Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
02-09-2022 Administration Committee Meeting Complete Agenda Packet.pdf
ORANGE COUNTY SANITATION DISTRICT SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19) AND ATTENDANCE AT PUBLIC MEETINGS Governor Newsom signed Assembly Bill (AB) 361 on September 16, 2021, which, in part, addresses the conduct of public meetings in light of the continued State of Emergency order. Effective October 1, 2021, AB 361 suspends the requirements located in California Government Code, Section 54953, Subdivision (b), Paragraph (3) specifically pertaining to the conduct of public meetings. As such, the Orange County Sanitation District (OC San) Board of Directors has determined that due to the size of OC San’s Board of Directors (25), and the health and safety of the members, the Board of Directors will be participating in meetings of the Board telephonically and via Internet accessibility. PUBLIC PARTICIPATION Your participation is always welcome. OC San offers several ways in which to interact during meetings. You will find information as to these opportunities below. ONLINE MEETING PARTICIPATION You may join the meeting live via Teams on your computer or similar device or web browser by using the link below: Click here to join the meeting We suggest testing joining a Teams meeting on your device prior to the commencement of the meeting. For recommendations, general guidance on using Teams, and instructions on joining a Teams meeting, please click here. Please mute yourself upon entry to the meeting. Please raise your hand if you wish to speak during the public comment section of the meeting. The Clerk of the Board will call upon you by using the name you joined with. Meeting attendees are not provided the ability to make a presentation during the meeting. Please contact the Clerk of the Board at least 48 hours prior to the meeting if you wish to present any items. Additionally, camera feeds may be controlled by the meeting moderator to avoid inappropriate content. OC ~SAN ORANGE COUNTY SANITATION DISTRICT HOW TO PARTICIPATE IN THE MEETING BY TELEPHONE To join the meeting from your phone: Dial (213) 279-1455 When prompted, enter the Phone Conference ID: 540 626 845# All meeting participants may be muted during the meeting to alleviate background noise. If you are muted, please use *6 to unmute. You may also mute yourself on your device. Please raise your hand to speak by using *5 during the public comment section of the meeting. The Clerk of the Board will call upon you by using the last 4 digits of your phone number as identification. NOTE: All attendees will be disconnected from the meeting at the beginning of Closed Session. If you would like to return to the Open Session portion of the meeting, please login or dial-in to the Teams meeting again and wait in the Lobby for admittance. VIEW THE MEETING ONLINE ONLY The meeting will be available for online viewing only at: https://ocsd.legistar.com/Calendar.aspx HOW TO SUBMIT A COMMENT You may provide verbal comment in real time during the meeting. In order to provide a verbal comment, please raise your hand as described above or alert the Clerk of the Board before or during the public comment period. You may also submit your comments and questions in writing for consideration in advance of the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk@ocsan.gov with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. You may also submit comments and questions for consideration during the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx. The eComment feature will be available for the duration of the meeting. All written public comments will be provided to the legislative body and may be read into the record or compiled as part of the record. TECHNICAL SUPPORT PRIOR TO AND DURING MEETINGS For technical assistance before and during the meeting, please call 714-593-7431. For any other questions and/or concerns, please contact the Clerk of the Board’s office at 714-593-7433. Thank you, in advance, for your patience in working with these technologies. We appreciate your interest in OC San! February 2, 2022 NOTICE OF REGULAR MEETING ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, February 9, 2022 – 5:00 P.M. ACCESSIBILITY FOR THE GENERAL PUBLIC Your participation is always welcome. Specific information as to how to participate in this meeting is detailed in the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during meetings: you may join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. The Regular Meeting of the Administration Committee of the Orange County Sanitation District will be held at the above location and in the manner indicated on Wednesday, February 9, 2022 at 5:00 p.m. 0 ~SAN 10844 Ellis Avenue Fountain Valley, CA 92708 714.962.2411 ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. Serving: Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park County of Orange Costa Mesa Sanitary District Midway City Sanitary District Irvine Ranch Water District Yorba Linda Water District ADMINISTRATION COMMITTEE MEETING DATE BOARD MEETING DATE 02/09/22 02/23/22 03/09/22 03/23/22 04/13/22 04/27/22 05/11/22 05/25/22 06/08/22 06/22/22 07/13/22 07/27/22 AUGUST DARK 08/24/22 09/14/22 09/28/22 10/12/22 10/26/22 11/09/22 11/16/22 * 12/14/22 12/21/22 * JANUARY DARK 01/25/23 * Meeting will be held on the third Wednesday of the month ROLL CALL ADMINISTRATION COMMITTEE Finance, Information Technology, Environmental Services and Human Resources Meeting Date: February 9, 2022 Time: 5:00 p.m. Adjourn: COMMITTEE MEMBERS (13) Glenn Parker, Chair Anthony Kuo, Vice-Chair Brad Avery Ron Bates Art Brown Kim Carr Rose Espinoza Marshall Goodman Patrick Harper Andrew Nguyen David Shawver John Withers (Board Chair) Chad Wanke (Board Vice-Chair) OTHERS Brad Hogin, General Counsel STAFF Jim Herberg, General Manager Rob Thompson, Assistant General Manager Lorenzo Tyner, Assistant General Manager Celia Chandler, Director of Human Resources Kathy Millea, Director of Engineering Lan Wiborg, Director of Environmental Services Kelly Lore, Clerk of the Board ORANGE COUNTY SANITATION DISTRICT Effective 1/25/2022 BOARD OF DIRECTORS Complete Roster AGENCY/CITIES ACTIVE DIRECTOR ALTERNATE DIRECTOR Anaheim Stephen Faessel Gloria Ma’ae Brea Glenn Parker Cecilia Hupp Buena Park Art Brown Connor Traut Cypress Paulo Morales Anne Hertz Fountain Valley Patrick Harper Ted Bui Fullerton Jesus J. Silva Nick Dunlap Garden Grove Steve Jones John O’Neill Huntington Beach Kim Carr Dan Kalmick Irvine Anthony Kuo Farrah N. Khan La Habra Rose Espinoza Steve Simonian La Palma Marshall Goodman Nitesh Patel Los Alamitos Ron Bates NONE Newport Beach Brad Avery Joy Brenner Orange Kim Nichols Chip Monaco Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Nelida Mendoza Seal Beach Sandra Massa-Lavitt Schelly Sustarsic Stanton David Shawver Carol Warren Tustin Ryan Gallagher Austin Lumbard Villa Park Chad Zimmerman Robert Collacott Sanitary/Water Districts Costa Mesa Sanitary District Bob Ooten Art Perry Midway City Sanitary District Andrew Nguyen Mark Nguyen Irvine Ranch Water District John Withers Douglas Reinhart Yorba Linda Water District Brooke Jones Ted Lindsey County Areas Board of Supervisors Donald P. Wagner Doug Chaffee ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 9, 2022 - 5:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA POSTING: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Orange County Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Orange County Sanitation District’s website at www.ocsan.gov not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. MEETING AUDIO: An audio recording of this meeting is available within 24 hours after adjournment of the meeting at https://ocsd.legistar.com/Calendar.aspx or by contacting the Clerk of the Board at (714) 593-7433. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted in writing to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsan.gov at least 14 days before the meeting. FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT: General Manager: Jim Herberg, jherberg@ocsan.gov / (714) 593-7300 Asst. General Manager: Lorenzo Tyner, ltyner@ocsan.gov / (714) 593-7550 Asst. General Manager: Rob Thompson, rthompson@ocsan.gov / (714) 593-7310 Director of Human Resources: Celia Chandler, cchandler@ocsan.gov / (714) 593-7202 Director of Engineering: Kathy Millea, kmillea@ocsan.gov / (714) 593-7365 Director of Environmental Services: Lan Wiborg, lwiborg@ocsan.gov / (714) 593-7450 OC ~SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 9, 2022 CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AND DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: Your participation is always welcome. Specific information as to how to participate in a meeting is detailed in the Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during meetings: you may join the meeting live via Teams on your computer or similar device or web browser, join the meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during the meeting. You may provide verbal comment in real time during the meeting. In order to provide a verbal comment, please raise your hand (directions provided in the Special Notice attached to this agenda) or alert the Clerk of the Board before or during the public comment period. You may submit your comments and questions in writing for consideration in advance of the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk@ocsan.gov with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. You may also submit comments and questions for consideration during the meeting by using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx. The eComment feature will be available for the duration of the meeting. All written public comments will be provided to the legislative body and may be read into the record or compiled as part of the record. REPORTS: The Committee Chairperson and the General Manager may 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. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.2022-2097APPROVAL OF MINUTES RECOMMENDATION: Approve Minutes of the Regular Meeting of the Administration Committee held December 8, 2021. Originator:Kelly Lore Page 1 of 5 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 9, 2022 Agenda Report 12-08-2021 Administration Committee Minutes Attachments: 2.2021-1950MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2021 RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Mid-Year Consolidated Financial Report for the period ended December 31, 2021. Originator:Lorenzo Tyner Agenda Report Mid-Year Consolidated Financial Report for the period ended December 31, 2021 Attachments: 3.2021-2021DESIGNATION OF APPLICANT’S AGENT FOR DISASTER RELIEF RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 22-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the General Manager or either Assistant General Manager to Execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and Relevant Permit Applications for Present and Future Disaster Relief Applications; and Repealing Resolution No. OCSD 19-01”. Originator:Kelly Lore Agenda Report FEMA Designation Resolution OC SAN 22-XX 006-Cal OES 130 Attachments: 4.2022-2114GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST RECOMMENDATION: Recommend to the Board of Directors to: A. Receive and file Orange County Sanitation District purchases made under the General Manager’s authority for the period of October 1, 2021 to December 31, 2021; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2021 to December 31, 2021: ·ACOEM - Vibralign Fixture Laser Alignment Training ·BEAMEX - Beamex Instrumentation Test Equipment Hardware and Software Training Page 2 of 5 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 9, 2022 ·HAYWORD-GORDON - Hayward-Gordon Pumps, Mixers, and Parts ·INTERTECH - Modicon PLC Hardware, Software, and Network Training ·MIDWAY MFG. & MACHINE COMPANY - Rechargeable Carbon Canisters ·WSG & SOLUTIONS, INC. - Grit Classifier Repair Parts Originator:Lorenzo Tyner Agenda ReportAttachments: 5.2022-2115UNIFORM AND JANITORIAL ARTICLES RENTAL SERVICE RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a service contract to Cintas Corporation to provide Uniform and Janitorial Articles Rental Service, Specification No. S-2021-1277BD, for a total amount not to exceed $839,512 for the period beginning April 1, 2022, through March 31, 2025, with one (1) three-year renewal period option; and B. Approve a three-year contingency of $83,951 (10%). Originator:Rob Thompson Agenda Report S-2021-1277BD Draft Service Contract Attachments: 6.2022-2120AMENDMENT TO OCSD PERSONNEL POLICIES AND PROCEDURES RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 22-XX entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District amending the Board of Directors Personnel Policies and Procedures Manual providing for classification, compensation, and other terms, conditions, policies, and procedures governing employment of District employees to include the addition of Policy No. 6.6, Diversity, Equity, and Inclusion; and Amending Resolution No. OCSD 18-18”. Originator:Celia Chandler Agenda Report Resolution No. OC SAN 22-XX Amendment to 18-18 Draft Policy No. 6.6, Diversity, Equity, and Inclusion Resolution No. OCSD 18-18 Attachments: Page 3 of 5 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 9, 2022 NON-CONSENT: 7.2022-2102INTERNAL AUDIT UPDATE RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Contracts Procurement Process Internal Audit Report dated January 4, 2022. Originator:Lorenzo Tyner Agenda Report Internal Audit Report - Contracts Procurement Process List of Past Audits Audit Schedule Attachments: 8.2022-2093CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FISCAL YEAR 2022-23 and FY 2023-24 BUDGET RECOMMENDATION: Approve the FY 2022-23 and FY 2023-24 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2022-23 and FY 2023-24 budget. Originator:Lorenzo Tyner Agenda Report FY 2022-23 Budget Assumptions Budget Calendar 2022-24 Presentation - Budget Assumptions for FY 22-23 and FY 23-24 Attachments: INFORMATION ITEMS: 9.2022-2101INVESTMENT PERFORMANCE RESULTS RECOMMENDATION: Information Item. Originator:Lorenzo Tyner Agenda Report OC San Staff Presentation - Reserves and Investments Attachments: Page 4 of 5 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 9, 2022 10.2022-2095RISK MANAGEMENT AND INSURANCE UPDATE RECOMMENDATION: Information Item. Originator:Lorenzo Tyner Agenda Report Property-Casualty Insurance Status Report with Market Update Presentation - Risk Management_Insurance Update Attachments: 11.2022-2117COVID-19 SEWAGE SURVEILLANCE PROJECT UPDATE RECOMMENDATION: Information Item. Originator:Lan Wiborg Agenda Report California Water Quality Monitoring Council Resolution No. 2021-0001 SWRCB Resolution No. 2021-0049 Presentation - COVID Sewer Surveillance Update Attachments: DEPARTMENT HEAD REPORTS: CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Directors may request staff to place an item on a future agenda. ADJOURNMENT: Adjourn the meeting until the Regular Meeting of the Administration Committee on March 9, 2022 at 5:00 p.m. Page 5 of 5 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2022-2097 Agenda Date:2/9/2022 Agenda Item No:1. FROM:James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: APPROVAL OF MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve Minutes of the Regular Meeting of the Administration Committee held December 8, 2021. BACKGROUND In accordance with the Board of Directors Rules of Procedure, an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. RELEVANT STANDARDS ·Resolution No. OC SAN 21-04 ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·Minutes of the Administration Committee meeting held December 8, 2021 Orange County Sanitation District Printed on 2/1/2022Page 1 of 1 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT Orange County Sanitation District Minutes for the ADMINISTRATION COMMITTEE Wednesday, December 8, 2021 5:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chair Glenn Parker on Wednesday, December 8, 2021 at 5:00 p.m. in the Administration Building of the Orange County Sanitation District. Chair Parker stated that the meeting was being held telephonically and via Internet accessibility in accordance with new provisions in California Government Code Section 54953 and Resolution No. OC SAN 21-20, due to the continued State of Emergency Order. Chair Parker announced the teleconference meeting guidelines. ROLL CALL AND DECLARATION OF QUORUM: Roll call was taken and a quorum was declared present, as follows: PRESENT:Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and John Withers ABSENT:Brad Avery STAFF PRESENT: Kelly Lore, Clerk of the Board, and Brian Engeln were present in the Board Room. Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Lan Wiborg, Director of Environmental Services; Jennifer Cabral; Mortimer Caparas; Brian Engeln; Brad Hamilton; Tina Knapp; Tom Meregillano; Rob Michaels; Wally Ritchie; Thomas Vu; Brian Waite; Wasantha Weedagama; Eros Yong; and Ruth Zintzun were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel, was in attendance telephonically. PUBLIC COMMENTS: None. REPORTS: Chair Parker announced that the Board of Directors meeting this month will be held on December 15 due to the upcoming Holiday season and that OC San Administrative offices would be closed on December 23, 24 & 31 in observance of the Christmas and New Year's holidays. General Manager Jim Herberg did not provide a report. Page 1 of 7 OC ~SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Minutes December 8, 2021 CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2021-2005 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Administration Committee held November 10, 2021. AYES:Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and John Withers NOES:None ABSENT:Brad Avery ABSTENTIONS:None 2. ADD RIALTO BIOENERGY FACILITY CONTRACT TO BIOSOLIDS ACCOUNT POOL 2021-1954 Originator: Lan Wiborg MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Ratify the addition of the Rialto Bioenergy Facility, LLC. biosolids contract to the Biosolids Account Pool effective July 28, 2021. AYES:Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and John Withers NOES:None ABSENT:Brad Avery ABSTENTIONS:None 3. PROFESSIONAL RISK MANAGEMENT CONSULTANT AGREEMENT 2021-2000 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Page 2 of 7 ADMINISTRATION COMMITTEE Minutes December 8, 2021 Approve a sole source Professional Consultant Services Agreement with John J. Preston, Specification No. SSJ 2468, to perform professional risk management consulting services for the Orange County Sanitation District, which includes overseeing property and general liability loss control and setting loss control requirements on public bids and contracts, risk transfer, loss prevention, and risk reduction in an amount not to exceed $150,000 per year, for a term of one year beginning December 1, 2021 through November 30, 2022; with up to two (2) one-year renewal options. AYES:Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and John Withers NOES:None ABSENT:Brad Avery ABSTENTIONS:None 4. INVEST AND/OR REINVEST ORANGE COUNTY SANITATION DISTRICT’S FUNDS AND ADOPT INVESTMENT POLICY STATEMENT 2021-1705 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 21-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Authorizing the Orange County Sanitation District’s Treasurer to Invest and/or Reinvest the Orange County Sanitation District’s Funds, Adopting the Orange County Sanitation District’s Investment Policy Statement and Performance Benchmarks, and Repealing Resolution No. OCSD 20-13”. AYES: NOES: ABSENT: Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and John Withers None Brad Avery ABSTENTIONS: None 5. ADOPT ORANGE COUNTY SANITATION DISTRICT’S DEBT POLICY 2021-1909 Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 3 of 7 ADMINISTRATION COMMITTEE Minutes December 8, 2021 Adopt Resolution No. OC SAN 21-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Adopting the Orange County Sanitation District’s Debt Policy and Repealing Resolution No. OCSD 20-12”. AYES:Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and John Withers NOES:None ABSENT:Brad Avery ABSTENTIONS:None NON-CONSENT: 6. DEFERRED PAYMENT AGREEMENT REQUEST FOR CHARGES AND FEES OWED BY NOR-CAL BEVERAGE CO., INC. INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE 2021-2009 Originator: Lorenzo Tyner Assistant General Manager Lorenzo Tyner provided a brief update and short PowerPoint presentation regarding the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a deferred payment agreement with Nor-Cal Beverage Co., Inc. for charges owed for user fees in the amount of $496,231.50. AYES:Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and John Withers NOES:None ABSENT:Brad Avery ABSTENTIONS:None 7. WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2022A 2021-1838 Originator: Lorenzo Tyner Mr. Tyner provided a brief introduction to the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 4 of 7 ADMINISTRATION COMMITTEE Minutes December 8, 2021 A. Adopt Resolution No. OC SAN 21-XX entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the execution and delivery by the District of an Installment Purchase Agreement, a Trust Agreement, and a Continuing Disclosure Agreement in connection with the Orange County Sanitation District Wastewater Refunding Revenue Obligations, Series 2022A, authorizing the execution and delivery of such Revenue Obligations evidencing principal in an aggregate amount of not to exceed $107,315,000, approving a Notice of Intention to Sell, authorizing the distribution of an Official Notice Inviting Bids and an Official Statement in connection with the offering and sale of such Revenue Obligations and authorizing the execution of necessary documents and related actions”; and B. That the Orange County Sanitation District Financing Corporation approve the documents supporting and authorizing the Revenue Obligations in an aggregate amount not to exceed $107,315,000. AYES:Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and John Withers NOES:None ABSENT:Brad Avery ABSTENTIONS:None 8. NINTEX APPLICATION DEVELOPMENT SERVICES 2021-1980 Originator: Lorenzo Tyner Mr. Tyner introduced IT Systems and Operations Manager Rob Michaels who provided a brief overview of the necessity of the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a Professional Services Agreement to AgreeYa Solutions, Inc. to provide Nintex Application Development Services, Specification No. CS-2021-1243BD, for a total amount not to exceed $300,000. AYES:Glenn Parker, Anthony Kuo, Art Brown, Kim Carr, Mark Chirco, Rose Espinoza, Marshall Goodman, Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and John Withers NOES:None ABSENT:Brad Avery ABSTENTIONS:None Page 5 of 7 ADMINISTRATION COMMITTEE Minutes December 8, 2021 INFORMATION ITEMS: 9.ORANGE COUNTY SANITATION DISTRICT 2021 ASSET MANAGEMENT PLAN 2021-1994 Originator: Kathy Millea Engineering Supervisor Brian Waite provided a PowerPoint presentation recapping the 2021 Asset Management Plan. ITEM RECEIVED AS AN: Information Item. 10.PURCHASING, CONTRACTS, AND MATERIALS MANAGEMENT DEPARTMENT OVERVIEW 2021-1428 Originator: Lorenzo Tyner Purchasing and Contracts Manager Ruth Zintzun provided a PowerPoint presentation which provided an overview of the Purchasing, Contracts, and Materials Management department. ITEM RECEIVED AS AN: Information Item. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Parker declared the meeting adjourned at 5:39 p.m. to the next Regular Administration Committee meeting to be held on Wednesday, February 9, 2022 at 5:00 p.m. Page 6 of 7 ADMINISTRATION COMMITTEE Minutes December 8, 2021 Submitted by: __________________ Kelly A. Lore, MMC Clerk of the Board Page 7 of 7 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1950 Agenda Date:2/9/2022 Agenda Item No:2. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2021 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Mid-Year Consolidated Financial Report for the period ended December 31, 2021. BACKGROUND Included in this consolidated report are the following mid-year financial reports for the period ended December 31, 2021: ·Mid-Year Budget Review The Budget Review Summary provides the Directors, staff, and general public with a comprehensive overview of the mid-year financial results of the Orange County Sanitation District (OC San) for the period ended December 31, 2021. ·Mid-Year Treasurer’s Report This section reports on financial portfolio performance with respect to the OC San’s funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this agenda report. The report also contains information on the U.S. and global economic outlook from OC San’s investment manager, Chandler Asset Management. ·Mid-Year Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. RELEVANT STANDARDS ·Quarterly financial reporting Orange County Sanitation District Printed on 2/1/2022Page 1 of 3 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2021-1950 Agenda Date:2/9/2022 Agenda Item No:2. ADDITIONAL INFORMATION The mid-year treasurer’s report contained within the Consolidated Financial Reports for the period ended December 31,2021,is being submitted in accordance with the OC San’s investment policy that requires the report be submitted to the governing body following the end of each quarter and includes the following information: ·Performance results in comparison with the ICE BAML 3-month treasury bill index for the liquid operating portfolio;and the ICE BAML Corp./Govt.1-5 Year Bond index for the long-term portfolio as identified in the investment policy;and the time-weighted total rate of return for the portfolio for the prior three months,six months,nine months,twelve months,and since inception compared to the Benchmark returns for the same periods: Portfolio Performance Summary As of December 31, 2021 Liquid Operating Monies (%)Long-Term Operating Monies (%) Total Rate of Return Benchmark Total Rate of Return Benchmark 3 Months 0.00 0.01 -0.63 -0.69 6 Months 0.02 0.02 -0.61 -0.67 9 Months 0.04 0.02 -0.42 -0.47 12 Months 0.08 0.05 -0.92 -1.00 Annualized Since Inception 30 Nov 2014 0.97 0.86 1.80 1.76 ·A listing of individual securities held at the end of each reporting period (see the detailed listings of each security contained within the report). ·Cost and market values of the portfolios: Liquid Operating Long-Term Cost $231.0 M $736.0 M Market Value $230.9 M $742.2 M ·Modified duration of the portfolio compared to the Benchmark: Liquid Operating Long-Term OC San Policy < 0.50 < 5.00 Benchmark 0.15 2.59 Portfolio 0.27 2.37 ·Dollar change in value of the portfolio for a one percent (1%) change in interest rates: Liquid Operating - $628,508 Long- Term - $17,608,896 ·None of the portfolios are currently invested in reverse repurchase agreements. Orange County Sanitation District Printed on 2/1/2022Page 2 of 3 powered by Legistar™ File #:2021-1950 Agenda Date:2/9/2022 Agenda Item No:2. ·The percent of the Liquid Operating Monies portfolio maturing within 90 days: 48.2% ·Average portfolio credit quality: Liquid Operating - AA+/Aaa Long- Term - AA+/Aa1 ·Percent of portfolio with credit ratings below “A”by any rating agency and a description of such securities: Liquid Operating - 0.9% Long- Term - Percent of portfolio - 1.2% Cost Maturity Date Moody S&P Fitch Morgan Stanley Note $2,047.260.00 5/19/2022 A1 BBB+A SLM Student Loan Trust 2008-9 A $9,471.93 4/25/2023 Baa3 B B AMRESCO Residential Securities 1999-1 A $89,377.81 6/25/2029 NR BBB BBB Morgan Stanley Callable Note Cont $8,889,710.25 5/30/2025 A1 BBB+A ·All investments are in compliance with this policy and the California Government Code,except for the following Lehman Brother holdings that OC San is pursuing collection through the bankruptcy court: Lehman Brothers Note-Defaulted $600,000 par value purchased 9/19/2008 Lehman Brothers Note-Defaulted $2,000,000 par value purchased 9/18/2008 ·Sufficient funds are available for the OC San to meet its operating expenditure requirements for the next six months. CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Mid-Year Consolidated Financial Report for the period ended December 31, 2021 Orange County Sanitation District Printed on 2/1/2022Page 3 of 3 powered by Legistar™ Orange County, California ORANGE COUNTY SANITATION DISTRICTMid-Year Financial Report for the period ended December 31, 2021 OC ~SAN ORANGE COUNTY SANITATION DISTRICT Table of Contents Executive Summary………………………………………………………………………..…….…….…1 Budget Review Section 1 – Consolidated Financial Reports ......................................................................... 1 Section 2 – Operating Budget Review Chart of Cost per Million Gallons by Department .................................................... 1 Chart of Collection, Treatment, & Disposal Expenses by Major Category ............... 1 Divisional Contributions to Cost Per Million Gallons ................................................ 2 Comparison of Expenses by Department ................................................................ 3 Summary of Collection, Treatment, & Disposal Expenses by Major Category ......... 4 Summary of Revenues ........................................................................................... 5 Summary of Collection, Treatment, & Disposal Expenses by Line Item .................. 6 Summary of Collection, Treatment, & Disposal Expenses by Process .................... 8 Chart of Staffing Trends .......................................................................................... 9 Section 3 – Capital Improvement Program Budget Review Chart of Capital Improvement Program By Process Area and Project Driver .......... 1 Summary of Capital Improvement Construction Requirements – Current Year ....... 2 Summary of Capital Improvement Construction Requirements – Project Life ......... 6 Section 4 – Capital Assets Schedule & Debt Service Budget Review Capital Assets Schedule ......................................................................................... 1 Debt Service Budget Review .................................................................................. 1 Section 5 – Self Insurance Budget Review General Liability and Property Fund Budget Review ............................................... 1 Workers’ Compensation Fund Budget Review ........................................................ 2 Quarterly Treasurer’s Report…………………………………………………………………………….1 Quarterly COP Report…………………………………………………………………………………....1 FY 2021-22 Mid-Year Financial Report This Page Intentionally Left Blank Executive Summary Page 1 Consolidated Financial Reports For the Mid-Year Ended December 31, 2021 Included in this consolidated report are the following quarterly financial reports for the period ended December 31, 2021: Mid-Year Budget Review: The Consolidated Financial Reports Section provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Orange County Sanitation District (OC San) through the mid-year ended December 31, 2021. Contained within the Budget Review Sections 2 through 5 is the budget-to-actual status of the Collection, Treatment and Disposal Operations, Capital Improvement Program, Debt Service, and Self-Insurance Program. Also included is a Capital Assets Schedule as of December 31, 2021. The chart below provides for a summary of these activities. Various detail information can be found in this report. Below is a descriptive summary of these activities through December 31, 2021: a) Most major expense categories are anticipated to be at or below budget. b) Total revenues are at 63.3 percent of the $650.9 million budget, mainly due to the receipt of $164.4 million from the issuance of Revenue Refunding Certificates of Participation, Series 2021A, during the first quarter of the fiscal year. The obligations were issued to refund $61.6 million of the Series 2011A 100% 75% 50% 25% 0% - $412.0M - Operating Revenue Mid-Year Results as a Percentage of Budget -$89.5M Operating Expense $56.9M Capital Outlays $186.5M Debt Service .._ $1.6M Self Insurance ._ FY 2021-22 Mid-Year Financial Report Page 2 wastewater refunding revenue obligations and $102.2 million of the Series 2018A revenue certificate anticipation notes. Except for Intra District Sewer Use-IRWD, Sludge Disposal-IRWD, Capital Assessments-IRWD, Interest Earnings, CIP Reimbursements, Grant Revenue, and Other Revenues, most revenue sources are currently tracking close to or exceeding revenue estimates. Overall, total revenues are projected to approximate budget at year-end. More detailed information on revenues is provided within Section 1 – Pages 4 through 6. c) Collection, Treatment and Disposal Costs: As indicated within the Consolidated Financial Reports Section of this report, the net operating requirements through the mid-year of $89.5 million is currently tracking at 48.7 percent of the $184.0 million budget. In addition, net operating expenses have increased $2.6 million or 2.9 percent in comparison with the same period last year. Overall, staff expects the total operating costs to remain at or slightly below budget throughout the remainder of the year. More detailed information on operating expenses is provided within Section 1 – Pages 1 through 3. The total cost per million gallons is $2,695 based on flows of 181 million gallons per day. This is $14 per million gallons, or 0.5 percent higher than the budgeted cost per million gallons per day. A further description of these costs and benchmarking with other agencies is contained within Section 1 – Pages 7 through 9. d) The total projected capital outlay cash flow of the Capital Improvement Program (CIP) for FY 2021-22 has been revised to $204.8 million, or 91.2 percent of the board approved cash outlay of $224.6 million. The actual cash outlay spending through the mid-year is $56.9 million, or 25.3 percent of the total budgeted outlay. More detailed information on the CIP budget review can be found in Section 1 – Page 10 and Section 3. Mid-Year Treasurer’s Report This section reports on financial portfolio performance with respect to OC San’s funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the national economic outlook from OC San’s money manager, Chandler Asset Management (Chandler). Chandler notes the Long-Term Portfolio quarterly return of negative 63 basis points outperformed the ICE BAML 1-5 Year US Corp/Govt Rated AAA-A Index return of negative 69 basis point, while the Liquid Operating Monies Portfolio quarterly return of 0 basis points underperformed the ICE BAML 3-Month US Treasury Bill Index return of 1 basis point. Chandler further notes that Fed policymakers have recently pivoted toward a more hawkish stance as inflation indices continue to run hot and the labor market Executive Summary Page 3 appears relatively tight, given their dual mandate of promoting maximum employment and stable prices. Although labor force participation remains lower than it was prior to the pandemic, there are signals the economy may be near full employment within the context of the current health situation. The unemployment rate declined from 6.7% to 3.9% in 2021, a high percentage of workers are voluntarily quitting jobs, the level of job openings relative to those looking for work remains high, and wage growth has been strong. Meanwhile, inflation continues to run well above the Fed’s long-run 2.0% target. The Consumer Price Index excluding food and energy was up 5.5% in December. The Core PCE index, the Fed’s preferred inflation measure, was up 4.7% year-over-year in the latest report. Given the current inflation and employment dynamics, Fed policymakers have begun discussing plans to remove monetary policy accommodation. The Fed is currently tapering its asset purchases and Chandler expects that process will be complete within the next few months. Should aggregate demand remain strong and economic activity remain robust, Chandler believes the first rate hike may be announced in the first half of this year after the taper is complete. However, Chandler does not believe monetary policy is on a pre-set course. Chandler expects the Fed to adjust policy at a gradual pace and believe policymakers will adjust their views as necessary based on incoming economic and financial market data. Chandler believes US economic growth is likely to moderate this year but remain above the long-run trend rate of growth. The consensus forecast for GDP growth this year is 3.9% versus estimated growth of 5.6% in 2021. Amid the current surge of virus infection rates, Chandler believes global supply chains remain challenged and Chandler sees risk to the first quarter US GDP consensus estimate of 3.9%. Nevertheless, Chandler believes aggregate consumer demand remains strong and consumer spending, the largest component of US GDP, should remain solid this year, supported by healthy consumer balance sheets, an improving health situation, and ongoing improvement in the labor market. Chandler expects supply chain bottlenecks will continue to put upward pressure on inflation over the near- term but Chandler believes inflation may be at or near a peak. Chandler believes pricing pressure is likely to abate in the second half of this year amid an improving global health backdrop and less acute global supply chain stress. In December, the 2-year Treasury yield increased nearly 17 basis points to 0.73%, the 5-year Treasury yield increased ten basis points to 1.26%, and the 10-year Treasury yield increased about seven basis points to 1.51% in the month. Chandler has witnessed a relatively swift move in Treasury rates this month with the 2-year Treasury yield up roughly 19 basis points, and the 10-year Treasury yield up more than 20 basis points, year-to-date. At the end of December, the 2-year Treasury yield was about 61 basis points higher and the 10-Year Treasury yield was about 60 basis points higher, year- over-year. Chandler believes Treasury yields are likely to increase further this year, across the curve. FY 2021-22 Mid-Year Financial Report Page 4 The Consumer Price Index (CPI) was up 7.0% year-over-year in December, versus up 6.8% year-over-year in November. Core CPI (CPI less food and energy) was up 5.5% year-over-year in December, versus up 4.9% in November. The Personal Consumption Expenditures (PCE) index was up 5.7% year-over-year in November, up from 5.1% in October. Core PCE was up 4.7% year-over-year in November, versus up 4.2% in October. Current inflation readings continue to run well above the Fed’s longer-run target of around 2.0%. Upward pressure on inflation from supply chain bottlenecks and pandemic-related disruptions is likely to remain elevated over the near-term. Economic Outlook Fixed income markets are entering an inflection point in 2022 and volatility across asset classes is forecasted to increase as the outlook for monetary policy shifted materially in the fourth quarter of 2021. Since the onset of the coronavirus pandemic in 2020 developed market central banks have worked in a mostly synchronized manner, striving to set policy in a predictable fashion and suppress volatility in an effort to support the economic recovery; this dynamic will change in 2022. The inability of the coronavirus pandemic to recede for a sustained period of time has contributed to unintended consequences acutely manifesting in global demand and supply constraints. In the United States, the shortage of workers is leading to accelerated wage gains, particularly in the service sector, adding to the pressure on realized inflation data points. Although market-based measures of long-term inflation remain “anchored” and US Treasury Yields are below 2.0% out to the ten-year maturity point, realized inflation is now at uncomfortable levels with year-over-year Core PCE inflation most recently at 4.7% (November 2021) compared to a reading of 1.5% in December 2020. Most market participants are forecasting inflation readings to moderate in 2022, partly due to base effects in 2022 compared to 2021 and an easing of some of the supply side constraints, but the magnitude and pace of the reduction is a significant market uncertainty. Central bank policy makers are embracing risk management considerations via accelerating the unwinding of several of the policy support tools created during the pandemic to create policy optionality in the event the forecasted reduction in realized inflation does not occur. The US Federal Reserve is no longer extremely dovish, dropping the “transitory” description of inflation, arguing their dual mandates of full employment and stable prices has mostly been met. US growth is forecast to remain above trend in 2022 and the Federal Reserve will remove some policy accommodation via moderately increasing the Fed Funds rate and a reduction in the size of the balance sheet, but overall financial conditions are unlikely to enter restrictive territory in Chandler’s judgement. The pace of job creation slowed during the fourth quarter of 2021 with the three- month moving average on non-farm payrolls contracting to a still robust 331k as of December 2021 compared to 651k as of September 2021. The U3 unemployment rate is now at 3.9%, compared to 4.7% in September, however the participation rate remains below pre-pandemic levels of 61.9% in December 2021 compared to Executive Summary Page 5 63.4% in January 2020, before the onset of the coronavirus pandemic in the United States. Average hourly earnings on a year over year basis are at 4.7% as of December 2021, compared to 3.0% in January 2020. As the coronavirus pandemic matures and enters the endemic stage, Chandler believes the participation rate will begin to increase, helping to offset some of the recent wage inflation. Moving to the endemic stage will also help to improve immigration into the United States, which has been underwhelming of late, adding to the supply of available workers. On a longer-term basis, Chandler expects constraints related to global supply chains to ease as more manufacturing capacity moves onshore and the impact of the coronavirus dissipates across regions as more of the global population enters the labor force. Assuming above trend growth and still accommodative financial conditions, despite monetary policy shifting, Chandler believes the backdrop for risk assets will remain constructive in 2022 albeit with higher levels of market volatility compared to 2021. Interest rates increased during the quarter leading to a negative total return for most fixed income strategies. The Treasury curve also continued its recent flattening trend, with two year Treasury notes increasing by 46 basis points during the quarter, five year Treasury notes increasing by 30 basis points, and the ten year Treasury only increasing by 2 basis points, despite the more elevated inflation readings during the quarter. Domestic equity markets outperformed following the flattish performance for the S&P 500 in Q3 2021, with the index returning more than 10% on a quarter over quarter basis in Q4 2021. Chandler expects increased market volatility in 2022 and will be actively adjusting the portfolios underlying constituents and structure to generate solid risk adjusted returns over the cycle. Mid-Year Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. FY 2021-22 Mid-Year Financial Report Page 6 This Page Intentionally Left Blank Consolidated Financial Reports Section 1 - Page 1 Mid-Year Financial Report December 31, 2021 The Financial Management Division is pleased to present the FY 2021-22 mid-year financial report. This report provides a comprehensive overview of the financial activities of the Orange County Sanitation District (OC San) 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 requirements. At December 31, 2021, 48.7 percent, or $89.5 million of the FY 2021-22 net operating budget of $184.0 million has been expended. Net operating expenses increased from the same period last year by $2.6 million, or 2.9 percent, mainly due to an increase of $2.2 million in Salaries and Benefits, $770,000 in Professional Services, $643,000 in Utilities, $260,000 in Administrative Expenses, and $45,000 in Operating Materials and Supplies, partially offset by a decrease of $635,000 in Other Operating Supplies, $532,000 in Repairs and Maintenance, $145,000 in Research and Monitoring, and $99,000 in Contractual Services. These and other variances that factor into this net increase in expenses are discussed in more detail below. Overall, staff expects the total operating costs to remain at or slightly below budget through the remainder of the year. At December 31, 2021, 63.3 percent, or $412.0 million of the FY 2021-22 budgeted total revenues of $650.9 million has been recognized. Revenues increased from the same period last year by $154.7 million, or 60.2%, mainly due to receipt of $164.4 million from issuance of Revenue Refunding Certificates of Participation, Series 2021A, during the first quarter of the fiscal year. Other increases include $4.9 million in Capital Facilities Capacity Charges and $3.6 million in Property Taxes, which are offset by a decrease of $9.4 million in Sludge Disposal-IRWD, $7.0 million in Interest Earnings, $803,000 in Service Fees, and $792,000 in Intra District Sewer Use-IRWD. These and other variances that factor into this net increase in revenues are discussed in more detail below. Overall, staff expects the total revenues to be at or slightly above budget at the end of the fiscal year. Significant operating results as of December 31, 2021, include the