping Project 90,000 - 121,500 121,500 (31,500) a.d Small Cap.Equip.Replacement Project 3,000,000 2,495,971 500,000 2,995,971 4,029 Asset Management Program 7,750,000 629,081 949,900 1,578,981 6,171.019 Warehouse Reinvention Project 600,000 214,806 130,000 344.806 255.194 Plant 2 Maintenance Building Modifications 384,000 55,071 57.300 112,371 271,629 Subtotal-Miscellaneous&Support Projects 128,813,000 33,076,179 7,249,500 40,325,679 88,487,321 Water Management Projects nr Groundwater Replenishment System 251,660,000 67,114,411 73,182,300 140,296,711 111,363,289 Long Term Permanent Monitoring Program 7,074,000 5,998,252 631.200 6,629.452 444,548 Subtotal-Water Management Projects 258,734,000 73,112,663 73,813,500 146,926.163 111,807,837 �y Strategic&Master Planning Collection System Model and Strategic Plan Update 686,000 306,410 453,500 759,910 (73,910) Treatment Plant Strategic Plan Update 3,620,000 1,794,953 700,000 2.494.953 1,125,047 Orange County Biosolids Production Siting Study 700,000 78,983 500,000 578,983 121,017 a� Unifying Strategies Implementation 2,060,000 - 2,060,000 2.060,000 - Subtotal-Strategic&Master Planning 7.066,000 2,180,346 3,713,500 5,893.846 1,172,154 Research&Development "' Bioscope Additive to Improve Anaerobic Digestion 150,000 - 150,000 150,000 - Microsludge Process to Improve Anaerobic Digestion 250,000 - 250,000 250,000 Nitrification/Dentrification Study 150,000 - 150,000 150,000 - USBR Brine Management Grant Project 100,000 - 50,000 50,000 50,000 aw Subtotal-Research&Development 650,000 - 600,000 600,000 50,000 Additional Charges to CIP Completed at 6130105 7,105.000 5.643,495 1,149,200 6,792,695 312.305 too Total Treatment and Disposal Projects 2,203,179,000 378,875,202 193,166,500 572,041,702 1,631,137,298 Capital Equipment Purchases 19,978,600 2,751,449 1,978,600 4,730,049 15,248,551 Total Collections and Treatment&Disposal no Projects and Capital Equipment Purchases $3,041,875,100 $448,479,723 $261,056.000 $709.535,723 $2,332,339,377 ow Section 3-Page 9 6w FY 2005-06 First Quarter Report 6W This Page Intentionally Left Blank 6w ww 6w Section 3- Page 10 Capital Facilities & Debt Service Revenue Areas Capital Facilities and Debt Service Budget Review For the Three Months Ended September 30,2005 Capital Facilities Budget Review Balance Year-to-Date Balance 07/01/05 Additions 9130104 CONSTRUCTION IN PROGRESS: Treatment Plant $ 447,768,491 $ 31,255,650 $ 479,024,141 Collection System 40.116,086 10,907,820 51,023,906 Subtotal 487,884,577 42,163,470 530,048,047 PROPERTY,PLANT&EQUIPMENT(at cost): Land and Property Rights 13,021,480 - 13,021,480 Collection Lines and Pump Stations 438,850,245 - 438,850,245 Treatment Facilities 669,672,368 - 669,672,368 Effluent disposal facilities 97,014,820 - 97,014,820 Solids disposal facilities 3,074,494 - 3,074,494 General and administrative facilities 126,498,444 - 126,498,444 Subtotal 1,348,131,851 - 1,348,131,851 Total Property,Plant&Equipment&CIP $ 1,836,016,428 $ 42,163,470 $ 1,878,179,898 low Debt Service Budget Review 2005-06 Year-to-Date Remaining Budget Payments %of Budget Budget `�' Principal Payments by Debt Issue: 1992 Refunding COP $ 7,155,000 $ 7,155,000 100.00% $ - 1993 Refunding COP 4,800,000 4,800,000 100.00% - Umb 2000 COP 800,000 800,000 100.00% - 2003 COP - - N/A - 2005 COP - - N/A - ,� Subtotal Principal Payments 12,755,000 12,755,000 100.00% - Interest Expense by Debt Issue: 1992 Refunding COP 