following: Salaries, Wages and Benefits – Personnel costs of $54.2 million are on target at 50.1 percent of the budget through the mid-year of FY 2021-22. The budget is based on a 5 percent vacancy factor, and staffing is 19 full-time equivalents (FTEs), or 3.0 percent below the total 639 FTEs approved in the FY 2021-22 budget. Salary and benefit costs are $2.2 million, or 4.3 percent higher than the $51.9 million incurred in the same period last year, mainly due to an increase of $1.6 million in Salaries and Wages, $423,000 in Group Insurances, and $131,000 in Workers’ FY 2021-22 Mid-Year Financial Report Section 1 - Page 2 Compensation. Net operating personnel costs are expected to approximate budget throughout the remainder of the year. Administrative Expenses – Administrative Expenses totaled $1.3 million, or 63.0 percent of the $2.1 million budget through December 31. These costs are $260,000, or 25.0 percent higher at December 31 in comparison with the prior year, mainly due to an increase of $136,000 in Small Computer Items, $63,000 in Minor Furniture & Fixtures for installation of Plant No. 2 Maintenance workstations, and $62,000 in Memberships. It is anticipated that administrative costs will approximate or be above budget at year-end. Printing and Publication Expenses – Printing and Publication Expenses totaled $123,000, or 29.3 percent of the $420,000 budget through December 31. These costs are $11,000, or 10.1 percent higher at December 31 in comparison with the prior year, due to an increase in costs incurred for legal notices and employment recruitment. Printing and publication costs are expected to be below budget at year-end. Training and Meetings – Training and meetings of $190,000 is below target at 21.0 percent of the $907,000 budget through December 31. This account is lower than the proportionate budget due to the timing and need for training throughout the year, and the limiting or canceling of in-person training and meetings in response to the COVID-19 pandemic. These costs have increased over the same period last year by $6,000, or 3.2 percent. Total training and meeting costs are anticipated to be below budget at year-end. Operating Materials and Supplies – Operating materials and supplies of $10.5 million is approximating the target at 47.8 percent of the $22.0 million budget through December 31. Operating Materials and Supplies is higher than the prior year by $45,000, or 0.4 percent, mostly due to increases of $207,000 in Odor and Corrosion Control, $144,000 in Chemical Coagulants resulting from increased usage of cationic polymer, and $67,000 in Gasoline, Diesel, and Oil, offset by a decrease of $190,000 in Disinfection from reduced purchases of sodium hypochlorite and $187,000 in Tools. Based on current processes, operating materials and supplies are anticipated to approximate budget at year-end. Contractual Services – Contractual services is below target at $8.3 million, or 43.3 percent of the $19.1 million budget through December 31. Solids Removal costs, budgeted at $13.1 million, comprise the majority of this expense category at $5.8 million, or 44.6 percent of its budget at December 31. Contractual Services is lower by $99,000, or 1.2 percent over the same period last year, mainly due to the decrease of $67,000 in Other Contractual Services and $65,000 in Other Waste Disposal. County Service Fees totaled only $12,000, or 2.4 percent of the $504,000 budget through the mid-year, as the preponderance of these fees are billed by the County in the fourth quarter. Total contractual services costs are anticipated to approximate or be below budget at year-end. Consolidated Financial Reports Section 1 - Page 3 Professional Services – Professional services costs totaled $2.3 million, or 33.4 percent of the $6.9 million budget through December 31. Professional services costs, such as Environmental Scientific Consulting, Software Program Consulting, Industrial Hygiene Services and Other Professional Services, are proportionately low through December 31 due to a variety of factors such as timing of services and re- evaluation of need for services. These costs are $770,000, or 50.1 percent higher at December 31 in comparison with the prior year, mainly due to an increase of $361,000 in Legal Services, $236,000 in Engineering, and $106,000 in Other Professional Services. It is anticipated that the costs for this category will be below budget at year-end. Research and Monitoring – Research and monitoring costs totaled $697,000, or 45.0 percent of the $1.5 million budget through December 31. These costs are $145,000, or 17.3 percent lower at December 31 in comparison with the prior year, due to a decrease of $153,000 in Environmental Monitoring costs for ocean water quality analysis and $12,000 in Air Quality Monitoring costs for emissions testing, offset by an increase of $20,000 in Research costs reflecting the higher annual contribution to Southern California Coastal Water Research Project. Total research and monitoring costs are anticipated to approximate budget at year-end. Repairs and Maintenance – Repairs and maintenance costs totaled $15.0 million, or 50.4 percent of the $29.7 million budget through December 31. These costs are $532,000, or 3.4 percent lower at December 31 in comparison with the prior year, due to a decrease in repair and maintenance services and materials, such as for secondary clarifier repairs. It is anticipated that the costs for this category will approximate budget at year-end. Utilities – Utilities costs totaled $5.7 million, or 61.2 percent of the $9.3 million budget through December 31. These costs are $643,000, or 12.7 percent higher at December 31 in comparison with the prior year, primarily due to an increase of $631,000 for Power due to greater electricity consumption and higher unit costs and $94,000 for Natural Gas as the result of a volatile market price index, partially offset by a decrease of $93,000 for Water. It is anticipated that the costs will be above budget at year-end. Other Operating Supplies – Other operating supplies costs totaled $1.6 million, or 39.2 percent of the $4.2 million budget through December 31. Property and General Liability Insurance, budgeted at $2.2 million, comprise the majority of this expense category at $1.1 million. Overall, Other Operating Supplies is $635,000, or 27.8 percent lower at December 31 in comparison with the prior year, primarily due to a decrease of $718,000 in Regulatory Operating Fees from the timing of payments for ocean discharge permit fees, which is partially offset by an increase of $124,000 in Miscellaneous Operating Expense due to sampling and analysis of polyfluoroalkyl substances (PFAS). It is anticipated that other operating supplies costs will approximate budget at year-end. FY 2021-22 Mid-Year Financial Report Section 1 - Page 4 Revenues – Service Fees and Property Taxes – Through December 31, revenues from Service Fees are at $167.6 million, or 55.5 percent of the $301.8 million budget and Property Taxes are at $61.9 million, or 60.0 percent of the $103.2 million budget. These items comprise the majority of OC San’s revenues and are mostly collected by the County through the property tax roll and distributed to OC San throughout the year based on a set distribution schedule that begins in November of each year. The decrease of $803,000, or 0.5 percent in service fee revenue over the prior year is primarily due to the timing of receipts. The property tax revenue increase of $3.6 million, or 6.2 percent over the prior year is a result of the timing of secured and redevelopment agency tax receipts, as well as growth in assessed property values. These revenues are expected to approximate budget at year-end. Revenues – Permit Fees – Permit Fees are at $6.6 million, or 52.1 percent of the $12.6 million budget. The revenues through the mid-year are higher than the same period last year by $338,000, or 5.4 percent, due to rate increases and the number of permittees fluctuating from year to year as businesses establish or cease their operations. Permit Fees revenues are expected to approximate budget at year- end. Revenues – Inter District Sewer Use – SAWPA and SBSD – Inter District Sewer Use-SAWPA and SBSD are at $1.4 million, or 52.1 percent of the $2.7 million budget. This revenue is derived from charges to the Santa Ana Watershed Protection Agency (SAWPA) and Sunset Beach Sanitary District (SBSD) for treatment of flows. The revenues through the mid-year are higher than the same period last year by $17,000, or 1.2 percent, due to an increase in operation and maintenance charges based on flows received from these agencies. These revenues are expected to approximate budget at year-end. Revenues – Intra District Sewer Use – IRWD – Intra District Sewer Use-IRWD are at $197,000, or 4.2 percent of the $4.6 million budget. This revenue is derived from charges to the Irvine Ranch Water District (IRWD) for treatment of flows. The revenues through the mid-year are lower than the same period last year by $792,000, or 80.1 percent, due to a decrease of $551,000 in operating and maintenance charges to IRWD, resulting from a prior year adjustment, and an increase of $455,000 in property tax income allocated to IRWD, offset by a decrease of $214,000 in interest income allocated to IRWD. These revenues are expected to be below budget at year-end. Revenues – Sludge Disposal – IRWD – Sludge Disposal-IRWD, budgeted at $6.1 million, has not recognized any revenues through December 31. This revenue is for the handling, treatment, and disposal of solids derived from flows discharged by IRWD to OC San. Billings are based on estimates, with a reconciled adjustment recorded in subsequent years. The revenues through the mid-year are lower than the same period last year by $9.4 million, or 100.0 percent, due to IRWD commissioning their new solids processing facilities and reducing their diversion of solids to OC San’s line to near zero. Consequently, no billings have been produced Consolidated Financial Reports Section 1 - Page 5 through December 31. It is anticipated that IRWD sludge disposal revenues will be below budget at year-end. Revenues – Capital Assessments – IRWD – Capital Assessments-IRWD are at $1.5 million, or 18.6 percent of the $7.9 million budget. The revenues through the mid-year are higher than the same period last year by $195,000, or 15.3 percent, mainly due to an increase in joint capital costs allocable to IRWD. It is estimated that IRWD capital assessments revenues will be below budget at year-end. Revenues – Capital Facilities Capacity Charges (CFCC) – CFCC are at $9.3 million, or 55.5 percent of the $16.7 million budget. The revenues through the mid-year are higher than the same period last year by $4.9 million, or 112.2 percent, due to increases in capacity charges collected from local agencies and supplemental charges assessed to industrial dischargers. These revenues are expected to approximate budget at year-end. Revenues – Interest Earnings – Interest Earnings are at negative $3.9 million, or -27.1 percent of the $14.5 million budget. The revenues through the mid-year are lower than the same period last year by $7.0 million, or 227.1 percent, due to a negative total rate of return on securities held in the long-term investment portfolio, which is largely comprised of unrealized losses. It is estimated that interest earnings will be below budget at year-end. Revenues – CIP Reimbursements – CIP Reimbursements are at $1.6 million, or 13.7 percent of the $11.8 million budget. This revenue is $468,000, or 22.4 percent lower than the same period last year and is due to timing of reimbursements for construction projects, such as the budgeted $8.6 million from Orange County Water District (OCWD) for P2-122 Headworks Modifications at Plant No. 2 for GWRS Final Expansion and $3.1 million from OCWD for J-117B Outfall Low Flow Pump Station. These revenues are expected to approximate or be below budget at year-end. Revenues – Wastehauler – Wastehauler revenues are at $438,000, or 58.4 percent of the $750,000 budget. This revenue is derived from fees charged to wastehaulers, allowing them to dump waste into OC San’s system. The revenues through the mid-year are higher than the same period last year by $57,000, or 14.9 percent, due to an increase in waste dumping. These revenues are expected to approximate or be above budget at year-end. Revenues – CNG Sales – CNG Sales revenues are at $169,000, or 42.2 percent of the $400,000 budget. This revenue is derived from public sales at OC San’s Compressed Natural Gas (CNG) fueling station. The revenues through the mid-year are higher than the same period last year by $61,000, or 56.9 percent, presumably attributed to the decrease in commuting in the prior year brought about by COVID- 19. These revenues are expected to be below budget at year-end. FY 2021-22 Mid-Year Financial Report Section 1 - Page 6 Revenues – Rents & Leases – Rents & Leases revenues are at $229,000, or 38.1 percent of the $600,000 budget. The revenues through the mid-year are lower than the same period last year by $123,000, or 35.0 percent, due to less rent received as tenants move out of the properties acquired for construction of the new headquarters complex. These revenues are expected to be below budget at year-end. Revenues – Power Sales – Power Sales revenues are at $152,000, or 608.4 percent of the $25,000 budget. The revenues through the mid-year are higher than the same period last year by $133,000, or 708.5 percent, due to both an increase in the quantity of surplus generated energy exported to Southern California Edison and an increase in the buyback rate. Revenues – Other – Other revenues are at $428,000, or 15.4 percent of the $2.8 million budget. These revenues are $398,000, or 48.2 percent lower than the same period last year, primarily due to a net decrease of $269,000 in miscellaneous other revenue from large prior year capital project settlement payments offset by current year federal credit for COVID-19 supplemental paid sick leave, and decreases of $85,000 in operating cost reimbursement and $81,000 in civil penalties, partially offset by an increase of $27,000 in deferred compensation administrative activities. These revenues are expected to approximate or be below budget at year-end. Consolidated Financial Reports Section 1 - Page 7 Comparison of Mid-Year Cost per Million Gallon Results with Budget Last Five Years As demonstrated in the preceding graph for the current and each of the last four fiscal years, the cost per million gallons at the end of the mid-year has been between 1.1 percent higher and 8.2 percent lower than the annual budget. The FY 2021-22 mid-year cost per million gallons of $2,695 is 0.5 percent higher when compared with this year’s budget. The increase in cost per million gallons of $126 from the previous year is primarily due to an increase in operating expenses, which are 2.9 percent higher than the same period last year, and a decrease in flows, which are 1.9 percent lower than the same period last year. Staff believes that overall operating costs will be at or slightly below budget at year-end. The total cost per million gallons at December 31 is $2,695 based on flows of 181 million gallons per day. This is $14 per million gallons, or 0.5 percent higher than the budgeted cost per million gallons of $2,681. There is an inverse relationship between the amount of flows and the cost per unit of collection, treatment, and disposal. Consequently, the higher cost per million gallons is due to flows of 181 million gallons per day being 4.0 percent less than the budgeted flow of 188 million gallons per day, partially offset by net expenses being 2.6 percent lower than the proportionate budget through December 31. More detailed information on operating revenues, costs, and related information is provided within Section 2. $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2,300 $2,400 $2,500 $2,600 $2,700 $2,800 17-18 18-19 19-20 20-21 21-22 $2 , 1 2 5 $2 , 2 1 6 $2 , 3 3 4 $2 , 5 6 9 $2 , 6 9 5 $2 , 2 5 0 $2 , 4 1 3 $2 , 4 5 1 $2 , 5 4 0 $2 , 6 8 1 Mid-Year Fiscal Year Budget□ □ FY 2021-22 Mid-Year Financial Report Section 1 - Page 8 Following are data tables showing the last five years of Single Family Residential User Fees (SFR) and the cost per million gallons (MG) to collect, treat, and dispose of wastewater for the Orange County Sanitation District and similar agencies. The agencies used in the tables were determined to be those that most closely resembled OC San in terms of services provided and treatment levels. The summaries demonstrate that OC San’s SFR and cost per MG are each one of the lowest in their respective groups. 2017 2018 2019 2020 2021 Agency SFR SFR SFR SFR SFR Notes San Francisco 937$ 988 1,076 1,169 1,270 Vallejo Sanitation/Flood Control District 520$ 585 656 715 747 Central Contra Costa Sanitary District 530$ 567 598 598 660 City of Los Angeles 527$ 561 597 636 636 Note 1 City of San Diego 573$ 573 573 573 573 Note 2 Union Sanitary District 393$ 407 421 421 524 Note 3 Dublin San Ramon Services District 397$ 423 447 469 486 East Bay MUD 391$ 410 423 439 457 City of Hayward 375$ 394 412 430 446 Sacramento County 432$ 444 444 444 444 Orange County Sanitation District 331$ 335 339 339 343 Oro Loma Sanitary District 238$ 256 275 296 318 Irvine Ranch Water District 309$ 309 313 313 313 Note 4 City of Fresno 309$ 309 309 309 309 Note 5 Los Angeles County 186$ 191 196 213 226 Note 6 Notes: (1) - Data is for the typical SFR customer rate. (2) - Data represents the base sewer fee plus the average usage of 9 hundred cubic feet per month. (3) - Deferred rate increase for July 2020 incorporated into July 2021 rate. (4) - Data represents the usage of 10 hundred cubic feet per unit. (5) - Data represents the minimum SFR rate not including flow. (6) - Data represents the Average Service Charge Rates for the prior fiscal year. Benchmark Study Five-Year Single Family Residential Rate Rates as of July Consolidated Financial Reports Section 1 - Page 9 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Agency Svc. Trt. Cost/MG Cost/MG Cost/MG Cost/MG Cost/MG Notes Vallejo Sanitation/Flood Control District B 3 4,745$ 5,393 6,137 8,682 9,108 Note 1 San Francisco B 3 4,916$ 5,295 5,995 7,573 N/A Note 2 Union Sanitary District B 3 4,039$ 4,757 4,838 5,655 5,569 Central Contra Costa Sanitary District B 4 6,081$ 5,588 3,980 5,284 N/A Note 3 City of San Diego B 4 3,834$ 4,147 4,180 3,977 4,219 East Bay MUD T 3 2,353$ 3,137 2,710 3,122 4,052 Note 4 Dublin San Ramon Services District B 4 2,961$ 3,422 3,692 3,441 3,570 Note 5 Sacramento County T 4 2,752$ 2,831 2,812 3,407 3,470 City of Los Angeles B 4 2,487$ 2,329 3,046 3,021 2,763 Note 6 Orange County Sanitation District B 3 2,055$ 2,069 2,275 2,422 2,428 Los Angeles County B 4 1,965$ 2,077 2,264 2,343 2,338 Note 7 City of Fresno B 4 1,796$ 1,813 1,945 1,993 N/A Legend for Service Provided and Treatment Level: B - Agency operates both collection and treatment facilities T - Agency provides treatment services but not collection 2 - Advanced primary or primary with some secondary treatment 3 - Secondary treatment 4 - Advanced secondary or secondary with some tertiary treatment Notes: (1) - In FY19-20, Agency updated FY18-19 Annual Comprehensive Financial Report treatment cost. (4) - FY18-19 operating expense decreased $1.1 million. (5) - FY20-21 costs include both treatment and collection costs (Regional Fund 300 + Local Fund 200). (7) - In FY19-20, Agency updated data for FY16-17 and after to include administrative costs. N/A - Not currently available. Benchmark Study Five-Year Cost per MG (2) - FY19-20 operating expense increased $2.9 million and average daily flow decreased 19.3MG per day. Combined stormwater/sewer system. (6) - FY17-18 influent flow has not been reduced by the amount of sludge discharged to the sewers from DCTWRP and LAGWRP. (3) - FY18-19 operating expense decreased $36.4 million; $30.4 million due to an adjustment to the Agency's Other Post Employment Benefit Plan (OPEB) - Transition to CalPers Health Insurance. FY 2021-22 Mid-Year Financial Report Section 1 - Page 10 Capital Outlay Review: As depicted by the preceding chart, Capital Outlays totaled $56.9 million, or 25.3 percent of the capital outlay cash flow budget for FY 2021-22 as of December 31, 2021. Costs are lower than the proportionate budget through the mid-year as some projects are still in the design phase or have experienced various delays or deferrals. Examples as of December 31 are Rehabilitation of Western Regional Sewers, which has a budget of $13.1 million but actual costs of $1.6 million, Primary Treatment Rehabilitation at Plant No. 2, which has a budget of $19.8 million but actual costs of $952,000, and Headquarters Complex, which has a budget of $45.1 million but actual costs of $6.5 million. Overall, the capital outlay costs of the capital improvement program are expected to approximate $204.8 million, or 91.2 percent of the capital outlay cash flow budget at year-end. More detailed information on the capital improvement program is provided within Section 3. Capital Assets Schedule and Debt Service Budget Review: Section 4 is the Capital Assets Schedule and Debt Service Section. This section shows the cost value of OC San’s capital facilities at December 31, 2021, as well as the debt service costs resulting from the need to provide funding for the construction of capital facilities. The majority of principal payments on debt issues are due in February, during the third quarter of each fiscal year. Excluding payments on refunding debt from the Revenue Refunding Certificates of Participation, Series 2021A, as of December 31, 2021, no principal payments have been made. Total principal payments are expected to approximate budget at year-end. Interest costs are expensed ratably throughout the fiscal year. Interest expense is anticipated to approximate budget at year-end. $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 12/31/21 Actual Capital Outlay $56,884,365 Projected 2021-22 Capital Outlay $204,821,000 2021-22 Capital Outlay Cashflow Budget $224,561,000 Consolidated Financial Reports Section 1 - Page 11 Self-Insurance Budget Review: Section 5 is the Self-Insurance Section. Through December 31, the Self-Insurance Fund revenues totaled $1.5 million, or 51.7 percent of the budget, while expenses are at $1.6 million, or 46.3 percent of the budget. 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. FY 2021-22 Mid-Year Financial Report Section 1 - Page 12 This Page Intentionally Left Blank Operating Budget Review $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Ex e c u t i v e M a n a g e m e n t Hu m a n R e s o u r c e s Ad m i n i s t r a t i v e S e r v i c e s En v i o r n m e n t a l S e r v i c e s En g i n e e r i n g Op e r a t i o n s & M a i n t e n a n c e Cost per Million Gallons by Department Budget and Actual December 31, 2021 Budget Actual $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 Sa l a r y & W a g e s Em p l o y e e B e n e f i t s Ad m i n i s t r a t i v e E x p e n s e s Pr i n t i n g & P u b l i c a t i o n Tr a i n i n g & M e e t i n g s Op e r a t i n g M a t e r i a l s & S u p p l i e s Co n t r a c t u a l S e r v i c e s Pr o f e s s i o n a l S e r v i c e s Re s e a r c h & M o n i t o r i n g Re p a i r s & M a i n t e n a n c e Ut i l i t i e s Ot h e r M a t e r i a l s , S u p p l i e s , & S v c s Collection, Treatment, & Disposal Expenses by Major Category Budget and Actual (in thousands) December 31, 2021 Budget Actual Section 2 - Page 1 ,, --... ,--... --... ,_ -... --... ,_ -... >--.,,..,...-:;;; V _ ___,, --' ,_ ...... -L ~ -- "fJ_ ,_ I I / ,J'--1 L:.il-~? □ □ ... ,... I ..... ~ -I ~~ -I I! I ~ --1!1trb ITT,uLL --- □ □ Divisional Contributions to Cost Per Million Gallons For the Six Months Ended December 31, 2021 2021-22 12/31/19 12/31/20 Annual 12/31/21 Actual Actual Budget Actual Flow in Million Gallons 34,481.22 33,859.20 68,620.00 33,222.87 Flow in Million Gallons per Day 187.40 184.02 188.00 180.56 Executive Management Department General Management Administration 32.42$ 24.78$ 27.45$ 24.25$ Board Services 9.24 13.00 14.15 14.20 Public Affairs 16.70 16.43 20.43 16.94 Subtotal 58.36 54.21 62.03 55.39 Human Resources Department Human Resources 61.43 52.23 64.84 69.03 Risk Management / Safety / Security 79.97 51.61 62.43 59.21 Subtotal 141.40 103.84 127.27 128.24 Administrative Services Department Administrative Services 9.03 7.66 3.99 9.32 Consolidated Services - 89.59 114.43 98.32 Financial Management 40.85 64.42 62.16 63.20 Contracts, Purchasing, & Materials Mgmt.61.12 68.61 71.40 76.18 Information Technology 204.08 197.32 199.79 219.17 Subtotal 315.08 427.60 451.77 466.19 Environmental Services Department Environmental Services Administration 19.61 21.17 59.41 62.65 Resource Protection 81.27 86.62 98.54 83.62 Laboratory, Monitoring and Compliance 167.18 195.29 151.11 143.16 Subtotal 268.06 303.08 309.06 289.43 Engineering Department Engineering Administration 15.27 19.57 20.15 22.69 Planning 52.69 50.94 64.11 61.17 Project Management Office 69.03 66.97 62.67 69.64 Design 108.70 97.97 102.34 106.11 Construction Management 94.69 101.58 106.33 108.53 Subtotal 340.38 337.03 355.60 368.14 Operations & Maintenance Department Operations & Maintenance Administration 3.97 2.00 9.05 2.27 Collections Facilities O & M 162.97 207.83 290.32 226.93 Fleet Services 27.31 27.19 33.15 34.31 Plant No. 1 Operations 448.06 490.11 489.92 515.21 Plant No. 2 Operations 259.52 266.15 278.03 267.99 Plant No. 1 Maintenance 314.30 355.83 350.26 403.55 Plant No. 2 Maintenance 285.03 300.51 240.65 250.20 Subtotal 1,501.16 1,649.62 1,691.38 1,700.46 Total Operating Expenses 2,624.44 2,875.38 2,997.11 3,007.85 Cost Allocation (290.83) (306.26) (316.42) (312.44) Net Operating Requirements 2,333.61$ 2,569.12$ 2,681.00$ 2,695.41$ FY 2021-22 Mid-Year Financial Report Section 2 - Page 2 Comparison of Expenses by Department For the Six Months Ended December 31, 2021 2021-22 12/31/19 12/31/20 Year to Date Budget % Department and Division Actual Actual Budget 12/31/21 Realized Executive Management Department General Management Administration 1,117,989$ 838,923$ 1,883,461$ 805,787$ 42.78% Board Services 318,659 440,176 971,245 471,878 48.58% Public Affairs 575,927 556,430 1,402,096 562,728 40.13% Subtotal 2,012,575 1,835,529 4,256,802 1,840,393 43.23% Human Resources Department Human Resources 2,118,082 1,768,493 4,449,222 2,293,432 51.55% Risk Management / Safety / Security 2,757,525 1,747,465 4,283,781 1,967,054 45.92% Subtotal 4,875,607 3,515,958 8,733,003 4,260,486 48.79% Administrative Services Department Administrative Services 311,306 259,313 273,820 309,694 113.10% Consolidated Services - 3,033,609 7,852,225 3,266,316 41.60% Financial Management 1,408,491 2,181,071 4,265,348 2,099,790 49.23% Contracts, Purchasing, & Materials Mgmt. 2,107,389 2,322,923 4,899,742 2,530,783 51.65% Information Technology 7,037,087 6,681,141 13,709,504 7,281,428 53.11% Subtotal 10,864,273 14,478,057 31,000,639 15,488,011 49.96% Environmental Services Department Environmental Services Administration 676,272 716,753 4,076,942 2,081,291 51.05% Resource Protection 2,802,305 2,932,772 6,761,792 2,777,956 41.08% Laboratory, Monitoring and Compliance 5,764,716 6,612,361 10,369,367 4,756,121 45.87% Subtotal 9,243,293 10,261,886 21,208,101 9,615,368 45.34% Engineering Department Engineering Administration 526,555 662,593 1,382,852 753,844 54.51% Planning 1,816,775 1,724,783 4,399,094 2,032,380 46.20% Project Management Office 2,380,242 2,267,587 4,300,735 2,313,491 53.79% Design 3,747,941 3,317,329 7,022,705 3,525,405 50.20% Construction Management 3,264,991 3,439,486 7,296,647 3,605,715 49.42% Subtotal 11,736,504 11,411,778 24,402,033 12,230,835 50.12% Operations & Maintenance Department Operations & Maintenance Administration 136,893 67,707 621,180 75,465 12.15% Collections Facilities O & M 5,619,439 7,036,860 19,922,006 7,539,114 37.84% Fleet Services 941,739 920,572 2,274,876 1,139,736 50.10% Plant No. 1 Operations 15,449,718 16,594,660 33,618,420 17,116,797 50.91% Plant No. 2 Operations 8,948,614 9,011,578 19,078,603 8,903,299 46.67% Plant No. 1 Maintenance 10,837,403 12,048,246 24,035,166 13,407,179 55.78% Plant No. 2 Maintenance 9,828,144 10,175,189 16,513,125 8,312,317 50.34% Subtotal 51,761,950 55,854,812 116,063,376 56,493,907 48.68% Total Operating Expenses 90,494,202 97,358,020 205,663,954 99,929,000 48.59% Cost Allocation (10,028,374) (10,369,765) (21,713,080) (10,379,845) 47.80% Net Operating Requirements 80,465,828$ 86,988,255$ 183,950,874$ 89,549,155$ 48.68% Operating Budget Review Section 2 - Page 3 Summary of Collection, Treatment, & Disposal Expenses by Major Category For the Six Months Ended December 31, 2021 Expense Expense Increase Increase Percent Budget Through Through (Decrease)(Decrease)Budget Remaining 2021-22 12/31/21 12/31/20 $%Realized Budget Salary & Wages 82,939,020$ 41,040,777 39,409,659 1,631,118$ 4.14%49.48%41,898,243$ Employee Benefits 25,162,820 13,128,520 12,520,566 607,954 4.86%52.17%12,034,300 Administrative Expenses 2,064,546 1,300,375 1,040,425 259,950 24.98%62.99%764,171 Printing & Publication 420,350 123,272 111,972 11,300 10.09%29.33%297,078 Training & Meetings 906,798 190,011 184,172 5,839 3.17%20.95%716,787 Operating Materials & Supplies 21,964,434 10,502,046 10,456,717 45,329 0.43%47.81%11,462,388 Contractual Services 19,144,782 8,283,298 8,382,263 (98,965) -1.18%43.27%10,861,484 Professional Services 6,920,852 2,308,798 1,538,407 770,391 50.08%33.36%4,612,054 Research & Monitoring 1,547,700 696,573 841,816 (145,243) -17.25%45.01%851,127 Repairs & Maintenance 29,717,346 14,976,107 15,508,124 (532,017) -3.43%50.40%14,741,239 Utilities 9,329,726 5,706,152 5,062,823 643,329 12.71%61.16%3,623,574 Other Materials, Supplies, and Services 5,545,580 1,673,071 2,301,076 (628,005) -27.29%30.17%3,872,509 Net Cost Allocation (21,713,080) (10,379,845) (10,369,765) (10,080) 0.10%47.80%(11,333,235) Net Operating Requirements 183,950,874 89,549,155 86,988,255 2,560,900 2.94%48.68%94,401,719 Gallonage Flow (MG)68,620.00 33,222.87 33,859.20 (636.33) -1.88% Gallonage Flow (MGD)188.00 180.56 184.02 (3.46) -1.88% Gallonage Flow ($'s /MG)$2,681.00 $2,695.41 $2,569.12 $126.29 4.92% Description FY 2021-22 Mid-Year Financial Report Section 2 - Page 4 Revenue Percent Revenue Increase Increase Budget Through Budget Remaining Through (Decrease)(Decrease) Description 2021-22 12/31/21 Realized Budget 12/31/20 $% Service Fees 301,839,390$ 167,618,802$ 55.53% 134,220,588$ 168,422,191$ (803,389)$ -0.48% Permit Fees 12,621,177 6,581,036 52.14% 6,040,141 6,242,567 338,469 5.42% Inter District Sewer Use-SAWPA & SBSD 2,653,000 1,382,725 52.12% 1,270,275 1,365,831 16,894 1.24% Intra District Sewer Use-IRWD 4,648,984 196,739 4.23% 4,452,245 988,239 (791,500) -80.09% Sludge Disposal-IRWD 6,100,000 - 0.00% 6,100,000 9,397,106 (9,397,106) -100.00% Capital Assessments-IRWD 7,905,000 1,468,963 18.58% 6,436,037 1,274,266 194,697 15.28% Capital Facilities Capacity Charges 16,739,034 9,293,742 55.52% 7,445,292 4,379,324 4,914,418 112.22% Debt Proceeds 163,775,355 164,350,308 100.35% (574,953) - 164,350,308 100.00% Property Taxes 103,214,240 61,921,621 59.99% 41,292,619 58,311,944 3,609,677 6.19% Interest Earnings 14,516,000 (3,938,299) -27.13% 18,454,299 3,098,447 (7,036,746) -227.11% CIP Reimbursements 11,782,925 1,618,971 13.74% 10,163,954 2,086,932 (467,961) -22.42% Wastehauler 750,000 437,773 58.37% 312,227 380,905 56,868 14.93% Grant Revenue 464,000 - 0.00% 464,000 - - 0.00% CNG Sales 400,000 168,622 42.16% 231,378 107,457 61,165 56.92% Rents & Leases 600,000 228,802 38.13% 371,198 352,138 (123,336) -35.02% Other Revenues 2,779,105 428,324 15.41% 2,350,781 826,657 (398,333) -48.19% Power Sales 25,000 152,097 608.39% (127,097) 18,812 133,285 708.51% Other Sales 50,000 93,822 187.64% (43,822) 4,233 89,589 2116.44% Total Revenues 650,863,210$ 412,004,048$ 63.30% 238,859,162$ 257,257,049$ 154,746,999$ 60.15% Summary of Revenues For the Six Months Ended December 31, 2021 Operating Budget Review Section 2 - Page 5 FY 2021-22 Mid-Year Financial Report Summary of Collection, Treatment, & Disposal Expenses by Line Item For the Six Months Ended December 31, 2021 Expense Percent Expense Increase Budget Through Budget Remaining Through (Decrease) Description 2021-22 12/31/21 Expensed Budget 12/31/20 $ Salaries, Wages & Benefits Salaries & Wages 82,939,020$ 41,040,777$ 49.48% 41,898,243$ 39,409,659$ 1,631,118$ 4.14% Employee Benefits Retirement 11,594,420 6,243,066 53.85%5,351,354 6,157,450 85,616 1.39% Group Insurances 11,962,600 5,961,775 49.84%6,000,825 5,538,617 423,158 7.64% Tuition & Certification Reimb 80,600 59,953 74.38%20,647 39,506 20,447 51.76% Edu. degrees, Cert. & Lic.622,400 349,627 56.17%272,773 335,521 14,106 4.20% Uniform Rental 113,400 51,152 45.11%62,248 56,703 (5,551) -9.79% Workers' Compensation 518,600 389,999 75.20%128,601 259,400 130,599 50.35% Unemployment Insurance 151,500 10,657 7.03%140,843 75,677 (65,020) -85.92% EMT Supplemental Benefits 119,300 62,291 52.21%57,009 57,692 4,599 7.97% Total Benefits 25,162,820 13,128,520 52.17% 12,034,300 12,520,566 607,954 4.86% Salaries, Wages & Benefits 108,101,840 54,169,297 50.11% 53,932,543 51,930,225 2,239,072 4.31% Matl, Supplies, & Services Administrative Expenses Memberships 708,350 459,979 64.94%248,371 397,735 62,244 15.65% Office Exp - Supplies 65,971 24,900 37.74%41,071 16,755 8,145 48.61% Postage 50,750 12,785 25.19%37,965 23,510 (10,725) -45.62% Books & Publications 38,685 13,560 35.05%25,125 12,276 1,284 10.46% Forms 590 - 0.00%590 - - N/A Small Computer Items 950,500 582,257 61.26%368,243 446,534 135,723 30.39% Minor Furniture & Fixtures 249,700 206,894 82.86%42,806 143,615 63,279 44.06% Subtotal 2,064,546 1,300,375 62.99%764,171 1,040,425 259,950 24.98% Printing & Publication Repro-In-House 235,350 69,478 29.52%165,872 84,051 (14,573) -17.34% Printing-Outside 42,750 3,349 7.83%39,401 14,152 (10,803) -76.34% Notices & Ads 142,200 50,445 35.47%91,755 13,769 36,676 266.37% Photo Processing 50 - 0.00%50 - - N/A Subtotal 420,350 123,272 29.33%297,078 111,972 11,300 10.09% Training & Meetings Meetings 113,590 4,655 4.10%108,935 4,131 524 12.68% Training 793,208 185,356 23.37%607,852 180,041 5,315 2.95% Subtotal 906,798 190,011 20.95%716,787 184,172 5,839 3.17% Operating Mat'ls & Supplies Chemical Coagulants 10,670,543 5,443,221 51.01%5,227,322 5,299,290 143,931 2.72% Odor & Corrosion Control 7,643,709 3,292,696 43.08%4,351,013 3,085,214 207,482 6.73% Disinfection 133,000 41,725 31.37%91,275 231,254 (189,529) -81.96% Chemicals - Misc & Cogen 437,000 155,751 35.64%281,249 198,228 (42,477) -21.43% Gasoline, Diesel & Oil 623,372 347,225 55.70%276,147 279,991 67,234 24.01% Tools 676,155 351,766 52.02%324,389 539,092 (187,326) -34.75% Safety equipment/tools 747,620 369,555 49.43%378,065 351,426 18,129 5.16% Solv, Paints & Jan. Supplies 113,606 67,615 59.52%45,991 51,149 16,466 32.19% Lab Chemicals & Supplies 660,249 322,267 48.81%337,982 306,361 15,906 5.19% Misc. Operating Supplies 182,680 87,175 47.72%95,505 101,565 (14,390) -14.17% Property Tax Fees 76,500 23,050 30.13%53,450 13,147 9,903 75.33% Subtotal 21,964,434 10,502,046 47.81%11,462,388 10,456,717 45,329 0.43% Contractual Services Solids Removal 13,100,000 5,841,917 44.59%7,258,083 5,823,992 17,925 0.31% Other Waste Disposal 988,500 387,850 39.24%600,650 452,805 (64,955) -14.35% Groundskeeping 200,000 88,520 44.26%111,480 89,745 (1,225) -1.36% Janitorial 640,280 417,457 65.20%222,823 405,168 12,289 3.03% Outside Lab Services 356,590 106,409 29.84%250,181 69,915 36,494 52.20% Oxygen 370,000 230,135 62.20%139,865 266,402 (36,267) -13.61% County Service Fee 503,672 12,235 2.43%491,437 10,566 1,669 15.80% Temporary Services 607,000 217,888 35.90%389,112 214,503 3,385 1.58% Security Services 1,600,000 814,554 50.91%785,446 815,589 (1,035) -0.13% Other 778,740 166,333 21.36%612,407 233,578 (67,245) -28.79% Subtotal 19,144,782 8,283,298 43.27%10,861,484 8,382,263 (98,965) -1.18% Increase (Decrease) % Section 2 - Page 6 (Continued) Operating Budget Review Summary of Collection, Treatment, & Disposal Expenses by Line Item For the Six Months Ended December 31, 2021 Expense Expense Increase Increase Budget Through Remaining Through (Decrease)(Decrease) Description 2021-22 12/31/21 Expensed Budget 12/31/20 $% Continued: Professional Services Legal 1,542,600 693,154 44.93% 849,446 332,243 360,911 108.63% Audit & Accounting 287,800 112,852 39.21% 174,948 67,010 45,842 68.41% Engineering 1,318,000 774,111 58.73% 543,889 538,099 236,012 43.86% Enviro Scientific Consulting 679,000 17,512 2.58% 661,488 35,398 (17,886) -50.53% Software Prgm Consulting 707,000 162,904 23.04% 544,096 135,499 27,405 20.23% Energy Consulting - 4,000 N/A (4,000) - 4,000 N/A Advocacy Efforts 187,975 90,134 47.95% 97,841 83,900 6,234 7.43% Industrial Hygiene Services 100,000 12,539 12.54% 87,461 11,618 921 7.93% Labor Negotiation Services - 609 N/A (609) - 609 N/A Other 2,098,477 440,983 21.01% 1,657,494 334,640 106,343 31.78% Subtotal 6,920,852 2,308,798 33.36% 4,612,054 1,538,407 770,391 50.08% Research & Monitoring Environmental Monitoring 797,700 139,363 17.47% 658,337 292,540 (153,177) -52.36% Air Quality Monitoring 150,000 37,075 24.72% 112,925 49,276 (12,201) -24.76% Research 600,000 520,135 86.69% 79,865 500,000 20,135 4.03% Subtotal 1,547,700 696,573 45.01% 851,127 841,816 (145,243) -17.25% Repairs & Maintenance Materials & Services 23,380,374 10,897,800 46.61% 12,482,574 12,431,790 (1,533,990) -12.34% Svc. Mtc. Agreements 6,336,972 4,078,307 64.36% 2,258,665 3,076,334 1,001,973 32.57% Subtotal 29,717,346 14,976,107 50.40% 14,741,239 15,508,124 (532,017) -3.43% Utilities Telephone 506,084 251,249 49.65% 254,835 247,897 3,352 1.35% Diesel For Generators 43,000 15,211 35.37% 27,789 6,818 8,393 123.10% Natural Gas 1,005,000 672,485 66.91% 332,515 578,308 94,177 16.28% Power 6,728,435 4,212,754 62.61% 2,515,681 3,582,043 630,711 17.61% Water 1,047,207 554,453 52.95% 492,754 647,757 (93,304) -14.40% Subtotal 9,329,726 5,706,152 61.16% 3,623,574 5,062,823 643,329 12.71% Other Operating Supplies Outside Equip Rental 100,000 13,614 13.61% 86,386 18,197 (4,583) -25.19% Insurance Premiums 32,900 36,733 111.65% (3,833) 31,451 5,282 16.79% Prop & Gen Liab Insurance 2,205,000 1,069,996 48.53% 1,135,004 1,102,494 (32,498) -2.95% Freight 150,000 74,381 49.59% 75,619 83,062 (8,681) -10.45% Misc. Operating Expense 623,927 231,675 37.13% 392,252 108,067 123,608 114.38% Regulatory Operating Fees 1,090,024 220,367 20.22% 869,657 938,849 (718,482) -76.53% Subtotal 4,201,851 1,646,766 39.19% 2,555,085 2,282,120 (635,354) -27.84% General Mgr Contingency & Reappropriations 1,204,549 - 0.00% 1,204,549 - - N/A Other Non-Oper Expense 139,180 26,305 18.90% 112,875 18,956 7,349 38.77% Total Materials, Supplies & Services 97,562,114 45,759,703 46.90% 51,802,411 45,427,795 331,908 0.73% Total Expenditures 205,663,954 99,929,000 48.59% 105,734,954 97,358,020 2,570,980 2.64% Cost Allocation (21,713,080) (10,379,845) 47.80% (11,333,235) (10,369,765) (10,080) 0.10% Net Operating Requirements 183,950,874$ 89,549,155$ 48.68%94,401,719$ 86,988,255$ 2,560,900$ 2.94% Percent Budget Section 2 - Page 7 FY 2021-22 Mid-Year Financial Report Summary of Collection, Treatment, & Disposal Expenses by Process For the Six Months Ended December 31, 2021 Increase Increase Actual Actual (Decrease)(Decrease) 12/31/21 12/31/20 $% Process: Preliminary Treatment 5,299,684$ 5,480,790$ (181,106)$ -3.30% Primary Treatment 9,545,079 9,375,267 169,812 1.81% Secondary Treatment 6,044,624 5,852,570 192,054 3.28% Cryogenic Plant (Plant 2)483,280 616,806 (133,526) -21.65% Effluent Disposal 843,393 923,804 (80,411) -8.70% Solids Handling 27,261,096 23,607,348 3,653,748 15.48% Cogeneration 11,050,533 9,906,589 1,143,944 11.55% Utilities 2,067,047 2,442,024 (374,977) -15.36% Electrical Distribution 1,532,790 1,563,468 (30,678) -1.96% Miscellaneous Buildings 5,800,349 5,663,386 136,963 2.42% External Location 234,625 253,469 (18,844) -7.43% Nerissa Vessel 127,705 145,773 (18,068) -12.39% Laboratory 7,645,395 10,219,449 (2,574,054) -25.19% Collections 11,613,555 10,937,512 676,043 6.18% Net Operating Requirements 89,549,155$ 86,988,255$ 2,560,900$ 2.94% Section 2 - Page 8 Staffing Trends Full Time Equivalents December 31, 2021 At December 31, 2021, the total head count was 628 employees, or a full time equivalency of 620. Operating Budget Review 450 500 550 600 650 700 6/30/18 6/30/19 6/30/20 6/30/21 12/31/21 603 614 606 619 620 32 22 34 20 19 Actual Vacant 635 636 640 639 639 Section 2 - Page 9 □ □ FY 2021-22 Mid-Year Financial Report This Page Intentionally Left Blank Section 2 - Page 10 Capital Improvement Program By Process Area and Project Driver For the Six Months Ended December 31, 2021 Capital Improvement Program Budget Review Total Capital Improvement Outlays by Project Driver - $56,884,365 Rehabilitation and Replacement: 64.5% Strategic Initiatives: 28.2% Additional Capacity: 5.9% Regulatory: 1.4% Total Capital Improvement Outlays by Process Area - $56,884,365 Collections Facilities: 24.6% Liquid Treatment: 45.7% Solids Handling & Digestion: 4.9% Utility Systems: 6.1% Support Facilities: 14.6% Other: 4.1% Section 3 - Page 1 □ □ □ □ □ □ □ □ □ □ FY 2021-22 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2021 2021-22 2021-22 2021-22 Cashflow Actual at Projected Budget 12/31/2021 Outlay Collection System Improvement Projects Collections Facilities Santa Ana Trunk Sewer Rehabilitation 914,334 65,374 117,500 Greenville-Sullivan Trunk Improvements 286,363 11,549 43,500 Taft Branch Capacity Improvements 1,422,835 93,590 1,194,300 Newhope-Placentia Trunk Replacement 5,662,265 4,962,444 6,894,800 Westminster Blvd Force Main Replacement 8,458,681 2,333,968 5,310,300 Rehabilitation of Western Regional Sewers 13,051,457 1,617,830 12,902,800 Interstate 405 Widening Project Impacts on OC San Sewers 21,696 145,636 167,900 Seal Beach Pump Station Replacement 2,133,205 2,294,248 3,539,900 Bay Bridge Pump Station Replacement 3,676,612 774,104 3,759,000 Newport Beach Pump Station Pressurization Improvements 326,219 86,152 169,300 Fairview Trunk Sewer Rehabilitation 187,716 85,428 118,800 Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation 772,900 559,391 1,344,800 MacArthur Force Main Improvement 417,411 105,672 514,400 Edinger Pump Station Replacement 74,449 79,139 93,500 Slater Pump Station Rehabilitation 235,537 - 115,900 Small Construction Projects Program - Collections 2,573,276 503,511 1,784,500 Operations & Maintenance Capital Program - Collections - 23,304 23,400 Planning Studies Program - Collections - 81,981 642,000 Sunflower and Red Hill Interceptor Repairs 2,704,438 158,304 2,829,600 Subtotal - Collections Facilities 42,919,394 13,981,625 41,566,200 Revenue Area 14 Bay Bridge Pumping Station Rehabilitation (3.62%) 138,092 29,075 141,200 Newport Beach Pump Station Pressurization Improve (0.27%) 883 233 500 Subtotal - Revenue Area 14 138,975 29,308 141,700 Total Collection System Improvement Projects 43,058,369 14,010,933 41,707,900 Section 3 - Page 2 (Continued) Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2021 2021-22 2021-22 2021-22 Cashflow Actual at Projected Budget 12/31/2021 Outlay Treatment & Disposal Projects Headworks Headworks Rehabilitation at Plant 1 33,064,764 12,971,363 33,290,700 Headworks Modifications at P2 for GWRS Final Expansion 8,481,733 3,098,100 6,376,000 Subtotal - Headworks 41,546,497 16,069,463 39,666,700 Primary Treatment Primary Sedimentation Basins 3-5 Replacement at Plant 1 459,659 81,672 198,000 Primary Sedimentation Basins 6-31 Reliability Improv at P1 606,804 108,786 899,900 Primary Treatment Rehabilitation at Plant 2 19,836,957 952,221 13,501,400 Subtotal - Primary Treatment 20,903,420 1,142,679 14,599,300 Secondary Treatment Return Activated Sludge Piping Replacement at Plant 1 144,269 5,069 5,900 Activated Sludge-1 Aeration Basin & Blower Rehab at P1 485,387 - 105,900 Return Activated Sludge Piping Replacement at Plant 2 3,285,100 645,793 2,575,900 Activated Sludge Aeration Basin Rehabilitation at Plant 2 163,451 - 64,500 Subtotal - Secondary Treatment 4,078,207 650,862 2,752,200 Solids Handling & Digestion Digester Ferric Chloride Piping Replacement at Plant 1 723,747 63,601 795,900 Sludge Dewatering and Odor Control at Plant 2 694,948 8,871 8,900 Interim Food Waste Receiving Facility 3,201,672 - 13,300 TPAD Digester Facility at Plant 2 10,066,820 2,646,072 8,617,700 Digesters Rehabilitation at Plant No. 2 537,702 80,113 164,600 Subtotal - Solids Handling & Digestion 15,224,889 2,798,657 9,600,400 Ocean Outfall Systems Ocean Outfall System Rehabilitation 23,933,041 8,119,270 18,875,000 Sodium Bisulfite Station Rehabilitation at Plant 2 60,381 - 27,500 Subtotal - Ocean Outfall Systems 23,993,422 8,119,270 18,902,500 Utility Systems Electrical Power Distribution System Improvements 2,107,681 591,437 1,422,300 Digester Gas Facilities Rehabilitation 1,398,801 681,848 1,835,000 Natural Gas Pipelines Replacement at Plants 1 and 2 221,883 274,152 648,800 Central Generation Engine Overhauls at Plants 1 and 2 3,788,815 1,793,474 3,030,400 Power Building Structural Seismic Improv at Plants 1 & 2 161,114 9,220 13,900 Uninterruptable Power Supply Improvements at Plant 1 625,925 114,559 268,600 Network and Server Relocation at Plant 1 179,978 - - Warehouse, Electrical, & 12kV Serv Center Replace at P2 - 805 900 Subtotal - Utility Systems 8,484,197 3,465,495 7,219,900 Capital Improvement Program Budget Review Section 3 - Page 3 (Continued) FY 2021-22 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2021 2021-22 2021-22 2021-22 Cashflow Actual at Projected Budget 12/31/2021 Outlay Process Related Special Projects Safety Improvements Program 248,320 (2,885) 1,200 Subtotal - Process Related Special Projects 248,320 (2,885) 1,200 Information Management Systems Process Control Systems Upgrades 3,406,549 127,743 1,494,800 Project Management Information System 294,481 85,886 267,900 Information Technology Capital Program 1,778,736 46,939 2,172,300 Geographic Information System 16,283 139,790 182,800 EAM Software and Process Implementation 448,311 178,141 373,200 Process Control Systems Upgrades Study 504,920 12,171 12,200 Subtotal - Information Management Systems 6,449,280 590,670 4,503,200 Strategic & Master Planning Planning Studies Program 4,105,202 736,004 3,182,900 Subtotal - Strategic & Master Planning 4,105,202 736,004 3,182,900 Water Management Projects GWRS Final Expansion Coordination 309,211 230,564 425,500 Subtotal - Water Management Projects 309,211 230,564 425,500 Research Research Program 806,894 269,501 809,200 Subtotal - Research 806,894 269,501 809,200 Support Facilities Small Construction Projects Program 9,428,681 1,386,367 4,303,800 Operations & Maintenance Capital Program 2,022,639 174,595 731,100 Headquarters Complex 45,106,221 6,529,515 49,441,600 South Perimeter Security & Utility Improvements at Plant 1 3,852,526 116,343 2,739,700 Support Buildings Seismic Improvements at Plant 1 776,979 31,028 54,200 Collections Yard Relocation 39,814 - 15,200 Operations and Maintenance Complex at Plant 2 355,419 73,436 186,900 Subtotal - Support Facilities 61,582,279 8,311,284 57,472,500 Section 3 - Page 4 (Continued) Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2021 2021-22 2021-22 2021-22 Cashflow Actual at Projected Budget 12/31/2021 Outlay Others Capital Improvement Program Management Services 13,167 7,871 18,900 Subtotal - Others 13,167 7,871 18,900 Additional Charges to CIP Completed at 6/30/21 - (288) 47,600 Total Treatment and Disposal Projects 187,744,985 42,389,147 159,202,000 Capital Equipment Purchases 3,785,600 484,285 3,911,100 Total Collection, Treatment and Disposal Projects and Capital Equipment Purchases 234,588,954 56,884,365 204,821,000 Add: Future Rehab and Replacement 5,000,000 - - Less: Savings and Deferrals (15,028,451) - - Net Collection, Treatment and Disposal Projects and Capital Equipment Purchases 224,560,503$ 56,884,365$ 204,821,000$ Capital Improvement Program Budget Review Section 3 - Page 5 FY 2021-22 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 2021 Current Total Approved June 30, 2021 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2022 Budget Collection System Improvement Projects Collections Facilities Santa Ana Trunk Sewer Rehabilitation 54,620,000 - 117,500 117,500 54,502,500 Greenville-Sullivan Trunk Improvements 48,600,000 - 43,500 43,500 48,556,500 Taft Branch Capacity Improvements 16,800,000 273,632 1,194,300 1,467,932 15,332,068 Newhope-Placentia Trunk Replacement 112,000,000 103,242,051 6,894,800 110,136,851 1,863,149 Yorba Linda Dosing Station Installation 11,000,000 - - - 11,000,000 Beach Relief / Knott / Miller Holder Trunk Rehabilitation 35,132,000 - - - 35,132,000 Westminster Blvd Force Main Replacement 44,000,000 27,735,893 5,310,300 33,046,193 10,953,807 Rehabilitation of Western Regional Sewers 82,000,000 18,727,849 12,902,800 31,630,649 50,369,351 Interstate 405 Widening Project Impacts on OC San Sewers 250,000 239,821 167,900 407,721 (157,721) Seal Beach Pump Station Replacement 87,000,000 3,872,431 3,539,900 7,412,331 79,587,669 Los Alamitos Sub-Trunk Extension 117,000,000 - - - 117,000,000 Crystal Cove Pump Station Rehabilitation 13,200,000 - - - 13,200,000 Bay Bridge Pump Station Replacement 71,321,200 3,224,995 3,759,000 6,983,995 64,337,205 Newport Beach Pump Station Pressurization Improvements 4,288,390 435,361 169,300 604,661 3,683,729 Fairview Trunk Sewer Rehabilitation 17,000,000 - 118,800 118,800 16,881,200 MacArthur Pump Station Rehabilitation 9,800,000 - - - 9,800,000 Main Street Pump Station Rehabilitation 37,000,000 - - - 37,000,000 Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation 39,000,000 870,846 1,344,800 2,215,646 36,784,354 MacArthur Force Main Improvement 3,500,000 57,943 514,400 572,343 2,927,657 North Trunk Improvements 10,000,000 - - - 10,000,000 Edinger Pump Station Replacement 13,500,000 - 93,500 93,500 13,406,500 Slater Pump Station Rehabilitation 31,000,000 - 115,900 115,900 30,884,100 Small Construction Projects Program - Collections 12,552,000 2,513,928 1,784,500 4,298,428 8,253,572 Operations & Maintenance Capital Program - Collections 821,719 535,606 23,400 559,006 262,713 Planning Studies Program - Collections 5,533,600 3,665,360 642,000 4,307,360 1,226,240 Research Program - Collections 154,000 46,250 - 46,250 107,750 Sunflower and Red Hill Interceptor Repairs 6,999,998 513,231 2,829,600 3,342,831 3,657,167 Subtotal - Collections Facilities 884,072,907 165,955,197 41,566,200 207,521,397 676,551,510 Revenue Area 14: Bay Bridge Pumping Station Rehabilitation (3.62%) 2,678,800 121,130 141,200 262,330 2,416,470 Newport Beach Pump Station Pressurization Improve (0.27%) 11,610 1,179 500 1,679 9,931 Subtotal - Revenue Area 14 2,690,410 122,309 141,700 264,009 2,426,401 Total Collection System Improvement Projects 886,763,317 166,077,506 41,707,900 207,785,406 678,977,911 Section 3 - Page 6 (Continued) Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 2021 Current Total Approved June 30, 2021 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2022 Budget Treatment & Disposal Projects Headworks Headworks Rehabilitation at Plant 1 340,000,000 36,669,521 33,290,700 69,960,221 270,039,779 Headworks Modifications at P2 for GWRS Final Expansion 32,000,000 18,549,280 6,376,000 24,925,280 7,074,720 Subtotal - Headworks 372,000,000 55,218,801 39,666,700 94,885,501 277,114,499 Primary Treatment Primary Sedimentation Basins 3-5 Replacement at Plant 1 127,000,000 603,492 198,000 801,492 126,198,508 Primary Sedimentation Basins 6-31 Reliability Improv at P1 14,000,000 2,019,464 899,900 2,919,364 11,080,636 Primary Treatment Rehabilitation at Plant 2 195,000,000 35,711,624 13,501,400 49,213,024 145,786,976 B/C-Side Primary Clarifiers Rehabilitation at Plant 2 279,842,000 - - - 279,842,000 Subtotal - Primary Treatment 615,842,000 38,334,580 14,599,300 52,933,880 562,908,120 Secondary Treatment Return Activated Sludge Piping Replacement at Plant 1 9,300,000 9,172,692 5,900 9,178,592 121,408 Activated Sludge-1 Aeration Basin & Blower Rehab at P1 270,000,000 - 105,900 105,900 269,894,100 Return Activated Sludge Piping Replacement at Plant 2 10,000,000 6,368,931 2,575,900 8,944,831 1,055,169 Activated Sludge Aeration Basin Rehabilitation at Plant 2 65,600,000 - 64,500 64,500 65,535,500 Subtotal - Secondary Treatment 354,900,000 15,541,623 2,752,200 18,293,823 336,606,177 Solids Handling & Digestion Digester Ferric Chloride Piping Replacement at Plant 1 1,360,000 261,018 795,900 1,056,918 303,082 Sludge Dewatering and Odor Control at Plant 2 90,477,000 86,433,925 8,900 86,442,825 4,034,175 Interim Food Waste Receiving Facility 6,300,000 1,347,003 13,300 1,360,303 4,939,697 TPAD Digester Facility at Plant 2 455,000,000 6,220,071 8,617,700 14,837,771 440,162,229 Digester P, Q, R, and S Replacement 165,900,000 - - - 165,900,000 Digesters Rehabilitation at Plant No. 2 40,632,000 82,197 164,600 246,797 40,385,203 Subtotal - Solids Handling & Digestion 759,669,000 94,344,214 9,600,400 103,944,614 655,724,386 Ocean Outfall Systems Ocean Outfall System Rehabilitation 166,000,000 94,720,368 18,875,000 113,595,368 52,404,632 Sodium Bisulfite Station Rehabilitation at Plant 2 3,834,000 - 27,500 27,500 3,806,500 Emergency Overflow Pipes & Windwall Rehabilitation at P2 4,200,000 - - - 4,200,000 Subtotal - Ocean Outfall Systems 174,034,000 94,720,368 18,902,500 113,622,868 60,411,132 Utility Systems Electrical Power Distribution System Improvements 26,500,000 1,515,397 1,422,300 2,937,697 23,562,303 Digester Gas Facilities Rehabilitation 173,000,000 14,783,708 1,835,000 16,618,708 156,381,292 Natural Gas Pipelines Replacement at Plants 1 and 2 2,000,000 1,373,777 648,800 2,022,577 (22,577) Central Generation Engine Overhauls at Plants 1 and 2 44,000,000 1,361,621 3,030,400 4,392,021 39,607,979 Power Building Structural Seismic Improv at Plants 1 & 2 5,400,000 - 13,900 13,900 5,386,100 Capital Improvement Program Budget Review Section 3 - Page 7 (Continued) FY 2021-22 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 2021 Current Total Approved June 30, 2021 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2022 Budget Utility Systems (continued) Central Generation Rehabilitation at Plant 1 68,452,000 - - - 68,452,000 Uninterruptable Power Supply Improvements at Plant 1 7,000,000 1,150,638 268,600 1,419,238 5,580,762 12.47 kV Switchgear Replacement at CenGen at Plant 1 17,000,000 - - - 17,000,000 Network and Server Relocation at Plant 1 13,000,000 - - - 13,000,000 Standby Generator Feeders for P1 Secondary Systems 2,800,000 - - - 2,800,000 Central Generation Rehabilitation at Plant 2 108,000,000 - - - 108,000,000 Warehouse, Electrical, & 12kV Serv Center Replace at P2 65,000,000 625,371 900 626,271 64,373,729 Subtotal - Utility Systems 532,152,000 20,810,512 7,219,900 28,030,412 504,121,588 Process Related Special Projects Safety Improvements Program 16,000,000 11,949,615 1,200 11,950,815 4,049,185 Subtotal - Process Related Special Projects 16,000,000 11,949,615 1,200 11,950,815 4,049,185 Information Management Systems Process Control Systems Upgrades 37,000,000 - 1,494,800 1,494,800 35,505,200 Project Management Information System 2,280,000 1,369,758 267,900 1,637,658 642,342 Information Technology Capital Program 10,000,000 949,587 2,172,300 3,121,887 6,878,113 Geographic Information System 4,568,000 3,802,488 182,800 3,985,288 582,712 EAM Software and Process Implementation 9,200,000 6,316,356 373,200 6,689,556 2,510,444 Process Control Systems Upgrades Study 3,400,000 2,499,708 12,200 2,511,908 888,092 Subtotal - Information Management Systems 66,448,000 14,937,897 4,503,200 19,441,097 47,006,903 Strategic & Master Planning Planning Studies Program 23,118,400 5,590,699 3,182,900 8,773,599 14,344,801 Subtotal - Strategic & Master Planning 23,118,400 5,590,699 3,182,900 8,773,599 14,344,801 Water Management Projects GWRS Final Expansion Coordination 1,332,000 747,432 425,500 1,172,932 159,068 Subtotal - Water Management Projects 1,332,000 747,432 425,500 1,172,932 159,068 Research Research Program 8,346,000 817,484 809,200 1,626,684 6,719,316 Subtotal - Research 8,346,000 817,484 809,200 1,626,684 6,719,316 Section 3 - Page 8 (Continued) Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 2021 Current Total Approved June 30, 2021 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30, 2022 Budget Support Facilities Small Construction Projects Program 77,448,000 15,450,267 4,303,800 19,754,067 57,693,933 Operations & Maintenance Capital Program 14,800,281 4,436,822 731,100 5,167,922 9,632,359 Laboratory Rehabilitation at Plant 1 44,200,000 - - - 44,200,000 Headquarters Complex 167,500,000 38,433,116 49,441,600 87,874,716 79,625,284 South Perimeter Security & Utility Improvements at Plant 1 10,000,000 1,571,099 2,739,700 4,310,799 5,689,201 Support Buildings Seismic Improvements at Plant 1 23,730,000 22,239 54,200 76,439 23,653,561 Collections Yard Relocation 1,900,000 - 15,200 15,200 1,884,800 Operations and Maintenance Complex at Plant 2 95,000,000 - 186,900 186,900 94,813,100 Subtotal - Support Facilities 434,578,281 59,913,543 57,472,500 117,386,043 317,192,238 Others Capital Improvement Program Management Services 700,000 355,310 18,900 374,210 325,790 Subtotal - Others 700,000 355,310 18,900 374,210 325,790 Additional Charges to CIP Completed at 6/30/21 - - 47,600 47,600 (47,600) Total Treatment and Disposal Projects 3,359,119,681 413,282,078 159,202,000 572,484,078 2,786,635,603 Capital Equipment Purchases 9,062,800 - 3,911,100 3,911,100 5,151,700 Total Collection, Treatment and Disposal Projects and Capital Equipment Purchases 4,254,945,798$ $579,359,584 $204,821,000 $784,180,584 $3,470,765,214 Capital Improvement Program Budget Review Section 3 - Page 9 FY 2021-22 Mid-Year Financial Report This Page Intentionally Left Blank Section 3 - Page 10 Capital Assets Schedule & Debt Service Budget Review For the Six Months Ended December 31, 2021 Balance Year-to-Date Balance 07/01/21 Activity 12/31/21 CONSTRUCTION IN PROGRESS (CIP): Treatment Plant 136,187,441$ 42,873,432$ 179,060,873$ Collection System 265,012,603 14,010,933 279,023,536 Subtotal 401,200,044 56,884,365 458,084,409 PROPERTY, PLANT & EQUIPMENT (at cost): Land and Property Rights 57,680,623 - 57,680,623 Collection Lines and Pump Stations 897,488,748 - 897,488,748 Treatment Facilities 2,842,786,854 - 2,842,786,854 Effluent disposal facilities 96,972,016 - 96,972,016 Solids disposal facilities 3,463,236 - 3,463,236 General and administrative facilities 248,712,229 - 248,712,229 Excess purchase price over book value on acquired assets 19,979,000 - 19,979,000 Subtotal 4,167,082,706 - 4,167,082,706 Total Property, Plant & Equipment & CIP 4,568,282,750$ 56,884,365$ 4,625,167,115$ 2021-22 Year-to-Date Remaining Budget Payments % of Budget Budget Principal Payments by Debt Issue: 2010A BABs - - -- 2010C BABs - - -- 2011A COP 75,370,000 61,575,000 81.70%13,795,000 2012A COP - - -- 2012B COP 1,500,000 - 0.00%1,500,000 2014A COP 8,245,000 - 0.00%8,245,000 2015A COP - - -- 2016A COP 4,865,000 - 0.00%4,865,000 2017A COP - - -- 2018A CANs 102,200,000 102,200,000 100.00%- 2021A COP 5,525,000 - 0.00%5,525,000 Subtotal Principal Payments 197,705,000 163,775,000 82.84% 33,930,000 Interest Expense by Debt Issue: 2010A BABs 2,986,574 2,106,337 70.53%880,237 2010C BABs 6,724,010 4,742,255 70.53%1,981,755 2011A COP 689,750 566,475 82.13%123,275 2012A COP 3,735,900 1,867,950 50.00%1,867,950 2012B COP 276,150 138,075 50.00%138,075 2014A COP 2,804,000 1,402,000 50.00%1,402,000 2015A COP 6,375,500 3,187,750 50.00%3,187,750 2016A COP 6,524,800 3,262,400 50.00%3,262,400 2017A COP 3,290,750 1,645,375 50.00%1,645,375 2018A CANs - 439,978 N/A (439,978) 2021A COP 3,393,921 3,362,114 99.06%31,807 Subtotal Interest Expense 36,801,355 22,720,709 61.74% 14,080,646 Total Debt Service 234,506,355$ 186,495,709$ 79.53% 48,010,646$ Section 4 - Page 1 Capital Assets Schedule Capital Assets Schedule & Debt Service Budget Review Debt Service Budget Review FY 2021-22 Mid-Year Financial Report This Page Intentionally Left Blank Section 4 - Page 2 General Liability and Property Fund Budget Review For the Six Months Ended December 31, 2021 Actual Actual 2021-22 Through Through Budget 12/31/21 12/31/20 Revenues: In-Lieu Premiums 2,140,000$ 1,069,996$ 50.00%1,070,004$ 1,102,494$ (32,498)$ Service Department Allocations - 3,552 N/A (3,552) 3,552 - Total Revenues 2,140,000 1,073,548 50.17%1,066,452 1,106,046 (32,498) Expenses: Benefits/Claims 40,000 3,233 8.08%36,767 - 3,233 Legal Services 40,000 - 0.00%40,000 - - Professional Services 20,000 10,177 50.89%9,823 - 10,177 Subtotal 100,000 13,410 13.41%86,590 - 13,410 Policy Premium Expense 2,509,393 1,226,313 48.87%1,283,080 970,096 256,217 Total Expenses 2,609,393 1,239,723 47.51%1,369,670 970,096 269,627 Excess Revenue (Expense)(469,393) (166,175) (303,218)$ 135,950 (302,125) Beginning Reserves 98,000,000 98,861,957 98,648,623 213,334 Ending Reserves 97,530,607$ 98,695,782$ 98,784,573$ (88,791)$ 12/31/21 Budget (Decrease) Self Insurance Budget Review Percent of Budget Remaining Through 2021-22 Increase Section 5 - Page 1 FY 2021-22 Mid-Year Financial Report Workers' Compensation Fund Budget Review For the Six Months Ended December 31, 2021 Actual Actual 2021-22 Through Through Budget 12/31/21 12/31/21 12/31/20 Revenues: In-Lieu Premiums 780,000$ 390,000$ 50.00% 390,000$ 259,400$ 130,600$ Service Department Allocations - 44,850 N/A (44,850) 44,850 - Total Revenues 780,000 434,850 55.75%345,150 304,250 130,600 Expenses: Benefits/Claims 430,000 185,426 43.12% 244,574 193,539 (8,113) Legal Services 80,000 - 0.00% 80,000 25,084 (25,084) Professional Services 60,000 40,562 67.60% 19,438 34,313 6,249 Subtotal 570,000 225,988 39.65%344,012 252,936 (26,948) Policy Premium Expense 271,860 133,178 48.99%138,682 102,385 30,793 Total Expenses 841,860 359,166 42.66%482,694 355,321 3,845 Excess Revenue (Expense)(61,860) 75,684 (137,544)$ (51,071) 126,755 Beginning Reserves 2,000,000 2,149,679 2,235,687 (86,008) Ending Reserves 1,938,140$ 2,225,363$ 2,184,616$ 40,747$ Budget (Decrease) Percent of Budget Remaining Through 2021-22 Increase Section 5 - Page 2 January 31, 2022 STAFF REPORT Mid-Year Treasurer’s Report For the Period Ended December 31, 2021 SUMMARY Section 17.0 of the Orange County Sanitation District's (OC San) Investment Policy includes quarterly reporting requirements for OC San's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by Chandler Asset Management, OC San’s external money manager. The ongoing monitoring of OC San's investment program by staff and Callan Associates, OC San's independent investment advisor, indicates that OC San’s investments are in compliance with OC San'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 OC San to meet budgeted expenditures for the next six months. OC San’s portfolios do not include any reverse repurchase agreements or derivative securities. ADDITIONAL INFORMATION Performance Reports The Quarterly Strategy Review, prepared by Chandler Asset Management, and the Investment Measurement Service Quarterly Review, prepared by Callan Associates, is 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 OC San’s portfolios, as of December 31, 2021. The Liquid Operating Monies portfolio, with an average maturity of 99 days, consists entirely of high quality fixed income investments consistent with OC San’s investment policy. Portfolio Performance Summary The following table presents a performance summary of OC San’s portfolios as compared to their benchmarks as of December 31, 2021. Mid-Year Treasurer’s Report For the Period Ended December 31, 2021 Page 2 of 4 (1) Benchmarks: Liquid Operating Portfolio: ICE BAML 3-Month Treasury Bill Index Long-Term Operating Portfolio: ICE BAML 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. Quarter Ending Liquid Operating Monies ($M) Long-Term Operating Monies ($M) 31 Mar 21 165.8 654.4 30 Jun 21 207.8 686.0 30 Sep 21 129.9 686.4 31 Dec 21 230.9 742.2 Portfolio Performance Summary As of December 31, 2021 Liquid Operating Monies (%)Long-Term Operating Monies (%) Total Rate of Return Benchmark(1) Total Rate of Return Benchmark(1) 3 Months 0.00 0.01 -0.63 -0.69 6 Months 0.02 0.02 -0.61 -0.67 9 Months 0.04 0.02 -0.42 -0.47 12 Months 0.08 0.05 -0.92 -1.00 Annualized Since inception 30 Nov 2014 0.97 0.86 1.80 1.76 Market Value $230.9 M $742.2 M Average Quality “AA+”/”Aaa” “AA+”/”Aa1” Current Yield (%) 0.8 1.4 Estimated Yield to Maturity (%) 0.2 0.8 Quarterly Deposits (Withdrawals) $101.0 M $60.0 M Estimated Annual Income $0.3 M $10.2 M Mid-Year Treasurer’s Report For the Period Ended December 31, 2021 Page 3 of 4 Orange County Sanitation District Investment Account Balances as of December 31, 2021 Investment Accounts Book Balances December 31, 2021 Estimated Yield (%) State of California LAIF Banc of California – General Banc of California – Sweep Banc of California – Workers’ Compensation Banc of California – Property, Liability Claim, Exp Union Bank – Mount Langley Union Bank – Bandilier Chandler/U.S. Bank – Short-Term Portfolio Chandler/U.S. Bank – Long-Term Portfolio Petty Cash BNY Mellon OCIP Reserve TOTAL Debt Service Reserves w/Trustees $65,266,841 3,000,000 10,579,762 82,207 50,000 146,032 603,023 230,861,976 742,070,123 3,000 500,881 $1,053,163,845 $25,634 0.21 0.30 0.02 0.30 0.30 0.40 0.40 0.18 0.82 0.00 0.00 0.63 0.02 Orange County Sanitation District Cost of Funds on Debt Issues as of December 31, 2021 Cost of Funds Issue Description Outstanding COP Balance Annual Interest Rate (%) 2010A Fixed 2010C Fixed 2011A Fixed 2012A Fixed 2012B Fixed 2014A Fixed 2015A Fixed 2016A Fixed 2017A Fixed 2021A Fixed TOTAL Weighted Avg. Cost of Funds 80,000,000 157,000,000 13,795,000 100,645,000 8,170,000 56,080,000 127,510,000 136,830,000 65,815,000 133,510,000 $879,355,000 3.68 4.11 2.61 3.54 1.50 2.34 3.30 3.02 2.55 1.06 2.98 Mid-Year Treasurer’s Report For the Period Ended December 31, 2021 Page 4 of 4 ATTACHMENTS 1. Chandler Quarterly Report 2. Summary of Performance Data and Portfolio Statistics – Liquid Operating Monies 3. Summary of Performance Data and Portfolio Statistics – Long Term Operating Monies 4. Investment Transactions and Balances in LAIF 5. Asset Summary by Asset Type – Liquid Operating Portfolio 6. Asset Summary by Asset Type – Long Term Portfolio 7. Asset Summary by Asset Type – Owner Controlled Insurance Program Escrow Account 8. Investment Listing (Yield Analysis Report) 9. Asset Detail – Consolidated 10. Custody Transaction History – Consolidated 11. Callan Quarterly Review 12. Chandler Quarterly Review 13. Rating Agency Comparisons 1 December 31, 2021 Mr. Lorenzo Tyner Assistant General Manager Director of Finance and Administrative Services Orange County Sanitation District 10844 Ellis Avenue Fountain Valley CA 92708-7018 Dear Lorenzo, Bond Market Recap Fed policymakers have recently pivoted toward a more hawkish stance as inflation indices continue to run hot and the labor market appears relatively tight, given their dual mandate of promoting maximum employment and stable prices. Although labor force participation remains lower than it was prior to the pandemic, there are signals the economy may be near full employment within the context of the current health situation. The unemployment rate declined from 6.7% to 3.9% in 2021, a high percentage of workers are voluntarily quitting jobs, the level of job openings relative to those looking for work remains high, and wage growth has been strong. Meanwhile, inflation continues to run well above the Fed’s long-run 2.0% target. The Consumer Price Index excluding food and energy was up 5.5% in December. The Core PCE index, the Fed’s preferred inflation measure, was up 4.7% year-over-year in the latest report. Given the current inflation and employment dynamics, Fed policymakers have begun discussing plans to remove monetary policy accommodation. The Fed is currently tapering its asset purchases and we expect that process will be complete within the next few months. Should aggregate demand remain strong and economic activity remain robust, we believe the first rate hike may be announced in the first half of this year after the taper is complete. However, we do not believe monetary policy is on a pre-set course. We expect the Fed to adjust policy at a gradual pace and believe policymakers will adjust their views as necessary based on incoming economic and financial market data. We believe US economic growth is likely to moderate this year but remain above the long-run trend rate of growth. The consensus forecast for GDP growth this year is 3.9% versus estimated growth of 5.6% in 2021. Amid the current surge of virus infection rates, we believe global supply chains remain challenged and we see risk to the first quarter US GDP consensus estimate of 3.9%. Nevertheless, we believe aggregate consumer demand remains strong and consumer spending, the largest component of US GDP, should remain solid this year, supported by healthy consumer balance sheets, an improving health situation, and ongoing improvement in the labor market. We expect supply chain bottlenecks will continue to put upward pressure on inflation over the near-term but we believe inflation may be at or near a peak, We believe pricing pressure is likely to abate in the second half of this year amid an improving global health backdrop and less acute global supply chain stress. In December, the 2-year Treasury yield increased nearly 17 basis points to 0.73%, the 5-year Treasury yield increased ten basis points to 1.26%, and the 10-year Treasury yield increased about seven basis points to 1.51% in the month. We have witnessed a relatively swift move in Treasury rates this month with the 2-year Treasury yield up roughly 19 basis points, and the 10-year Treasury yield up more than 20 basis points, year-to-date. ,.,,4lCHANDLER '-'• ASSET MANAGEMENT 2 At the end of December, the 2-year Treasury yield was about 61 basis points higher and the 10-Year Treasury yield was about 60 basis points higher, year-over-year. We believe Treasury yields are likely to increase further this year, across the curve. Consumer Prices The Consumer Price Index (CPI) was up 7.0% year-over-year in December, versus up 6.8% year-over-year in November. Core CPI (CPI less food and energy) was up 5.5% year-over-year in December, versus up 4.9% in November. The Personal Consumption Expenditures (PCE) index was up 5.7% year-over-year in November, up from 5.1% in October. Core PCE was up 4.7% year-over-year in November, versus up 4.2% in October. Current inflation readings continue to run well above the Fed’s longer-run target of around 2.0%. Upward pressure on inflation from supply chain bottlenecks and pandemic-related disruptions is likely to remain elevated over the near-term. Retail Sales On a year-over-year basis, retail sales were up 18.2% in November versus up 16.3% in October. On a month-over-month basis, retail sales were softer than expected in November, up 0.3% versus expectations of 0.8%, but this followed an upwardly revised gain of 1.8% in October. In our view, the data suggests that consumers may have started shopping early this holiday season in anticipation of supply shortages. Higher gas prices seem to have taken some wallet share, with spending at gasoline stations up 1.7% month-over-month. Amid the current resurgence of virus cases, the near- term outlook for retail sales is uncertain, and nonstore retailers (online) may be poised to outperform. Labor Market Job growth slowed in December, with US nonfarm payroll growth of just 199,000 in the month versus the consensus forecast of 450,000, but the unemployment rate still declined to 3.9%, the lowest level since February 2020. On a trailing 3-month and 6-month basis, payrolls increased an average of 365,000 and 508,000 per month, respectively, which still compares favorably to the average job gains in the five years leading up to the pandemic of about 196,000 per month. We believe a variety of factors are keeping some workers out of the labor force for now, which continues to hold back job growth despite strong demand from employers. The labor participation rate was unchanged in December at 61.9% and remains lower than the pre-pandemic level of 63.4%. The employment-population ratio increased to 59.5% in December form 59.3% in November, but also remains below the pre-pandemic level of 61.2%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 7.3% in December from 7.7% in November (versus 7.0% in February 2020). Annualized average hourly earnings rose 0.6% month-over-month and were up 4.7% year-over-year in December versus 5.1% in November. Housing Starts Total housing starts jumped 11.8% in November to an annual pace of 1,679,000. Single-family starts increased 11.3% while multi-family starts increased 12.9%, month-over-month. On a year-over-year basis total housing starts were up 8.3% in November. ,-,,a CHANDLER "'·· ASSET MANAGEMENT 3 TREASURY YIELDS 12/31/2021 9/30/2021 CHANGE 3 Month 0.04 0.04 0.00 2 Year 0.73 0.28 0.45 3 Year 0.96 0.51 0.45 5 Year 1.26 0.97 0.29 7 Year 1.44 1.29 0.15 10 Year 1.51 1.49 0.02 30 Year 1.90 2.05 (0.15) ,.,,4lCHANDLER '-'• ASSET MANAGEMENT Supply and Demand Imbalances Continue to Impact Economic Data ECONOMIC INDICATOR Current Release Prior Release One Year Ago Trade Balance (80.17) $Bin NOV 21 (67.16) $Bin OCT21 (67.31) $Bin NOV 20 Gross Domestic Product 2.30%SEP 21 6.70%JUN 21 33.80% SEP 20 Unemployment Rate 3.90% DEC 21 4.20% NOV21 6.70% DEC 20 Prime Rate 3.25% DEC 21 3.25% NOV21 3.25% DEC20 Commodity Research Bureau Index 232.37 DEC 21 219.19 NOV 21 167.80 DEC 20 Oil (West Texas Int.) S76.99 DEC 21 S66.18 NOV 21 $48.52 DEC 20 Consumer Price Index (y/o/y) 7.00% DEC 21 6.80% NOV21 1.40% DEC 20 Producer Price Index (y/o/y) 13.30% NOV 21 12.60% OCT 21 (1.30%) NOV 20 Euro/Dollar 1.1 4 DK 21 1.13 NOV 21 1.22 DEC 20 Source: Bloomberg 4 Performance Attribution Long-Term Portfolio The OC Sanitation Long-Term Portfolio generated a negative total return of -0.63% during the quarter, however the relative performance was positive, outperforming the -0.69% return of the ICE Bank of America Merrill Lynch 1-5 Year US Corporate and Government AAA-A Index. Treasury yields between the two and five year maturity points migrated higher during the quarter as market participants pulled forward the timing of the Federal Reserve’s first expected rate hike in 2022, contributing to the negative total return during the quarter. Credit spreads in aggregate also moved moderately wider, but overall, the credit selection within the portfolio relative to the benchmark was a positive contributor to performance during the quarter. Additionally, the overall term structure of the portfolio, with an out of benchmark allocation to the very front end of the yield curve, was also a positive contributor to the relative return differential of the portfolio. Many securities were purchase in the Treasury, Asset Backed, and Corporate sectors of the market to keep the portfolio invested to strategy and spend down the net $60 million contributed during the quarter. The purchased securities ranged in maturity from April 2022 to October 2026. A few securities were sold and one matured during the reporting period. The sector allocation changed moderately; the two largest changes were the 3.1% increase in the Treasury allocation to 34.9% of the portfolio, partially offset by the 2.8% decline in the Agency allocation to 21.8% of the portfolio. The duration of the portfolio contracted to 2.37 as of December 31, 2021, compared to 2.54 as of September 30, 2021. $50 million of the net $60 million contributed to the portfolio took place in late December and the Chandler team was conservative in reinvesting the new funds due to an expected pick up in market activity in early January 2022. The duration will be migrating higher in the first month of 2022. Liquid Portfolio The Liquidity Portfolio generated a total quarterly return of 0.00% versus the 0.01% return of the ICE Bank of America Merrill Lynch 3-month US Treasury Bill Index. Multiple securities were purchased in the Treasury sector to spend down residual cash and account for upcoming liquidity needs. The purchased securities ranged in maturity from January 2022 to July 2022, corresponding to the heavy cash flow needs at the end of January, June, and early August. A net of $101 million was contributed to the portfolio during the quarter. The asset allocation adjusted due to the large cash contribution during the reporting period. Notably the Treasury allocation increased by 6.6%, to 85.6% of the portfolio, as the new monies were invested in the Treasury sector to offset upcoming liquidity needs. The duration of the portfolio contracted during the quarter to 0.27 years compared to 0.45 year at the end of the prior reporting period. The large liquidity needs in January and June are material factors in the shorter duration of the portfolio. ,.,,4lCHANDLER '-'• ASSET MANAGEMENT 5 Economic Outlook Fixed income markets are entering an inflection point in 2022 and volatility across asset classes is forecasted to increase as the outlook for monetary policy shifted materially in the fourth quarter of 2021. Since the onset of the coronavirus pandemic in 2020 developed market central banks have worked in a mostly synchronized manner, striving to set policy in a predictable fashion and suppress volatility in an effort to support the economic recovery; this dynamic will change in 2022. The inability of the coronavirus pandemic to recede for a sustained period of time has contributed to unintended consequences acutely manifesting in global demand and supply constraints. In the United States, the shortage of workers is leading to accelerated wage gains, particularly in the service sector, adding to the pressure on realized inflation data points. Although market-based measures of long-term inflation remain “anchored” and US Treasury Yields are below 2.0% out to the ten-year maturity point, realized inflation is now at uncomfortable levels with year- over-year Core PCE inflation most recently at 4.7% (November 2021) compared to a reading of 1.5% in December 2020. Most market participants are forecasting inflation readings to moderate in 2022, partly due to base effects in 2022 compared to 2021 and an easing of some of the supply side constraints, but the magnitude and pace of the reduction is a significant market uncertainty. Central bank policy makers are embracing risk management considerations via accelerating the unwinding of several of the policy support tools created during the pandemic to create policy optionality in the event the forecasted reduction in realized inflation does not occur. The US Federal Reserve is no longer extremely dovish, dropping the “transitory” description of inflation, arguing their dual mandates of full employment and stable prices has mostly been met. US growth is forecast to remain above trend in 2022 and the Federal Reserve will remove some policy accommodation via moderately increasing the Fed Funds rate and a reduction in the size of the balance sheet, but overall financial conditions are unlikely to enter restrictive territory in Chandler’s judgement. The pace of job creation slowed during the fourth quarter of 2021 with the three-month moving average on non-farm payrolls contracting to a still robust 331k as of December 2021 compared to 651k as of September 2021. The U3 unemployment rate is now at 3.9%, compared to 4.7% in September, however the participation rate remains below pre- pandemic levels of 61.9% in December 2021 compared to 63.4% in January 2020, before the onset of the coronavirus pandemic in the United States. Average hourly earnings on a year over year basis are at 4.7% as of December 2021, compared to 3.0% in January 2020. As the coronavirus pandemic matures and enters the endemic stage, we believe the participation rate will begin to increase, helping to offset some of the recent wage inflation. Moving to the endemic stage will also help to improve immigration into the United States, which has been underwhelming of late, adding to the supply of available workers. On a longer-term basis, we expect constraints related to global supply chains to ease as more manufacturing capacity moves onshore and the impact of the coronavirus dissipates across regions as more of the global population enters the labor force. Assuming above trend growth and still accommodative financial conditions, despite monetary policy shifting, we believe the backdrop for risk assets will remain constructive in 2022 albeit with higher levels of market volatility compared to 2021. Interest rates increased during the quarter leading to a negative total return for most fixed income strategies. The Treasury curve also continued its recent flattening trend, with two year Treasury notes increasing by 46 basis points during the quarter, five year Treasury notes increasing by 30 basis points, and the ten year Treasury only increasing by 2 basis points, despite the more elevated inflation readings during the quarter. Domestic equity markets outperformed following the flattish performance for the S&P 500 in Q3 2021, with the index returning more than 10% on a quarter over quarter basis in Q4 2021. We expect increased market volatility in 2022 and will be actively adjusting the portfolios underlying constituents and structure to generate solid risk adjusted returns over the cycle. ,.,,4lCHANDLER '-'• ASSET MANAGEMENT 6 Strategy Strategy highlights for the Long-Term portfolio in coming months: • Focus on optimizing the term structure positioning of the portfolio to take advantage of changing market dynamics as the Federal Reserve begins to remove some policy accommodation. A barbell portfolio structure continues to look attractive. • Continue to update the underlying mix of securities within the Corporate allocation. As markets become more volatile, take advantage of the new issue market when possible. • Continue to avoid adding exposure to the Agency sector until relative valuations improve. • Expand the ABS allocation via the new issue market when spreads are typically more attractive. Strategy highlights for the Liquidity portfolio in coming months: • Focus on upcoming liquidity needs based on the cash flow forecast; ensure maturing securities offset cash flow needs. • Opportunistically add longer duration Corporate, Negotiable CD, and Commercial paper beyond the six month maturity point to enhance the total return of the strategy. • Maintain a dedicated exposure to the Treasury sector on an ongoing basis to ensure transactional liquidity in the event of an unexpected cash flow need. ,-,,a CHANDLER '-'•· ASSET MANAGEMENT 7 Compliance Issues Category Standard Comment U.S. Treasuries 10% minimum; 5 years max maturity Complies* Federal Agencies 20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 5 years max maturity; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government , a federal agency, or a US Government-sponsored enterprise Complies Supranational Obligations "AA" rated or better by a NRSRO; 30% max; 5 years max maturity; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-American Development Bank ("IADB") Complies Municipal Securities "A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% max; 5% max issuer; 5 years max maturity Complies Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity; Issued by corporations organized and operating within the U.S. or issued by depository institutions licensed by the U.S. or any state and operating within the U.S. with AUM >$500 million Complies Non- Agency Asset-Backed Securities, Mortgage-Backed Securities, CMOs "AA" rating category or better by a NRSRO; 20% max(combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 5 years max maturity; Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond Complies* Negotiable Certificates of Deposit (NCD)"A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved by the Board of Directors; 30% max; 5% max issuer; 5 years max maturity; Negotiable certificates of deposit issued by a nationally or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code Complies Certificates of Deposit 5% max issuer; 5 years max maturity; Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code and having a net operating profit in the two most recently completed fiscal years; Collateral must comply with California Government Code Complies Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for purchase by the Federal Reserve System Complies Commercial Paper A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and operating in the U.S. with assets > $500 million; 25% max; 5% max issuer; 10% max of the outstanding commercial paper of any single issuer; 270 days max maturity Complies Mutual Fund & Money Market Mutual Fund Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% max in Mutual Funds; 10% max per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the 10% stipulation Complies Local Agency Investment Fund (LAIF)No more than the statutory maximum may be invested in LAIF; Not used by investment adviser; Investment of OCSD funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to the policy Complies Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP) 15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP would be subject to investigation and due diligence prior to investing and on continual basis to a level of review pursuant to the policy Complies Repurchase Agreements 20% max; 102% collateralization Complies Reverse Repurchase Agreements 5% max, 90 days max maturity Complies Prohibited Mortgage Derivatives, which include interest-only payments (IOs) and principal-only payments (POs); Inverse floaters, and RE-REMICS (Real Estate Mortgage Investment Conduits) Complies Securities Downgrade If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported quarterly to the OCSD General Manager, the Administration Committee and Board of Directors Complies Avg Duration Not to exceed 60 months - (80% to 120% of the benchmark)Complies Max Per Holding 5% max of the total debt outstanding of any issuer per individual holding Complies Max Per Issuer 5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Market Mutual Funds Complies Maximum Maturity 5 years max maturity Complies* Orange County Sanitation District Long Term Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy *The portfolio has nineteen (19) securities with maturities greater than 5 years including four (4) CMOs and sixteen (15) MBS. All securities were inherited from the previous manager and complied at time of purchase. Category Standard Comment U.S. Treasuries 10% minimum; 1 year max maturity Complies Federal Agencies 20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 1 year max maturity; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government , a federal agency, or a US Government-sponsored enterprise Complies Supranational Obligations "AA" rated or better by a NRSRO; 30% max; 1 year max maturity; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-American Development Bank ("IADB") Complies Municipal Securities "A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% max; 5% max issuer; 1 year max maturity Complies Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 1 year max maturity; Issued by corporations organized and operating within the U.S. or issued by depository institutions licensed by the U.S. or any state and operating within the U.S. with AUM >$500 million Complies Non- Agency Asset-Backed Securities, Mortgage-Backed Securities, CMOs "AA" rating category or better by a NRSRO; 20% max (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 1 year max maturity; Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond Complies Negotiable Certificates of Deposit (NCD)"A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved by the Board of Directors; 30% max; 5% max issuer; 1 year max maturity; Negotiable certificates of deposit issued by a nationally or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code Complies Certificates of Deposit 5% max issuer; 1 year max maturity; Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code and having a net operating profit in the two most recently completed fiscal years; Collateral must comply with California Government Code Complies Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for purchase by the Federal Reserve System Complies Commercial Paper A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and operating in the U.S. with assets > $500 million; 25% max; 5% max issuer; 10% max of the outstanding commercial paper of any single issuer; 270 days max maturity Complies Mutual Fund & Money Market Mutual Fund Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% max in Mutual Funds; 10% max per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the 10% stipulation Complies Local Agency Investment Fund (LAIF)No more than the statutory maximum may be invested in LAIF; Not used by investment adviser; Investment of OCSD funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to the policy Complies Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP) 15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP would be subject to investigation and due diligence prior to investing and on continual basis to a level of review pursuant to the policy Complies Repurchase Agreements 20% max; 102% collateralization Complies Reverse Repurchase Agreements 5% max, 90 days max maturity Complies Prohibited Mortgage Derivatives, which include interest-only payments (IOs) and principal-only payments (POs); Inverse floaters, and RE-REMICS (Real Estate Mortgage Investment Conduits) Complies Securities Downgrade If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported quarterly to the OCSD General Manager, the Administration Committee and Board of Directors Complies Avg Duration Not to exceed 180 days Complies Max Per Holding 5% max of the total debt outstanding of any issuer per individual holding Complies Max Per Issuer 5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Market Mutual Funds Complies Maximum Maturity 1 year max maturity Complies Orange County Sanitation District Liquid Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy ,.,,4lCHANDLER '-'• ASSET MANAGEMENT 8 Category Standard Comment Treasury Issues 5 years maximum maturity Complies Supranational "AA" or better by 1 of 3 NRSROs; 30% maximum; 5% max; 5 years maturity; Includes only: IADB, IBRD, and IFC per CGC Complies U.S. Agencies 20% max issuer; 5 years maximum maturity Complies U.S. Corporate (MTNs)"A" or better long term rating by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity Complies* Municipal Securities "A" or higher by 1 of 3 NRSROS; 10% maximum; 5% max issuer; 5 years maximum maturity Complies Asset Backed/ CMOs/ Mortgage-backed "AA" or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; 20% maximum; 5% max issuer (excluding MBS/govt agency); 5 years max maturity Complies Negotiable CDs "A" or better on its long term debt by 1 of 3 NRSROs ; "A1/P1" or highest short term ratings by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity Complies CDs/ TDS 5% max issuer; 5 years max maturity Complies Banker’s Acceptances A-1, or equivalent highest short term rating by 1 of 3 NRSROS; 40% maximum; 5% max issuer; 180 days max maturity Complies Commercial Paper A-1, or equivalent by 1 of 3 NRSROS; "A" or better by 1 of 3 NRSROs, if long term debt issued; 25% maximum; 5% max issuer; 270 days max maturity Complies Money Market Fund Highest rating by 2 of 3 NRSROs; 20% maximum; 10% max issuer Complies Repurchase Agreements 102% collateralization Complies Reverse Repurchase Agreements 5% maximum, 90 days max maturity Complies LAIF Not used by investment adviser Complies Avg Duration Not to exceed 60 months - (80% to 120% of the benchmark)Complies Maximum Maturity 5 years maximum maturity Complies OCSD Lehman Exposure Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy * Account holds $2 million face value (cusip 525ESC0Y6) and $600,000 face value (cusip 525ESC1B7) of defaulted Lehman Bros Holdings that were purchased by the previous manager. Complied at time of purchase. ,.,,4lCHANDLER '-'• ASSET MANAGEMENT 9 Defaulted Bonds ,.,,4lCHANDLER '-'• ASSET MANAGEMENT oc SAN Lehman Exposure -Account #10284 CUSIP Sf!ocurity D@scription Par Valu@/Units Purchase Date Cost Value Mkt Price Market Value % of Port. Moodv/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int Gain/Loss Fitch Duration Common Stock SLHOPNTA4 Lehman Brothers, Inc Open Position long Exposure 60,641.49 11/21/2014 57,842.64 0.42 25,621.03 64.18% rm/NR 0.00 0.00()'6 Dee 12/31/2021 0.00% 57,842.64 0.00% 0.00 (32,221.61) NR 0.00 57,842.64 25,621.03 64.18% NR/ NR 0.00 TOTAL Common Stock 60,641.49 0.00% 57,842.64 0.00% 0.00 (32,221.61) NR 0.00 Corporate 525E5CIB7 Lehman Brothers Note~Oefaulted 600,000.00 09/19/2008 316,428.27 0.55 3,300.00 8.27% fJR/NR 0,07 000()'6 Due 01/24/2022 000% 316,42827 000% 000 (313,128.17) NR 000 525E5COY6 Lehman Brothers Note Defaulted 2,000,000.00 OCJ/18/2008 1,019,380.10 0.55 11,000.00 27.559(, tm/NR 27.83 0.00()'6 Dee 10/22/20<9 0.00% 1,019,380.10 0.00% 0.00 (1,008,380.10) NR 0.00 1,535,808.37 14,500.00 55.82% NR/ NR 21.4? TOTA.l Corporate 2,600,000.00 0.00% 1,335,808.37 0.00% 0.00 (1,3Zl,508.37) NR o.oo 1,393,651.01 39,921.03 100.00% NR/ NR 7.67 TOTAL PORTFOLIO 2,660,641,49 0,00% 1,393,651.01 0,00% 0,00 (1,353,729,98) NR 0,00 TOTAL MARKET VALUE PLUS ACCRUALS 39,921.03 10 Ratings ,.,,4lCHANDLER '-'• ASSET MANAGEMENT 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 12/>l/21 09/30/21 Source: ~1--'llotina, 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 12/31/21 09/.