5,201,252 1,346,005 25.88% 3,855,247 1993 Refunding COP 1,716,840 475.761 27.71% 1,241,079 2000 COP 7,933,347 1,125,260 14.18% 6,808,087 2003 COP 14,221,250 3.555,312 25.00% 10,665,938 2005 COP 6,758,311 - 0.00% 6,758,311 Subtotal Interest Expense 35,831,000 6,502,338 18.15% 29,328,662 Total Debt Service $ 48,586,000 $ 19,257,338 39.64% $ 29,328,662 Section 4-Page 1 2005-06 First Quarter Report lmd 6w Law This Page Intentionally Left Blank ww 6w 64 Section 4-Page 2 Self Insurance Review General Liability and Property Fund Budget Review For the Three Months Ended September 30,2005 Percent Actual of Budget Remaining Actual 2005-06 Through Through 2005-06 Through Increase Budget 9130105 9130105 Budget 9/30l04 (Decrease) Revenues: m In-Lieu Premiums $ 2,160,000 $ 540,000 25.00% $ 1,620,000 $ 275.001 $ 264.999 Service Department Allocation 3,400 B49 24.97% 2,551 522 327 Allocation from Other Funds 10,000 1,225 12.25% 8,775 - 1,225 ..y Total Revenues 2,173,400 542,074 24.94% 1,631,326 275,523 266,551 Expenses: Benefits/Claims 200,000 3,932 1.97% 196,068 1,303 2,629 Wo Contractual Services 1,500 300 20.00% 1,200 300 - Legal Services 396,000 55,565 14.03% 340,435 104,695 (49,130) i=w Professional Services 5,000 518 10.36% 4,482 299 219 Subtotal 602,500 60,315 10.01% 542,185 106,597 (46,282) am Policy Premium Expense 1,100,000 256,333 23.30% 843,667 290,579 (34,246) Total Expenses 1,702,500 316,648 18.60% 1,385.852 397,176 (80,528) Excess Revenue(Expenses) 470,900 225,426 47.87% $ 245,474 (121,653) 347,079 CEW Beginning Reserves 54,529,100 54,605,085 55,000,000 (394,915) Ending Reserves $ 55,000,000 $ 54,830,511 $ 54,878,347 $ (47,836) am UW am Section 5-Page 1 ON FY 2005-06 First Quarter Report Workers'Compensation Fund Budget Review i6W For the Three Months Ended September 30,2005 6w Percent Actual of Budget Remaining Actual 2005.06 Through Through 2005-06 Through Increase Budget 9130105 9/30105 Budget 9130104 (Decrease) Revenues: In-Lieu Premiums $ 425,000 $ 106.250 25.00% $ 318.750 $ 175,000 $ (68,750) Service Department Allocations 300 75 25.00% 225 129 (54) �+ Total Revenues 425,300 106,325 25.00% 318,975 175,129 (68,804) Expenses: Benefits/Claims 300,000 21,858 7.29% 278,142 38,577 (16,719) r.r Contractual Services 30.000 6,625 22.08% 23,375 15,125 (8,500) Legal Services 25,800 4,431 17.17% 21,369 4,700 (269) how Professional Services 25,000 - 25.000 2,710 (2,710) 6w Subtotal 380,800 32,914 8.64% 347,886 61,112 (28,198) Policy Premium Expense 210,000 48,083 22.90% 161,917 52,096 (4,013) Far Total Expenses 590,800 80,997 13.71% 509,803 113,208 (32,211) Excess Revenue(Expenses) (165.500) 25,328 -15.30% $ (190,828) 61,921 (36,593) 6, Beginning Reserves 2,165,500 2,288,153 2,000,000 288,153 Ending Reserves $ 2,000,000 $ 2,313,481 $ 2,061,921 $ 251,560 bmw rr r.� i.r irr Section 5-Page 2 ORANGE COUNTY SANITATION DISTRICT Finance Department (714) 962-2411 www.ocsd.com Mailing Address: PO. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 OCSD 9/30/05 STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and Agenda for the Regular Board Meeting of Orange County Sanitation District to be held on /L,2005, was duly posted for public inspection in the main lobby of the Districts' offices on �� , 2005. IN WITNESS WHEREOF, I have hereunto set my hand this day of 2005. Penny M. Kyl , Secretajif Board of Directors Orange County Sanitation District HADEMADMIN MFORMSIAGENDA CERTIFICATION.DOC