>.0/} I Source: s&P Rarln~s AAA AAA Orange County Sanitation District Long Term December 31, 2021115. September 30, 2021 17.2% 14.4% AA ■ 1 }f.ll//071 62.7% 65.2% A 14.9% 15.2% <A ■q/.10/}0}1 Orange County Sanitation District Liquid December 31, 2021 vs. September 30, 2021 AA ■ ll/31/lOll -A <A ■ 9/]V(lVl l 1.2% 1.3% -NR NR 3.9% 3.9% AAA AA A <A NR 27.3% 17.0% 69.2% 7fi.7% 2.6% 4 7% 0.9% 0.0% 1.6% 11 HISTORICAL YIELD CURVE $- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 OC SAN Investment Program Quarter End Portfolio Value Liquid Operating Monies Long-Term Operating Monies 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% DECEMBER 2021 NOVEMBER 2021 DECEMBER 2020 ,.,,4lCHANDLER '-'• ASSET MANAGEMENT I I I ACCOUNT SUMMARY Beg. Values as of 11/30/21 End Values as of 12/31/21 Market Value 159,385,605 230,249,195 Accrued Interest 477,957 607,747 Total Market Value 159,863,562 230,856,942 Income Earned 9,710 11,684 Cont/WD 71,000,000 Par 159,016,822 230,073,529 Book Value 159,396,254 230,278,148 Cost Value 160,030,447 231,046,288 TOP ISSUERS Government of United States 85.6% First American Govt Obligation 3.5% Toyota Motor Corp 1.7% Nordea Bank ABP New York 1.3% Svenska Handelsbanken NY 1.3% Bank of Nova Scotia Houston 1.3% Caterpillar Inc 0.9% Morgan Stanley 0.9% Total 96.5% PORTFOLIO CHARACTERISTICS Average Modified Duration 0.27 Average Coupon 0.80% Average Purchase YTM 0.11% Average Market YTM 0.18% Average S&P/Moody Rating AA+/Aaa Average Final Maturity 0.27 yrs Average Life 0.20 yrs CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION Portfolio Summary As of December 31, 2021 Orange County Sanitation District Liquid Account #10282 PERFORMANCE REVIEW Annualized TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS 11/30/2014 Orange County Sanitation District Liquid 0.00% 0.00% 0.08% 0.08% 0.47% 1.12% 1.23% N/A 0.97% ICE BofA 3-Month US Treasury Bill Index 0.01% 0.01% 0.05% 0.05% 0.36% 0.99% 1.14% N/A 0.86% Execution Time: 1/4/2022 1:47:10 PMChandler Asset Management - CONFIDENTIAL Page 1 US Trea1ury NogCD 4.8% Co,porato 1 3.5% MoneyMkt Fdl 3.5% Comm Pape, 1 2.6% 50% 85.6% 48.2% 0 • .25 .25 • .5 .5 • 1 1 · 1.5 1.5 • 2 2 • 2.5 2.5 · 3 Maturity (Yrs) 3+ AA (69.2%) BBB (0.9%) A(2.6%) AAA {27.3%) ACCOUNT SUMMARY Beg. Values as of 11/30/21 End Values as of 12/31/21 Market Value 690,795,813 739,934,202 Accrued Interest 2,496,794 2,291,576 Total Market Value 693,292,606 742,225,778 Income Earned 803,775 826,702 Cont/WD 50,097,656 Par 683,178,204 734,404,033 Book Value 684,698,523 735,828,098 Cost Value 684,861,877 736,026,784 TOP ISSUERS Government of United States 34.9% Federal National Mortgage Assoc 9.1% Federal Home Loan Bank 6.2% Federal Home Loan Mortgage Corp 5.5% Inter-American Dev Bank 5.2% Intl Bank Recon and Development 4.2% First American Govt Obligation 2.0% Federal Farm Credit Bank 1.9% Total 68.9% PORTFOLIO CHARACTERISTICS Average Modified Duration 2.37 Average Coupon 1.44% Average Purchase YTM 1.38% Average Market YTM 0.82% Average S&P/Moody Rating AA+/Aa1 Average Final Maturity 2.58 yrs Average Life 2.42 yrs CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION Portfolio Summary As of December 31, 2021 Orange County Sanitation District Long Term Account #10268 PERFORMANCE REVIEW Annualized TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS 11/30/2014 Orange County Sanitation District Long Term -0.17% -0.63% -0.92% -0.92% 1.70% 2.67% 2.14% N/A 1.80% ICE BofA 1-5 Yr AAA-A US Corp & Govt Index -0.24% -0.69% -1.00% -1.00% 1.68% 2.65% 2.09% N/A 1.76% ICE BofA 1-5 Yr US Corp & Govt Index -0.21% -0.69% -0.87% -0.87% 1.85% 2.92% 2.28% N/A 1.93% Execution Time: 1/4/2022 1:45:11 PMChandler Asset Management - CONFIDENTIAL Page 1 us Treasurv Corporate Agency Supra,-9.3% ABS-6.0% NesCD 2.4% MoneyMktFdl 2.0% CMOI 0.8% MB5 0.1% 34.9% 30% 0 • .25 .25 • .5 .5 • 1 25.4% 1·2 2 • 3 Maturity (Yrs) 0.2% 4 • 5 5+ AA (62.7%) AAA(l7.2%) B(0.0%) BBB (1.2%) NR (3.9%) Par Value Book Value Market Value Rate Yield Balance December 1, 2021 $63,766,841 $63,766,841 $63,766,841 0.21 0.21 Deposits: 12/23/2021 13,900,000 13,900,000 13,900,000 0.21 0.21 Total Deposits 13,900,000 13,900,000 13,900,000 0.21 0.21 Quarterly Interest Distribution - - - 0.21 0.21 Withdrawals: 12/1/2021 (2,600,000) (2,600,000) (2,600,000) 0.21 0.21 12/8/2021 (4,300,000) (4,300,000) (4,300,000) 0.21 0.21 12/14/2021 (2,700,000) (2,700,000) (2,700,000) 0.21 0.21 12/15/2021 (2,800,000) (2,800,000) (2,800,000) 0.21 0.21 Total Withdrawals (12,400,000) (12,400,000) (12,400,000) 0.21 0.21 Balance December 31, 2021 $65,266,841 $65,266,841 $65,266,841 0.21 0.21 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund December 31, 2021 U.S. Bank Asset Summary - Liquid As of 12/31/2021 Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss Cash Equivalents COMMERCIAL PAPER 6,000,000.0000 5,993,774.45 5,999,740.00 2.61 5,965.55 FIRST AMERICAN SHORT TERM FDS 8,073,528.5000 8,073,528.50 8,073,528.50 3.51 - U. S. GOVERNMENT 45,000,000.0000 44,971,117.81 44,977,390.00 19.53 6,272.19 Cash Equivalents Total 59,073,528.5000 59,038,420.76 59,050,658.50 25.65 12,237.74 Fixed Income CONSUMER DISCRETIONARY 2,000,000.0000 2,032,780.00 2,011,480.00 0.87 (21,300.00) FINANCE 4,000,000.0000 4,096,680.00 4,037,560.00 1.75 (59,120.00) FIXED INCOME FUNDS OTHER 3,000,000.0000 3,000,300.89 3,000,960.00 1.30 659.11 INDUSTRIAL 2,000,000.0000 2,043,700.00 2,007,360.00 0.87 (36,340.00) SHORT TERM FUNDS 8,000,000.0000 8,001,280.87 8,000,380.00 3.47 (900.87) U. S. GOVERNMENT 152,000,000.0000 152,833,125.01 152,145,520.00 66.08 (687,605.01) Fixed Income Total 171,000,000.0000 172,007,866.77 171,203,260.00 74.35 (804,606.77) Grand Total 230,073,528.5000 231,046,287.53 230,253,918.50 100.00 (792,369.03) 1 of 1 t--------------1 -1 ----1--------1----1----- U.S. Bank Asset Summary - Long-Term As of 12/31/2021 Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss Cash Equivalents FIRST AMERICAN SHORT TERM FDS 14,559,938.2000 14,559,938.20 14,559,938.20 1.97 - U. S. GOVERNMENT 10,000,000.0000 9,996,363.89 9,997,700.00 1.35 1,336.11 Cash Equivalents Total 24,559,938.2000 24,556,302.09 24,557,638.20 3.32 1,336.11 Fixed Income CONSUMER DISCRETIONARY 14,554,000.0000 14,656,686.38 14,687,565.06 1.99 30,878.68 CONSUMER STAPLES 6,955,000.0000 6,950,042.65 7,079,074.55 0.96 129,031.90 ENERGY 3,500,000.0000 3,441,095.00 3,603,670.00 0.49 162,575.00 FINANCE 100,669,000.0000 100,109,562.66 99,253,110.01 13.42 (856,452.65) FIXED INCOME FUNDS OTHER 7,000,000.0000 7,000,702.07 7,002,240.00 0.95 1,537.93 FOREIGN FIXED INCOME 14,500,000.0000 14,676,215.00 15,037,455.00 2.03 361,240.00 HEALTH CARE 3,755,000.0000 3,709,323.15 3,794,830.90 0.51 85,507.75 INDUSTRIAL 1,250,000.0000 1,250,237.50 1,311,662.50 0.18 61,425.00 INFORMATION TECHNOLOGY 17,712,000.0000 18,359,669.56 18,581,399.34 2.51 221,729.78 MTG RELATED SECURITY 50,909,404.5500 51,336,101.11 51,015,067.25 6.90 (321,033.86) PRIVATE PLACEMENTS 3,745,000.0000 3,741,554.60 3,663,883.30 0.50 (77,671.30) SHORT TERM FUNDS 11,000,000.0000 11,000,302.19 10,992,300.00 1.49 (8,002.19) SUPRANATIONAL 69,940,000.0000 69,585,857.85 69,069,885.10 9.34 (515,972.75) U. S. GOVERNMENT 235,253,474.6500 233,936,441.25 235,674,312.96 31.86 1,737,871.71 U.S. GOVERNMENT TIPS 12,111,216.0000 11,966,496.09 12,909,829.58 1.75 943,333.49 US AGY - LONG TERM ISSUES 159,590,000.0000 161,136,353.75 161,548,987.70 21.84 412,633.95 Fixed Income Total 712,444,095.2000 712,856,640.81 715,225,273.25 96.68 2,368,632.44 Grand Total 737,004,033.4000 737,412,942.90 739,782,911.45 100.00 2,369,968.55 1 of 1 n t--- t t The Bank of New York Mellon may utilize subsidiaries and affiliates to provide services and certain products to the Account. Subsidiaries and affiliates may be compensated for their services and products. The value of securities set forth on this Account Statement are determined by The Bank of New York Mellon for Corporate Trust on the basis of market prices and information obtained by The Bank of New York Mellon from unaffiliated third parties (including independent pricing vendors) ("third party pricing services"). The Bank of New York Mellon has not verified such market values or information and makes no assurances as to the accuracy or correctness of such market values or information or that the market values set forth on this Account Statement reflect the value of the securities that can be realized upon the sale of such securities. In addition, the market valuesfor securities set forth in this Account Statement may differ from the market prices and information for the same securities used by other business units of The Bank of New York Mellon or its subsidiaries or affiliates based upon market prices and information received from other third party pricing services utilized by such other business units. Corporate Trust does not compare its market values with those used by, or reconcile different market valuesused by, other business units of The Bank of New York Mellon or its subsidiaries or its affiliates. The Bank of New York Mellon shall not be liable for any loss, damage or expense incurred as a result of or arising from or related to the market values or information provided by third party pricing services or the differences in market prices or information provided by other third party pricing services. No Transactions This Period Accrued Estimated Market Shares/Par Value Asset Description Market Price Market Value Cost Average Cost Income Income Yield Realized Transaction Date Transaction Description Income Principal Cost Gains/Losses Statement Period 12/01/2021 Through 12/31/2021 Statement of Assets Held by Asset Classification Statement of Transactions by Transaction Date Account 300282 Base Currency = USDOCSD LIBERTY MUTUAL 500,000.000 UNITED STATES TREASURY BILL 99.98800 499,940.00 499,762.39 99.95248 0.00 0.00 0.00%CUSIP: 912796F38 MATURITY DATE: 03/24/2022RATE: 0.000% CASH BALANCE 941.20 941.20 0.00000 0.00 0.00 0.00% Total Market Value Plus Total Accrued Income 500,881.20 Cumulative realized capital gain and loss position from 12/31/2020 for securities held in principal of account: Short Term: 630.68 * Long Term: 0.00 * * The above gain and loss position does not include transactions where tax cost information is incomplete or unavailable. CASH AND SHORT TERM Total CASH AND SHORT TERM 500,881.20 500,703.59 0.00 0.00 0.00% ACCOUNT TOTALS 500,881.20 500,703.59 0.00 0.00 0.00% e 1 3 4 8 5 2 n 1 1 8 7 0 3 a 0 1 t D O M i W I s 7 6 7 , 5 3 5 ~. ~ BNY MELLON U.S. Bank Investment Listing - Yield As of 12/31/2021 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 0.0200% 8,073,528.5000 1.00 8,073,528.50 8,073,528.50 Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 0.0200% 14,559,938.2000 1.00 14,559,938.20 14,559,938.20 Cash Equivalents 62479MAM5 MUFG BK LTD N Y BRH C P 1/21/22 0.0000% 2,000,000.0000 100.00 1,997,907.78 1,999,940.00 Cash Equivalents 89233HAU8 TOYOTA MTR CR CORP DISC C P 1/28/22 0.0000% 4,000,000.0000 100.00 3,995,866.67 3,999,800.00 Cash Equivalents 912796D30 U S TREASURY BILL 2/24/22 0.0175% 12,000,000.0000 N/A N/A 100.00 11,997,256.50 11,999,520.00 Cash Equivalents 912796U23 U S TREASURY BILL 4/26/22 0.0638% 10,000,000.0000 N/A N/A 99.98 9,996,463.06 9,997,700.00 Cash Equivalents 912796U23 U S TREASURY BILL 4/26/22 0.0638% 10,000,000.0000 N/A N/A 99.98 9,996,363.89 9,997,700.00 Cash Equivalents 912796R43 U S TREASURY BILL 6/23/22 0.1626% 10,000,000.0000 N/A N/A 99.92 9,990,904.17 9,992,000.00 Cash Equivalents 912796R50 U S TREASURY BILL 6/30/22 0.1827% 13,000,000.0000 N/A N/A 99.91 12,986,494.08 12,988,170.00 Fixed Income 00440EAS6 ACE INA HOLDING 3.150% 3/15/25 2.9850% 2,000,000.0000 A3 A 105.53 2,203,740.00 2,110,580.00 Fixed Income 00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 2.8314% 4,169,000.0000 A3 A 101.54 4,232,453.17 4,233,160.91 Fixed Income 023135BW5 AMAZON COM INC 0.450% 5/12/24 0.4545% 5,490,000.0000 A1 AA 99.01 5,481,984.60 5,435,649.00 Fixed Income 02665WDF5 AMERICAN HONDA MTN 1.950% 5/20/22 1.9389% 2,000,000.0000 A3 A- 100.57 2,032,780.00 2,011,480.00 Fixed Income 02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 2.3301% 1,219,000.0000 A3 A- 103.00 1,213,843.63 1,255,557.81 Fixed Income 02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 3.3146% 845,000.0000 A3 A- 104.09 843,538.15 879,518.25 Fixed Income 02665WCQ2 AMERICAN HONDA MTN 3.625% 10/10/23 3.4579% 2,000,000.0000 A3 A- 104.83 1,998,320.00 2,096,640.00 Fixed Income 03215PFN4 AMRESCO 1.00712% 6/25/29 1.0206% 119,021.6400 N/A BBB 98.68 89,377.81 117,448.17 Fixed Income 037833AZ3 APPLE INC 2.500% 2/09/25 2.4024% 3,922,000.0000 AAA AA+ 104.06 4,154,496.16 4,081,311.64 Fixed Income 037833CU2 APPLE INC 2.850% 5/11/24 2.7364% 3,000,000.0000 AAA AA+ 104.15 3,017,760.00 3,124,590.00 Fixed Income 06051GJD2 BANK AMER CORP MTN 1.319% 6/19/26 1.3332% 2,250,000.0000 A2 A- 98.94 2,254,432.50 2,226,105.00 Fixed Income 06417MQL2 BANK NOVA C D 0.200% 6/23/22 0.2001% 5,000,000.0000 99.95 4,999,999.61 4,997,400.00 Fixed Income 06417MNK7 BANK NOVA C D 0.220% 4/08/22 0.2200% 3,000,000.0000 100.00 3,000,000.00 2,999,940.00 Fixed Income 06051GHF9 BANK OF AMERICA 3.550% 3/05/24 3.4475% 6,675,000.0000 A2 A- 102.97 6,770,625.75 6,873,381.00 Fixed Income 06051GHY8 BANK OF AMERICAN MTN 2.015% 2/13/26 1.9894% 2,500,000.0000 A2 A- 101.29 2,583,450.00 2,532,175.00 Fixed Income 06368FAC3 BANK OF MONTREAL MTN 1.250% 9/15/26 1.2773% 3,000,000.0000 A2 A- 97.86 2,994,647.40 2,935,860.00 Fixed Income 06367WB85 BANK OF MONTREAL MTN 1.850% 5/01/25 1.8231% 7,000,000.0000 A2 A- 101.48 7,226,940.00 7,103,390.00 Fixed Income 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 2.5990% 2,500,000.0000 WR A 100.04 2,504,475.00 2,500,950.00 Fixed Income 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 2.8863% 2,500,000.0000 A1 A 102.21 2,489,555.00 2,555,175.00 Fixed Income 05531FBG7 BB T CORPORATION MTN 3.050% 6/20/22 3.0203% 2,000,000.0000 A3 A- 100.98 2,049,420.00 2,019,640.00 Fixed Income 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 2.6933% 2,500,000.0000 AA2 AA 102.10 2,440,950.00 2,552,600.00 Fixed Income 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 2.9721% 4,000,000.0000 AA2 AA 100.94 4,131,120.00 4,037,600.00 Fixed Income 09247XAL5 BLACKROCK INC 3.500% 3/18/24 3.3119% 1,000,000.0000 AA3 AA- 105.68 1,036,330.00 1,056,780.00 Fixed Income 09690AAC7 BMW VEHICLE LEASE 0.330% 12/26/24 0.3325% 2,070,000.0000 AAA N/A 99.24 2,069,786.38 2,054,164.50 Fixed Income 14913Q2T5 CATERPILLAR FINL MTN 2.950% 2/26/22 2.9392% 2,000,000.0000 A2 A 100.37 2,043,700.00 2,007,360.00 Fixed Income 808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 2.6019% 6,750,000.0000 A2 A 101.85 6,729,480.00 6,874,807.50 Fixed Income 166764AH3 CHEVRON CORP 3.191% 6/24/23 3.0992% 3,500,000.0000 AA2 AA- 102.96 3,441,095.00 3,603,670.00 Fixed Income 00440EAP2 CHUBB INA HLDGS INC 2.700% 3/13/23 2.6362% 2,000,000.0000 A3 A 102.42 1,937,000.00 2,048,440.00 Fixed Income 3133ELYR9 F F C B DEB 0.250% 5/06/22 0.2499% 8,850,000.0000 AAA AA+ 100.04 8,838,760.50 8,853,805.50 Fixed Income 3133EKWV4 F F C B DEB 1.850% 7/26/24 1.7976% 5,000,000.0000 AAA AA+ 102.92 5,048,280.00 5,145,800.00 Fixed Income 3130A1XJ2 F H L B 2.875% 6/14/24 2.7420% 11,110,000.0000 AAA AA+ 104.85 11,589,031.30 11,648,723.90 Fixed Income 3130A4CH3 F H L B DEB 2.375% 3/14/25 2.2795% 5,225,000.0000 AAA AA+ 104.19 5,526,848.25 5,443,823.00 1 of 5 U.S. Bank Investment Listing - Yield As of 12/31/2021 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 3130A2UW4 F H L B DEB 2.875% 9/13/24 2.7359% 2,500,000.0000 AAA AA+ 105.09 2,635,950.00 2,627,150.00 Fixed Income 313383QR5 F H L B DEB 3.250% 6/09/23 3.1296% 5,000,000.0000 AAA AA+ 103.85 5,083,350.00 5,192,350.00 Fixed Income 313383YJ4 F H L B DEB 3.375% 9/08/23 3.2279% 10,000,000.0000 AAA AA+ 104.56 10,211,831.00 10,455,800.00 Fixed Income 3130A0F70 F H L B DEB 3.375% 12/08/23 3.2125% 10,000,000.0000 AAA AA+ 105.06 10,269,043.75 10,505,800.00 Fixed Income 3137BFE98 F H L B GTD REMIC 3.171% 10/25/24 3.0168% 5,000,000.0000 N/A N/A 105.11 5,378,515.62 5,255,550.00 Fixed Income 3137EAEP0 F H L M C 1.500% 2/12/25 1.4786% 12,335,000.0000 AAA AA+ 101.44 12,510,182.05 12,513,117.40 Fixed Income 3137EAEN5 F H L M C 2.750% 6/19/23 2.6664% 10,000,000.0000 AAA AA+ 103.14 9,956,500.00 10,313,700.00 Fixed Income 3137EAEU9 F H L M C M T N 0.375% 7/21/25 0.3848% 5,030,000.0000 AAA AA+ 97.46 5,004,950.60 4,902,087.10 Fixed Income 3137EAEX3 F H L M C M T N 0.375% 9/23/25 0.3854% 7,660,000.0000 AAA AA+ 97.29 7,636,943.40 7,452,567.20 Fixed Income 31348SWZ3 F H L M C #786064 2.262% 1/01/28 2.2537% 1,319.7900 N/A N/A 100.37 1,287.65 1,324.67 Fixed Income 31394JY35 F H L M C MLTCL MT 9.50001% 9/25/43 8.3950% 460,244.1100 N/A N/A 113.16 521,226.45 520,826.04 Fixed Income 3133TCE95 F H L M C MLTCL MTG 3.787% 8/15/32 3.7704% 3,588.0500 N/A N/A 100.44 3,591.82 3,603.86 Fixed Income 3135G05G4 F N M A 0.250% 7/10/23 0.2514% 6,775,000.0000 AAA AA+ 99.46 6,760,433.75 6,738,076.25 Fixed Income 3135G05X7 F N M A 0.375% 8/25/25 0.3855% 7,945,000.0000 AAA AA+ 97.27 7,907,817.40 7,727,783.70 Fixed Income 3135G04Z3 F N M A 0.500% 6/17/25 0.5102% 9,905,000.0000 AAA AA+ 98.01 9,884,496.65 9,707,395.25 Fixed Income 3135G06G3 F N M A 0.500% 11/07/25 0.5125% 8,255,000.0000 AAA AA+ 97.57 8,225,447.10 8,054,238.40 Fixed Income 3135G0X24 F N M A 1.625% 1/07/25 1.5961% 10,000,000.0000 AAA AA+ 101.81 10,157,936.40 10,180,800.00 Fixed Income 3135G0V34 F N M A 2.500% 2/05/24 2.4145% 5,000,000.0000 AAA AA+ 103.54 4,980,850.00 5,177,050.00 Fixed Income 31371NUC7 F N M A #257179 4.500% 4/01/28 4.2051% 6,617.6700 N/A N/A 107.01 6,998.85 7,081.70 Fixed Income 31376KT22 F N M A #357969 5.000% 9/01/35 4.4193% 57,250.5400 N/A N/A 113.14 61,544.32 64,772.69 Fixed Income 31403DJZ3 F N M A #745580 5.000% 6/01/36 4.4277% 53,293.9000 N/A N/A 112.93 57,290.94 60,182.14 Fixed Income 31403GXF4 F N M A #748678 5.000% 10/01/33 4.5460% 787.8400 N/A N/A 109.99 846.92 866.52 Fixed Income 31406PQY8 F N M A #815971 5.000% 3/01/35 4.4250% 78,209.7400 N/A N/A 112.99 84,075.48 88,372.31 Fixed Income 31406XWT5 F N M A #823358 1.977% 2/01/35 1.8983% 55,226.4000 N/A N/A 104.15 54,794.93 57,516.64 Fixed Income 31407BXH7 F N M A #826080 5.000% 7/01/35 4.4246% 10,711.7200 N/A N/A 113.00 11,515.08 12,104.67 Fixed Income 31410F4V4 F N M A #888336 5.000% 7/01/36 4.4264% 89,715.5500 N/A N/A 112.96 96,444.23 101,340.89 Fixed Income 3138EG6F6 F N M A #AL0869 4.500% 6/01/29 4.2042% 4,907.3200 N/A N/A 107.04 5,189.98 5,252.60 Fixed Income 31417YAY3 F N M A #MA0022 4.500% 4/01/29 4.2029% 8,299.6800 N/A N/A 107.07 8,777.72 8,886.47 Fixed Income 3135G03U5 F N M A DEB 0.625% 4/22/25 0.6338% 14,000,000.0000 AAA AA+ 98.62 13,996,711.60 13,806,520.00 Fixed Income 3135G0T94 F N M A DEB 2.375% 1/19/23 2.3273% 5,000,000.0000 AAA AA+ 102.05 4,910,990.00 5,102,400.00 Fixed Income 31397QRE0 F N M A GTD REMIC 2.472% 2/25/41 0.7697% 93,868.6800 N/A N/A 101.58 93,839.37 95,348.05 Fixed Income 36225CAZ9 G N M A I I #080023 2.125% 12/20/26 2.0565% 8,993.7500 N/A N/A 103.33 9,142.33 9,293.42 Fixed Income 36225CC20 G N M A I I #080088 2.000% 6/20/27 1.9770% 6,353.9400 N/A N/A 101.17 6,492.94 6,427.96 Fixed Income 36225CNM4 G N M A I I #080395 1.875% 4/20/30 1.8158% 3,474.6500 N/A N/A 103.26 3,443.15 3,587.96 Fixed Income 36225CN28 G N M A I I #080408 1.875% 5/20/30 1.8149% 29,387.1400 N/A N/A 103.31 29,088.67 30,359.85 Fixed Income 36225DCB8 G N M A I I #080965 1.625% 7/20/34 1.5679% 25,096.9700 N/A N/A 103.64 25,081.29 26,010.75 Fixed Income 362554AC1 GM FIN CONS AUTO 0.680% 9/16/26 0.6852% 1,705,000.0000 AAA AAA 99.25 1,704,956.52 1,692,127.25 Fixed Income 43813GAC5 HONDA AUTO 0.270% 4/21/25 0.2715% 1,605,000.0000 AAA N/A 99.46 1,604,970.63 1,596,397.20 Fixed Income 43813KAC6 HONDA AUTO 0.370% 10/18/24 0.3710% 3,235,000.0000 N/A AAA 99.72 3,234,524.78 3,225,909.65 Fixed Income 43815GAC3 HONDA AUTO REC 0.880% 1/21/26 0.8821% 2,290,000.0000 AAA N/A 99.76 2,289,517.27 2,284,435.30 Fixed Income 438516CB0 HONEYWELL 1.350% 6/01/25 1.3446% 5,000,000.0000 A2 A 100.40 5,119,000.00 5,020,200.00 2 of 5 U.S. Bank Investment Listing - Yield As of 12/31/2021 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 44934KAC8 HTUNDAI AUTO REC TR 0.380% 1/15/26 0.3842%6,040,000.0000 N/A AAA 98.90 6,038,666.97 5,973,258.00 Fixed Income 44891VAC5 HYUNDAI AUTO LEASE 0.330% 6/17/24 0.3321% 4,155,000.0000 AAA AAA 99.37 4,154,376.75 4,128,906.60 Fixed Income 44933LAC7 HYUNDAI AUTO REC 0.380% 9/15/25 0.3829% 2,100,000.0000 N/A AAA 99.25 2,099,779.08 2,084,292.00 Fixed Income 44935FAD6 HYUNDAI AUTO REC TR 0.740% 5/15/26 0.7451%1,600,000.0000 N/A AAA 99.31 1,599,642.88 1,588,992.00 Fixed Income 458140BD1 INTEL CORP 2.875% 5/11/24 2.7615% 5,000,000.0000 A1 A+ 104.11 5,025,900.00 5,205,500.00 Fixed Income 4581X0DZ8 INTER AMER BK M T N 0.500% 9/23/24 0.5068% 10,775,000.0000 AAA AAA 98.65 10,767,026.50 10,629,968.50 Fixed Income 4581X0DN5 INTER AMER BK M T N 0.625% 7/15/25 0.6370% 5,050,000.0000 AAA AAA 98.11 5,071,967.50 4,954,504.50 Fixed Income 4581X0DV7 INTER AMER BK M T N 0.875% 4/20/26 0.8891% 13,370,000.0000 AAA AAA 98.41 13,308,765.40 13,157,283.30 Fixed Income 4581X0CZ9 INTER AMER DEV BK 1.750% 9/14/22 1.7336% 6,500,000.0000 AAA AAA 100.95 6,249,655.00 6,561,425.00 Fixed Income 4581X0CW6 INTER AMER DEV BK 2.125% 1/18/22 2.1214% 3,000,000.0000 WR N/A 100.17 2,996,310.00 3,005,070.00 Fixed Income 459058FY4 INTL BK 2.000% 1/26/22 1.9980% 10,000,000.0000 AAA N/A 100.10 10,006,350.00 10,010,100.00 Fixed Income 459058JL8 INTL BK M T N 0.500% 10/28/25 0.5133% 15,000,000.0000 AAA AAA 97.41 14,964,951.60 14,611,200.00 Fixed Income 459058JB0 INTL BK M T N 0.626% 4/22/25 0.6367% 6,245,000.0000 AAA AAA 98.32 6,220,831.85 6,140,333.80 Fixed Income 24422EUM9 JOHN DEERE MTN 3.650% 10/12/23 3.4784% 1,250,000.0000 A2 A 104.93 1,250,237.50 1,311,662.50 Fixed Income 47789QAC4 JOHN DEERE OWN 0.520% 3/16/26 0.5260% 2,820,000.0000 AAA N/A 98.86 2,819,748.46 2,787,767.40 Fixed Income 47788UAC6 JOHN DEERE OWNER 0.360% 9/15/25 0.3629% 2,300,000.0000 AAA N/A 99.19 2,299,557.94 2,281,370.00 Fixed Income 47787NAC3 JOHN DEERE OWNER 0.510% 11/15/24 0.5108% 1,480,000.0000 AAA N/A 99.85 1,479,774.45 1,477,735.60 Fixed Income 46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 2.6401% 5,000,000.0000 A2 A- 102.27 4,821,910.00 5,113,450.00 Fixed Income 46647PBH8 JPMORGAN CHASE CO 2.005% 3/13/26 1.9816% 3,500,000.0000 A2 A- 101.18 3,602,345.00 3,541,265.00 Fixed Income 46647PAU0 JPMORGAN CHASE CO 3.797% 7/23/24 3.6433% 2,500,000.0000 A2 A- 104.22 2,632,175.00 2,605,450.00 Fixed Income 525ESC0Y6 LEHMAN BRTH HLD ESC 0.0000% 2,000,000.0000 - 1,017,827.66 - Fixed Income 525ESCIB7 LEHMAN BRTH MTN ES 0.00001% 1/24/13 0.0018% 600,000.0000 N/A N/A 0.55 315,960.88 3,300.00 Fixed Income 58769KAD6 MERCEDES BENZ AUTO 0.400% 11/15/24 0.4030% 3,315,000.0000 N/A AAA 99.24 3,314,749.72 3,289,938.60 Fixed Income 58770FAC6 MERCEDES BENZ AUTO 1.840% 12/15/22 1.8351% 914,426.6500 AAA AAA 100.27 914,306.13 916,859.02 Fixed Income 58933YAF2 MERCK CO INC 2.800% 5/18/23 2.7200% 2,000,000.0000 A1 A+ 102.94 1,948,640.00 2,058,820.00 Fixed Income 58989V2D5 MET TOWER MTN 1.250% 9/14/26 1.2777% 3,745,000.0000 AA3 AA- 97.83 3,741,554.60 3,663,883.30 Fixed Income 61747YEA9 MORGAN STANLEY 0.790% 5/30/25 0.8005% 8,885,000.0000 A1 BBB+ 98.69 8,889,710.25 8,768,873.05 Fixed Income 61744YAH1 MORGAN STANLEY 2.750% 5/19/22 2.7256% 2,000,000.0000 A1 BBB+ 100.90 2,047,260.00 2,017,920.00 Fixed Income 65479JAD5 NISSAN AUTO 1.930% 7/15/24 1.9145% 2,724,922.1400 AAA AAA 100.81 2,724,778.26 2,746,966.76 Fixed Income 65479GAD1 NISSAN AUTO 3.060% 3/15/23 3.0537% 287,650.8000 AAA AAA 100.21 287,641.48 288,243.36 Fixed Income 65558UBJ0 NORDEA BK ABP C D 0.210% 5/16/22 0.2099% 3,000,000.0000 100.03 3,000,300.89 3,000,960.00 Fixed Income 65558UBJ0 NORDEA BK ABP C D 0.210% 5/16/22 0.2099% 7,000,000.0000 100.03 7,000,702.07 7,002,240.00 Fixed Income 69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 2.6204% 1,000,000.0000 WR A 100.18 974,940.00 1,001,770.00 Fixed Income 69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 3.3734% 5,000,000.0000 A2 A 103.75 4,993,318.05 5,187,600.00 Fixed Income 747525AF0 QUALCOMM INC 3.450% 5/20/25 3.2375% 5,790,000.0000 A2 A 106.56 6,161,513.40 6,169,997.70 Fixed Income 78015K7H1 ROYAL BANK OF MTN 1.150% 6/10/25 1.1600% 4,000,000.0000 A2 A 99.14 4,013,620.00 3,965,440.00 Fixed Income 78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 2.4682% 6,500,000.0000 A2 A 103.32 6,581,445.00 6,715,475.00 Fixed Income 78445JAA5 S L M A 1.65997% 4/25/23 1.6488% 9,510.5300 BAA3 B 100.68 9,471.93 9,575.11 Fixed Income 79466LAG9 SALESFORCE COM INC 0.625% 7/15/24 0.6309% 1,350,000.0000 A2 A+ 99.07 1,349,311.50 1,337,431.50 Fixed Income 808513BN4 SCHWAB CHARLES 0.750% 3/18/24 0.7534% 2,785,000.0000 A2 A 99.55 2,783,607.50 2,772,551.05 Fixed Income 86959RQE3 SVENSKA C D 0.230% 5/10/22 0.2300% 3,000,000.0000 100.01 3,001,280.93 3,000,360.00 3 of 5 U.S. Bank Investment Listing - Yield As of 12/31/2021 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 86959RTW0 SVENSKA C D 0.255% 10/14/22 0.2552% 6,000,000.0000 99.92 6,000,302.58 5,994,900.00 Fixed Income 89114W7M1 TORONTO C D 0.240% 4/28/22 0.2400% 2,000,000.0000 100.00 1,999,999.94 2,000,080.00 Fixed Income 89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 2.5548% 3,000,000.0000 A1 A 103.73 3,000,570.00 3,111,780.00 Fixed Income 89114QC48 TORONTO MTN 3.500% 7/19/23 3.3588% 5,000,000.0000 AA2 AA- 104.20 5,094,200.00 5,210,200.00 Fixed Income 89237VAB5 TOYOTA AUTO RECV 0.440% 10/15/24 0.4404% 2,960,000.0000 AAA AAA 99.92 2,959,772.08 2,957,632.00 Fixed Income 89239CAC3 TOYOTA LEASE OWNER 0.420% 10/21/24 0.4236% 3,185,000.0000 AAA N/A 99.15 3,184,957.00 3,157,927.50 Fixed Income 89236TJK2 TOYOTA MTR CR MTN 1.125% 6/18/26 1.1423% 7,285,000.0000 A1 A+ 98.48 7,281,794.60 7,174,559.40 Fixed Income 912828WU0 U S TREASURY I P S 0.125% 7/15/24 0.1173%12,111,216.0000 AAA N/A 106.59 11,966,496.09 12,909,829.58 Fixed Income 91282CBG5 U S TREASURY NT 0.125% 1/31/23 0.1254%10,000,000.0000 AAA N/A 99.66 9,998,046.88 9,965,600.00 Fixed Income 912828ZM5 U S TREASURY NT 0.125% 4/30/22 0.1250%25,000,000.0000 AAA N/A 100.00 25,014,746.10 25,000,750.00 Fixed Income 912828ZX1 U S TREASURY NT 0.125% 6/30/22 0.1250% 7,000,000.0000 AAA N/A 99.96 6,998,750.00 6,997,270.00 Fixed Income 91282CAC5 U S TREASURY NT 0.125% 7/31/22 0.1251%30,000,000.0000 AAA N/A 99.93 29,986,523.43 29,979,000.00 Fixed Income 91282CBA8 U S TREASURY NT 0.125% 12/15/23 0.1265% 6,500,000.0000 AAA N/A 98.85 6,491,367.19 6,425,380.00 Fixed Income 91282CAM3 U S TREASURY NT 0.250% 9/30/25 0.2582% 6,500,000.0000 AAA N/A 96.84 6,477,656.25 6,294,340.00 Fixed Income 91282CBH3 U S TREASURY NT 0.375% 1/31/26 0.3876%18,000,000.0000 AAA N/A 96.74 17,781,875.00 17,413,560.00 Fixed Income 912828ZL7 U S TREASURY NT 0.375% 4/30/25 0.3835%12,000,000.0000 AAA N/A 97.78 11,998,515.63 11,733,720.00 Fixed Income 91282CCX7 U S TREASURY NT 0.375% 9/15/24 0.3804%10,500,000.0000 AAA N/A 98.59 10,377,363.28 10,351,530.00 Fixed Income 91282CBC4 U S TREASURY NT 0.375% 12/31/25 0.3869%10,000,000.0000 AAA N/A 96.93 9,943,320.32 9,693,000.00 Fixed Income 91282CDR9 U S TREASURY NT 0.625% 12/31/23 0.6249% 7,500,000.0000 AAA N/A 100.02 7,500,292.97 7,501,500.00 Fixed Income 91282CBT7 U S TREASURY NT 0.750% 3/31/26 0.7645%10,000,000.0000 AAA N/A 98.10 9,943,359.37 9,810,200.00 Fixed Income 91282CCF6 U S TREASURY NT 0.750% 5/31/26 0.7657% 7,500,000.0000 AAA N/A 97.95 7,443,750.00 7,345,875.00 Fixed Income 91282CCW9 U S TREASURY NT 0.750% 8/31/26 0.7672% 8,000,000.0000 AAA N/A 97.76 7,874,375.01 7,820,960.00 Fixed Income 91282CDG3 U S TREASURY NT 1.125% 10/31/26 1.1325% 19,250,000.0000 N/A N/A 99.34 19,119,013.68 19,122,180.00 Fixed Income 912828Z60 U S TREASURY NT 1.375% 1/31/22 1.3736%40,000,000.0000 AAA N/A 100.10 40,226,757.82 40,040,000.00 Fixed Income 912828H86 U S TREASURY NT 1.500% 1/31/22 1.4984%27,500,000.0000 AAA N/A 100.11 27,691,210.94 27,530,250.00 Fixed Income 912828YH7 U S TREASURY NT 1.500% 9/30/24 1.4767%14,000,000.0000 AAA N/A 101.58 13,859,296.88 14,220,920.00 Fixed Income 912828R69 U S TREASURY NT 1.625% 5/31/23 1.6009% 5,000,000.0000 AAA N/A 101.51 4,757,226.56 5,075,400.00 Fixed Income 912828J43 U S TREASURY NT 1.750% 2/28/22 1.7454% 7,500,000.0000 AAA N/A 100.26 7,606,054.69 7,519,650.00 Fixed Income 912828L57 U S TREASURY NT 1.750% 9/30/22 1.7315% 6,500,000.0000 AAA N/A 101.07 6,513,710.94 6,569,290.00 Fixed Income 912828XX3 U S TREASURY NT 2.000% 6/30/24 1.9457% 5,000,000.0000 AAA N/A 102.79 5,028,710.94 5,139,650.00 Fixed Income 912828M80 U S TREASURY NT 2.000% 11/30/22 1.9714% 8,000,000.0000 AAA N/A 101.45 7,907,500.00 8,115,920.00 Fixed Income 912828W48 U S TREASURY NT 2.125% 2/29/24 2.0657%10,000,000.0000 AAA N/A 102.87 9,911,718.75 10,287,100.00 Fixed Income 912828U57 U S TREASURY NT 2.125% 11/30/23 2.0695%15,000,000.0000 AAA N/A 102.68 14,723,632.81 15,402,600.00 Fixed Income 9128283J7 U S TREASURY NT 2.125% 11/30/24 2.0564%16,500,000.0000 AAA N/A 103.34 16,783,886.72 17,050,440.00 Fixed Income 912828N30 U S TREASURY NT 2.125% 12/31/22 2.0903% 5,000,000.0000 AAA N/A 101.66 4,926,562.50 5,083,000.00 Fixed Income 912828V80 U S TREASURY NT 2.250% 1/31/24 2.1830% 7,500,000.0000 AAA 103.07 7,491,503.91 7,730,250.00 Fixed Income 9128286M7 U S TREASURY NT 2.250% 4/15/22 2.2366% 7,500,000.0000 AAA N/A 100.60 7,657,324.22 7,544,775.00 Fixed Income 9128286H8 U S TREASURY NT 2.375% 3/15/22 2.3643% 7,500,000.0000 AAA N/A 100.45 7,651,757.81 7,533,825.00 Fixed Income 9128284D9 U S TREASURY NT 2.500% 3/31/23 2.4399%10,000,000.0000 AAA N/A 102.47 9,887,265.63 10,246,500.00 Fixed Income 912828WJ5 U S TREASURY NT 2.500% 5/15/24 2.4066% 7,000,000.0000 AAA N/A 103.88 7,193,046.88 7,271,810.00 Fixed Income 91324PEC2 UNITEDHEALTH 1.150% 5/15/26 1.1626% 1,755,000.0000 A3 A+ 98.92 1,760,683.15 1,736,010.90 4 of 5 U.S. Bank Investment Listing - Yield As of 12/31/2021 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 90331HPL1 US BANK NA MTN 2.050% 1/21/25 2.0044% 7,270,000.0000 A1 AA- 102.27 7,254,514.90 7,435,247.10 Fixed Income 90331HNL3 US BANK NA MTN 2.850% 1/23/23 2.7906% 2,000,000.0000 A1 AA- 102.13 1,992,640.00 2,042,600.00 Fixed Income 931142ER0 WALMART INC 1.050% 9/17/26 1.0619% 1,725,000.0000 AA2 AA 98.88 1,721,739.75 1,705,628.25 Fixed Income 931142EK5 WALMART INC 3.400% 6/26/23 3.2686% 3,880,000.0000 AA2 AA 104.02 3,878,991.40 4,036,014.80 Total Consolidated 970,036,829.95 5 of 5 U.S. Bank Asset Detail - Consolidated As of 12/31/2021 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 1.00 8,073,528.5000 8,073,528.50 8,073,528.50 0.83 - 31846V567 FIRST AM GOVT OB FD CL Z 1.00 14,559,938.2000 14,559,938.20 14,559,938.20 1.50 - 62479MAM5 MUFG BK LTD N Y BRH C P 1/21/22 100.00 2,000,000.0000 1,997,907.78 1,999,940.00 0.21 2,032.22 89233HAU8 TOYOTA MTR CR CORP DISC C P 1/28/22 100.00 4,000,000.0000 3,995,866.67 3,999,800.00 0.41 3,933.33 912796D30 U S TREASURY BILL 2/24/22 100.00 12,000,000.0000 11,997,256.50 11,999,520.00 1.24 2,263.50 912796U23 U S TREASURY BILL 4/26/22 99.98 10,000,000.0000 9,996,463.06 9,997,700.00 1.03 1,236.94 912796U23 U S TREASURY BILL 4/26/22 99.98 10,000,000.0000 9,996,363.89 9,997,700.00 1.03 1,336.11 912796R43 U S TREASURY BILL 6/23/22 99.92 10,000,000.0000 9,990,904.17 9,992,000.00 1.03 1,095.83 912796R50 U S TREASURY BILL 6/30/22 99.91 13,000,000.0000 12,986,494.08 12,988,170.00 1.34 1,675.92 Cash Equivalents Total 83,633,466.7000 83,594,722.85 83,608,296.70 8.62 13,573.85 Fixed Income 00440EAS6 ACE INA HOLDING 3.150% 3/15/25 105.53 2,000,000.0000 2,203,740.00 2,110,580.00 0.22 (93,160.00) 00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 101.54 4,169,000.0000 4,232,453.17 4,233,160.91 0.44 707.74 023135BW5 AMAZON COM INC 0.450% 5/12/24 99.01 5,490,000.0000 5,481,984.60 5,435,649.00 0.56 (46,335.60) 02665WDF5 AMERICAN HONDA MTN 1.950% 5/20/22 100.57 2,000,000.0000 2,032,780.00 2,011,480.00 0.21 (21,300.00) 02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 103.00 1,219,000.0000 1,213,843.63 1,255,557.81 0.13 41,714.18 02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 104.09 845,000.0000 843,538.15 879,518.25 0.09 35,980.10 02665WCQ2 AMERICAN HONDA MTN 3.625% 10/10/23 104.83 2,000,000.0000 1,998,320.00 2,096,640.00 0.22 98,320.00 03215PFN4 AMRESCO 1.00712% 6/25/29 98.68 119,021.6400 89,377.81 117,448.17 0.01 28,070.36 037833AZ3 APPLE INC 2.500% 2/09/25 104.06 3,922,000.0000 4,154,496.16 4,081,311.64 0.42 (73,184.52) 037833CU2 APPLE INC 2.850% 5/11/24 104.15 3,000,000.0000 3,017,760.00 3,124,590.00 0.32 106,830.00 06051GJD2 BANK AMER CORP MTN 1.319% 6/19/26 98.94 2,250,000.0000 2,254,432.50 2,226,105.00 0.23 (28,327.50) 06417MQL2 BANK NOVA C D 0.200% 6/23/22 99.95 5,000,000.0000 4,999,999.61 4,997,400.00 0.52 (2,599.61) 06417MNK7 BANK NOVA C D 0.220% 4/08/22 100.00 3,000,000.0000 3,000,000.00 2,999,940.00 0.31 (60.00) 06051GHF9 BANK OF AMERICA 3.550% 3/05/24 102.97 6,675,000.0000 6,770,625.75 6,873,381.00 0.71 102,755.25 06051GHY8 BANK OF AMERICAN MTN 2.015% 2/13/26 101.29 2,500,000.0000 2,583,450.00 2,532,175.00 0.26 (51,275.00) 06368FAC3 BANK OF MONTREAL MTN 1.250% 9/15/26 97.86 3,000,000.0000 2,994,647.40 2,935,860.00 0.30 (58,787.40) 06367WB85 BANK OF MONTREAL MTN 1.850% 5/01/25 101.48 7,000,000.0000 7,226,940.00 7,103,390.00 0.73 (123,550.00) 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 100.04 2,500,000.0000 2,504,475.00 2,500,950.00 0.26 (3,525.00) 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 102.21 2,500,000.0000 2,489,555.00 2,555,175.00 0.26 65,620.00 05531FBG7 BB T CORPORATION MTN 3.050% 6/20/22 100.98 2,000,000.0000 2,049,420.00 2,019,640.00 0.21 (29,780.00) 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 102.10 2,500,000.0000 2,440,950.00 2,552,600.00 0.26 111,650.00 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 100.94 4,000,000.0000 4,131,120.00 4,037,600.00 0.42 (93,520.00) 09247XAL5 BLACKROCK INC 3.500% 3/18/24 105.68 1,000,000.0000 1,036,330.00 1,056,780.00 0.11 20,450.00 09690AAC7 BMW VEHICLE LEASE 0.330% 12/26/24 99.24 2,070,000.0000 2,069,786.38 2,054,164.50 0.21 (15,621.88) 14913Q2T5 CATERPILLAR FINL MTN 2.950% 2/26/22 100.37 2,000,000.0000 2,043,700.00 2,007,360.00 0.21 (36,340.00) 808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 101.85 6,750,000.0000 6,729,480.00 6,874,807.50 0.71 145,327.50 166764AH3 CHEVRON CORP 3.191% 6/24/23 102.96 3,500,000.0000 3,441,095.00 3,603,670.00 0.37 162,575.00 00440EAP2 CHUBB INA HLDGS INC 2.700% 3/13/23 102.42 2,000,000.0000 1,937,000.00 2,048,440.00 0.21 111,440.00 3133ELYR9 F F C B DEB 0.250% 5/06/22 100.04 8,850,000.0000 8,838,760.50 8,853,805.50 0.91 15,045.00 1 of 5 +- U.S. Bank Asset Detail - Consolidated As of 12/31/2021 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 3133EKWV4 F F C B DEB 1.850% 7/26/24 102.92 5,000,000.0000 5,048,280.00 5,145,800.00 0.53 97,520.00 3130A1XJ2 F H L B 2.875% 6/14/24 104.85 11,110,000.0000 11,589,031.30 11,648,723.90 1.20 59,692.60 3130A4CH3 F H L B DEB 2.375% 3/14/25 104.19 5,225,000.0000 5,526,848.25 5,443,823.00 0.56 (83,025.25) 3130A2UW4 F H L B DEB 2.875% 9/13/24 105.09 2,500,000.0000 2,635,950.00 2,627,150.00 0.27 (8,800.00) 313383QR5 F H L B DEB 3.250% 6/09/23 103.85 5,000,000.0000 5,083,350.00 5,192,350.00 0.54 109,000.00 313383YJ4 F H L B DEB 3.375% 9/08/23 104.56 10,000,000.0000 10,211,831.00 10,455,800.00 1.08 243,969.00 3130A0F70 F H L B DEB 3.375% 12/08/23 105.06 10,000,000.0000 10,269,043.75 10,505,800.00 1.08 236,756.25 3137BFE98 F H L B GTD REMIC 3.171% 10/25/24 105.11 5,000,000.0000 5,378,515.62 5,255,550.00 0.54 (122,965.62) 3137EAEP0 F H L M C 1.500% 2/12/25 101.44 12,335,000.0000 12,510,182.05 12,513,117.40 1.29 2,935.35 3137EAEN5 F H L M C 2.750% 6/19/23 103.14 10,000,000.0000 9,956,500.00 10,313,700.00 1.06 357,200.00 3137EAEU9 F H L M C M T N 0.375% 7/21/25 97.46 5,030,000.0000 5,004,950.60 4,902,087.10 0.51 (102,863.50) 3137EAEX3 F H L M C M T N 0.375% 9/23/25 97.29 7,660,000.0000 7,636,943.40 7,452,567.20 0.77 (184,376.20) 31348SWZ3 F H L M C #786064 2.262% 1/01/28 100.37 1,319.7900 1,287.65 1,324.67 0.00 37.02 31394JY35 F H L M C MLTCL MT 9.50001% 9/25/43 113.16 460,244.1100 521,226.45 520,826.04 0.05 (400.41) 3133TCE95 F H L M C MLTCL MTG 3.787% 8/15/32 100.44 3,588.0500 3,591.82 3,603.86 0.00 12.04 3135G05G4 F N M A 0.250% 7/10/23 99.46 6,775,000.0000 6,760,433.75 6,738,076.25 0.69 (22,357.50) 3135G05X7 F N M A 0.375% 8/25/25 97.27 7,945,000.0000 7,907,817.40 7,727,783.70 0.80 (180,033.70) 3135G04Z3 F N M A 0.500% 6/17/25 98.01 9,905,000.0000 9,884,496.65 9,707,395.25 1.00 (177,101.40) 3135G06G3 F N M A 0.500% 11/07/25 97.57 8,255,000.0000 8,225,447.10 8,054,238.40 0.83 (171,208.70) 3135G0X24 F N M A 1.625% 1/07/25 101.81 10,000,000.0000 10,157,936.40 10,180,800.00 1.05 22,863.60 3135G0V34 F N M A 2.500% 2/05/24 103.54 5,000,000.0000 4,980,850.00 5,177,050.00 0.53 196,200.00 31371NUC7 F N M A #257179 4.500% 4/01/28 107.01 6,617.6700 6,998.85 7,081.70 0.00 82.85 31376KT22 F N M A #357969 5.000% 9/01/35 113.14 57,250.5400 61,544.32 64,772.69 0.01 3,228.37 31403DJZ3 F N M A #745580 5.000% 6/01/36 112.93 53,293.9000 57,290.94 60,182.14 0.01 2,891.20 31403GXF4 F N M A #748678 5.000% 10/01/33 109.99 787.8400 846.92 866.52 0.00 19.60 31406PQY8 F N M A #815971 5.000% 3/01/35 112.99 78,209.7400 84,075.48 88,372.31 0.01 4,296.83 31406XWT5 F N M A #823358 1.977% 2/01/35 104.15 55,226.4000 54,794.93 57,516.64 0.01 2,721.71 31407BXH7 F N M A #826080 5.000% 7/01/35 113.00 10,711.7200 11,515.08 12,104.67 0.00 589.59 31410F4V4 F N M A #888336 5.000% 7/01/36 112.96 89,715.5500 96,444.23 101,340.89 0.01 4,896.66 3138EG6F6 F N M A #AL0869 4.500% 6/01/29 107.04 4,907.3200 5,189.98 5,252.60 0.00 62.62 31417YAY3 F N M A #MA0022 4.500% 4/01/29 107.07 8,299.6800 8,777.72 8,886.47 0.00 108.75 3135G03U5 F N M A DEB 0.625% 4/22/25 98.62 14,000,000.0000 13,996,711.60 13,806,520.00 1.42 (190,191.60) 3135G0T94 F N M A DEB 2.375% 1/19/23 102.05 5,000,000.0000 4,910,990.00 5,102,400.00 0.53 191,410.00 31397QRE0 F N M A GTD REMIC 2.472% 2/25/41 101.58 93,868.6800 93,839.37 95,348.05 0.01 1,508.68 36225CAZ9 G N M A I I #080023 2.125% 12/20/26 103.33 8,993.7500 9,142.33 9,293.42 0.00 151.09 36225CC20 G N M A I I #080088 2.000% 6/20/27 101.17 6,353.9400 6,492.94 6,427.96 0.00 (64.98) 36225CNM4 G N M A I I #080395 1.875% 4/20/30 103.26 3,474.6500 3,443.15 3,587.96 0.00 144.81 36225CN28 G N M A I I #080408 1.875% 5/20/30 103.31 29,387.1400 29,088.67 30,359.85 0.00 1,271.18 36225DCB8 G N M A I I #080965 1.625% 7/20/34 103.64 25,096.9700 25,081.29 26,010.75 0.00 929.46 362554AC1 GM FIN CONS AUTO 0.680% 9/16/26 99.25 1,705,000.0000 1,704,956.52 1,692,127.25 0.17 (12,829.27) 43813GAC5 HONDA AUTO 0.270% 4/21/25 99.46 1,605,000.0000 1,604,970.63 1,596,397.20 0.16 (8,573.43) 43813KAC6 HONDA AUTO 0.370% 10/18/24 99.72 3,235,000.0000 3,234,524.78 3,225,909.65 0.33 (8,615.13) 2 of 5 U.S. Bank Asset Detail - Consolidated As of 12/31/2021 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 43815GAC3 HONDA AUTO REC 0.880% 1/21/26 99.76 2,290,000.0000 2,289,517.27 2,284,435.30 0.24 (5,081.97) 438516CB0 HONEYWELL 1.350% 6/01/25 100.40 5,000,000.0000 5,119,000.00 5,020,200.00 0.52 (98,800.00) 44934KAC8 HTUNDAI AUTO REC TR 0.380% 1/15/26 98.90 6,040,000.0000 6,038,666.97 5,973,258.00 0.62 (65,408.97) 44891VAC5 HYUNDAI AUTO LEASE 0.330% 6/17/24 99.37 4,155,000.0000 4,154,376.75 4,128,906.60 0.43 (25,470.15) 44933LAC7 HYUNDAI AUTO REC 0.380% 9/15/25 99.25 2,100,000.0000 2,099,779.08 2,084,292.00 0.21 (15,487.08) 44935FAD6 HYUNDAI AUTO REC TR 0.740% 5/15/26 99.31 1,600,000.0000 1,599,642.88 1,588,992.00 0.16 (10,650.88) 458140BD1 INTEL CORP 2.875% 5/11/24 104.11 5,000,000.0000 5,025,900.00 5,205,500.00 0.54 179,600.00 4581X0DZ8 INTER AMER BK M T N 0.500% 9/23/24 98.65 10,775,000.0000 10,767,026.50 10,629,968.50 1.10 (137,058.00) 4581X0DN5 INTER AMER BK M T N 0.625% 7/15/25 98.11 5,050,000.0000 5,071,967.50 4,954,504.50 0.51 (117,463.00) 4581X0DV7 INTER AMER BK M T N 0.875% 4/20/26 98.41 13,370,000.0000 13,308,765.40 13,157,283.30 1.36 (151,482.10) 4581X0CZ9 INTER AMER DEV BK 1.750% 9/14/22 100.95 6,500,000.0000 6,249,655.00 6,561,425.00 0.68 311,770.00 4581X0CW6 INTER AMER DEV BK 2.125% 1/18/22 100.17 3,000,000.0000 2,996,310.00 3,005,070.00 0.31 8,760.00 459058FY4 INTL BK 2.000% 1/26/22 100.10 10,000,000.0000 10,006,350.00 10,010,100.00 1.03 3,750.00 459058JL8 INTL BK M T N 0.500% 10/28/25 97.41 15,000,000.0000 14,964,951.60 14,611,200.00 1.51 (353,751.60) 459058JB0 INTL BK M T N 0.626% 4/22/25 98.32 6,245,000.0000 6,220,831.85 6,140,333.80 0.63 (80,498.05) 24422EUM9 JOHN DEERE MTN 3.650% 10/12/23 104.93 1,250,000.0000 1,250,237.50 1,311,662.50 0.14 61,425.00 47789QAC4 JOHN DEERE OWN 0.520% 3/16/26 98.86 2,820,000.0000 2,819,748.46 2,787,767.40 0.29 (31,981.06) 47788UAC6 JOHN DEERE OWNER 0.360% 9/15/25 99.19 2,300,000.0000 2,299,557.94 2,281,370.00 0.24 (18,187.94) 47787NAC3 JOHN DEERE OWNER 0.510% 11/15/24 99.85 1,480,000.0000 1,479,774.45 1,477,735.60 0.15 (2,038.85) 46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 102.27 5,000,000.0000 4,821,910.00 5,113,450.00 0.53 291,540.00 46647PBH8 JPMORGAN CHASE CO 2.005% 3/13/26 101.18 3,500,000.0000 3,602,345.00 3,541,265.00 0.37 (61,080.00) 46647PAU0 JPMORGAN CHASE CO 3.797% 7/23/24 104.22 2,500,000.0000 2,632,175.00 2,605,450.00 0.27 (26,725.00) 525ESC0Y6 LEHMAN BRTH HLD ESC - 2,000,000.0000 1,017,827.66 - - (1,017,827.66) 525ESCIB7 LEHMAN BRTH MTN ES 0.00001% 1/24/13 0.55 600,000.0000 315,960.88 3,300.00 0.00 (312,660.88) 58769KAD6 MERCEDES BENZ AUTO 0.400% 11/15/24 99.24 3,315,000.0000 3,314,749.72 3,289,938.60 0.34 (24,811.12) 58770FAC6 MERCEDES BENZ AUTO 1.840% 12/15/22 100.27 914,426.6500 914,306.13 916,859.02 0.09 2,552.89 58933YAF2 MERCK CO INC 2.800% 5/18/23 102.94 2,000,000.0000 1,948,640.00 2,058,820.00 0.21 110,180.00 58989V2D5 MET TOWER MTN 1.250% 9/14/26 97.83 3,745,000.0000 3,741,554.60 3,663,883.30 0.38 (77,671.30) 61747YEA9 MORGAN STANLEY 0.790% 5/30/25 98.69 8,885,000.0000 8,889,710.25 8,768,873.05 0.90 (120,837.20) 61744YAH1 MORGAN STANLEY 2.750% 5/19/22 100.90 2,000,000.0000 2,047,260.00 2,017,920.00 0.21 (29,340.00) 65479JAD5 NISSAN AUTO 1.930% 7/15/24 100.81 2,724,922.1400 2,724,778.26 2,746,966.76 0.28 22,188.50 65479GAD1 NISSAN AUTO 3.060% 3/15/23 100.21 287,650.8000 287,641.48 288,243.36 0.03 601.88 65558UBJ0 NORDEA BK ABP C D 0.210% 5/16/22 100.03 3,000,000.0000 3,000,300.89 3,000,960.00 0.31 659.11 65558UBJ0 NORDEA BK ABP C D 0.210% 5/16/22 100.03 7,000,000.0000 7,000,702.07 7,002,240.00 0.72 1,537.93 69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 100.18 1,000,000.0000 974,940.00 1,001,770.00 0.10 26,830.00 69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 103.75 5,000,000.0000 4,993,318.05 5,187,600.00 0.53 194,281.95 747525AF0 QUALCOMM INC 3.450% 5/20/25 106.56 5,790,000.0000 6,161,513.40 6,169,997.70 0.64 8,484.30 78015K7H1 ROYAL BANK OF MTN 1.150% 6/10/25 99.14 4,000,000.0000 4,013,620.00 3,965,440.00 0.41 (48,180.00) 78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 103.32 6,500,000.0000 6,581,445.00 6,715,475.00 0.69 134,030.00 78445JAA5 S L M A 1.65997% 4/25/23 100.68 9,510.5300 9,471.93 9,575.11 0.00 103.18 79466LAG9 SALESFORCE COM INC 0.625% 7/15/24 99.07 1,350,000.0000 1,349,311.50 1,337,431.50 0.14 (11,880.00) 808513BN4 SCHWAB CHARLES 0.750% 3/18/24 99.55 2,785,000.0000 2,783,607.50 2,772,551.05 0.29 (11,056.45) 3 of 5 U.S. Bank Asset Detail - Consolidated As of 12/31/2021 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 86959RQE3 SVENSKA C D 0.230% 5/10/22 100.01 3,000,000.0000 3,001,280.93 3,000,360.00 0.31 (920.93) 86959RTW0 SVENSKA C D 0.255% 10/14/22 99.92 6,000,000.0000 6,000,302.58 5,994,900.00 0.62 (5,402.58) 89114W7M1 TORONTO C D 0.240% 4/28/22 100.00 2,000,000.0000 1,999,999.94 2,000,080.00 0.21 80.06 89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 103.73 3,000,000.0000 3,000,570.00 3,111,780.00 0.32 111,210.00 89114QC48 TORONTO MTN 3.500% 7/19/23 104.20 5,000,000.0000 5,094,200.00 5,210,200.00 0.54 116,000.00 89237VAB5 TOYOTA AUTO RECV 0.440% 10/15/24 99.92 2,960,000.0000 2,959,772.08 2,957,632.00 0.30 (2,140.08) 89239CAC3 TOYOTA LEASE OWNER 0.420% 10/21/24 99.15 3,185,000.0000 3,184,957.00 3,157,927.50 0.33 (27,029.50) 89236TJK2 TOYOTA MTR CR MTN 1.125% 6/18/26 98.48 7,285,000.0000 7,281,794.60 7,174,559.40 0.74 (107,235.20) 912828WU0 U S TREASURY I P S 0.125% 7/15/24 106.59 12,111,216.0000 11,966,496.09 12,909,829.58 1.33 943,333.49 91282CBG5 U S TREASURY NT 0.125% 1/31/23 99.66 10,000,000.0000 9,998,046.88 9,965,600.00 1.03 (32,446.88) 912828ZM5 U S TREASURY NT 0.125% 4/30/22 100.00 25,000,000.0000 25,014,746.10 25,000,750.00 2.58 (13,996.10) 912828ZX1 U S TREASURY NT 0.125% 6/30/22 99.96 7,000,000.0000 6,998,750.00 6,997,270.00 0.72 (1,480.00) 91282CAC5 U S TREASURY NT 0.125% 7/31/22 99.93 30,000,000.0000 29,986,523.43 29,979,000.00 3.09 (7,523.43) 91282CBA8 U S TREASURY NT 0.125% 12/15/23 98.85 6,500,000.0000 6,491,367.19 6,425,380.00 0.66 (65,987.19) 91282CAM3 U S TREASURY NT 0.250% 9/30/25 96.84 6,500,000.0000 6,477,656.25 6,294,340.00 0.65 (183,316.25) 91282CBH3 U S TREASURY NT 0.375% 1/31/26 96.74 18,000,000.0000 17,781,875.00 17,413,560.00 1.80 (368,315.00) 912828ZL7 U S TREASURY NT 0.375% 4/30/25 97.78 12,000,000.0000 11,998,515.63 11,733,720.00 1.21 (264,795.63) 91282CCX7 U S TREASURY NT 0.375% 9/15/24 98.59 10,500,000.0000 10,377,363.28 10,351,530.00 1.07 (25,833.28) 91282CBC4 U S TREASURY NT 0.375% 12/31/25 96.93 10,000,000.0000 9,943,320.32 9,693,000.00 1.00 (250,320.32) 91282CDR9 U S TREASURY NT 0.625% 12/31/23 100.02 7,500,000.0000 7,500,292.97 7,501,500.00 0.77 1,207.03 91282CBT7 U S TREASURY NT 0.750% 3/31/26 98.10 10,000,000.0000 9,943,359.37 9,810,200.00 1.01 (133,159.37) 91282CCF6 U S TREASURY NT 0.750% 5/31/26 97.95 7,500,000.0000 7,443,750.00 7,345,875.00 0.76 (97,875.00) 91282CCW9 U S TREASURY NT 0.750% 8/31/26 97.76 8,000,000.0000 7,874,375.01 7,820,960.00 0.81 (53,415.01) 91282CDG3 U S TREASURY NT 1.125% 10/31/26 99.34 19,250,000.0000 19,119,013.68 19,122,180.00 1.97 3,166.32 912828Z60 U S TREASURY NT 1.375% 1/31/22 100.10 40,000,000.0000 40,226,757.82 40,040,000.00 4.13 (186,757.82) 912828H86 U S TREASURY NT 1.500% 1/31/22 100.11 27,500,000.0000 27,691,210.94 27,530,250.00 2.84 (160,960.94) 912828YH7 U S TREASURY NT 1.500% 9/30/24 101.58 14,000,000.0000 13,859,296.88 14,220,920.00 1.47 361,623.12 912828R69 U S TREASURY NT 1.625% 5/31/23 101.51 5,000,000.0000 4,757,226.56 5,075,400.00 0.52 318,173.44 912828J43 U S TREASURY NT 1.750% 2/28/22 100.26 7,500,000.0000 7,606,054.69 7,519,650.00 0.78 (86,404.69) 912828L57 U S TREASURY NT 1.750% 9/30/22 101.07 6,500,000.0000 6,513,710.94 6,569,290.00 0.68 55,579.06 912828XX3 U S TREASURY NT 2.000% 6/30/24 102.79 5,000,000.0000 5,028,710.94 5,139,650.00 0.53 110,939.06 912828M80 U S TREASURY NT 2.000% 11/30/22 101.45 8,000,000.0000 7,907,500.00 8,115,920.00 0.84 208,420.00 912828W48 U S TREASURY NT 2.125% 2/29/24 102.87 10,000,000.0000 9,911,718.75 10,287,100.00 1.06 375,381.25 912828U57 U S TREASURY NT 2.125% 11/30/23 102.68 15,000,000.0000 14,723,632.81 15,402,600.00 1.59 678,967.19 9128283J7 U S TREASURY NT 2.125% 11/30/24 103.34 16,500,000.0000 16,783,886.72 17,050,440.00 1.76 266,553.28 912828N30 U S TREASURY NT 2.125% 12/31/22 101.66 5,000,000.0000 4,926,562.50 5,083,000.00 0.52 156,437.50 912828V80 U S TREASURY NT 2.250% 1/31/24 103.07 7,500,000.0000 7,491,503.91 7,730,250.00 0.80 238,746.09 9128286M7 U S TREASURY NT 2.250% 4/15/22 100.60 7,500,000.0000 7,657,324.22 7,544,775.00 0.78 (112,549.22) 9128286H8 U S TREASURY NT 2.375% 3/15/22 100.45 7,500,000.0000 7,651,757.81 7,533,825.00 0.78 (117,932.81) 9128284D9 U S TREASURY NT 2.500% 3/31/23 102.47 10,000,000.0000 9,887,265.63 10,246,500.00 1.06 359,234.37 912828WJ5 U S TREASURY NT 2.500% 5/15/24 103.88 7,000,000.0000 7,193,046.88 7,271,810.00 0.75 78,763.12 91324PEC2 UNITEDHEALTH 1.150% 5/15/26 98.92 1,755,000.0000 1,760,683.15 1,736,010.90 0.18 (24,672.25) 4 of 5 U.S. Bank Asset Detail - Consolidated As of 12/31/2021 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 90331HPL1 US BANK NA MTN 2.050% 1/21/25 102.27 7,270,000.0000 7,254,514.90 7,435,247.10 0.77 180,732.20 90331HNL3 US BANK NA MTN 2.850% 1/23/23 102.13 2,000,000.0000 1,992,640.00 2,042,600.00 0.21 49,960.00 931142ER0 WALMART INC 1.050% 9/17/26 98.88 1,725,000.0000 1,721,739.75 1,705,628.25 0.18 (16,111.50) 931142EK5 WALMART INC 3.400% 6/26/23 104.02 3,880,000.0000 3,878,991.40 4,036,014.80 0.42 157,023.40 Fixed Income Total 883,444,095.2000 884,864,507.58 886,428,533.25 91.38 1,564,025.67 Grand Total 967,077,561.9000 968,459,230.43 970,036,829.95 100.00 1,577,599.52 5 of 5 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss ACQUISITIONS10/04/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 150.7000 1.000000 -150.70 150.70 0.00 10/04/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 101.7900 1.000000 -101.79 101.79 0.00 10/05/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 46,875.0000 1.000000 -46,875.00 46,875.00 0.00 10/07/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,019.8300 1.000000 -2,019.83 2,019.83 0.00 10/12/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 59,062.5000 1.000000 -59,062.50 59,062.50 0.00 10/15/2021 86959RTW0 PURCHASED PAR VALUE OF SVENSKA C D 0.255% 10/14/22 /J.P. MORGAN SECURITIES LLC/6,000,000 PAR VALUE AT 100.005043 %6,000,000.0000 1.000050 -6,000,302.58 6,000,302.58 0.00 10/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 84,375.0000 1.000000 -84,375.00 84,375.00 0.00 10/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 727,197.1500 1.000000 -727,197.15 727,197.15 0.00 10/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 63,296.4500 1.000000 -63,296.45 63,296.45 0.00 10/18/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 997.4600 1.000000 -997.46 997.46 0.00 10/20/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 61,206.3300 1.000000 -61,206.33 61,206.33 0.00 10/21/2021 362554AC1 PURCHASED PAR VALUE OF GM FIN CONS AUTO 0.00001% 9/16/26 /J.P. MORGAN SECURITIES LLC/1,705,000 PAR VALUE AT 99.99744985 % 1,705,000.0000 0.999975 -1,704,956.52 1,704,956.52 0.00 10/21/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 138,712.7900 1.000000 -138,712.79 138,712.79 0.00 10/22/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 63,296.8500 1.000000 -63,296.85 63,296.85 0.00 10/25/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 42,796.2700 1.000000 -42,796.27 42,796.27 0.00 10/25/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,927.4400 1.000000 -5,927.44 5,927.44 0.00 10/28/2021 91282CCW9 PURCHASED PAR VALUE OF U S TREASURY NT 0.750% 8/31/26 /BOFA SECURITIES, INC./FXD INC/5,000,000 PAR VALUE AT 98.1953126 % 5,000,000.0000 0.981953 -4,909,765.63 4,909,765.63 0.00 10/28/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,558,864.3400 1.000000 -1,558,864.34 1,558,864.34 0.00 11/01/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 15,625.0000 1.000000 -15,625.00 15,625.00 0.00 11/01/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 64,750.0000 1.000000 -64,750.00 64,750.00 0.00 11/01/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 22,500.0000 1.000000 -22,500.00 22,500.00 0.00 11/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1.5000 1.000000 -1.50 1.50 0.00 11/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 32.0600 1.000000 -32.06 32.06 0.00 11/03/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 59,929.3800 1.000000 -59,929.38 59,929.38 0.00 11/08/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 31,700.0000 1.000000 -31,700.00 31,700.00 0.00 11/10/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 30,000,000.0000 1.000000 -30,000,000.00 30,000,000.00 0.00 11/10/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 10,000,000.0000 1.000000 -10,000,000.00 10,000,000.00 0.00 11/12/2021 912828Z60 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 1/31/22 /J.P. MORGAN SECURITIES LLC/5,000,000 PAR VALUE AT 100.2851562 %5,000,000.0000 1.002852 -5,014,257.81 5,014,257.81 0.00 11/12/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 126,977.5000 1.000000 -126,977.50 126,977.50 0.00 11/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 69,442.4800 1.000000 -69,442.48 69,442.48 0.00 11/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 740,214.8900 1.000000 -740,214.89 740,214.89 0.00 1 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/16/2021 912828Z60 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 1/31/22 /CITIGROUP GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 100.2734376 %5,000,000.0000 1.002734 -5,013,671.88 5,013,671.88 0.00 11/16/2021 912828H86 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 1/31/22 /CITIGROUP GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 100.2929688 %5,000,000.0000 1.002930 -5,014,648.44 5,014,648.44 0.00 11/16/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 805.1400 1.000000 -805.14 805.14 0.00 11/17/2021 44935FAD6 PURCHASED PAR VALUE OF HYUNDAI AUTO REC TR 0.740% 5/15/26 /PERSHING LLC/1,600,000 PAR VALUE AT 99.97768 % 1,600,000.0000 0.999777 -1,599,642.88 1,599,642.88 0.00 11/17/2021 91282CDG3 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 10/31/26 /GOLDMAN SACHS & CO. LLC/3,000,000 PAR VALUE AT 99.31640633 % 3,000,000.0000 0.993164 -2,979,492.19 2,979,492.19 0.00 11/18/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 997.4600 1.000000 -997.46 997.46 0.00 11/18/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 95,500.0000 1.000000 -95,500.00 95,500.00 0.00 11/19/2021 912828Z60 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 1/31/22 /CITIGROUP GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 100.2617188 % 5,000,000.0000 1.002617 -5,013,085.94 5,013,085.94 0.00 11/19/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 27,500.0000 1.000000 -27,500.00 27,500.00 0.00 11/22/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 19,500.0000 1.000000 -19,500.00 19,500.00 0.00 11/22/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 60,746.0300 1.000000 -60,746.03 60,746.03 0.00 11/22/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,055.3400 1.000000 -3,055.34 3,055.34 0.00 11/24/2021 43815GAC3 PURCHASED PAR VALUE OF HONDA AUTO REC 0.00001% 1/21/26 /BOFA SECURITIES, INC./FXD INC/2,290,000 PAR VALUE AT 99.97892009 % 2,290,000.0000 0.999789 -2,289,517.27 2,289,517.27 0.00 11/24/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,710,482.7300 1.000000 -2,710,482.73 2,710,482.73 0.00 11/24/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,155.5600 1.000000 -14,155.56 14,155.56 0.00 11/26/2021 91282CDG3 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 10/31/26 /J.P. MORGAN SECURITIES LLC/4,500,000 PAR VALUE AT 98.98828133 % 4,500,000.0000 0.989883 -4,454,472.66 4,454,472.66 0.00 11/29/2021 747525AF0 PURCHASED PAR VALUE OF QUALCOMM INC 3.450% 5/20/25 /CITIGROUP GLOBAL MARKETS INC./3,790,000 PAR VALUE AT 106.346 % 3,790,000.0000 1.063460 -4,030,513.40 4,030,513.40 0.00 11/29/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,000,000.0000 1.000000 -2,000,000.00 2,000,000.00 0.00 11/30/2021 912828Z60 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 1/31/22 /CITIGROUP GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 100.2226562 % 5,000,000.0000 1.002227 -5,011,132.81 5,011,132.81 0.00 11/30/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 518,338.2800 1.000000 -518,338.28 518,338.28 0.00 12/01/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 33,750.0000 1.000000 -33,750.00 33,750.00 0.00 12/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 178.9900 1.000000 -178.99 178.99 0.00 12/02/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 112.0000 1.000000 -112.00 112.00 0.00 12/08/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 256,250.0000 1.000000 -256,250.00 256,250.00 0.00 12/09/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 81,250.0000 1.000000 -81,250.00 81,250.00 0.00 12/10/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,375.0000 1.000000 -14,375.00 14,375.00 0.00 12/13/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 39,750.0000 1.000000 -39,750.00 39,750.00 0.00 12/14/2021 912828ZX1 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 6/30/22 /NOMURA SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99.984375 %5,000,000.0000 0.999844 -4,999,218.75 4,999,218.75 0.00 2 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/14/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 159,706.2500 1.000000 -159,706.25 159,706.25 0.00 12/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,063.5200 1.000000 -2,063.52 2,063.52 0.00 12/15/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 617,503.4000 1.000000 -617,503.40 617,503.40 0.00 12/16/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 966.1700 1.000000 -966.17 966.17 0.00 12/17/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 24,762.5000 1.000000 -24,762.50 24,762.50 0.00 12/20/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 30,500.0000 1.000000 -30,500.00 30,500.00 0.00 12/20/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 196,716.2900 1.000000 -196,716.29 196,716.29 0.00 12/21/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,872.5300 1.000000 -1,872.53 1,872.53 0.00 12/22/2021 912828ZX1 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 6/30/22 /NOMURA SECURITIES INTERNATIONA/2,000,000 PAR VALUE AT 99.9765625 % 2,000,000.0000 0.999766 -1,999,531.25 1,999,531.25 0.00 12/22/2021 91282CDG3 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 10/31/26 /CITIGROUP GLOBAL MARKETS INC./4,250,000 PAR VALUE AT 99.51953129 %4,250,000.0000 0.995195 -4,229,580.08 4,229,580.08 0.00 12/23/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 71,000,000.0000 1.000000 -71,000,000.00 71,000,000.00 0.00 12/23/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 50,000,000.0000 1.000000 -50,000,000.00 50,000,000.00 0.00 12/27/2021 78015K7H1 PURCHASED PAR VALUE OF ROYAL BANK OF MTN 1.150% 6/10/25 /RBC CAPITAL MARKETS, LLC/1,500,000 PAR VALUE AT 99.06 %1,500,000.0000 0.990600 -1,485,900.00 1,485,900.00 0.00 12/28/2021 912796U23 PURCHASED PAR VALUE OF U S TREASURY BILL 4/26/22 /CITIGROUP GLOBAL MARKETS INC./10,000,000 PAR VALUE AT 99.9646306 % 10,000,000.0000 0.999646 -9,996,463.06 9,996,463.06 0.00 12/28/2021 912796U23 PURCHASED PAR VALUE OF U S TREASURY BILL 4/26/22 /GOLDMAN SACHS & CO. LLC/10,000,000 PAR VALUE AT 99.9636389 % 10,000,000.0000 0.999636 -9,996,363.89 9,996,363.89 0.00 12/28/2021 912796R43 PURCHASED PAR VALUE OF U S TREASURY BILL 6/23/22 /CITADEL CLEARING LLC/10,000,000 PAR VALUE AT 99.9090417 %10,000,000.0000 0.999090 -9,990,904.17 9,990,904.17 0.00 12/28/2021 91282CAC5 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 7/31/22 /GOLDMAN SACHS & CO. LLC/10,000,000 PAR VALUE AT 99.953125 % 10,000,000.0000 0.999531 -9,995,312.50 9,995,312.50 0.00 12/29/2021 747525AF0 PURCHASED PAR VALUE OF QUALCOMM INC 3.450% 5/20/25 /GOLDMAN SACHS & CO. LLC/2,000,000 PAR VALUE AT 106.55 % 2,000,000.0000 1.065500 -2,131,000.00 2,131,000.00 0.00 12/29/2021 91282CCX7 PURCHASED PAR VALUE OF U S TREASURY NT 0.375% 9/15/24 /CITADEL CLEARING LLC/7,500,000 PAR VALUE AT 98.55859373 %7,500,000.0000 0.985586 -7,391,894.53 7,391,894.53 0.00 12/29/2021 91282CDG3 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 10/31/26 /CITIGROUP GLOBAL MARKETS INC./7,500,000 PAR VALUE AT 99.40625 %7,500,000.0000 0.994063 -7,455,468.75 7,455,468.75 0.00 12/29/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 250.0800 1.000000 -250.08 250.08 0.00 12/29/2021 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 172.2300 1.000000 -172.23 172.23 0.00 12/30/2021 912796R50 PURCHASED PAR VALUE OF U S TREASURY BILL 6/30/22 /NOMURA SECURITIES INTERNATIONA/13,000,000 PAR VALUE AT 99.89610831 %13,000,000.0000 0.998961 -12,986,494.08 12,986,494.08 0.00 12/30/2021 91282CAC5 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 7/31/22 /J.P. MORGAN SECURITIES LLC/5,000,000 PAR VALUE AT 99.9570312 % 5,000,000.0000 0.999570 -4,997,851.56 4,997,851.56 0.00 12/30/2021 91282CAC5 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 7/31/22 /J.P. MORGAN SECURITIES LLC/5,000,000 PAR VALUE AT 99.9570312 % 5,000,000.0000 0.999570 -4,997,851.56 4,997,851.56 0.00 3 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/30/2021 91282CAC5 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 7/31/22 /J.P. MORGAN SECURITIES LLC/5,000,000 PAR VALUE AT 99.9570312 % 5,000,000.0000 0.999570 -4,997,851.56 4,997,851.56 0.00 12/31/2021 91282CAC5 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 7/31/22 /CITIGROUP GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 99.953125 %5,000,000.0000 0.999531 -4,997,656.25 4,997,656.25 0.00 12/31/2021 91282CDR9 PURCHASED PAR VALUE OF U S TREASURY NT 0.625% 12/31/23 /J.P. MORGAN SECURITIES LLC/7,500,000 PAR VALUE AT 100.00390627 % 7,500,000.0000 1.000039 -7,500,292.97 7,500,292.97 0.00 TOTAL ACQUISITIONS 335,032,312.2100 -335,082,407.18 335,082,407.18 0.00 0.0000 DISPOSITIONS 10/15/2021 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 2.262% 1/01/28 SEPTEMBER FHLMC DUE 10/15/21 -22.9500 0.000000 22.95 -22.39 0.56 10/15/2021 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.807% 8/15/32 -50.0000 0.000000 50.00 -50.05 -0.05 10/15/2021 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -114,849.6000 0.000000 114,849.60 -114,840.89 8.71 10/15/2021 58770FAC6 PAID DOWN PAR VALUE OF MERCEDES BENZ AUTO 1.840% 12/15/22 -196,813.3500 0.000000 196,813.35 -196,787.41 25.94 10/15/2021 65479JAD5 PAID DOWN PAR VALUE OF NISSAN AUTO 1.930% 7/15/24 -262,460.4800 0.000000 262,460.48 -262,446.62 13.86 10/15/2021 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -134,397.7300 0.000000 134,397.73 -134,393.38 4.35 10/15/2021 3135G0T45 SOLD PAR VALUE OF F N M A 1.875% 4/05/22 /MORGAN STANLEY & CO. LLC/5,000,000 PAR VALUE AT 100.86 %-5,000,000.0000 1.008600 5,043,000.00 -4,972,500.00 70,500.00 10/15/2021 912828L24 SOLD PAR VALUE OF U S TREASURY NT 1.875% 8/31/22 /J.P. MORGAN SECURITIES LLC/1,000,000 PAR VALUE AT 101.566406 % -1,000,000.0000 1.015664 1,015,664.06 -997,972.10 17,691.96 10/20/2021 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 2.125% 12/20/26 SEPTEMBER GNMA DUE 10/20/21 -180.4500 0.000000 180.45 -183.43 -2.98 10/20/2021 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.000% 6/20/27 SEPTEMBER GNMA DUE 10/20/21 -195.8100 0.000000 195.81 -200.09 -4.28 10/20/2021 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 1.875% 4/20/30 SEPTEMBER GNMA DUE 10/20/21 -115.3500 0.000000 115.35 -114.30 1.05 10/20/2021 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 1.875% 5/20/30 SEPTEMBER GNMA DUE 10/20/21 -286.4300 0.000000 286.43 -283.52 2.91 10/20/2021 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 2.250% 7/20/34 SEPTEMBER GNMA DUE 10/20/21 -688.2200 0.000000 688.22 -687.79 0.43 10/21/2021 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.94999% 8/22/22 -137,863.4100 0.000000 137,863.41 -137,844.49 18.92 10/21/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,704,956.5200 1.000000 1,704,956.52 -1,704,956.52 0.00 10/25/2021 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MT 9.50001% 9/25/43 -4,138.4500 0.000000 4,138.45 -4,686.79 -548.34 10/25/2021 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 SEPTEMBER FNMA DUE 10/25/21 -564.9900 0.000000 564.99 -597.53 -32.54 10/25/2021 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 SEPTEMBER FNMA DUE 10/25/21 -312.3900 0.000000 312.39 -335.82 -23.43 10/25/2021 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 SEPTEMBER FNMA DUE 10/25/21 -1,929.4800 0.000000 1,929.48 -2,074.19 -144.71 4 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/25/2021 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 SEPTEMBER FNMA DUE 10/25/21 -4.0300 0.000000 4.03 -4.33 -0.30 10/25/2021 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 SEPTEMBER FNMA DUE 10/25/21 -4,251.8100 0.000000 4,251.81 -4,570.70 -318.89 10/25/2021 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 2.035% 2/01/35 SEPTEMBER FNMA DUE 10/25/21 -12,367.3200 0.000000 12,367.32 -12,270.70 96.62 10/25/2021 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 SEPTEMBER FNMA DUE 10/25/21 -441.9300 0.000000 441.93 -475.07 -33.14 10/25/2021 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 SEPTEMBER FNMA DUE 10/25/21 -3,315.7800 0.000000 3,315.78 -3,564.46 -248.68 10/25/2021 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 SEPTEMBER FNMA DUE 10/25/21 -162.7600 0.000000 162.76 -172.14 -9.38 10/25/2021 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 SEPTEMBER FNMA DUE 10/25/21 -307.1000 0.000000 307.10 -324.79 -17.69 10/25/2021 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -2,237.1900 0.000000 2,237.19 -2,236.49 0.70 10/25/2021 78445JAA5 PAID DOWN PAR VALUE OF S L M A 1.64331% 4/25/23 -296.3900 0.000000 296.39 -295.19 1.20 10/28/2021 912828L57 SOLD PAR VALUE OF U S TREASURY NT 1.750% 9/30/22 /MORGAN STANLEY SMITH BARNEY/3,500,000 PAR VALUE AT 101.50390629 % -3,500,000.0000 1.015039 3,552,636.72 -3,439,296.88 113,339.84 10/28/2021 912828L24 SOLD PAR VALUE OF U S TREASURY NT 1.875% 8/31/22 /WELLS FARGO SECURITIES, LLC/1,500,000 PAR VALUE AT 101.48437533 %-1,500,000.0000 1.014844 1,522,265.63 -1,496,958.15 25,307.48 10/28/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,353,018.1500 1.000000 1,353,018.15 -1,353,018.15 0.00 11/12/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,033,687.1600 1.000000 5,033,687.16 -5,033,687.16 0.00 11/15/2021 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 2.262% 1/01/28 OCTOBER FHLMC DUE 11/15/21 -32.1000 0.000000 32.10 -31.32 0.78 11/15/2021 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.801% 8/15/32 -61.6500 0.000000 61.65 -61.71 -0.06 11/15/2021 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 CMO FINAL PAYDOWN -66,235.8100 0.000000 66,235.81 -66,230.79 5.02 11/15/2021 58770FAC6 PAID DOWN PAR VALUE OF MERCEDES BENZ AUTO 1.840% 12/15/22 -197,796.0100 0.000000 197,796.01 -197,769.94 26.07 11/15/2021 65479JAD5 PAID DOWN PAR VALUE OF NISSAN AUTO 1.930% 7/15/24 -243,256.5600 0.000000 243,256.56 -243,243.72 12.84 11/15/2021 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -127,666.8300 0.000000 127,666.83 -127,662.70 4.13 11/16/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,070,507.8200 1.000000 10,070,507.82 -10,070,507.82 0.00 11/17/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,580,720.0100 1.000000 4,580,720.01 -4,580,720.01 0.00 11/19/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,033,823.0300 1.000000 5,033,823.03 -5,033,823.03 0.00 11/22/2021 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 2.125% 12/20/26 OCTOBER GNMA DUE 11/20/21 -183.5000 0.000000 183.50 -186.53 -3.03 11/22/2021 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.000% 6/20/27 OCTOBER GNMA DUE 11/20/21 -96.6500 0.000000 96.65 -98.76 -2.11 11/22/2021 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 1.875% 4/20/30 OCTOBER GNMA DUE 11/20/21 -163.1100 0.000000 163.11 -161.63 1.48 5 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/22/2021 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 1.875% 5/20/30 OCTOBER GNMA DUE 11/20/21 -704.3700 0.000000 704.37 -697.22 7.15 11/22/2021 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 1.625% 7/20/34 OCTOBER GNMA DUE 11/20/21 -166.7300 0.000000 166.73 -166.63 0.10 11/22/2021 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.94999% 8/22/22 CMO FINAL PAYDOWN -60,746.0300 0.000000 60,746.03 -60,737.70 8.33 11/26/2021 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MT 9.50001% 9/25/43 -31,218.7900 68.194897 31,218.79 -35,355.28 -4,136.49 11/26/2021 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 OCTOBER FNMA DUE 11/25/21 -105.2700 0.000000 105.27 -111.33 -6.06 11/26/2021 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 OCTOBER FNMA DUE 11/25/21 -841.2600 0.000000 841.26 -904.35 -63.09 11/26/2021 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 OCTOBER FNMA DUE 11/25/21 -976.9900 0.000000 976.99 -1,050.26 -73.27 11/26/2021 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 OCTOBER FNMA DUE 11/25/21 -4.0500 0.000000 4.05 -4.35 -0.30 11/26/2021 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 OCTOBER FNMA DUE 11/25/21 -448.0300 0.000000 448.03 -481.63 -33.60 11/26/2021 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 2.035% 2/01/35 OCTOBER FNMA DUE 11/25/21 -476.4400 0.000000 476.44 -472.72 3.72 11/26/2021 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 OCTOBER FNMA DUE 11/25/21 -268.9000 0.000000 268.90 -289.07 -20.17 11/26/2021 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 OCTOBER FNMA DUE 11/25/21 -1,779.2500 0.000000 1,779.25 -1,912.69 -133.44 11/26/2021 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 OCTOBER FNMA DUE 11/25/21 -135.2900 0.000000 135.29 -143.08 -7.79 11/26/2021 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 OCTOBER FNMA DUE 11/25/21 -221.5700 0.000000 221.57 -234.33 -12.76 11/26/2021 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -2,777.7300 0.000000 2,777.73 -2,776.86 0.87 11/26/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,400,768.3400 1.000000 4,400,768.34 -4,400,768.34 0.00 11/29/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,033,782.2800 1.000000 4,033,782.28 -4,033,782.28 0.00 11/30/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,033,924.9300 1.000000 5,033,924.93 -5,033,924.93 0.00 12/14/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,002,055.0300 1.000000 5,002,055.03 -5,002,055.03 0.00 12/15/2021 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 2.262% 1/01/28 NOVEMBER FHLMC DUE 12/15/21 -14.4000 0.000000 14.40 -14.05 0.35 12/15/2021 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.794% 8/15/32 -56.0500 0.000000 56.05 -56.11 -0.06 12/15/2021 58770FAC6 PAID DOWN PAR VALUE OF MERCEDES BENZ AUTO 1.840% 12/15/22 -225,100.3300 0.000000 225,100.33 -225,070.66 29.67 12/15/2021 65479JAD5 PAID DOWN PAR VALUE OF NISSAN AUTO 1.930% 7/15/24 -244,301.6300 0.000000 244,301.63 -244,288.73 12.90 12/15/2021 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -129,060.0700 0.000000 129,060.07 -129,055.89 4.18 6 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/20/2021 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 2.125% 12/20/26 NOVEMBER GNMA DUE 12/20/21 -180.5000 0.000000 180.50 -183.48 -2.98 12/20/2021 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.000% 6/20/27 NOVEMBER GNMA DUE 12/20/21 -92.6100 0.000000 92.61 -94.64 -2.03 12/20/2021 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 1.875% 4/20/30 NOVEMBER GNMA DUE 12/20/21 -37.3100 0.000000 37.31 -36.97 0.34 12/20/2021 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 1.875% 5/20/30 NOVEMBER GNMA DUE 12/20/21 -691.2700 0.000000 691.27 -684.25 7.02 12/20/2021 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 1.625% 7/20/34 NOVEMBER GNMA DUE 12/20/21 -171.8100 0.000000 171.81 -171.70 0.11 12/22/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,000,720.1100 1.000000 2,000,720.11 -2,000,720.11 0.00 12/22/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,236,448.1700 1.000000 4,236,448.17 -4,236,448.17 0.00 12/27/2021 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MT 9.50001% 9/25/43 -4,641.1400 0.000000 4,641.14 -5,256.09 -614.95 12/27/2021 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 NOVEMBER FNMA DUE 12/25/21 -115.1300 0.000000 115.13 -121.76 -6.63 12/27/2021 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 NOVEMBER FNMA DUE 12/25/21 -1,882.9100 0.000000 1,882.91 -2,024.13 -141.22 12/27/2021 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 NOVEMBER FNMA DUE 12/25/21 -1,300.5800 0.000000 1,300.58 -1,398.12 -97.54 12/27/2021 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 NOVEMBER FNMA DUE 12/25/21 -4.0700 0.000000 4.07 -4.38 -0.31 12/27/2021 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 NOVEMBER FNMA DUE 12/25/21 -2,825.5900 0.000000 2,825.59 -3,037.51 -211.92 12/27/2021 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 2.013% 2/01/35 NOVEMBER FNMA DUE 12/25/21 -398.5200 0.000000 398.52 -395.41 3.11 12/27/2021 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 NOVEMBER FNMA DUE 12/25/21 -363.1400 0.000000 363.14 -390.37 -27.23 12/27/2021 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 NOVEMBER FNMA DUE 12/25/21 -4,718.2700 0.000000 4,718.27 -5,072.14 -353.87 12/27/2021 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 NOVEMBER FNMA DUE 12/25/21 -149.2200 0.000000 149.22 -157.82 -8.60 12/27/2021 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 NOVEMBER FNMA DUE 12/25/21 -245.1000 0.000000 245.10 -259.22 -14.12 12/27/2021 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -2,194.5500 0.000000 2,194.55 -2,193.86 0.69 12/27/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,328,182.4100 1.000000 1,328,182.41 -1,328,182.41 0.00 12/28/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -29,987,774.8400 1.000000 29,987,774.84 -29,987,774.84 0.00 12/28/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -9,996,363.8900 1.000000 9,996,363.89 -9,996,363.89 0.00 12/29/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -16,993,119.8100 1.000000 16,993,119.81 -16,993,119.81 0.00 12/30/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -27,987,793.3200 1.000000 27,987,793.32 -27,987,793.32 0.00 7 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/31/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,995,879.7600 1.000000 4,995,879.76 -4,995,879.76 0.00 12/31/2021 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,378,417.9700 1.000000 7,378,417.97 -7,378,417.97 0.00 TOTAL DISPOSITIONS -164,385,104.0700 164,518,670.48 -164,298,885.13 219,785.35 OTHER TRANSACTIONS 10/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 9/30/2021 INTEREST FROM 9/1/21 TO 9/30/21 0.0000 0.000000 150.70 0.00 0.00 10/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 9/30/2021 INTEREST FROM 9/1/21 TO 9/30/21 0.0000 0.000000 101.79 0.00 0.00 10/05/2021 3135G0T45 INTEREST EARNED ON F N M A 1.875% 4/05/22 $1 PV ON 5000000.0000 SHARES DUE 10/5/2021 0.0000 0.000000 46,875.00 0.00 0.00 10/07/2021 525ESC0Y6 Unknown LEHMAN BRTH HLD ESC PARTIAL LIQUIDATING DISTRIBUTION PAID @ 0.77/SHARE 0.0000 0.000000 1,552.44 -1,552.44 0.00 10/07/2021 525ESCIB7 Unknown LEHMAN BRTH MTN ES 0.00001% 1/24/13 PARTIAL LIQUIDATING DISTRIBUTION PAID @ 0.77/SHARE 0.0000 0.000000 467.39 -467.39 0.00 10/12/2021 02665WCQ2 INTEREST EARNED ON AMERICAN HONDA MTN 3.625% 10/10/23 $1 PV ON 2000000.0000 SHARES DUE 10/12/2021 0.0000 0.000000 36,250.00 0.00 0.00 10/12/2021 24422EUM9 INTEREST EARNED ON JOHN DEERE MTN 3.650% 10/12/23 $1 PV ON 1250000.0000 SHARES DUE 10/12/2021 0.0000 0.000000 22,812.50 0.00 0.00 10/13/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13104.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 10/13/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13104.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 13,104.00 0.00 10/13/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13104.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 13,104.0000 0.000000 0.00 0.00 0.00 10/13/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13104.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 10/15/2021 31348SWZ3 INTEREST EARNED ON F H L M C #786064 2.262% 1/01/28 $1 PV ON 2.6200 SHARES DUE 10/15/2021 AUGUST FHLMC DUE 10/15/21 0.0000 0.000000 2.62 0.00 0.00 10/15/2021 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.807% 8/15/32 $1 PV ON 11.9200 SHARES DUE 10/15/2021 $0.00317/PV ON 3,755.75 PV DUE 10/15/21 0.0000 0.000000 11.92 0.00 0.00 10/15/2021 44934KAC8 INTEREST EARNED ON HTUNDAI AUTO REC TR 0.380% 1/15/26 $1 PV ON 1912.6700 SHARES DUE 10/15/2021 $0.00032/PV ON 6,040,000.00 PV DUE 10/15/21 0.0000 0.000000 1,912.67 0.00 0.00 10/15/2021 44891VAC5 INTEREST EARNED ON HYUNDAI AUTO LEASE 0.330% 6/17/24 $1 PV ON 1142.6300 SHARES DUE 10/15/2021 $0.00027/PV ON 4,155,000.00 PV DUE 10/15/21 0.0000 0.000000 1,142.63 0.00 0.00 10/15/2021 44933LAC7 INTEREST EARNED ON HYUNDAI AUTO REC 0.380% 9/15/25 $1 PV ON 665.0000 SHARES DUE 10/15/2021 $0.00032/PV ON 2,100,000.00 PV DUE 10/15/21 0.0000 0.000000 665.00 0.00 0.00 10/15/2021 47789QAC4 INTEREST EARNED ON JOHN DEERE OWN 0.520% 3/16/26 $1 PV ON 1222.0000 SHARES DUE 10/15/2021 $0.00043/PV ON 2,820,000.00 PV DUE 10/15/21 0.0000 0.000000 1,222.00 0.00 0.00 8 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/15/2021 47788UAC6 INTEREST EARNED ON JOHN DEERE OWNER 0.360% 9/15/25 $1 PV ON 690.0000 SHARES DUE 10/15/2021 $0.00030/PV ON 2,300,000.00 PV DUE 10/15/21 0.0000 0.000000 690.00 0.00 0.00 10/15/2021 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV ON 629.0000 SHARES DUE 10/15/2021 $0.00042/PV ON 1,480,000.00 PV DUE 10/15/21 0.0000 0.000000 629.00 0.00 0.00 10/15/2021 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 464.7900 SHARES DUE 10/15/2021 $0.00257/PV ON 181,085.41 PV DUE 10/15/21 0.0000 0.000000 464.79 0.00 0.00 10/15/2021 58769KAD6 INTEREST EARNED ON MERCEDES BENZ AUTO 0.400% 11/15/24 $1 PV ON 1105.0000 SHARES DUE 10/15/2021 $0.00033/PV ON 3,315,000.00 PV DUE 10/15/21 0.0000 0.000000 1,105.00 0.00 0.00 10/15/2021 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 2352.3400 SHARES DUE 10/15/2021 $0.00153/PV ON 1,534,136.34 PV DUE 10/15/21 0.0000 0.000000 2,352.34 0.00 0.00 10/15/2021 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 5588.8600 SHARES DUE 10/15/2021 $0.00161/PV ON 3,474,940.81 PV DUE 10/15/21 0.0000 0.000000 5,588.86 0.00 0.00 10/15/2021 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 1730.8800 SHARES DUE 10/15/2021 $0.00255/PV ON 678,775.43 PV DUE 10/15/21 0.0000 0.000000 1,730.88 0.00 0.00 10/15/2021 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300 SHARES DUE 10/15/2021 $0.00037/PV ON 2,960,000.00 PV DUE 10/15/21 0.0000 0.000000 1,085.33 0.00 0.00 10/15/2021 9128286M7 INTEREST EARNED ON U S TREASURY NT 2.250% 4/15/22 $1 PV ON 7500000.0000 SHARES DUE 10/15/2021 0.0000 0.000000 84,375.00 0.00 0.00 10/15/2021 3135G0T45 RECEIVED ACCRUED INTEREST ON SALE OF F N M A 1.875% 4/05/22 0.0000 0.000000 2,604.17 0.00 0.00 10/15/2021 912828L24 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.875% 8/31/22 0.0000 0.000000 2,330.80 0.00 0.00 10/18/2021 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON 997.4600 SHARES DUE 10/18/2021 $0.00031/PV ON 3,235,000.00 PV DUE 10/18/21 0.0000 0.000000 997.46 0.00 0.00 10/20/2021 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 2.125% 12/20/26 $1 PV ON 16.8900 SHARES DUE 10/20/2021 SEPTEMBER GNMA DUE 10/20/21 0.0000 0.000000 16.89 0.00 0.00 10/20/2021 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.000% 6/20/27 $1 PV ON 11.2300 SHARES DUE 10/20/2021 SEPTEMBER GNMA DUE 10/20/21 0.0000 0.000000 11.23 0.00 0.00 10/20/2021 36225CNM4 INTEREST EARNED ON G N M A I I #080395 1.875% 4/20/30 $1 PV ON 5.9200 SHARES DUE 10/20/2021 SEPTEMBER GNMA DUE 10/20/21 0.0000 0.000000 5.92 0.00 0.00 10/20/2021 36225CN28 INTEREST EARNED ON G N M A I I #080408 1.875% 5/20/30 $1 PV ON 48.5500 SHARES DUE 10/20/2021 SEPTEMBER GNMA DUE 10/20/21 0.0000 0.000000 48.55 0.00 0.00 10/20/2021 36225DCB8 INTEREST EARNED ON G N M A I I #080965 2.250% 7/20/34 $1 PV ON 48.9800 SHARES DUE 10/20/2021 SEPTEMBER GNMA DUE 10/20/21 0.0000 0.000000 48.98 0.00 0.00 10/20/2021 4581X0DV7 INTEREST EARNED ON INTER AMER BK M T N 0.875% 4/20/26 $1 PV ON 13370000.0000 SHARES DUE 10/20/2021 0.0000 0.000000 58,493.75 0.00 0.00 10/20/2021 89239CAC3 INTEREST EARNED ON TOYOTA LEASE OWNER 0.420% 10/21/24 $1 PV ON 1114.7500 SHARES DUE 10/20/2021 $0.00035/PV ON 3,185,000.00 PV DUE 10/20/21 0.0000 0.000000 1,114.75 0.00 0.00 10/21/2021 43813GAC5 INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25 $1 PV ON 361.1300 SHARES DUE 10/21/2021 $0.00023/PV ON 1,605,000.00 PV DUE 10/21/21 0.0000 0.000000 361.13 0.00 0.00 10/21/2021 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.94999% 8/22/22 $1 PV ON 488.2500 SHARES DUE 10/21/2021 $0.00246/PV ON 198,609.44 PV DUE 10/21/21 0.0000 0.000000 488.25 0.00 0.00 9 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/22/2021 3135G03U5 INTEREST EARNED ON F N M A DEB 0.625% 4/22/25 $1 PV ON 14000000.0000 SHARES DUE 10/22/2021 0.0000 0.000000 43,750.00 0.00 0.00 10/22/2021 459058JB0 INTEREST EARNED ON INTL BK M T N 0.626% 4/22/25 $1 PV ON 6245000.0000 SHARES DUE 10/22/2021 0.0000 0.000000 19,546.85 0.00 0.00 10/25/2021 03215PFN4 INTEREST EARNED ON AMRESCO 0.95764% 6/25/29 $1 PV ON 94.9800 SHARES DUE 10/25/2021 $0.00080/PV ON 119,021.64 PV DUE 10/25/21 0.0000 0.000000 94.98 0.00 0.00 10/25/2021 09690AAC7 INTEREST EARNED ON BMW VEHICLE LEASE 0.330% 12/26/24 $1 PV ON 759.0000 SHARES DUE 10/25/2021 $0.00037/PV ON 2,070,000.00 PV DUE 10/25/21 0.0000 0.000000 759.00 0.00 0.00 10/25/2021 3137BFE98 INTEREST EARNED ON F H L B GTD REMIC 3.171% 10/25/24 $1 PV ON 13212.5000 SHARES DUE 10/25/2021 $0.00264/PV ON 5,000,000.00 PV DUE 10/25/21 0.0000 0.000000 13,212.50 0.00 0.00 10/25/2021 31394JY35 INTEREST EARNED ON F H L M C MLTCL MT 9.50001% 9/25/43 $1 PV ON 2709.6600 SHARES DUE 10/25/2021 $0.00542/PV ON 500,242.49 PV DUE 10/25/21 0.0000 0.000000 2,709.66 0.00 0.00 10/25/2021 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 27.7600 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 27.76 0.00 0.00 10/25/2021 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 251.2000 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 251.20 0.00 0.00 10/25/2021 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 239.5900 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 239.59 0.00 0.00 10/25/2021 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 3.3300 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 3.33 0.00 0.00 10/25/2021 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 357.2300 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 357.23 0.00 0.00 10/25/2021 31406XWT5 INTEREST EARNED ON F N M A #823358 2.035% 2/01/35 $1 PV ON 116.1100 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 116.11 0.00 0.00 10/25/2021 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 49.1100 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 49.11 0.00 0.00 10/25/2021 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 414.7000 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 414.70 0.00 0.00 10/25/2021 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 20.0800 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 20.08 0.00 0.00 10/25/2021 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 34.0300 SHARES DUE 10/25/2021 SEPTEMBER FNMA DUE 10/25/21 0.0000 0.000000 34.03 0.00 0.00 10/25/2021 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 64.5200 SHARES DUE 10/25/2021 $0.00064/PV ON 101,078.15 PV DUE 10/25/21 0.0000 0.000000 64.52 0.00 0.00 10/25/2021 78445JAA5 INTEREST EARNED ON S L M A 1.64331% 4/25/23 $1 PV ON 40.2900 SHARES DUE 10/25/2021 $0.00411/PV ON 9,806.92 PV DUE 10/25/21 0.0000 0.000000 40.29 0.00 0.00 10/27/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 12792.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 10/27/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 12792.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 12,792.00 0.00 10 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/27/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 12792.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 12,792.0000 0.000000 0.00 0.00 0.00 10/27/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 12792.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 10/28/2021 459058JL8 INTEREST EARNED ON INTL BK M T N 0.500% 10/28/25 $1 PV ON 15000000.0000 SHARES DUE 10/28/2021 0.0000 0.000000 37,500.00 0.00 0.00 10/28/2021 91282CCW9 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.750% 8/31/26 0.0000 0.000000 -6,008.29 0.00 0.00 10/28/2021 912828L57 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.750% 9/30/22 0.0000 0.000000 4,711.54 0.00 0.00 10/28/2021 912828L24 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.875% 8/31/22 0.0000 0.000000 4,506.22 0.00 0.00 11/01/2021 06367WB85 INTEREST EARNED ON BANK OF MONTREAL MTN 1.850% 5/01/25 $1 PV ON 7000000.0000 SHARES DUE 11/1/2021 0.0000 0.000000 64,750.00 0.00 0.00 11/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 10/31/2021 INTEREST FROM 10/1/21 TO 10/31/21 0.0000 0.000000 1.50 0.00 0.00 11/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 10/31/2021 INTEREST FROM 10/1/21 TO 10/31/21 0.0000 0.000000 32.06 0.00 0.00 11/01/2021 912828ZM5 INTEREST EARNED ON U S TREASURY NT 0.125% 4/30/22 $1 PV ON 25000000.0000 SHARES DUE 10/31/2021 0.0000 0.000000 15,625.00 0.00 0.00 11/01/2021 912828ZL7 INTEREST EARNED ON U S TREASURY NT 0.375% 4/30/25 $1 PV ON 12000000.0000 SHARES DUE 10/31/2021 0.0000 0.000000 22,500.00 0.00 0.00 11/03/2021 00440EAU1 INTEREST EARNED ON ACE INA HOLDINGS 2.875% 11/03/22 $1 PV ON 4169000.0000 SHARES DUE 11/3/2021 0.0000 0.000000 59,929.38 0.00 0.00 11/08/2021 3133ELYR9 INTEREST EARNED ON F F C B DEB 0.250% 5/06/22 $1 PV ON 8850000.0000 SHARES DUE 11/6/2021 0.0000 0.000000 11,062.50 0.00 0.00 11/08/2021 3135G06G3 INTEREST EARNED ON F N M A 0.500% 11/07/25 $1 PV ON 8255000.0000 SHARES DUE 11/7/2021 0.0000 0.000000 20,637.50 0.00 0.00 11/10/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 15912.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 11/10/2021 CASH RECEIPT INCOMING WIRES WIRE REC'D 11/10/2021 0.0000 0.000000 30,000,000.00 0.00 0.00 11/10/2021 CASH RECEIPT INCOMING WIRES WIRE REC'D 11/10/2021 0.0000 0.000000 10,000,000.00 0.00 0.00 11/10/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 15912.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 15,912.00 0.00 11/10/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 15912.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 15,912.0000 0.000000 0.00 0.00 0.00 11/10/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 15912.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 11/12/2021 023135BW5 INTEREST EARNED ON AMAZON COM INC 0.450% 5/12/24 $1 PV ON 5490000.0000 SHARES DUE 11/12/2021 0.0000 0.000000 12,352.50 0.00 0.00 11/12/2021 037833CU2 INTEREST EARNED ON APPLE INC 2.850% 5/11/24 $1 PV ON 3000000.0000 SHARES DUE 11/11/2021 0.0000 0.000000 42,750.00 0.00 0.00 11 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/12/2021 458140BD1 INTEREST EARNED ON INTEL CORP 2.875% 5/11/24 $1 PV ON 5000000.0000 SHARES DUE 11/11/2021 0.0000 0.000000 71,875.00 0.00 0.00 11/12/2021 912828Z60 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 1/31/22 0.0000 0.000000 -19,429.35 0.00 0.00 11/15/2021 084664BT7 INTEREST EARNED ON BERKSHIRE HATHAWAY 3.000% 5/15/22 $1 PV ON 4000000.0000 SHARES DUE 11/15/2021 0.0000 0.000000 60,000.00 0.00 0.00 11/15/2021 31348SWZ3 INTEREST EARNED ON F H L M C #786064 2.262% 1/01/28 $1 PV ON 2.5800 SHARES DUE 11/15/2021 SEPTEMBER FHLMC DUE 11/15/21 0.0000 0.000000 2.58 0.00 0.00 11/15/2021 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.801% 8/15/32 $1 PV ON 11.7400 SHARES DUE 11/15/2021 $0.00317/PV ON 3,705.75 PV DUE 11/15/21 0.0000 0.000000 11.74 0.00 0.00 11/15/2021 44934KAC8 INTEREST EARNED ON HTUNDAI AUTO REC TR 0.380% 1/15/26 $1 PV ON 1912.6700 SHARES DUE 11/15/2021 $0.00032/PV ON 6,040,000.00 PV DUE 11/15/21 0.0000 0.000000 1,912.67 0.00 0.00 11/15/2021 44891VAC5 INTEREST EARNED ON HYUNDAI AUTO LEASE 0.330% 6/17/24 $1 PV ON 1142.6300 SHARES DUE 11/15/2021 $0.00027/PV ON 4,155,000.00 PV DUE 11/15/21 0.0000 0.000000 1,142.63 0.00 0.00 11/15/2021 44933LAC7 INTEREST EARNED ON HYUNDAI AUTO REC 0.380% 9/15/25 $1 PV ON 665.0000 SHARES DUE 11/15/2021 $0.00032/PV ON 2,100,000.00 PV DUE 11/15/21 0.0000 0.000000 665.00 0.00 0.00 11/15/2021 47789QAC4 INTEREST EARNED ON JOHN DEERE OWN 0.520% 3/16/26 $1 PV ON 1222.0000 SHARES DUE 11/15/2021 $0.00043/PV ON 2,820,000.00 PV DUE 11/15/21 0.0000 0.000000 1,222.00 0.00 0.00 11/15/2021 47788UAC6 INTEREST EARNED ON JOHN DEERE OWNER 0.360% 9/15/25 $1 PV ON 690.0000 SHARES DUE 11/15/2021 $0.00030/PV ON 2,300,000.00 PV DUE 11/15/21 0.0000 0.000000 690.00 0.00 0.00 11/15/2021 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV ON 629.0000 SHARES DUE 11/15/2021 $0.00042/PV ON 1,480,000.00 PV DUE 11/15/21 0.0000 0.000000 629.00 0.00 0.00 11/15/2021 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 170.0000 SHARES DUE 11/15/2021 $0.00257/PV ON 66,235.81 PV DUE 11/15/21 0.0000 0.000000 170.00 0.00 0.00 11/15/2021 58769KAD6 INTEREST EARNED ON MERCEDES BENZ AUTO 0.400% 11/15/24 $1 PV ON 1105.0000 SHARES DUE 11/15/2021 $0.00033/PV ON 3,315,000.00 PV DUE 11/15/21 0.0000 0.000000 1,105.00 0.00 0.00 11/15/2021 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 2050.5600 SHARES DUE 11/15/2021 $0.00153/PV ON 1,337,322.99 PV DUE 11/15/21 0.0000 0.000000 2,050.56 0.00 0.00 11/15/2021 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 5166.7400 SHARES DUE 11/15/2021 $0.00161/PV ON 3,212,480.33 PV DUE 11/15/21 0.0000 0.000000 5,166.74 0.00 0.00 11/15/2021 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 1388.1600 SHARES DUE 11/15/2021 $0.00255/PV ON 544,377.70 PV DUE 11/15/21 0.0000 0.000000 1,388.16 0.00 0.00 11/15/2021 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300 SHARES DUE 11/15/2021 $0.00037/PV ON 2,960,000.00 PV DUE 11/15/21 0.0000 0.000000 1,085.33 0.00 0.00 11/15/2021 912828WJ5 INTEREST EARNED ON U S TREASURY NT 2.500% 5/15/24 $1 PV ON 7000000.0000 SHARES DUE 11/15/2021 0.0000 0.000000 87,500.00 0.00 0.00 11/15/2021 91324PEC2 INTEREST EARNED ON UNITEDHEALTH 1.150% 5/15/26 $1 PV ON 1755000.0000 SHARES DUE 11/15/2021 0.0000 0.000000 9,867.00 0.00 0.00 11/16/2021 362554AC1 INTEREST EARNED ON GM FIN CONS AUTO 0.680% 9/16/26 $1 PV ON 1705000.0000 SHARES DUE 11/16/2021 0.0000 0.000000 805.14 0.00 0.00 11/16/2021 912828Z60 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 1/31/22 0.0000 0.000000 -20,176.63 0.00 0.00 12 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/16/2021 912828H86 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 1/31/22 0.0000 0.000000 -22,010.87 0.00 0.00 11/17/2021 91282CDG3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 10/31/26 0.0000 0.000000 -1,584.94 0.00 0.00 11/18/2021 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON 997.4600 SHARES DUE 11/18/2021 $0.00031/PV ON 3,235,000.00 PV DUE 11/18/21 0.0000 0.000000 997.46 0.00 0.00 11/18/2021 46625HRL6 INTEREST EARNED ON JP MORGAN CHASE CO 2.700% 5/18/23 $1 PV ON 5000000.0000 SHARES DUE 11/18/2021 0.0000 0.000000 67,500.00 0.00 0.00 11/18/2021 58933YAF2 INTEREST EARNED ON MERCK CO INC 2.800% 5/18/23 $1 PV ON 2000000.0000 SHARES DUE 11/18/2021 0.0000 0.000000 28,000.00 0.00 0.00 11/19/2021 61744YAH1 INTEREST EARNED ON MORGAN STANLEY 2.750% 5/19/22 $1 PV ON 2000000.0000 SHARES DUE 11/19/2021 0.0000 0.000000 27,500.00 0.00 0.00 11/19/2021 912828Z60 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 1/31/22 0.0000 0.000000 -20,737.09 0.00 0.00 11/22/2021 02665WDF5 INTEREST EARNED ON AMERICAN HONDA MTN 1.950% 5/20/22 $1 PV ON 2000000.0000 SHARES DUE 11/22/2021 0.0000 0.000000 19,500.00 0.00 0.00 11/22/2021 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 2.125% 12/20/26 $1 PV ON 16.5700 SHARES DUE 11/20/2021 OCTOBER GNMA DUE 11/20/21 0.0000 0.000000 16.57 0.00 0.00 11/22/2021 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.000% 6/20/27 $1 PV ON 10.9100 SHARES DUE 11/20/2021 OCTOBER GNMA DUE 11/20/21 0.0000 0.000000 10.91 0.00 0.00 11/22/2021 36225CNM4 INTEREST EARNED ON G N M A I I #080395 1.875% 4/20/30 $1 PV ON 5.7400 SHARES DUE 11/20/2021 OCTOBER GNMA DUE 11/20/21 0.0000 0.000000 5.74 0.00 0.00 11/22/2021 36225CN28 INTEREST EARNED ON G N M A I I #080408 1.875% 5/20/30 $1 PV ON 48.1000 SHARES DUE 11/20/2021 OCTOBER GNMA DUE 11/20/21 0.0000 0.000000 48.10 0.00 0.00 11/22/2021 36225DCB8 INTEREST EARNED ON G N M A I I #080965 1.625% 7/20/34 $1 PV ON 34.4400 SHARES DUE 11/20/2021 OCTOBER GNMA DUE 11/20/21 0.0000 0.000000 34.44 0.00 0.00 11/22/2021 43813GAC5 INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25 $1 PV ON 361.1300 SHARES DUE 11/21/2021 $0.00023/PV ON 1,605,000.00 PV DUE 11/21/21 0.0000 0.000000 361.13 0.00 0.00 11/22/2021 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.94999% 8/22/22 $1 PV ON 149.3400 SHARES DUE 11/21/2021 $0.00246/PV ON 60,746.03 PV DUE 11/21/21 0.0000 0.000000 149.34 0.00 0.00 11/22/2021 89239CAC3 INTEREST EARNED ON TOYOTA LEASE OWNER 0.420% 10/21/24 $1 PV ON 1114.7500 SHARES DUE 11/20/2021 $0.00035/PV ON 3,185,000.00 PV DUE 11/20/21 0.0000 0.000000 1,114.75 0.00 0.00 11/24/2021 06417MMB8 INTEREST EARNED ON BANK OF NOVA C D 0.280% 11/24/21 $1 PV ON 5000000.0000 SHARES DUE 11/24/2021 ACCRUED INTEREST ON 11/24/2021 FULL CALL 0.0000 0.000000 14,155.56 0.00 0.00 11/24/2021 06417MMB8 MATURED PAR VALUE OF BANK OF NOVA C D 0.280% 11/24/21 5,000,000 PAR VALUE AT 100 %-5,000,000.0000 1.000000 5,000,000.00 -5,000,000.00 0.00 11/26/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 16328.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 11/26/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 16328.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 16,328.00 0.00 11/26/2021 03215PFN4 INTEREST EARNED ON AMRESCO 1.09784% 6/25/29 $1 PV ON 108.8900 SHARES DUE 11/25/2021 $0.00091/PV ON 119,021.64 PV DUE 11/25/21 0.0000 0.000000 108.89 0.00 0.00 13 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/26/2021 09690AAC7 INTEREST EARNED ON BMW VEHICLE LEASE 0.330% 12/26/24 $1 PV ON 569.2500 SHARES DUE 11/25/2021 $0.00027/PV ON 2,070,000.00 PV DUE 11/25/21 0.0000 0.000000 569.25 0.00 0.00 11/26/2021 3137BFE98 INTEREST EARNED ON F H L B GTD REMIC 3.171% 10/25/24 $1 PV ON 13212.5000 SHARES DUE 11/25/2021 $0.00264/PV ON 5,000,000.00 PV DUE 11/25/21 0.0000 0.000000 13,212.50 0.00 0.00 11/26/2021 31394JY35 INTEREST EARNED ON F H L M C MLTCL MT 9.50001% 9/25/43 $1 PV ON 2687.2500 SHARES DUE 11/25/2021 $0.00542/PV ON 496,104.04 PV DUE 11/25/21 0.0000 0.000000 2,687.25 0.00 0.00 11/26/2021 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 25.6400 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 25.64 0.00 0.00 11/26/2021 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 249.8900 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 249.89 0.00 0.00 11/26/2021 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 231.5500 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 231.55 0.00 0.00 11/26/2021 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 3.3200 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 3.32 0.00 0.00 11/26/2021 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 339.5100 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 339.51 0.00 0.00 11/26/2021 31406XWT5 INTEREST EARNED ON F N M A #823358 2.035% 2/01/35 $1 PV ON 95.1400 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 95.14 0.00 0.00 11/26/2021 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 47.2700 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 47.27 0.00 0.00 11/26/2021 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 400.8900 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 400.89 0.00 0.00 11/26/2021 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 19.4700 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 19.47 0.00 0.00 11/26/2021 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 32.8700 SHARES DUE 11/25/2021 OCTOBER FNMA DUE 11/25/21 0.0000 0.000000 32.87 0.00 0.00 11/26/2021 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 63.3600 SHARES DUE 11/25/2021 $0.00064/PV ON 98,840.96 PV DUE 11/25/21 0.0000 0.000000 63.36 0.00 0.00 11/26/2021 91282CDG3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 10/31/26 0.0000 0.000000 -3,636.05 0.00 0.00 11/26/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 16328.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 16,328.0000 0.000000 0.00 0.00 0.00 11/26/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 16328.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 11/29/2021 21687AYV9 INTEREST EARNED ON COOPERATIEVE CENTRALE C P 11/29/21 $1 PV ON 2000000.0000 SHARES DUE 11/29/2021 2,000,000 PAR VALUE AT 100 % 0.0000 0.000000 2,021.11 0.00 0.00 11/29/2021 21687AYV9 MATURED PAR VALUE OF COOPERATIEVE CENTRALE C P 11/29/21 2,000,000 PAR VALUE AT 100 % -2,000,000.0000 1.000000 1,997,978.89 -1,997,978.89 0.00 11/29/2021 747525AF0 PAID ACCRUED INTEREST ON PURCHASE OF QUALCOMM INC 3.450% 5/20/25 0.0000 0.000000 -3,268.88 0.00 0.00 11/30/2021 61747YEA9 INTEREST EARNED ON MORGAN STANLEY 0.790% 5/30/25 $1 PV ON 8885000.0000 SHARES DUE 11/30/2021 0.0000 0.000000 34,900.78 0.00 0.00 14 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/30/2021 91282CCF6 INTEREST EARNED ON U S TREASURY NT 0.750% 5/31/26 $1 PV ON 7500000.0000 SHARES DUE 11/30/2021 0.0000 0.000000 28,125.00 0.00 0.00 11/30/2021 912828R69 INTEREST EARNED ON U S TREASURY NT 1.625% 5/31/23 $1 PV ON 5000000.0000 SHARES DUE 11/30/2021 0.0000 0.000000 40,625.00 0.00 0.00 11/30/2021 912828M80 INTEREST EARNED ON U S TREASURY NT 2.000% 11/30/22 $1 PV ON 8000000.0000 SHARES DUE 11/30/2021 0.0000 0.000000 80,000.00 0.00 0.00 11/30/2021 912828U57 INTEREST EARNED ON U S TREASURY NT 2.125% 11/30/23 $1 PV ON 15000000.0000 SHARES DUE 11/30/2021 0.0000 0.000000 159,375.00 0.00 0.00 11/30/2021 9128283J7 INTEREST EARNED ON U S TREASURY NT 2.125% 11/30/24 $1 PV ON 16500000.0000 SHARES DUE 11/30/2021 0.0000 0.000000 175,312.50 0.00 0.00 11/30/2021 912828Z60 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 1/31/22 0.0000 0.000000 -22,792.12 0.00 0.00 12/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 11/30/2021 INTEREST FROM 11/1/21 TO 11/30/21 0.0000 0.000000 178.99 0.00 0.00 12/01/2021 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 11/30/2021 INTEREST FROM 11/1/21 TO 11/30/21 0.0000 0.000000 112.00 0.00 0.00 12/01/2021 438516CB0 INTEREST EARNED ON HONEYWELL 1.350% 6/01/25 $1 PV ON 5000000.0000 SHARES DUE 12/1/2021 0.0000 0.000000 33,750.00 0.00 0.00 12/08/2021 3130A0F70 INTEREST EARNED ON F H L B DEB 3.375% 12/08/23 $1 PV ON 10000000.0000 SHARES DUE 12/8/2021 0.0000 0.000000 168,750.00 0.00 0.00 12/08/2021 69353RFL7 INTEREST EARNED ON PNC BANK NA MTN 3.500% 6/08/23 $1 PV ON 5000000.0000 SHARES DUE 12/8/2021 0.0000 0.000000 87,500.00 0.00 0.00 12/09/2021 313383QR5 INTEREST EARNED ON F H L B DEB 3.250% 6/09/23 $1 PV ON 5000000.0000 SHARES DUE 12/9/2021 0.0000 0.000000 81,250.00 0.00 0.00 12/10/2021 78015K7H1 INTEREST EARNED ON ROYAL BANK OF MTN 1.150% 6/10/25 $1 PV ON 2500000.0000 SHARES DUE 12/10/2021 0.0000 0.000000 14,375.00 0.00 0.00 12/13/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 46176.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 12/13/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 46176.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 46,176.00 0.00 12/13/2021 89114QCA4 INTEREST EARNED ON TORONTO DOMINION MTN 2.650% 6/12/24 $1 PV ON 3000000.0000 SHARES DUE 12/12/2021 0.0000 0.000000 39,750.00 0.00 0.00 12/13/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 46176.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 46,176.0000 0.000000 0.00 0.00 0.00 12/13/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 46176.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 12/14/2021 3130A1XJ2 INTEREST EARNED ON F H L B 2.875% 6/14/24 $1 PV ON 11110000.0000 SHARES DUE 12/14/2021 0.0000 0.000000 159,706.25 0.00 0.00 12/14/2021 912828ZX1 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 6/30/22 0.0000 0.000000 -2,836.28 0.00 0.00 12/15/2021 31348SWZ3 INTEREST EARNED ON F H L M C #786064 2.262% 1/01/28 $1 PV ON 2.5200 SHARES DUE 12/15/2021 OCTOBER FHLMC DUE 12/15/21 0.0000 0.000000 2.52 0.00 0.00 15 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/15/2021 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.794% 8/15/32 $1 PV ON 11.5200 SHARES DUE 12/15/2021 $0.00316/PV ON 3,644.10 PV DUE 12/15/21 0.0000 0.000000 11.52 0.00 0.00 12/15/2021 44934KAC8 INTEREST EARNED ON HTUNDAI AUTO REC TR 0.380% 1/15/26 $1 PV ON 1912.6700 SHARES DUE 12/15/2021 $0.00032/PV ON 6,040,000.00 PV DUE 12/15/21 0.0000 0.000000 1,912.67 0.00 0.00 12/15/2021 44891VAC5 INTEREST EARNED ON HYUNDAI AUTO LEASE 0.330% 6/17/24 $1 PV ON 4155000.0000 SHARES DUE 12/15/2021 0.0000 0.000000 1,142.63 0.00 0.00 12/15/2021 44933LAC7 INTEREST EARNED ON HYUNDAI AUTO REC 0.380% 9/15/25 $1 PV ON 665.0000 SHARES DUE 12/15/2021 $0.00032/PV ON 2,100,000.00 PV DUE 12/15/21 0.0000 0.000000 665.00 0.00 0.00 12/15/2021 44935FAD6 INTEREST EARNED ON HYUNDAI AUTO REC TR 0.740% 5/15/26 $1 PV ON 920.8900 SHARES DUE 12/15/2021 $0.00058/PV ON 1,600,000.00 PV DUE 12/15/21 0.0000 0.000000 920.89 0.00 0.00 12/15/2021 47789QAC4 INTEREST EARNED ON JOHN DEERE OWN 0.520% 3/16/26 $1 PV ON 1222.0000 SHARES DUE 12/15/2021 $0.00043/PV ON 2,820,000.00 PV DUE 12/15/21 0.0000 0.000000 1,222.00 0.00 0.00 12/15/2021 47788UAC6 INTEREST EARNED ON JOHN DEERE OWNER 0.360% 9/15/25 $1 PV ON 690.0000 SHARES DUE 12/15/2021 $0.00030/PV ON 2,300,000.00 PV DUE 12/15/21 0.0000 0.000000 690.00 0.00 0.00 12/15/2021 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV ON 629.0000 SHARES DUE 12/15/2021 $0.00042/PV ON 1,480,000.00 PV DUE 12/15/21 0.0000 0.000000 629.00 0.00 0.00 12/15/2021 58769KAD6 INTEREST EARNED ON MERCEDES BENZ AUTO 0.400% 11/15/24 $1 PV ON 1105.0000 SHARES DUE 12/15/2021 $0.00033/PV ON 3,315,000.00 PV DUE 12/15/21 0.0000 0.000000 1,105.00 0.00 0.00 12/15/2021 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 1747.2700 SHARES DUE 12/15/2021 $0.00153/PV ON 1,139,526.98 PV DUE 12/15/21 0.0000 0.000000 1,747.27 0.00 0.00 12/15/2021 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 4775.5000 SHARES DUE 12/15/2021 $0.00161/PV ON 2,969,223.77 PV DUE 12/15/21 0.0000 0.000000 4,775.50 0.00 0.00 12/15/2021 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 1062.6100 SHARES DUE 12/15/2021 $0.00255/PV ON 416,710.87 PV DUE 12/15/21 0.0000 0.000000 1,062.61 0.00 0.00 12/15/2021 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300 SHARES DUE 12/15/2021 $0.00037/PV ON 2,960,000.00 PV DUE 12/15/21 0.0000 0.000000 1,085.33 0.00 0.00 12/15/2021 91282CBA8 INTEREST EARNED ON U S TREASURY NT 0.125% 12/15/23 $1 PV ON 6500000.0000 SHARES DUE 12/15/2021 0.0000 0.000000 4,062.50 0.00 0.00 12/16/2021 362554AC1 INTEREST EARNED ON GM FIN CONS AUTO 0.680% 9/16/26 $1 PV ON 1705000.0000 SHARES DUE 12/16/2021 0.0000 0.000000 966.17 0.00 0.00 12/17/2021 3135G04Z3 INTEREST EARNED ON F N M A 0.500% 6/17/25 $1 PV ON 9905000.0000 SHARES DUE 12/17/2021 0.0000 0.000000 24,762.50 0.00 0.00 12/20/2021 06051GJD2 INTEREST EARNED ON BANK AMER CORP MTN 1.319% 6/19/26 $1 PV ON 2250000.0000 SHARES DUE 12/19/2021 0.0000 0.000000 14,838.75 0.00 0.00 12/20/2021 05531FBG7 INTEREST EARNED ON BB T CORPORATION MTN 3.050% 6/20/22 $1 PV ON 2000000.0000 SHARES DUE 12/20/2021 0.0000 0.000000 30,500.00 0.00 0.00 12/20/2021 3137EAEN5 INTEREST EARNED ON F H L M C 2.750% 6/19/23 $1 PV ON 10000000.0000 SHARES DUE 12/19/2021 0.0000 0.000000 137,500.00 0.00 0.00 12/20/2021 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 2.125% 12/20/26 $1 PV ON 16.2500 SHARES DUE 12/20/2021 NOVEMBER GNMA DUE 12/20/21 0.0000 0.000000 16.25 0.00 0.00 16 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/20/2021 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.000% 6/20/27 $1 PV ON 10.7400 SHARES DUE 12/20/2021 NOVEMBER GNMA DUE 12/20/21 0.0000 0.000000 10.74 0.00 0.00 12/20/2021 36225CNM4 INTEREST EARNED ON G N M A I I #080395 1.875% 4/20/30 $1 PV ON 5.4900 SHARES DUE 12/20/2021 NOVEMBER GNMA DUE 12/20/21 0.0000 0.000000 5.49 0.00 0.00 12/20/2021 36225CN28 INTEREST EARNED ON G N M A I I #080408 1.875% 5/20/30 $1 PV ON 47.0000 SHARES DUE 12/20/2021 NOVEMBER GNMA DUE 12/20/21 0.0000 0.000000 47.00 0.00 0.00 12/20/2021 36225DCB8 INTEREST EARNED ON G N M A I I #080965 1.625% 7/20/34 $1 PV ON 34.2200 SHARES DUE 12/20/2021 NOVEMBER GNMA DUE 12/20/21 0.0000 0.000000 34.22 0.00 0.00 12/20/2021 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON 997.4600 SHARES DUE 12/18/2021 $0.00031/PV ON 3,235,000.00 PV DUE 12/18/21 0.0000 0.000000 997.46 0.00 0.00 12/20/2021 89239CAC3 INTEREST EARNED ON TOYOTA LEASE OWNER 0.420% 10/21/24 $1 PV ON 1114.7500 SHARES DUE 12/20/2021 $0.00035/PV ON 3,185,000.00 PV DUE 12/20/21 0.0000 0.000000 1,114.75 0.00 0.00 12/20/2021 89236TJK2 INTEREST EARNED ON TOYOTA MTR CR MTN 1.125% 6/18/26 $1 PV ON 7285000.0000 SHARES DUE 12/18/2021 0.0000 0.000000 40,978.13 0.00 0.00 12/21/2021 43813GAC5 INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25 $1 PV ON 361.1300 SHARES DUE 12/21/2021 $0.00023/PV ON 1,605,000.00 PV DUE 12/21/21 0.0000 0.000000 361.13 0.00 0.00 12/21/2021 43815GAC3 INTEREST EARNED ON HONDA AUTO REC 0.792% 1/21/26 $1 PV ON 1511.4000 SHARES DUE 12/21/2021 $0.00066/PV ON 2,290,000.00 PV DUE 12/21/21 0.0000 0.000000 1,511.40 0.00 0.00 12/22/2021 912828ZX1 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 6/30/22 0.0000 0.000000 -1,188.86 0.00 0.00 12/22/2021 91282CDG3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 10/31/26 0.0000 0.000000 -6,868.09 0.00 0.00 12/23/2021 CASH RECEIPT INCOMING WIRES WIRE RECEIVED FROM BANK OF CALIFORNIA 0.0000 0.000000 71,000,000.00 0.00 0.00 12/23/2021 CASH RECEIPT INCOMING WIRES WIRE RECEIVED FROM BANK OF CALIFORNIA 0.0000 0.000000 50,000,000.00 0.00 0.00 12/24/2021 166764AH3 INTEREST EARNED ON CHEVRON CORP 3.191% 6/24/23 $1 PV ON 3500000.0000 SHARES DUE 12/24/2021 0.0000 0.000000 55,842.50 0.00 0.00 12/27/2021 03215PFN4 INTEREST EARNED ON AMRESCO 1.06642% 6/25/29 $1 PV ON 105.7700 SHARES DUE 12/25/2021 $0.00089/PV ON 119,021.64 PV DUE 12/25/21 0.0000 0.000000 105.77 0.00 0.00 12/27/2021 09690AAC7 INTEREST EARNED ON BMW VEHICLE LEASE 0.330% 12/26/24 $1 PV ON 569.2500 SHARES DUE 12/25/2021 $0.00027/PV ON 2,070,000.00 PV DUE 12/25/21 0.0000 0.000000 569.25 0.00 0.00 12/27/2021 3137BFE98 INTEREST EARNED ON F H L B GTD REMIC 3.171% 10/25/24 $1 PV ON 13212.5000 SHARES DUE 12/25/2021 $0.00264/PV ON 5,000,000.00 PV DUE 12/25/21 0.0000 0.000000 13,212.50 0.00 0.00 12/27/2021 31394JY35 INTEREST EARNED ON F H L M C MLTCL MT 9.50001% 9/25/43 $1 PV ON 2518.1300 SHARES DUE 12/25/2021 $0.00542/PV ON 464,885.25 PV DUE 12/25/21 0.0000 0.000000 2,518.13 0.00 0.00 12/27/2021 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 25.2500 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 25.25 0.00 0.00 12/27/2021 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 246.3900 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 246.39 0.00 0.00 12/27/2021 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 227.4800 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 227.48 0.00 0.00 12/27/2021 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 3.3000 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 3.30 0.00 0.00 17 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/27/2021 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 337.6500 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 337.65 0.00 0.00 12/27/2021 31406XWT5 INTEREST EARNED ON F N M A #823358 2.013% 2/01/35 $1 PV ON 93.3100 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 93.31 0.00 0.00 12/27/2021 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 46.1500 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 46.15 0.00 0.00 12/27/2021 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 393.4700 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 393.47 0.00 0.00 12/27/2021 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 18.9600 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 18.96 0.00 0.00 12/27/2021 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 32.0400 SHARES DUE 12/25/2021 NOVEMBER FNMA DUE 12/25/21 0.0000 0.000000 32.04 0.00 0.00 12/27/2021 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 61.8000 SHARES DUE 12/25/2021 $0.00064/PV ON 96,063.23 PV DUE 12/25/21 0.0000 0.000000 61.80 0.00 0.00 12/27/2021 931142EK5 INTEREST EARNED ON WALMART INC 3.400% 6/26/23 $1 PV ON 3880000.0000 SHARES DUE 12/26/2021 0.0000 0.000000 65,960.00 0.00 0.00 12/27/2021 78015K7H1 PAID ACCRUED INTEREST ON PURCHASE OF ROYAL BANK OF MTN 1.150% 6/10/25 0.0000 0.000000 -814.58 0.00 0.00 12/28/2021 91282CAC5 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 7/31/22 0.0000 0.000000 -5,095.11 0.00 0.00 12/29/2021 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 51480.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 12/29/2021 31846V567 CASH RECEIPT SHORT-TERM CAPITAL GAIN DIV FIRST AM GOVT OB FD CL Z SHORT TERM CAP GAIN PAYABLE 12/29/21 0.0000 0.000000 250.08 0.00 0.00 12/29/2021 31846V567 CASH RECEIPT SHORT-TERM CAPITAL GAIN DIV FIRST AM GOVT OB FD CL Z SHORT TERM CAP GAIN PAYABLE 12/29/21 0.0000 0.000000 172.23 0.00 0.00 12/29/2021 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 51480.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 51,480.00 0.00 12/29/2021 02665WCZ2 INTEREST EARNED ON AMERICAN HONDA MTN 2.400% 6/27/24 $1 PV ON 1219000.0000 SHARES DUE 12/29/2021 0.0000 0.000000 14,628.00 0.00 0.00 12/29/2021 747525AF0 PAID ACCRUED INTEREST ON PURCHASE OF QUALCOMM INC 3.450% 5/20/25 0.0000 0.000000 -7,475.00 0.00 0.00 12/29/2021 91282CCX7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.375% 9/15/24 0.0000 0.000000 -8,157.80 0.00 0.00 12/29/2021 91282CDG3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 10/31/26 0.0000 0.000000 -13,751.73 0.00 0.00 12/29/2021 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 51480.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 51,480.0000 0.000000 0.00 0.00 0.00 12/29/2021 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 51480.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 12/30/2021 91282CAC5 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 7/31/22 0.0000 0.000000 -2,581.52 0.00 0.00 12/30/2021 91282CAC5 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 7/31/22 0.0000 0.000000 -2,581.52 0.00 0.00 12/30/2021 91282CAC5 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 7/31/22 0.0000 0.000000 -2,581.52 0.00 0.00 18 of 19 U.S. Bank Transaction History 10/01/21 - 12/31/21 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/31/2021 912828ZX1 INTEREST EARNED ON U S TREASURY NT 0.125% 6/30/22 $1 PV ON 7000000.0000 SHARES DUE 12/31/2021 0.0000 0.000000 4,375.00 0.00 0.00 12/31/2021 91282CBC4 INTEREST EARNED ON U S TREASURY NT 0.375% 12/31/25 $1 PV ON 10000000.0000 SHARES DUE 12/31/2021 0.0000 0.000000 18,750.00 0.00 0.00 12/31/2021 912828XX3 INTEREST EARNED ON U S TREASURY NT 2.000% 6/30/24 $1 PV ON 5000000.0000 SHARES DUE 12/31/2021 0.0000 0.000000 50,000.00 0.00 0.00 12/31/2021 912828N30 INTEREST EARNED ON U S TREASURY NT 2.125% 12/31/22 $1 PV ON 5000000.0000 SHARES DUE 12/31/2021 0.0000 0.000000 53,125.00 0.00 0.00 12/31/2021 91282CAC5 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 7/31/22 0.0000 0.000000 -2,598.51 0.00 0.00 TOTAL OTHER TRANSACTIONS -6,844,208.0000 170,563,736.70 -6,844,206.72 0.00 19 of 19 December 31, 2021 Orange County Sanitation District Investment Measurement Service Quarterly Review Information contained herein includes confidential, trade secret and proprietary information. Neither this Report nor any specific information contained herein is to be used other than by the intended recipient for its intended purpose or disseminated to any other person without Callan’s permission. Certain information herein has been compiled by Callan and is based on information provided by a variety of sources believed to be reliable for which Callan has not necessarily verified the accuracy or completeness of or updated. This content may consist of statements of opinion, which are made as of the date they are expressed and are not statements of fact. This content is for informational purposes only and should not be construed as legal or tax advice on any matter. Any decision you make on the basis of this content is your sole responsibility. You should consult with legal and tax advisers before applying any of this information to your particular situation. Past performance is no guarantee of future results. For further information, please see the Appendix section in your investment measurement service quarterly review report for Important Information and Disclosures. Callan Orange County Sanitation District Executive Summary for Period Ending December 31, 2021 Asset Allocation Performance * Current Quarter Target = 80.0% ML 1-5 Govt/Corp and 20.0% FTSE 3mo T-Bills. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Recent Developments During the quarter, $101 million was contributed to the Liquid Operating Monies and $60 million was contributed to the Long Term Operating Fund for a total contribution of $161 million. Organizational Issues N/A Fixed Income Market Snapshot U.S. fixed income returns were literally flat in 4Q (0.0%) and the Bloomberg Aggregate posted an unusual negative result for the calendar year (-1.5%), for only the fourth time since the inception of the Index in 1976. Spread sectors underperformed in 4Q but outperformed for the year. The 10-year U.S. Treasury yield closed the year at 1.52%, up from 0.93% on 12/31/20 but flat over the course of the quarter. TIPS sharply outperformed the Aggregate for the quarter and the year (Bloomberg US TIPS Index: +2.4%; +6.0%) as expectations for inflation rose. The 10- year breakeven spread, which reflects inflation expectations over the next 10 years, was 2.56% as of year-end. The yield-to-worst for the Aggregate Index ended the year at 1.75%. High yield December 31 , 2021 September 30, 2021 Market Value Weight Net New Inv. Inv. Return Market Value Weight Domestic Fixed Income Long Term Operating Fund* 742,070,123 76.27% 60,000,000 (4,451 ,555) 686,521 ,678 84.09% Liguid O[1erating Monies• 230,861,976 23.73% 101,000,000 2,827 129,859,149 15.91% Total Fund $972,932,098 100.0% $161,000,000 $(4,448,728) $81 6,380,826 100.0% Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund" (0.64%) (0.79%) 2.74% 2.20% 1.92% Chandler (0.64%) (0.79%) 2.74% 2.20% 1.92% Blmbg GovUCred 1-5 Year ldx (0.72 %) (0.97%) 2.88% 2.25% 1.97% ML 1-5 GovUCorp (0.69%) (0.87%) 2.92% 2.28% 2.01 % Liquid Operating Monies" (0.00%) 0.1 5% 1.12% 1.23% 0.98% Chandler (0.00%) 0.15% 1.12% 1.23% 0.98% Citigroup 3-Month Treasury Bill 0.01 % 0.05% 0.96% 1.11 % 0.84% Total Fund (0.51%) (0.61%) 2.44% 2.01% 1.71% Target* (0.55%) (0.68%) 2.52% 2.05% 1.78% 2 Orange County Sanitation District corporates were top performers for the quarter and the year (Bloomberg US HY: +0.7%; +5.3%) and the yield-to-worst for this Index was 4.21% as of year-end. Real yields, it goes without saying, are negative for the Aggregate and High Yield indices given the recent surge in inflation. Leveraged loans (S&P LSTA Lev Loan: +0.6%; +5.2%) also did relatively well. Municipals (Bloomberg Municipal Bond Index: +0.7%; +1.5%) outperformed Treasuries for the quarter and the year, boosted by robust demand. In general, lower-quality securities outperformed in 2021 across the fixed income spectrum. Manager Performance The Long Term Operating Fund incurred a loss of 0.64% in the fourth quarter, which marginally outpaced the 0.69% loss of the ICE Govt/Cred 1-5 Year Index. Over the trailing one-year period, the Long Term Operating Fund declined 0.79%, which outpaced the benchmark return of -0.87%. The Fund ranked in the bottom decile among Callan’s Short Term Fixed Income peer group in the fourth quarter and over the trailing year. The Fund’s longer term rankings are mixed. Absolute performance of The Long Term Operating Fund was hindered by rising rates for intermediate maturities and widening credit spreads. However, credit selection was a positive contributor to relative performance, as was an out-of-benchmark exposure to the front end of the yield curve. The portfolio’s allocation to Treasuries increased by 3.1%, while Agencies declined 2.8%. The portfolio duration declined to 2.37 years. The portfolio had less than 30% invested in credit (23%) and less than the permitted 20% invested in the combination of asset- backed securities (6%), commercial mortgage backed securities (0%), and CMOs (1%) as of December 31, 2021 (see page 20). The Liquid Operating Portfolio declined by four basis points (after fees) in the fourth quarter, trailing the Citigroup 3-Month Treasury Bill Index’s return of 0.01%. Over the trailing year, the fund was flat at 0.00%, which trailed the benchmark by five basis points. Cordially, Alex Ford Vice President Callan Table of Contents December 31, 2021 Capital Market Review 1 Active Management Overview Market Overview 7 Domestic Fixed Income 8 Asset Allocation Investment Manager Asset Allocation 10 Investment Manager Returns 11 Asset Class Risk and Return 15 Manager Analysis Chandler-Long Term Operating Fund 17 Chandler-Liquid Operating Money 21 Callan Research/Education 23 Definitions 26 Disclosures 3131 Callan Capital Market Review Russell 3000 Russell 1000 Russell 1000 Growth Russell 1000 Value S&P 500 Russell Midcap Russell 2500 Russell 2000 U.S. Equity: Quarterly Returns 9.3% 9.8% 11.6% 7.8% 11.0% 6.4% 3.8% 2.1% Russell 3000 Russell 1000 Russell 1000 Growth Russell 1000 Value S&P 500 Russell Midcap Russell 2500 Russell 2000 U.S. Equity: One-Year Returns 25.7% 26.5% 27.6% 25.2% 28.7% 22.6% 18.2% 14.8% Source: S&P Dow Jones Indices S&P Sector Returns, Quarter Ended 12/31/21 Last Quarter 0.0% 12.8%13.3% 8.0% 4.6% 11.2% 8.6% 16.7%15.2% 17.5% 12.9% Services Communication Discretionary Consumer Staples Consumer Energy Financials Health Care Industrials Technology Information Materials Real Estate Utilities U.S. EQUITY Returns grind higher despite mounting concerns –S&P 500 posted a strong 11.0% gain in 4Q21; large cap growth (Russell 1000 Growth) was the top performer, which contrasted with the worst-performing asset class, small cap growth (Russell 2000 Growth). –The new Omicron variant, continued supply chain disruptions, and renewed fears of persistent inflation pushed investors into the perceived safety of the largest stocks. –S&P 500 sector results were mixed, with Real Estate (+17.5%) posting the top returns alongside Technology (+16.7%) and Materials (+15.2%); Communication Services (0.0%) and Financials (+4.6%) lagged broad returns. –In 2021, small value outperformed small growth by over 2,500 bps (Russell 2000 Value: 28.3% vs. Russell 2000 Growth: 2.8%), a stark reversal from 2020 and a pattern consistent with periods of robust GDP growth. Index concentration driving positive returns… –The 10 largest stocks in the S&P 500 comprised 30.5% of the index but accounted for 65% of the 2021 return. –During 4Q21, top 10 weights accounted for ~40% of return. …but this may be hiding underlying weakness –Nearly 10% of Russell 3000 stocks fell by 35% or more in 2021, which is unusual for a year when market returns were in excess of 25%. Market capitalization, style driving divergence in returns –Mega-cap growth (Russell Top 200 Growth) was the strongest performer in both 4Q21 and 2021. –Growth style returns highly correlated with market capitalization in both 4Q21 and 2021 (higher market capitalization = high return). –Within micro-, small-, and smid-cap growth, Health Care (especially biotech/pharma) was biggest detractor to returns. –Value returns correlated with market capitalization in 4Q21; for 2021, value returns did not experience much divergence. Capital Markets Overview 4Q21 Sources: FTSE Russell, S&P Dow Jones Indices ■ Callan Capital Markets Overview (continued) 4Q21 MSCI EAFE MSCI ACWI MSCI World MSCI ACWI ex USA MSCI World ex USA MSCI ACWI ex USA SC MSCI World ex USA SC MSCI Europe ex UK MSCI United Kingdom MSCI Pacific ex Japan MSCI Japan MSCI Emerging Markets MSCI China MSCI Frontier Markets Global Equity: Quarterly Returns 2.7% 6.7% 7.8% 1.8% 3.1% 0.6% 0.4% 5.7% 5.6% -0.1% -4.0% -1.3% -6.1% 0.7% MSCI EAFE MSCI ACWI MSCI World MSCI ACWI ex USA MSCI World ex USA MSCI ACWI ex USA SC MSCI World ex USA SC MSCI Europe ex UK MSCI United Kingdom MSCI Pacific ex Japan MSCI Japan MSCI Emerging Markets MSCI China MSCI Frontier Markets Global Equity: One-Year Returns 11.3% 18.5% 21.8% 7.8% 12.6% 12.9% 11.1% 15.7% 18.5% 4.7% 1.7% -2.5% -21.7% 19.7% Source: MSCI GLOBAL EQUITY Omicron takes center stage –A recovery-driven market shifted back to COVID favorites, boosting Information Technology stocks. –Small cap underperformed large amid global growth concerns. –Emerging markets struggled relative to developed markets as China experienced significant pressure from an economic slowdown and its regulatory crackdown. Stalled recovery –As the new variant took hold, Energy and Communication Services lagged on fear of restrained growth. –Japan suffered from both supply chain issues and economic constraints from COVID-19. –Growth and momentum factors outperformed in developed markets but not in emerging markets. U.S. dollar vs. other currencies –The U.S. dollar rose against other major currencies as tapering accelerated alongside the expectation for 2022 rate hikes, which notably detracted from global ex-U.S. results. Growth vs. value –Inflationary pressures and the ultimate rebound from COVID- 19 supported value’s leadership for the full year, despite the shift to growth in 4Q21. Regulation has spooked Chinese market –Although regulation is not new in China, the duration, scope, and intensity of the current regime are unprecedented. –Regulations have been centered on antitrust, financial markets, data/national security, and social welfare to enhance sustainability of its economy. –Regulatory uncertainty should subside as China focuses on implementation. Inflation is expected to normalize in a few years –Forecasted year-over-year core CPI is expected to reach its peak between 1Q22 and 2Q22. –Inflationary environment by and large has shifted central banks to contractionary policy. Rise in inflation expectations tends to stoke value –Correlation between cyclical sectors and inflation/interest rate expectations generally has been positive. –Growth relative to value is more vulnerable as interest rates normalize. –Global recovery from COVID and deficit in Energy should support value. Callan ■ --I ■ I I --I -I -I ---■ -----I I I -- Bloomberg Gov/Cr 1-3 Yr Bloomberg Interm Gov/Cr Bloomberg Aggregate Bloomberg Long Gov/Cr Bloomberg Universal CS Leveraged Loans Bloomberg High Yield Bloomberg TIPS U.S. Fixed Income: Quarterly Returns -0.6% -0.6% 0.0% 2.2% 0.0% 0.7% 0.7% 2.4% Bloomberg Gov/Cr 1-3 Yr Bloomberg Interm Gov/Cr Bloomberg Aggregate Bloomberg Long Gov/Cr Bloomberg Universal CS Leveraged Loans Bloomberg High Yield Bloomberg TIPS U.S. Fixed Income: One-Year Returns -0.5% -1.4% -1.5% -2.5% -1.1% 5.4% 5.3% 6.0% U.S. Treasury Yield Curves U.S. FIXED INCOME Treasury yields again unchanged –10-year at 1.52% at 9/30 and 12/31, up slightly from 1.45% on 6/30. –TIPS outperformed nominal Treasuries and 10-year breakeven spreads widened to 2.56%. –Real yields remain solidly in negative territory. Bloomberg Aggregate was flat, literally –Spread sectors (Agencies, ABS, CMBS, MBS, and Credit) all underperformed UST by a modest amount (but positive YTD). –Yield curve flattened; curve positioning had a meaningful impact on returns in 4Q. High yield and leveraged performed relatively well –Spreads remain near historic tights. –High yield issuers' default rate declined to a record low in December (J.P. Morgan). –New issuance hit a record for the second year in a row as issuers looked to finance at relatively low rates. Munis outperformed Treasuries –Lower-quality bonds continued their trend of outperformance as investors sought yield. Inflation is being felt, indicated by several measures –Annual CPI jumped to 7.0% in December—its eighth consecutive reading above 5% and the largest 12-month increase since the period ending June 1982. –Increases for shelter and for used cars/trucks were the largest contributors to the seasonally adjusted all-items increase. –Even service inflation, which had declined initially, has since recovered and is on an upward trend. Fed has turned more hawkish than expected –Fed announced a doubling of the pace of tapering and an upward revision to the anticipated path of rate hikes. –FOMC participants now expect three rate hikes in 2022 to bring the targeted range to 0.75%-1.0% by year-end. Spreads have returned to tights –Fundamentals remain strong and default expectations low. –Revenue, profits, and free cash flow at or near cycle highs. –Gross and net leverage trending lower while interest coverage trends higher. Capital Markets Overview (continued) 4Q21 Sources: Bloomberg, Credit Suisse 0% 1% 2% 3% 0 5 10 15 20 25 30 Maturity (Years) 12/31/2021 09/30/2021 12/31/2020 Callan I I I I ■ ■ I I I ■ I -- Bloomberg Global Aggregate Bloomberg Global Agg (hdg) Bloomberg Global High Yield Bloomberg Global Agg ex US JPM EMBI Global Diversified JPM GBI-EM Global Diversified JPM EMBI Gl Div/JPM GBI-EM Gl Div JPM CEMBI Global Fixed Income: Quarterly Returns -0.9% 0.1% -0.4% -1.6% -0.7% -3.1% -1.9% -0.3% Bloomberg Global Aggregate Bloomberg Global Agg (hdg) Bloomberg Global High Yield Bloomberg Global Agg ex US JPM EMBI Global Diversified JPM GBI-EM Global Diversified JPM EMBI Gl Div/JPM GBI-EM Gl Div JPM CEMBI Global Fixed Income: One-Year Returns -4.7% -1.4% 1.0% -7.0% -1.8% -8.7% -5.3% -0.6% Change in 10-Year Global Government Bond Yields GLOBAL FIXED INCOME Global fixed income flat on a hedged basis –Returns were muted and U.S. dollar strength eroded returns for unhedged U.S. investors in both 4Q and 2021. –Yen was a notable underperformer in developed markets, falling 10% for the year. Emerging market debt posted negative returns –Emerging market debt indices underperformed most other fixed income sectors in 2021. –Currencies fared the worst vs. the U.S. dollar; the Turkish lira sank 44% on spiking inflation. Global outlook may shift lower with regional variance –Moderating and differentiated outlook for various regions reflects certain DM and EM economies shifting to tightening balanced by others managing legacy issues. Central bank policy is mixed –The U.K. has led the way with interest rate hikes as the BOE expects inflation to peak in April 2022. –Europe and Japan continue to have below-target inflation and are expected to maintain relatively accommodating monetary policy. –EM central banks, having moved early to battle inflation, may be moving to a more late-cycle posture. Capital Markets Overview (continued) 4Q21 Sources: Bloomberg, JP Morgan 2 bps 2 bps -5 bps -8 bps 0 bps -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 U.S. Treasury Germany U.K. Canada Japan 3Q21 to 4Q21 Callan • I I -I --I -- Active Management Overview Market Overview Active Management vs Index Returns Market Overview The charts below illustrate the range of returns across managers in Callan’s Separate Account database over the most recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in returns across those asset classes. An appropriate index is also shown for each asset class for comparison purposes. As an example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter. The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the Large Cap Equity manager database. Range of Separate Account Manager Returns by Asset Class One Quarter Ended December 31, 2021 Re t u r n s (4%) (2%) 0% 2% 4% 6% 8% 10% 12% 14% Large Cap Small Cap Non-US Domestic Non-US Real Equity Equity Equity Fixed Income Fixed Income Estate vs vs vs vs vs vs S&P 500 Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi Non-US Govt NCREIF Index (15) (83)(41) (39) (79) (14) 10th Percentile 11.58 8.10 4.82 0.17 (1.07)6.59 25th Percentile 10.12 6.87 3.51 0.07 (1.19)5.02 Median 8.74 5.38 2.30 (0.03)(1.29)4.46 75th Percentile 7.11 3.73 0.99 (0.12)(1.71)4.1490th Percentile 5.28 (0.77)(0.33)(0.18)(2.14)2.79 Index 11.03 2.14 2.69 0.01 (1.98)6.15 Range of Separate Account Manager Returns by Asset Class One Year Ended December 31, 2021 Re t u r n s (20%) (10%) 0% 10% 20% 30% 40% 50% Large Cap Small Cap Non-US Domestic Non-US Real Equity Equity Equity Fixed Income Fixed Income EstatevsvsvsvsvsvsS&P 500 Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi Non-US Govt NCREIF Index (37) (78)(52) (88) (92) (32) 10th Percentile 31.91 35.22 15.41 (0.30)(6.36)23.13 25th Percentile 29.90 29.81 13.62 (0.70)(6.42)18.90Median26.82 23.50 11.41 (1.04)(6.63)15.72 75th Percentile 23.19 15.90 8.02 (1.39)(8.40)10.12 90th Percentile 19.50 7.75 5.74 (1.59)(9.65)6.80 Index 28.71 14.82 11.26 (1.54)(9.68)17.70 7Orange County Sanitation District [j § • • j ~ - § [j ~ ~ - ~ Callan Domestic Fixed Income Active Management Overview U.S. fixed income returns were literally flat in 4Q (0.0%) and the Bloomberg Aggregate posted an unusual negative result for the calendar year (-1.5%), for only the fourth time since the inception of the Index in 1976. Spread sectors underperformed in 4Q but outperformed for the year. The 10-year U.S. Treasury yield closed the year at 1.52%, up from 0.93% on 12/31/20 but flat over the course of the quarter. TIPS sharply outperformed the Aggregate for the quarter and the year (Bloomberg US TIPS Index: +2.4%; +6.0%) as expectations for inflation rose. High yield corporates were top performers for the quarter and the year (Bloomberg US HY: +0.7%; +5.3%) and the yield-to-worst for this Index was 4.21% as of year-end. Leveraged loans (S&P LSTA Lev Loan: +0.6%; +5.2%) also did relatively well.^L Separate Account Style Group Median Returns for Quarter Ended December 31, 2021 (1.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% (0.48 ) Defensive (0.52 ) Intermed (0.03 ) Core Bond 0.06 Core Plus 2.02 Extended Maturity 0.75 Bank Loans 0.80 High Yield Re t u r n s Blmbg Aggregate:0.01% Blmbg High Yield:0.71% Blmbg Long Gov/Cred: 2.15% Separate Account Style Group Median Returns for One Year Ended December 31, 2021 (4%) (2%) 0% 2% 4% 6% 8% (0.22 ) Defensive (1.19 ) Intermed (1.04 ) Core Bond (0.24 ) Core Plus (2.11 ) Extended Maturity 5.13 Bank Loans 5.46 High Yield Re t u r n s Blmbg Aggregate:(1.54%) Blmbg High Yield:5.28% Blmbg Long Gov/Cred:(2.52%) 8Orange County Sanitation DistrictCallan Asset Allocation Investment Manager Asset Allocation The table below contrasts the distribution of assets across the Fund’s investment managers as of December 31, 2021, with the distribution as of September 30, 2021. The change in asset distribution is broken down into the dollar change due to Net New Investment and the dollar change due to Investment Return. Asset Distribution Across Investment Managers December 31, 2021 September 30, 2021 Market Value Weight Net New Inv. Inv. Return Market Value Weight Domestic Fixed Income Long Term Operating Fund*742,070,123 76.27% 60,000,000 (4,451,555)686,521,678 84.09% Liquid Operating Monies*230,861,976 23.73% 101,000,000 2,827 129,859,149 15.91% Total Fund $972,932,098 100.0% $161,000,000 $(4,448,728)$816,380,826 100.0% *Chandler replaced PIMCO during the 4th quarter of 2014. Assets were transferred in-kind as of 12/01/2014. 10Orange County Sanitation DistrictCallan Investment Manager Returns The table below details the rates of return for the Fund’s investment managers over various time periods ended December 31, 2021. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class. Returns for Periods Ended December 31, 2021 Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund^(0.64%) (0.79%)2.74% 2.20% 1.92% Chandler (0.64%) (0.79%)2.74% 2.20% 1.92% Blmbg Govt/Cred 1-5 Year Idx (0.72%) (0.97%)2.88% 2.25% 1.97% ML 1-5 Govt/Corp (0.69%) (0.87%)2.92% 2.28% 2.01% Liquid Operating Monies^(0.00%)0.15% 1.12% 1.23% 0.98% Chandler (0.00%)0.15% 1.12% 1.23% 0.98% Citigroup 3-Month Treasury Bill 0.01% 0.05% 0.96% 1.11% 0.84% Total Fund (0.51%) (0.61%)2.44% 2.01% 1.71% Target*(0.55%) (0.68%)2.52% 2.05% 1.78% * Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. 11Orange County Sanitation DistrictCallan Investment Manager Returns The table below details the rates of return for the Fund’s investment managers over various time periods ended December 31, 2021. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class. Returns for Periods Ended December 31, 2021 Last Last Last 10 15 26-1/4 Years Years Years Domestic Fixed Income Long Term Operating Fund^1.66%2.90%4.04% Blmbg Govt/Cred 1-5 Year Idx 1.77%2.78%3.89% ML 1-5 Govt/Corp 1.84%2.82%3.92% Liquid Operating Monies^0.72%1.06%2.41% Citigroup 3-Month Treasury Bill 0.60%0.85%2.13% Total Fund 1.49%2.54%3.78% Target*1.59%2.42%3.56% * Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. 12Orange County Sanitation DistrictCallan Investment Manager Returns The table below details the rates of return for the Fund’s investment managers over various time periods. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class. 2021 2020 2019 2018 2017 Domestic Fixed Income Long Term Operating Fund^(0.79%)4.42% 4.70% 1.60% 1.18% Chandler (0.79%)4.42% 4.70% 1.60% 1.18% Blmbg Govt/Cred 1-5 Year Idx (0.97%)4.71% 5.01% 1.38% 1.27% ML 1-5 Govt/Corp (0.87%)4.65% 5.08% 1.40% 1.28% Liquid Operating Monies^0.15% 0.84% 2.39% 1.90% 0.91% Chandler 0.15% 0.84% 2.39% 1.90% 0.91% Citigroup 3-Month Treasury Bill 0.05% 0.58% 2.25% 1.86% 0.84% Total Fund (0.61%)3.73% 4.26% 1.72% 1.02% Target*(0.68%)3.82% 4.51% 1.49% 1.19% * Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. 13Orange County Sanitation DistrictCallan Investment Manager Returns The table below details the rates of return for the Fund’s investment managers over various time periods. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund’s accounts for that asset class. 2016 2015 2014 2013 2012 Domestic Fixed Income Long Term Operating Fund^1.58% 0.85% 1.98%(1.77%)3.06% Blmbg Govt/Cred 1-5 Year Idx 1.56% 0.97% 1.42% 0.28% 2.24% ML 1-5 Govt/Corp 1.62% 1.05% 1.51% 0.32% 2.47% Liquid Operating Monies^0.47% 0.22% 0.09% 0.13% 0.17% Citigroup 3-Month Treasury Bill 0.27% 0.03% 0.03% 0.05% 0.07% Total Fund 1.15% 0.80% 1.73%(1.49%)2.70% Target*1.35% 0.85% 1.21% 0.26% 1.99% * Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. 14Orange County Sanitation DistrictCallan Asset Class Risk and Return The charts below show the seven year annualized risk and return for each asset class component of the Total Fund. The first graph contrasts these values with those of the appropriate index for each asset class. The second chart contrasts them with the risk and return of the median portfolio in each of the appropriate CAI comparative databases. In each case, the crosshairs on the chart represent the return and risk of the Total Fund. Seven Year Annualized Risk vs Return Asset Classes vs Benchmark Indices 0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2.2% Total Fund ICE Corp/Gov 1-5 Yr FTSE 3 Mo T-Bill Total Fund Target Blmbg Gov/Cred 1-5 Yr Standard Deviation Re t u r n s Seven Year Annualized Risk vs Return Asset Classes vs Asset Class Median 0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2.2% Total Fund Callan Money Market Funds Callan Short Fixed Inc Standard Deviation Re t u r n s 15Orange County Sanitation DistrictCallan Manager Analysis Long Term Operating Fund Period Ended December 31, 2021 Investment Philosophy Chandler Asset Management’s Short Term Bond strategy is driven by quantitative models and focuses on active duration management, sector selection and term structure. The strategy seeks to achieve consistent above-benchmark returns with low volatility relative to the style’s performance benchmark. The firm has a unique focus on high quality fixed income management, and places risk control as a higher objective than return. Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Quarterly Summary and Highlights Long Term Operating Fund’s portfolio posted a (0.64)% return for the quarter placing it in the 93 percentile of the Callan Short Term Fixed Income group for the quarter and in the 92 percentile for the last year. Long Term Operating Fund’s portfolio outperformed the ICE Corp/Gov 1-5 Yr by 0.05% for the quarter and outperformed the ICE Corp/Gov 1-5 Yr for the year by 0.08%. Quarterly Asset Growth Beginning Market Value $686,521,678 Net New Investment $60,000,000 Investment Gains/(Losses) $-4,451,555 Ending Market Value $742,070,123 Performance vs Callan Short Term Fixed Income (Gross) (2%) (1%) 0% 1% 2% 3% 4% 5% Last Quarter Last Last 3 Years Last 5 Years Last 7 Years Last 7 Years Last 10 Years Last 26-1/4 Year Years A(93) B(97)(94)A(92)B(99)(96) B(42)A(52)(40) B(52)A(61)(50)B(59)A(61)(53)B(59)A(61)(53)B(60) A(71)(57) A(16)B(32)(31) 10th Percentile (0.29)0.73 3.46 2.77 2.53 2.53 2.58 4.24 25th Percentile (0.42)0.10 3.12 2.59 2.35 2.35 2.24 3.96 Median (0.48) (0.22)2.75 2.28 2.03 2.03 1.91 3.74 75th Percentile (0.52) (0.45)2.47 2.08 1.82 1.82 1.64 3.55 90th Percentile (0.60) (0.73)2.16 1.85 1.59 1.59 1.34 3.23 Long Term Operating Fund A (0.64) (0.79)2.74 2.20 1.92 1.92 1.66 4.04 Blmbg Govt/Cred 1-5 Year Idx B (0.72) (0.97)2.88 2.25 1.97 1.97 1.77 3.89 ICE Corp/Gov 1-5 Yr (0.69) (0.87)2.92 2.28 2.01 2.01 1.84 3.92 Relative Return vs ICE Corp/Gov 1-5 Yr Re l a t i v e R e t u r n s (0.8%) (0.6%) (0.4%) (0.2%) 0.0% 0.2% 0.4% 0.6% 0.8% 2015 2016 2017 2018 2019 2020 2021 Long Term Operating Fund Callan Short Term Fixed Income (Gross) Annualized Seven Year Risk vs Return 0 1 2 3 4 5 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Long Term Operating Fund ICE Corp/Gov 1-5 Yr Blmbg Govt/Cred 1-5 Year Idx Standard Deviation Re t u r n s 17Orange County Sanitation District • • Callan • ■ Long Term Operating Fund Return Analysis Summary Return Analysis The graphs below analyze the manager’s return on both a risk-adjusted and unadjusted basis. The first chart illustrates the manager’s ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager’s ranking relative to their style using various risk-adjusted return measures. Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Performance vs Callan Short Term Fixed Income (Gross) (3%)(2%)(1%)0%1%2%3%4%5%6%7% 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 A(92)B(99)96 B(23) A(35)24 B(21)A(34)19 A(65)B(87)87 B(58)A(65)57 A(49)B(50)47 B(35) A(63)24 A(4)B(17)10 B(90) A(100) 89 A(21) B(38)27 10th Percentile 0.73 5.10 5.47 2.00 2.29 2.79 1.17 1.50 1.20 4.4625th Percentile 0.10 4.59 4.94 1.82 1.74 2.17 1.01 1.27 0.80 2.60 Median (0.22)3.93 4.52 1.69 1.31 1.56 0.91 1.11 0.65 1.81 75th Percentile (0.45)3.51 4.10 1.54 0.95 1.18 0.76 0.87 0.40 1.45 90th Percentile (0.73)2.44 3.59 1.33 0.66 1.04 0.62 0.73 0.29 0.92 Long Term Operating Fund A (0.79)4.42 4.70 1.60 1.18 1.58 0.85 1.98 (1.77)3.06 Blmbg Govt/Cred 1-5 Year Idx B (0.97)4.71 5.01 1.38 1.27 1.56 0.97 1.42 0.28 2.24 ICE Corp/Gov 1-5 Yr (0.87)4.65 5.08 1.40 1.28 1.62 1.05 1.51 0.32 2.47 Cumulative and Quarterly Relative Return vs ICE Corp/Gov 1-5 Yr Re l a t i v e R e t u r n s (3.0%) (2.5%) (2.0%) (1.5%) (1.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Long Term Operating Fund Blmbg Govt/Cred 1-5 Year Idx Callan Short Fixed Inc Risk Adjusted Return Measures vs ICE Corp/Gov 1-5 Yr Rankings Against Callan Short Term Fixed Income (Gross) Seven Years Ended December 31, 2021 (0.8) (0.6) (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Alpha Sharpe Excess Return Ratio Ratio A(90)B(97) A(79)B(82) A(69) B(82) 10th Percentile 0.90 0.98 0.43 25th Percentile 0.67 0.91 0.24 Median 0.37 0.82 0.01 75th Percentile 0.17 0.71 (0.32)90th Percentile 0.05 0.61 (0.59) Long Term Operating Fund A 0.04 0.68 (0.25) Blmbg Govt/Cred 1-5 Year Idx B (0.06)0.65 (0.40) 18Orange County Sanitation DistrictCallan • ■ ... I ■ • • I -c--------------I 0 I • ■ u ~ >-------------- • ■ Long Term Operating Fund Bond Characteristics Analysis Summary Portfolio Characteristics This graph compares the manager’s portfolio characteristics with the range of characteristics for the portfolios which make up the manager’s style group. This analysis illustrates whether the manager’s current holdings are consistent with other managers employing the same style. Fixed Income Portfolio Characteristics Rankings Against Callan Short Term Fixed Income as of December 31, 2021 (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Average Effective Coupon OA Duration Life Yield Rate Convexity (10)(3)(39) (23) (72) (69) (33) (6) 10th Percentile 2.35 3.01 2.02 2.35 0.05 25th Percentile 2.03 2.71 1.55 1.92 0.04 Median 1.80 2.18 1.15 1.73 0.01 75th Percentile 1.60 1.92 1.00 1.35 (0.05) 90th Percentile 1.15 1.58 0.74 1.03 (0.25) Long Term Operating Fund 2.37 2.42 -1.44 - ICE Corp/Gov 1-5 Yr 2.60 2.72 1.03 1.86 0.08 Sector Allocation and Quality Ratings The first graph compares the manager’s sector allocation with the average allocation across all the members of the manager’s style. The second graph compares the manager’s weighted average quality rating with the range of quality ratings for the style. Sector Allocation December 31, 2021 0%10%20%30%40%50%60%70%80% US Trsy 34.929.4 65.2 Corp (incl 144A) 22.6 50 % Mg r M V 50 % Mg r M V 48.725.6 Gov Related 21.81.9 9.2 Other 11.8 ABS 6.0 13.2 Cash 2.01.0 CMOs 0.80.3 CMBS 0.1 5.1 RMBS 0.4 Long Term Operating Fund Callan Short Term Fixed Income ICE Corp/Gov 1-5 Yr Quality Ratings vs Callan Short Term Fixed Income A- A A+ AA- AA AA+ AAA Trsy Weighted Average Quality Rating (13) (14) 10th Percentile AA+ 25th Percentile AA Median AA 75th Percentile A 90th Percentile A Long TermOperating Fund AA+ ICE Corp/Gov 1-5 Yr AA 19Orange County Sanitation DistrictCallan -~ -J,. -§ B - - - - -~111111111111111----------=1 ~~-~1 ■ ~ • J,. Long Term Operating Fund Portfolio Characteristics Summary As of December 31, 2021 Portfolio Structure Comparison The charts below compare the structure of the portfolio to that of the index from the three perspectives that have the greatest influence on return. The first chart compares the two portfolios across sectors. The second chart compares the duration distribution. The last chart compares the distribution across quality ratings. Sector Allocation Long Term Operating Fund US Trsy 35% CMBS 0% Corp (incl 144A) 23% CMOs 1%Gov Related 22% Cash2% Other12% ABS 6% ML:Corp/Gov 1-5 Yr US Trsy 65% Gov Related 9% Corp (incl 144A) 26% Duration Distribution 0% 10% 20% 30% 40% 50% 60% 70% 80% <1 17.0 1.9 1-3 48.4 59.4 3-5 34.6 38.7 5-7 0.0 0.0 7-10 0.0 0.0 >10 0.0 0.0 Years Duration Pe r c e n t o f P o r t f o l i o Weighted Average:Duration Long Term Operating Fund: ML:Corp/Gov 1-5 Yr: 2.37 2.60 Quality Distribution 0% 20% 40% 60% 80% 100% AAA 17.2 70.8 AA 62.7 4.4 A 14.9 12.3 BBB 1.3 12.5 BB 0.0 0.0 B 0.0 0.0 CCC 0.0 0.0 CC 0.0 0.0 C 0.0 0.0 N/R 3.9 0.0 Quality Rating Pe r c e n t o f P o r t f o l i o Weighted Average:Quality Long Term Operating Fund: ML:Corp/Gov 1-5 Yr: AA+ AA 20Orange County Sanitation District ■ ~--~--~---~--~--------,■ ■ ~-~-~-~-~-~-~-------,-------1 ■ Callan Chandler-Liquid Operating Money Period Ended December 31, 2021 Investment Philosophy Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Quarterly Summary and Highlights Liquid Operating Money Net’s portfolio posted a (0.04)% return for the quarter placing it in the 74 percentile of the Callan Money Market Funds group for the quarter and in the 88 percentile for the last year. Liquid Operating Money Net’s portfolio underperformed the Citigroup 3-Month Treasury Bill by 0.05% for the quarter and underperformed the Citigroup 3-Month Treasury Bill for the year by 0.05%. Quarterly Asset Growth Beginning Market Value $129,859,149 Net New Investment $101,000,000 Investment Gains/(Losses)$2,827 Ending Market Value $230,861,976 Performance vs Callan Money Market Funds (Net) (1.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Last Quarter Last Last 3 Years Last 5 Years Last 7 Years Last 7 Years Last 10 Years Last 26-1/4 Year Years (74)(10)(88)(22) (29)(30)(32)(29) (28)(28)(28)(28) (26)(24) (12)(22) 10th Percentile 0.01 0.21 1.76 1.62 1.45 1.45 1.26 2.42 25th Percentile 0.00 0.03 1.11 1.20 0.87 0.87 0.59 2.11 Median 0.00 0.01 0.77 0.90 0.65 0.65 0.45 1.97 75th Percentile (0.07)0.01 0.68 0.77 0.56 0.56 0.39 1.87 90th Percentile (0.23) (0.03)0.60 0.67 0.49 0.49 0.34 1.76 Liquid Operating Money Net (0.04) (0.00)0.97 1.08 0.83 0.83 0.57 2.26 Citigroup 3-Month Treasury Bill 0.01 0.05 0.96 1.11 0.84 0.84 0.60 2.13 Relative Returns vs Citigroup 3-Month Treasury Bill Re l a t i v e R e t u r n s (0.20%) (0.10%) 0.00% 0.10% 0.20% 0.30% 0.40% 2015 2016 2017 2018 2019 2020 2021 Liquid Operating Money Net Callan Money Market Funds (Net) Annualized Seven Year Risk vs Return 0 1 2 3 4 5 6 7 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Citigroup 3-Month Treasury Bill Liquid Operating Money Net Standard Deviation Re t u r n s 21Orange County Sanitation District • • - ~ 8 B g Q g G:::::::l L___J • Callan Liquid Operating Money Net Return Analysis Summary Return Analysis The graphs below analyze the manager’s return on both a risk-adjusted and unadjusted basis. The first chart illustrates the manager’s ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager’s ranking relative to their style using various risk-adjusted return measures. Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Performance vs Callan Money Market Funds (Net) (0.5%) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 8822 2426 2827 2312 3530 3033 2236 9822 9820 4424 10th Percentile 0.21 1.70 3.20 1.89 1.42 1.32 0.28 0.35 0.30 0.85 25th Percentile 0.03 0.62 2.32 1.72 0.91 0.40 0.06 0.03 0.04 0.06 Median 0.01 0.34 1.96 1.53 0.61 0.14 0.01 0.01 0.01 0.01 75th Percentile 0.01 0.27 1.76 1.31 0.42 0.04 0.01 0.01 0.01 0.0190th Percentile (0.03)0.19 1.50 1.07 0.23 0.01 0.00 0.00 0.00 0.00 Liquid Operating Money Net (0.00)0.69 2.24 1.75 0.76 0.32 0.07 (0.06) (0.02)0.02 Citigroup 3-Month Treasury Bill 0.05 0.58 2.25 1.86 0.84 0.27 0.03 0.03 0.05 0.07 Cumulative and Quarterly Relative Return vs Citigroup 3-Month Treasury Bill Re l a t i v e R e t u r n s (1.4%) (1.2%) (1.0%) (0.8%) (0.6%) (0.4%) (0.2%) 0.0% 0.2% 0.4% 0.6% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Liquid Operating Money Net Callan Money Market Funds Risk Adjusted Return Measures vs Citigroup 3-Month Treasury Bill Rankings Against Callan Money Market Funds (Net) Seven Years Ended December 31, 2021 (4) (3) (2) (1) 0 1 2 Alpha Sharpe Excess Return Ratio Ratio (33)(28)(28) 10th Percentile 1.11 0.43 0.50 25th Percentile 0.13 0.01 0.17 Median (0.18)(0.54)(2.27) 75th Percentile (0.27)(0.86)(2.75) 90th Percentile (0.35)(1.22)(2.87) Liquid Operating Money Net (0.05)(0.09)(0.07) 22Orange County Sanitation District • I ■ ■ - I I I . I I •1 • - - - • Callan Callan Research/Education Quarterly Highlights The Callan Institute provides research to update clients on the latest industry trends and carefully structured educational programs to enhance the knowledge of industry professionals. Visit www.callan.com/research-library to see all of our publications, and www.callan.com/blog to view our blog. For more information contact Barb Gerraty at 415-274-3093 / institute@callan.com. New Research from Callan’s Experts 2021 Investment Management Fee Study | The purpose of this study, the ninth we have done, is to provide a detailed analysis on institutional investment management fee levels and trends across multiple asset classes and mandate sizes, for both active and pas- sive management. 2021 Nuclear Decommissioning Funding Study | This study of- fers key insights into the status of nuclear decommissioning fund- ing to make peer comparisons more accurate and relevant. 2021 Private Equity Fees and Terms Study | This study is in- tended to help institutional investors better evaluate private equity funds, serving as an industry benchmark when comparing a part- nership’s terms to its peers. 2021 Cost of Doing Business Survey | In this survey, Callan com- pares the costs of administering and operating funds across all types of tax-exempt and tax-qualified organizations in the U.S. We identify practices to help institutional investors manage expenses. A Guide to Reinsurance for Institutional Investors | Reinsurance investments are a potential option for institutional investors looking to diversify both equity and rate risks while also offering attractive risk-adjusted returns. Sean Lee examines how insurance-linked se- curities can be incorporated into institutional investors’ portfolios. 2021 ESG Survey | Callan’s ninth annual survey assessing the status of environmental, social, and governance (ESG) investing in the U.S. institutional investment market. Blog Highlights Rising Rates! Why the Heck Do We Own Bonds? | Investment grade bonds spin off yield and participate in rising rate mar- kets through principal reinvestment, and their return distribution provides downside protection that counter-balances growth-ori- ented portfolio investments. Despite frustratingly low expected re- turns, IG bonds can still contribute meaningfully to the long-term investment goals of most institutional investors. Understanding Return Forecasts for Public DB Plans | It is important for decision makers to understand that actuaries and investment consultants offer assumptions on expected return that are inherently different: Actuarial discount rates assume a static return over time with no variability, whereas investment consul- tants estimate a median and a range of expected returns based on expected risk. Quarterly Periodicals Private Equity Trends, 3Q21 | A high-level summary of private equity activity in the quarter through all the investment stages Active vs. Passive Charts, 3Q21 | A comparison of active man- agers alongside relevant benchmarks over the long term Market Pulse Flipbook, 3Q21 | A quarterly market reference guide covering trends in the U.S. economy, developments for insti- tutional investors, and the latest data on the capital markets Capital Markets Review, 3Q21 | Analysis and a broad overview of the economy and public and private market activity each quar- ter across a wide range of asset classes Hedge Fund Quarterly, 3Q21 | Commentary on developments for hedge funds and multi-asset class (MAC) strategies Real Assets Reporter, 3Q21 | A summary of market activity for real assets and private real estate during the quarter Education 4th Quarter 2021 I~ ~Callan Institute Research I Education I Dialogue Events A complete list of all upcoming events can be found on our web- site: callan.com/events-education. Please mark your calendar and look forward to upcoming invitations: 2022 DC Survey Results Webinar February 23, 2022 – 9:30 am (PT) National Conference April 25-27, 2022, in San Francisco For more information about events, please contact Barb Gerraty: 415-274-3093 / gerraty@callan.com Education Founded in 1994, the “Callan College” offers educational sessions for industry professionals involved in the investment decision-mak- ing process. Introduction to Investments March 1-3, 2022 – Virtual This program familiarizes institutional investor trustees and staff and asset management advisers with basic investment theory, ter- minology, and practices. Our virtual session is held over three days with virtual modules of 2.5-3 hours, while the in-person session lasts one-and-a-half days. This course is designed for individuals with less than two years of experience with asset-management oversight and/or support responsibilities. Virtual tuition is $950 per person and includes instruction and digital materials. In-person tuition is $2,350 per person and includes instruction, all materials, breakfast and lunch on each day, and dinner on the first evening with the instructors. Additional information including registration can be found at: callan.com/events/ccintro-march/ Introductory Workshop for DC Plan Fiduciaries March 23, 2022 – San Francisco This one-day workshop centers on the fundamentals of administer- ing a defined contribution (DC) plan. Designed primarily for ERISA fiduciaries and supporting staff members, attendees will gain a bet- ter understanding of the key responsibilities of an ERISA fiduciary and best practices for executing those responsibilities. Additionally, we will cover the basics of capital markets theory and DC invest- ment menu design principles; investment manager evaluation, se- lection, and monitoring; best practices for evaluating fees; the regu- latory and legal landscape; and industry trends. This workshop is complimentary and open to institutional investor clients. Additional information including dates and registration can be found at: callan.com/events/mar-dc-college/ Unique pieces of research the Institute generates each year50+ Total attendees of the “Callan College” since 19943,700 Attendees (on average) of the Institute’s annual National Conference525 Education: By the Numbers @CallanLLC Callan “Research is the foundation of all we do at Callan, and sharing our best thinking with the investment community is our way of helping to foster dialogue to raise the bar across the industry.” Greg Allen, CEO and Chief Research Officer Callan Institute Definitions Risk/Reward Statistics The risk statistics used in this report examine performance characteristics of a manager or a portfolio relative to a benchmark (market indicator) which assumes to represent overall movements in the asset class being considered. The main unit of analysis is the excess return, which is the portfolio return minus the return on a risk free asset (3 month T-Bill). Alpha measures a portfolio’s return in excess of the market return adjusted for risk. It is a measure of the manager’s contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively rewarded for the residual risk which was taken for that level of market exposure. Beta measures the sensitivity of rates of portfolio returns to movements in the market index. A portfolio’s beta measures the expected change in return per 1% change in the return on the market. If a beta of a portfolio is 1.5, a 1 percent increase in the return on the market will result, on average, in a 1.5 percent increase in the return on the portfolio. The converse would also be true. Downside Risk stems from the desire to differentiate between "good risk" (upside volatility) and "bad risk" (downside volatility). Whereas standard deviation punishes both upside and downside volatility, downside risk measures only the standard deviation of returns below the target. Returns above the target are assigned a deviation of zero. Both the frequency and magnitude of underperformance affect the amount of downside risk. Excess Return Ratio is a measure of risk adjusted relative return. This ratio captures the amount of active management performance (value added relative to an index) per unit of active management risk (tracking error against the index.) It is calculated by dividing the manager’s annualized cumulative excess return relative to the index by the standard deviation of the individual quarterly excess returns. The Excess Return Ratio can be interpreted as the manager’s active risk/reward tradeoff for diverging from the index when the index is mandated to be the "riskless" market position. Information Ratio measures the manager’s market risk-adjusted excess return per unit of residual risk relative to a benchmark. It is computed by dividing alpha by the residual risk over a given time period. Assuming all other factors being equal, managers with lower residual risk achieve higher values in the information ratio. Managers with higher information ratios will add value relative to the benchmark more reliably and consistently. R-Squared indicates the extent to which the variability of the portfolio returns are explained by market action. It can also be thought of as measuring the diversification relative to the appropriate benchmark. An r-squared value of .75 indicates that 75% of the fluctuation in a portfolio return is explained by market action. An r-squared of 1.0 indicates that a portfolio’s returns are entirely related to the market and it is not influenced by other factors. An r-squared of zero indicates that no relationship exists between the portfolio’s return and the market. Relative Standard Deviation is a simple measure of a manager’s risk (volatility) relative to a benchmark. It is calculated by dividing the manager’s standard deviation of returns by the benchmark’s standard deviation of returns. A relative standard deviation of 1.20, for example, means the manager has exhibited 20% more risk than the benchmark over that time period. A ratio of .80 would imply 20% less risk. This ratio is especially useful when analyzing the risk of investment grade fixed-income products where actual historical durations are not available. By using this relative risk measure over rolling time periods one can illustrate the "implied" historical duration patterns of the portfolio versus the benchmark. Residual Portfolio Risk is the unsystematic risk of a fund, the portion of the total risk unique to the fund (manager) itself and not related to the overall market. This reflects the "bets" which the manager places in that particular asset market. These bets may reflect emphasis in particular sectors, maturities (for bonds), or other issue specific factors which the manager considers a good investment opportunity. Diversification of the portfolio will reduce or eliminate the residual risk of that portfolio. 27Callan Risk/Reward Statistics Rising Declining Periods refer to the sub-asset class cycles vis-a-vis the broader asset class. This is determined by evaluating the cumulative relative sub-asset class index performance to that of the broader asset class index. For example, to determine the Growth Style cycle, the S&P 500 Growth Index (sub-asset class) performance is compared to that of the S&P 500 Index (broader asset class). Sharpe Ratio is a commonly used measure of risk-adjusted return. It is calculated by subtracting the "risk-free" return (usually 3 Month Treasury Bill) from the portfolio return and dividing the resulting "excess return" by the portfolio’s risk level (standard deviation). The result is a measure of return gained per unit of risk taken. Sortino Ratio is a downside risk-adjusted measure of value-added. It measures excess return over a benchmark divided by downside risk. The natural appeal is that it identifies value-added per unit of truly bad risk. The danger of interpretation, however, lies in these two areas: (1) the statistical significance of the denominator, and (2) its reliance on the persistence of skewness in return distributions. Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their sample mean. Standard deviation is used as an estimate of risk since it measures how wide the range of returns typically is. The wider the typical range of returns, the higher the standard deviation of returns, and the higher the portfolio risk. If returns are normally distributed (ie. has a bell shaped curve distribution) then approximately 2/3 of the returns would occur within plus or minus one standard deviation from the sample mean. Total Portfolio Risk is a measure of the volatility of the quarterly excess returns of an asset. Total risk is composed of two measures of risk: market (non-diversifiable or systematic) risk and residual (diversifiable or unsystematic) risk. The purpose of portfolio diversification is to reduce the residual risk of the portfolio. Tracking Error is a statistical measure of a portfolio’s risk relative to an index. It reflects the standard deviation of a portfolio’s individual quarterly or monthly returns from the index’s returns. Typically, the lower the Tracking Error, the more "index-like" the portfolio. Treynor Ratio represents the portfolio’s average excess return over a specified period divided by the beta relative to its benchmark over that same period. This measure reflects the reward over the risk-free rate relative to the systematic risk assumed. Note: Alpha, Total Risk, and Residual Risk are annualized. 28Callan Fixed Income Portfolio Characteristics All Portfolio Characteristics are derived by first calculating the characteristics for each security, and then calculating the market value weighted average of these values for the portfolio. Allocation by Sector - Sector allocation is one of the tools which managers often use to add value without impacting the duration of the portfolio. The sector weights exhibit can be used to contrast a portfolio’s weights with those of the index to identify any significant sector bets. Average Coupon - The average coupon is the market value weighted average coupon of all securities in the portfolio. The total portfolio coupon payments per year are divided by the total portfolio par value. Average Moody’s Rating for Total Portfolio - A measure of the credit quality as determined by the individual security ratings. The ratings for each security, from Moody’s Investor Service, are compiled into a composite rating for the whole portfolio. Quality symbols range from Aaa+ (highest investment quality - lowest credit risk) to C (lowest investment quality - highest credit risk). Average Option Adjusted (Effective) Convexity - Convexity is a measure of the portfolio’s exposure to interest rate risk. It is a measure of how much the duration of the portfolio will change given a change in interest rates. Generally, securities with negative convexities are considered to be risky in that changes in interest rates will result in disadvantageous changes in duration. When a security’s duration changes it indicates that the stream of expected future cash-flows has changed, generally having a significant impact on the value of the security. The option adjusted convexity for each security in the portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Option Adjusted (Effective) Duration - Duration is one measure of the portfolio’s exposure to interest rate risk. Generally, the higher a portfolio’s duration, the more that its value will change in response to interest rate changes. The option adjusted duration for each security in the portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Price - The average price is equal to the portfolio market value divided by the number of securities in the portfolio. Portfolios with an average price above par will tend to generate more current income than those with an average price below par. Average Years to Expected Maturity - This is a measure of the market-value-weighted average of the years to expected maturity across all of the securities in the portfolio. Expected years to maturity takes into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Years to Stated Maturity - The average years to stated maturity is the market value weighted average time to stated maturity for all securities in the portfolio. This measure does not take into account imbedded options, sinking fund paydowns, or prepayments. Current Yield - The current yield is the current annual income generated by the total portfolio market value. It is equal to the total portfolio coupon payments per year divided by the current total portfolio market value. 29Callan Fixed Income Portfolio Characteristics Duration Dispersion - Duration dispersion is the market-value weighted standard deviation of the portfolio’s individual security durations around the total portfolio duration. The higher the dispersion, the more variable the security durations relative to the total portfolio duration ("barbellness"), and the smaller the dispersion, the more concentrated the holdings’ durations around the overall portfolio’s ("bulletness"). The purpose of this statistic is to gauge the "bulletness" or "barbellness" of a portfolio relative to its total duration and to that of its benchmark index. Effective Yield - The effective yield is the actual total annualized return that would be realized if all securities in the portfolio were held to their expected maturities. Effective yield is calculated as the internal rate of return, using the current market value and all expected future interest and principal cash flows. This measure incorporates sinking fund paydowns, expected mortgage principal prepayments, and the exercise of any "in-the-money" imbedded put or call options. Weighted Average Life - The weighted average life of a security is the weighted average time to payment of all remaining principal. It is calculated by multiplying each expected future principal payment amount by the time left to the payment. This amount is then divided by the total amount of principal remaining. Weighted average life is commonly used as a measure of the investment life for pass-through security types for comparison to non-pass-through securities. 30Callan Disclosures List of Callan’s Investment Manager Clients Confidential – For Callan Client Use Only Callan takes its fiduciary and disclosure responsibilities to clients very seriously. We recognize that there are numerous potential conflicts of interest encountered in the investment consulting industry, and that it is our responsibility to manage those conflicts effectively and in the best interest of our clients. At Callan, we employ a robust process to identify, manage, monitor, and disclose potential conflicts on an ongoing basis. The list below is an important component of our conflicts management and disclosure process. It identifies those investment managers that pay Callan fees for educational, consulting, software, database, or reporting products and services. We update the list quarterly because we believe that our fund sponsor clients should know the investment managers that do business with Callan, particularly those investment manager clients that the fund sponsor clients may be using or considering using. Please note that if an investment manager receives a product or service on a complimentary basis (e.g., attending an educational event), they are not included in the list below. Callan is committed to ensuring that we do not consider an investment manager’s business relationship with Callan, or lack thereof, in performing evaluations for or making suggestions or recommendations to its other clients. Please refer to Callan’s ADV Part 2A for a more detailed description of the services and products that Callan makes available to investment manager clients through our Institutional Consulting Group, Independent Adviser Group, and Fund Sponsor Consulting Group. Due to the complex corporate and organizational ownership structures of many investment management firms, parent and affiliate firm relationships are not indicated on our list. Fund sponsor clients may request a copy of the most currently available list at any time. Fund sponsor clients may also request specific information regarding the fees paid to Callan by particular fund manager clients. Per company policy, information requests regarding fees are handled exclusively by Callan’s Compliance department. Quarterly List as of September 30, 2021 September 30, 2021 Manager Name abrdn (Aberdeen Standard Investments) Acadian Asset Management LLC Adams Street Partners, LLC AEGON USA Investment Management Inc. AllianceBernstein Allianz American Century Investments AQR Capital Management Ares Management LLC Ariel Investments, LLC Aristotle Capital Management, LLC Atlanta Capital Management Co., LLC Aviva Investors AXA Investment Managers Baillie Gifford International, LLC Baird Advisors Barings LLC Baron Capital Management, Inc. Manager Name Barrow, Hanley, Mewhinney & Strauss, LLC BlackRock BMO Global Asset Management BNP Paribas Asset Management BNY Mellon Asset Management Boston Partners Brandes Investment Partners, L.P. Brandywine Global Investment Management, LLC Brown Brothers Harriman & Company Cambiar Investors, LLC Capital Group Carillon Tower Advisers CastleArk Management, LLC Causeway Capital Management LLC Chartwell Investment Partners ClearBridge Investments, LLC Cohen & Steers Capital Management, Inc. Columbia Threadneedle Investments North America Callan Callan I September 30, 2021 2 Manager Name Credit Suisse Asset Management Crescent Capital Group LP Crosscreek Capital Group D.E. Shaw Investment Management, LLC DePrince, Race & Zollo, Inc. Dimensional Fund Advisors LP Doubleline Duff & Phelps Investment Management Co. DWS EARNEST Partners, LLC Eaton Vance Management Epoch Investment Partners, Inc. Fayez Sarofim & Company Federated Hermes, Inc. Fidelity Institutional Asset Management Fiera Capital Corporation First Hawaiian Bank Wealth Management Division First Sentier Investors (formerly First State Investments) Fisher Investments Franklin Templeton GAM (USA) Inc. GCM Grosvenor GlobeFlex Capital, L.P. GoldenTree Asset Management, LP Goldman Sachs Guggenheim Investments GW&K Investment Management Harbor Capital Group Trust Heitman LLC Hotchkis & Wiley Capital Management, LLC Income Research + Management, Inc. Insight Investment Intech Investment Management, LLC Intercontinental Real Estate Corporation Invesco J.P. Morgan Janus Jennison Associates LLC Jobs Peak Advisors J O Hambro Capital Management Limited Manager Name KeyCorp Lazard Asset Management LGIM America (formerly Legal & General Inv Mgmt America) Lincoln National Corporation Longview Partners Loomis, Sayles & Company, L.P. Lord Abbett & Company LSV Asset Management MacKay Shields LLC Macquarie Investment Management (MIM) Manning & Napier Advisors, LLC Manulife Investment Management McKinley Capital Management, LLC Mellon MetLife Investment Management MFS Investment Management MidFirst Bank Mondrian Investment Partners Limited Montag & Caldwell, LLC Morgan Stanley Investment Management MUFG Union Bank, N.A. Natixis Investment Managers Neuberger Berman Newton Investment Management Ninety One North America, Inc. (formerly Investec Asset Mgmt.) Northern Trust Asset Management Nuveen Pacific Investment Management Company Parametric Portfolio Associates LLC Partners Group (USA) Inc. Pathway Capital Management P/E Investments Peregrine Capital Management, LLC PFM Asset Management LLC PGIM Fixed Income PineBridge Investments Polen Capital Management, LLC Principal Global Investors Putnam Investments, LLC QMA LLC Callan I September 30, 2021 3 Manager Name RBC Global Asset Management Regions Financial Corporation Richard Bernstein Advisors LLC Robeco Institutional Asset Management, US Inc. Rothschild & Co. Asset Management US S&P Dow Jones Indices Schroder Investment Management North America Inc. SLC Management Smith Graham & Co. Investment Advisors, L.P. State Street Global Advisors Stone Harbor Investment Partners L.P. Strategic Global Advisors, LLC T. Rowe Price Associates, Inc. The TCW Group, Inc. Thompson, Siegel & Walmsley LLC Manager Name Thornburg Investment Management, Inc. Tri-Star Trust Bank VanEck Versus Capital Group Victory Capital Management Inc. Virtus Investment Partners, Inc. Vontobel Asset Management Voya WCM Investment Management WEDGE Capital Management Wellington Management Company LLP Wells Fargo Asset Management Western Asset Management Company LLC Westfield Capital Management Company, LP William Blair & Company LLC Callan I CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending December 31, 2021 Orange County Sanitation District I r .,a CHANDLER ~,--ASSET MANAGEMENT SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Consolidated Information SECTION 4 Portfolio Holdings SECTION 5 Transactions Table of Contents As of December 31, 2021 1 I SECTION |Section 1 |Economic Update 2 Economic Update In our view, economic growth is likely to moderate but remain modestly above-trend in 2022, fueled in part by ongoing tailwinds from fiscal support, accommodative monetary policy, and continued progress on vaccinations. Our outlook assumes an improving global health backdrop, though risks to the downside remain.Covidinfectionratesinthe USand ona global basis have recently increased, and the new omicron variant poses a significant risk to the outlook. Given the high level ofuncertaintyregardingomicron’simpactonthe global health situation, supply chains, and the broader economy, we expect financial market volatility will be elevated over the near-term. Inflation readings continue to run hot, but market- based inflation expectations remain relatively contained and we believe inflation may be at or near a peak. We expect supply chain bottlenecks will continue to put upward pressure on prices over the near-term but should improve during 2022. The Federal Open Market Committee (FOMC) kept the fed funds target rate unchanged in December, in a range of 0.0%- 0.25%, but announced plans to accelerate the pace of their tapering process. The Fed will reduce the magnitude of their monthlyassetpurchasesby$30billioninJanuary,doublingthe pace ofthe monthly reduction in assetpurchases thatbegan in November. Should the Fed continue to reduce their monthly asset purchases at the new pace, their bond-buying program would end this spring (late-March or mid-April). The FOMC’s updated Summary of Economic Projections indicates thatpolicymakers may be prepared tohike the fed funds rate three times in 2022(based onthe medianestimate), upfrom the previous projection of just one 25 basis point hike. The Fed’s updated projections suggest that these hikes would be amid a backdrop of strong economic growth. With inflation now more elevated and prolonged than originally anticipated, we believe the Fed’s decision to accelerate the tapering process is prudent. However, we do not believe that monetary policy is on a pre-set course and expect the Fed will adjust policy if necessary, depending on developments in the economy. In December, the 2-year Treasury yield increased nearly 17 basis points to 0.73%, the 5-year Treasury yield increased ten basis points to 1.26%, and the 10-year Treasury yield increased about seven basis points to 1.51% in the month. 3 I Source: US Department of Labor Source: US Department of Labor Employment Job growth slowed in December, with US nonfarm payroll growth of just 199,000 in the month versus the consensus forecast of 450,000, but the unemploymentratestill declinedto3.9%,the lowestlevel since February 2020. On a trailing3-month and6-month basis,payrolls increasedan average of 365,000 and 508,000 per month, respectively, which still compares favorably to the average job gains in the five years leading up to the pandemic of about 196,000 per month. We believe a variety of factors are keeping some workers out of the labor force for now, which continues to hold back job growth despite strong demand from employers. The labor participation rate was unchanged in December at61.9% and remains lower than the pre-pandemic level of 63.4%. The employment-population ratio increased to 59.5% in December form 59.3% in November,butalsoremainsbelowthe pre-pandemiclevel of61.2%.The U-6underemployment rate, which includes those who are marginally attachedtothe laborforce andemployed parttime foreconomic reasons,declined to 7.3% in December from 7.7% in November (versus 7.0% in February 2020). Annualized average hourly earnings rose 0.6% month-over-month and were up 4.7% year-over-year in December versus 5.1% in November. -22,000 -18,000 -14,000 -10,000 -6,000 -2,000 2,000 6,000 MO M C h a n g e I n ( 0 0 0 ' s ) Nonfarm Payroll (000's) Non-farm Payroll (000's) 3 month average (000's) 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e ( % ) 4 I -r --· <'.)~ '¼ ✓~ s~ <'.)~ ~~ ✓~ s~ <'.)~ ()~ ¾ ✓~ s~ ()~ ~~ ✓~ s~ ()~ r''.19 ~<o ;o<o r-<o ~<-1 ;o< r'<-1 r' '.l..9 qr. ~~ :o<o r-<o ~<-1 :o< c.<-1 ,,.<o ,,.< <o V "'< -1 -1 ./ ./ Initial Claims for Unemployment - 5,000 10,000 15,000 20,000 25,000 In t h o u s a n d s Initial Jobless Claims Continuing Claims Initial Claims For Unemployment April 17, 2020 -December 31, 2021 In the most recent week, the number of initial jobless claims was 207,000, versus 200,000 in the prior week. The level of continuing unemployment claims (where the data is lagged by one week) was also little changed at 1.754millionversus 1.718million inthe priorweek. Continuing jobless claims have declined significantly from the peak of nearly 25million in May 2020, and are in the range of pre-pandemic levels (the 2019 average was 1.7 million). Source: US Department of Labor 5 I -- Source: US Department of Labor Source: US Department of Commerce Inflation The Consumer Price Index (CPI) was up 6.8% year-over-year in November, versus up 6.2% year-over-year in October. Core CPI (CPI less food and energy) was up 4.9% year-over-year in November, versus up 4.6% in October. Pricing pressures were widespread in November, with notable gains forenergy, food, used cars and trucks, new vehicles, and rent. The Personal Consumption Expenditures (PCE) index was up 5.7% year-over-yearin November, up from5.1% inOctober. Core PCE wasup 4.7% year-over-year inNovember, versusup 4.2%in October.Current inflation readings continue to run well above the Fed’s longer-run target of around 2.0%. Upward pressure on inflation from supply chain bottlenecks and pandemic-related disruptions is likely to remain elevated over the near-term. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change YO Y ( % ) C h a n g e 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Consumer Price Index (CPI) CPI YOY % Change Core CPI YOY % Change YO Y ( % ) C h a n g e 6 I ,...... ,,,· ---------------•~ ... __ _ I I _L I I I I _,, Onayear-over-yearbasis,retail saleswere up18.2%inNovemberversusup 16.3% in October. On a month-over-month basis, retail sales were softerthanexpectedin November,up 0.3%versus expectationsof 0.8%,but thisfollowed anupwardly revisedgain of1.8% inOctober. Inour view, the data suggests that consumers may have started shopping early this holiday season in anticipation of supply shortages. Higher gas prices seem to have taken some wallet share, with spending at gasoline stations up 1.7% month-over-month. Amid the current resurgence of virus cases, the outlook for December retail sales is uncertain, and nonstore retailers (online) may be poised to outperform. The Consumer Confidence index increased to 115.8 in December from 111.9 in November. The improvement came despite the arrival of the omicron variant and still elevated inflation. Source: US Department of Commerce Source: The Conference Board -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY % Change YO Y ( % ) C h a n g e 80 90 100 110 120 130 140 In d e x L e v e l Consumer Confidence Consumer 7 I Source: The Conference Board Source: Federal Reserve Bank of Chicago Economic Activity The Conference Board’s Leading Economic Index (LEI) increased 1.1% month-over-month in November, following a 0.9% increase in October. On a year-over-year basis, the LEI was up 9.8% in November versus up 9.6%in October.The Conference Board believesthe stronggain inthe LEI in November suggests that the economic expansion will continue into the first half of 2022, but they caution that ongoing supply chain headwinds and the current resurgence of the virus pose risks to the outlook. The Conference Board expects GDP growth to moderate in the firstquarterto2.2% versus theirforecast of 6.5% growth in the fourth quarter of this year. Meanwhile, the Chicago Fed National Activity Index (CFNAI) declined to 0.37 in November from 0.76 in October. On a 3-month moving average basis, the CFNAI increased to 0.37 in November versus 0.21 in October. -8.00 -6.00 -4.00 -2.00 0.00 2.00 4.00 6.00 Chicago Fed National Activity Index (CFNAI) 3 M o n t h A v e r a g e -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% Leading Economic Indicators (LEI) MO M ( % ) C h a n g e 8 I Source: US Department of Commerce Source: S&P Housing 0 200 400 600 800 1000 1200 1400 1600 1800 2000 MO M C h a n g e ( I n T h o u s a n d s o f U n i t s ) Housing Starts Multi Family Housing Starts Single Family Housing Starts 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% 21.0% 24.0% S&P/Case-Shiller 20 City Composite Home Price Index YO Y ( % ) C h a n g e Total housing starts jumped 11.8% in November to an annual pace of 1,679,000. Single-family starts increased 11.3% while multi-family starts increased 12.9%, month-over-month. On a year-over-year basis total housing starts were up 8.3% inNovember. Accordingto the Case-Shiller 20-City home price index, home prices were up 18.4% year-over-year in October versus up 19.1% year-over-year in September, suggestingthe acceleration in home prices is easing. However, tight supply will likely continue to support prices. 9 I • Source: Institute for Supply Management Source: Federal Reserve Manufacturing The Institute forSupply Management (ISM) manufacturing index declined to 58.7 in December from 61.1 in November. Nevertheless, readings above 50.0 are indicative of expansion in the manufacturing sector. The Industrial Production index was up 5.3% in November, on par with October’s year-over-year gain. On a month-over-month basis, the Industrial Production index increased 0.5% in November, following an upwardly revised 1.7% increase in October. Though manufacturing production likely remains constrained by supply chain bottlenecks, capacity utilization increased to 76.8% in November from 76.5% in October. Although capacity utilization remains below its longer-run average of 79.6%, it is running above the pre-pandemic level of 76.3%. 40 42 44 46 48 50 52 54 56 58 60 62 64 66 Institute of Supply Management Purchasing Manager Index EXPANDING CONTRACTING -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Industrial Production YO Y ( % ) C h a n g e 10 I Source: US Department of Commerce Source: US Department of Commerce 12/20 3/21 6/21 9/21 2.3% 7.4% 7.9% 1.4% 4.0% -0.4% -0.7% 2.1% -1.7% -1.6% -0.2% -1.3% -0.2% 0.8% -0.4% -0.4% 0.1% 0.0% 0.0% 0.5% 4.5% 6.3% 6.7% 2.3% Gross Private Domestic Investment Personal Consumption Expenditures Components of GDP Federal Government Expenditures State and Local (Consumption and Gross Investment) Net Exports and Imports Total -35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Gross Domestic Product (GDP) Real US gross domesticproduct (GDP) growth decelerated in the third quarter of 2021 amid widespread supply chain disruptions and a surge in the Covid Delta variant. However, third quarter growth was slightly better than previously estimated. According to the final estimate, third quarterGDP grew at an annualized rate of 2.3% in the third quarter, revised up from the second estimate of 2.1% and the advance estimate of 2.0%. This follows a much stronger pace of growth in the first half of 2021, with first and second quarter annualized GDP growth up 6.3% and 6.7%, respectively. The consensus estimate is 6.0% GDP growth in the fourth quarter, and 3.9% GDP growth in the currentquarter. Though the impactoneconomicactivityfrom eachresurgence ofthe virusseems tolessen witheach wave,we believe there isrisk tothe currentquarter growth outlook. 11 I Federal Reserve Source: Federal Reserve Source: Bloomberg Lastyear,the Fedtook awide range of aggressive actions tohelp stabilize and provide liquidity to the financial markets. The Fed lowered the fed funds target rate to a range of 0.0%-0.25% and started purchasing Treasury and agency mortgage-backed securities (MBS) to support smooth market functioning. Last year, policymakers reinstated the Commercial Paper Funding Facility and Money Market Mutual Fund LiquidityFacility,andestablishedthe PrimaryMarketCorporate Credit Facility,Secondary MarketCorporate CreditFacility, TermAsset-Backed Securities Loan Facility, Paycheck Protection Program Liquidity Facility, Main Street Lending Facility, and Municipal Liquidity Facility. The Fed has also provided short-term funding through large-scale repo operations and lowered the reserve requirement for depository institutions. Many of the Fed's lending facilities expired at the end of 2020. In June 2021, the Fed announced plans to unwind its corporate credit facility. The Fed started to taper their Treasury and agency MBS purchases in November 2021, and we believe the Fed's bond-buying program is likely to end in the spring of 2022. The Fed has also signaled that they are likely to start hiking the fed funds target rate in 2022. 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% Effective Federal Funds Rate Yi e l d ( % ) 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 Federal Reserve Balance Sheet Assets In $ m i l l i o n s 12 I Source: Bloomberg Source: Bloomberg 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% US Treasury Note Yields 2-Year 5-Year 10-Year Yi e l d ( % ) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% US Treasury Yield Curve Dec-21 Sep-21 Dec-20 Yi e l d ( % ) Bond Yields At the end of December, the 2-year Treasury yield was about 61 basis points higher and the 10-Year Treasury yield was about 60 basis points higher, year-over-year. The spread between the 2-year Treasuryyield and10-year Treasuryyield was78basispoints atyear-end comparedto the average historical spread (since 2002) of about 135 basis points. 13 I - .... ___ , ___ ,,,, ... . --_, . . ... . ,_ -.. • ....... . ··································· . . . . .. •"·-- - , ······ ,, .... ······-- ······ ······ ,,,' ········ -----1"--,-=-'-'-'_' ______ ... _·_·_·_·_·_·_·_· ____________________ _ , .. •· , .. .,: ... •· Section 2|SECTION |Section 2 |Account Profile 14 Objectives Chandler Asset Management Performance Objective Liquid Operating Monies – will be compared to the 3-month T-Bill rate and operate with a maximum maturity of one year. Long-Term Operating Monies – will be compared to the ICE BAML 1-5 Year Corporate Government Rated AAA – A Index. Investment Objectives The investment objectives of the Orange County Sanitation District are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all operating requirements; and third, to earn a commensurate rate of return consistent with the constraints imposed by the safety and liquidity objectives. Strategy In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. As of December 31, 2021 15 I Compliance As of December 31, 2021 Category Standard Comment U.S. Treasuries 10% minimum; 5 years max maturity Complies* Federal Agencies 20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 5 years max maturity; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government , a federal agency, or a US Government-sponsored enterprise Complies Supranational Obligations "AA" rated or better by a NRSRO; 30% max; 5 years max maturity; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-American Development Bank ("IADB") Complies Municipal Securities "A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% max; 5% max issuer; 5 years max maturity Complies Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity; Issued by corporations organized and operating within the U.S. or issued by depository institutions licensed by the U.S. or any state and operating within the U.S. with AUM >$500 million Complies Non- Agency Asset-Backed Securities, Mortgage-Backed Securities, CMOs "AA" rating category or better by a NRSRO; 20% max(combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 5 years max maturity; Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond Complies* Negotiable Certificates of Deposit (NCD) "A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved by the Board of Directors; 30% max; 5% max issuer; 5 years max maturity; Negotiable certificates of deposit issued by a nationally or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code Complies Certificates of Deposit 5% max issuer; 5 years max maturity; Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code and having a net operating profit in the two most recently completed fiscal years; Collateral must comply with California Government Code Complies Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for purchase by the Federal Reserve System Complies Commercial Paper A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and operating in the U.S. with assets > $500 million; 25% max; 5% max issuer; 10% max of the outstanding commercial paper of any single issuer; 270 days max maturity Complies Mutual Fund & Money Market Mutual Fund Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% max in Mutual Funds; 10% max per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the 10% stipulation Complies Local Agency Investment Fund (LAIF)No more than the statutory maximum may be invested in LAIF; Not used by investment adviser; Investment of OCSD funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to the policy Complies Orange County Sanitation District Long Term Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy 16 I Compliance As of December 31, 2021 Category Standard Comment Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP) 15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP would be subject to investigation and due diligence prior to investing and on continual basis to a level of review pursuant to the policy Complies Repurchase Agreements 20% max; 102% collateralization Complies Reverse Repurchase Agreements 5% max, 90 days max maturity Complies Prohibited Mortgage Derivatives, which include interest-only payments (IOs) and principal-only payments (POs); Inverse floaters, and RE-REMICS (Real Estate Mortgage Investment Conduits) Complies Securities Downgrade If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported quarterly to the OCSD General Manager, the Administration Committee and Board of Directors Complies Avg Duration Not to exceed 60 months - (80% to 120% of the benchmark)Complies Max Per Holding 5% max of the total debt outstanding of any issuer per individual holding Complies Max Per Issuer 5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Market Mutual Funds Complies Maximum Maturity 5 years max maturity Complies* Orange County Sanitation District Long Term Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy *The portfolio has nineteen (19) securities with maturities greater than 5 years including four (4) CMOs and sixteen (15) MBS. All securities were inherited from the previous manager and complied at time of purchase. 17 I Portfolio Characteristics Orange County Sanitation District Long Term 12/31/2021 9/30/2021 Benchmark*Portfolio Portfolio Average Maturity (yrs)2.69 2.58 2.78 Average Modified Duration 2.59 2.37 2.54 Average Purchase Yield n/a 1.38%1.45% Average Market Yield 0.93%0.82%0.50% Average Quality**AAA AA+/Aa1 AA/Aa1 Total Market Value 742,225,778 686,382,940 *ICE BofA 1-5 Yr AAA-A US Corp & Govt Index **Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively. Many securities were purchase in the Treasury, Asset Backed, and Corporate sectors of the market to keep the portfolio invested to strategy and spend down the net $60 million contributed during the quarter. The purchased securities ranged in maturity from April 2022 to October 2026. A few securities were sold and one matured during the reporting period. As of December 31, 2021 18 I Orange County Sanitation District Long Term Sector Distribution ABS 6.0% Agency 21.8% CMO 0.8% Corporate 22.6%Money Market Fund 2.0% Mortgage Pass Thru 0.1% Negotiable CD 2.4% Supranational 9.3% US Treasury 34.9% December 31, 2021 September 30, 2021 ABS 6.0% Agency 24.6% CMO 0.9% Corporate 23.6%Money Market Fund 0.3% Mortgage Pass Thru 0.1% Negotiable CD 2.5% Supranational 10.2% US Treasury 31.8% As of December 31, 2021 The sector allocation changed moderately during the reporting period. The two largest changes were the 3.1% increase in the Treasury allocation to 34.9% of the portfolio, partially offset by the 2.8% decline in the Agency allocation. 19 I / _/ Issue Name Investment Type % Portfolio Government of United States US Treasury 34.92% Federal National Mortgage Association Agency 8.99% Federal Home Loan Bank Agency 6.21% Inter-American Dev Bank Supranational 5.18% Federal Home Loan Mortgage Corp Agency 4.75% Intl Bank Recon and Development Supranational 4.16% First American Govt Obligation Fund Class-Z Money Market Fund 1.96% Federal Farm Credit Bank Agency 1.89% Bank of America Corp Corporate 1.58% JP Morgan Chase & Co Corporate 1.53% Royal Bank of Canada Corporate 1.45% Bank of Montreal Chicago Corporate 1.36% Charles Schwab Corp/The Corporate 1.31% Hyundai Auot Receivables ABS 1.30% US Bancorp Corporate 1.29% Morgan Stanley Corporate 1.18% Chubb Corporation Corporate 1.14% Toronto Dominion Holdings Corporate 1.13% Apple Inc Corporate 0.98% Toyota Motor Corp Corporate 0.97% Honda ABS ABS 0.96% Nordea Bank ABP New York Negotiable CD 0.94% Berkshire Hathaway Corporate 0.89% John Deere ABS ABS 0.88% PNC Financial Services Group Corporate 0.84% Qualcomm Inc Corporate 0.83% Svenska Handelsbanken NY Negotiable CD 0.81% Federal Home Loan Mortgage Corp CMO 0.78% Wal-Mart Stores Corporate 0.77% Amazon.com Inc Corporate 0.73% Intel Corp Corporate 0.70% Bank of New York Corporate 0.69% Honeywell Corp Corporate 0.68% Bank of Nova Scotia Houston Negotiable CD 0.67% Honda Motor Corporation Corporate 0.57% Mercedes-Benz Auto Lease Trust ABS 0.57% Hyundai Auto Lease Securitization ABS 0.56% Metlife Inc Corporate 0.50% Issuers Orange County Sanitation District Long Term – Account #10268 As of December 31, 2021 20 I Issue Name Investment Type % Portfolio ChevronTexaco Corp Corporate 0.49% Toyota Lease Owner Trust ABS 0.43% Nissan ABS ABS 0.41% Toyota ABS ABS 0.40% Merck & Company Corporate 0.28% BMW Vehicle Lease Trust ABS 0.28% United Health Group Inc Corporate 0.23% GM Financial Securitized Term Auto Trust ABS 0.23% Salesforce.com Inc Corporate 0.18% Deere & Company Corporate 0.18% BlackRock Inc/New York Corporate 0.14% Federal National Mortgage Association Mortgage Pass Thru 0.05% AMRESCO Residental Securities Corp CMO 0.02% Federal National Mortgage Association CMO 0.01% GNMA Mortgage Pass Thru 0.01% SLM Corp ABS 0.00% Federal Home Loan Mortgage Corp Mortgage Pass Thru 0.00% TOTAL 100.00% Issuers Orange County Sanitation District Long Term – Account #10268 As of December 31, 2021 21 I AAA AA A <A NR 12/31/21 17.2%62.7%14.9%1.2%3.9% 09/30/21 14.4%65.2%15.2%1.3%3.9% Source: S&P Ratings December 31, 2021 vs. September 30, 2021 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% AAA AA A <A NR 12/31/2021 9/30/2021 Quality Distribution Orange County Sanitation District Long Term As of December 31, 2021 22 I -- ■ ■ AAA AA A <A NR 12/31/21 76.2%3.5%18.1%0.0%2.2% 09/30/21 74.2%4.9%18.7%0.0%2.2% Source: Moody’s Ratings December 31, 2021 vs. September 30, 2021 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% AAA AA A <A NR 12/31/2021 9/30/2021 Quality Distribution Orange County Sanitation District Long Term As of December 31, 2021 23 I - ■ ■ 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Orange County Sanitation District Long Term ICE BofA 1-5 Yr AAA-A US Corp & Govt Index Portfolio Compared to the Benchmark as of December 31, 2021 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 4.4% 4.7% 7.9% 23.4% 25.0% 22.0% 12.7% 0.0% Benchmark*0.0% 0.0% 1.6% 33.4% 27.8% 20.1% 17.0% 0.0% *ICE BofA 1-5 Yr AAA-A US Corp & Govt Index Duration Distribution Orange County Sanitation District Long Term As of December 31, 2021 The duration of the portfolio contracted to 2.37 as of December 31, 2021, compared to 2.54 as of September 30, 2021. $50 million of the net $60 million contributed to the portfolio took place in late December and the Chandler team was conservative in reinvesting the new funds due to an expected pick up in market activity in early January 2022. The duration will be migrating higher in the first month of 2022. 24 I • • -1.50% -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 12 months 2 years 3 years 5 years 10 years Since Inception Orange County Sanitation District Long Term ICE BofA 1-5 Yr AAA-A US Corp & Govt Index Total Rate of Return Annualized Since Inception 11/30/2014 Annualized TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Orange County Sanitation District Long Term -0.63% -0.92% 1.70% 2.67% 2.14% N/A 1.80% ICE BofA 1-5 Yr AAA-A US Corp & Govt Index -0.69% -1.00% 1.68% 2.65% 2.09% N/A 1.76% Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Investment Performance Orange County Sanitation District Long Term As of December 31, 2021 25 I • • Compliance As of December 31, 2021 Category Standard Comment U.S. Treasuries 10% minimum; 1 year max maturity Complies Federal Agencies 20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 1 year max maturity; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government , a federal agency, or a US Government-sponsored enterprise Complies Supranational Obligations "AA" rated or better by a NRSRO; 30% max; 1 year max maturity; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-American Development Bank ("IADB") Complies Municipal Securities "A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% max; 5% max issuer; 1 year max maturity Complies Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 1 year max maturity; Issued by corporations organized and operating within the U.S. or issued by depository institutions licensed by the U.S. or any state and operating within the U.S. with AUM >$500 million Complies Non- Agency Asset-Backed Securities, Mortgage-Backed Securities, CMOs "AA" rating category or better by a NRSRO; 20% max (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 1 year max maturity; Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond Complies Negotiable Certificates of Deposit (NCD) "A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved by the Board of Directors; 30% max; 5% max issuer; 1 year max maturity; Negotiable certificates of deposit issued by a nationally or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code Complies Certificates of Deposit 5% max issuer; 1 year max maturity; Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code and having a net operating profit in the two most recently completed fiscal years; Collateral must comply with California Government Code Complies Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for purchase by the Federal Reserve System Complies Commercial Paper A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and operating in the U.S. with assets > $500 million; 25% max; 5% max issuer; 10% max of the outstanding commercial paper of any single issuer; 270 days max maturity Complies Mutual Fund & Money Market Mutual Fund Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% max in Mutual Funds; 10% max per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the 10% stipulation Complies Local Agency Investment Fund (LAIF)No more than the statutory maximum may be invested in LAIF; Not used by investment adviser; Investment of OCSD funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to the policy Complies Orange County Sanitation District Liquid Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy 26 I Compliance As of December 31, 2021 Category Standard Comment Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP) 15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP would be subject to investigation and due diligence prior to investing and on continual basis to a level of review pursuant to the policy Complies Repurchase Agreements 20% max; 102% collateralization Complies Reverse Repurchase Agreements 5% max, 90 days max maturity Complies Prohibited Mortgage Derivatives, which include interest-only payments (IOs) and principal-only payments (POs); Inverse floaters, and RE-REMICS (Real Estate Mortgage Investment Conduits) Complies Securities Downgrade If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported quarterly to the OCSD General Manager, the Administration Committee and Board of Directors Complies Avg Duration Not to exceed 180 days Complies Max Per Holding 5% max of the total debt outstanding of any issuer per individual holding Complies Max Per Issuer 5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Market Mutual Funds Complies Maximum Maturity 1 year max maturity Complies Orange County Sanitation District Liquid Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy 27 I Portfolio Characteristics Orange County Sanitation District Liquid 12/31/2021 9/30/2021 Benchmark*Portfolio Portfolio Average Maturity (yrs)0.16 0.27 0.45 Average Modified Duration 0.15 0.27 0.45 Average Purchase Yield n/a 0.11%0.08% Average Market Yield 0.03%0.18%0.09% Average Quality**AAA AA+/Aaa AA+/Aaa Total Market Value 230,856,942 129,858,408 *ICE BofA 3-Month US Treasury Bill Index **Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively. Multiple securities were purchased in the Treasury sector to spend down residual cash and account for upcoming liquidity needs. The purchased securities ranged in maturity from January 2022 to July 2022, corresponding to the heavy cash flow needs at the end of January, June, and early August. A net of $101 million was contributed to the portfolio during the quarter. As of December 31, 2021 28 I Orange County Sanitation District Liquid Sector Distribution Commercial Paper 2.6% Corporate 3.5% Money Market Fund 3.5% Negotiable CD 4.8% US Treasury 85.6% December 31, 2021 September 30, 2021 Commercial Paper 6.2%Corporate 6.3% Money Market Fund 0.0% Negotiable CD 8.5% US Treasury 79.0% As of December 31, 2021 The asset allocation adjusted due to the large cash contribution during the quarter. Notably the Treasury allocation increased by 6.6%, to 85.6% of the portfolio, as the new monies were invested in the Treasury sector to offset upcoming liquidity needs. 29 I \ / Issue Name Investment Type % Portfolio Government of United States US Treasury 85.63% First American Govt Obligation Fund Class-Z Money Market Fund 3.50% Toyota Motor Corp Commercial Paper 1.73% Nordea Bank ABP New York Negotiable CD 1.30% Svenska Handelsbanken NY Negotiable CD 1.30% Bank of Nova Scotia Houston Negotiable CD 1.30% Caterpillar Inc Corporate 0.88% Morgan Stanley Corporate 0.88% Truist Financial Corporation Corporate 0.88% Honda Motor Corporation Corporate 0.87% Toronto Dominion Holdings Negotiable CD 0.87% MUFG Bank Ltd/NY Commercial Paper 0.87% TOTAL 100.00% Issuers Orange County Sanitation District Liquid – Account #10282 As of December 31, 2021 30 I AAA AA A <A NR 12/31/21 27.3%69.2%2.6%0.9%0.0% 09/30/21 17.0%76.7%4.7%1.6%0.0% Source: S&P Ratings December 31, 2021 vs. September 30, 2021 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% AAA AA A <A NR 12/31/2021 9/30/2021 Quality Distribution Orange County Sanitation District Liquid As of December 31, 2021 31 I ■ ■ AAA AA A <A NR 12/31/21 96.5%0.0%3.5%0.0%0.0% 09/30/21 93.7%0.0%6.3%0.0%0.0% Source: Moody’s Ratings December 31, 2021 vs. September 30, 2021 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% AAA AA A <A NR 12/31/2021 9/30/2021 Quality Distribution Orange County Sanitation District Liquid As of December 31, 2021 32 I ■ ■ 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 1.5 1.5 - 2 2 - 2.5 2.5 - 3 3+ Orange County Sanitation District Liquid ICE BofA 3-Month US Treasury Bill Index Portfolio Compared to the Benchmark as of December 31, 2021 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 1.5 1.5 - 2 2 - 2.5 2.5 - 3 3+ Portfolio 48.2% 38.8% 13.0% 0.0% 0.0% 0.0% 0.0% 0.0% Benchmark*100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% *ICE BofA 3-Month US Treasury Bill Index Duration Distribution Orange County Sanitation District Liquid As of December 31, 2021 The duration of the portfolio contracted during the quarter to 0.27 years compared to 0.45 year at the end of the prior reporting period. The large liquidity needs in January and June are material factors in the short duration of the portfolio. 33 I ■ ■ 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 12 months 2 years 3 years 5 years 10 years Since Inception Orange County Sanitation District Liquid ICE BofA 3-Month US Treasury Bill Index Total Rate of Return Annualized Since Inception 11/30/2014 Annualized TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Orange County Sanitation District Liquid 0.00% 0.08% 0.47% 1.12% 1.23% N/A 0.97% ICE BofA 3-Month US Treasury Bill Index 0.01% 0.05% 0.36% 0.99% 1.14% N/A 0.86% Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Investment Performance Orange County Sanitation District Liquid As of December 31, 2021 34 I 1111 ■ ■ Compliance As of December 31, 2021 Category Standard Comment Treasury Issues 5 years maximum maturity Complies Supranational "AA" or better by 1 of 3 NRSROs; 30% maximum; 5% max; 5 years maturity; Includes only: IADB, IBRD, and IFC per CGC Complies U.S. Agencies 20% max issuer; 5 years maximum maturity Complies U.S. Corporate (MTNs)"A" or better long term rating by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity Complies* Municipal Securities "A" or higher by 1 of 3 NRSROS; 10% maximum; 5% max issuer; 5 years maximum maturity Complies Asset Backed/ CMOs/ Mortgage- backed "AA" or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; 20% maximum; 5% max issuer (excluding MBS/govt agency); 5 years max maturity Complies Negotiable CDs "A" or better on its long term debt by 1 of 3 NRSROs ; "A1/P1" or highest short term ratings by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity Complies CDs/ TDS 5% max issuer; 5 years max maturity Complies Banker’s Acceptances A-1, or equivalent highest short term rating by 1 of 3 NRSROS; 40% maximum; 5% max issuer; 180 days max maturity Complies Commercial Paper A-1, or equivalent by 1 of 3 NRSROS; "A" or better by 1 of 3 NRSROs, if long term debt issued; 25% maximum; 5% max issuer; 270 days max maturity Complies Money Market Fund Highest rating by 2 of 3 NRSROs; 20% maximum; 10% max issuer Complies Repurchase Agreements 102% collateralization Complies Reverse Repurchase Agreements 5% maximum, 90 days max maturity Complies LAIF Not used by investment adviser Complies Avg Duration Not to exceed 60 months - (80% to 120% of the benchmark)Complies Maximum Maturity 5 years maximum maturity Complies OCSD Lehman Exposure Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy * Account holds $2 million face value (cusip 525ESC0Y6) and $600,000 face value (cusip 525ESC1B7) of defaulted Lehman Bros Holdings that were purchased by the previous manager. Complied at time of purchase. 35 I Portfolio Characteristics OC SAN Lehman Exposure 12/31/2021 Portfolio 9/30/2021 Portfolio Average Maturity (yrs)7.67 8.85 Modified Duration 0.00 0.00 Average Purchase Yield 0.00%0.00% Average Market Yield 0.00%0.00% Average Quality*NR/NR NR/NR Total Market Value 39,921 43,301 *Portfolio is S&P and Moody’s, respectively. As of December 31, 2021 36 I SECTION |Section 3 |Consolidated Information 37 Portfolio Characteristics Orange County Sanitation District Consolidated 12/31/2021 9/30/2021 Portfolio Portfolio Average Maturity (yrs)2.03 2.41 Modified Duration 1.87 2.20 Average Purchase Yield 1.07%1.23% Average Market Yield 0.67%0.43% Average Quality*AA+/Aa1 AA+/Aa1 Total Market Value 973,122,640 816,284,650 * Portfolio is S&P and Moody’s respectively. As of December 31, 2021 38 I Orange County Sanitation District Consolidated Sector Distribution ABS 4.6%Agency 16.7% CMO 0.6% Commercial Paper 0.6% Common Stock 0.0% Corporate 18.1% Money Market Fund 2.3% Mortgage Pass Thru 0.0% Negotiable CD 3.0% Supranational 7.1% US Treasury 46.9% December 31, 2021 September 30, 2021 ABS 5.1% Agency 20.7% CMO 0.8% Commercial Paper 1.0% Common Stock 0.0% Corporate 20.9%Money Market Fund 0.2% Mortgage Pass Thru 0.1% Negotiable CD 3.4% Supranational 8.6% US Treasury 39.3% As of December 31, 2021 39 I _/ ----J SECTION |Section 4 |Portfolio Holdings 40 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration ABS 58770FAC6 Mercedes Benz Auto Lease Trust 2020-A A3 1.840% Due 12/15/2022 914,426.65 01/21/2020 1.85% 914,306.13 914,386.74 100.27 0.51% 916,862.70 747.80 0.12% 2,475.96 Aaa / AAA NR 0.96 0.20 65479GAD1 Nissan Auto Receivables Trust 2018-B A3 3.060% Due 03/15/2023 287,650.80 07/17/2018 3.08% 287,641.48 287,650.48 100.21 0.48% 288,243.08 391.21 0.04% 592.60 Aaa / AAA NR 1.20 0.08 78445JAA5 SLM Student Loan Trust 2008-9 A 1.635% Due 04/25/2023 9,510.53 08/22/2008 1.69% 9,471.93 9,507.08 100.68 1.48% 9,575.09 29.36 0.00% 68.01 Baa3 / B B 1.32 0.04 44891VAC5 Hyundai Auto Lease Trust 2021-B A3 0.330% Due 06/17/2024 4,155,000.00 06/08/2021 0.34% 4,154,376.75 4,154,527.82 99.37 0.73% 4,128,989.70 609.40 0.56% (25,538.12) Aaa / AAA NR 2.46 1.56 65479JAD5 Nissan Auto Receivables Owner 2019-C A3 1.930% Due 07/15/2024 2,724,922.14 10/16/2019 1.94% 2,724,778.26 2,724,844.99 100.81 0.38% 2,746,917.71 2,337.38 0.37% 22,072.72 Aaa / AAA NR 2.54 0.52 89237VAB5 Toyota Auto Receivables Trust 2020-C A3 0.440% Due 10/15/2024 2,960,000.00 07/21/2020 0.44% 2,959,772.08 2,959,849.43 99.92 0.55% 2,957,620.16 578.84 0.40% (2,229.27) Aaa / AAA NR 2.79 0.74 43813KAC6 Honda Auto Receivables Trust 2020-3 A3 0.370% Due 10/18/2024 3,235,000.00 09/22/2020 0.38% 3,234,524.78 3,234,715.28 99.72 0.65% 3,225,958.18 432.23 0.43% (8,757.10) NR / AAA AAA 2.80 0.99 89239CAC3 Toyota Lease Owner Trust 2021-B A3 0.420% Due 10/21/2024 3,185,000.00 07/27/2021 0.42% 3,184,957.00 3,184,964.25 99.15 0.90% 3,157,949.80 408.74 0.43% (27,014.45) Aaa / NR AAA 2.81 1.79 47787NAC3 John Deere Owner Trust 2020-B A3 0.510% Due 11/15/2024 1,480,000.00 07/14/2020 0.52% 1,479,774.45 1,479,868.07 99.85 0.69% 1,477,734.12 335.47 0.20% (2,133.95) Aaa / NR AAA 2.88 0.83 58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3 0.400% Due 11/15/2024 3,315,000.00 06/22/2021 0.40% 3,314,749.72 3,314,799.78 99.25 0.81% 3,290,001.59 589.33 0.44% (24,798.19) NR / AAA AAA 2.88 1.85 09690AAC7 BMW Vehicle Lease Trust 2021-2 A3 0.330% Due 12/26/2024 2,070,000.00 09/08/2021 0.34% 2,069,786.38 2,069,814.14 99.24 0.80% 2,054,199.71 113.85 0.28% (15,614.43) Aaa / NR AAA 2.99 1.64 43813GAC5 Honda Auto Receivables Trust 2021-1 A3 0.270% Due 04/21/2025 1,605,000.00 02/17/2021 0.27% 1,604,970.63 1,604,978.78 99.47 0.71% 1,596,437.33 120.38 0.22% (8,541.45) Aaa / NR AAA 3.31 1.21 47788UAC6 John Deere Owner Trust 2021-A A3 0.360% Due 09/15/2025 2,300,000.00 03/02/2021 0.37% 2,299,557.94 2,299,657.78 99.19 0.84% 2,281,393.00 368.00 0.31% (18,264.78) Aaa / NR AAA 3.71 1.70 44933LAC7 Hyundai Auto Receivables Trust 2021-A A3 0.380% Due 09/15/2025 2,100,000.00 04/20/2021 0.38% 2,099,779.08 2,099,828.31 99.25 0.84% 2,084,323.52 354.67 0.28% (15,504.79) NR / AAA AAA 3.71 1.62 44934KAC8 Hyundai Auto Receivables Trust 2021-B A3 0.380% Due 01/15/2026 6,040,000.00 07/20/2021 0.39% 6,038,666.97 6,038,849.75 98.90 0.98% 5,973,294.24 1,020.09 0.80% (65,555.51) NR / AAA AAA 4.04 1.85 43815GAC3 Honda Auto Receivables Trust 2021-4 A3 0.880% Due 01/21/2026 2,290,000.00 11/16/2021 0.89% 2,289,517.27 2,289,532.75 99.76 0.99% 2,284,474.23 559.78 0.31% (5,058.52) Aaa / NR AAA 4.06 2.13 47789QAC4 John Deere Owner Trust 2021-B A3 0.520% Due 03/16/2026 2,820,000.00 07/13/2021 0.52% 2,819,748.46 2,819,779.41 98.86 1.02% 2,787,866.10 651.73 0.38% (31,913.31) Aaa / NR AAA 4.21 2.30 As of December 31, 2021 41 I Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 44935FAD6 Hyundai Auto Receivables Trust 2021-C A3 0.740% Due 05/15/2026 1,600,000.00 11/09/2021 0.75% 1,599,642.88 1,599,656.79 99.31 1.05% 1,589,030.40 526.22 0.21% (10,626.39) NR / AAA AAA 4.37 2.19 362554AC1 GM Financial Securitized Term 2021-4 A3 0.680% Due 09/16/2026 1,705,000.00 10/13/2021 0.68% 1,704,956.52 1,704,959.04 99.25 1.06% 1,692,193.75 483.08 0.23% (12,765.29) Aaa / AAA NR 4.71 1.98 TOTAL ABS 44,796,510.12 0.59% 44,790,978.71 44,792,170.67 0.80% 44,543,064.41 10,657.56 6.00% (249,106.26) Aaa / AAA Aaa 3.28 1.53 Agency 3133ELYR9 FFCB Note 0.250% Due 05/06/2022 8,850,000.00 04/30/2020 0.31% 8,838,760.50 8,848,075.43 100.04 0.12% 8,853,902.85 3,380.21 1.19% 5,827.42 Aaa / AA+ AAA 0.35 0.35 3135G0T94 FNMA Note 2.375% Due 01/19/2023 5,000,000.00 Various 2.78% 4,910,990.00 4,980,436.80 102.05 0.41% 5,102,695.00 53,437.50 0.69% 122,258.20 Aaa / AA+ AAA 1.05 1.03 313383QR5 FHLB Note 3.250% Due 06/09/2023 5,000,000.00 08/28/2018 2.87% 5,083,350.00 5,025,028.88 103.86 0.56% 5,192,795.00 9,930.56 0.70% 167,766.12 Aaa / AA+ NR 1.44 1.41 3137EAEN5 FHLMC Note 2.750% Due 06/19/2023 10,000,000.00 Various 2.84% 9,956,500.00 9,987,123.04 103.15 0.59% 10,314,620.00 9,166.66 1.39% 327,496.96 Aaa / AA+ AAA 1.47 1.44 3135G05G4 FNMA Note 0.250% Due 07/10/2023 6,775,000.00 07/08/2020 0.32% 6,760,433.75 6,767,617.11 99.46 0.60% 6,738,686.00 8,045.31 0.91% (28,931.11) Aaa / AA+ AAA 1.52 1.52 313383YJ4 FHLB Note 3.375% Due 09/08/2023 10,000,000.00 Various 2.89% 10,211,831.00 10,076,665.14 104.57 0.65% 10,456,940.00 105,937.50 1.42% 380,274.86 Aaa / AA+ NR 1.69 1.63 3130A0F70 FHLB Note 3.375% Due 12/08/2023 10,000,000.00 Various 2.79% 10,269,043.75 10,105,409.38 105.07 0.73% 10,507,340.00 21,562.51 1.42% 401,930.62 Aaa / AA+ AAA 1.94 1.88 3135G0V34 FNMA Note 2.500% Due 02/05/2024 5,000,000.00 02/27/2019 2.58% 4,980,850.00 4,991,874.79 103.56 0.78% 5,177,900.00 50,694.44 0.70% 186,025.21 Aaa / AA+ AAA 2.10 2.03 3130A1XJ2 FHLB Note 2.875% Due 06/14/2024 11,110,000.00 Various 1.96% 11,589,031.30 11,345,176.96 104.87 0.87% 11,650,679.26 15,083.37 1.57% 305,502.30 Aaa / AA+ NR 2.45 2.37 3133EKWV4 FFCB Note 1.850% Due 07/26/2024 5,000,000.00 08/13/2019 1.65% 5,048,280.00 5,025,021.22 102.93 0.70% 5,146,700.00 39,826.39 0.70% 121,678.78 Aaa / AA+ AAA 2.57 2.49 3130A2UW4 FHLB Note 2.875% Due 09/13/2024 2,500,000.00 09/12/2019 1.73% 2,635,950.00 2,573,369.84 105.11 0.95% 2,627,627.50 21,562.50 0.36% 54,257.66 Aaa / AA+ AAA 2.70 2.59 3135G0X24 FNMA Note 1.625% Due 01/07/2025 10,000,000.00 Various 1.28% 10,157,936.40 10,099,870.35 101.83 1.01% 10,182,740.00 78,541.66 1.38% 82,869.65 Aaa / AA+ AAA 3.02 2.92 3137EAEP0 FHLMC Note 1.500% Due 02/12/2025 12,335,000.00 Various 1.20% 12,510,182.05 12,445,480.89 101.46 1.02% 12,515,609.07 71,440.21 1.70% 70,128.18 Aaa / AA+ AAA 3.12 3.02 3130A4CH3 FHLB Note 2.375% Due 03/14/2025 5,225,000.00 03/19/2020 1.18% 5,526,848.25 5,418,713.60 104.21 1.04% 5,444,925.48 36,883.42 0.74% 26,211.88 Aaa / AA+ AAA 3.20 3.07 As of December 31, 2021 42 I Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 3135G03U5 FNMA Note 0.625% Due 04/22/2025 14,000,000.00 Various 0.63% 13,996,711.60 13,997,850.88 98.64 1.04% 13,809,488.00 16,770.84 1.86% (188,362.88) Aaa / AA+ AAA 3.31 3.26 3135G04Z3 FNMA Note 0.500% Due 06/17/2025 9,905,000.00 06/17/2020 0.54% 9,884,496.65 9,890,802.78 98.03 1.08% 9,709,544.64 1,925.97 1.31% (181,258.14) Aaa / AA+ AAA 3.46 3.42 3137EAEU9 FHLMC Note 0.375% Due 07/21/2025 5,030,000.00 07/21/2020 0.48% 5,004,950.60 5,012,188.01 97.48 1.10% 4,903,218.85 8,383.33 0.66% (108,969.16) Aaa / AA+ AAA 3.56 3.51 3135G05X7 FNMA Note 0.375% Due 08/25/2025 7,945,000.00 08/25/2020 0.47% 7,907,817.40 7,917,846.92 97.29 1.14% 7,729,619.00 10,427.81 1.04% (188,227.92) Aaa / AA+ AAA 3.65 3.60 3137EAEX3 FHLMC Note 0.375% Due 09/23/2025 7,660,000.00 09/23/2020 0.44% 7,636,943.40 7,642,796.03 97.32 1.11% 7,454,329.00 7,819.58 1.01% (188,467.03) Aaa / AA+ AAA 3.73 3.68 3135G06G3 FNMA Note 0.500% Due 11/07/2025 8,255,000.00 11/09/2020 0.57% 8,225,447.10 8,232,182.11 97.59 1.14% 8,056,186.58 6,191.25 1.09% (175,995.53) Aaa / AA+ AAA 3.85 3.79 TOTAL Agency 159,590,000.00 1.43% 161,136,353.75 160,383,530.16 0.84% 161,575,546.23 577,011.02 21.85% 1,192,016.07 Aaa / AA+ Aaa 2.54 2.48 CMO 3137BFE98 FHLMC K041 A2 3.171% Due 10/25/2024 5,000,000.00 07/01/2021 0.72% 5,378,515.62 5,321,514.11 105.13 1.19% 5,256,360.00 13,212.50 0.71% (65,154.11) Aaa / AAA AAA 2.82 2.62 03215PFN4 AMRESCO Residential Securities 1999-1 A 1.041% Due 06/25/2029 119,021.64 05/20/2011 4.50% 89,377.81 106,763.89 99.21 1.41% 118,082.56 24.10 0.02% 11,318.67 NR / BBB BBB 7.49 0.03 3133TCE95 FHLMC FSPC E3 A 3.769% Due 08/15/2032 3,588.05 03/11/1998 3.73% 3,591.82 3,589.22 100.44 2.08% 3,603.86 11.27 0.00% 14.64 Aaa / AA+ AAA 10.63 0.91 31397QRE0 FNMA FNR 2011-3 FA 0.781% Due 02/25/2041 93,868.68 12/20/2010 0.78% 93,839.37 93,850.02 101.91 0.34% 95,661.57 12.22 0.01% 1,811.55 Aaa / AA+ AAA 19.17 0.14 31394JY35 FHLMC FSPC T-58 2A 6.500% Due 09/25/2043 460,244.11 06/09/2011 5.40% 521,226.45 501,293.79 114.10 0.68% 525,147.75 498.60 0.07% 23,853.96 Aaa / AA+ AAA 21.75 2.47 TOTAL CMO 5,676,722.48 1.18% 6,086,551.07 6,027,011.03 1.14% 5,998,855.74 13,758.69 0.81% (28,155.29) Aaa / AAA Aaa 4.83 2.52 Corporate 06406RAA5 Bank of NY Mellon Corp Callable Note Cont 1/7/2022 2.600% Due 02/07/2022 2,500,000.00 02/08/2017 2.56% 2,504,475.00 2,500,015.01 100.04 0.29% 2,500,940.00 26,000.00 0.34% 924.99 A1 / A AA- 0.10 0.02 69353RFB9 PNC Bank Callable Note Cont 1/18/2022 2.625% Due 02/17/2022 1,000,000.00 03/26/2018 3.32% 974,940.00 999,171.72 100.18 0.61% 1,001,773.00 9,770.83 0.14% 2,601.28 A2 / A A+ 0.13 0.09 As of December 31, 2021 43 I Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 084664BT7 Berkshire Hathaway Note 3.000% Due 05/15/2022 4,000,000.00 05/23/2017 2.30% 4,131,120.00 4,009,680.48 100.94 0.47% 4,037,564.00 15,333.33 0.55% 27,883.52 Aa2 / AA A+ 0.37 0.37 00440EAU1 Chubb INA Holdings Inc Callable Note Cont 9/3/2022 2.875% Due 11/03/2022 4,169,000.00 Various 2.54% 4,232,453.17 4,177,850.20 101.54 0.57% 4,233,231.78 19,310.58 0.57% 55,381.58 A3 / A A 0.84 0.67 90331HNL3 US Bank NA Callable Note Cont 12/23/2022 2.850% Due 01/23/2023 2,000,000.00 01/29/2018 2.93% 1,992,640.00 1,998,433.27 102.14 0.65% 2,042,728.00 25,016.67 0.28% 44,294.73 A1 / AA- AA- 1.06 0.96 808513AT2 Charles Schwab Corp Callable Note Cont 12/25/2022 2.650% Due 01/25/2023 6,750,000.00 05/21/2019 2.74% 6,729,480.00 6,744,056.38 101.85 0.75% 6,875,205.75 77,512.50 0.94% 131,149.37 A2 / A A 1.07 0.97 06406RAE7 Bank of NY Mellon Corp Callable Note Cont 12/29/2022 2.950% Due 01/29/2023 2,500,000.00 Various 3.03% 2,489,555.00 2,497,899.23 102.21 0.71% 2,555,320.00 31,138.89 0.35% 57,420.77 A1 / A AA- 1.08 0.97 00440EAP2 Chubb INA Holdings Inc Note 2.700% Due 03/13/2023 2,000,000.00 05/24/2018 3.42% 1,937,000.00 1,984,295.03 102.43 0.66% 2,048,594.00 16,200.00 0.28% 64,298.97 A3 / A A 1.20 1.18 084670BR8 Berkshire Hathaway Callable Note Cont 1/15/2023 2.750% Due 03/15/2023 2,500,000.00 04/20/2018 3.28% 2,440,950.00 2,485,518.53 102.11 0.71% 2,552,755.00 20,243.06 0.35% 67,236.47 Aa2 / AA A+ 1.20 1.02 58933YAF2 Merck & Co Note 2.800% Due 05/18/2023 2,000,000.00 10/26/2018 3.41% 1,948,640.00 1,984,477.59 102.95 0.65% 2,058,996.00 6,688.89 0.28% 74,518.41 A1 / A+ A+ 1.38 1.36 46625HRL6 JP Morgan Chase Callable Note Cont 3/18/2023 2.700% Due 05/18/2023 5,000,000.00 Various 3.59% 4,821,910.00 4,944,033.39 102.28 0.81% 5,113,830.00 16,125.00 0.69% 169,796.61 A2 / A- AA- 1.38 1.20 69353RFL7 PNC Bank Callable Note Cont 5/9/2023 3.500% Due 06/08/2023 5,000,000.00 Various 3.53% 4,993,318.05 4,998,083.24 103.76 0.71% 5,188,035.01 11,180.56 0.70% 189,951.77 A2 / A A+ 1.44 1.33 166764AH3 Chevron Corp Callable Note Cont 3/24/2023 3.191% Due 06/24/2023 3,500,000.00 11/08/2018 3.59% 3,441,095.00 3,481,146.20 102.97 0.76% 3,603,932.50 2,171.65 0.49% 122,786.30 Aa2 / AA- NR 1.48 1.21 931142EK5 Wal-Mart Stores Callable Note Cont 5/26/2023 3.400% Due 06/26/2023 3,880,000.00 Various 3.41% 3,878,991.40 3,879,701.02 104.03 0.51% 4,036,503.68 1,832.22 0.54% 156,802.66 Aa2 / AA AA 1.48 1.38 02665WCJ8 American Honda Finance Note 3.450% Due 07/14/2023 845,000.00 07/11/2018 3.49% 843,538.15 844,551.99 104.09 0.76% 879,594.30 13,523.52 0.12% 35,042.31 A3 / A- NR 1.53 1.48 89114QC48 Toronto Dominion Bank Note 3.500% Due 07/19/2023 5,000,000.00 02/26/2019 3.04% 5,094,200.00 5,033,164.04 104.22 0.76% 5,210,800.00 78,750.00 0.71% 177,635.96 Aa2 / AA- AA 1.55 1.49 02665WCQ2 American Honda Finance Note 3.625% Due 10/10/2023 2,000,000.00 Various 3.64% 1,998,320.00 1,999,396.15 104.84 0.87% 2,096,870.00 16,312.50 0.28% 97,473.85 A3 / A- NR 1.78 1.72 24422EUM9 John Deere Capital Corp Note 3.650% Due 10/12/2023 1,250,000.00 11/28/2018 3.64% 1,250,237.50 1,250,086.74 104.94 0.85% 1,311,805.00 10,012.15 0.18% 61,718.26 A2 / A A 1.78 1.72 As of December 31, 2021 44 I Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 06051GHF9 Bank of America Corp Callable Note 1X 3/5/2023 3.550% Due 03/05/2024 6,675,000.00 Various 2.77% 6,770,625.75 6,717,312.82 102.98 1.00% 6,873,888.30 76,354.59 0.94% 156,575.48 A2 / A- AA- 2.18 1.15 09247XAL5 Blackrock Inc Note 3.500% Due 03/18/2024 1,000,000.00 05/09/2019 2.69% 1,036,330.00 1,016,554.66 105.70 0.90% 1,056,964.00 10,013.89 0.14% 40,409.34 Aa3 / AA- NR 2.21 2.12 808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024 0.750% Due 03/18/2024 2,785,000.00 03/16/2021 0.77% 2,783,607.50 2,783,974.68 99.57 0.95% 2,773,049.57 5,976.15 0.37% (10,925.11) A2 / A A 2.21 2.18 458140BD1 Intel Corp Callable Note Cont 3/11/2024 2.875% Due 05/11/2024 5,000,000.00 05/09/2019 2.76% 5,025,900.00 5,011,746.03 104.13 0.97% 5,206,370.00 19,965.28 0.70% 194,623.97 A1 / A+ A+ 2.36 2.13 037833CU2 Apple Inc Callable Note Cont 3/11/2024 2.850% Due 05/11/2024 3,000,000.00 05/17/2019 2.72% 3,017,760.00 3,008,091.12 104.17 0.92% 3,125,130.00 11,875.00 0.42% 117,038.88 Aaa / AA+ NR 2.36 2.13 023135BW5 Amazon.com Inc Note 0.450% Due 05/12/2024 5,490,000.00 05/10/2021 0.50% 5,481,984.60 5,483,695.92 99.04 0.86% 5,437,197.18 3,362.63 0.73% (46,498.74) A1 / AA AA- 2.36 2.34 89114QCA4 Toronto Dominion Bank Note 2.650% Due 06/12/2024 3,000,000.00 06/12/2019 2.65% 3,000,570.00 3,000,278.91 103.75 1.09% 3,112,386.00 4,195.83 0.42% 112,107.09 A1 / A AA- 2.45 2.37 02665WCZ2 American Honda Finance Note 2.400% Due 06/27/2024 1,219,000.00 07/10/2019 2.49% 1,213,843.63 1,216,416.12 103.02 1.16% 1,255,830.87 325.07 0.17% 39,414.75 A3 / A- NR 2.49 2.42 79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022 0.625% Due 07/15/2024 1,350,000.00 06/29/2021 0.64% 1,349,311.50 1,349,419.88 99.09 0.99% 1,337,702.85 3,960.94 0.18% (11,717.03) A2 / A+ NR 2.54 2.50 78013XZU5 Royal Bank of Canada Note 2.550% Due 07/16/2024 6,500,000.00 09/10/2019 2.28% 6,581,445.00 6,542,679.21 103.34 1.21% 6,716,807.50 75,968.75 0.92% 174,128.29 A2 / A AA- 2.54 2.44 46647PAU0 JP Morgan Chase & Co Callable Note 1X 7/23/2023 3.797% Due 07/23/2024 2,500,000.00 09/12/2019 2.11% 2,632,175.00 2,569,667.86 104.23 1.06% 2,605,685.00 41,661.53 0.36% 36,017.14 A2 / A- AA- 2.56 1.50 90331HPL1 US Bank NA Callable Note Cont 12/21/2024 2.050% Due 01/21/2025 7,270,000.00 01/16/2020 2.10% 7,254,514.90 7,260,541.12 102.31 1.25% 7,438,075.13 66,237.78 1.01% 177,534.01 A1 / AA- AA- 3.06 2.86 037833AZ3 Apple Inc Note 2.500% Due 02/09/2025 3,922,000.00 07/14/2021 0.81% 4,154,496.16 4,124,364.37 104.10 1.15% 4,082,900.05 38,675.28 0.56% (41,464.32) Aaa / AA+ NR 3.11 2.97 00440EAS6 Chubb INA Holdings Inc Note 3.150% Due 03/15/2025 2,000,000.00 10/28/2020 0.78% 2,203,740.00 2,149,137.17 105.57 1.37% 2,111,432.00 18,550.00 0.29% (37,705.17) A3 / A A 3.21 3.03 06367WB85 Bank of Montreal Note 1.850% Due 05/01/2025 7,000,000.00 08/12/2021 0.96% 7,226,940.00 7,203,810.22 101.52 1.38% 7,106,372.00 21,583.33 0.96% (97,438.22) A2 / A- AA- 3.33 3.22 747525AF0 Qualcomm Inc Callable Note Cont 2/20/2025 3.450% Due 05/20/2025 5,790,000.00 Various 1.53% 6,161,513.40 6,154,936.53 106.60 1.44% 6,172,417.92 22,749.87 0.83% 17,481.39 A2 / A NR 3.39 3.20 61747YEA9 Morgan Stanley Callable Note Cont 5/30/2024 0.790% Due 05/30/2025 8,885,000.00 05/26/2021 0.73% 8,889,710.25 8,889,019.37 98.71 1.12% 8,770,561.20 6,044.28 1.18% (118,458.17) A1 / BBB+ A 3.41 3.36 As of December 31, 2021 45 I Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 438516CB0 Honeywell Intl Callable Note Cont 5/1/2025 1.350% Due 06/01/2025 5,000,000.00 06/23/2020 0.85% 5,119,000.00 5,081,707.51 100.44 1.21% 5,022,120.00 5,625.00 0.68% (59,587.51) A2 / A A 3.42 3.25 78015K7H1 Royal Bank of Canada Note 1.150% Due 06/10/2025 4,000,000.00 Various 1.10% 4,013,620.00 4,006,628.60 99.18 1.39% 3,967,180.00 2,683.33 0.53% (39,448.60) A2 / A AA- 3.44 3.36 06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025 2.015% Due 02/13/2026 2,500,000.00 03/04/2021 1.09% 2,583,450.00 2,569,611.09 101.33 1.40% 2,533,182.50 19,310.42 0.34% (36,428.59) A2 / A- AA- 4.12 3.92 46647PBH8 JP Morgan Chase & Co Callable Note Mthly 3/13/2025 2.005% Due 03/13/2026 3,500,000.00 Various 1.24% 3,602,345.00 3,582,689.72 101.22 1.61% 3,542,714.00 21,052.50 0.48% (39,975.72) A2 / A- AA- 4.20 3.08 91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026 1.150% Due 05/15/2026 1,755,000.00 Various 1.08% 1,760,683.15 1,760,042.91 98.97 1.39% 1,736,984.93 2,578.87 0.23% (23,057.98) A3 / A+ A 4.37 4.24 89236TJK2 Toyota Motor Credit Corp Note 1.125% Due 06/18/2026 7,285,000.00 06/15/2021 1.13% 7,281,794.60 7,282,140.42 98.54 1.46% 7,178,507.87 2,959.53 0.97% (103,632.55) A1 / A+ A+ 4.47 4.33 06051GJD2 Bank of America Corp Callable Note Cont 6/19/2025 1.319% Due 06/19/2026 2,250,000.00 06/24/2021 1.26% 2,254,432.50 2,253,976.32 98.98 1.53% 2,227,088.25 989.25 0.30% (26,888.07) A2 / A- AA- 4.47 4.32 58989V2D5 Met Tower Global Funding Note 1.250% Due 09/14/2026 3,745,000.00 09/07/2021 1.27% 3,741,554.60 3,741,760.27 97.89 1.72% 3,666,089.11 13,913.72 0.50% (75,671.16) Aa3 / AA- AA- 4.71 4.52 06368FAC3 Bank of Montreal Note 1.250% Due 09/15/2026 3,000,000.00 Various 1.29% 2,994,647.40 2,994,963.99 97.92 1.71% 2,937,600.00 11,041.67 0.40% (57,363.99) A2 / A- AA- 4.71 4.53 931142ER0 Wal-Mart Stores Callable Note Cont 08/17/2026 1.050% Due 09/17/2026 1,725,000.00 09/08/2021 1.09% 1,721,739.75 1,721,929.01 98.94 1.28% 1,706,649.45 5,232.50 0.23% (15,279.56) Aa2 / AA AA 4.72 4.56 TOTAL Corporate 164,040,000.00 2.04% 165,560,597.96 165,288,656.04 1.05% 167,049,363.70 910,009.34 22.63% 1,760,707.66 A1 / A+ A+ 2.53 2.33 Money Market Fund 31846V567 First American Govt Obligation MMKT Class-Z 14,559,938.20 Various 0.03% 14,559,938.20 14,559,938.20 1.00 0.03% 14,559,938.20 0.00 1.96% 0.00 Aaa / AAA AAA 0.00 0.00 TOTAL Money Market Fund 14,559,938.20 0.03% 14,559,938.20 14,559,938.20 0.03% 14,559,938.20 0.00 1.96% 0.00 Aaa / AAA Aaa 0.00 0.00 Mortgage Pass Thru 36225CAZ9 GNMA Pool# G2 80023 1.610% Due 12/20/2026 8,993.75 08/08/1997 1.51% 9,142.69 9,018.98 103.33 0.34% 9,293.38 12.07 0.00% 274.40 Aaa / AA+ AAA 4.97 2.29 As of December 31, 2021 46 I Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 36225CC20 GNMA Pool# G2 80088 1.590% Due 06/20/2027 6,353.93 08/11/1997 1.46% 6,492.93 6,379.40 101.16 1.30% 6,427.94 8.42 0.00% 48.54 Aaa / AA+ AAA 5.47 1.80 31348SWZ3 FHLMC FH 786064 2.227% Due 01/01/2028 1,319.78 02/18/2000 2.41% 1,287.64 1,312.86 100.37 2.21% 1,324.66 2.45 0.00% 11.80 Aaa / AA+ AAA 6.01 0.96 31371NUC7 FNMA FN 257179 4.500% Due 04/01/2028 6,617.66 12/05/2011 3.72% 6,998.84 6,763.73 107.03 1.13% 7,082.84 24.82 0.00% 319.11 Aaa / AA+ AAA 6.25 2.13 31417YAY3 FNMA Pool# FN MA0022 4.500% Due 04/01/2029 8,299.67 12/05/2011 3.76% 8,777.71 8,499.89 107.09 1.40% 8,887.89 31.12 0.00% 388.00 Aaa / AA+ AAA 7.25 2.33 3138EG6F6 FNMA FN AL0869 4.500% Due 06/01/2029 4,907.32 12/05/2011 3.77% 5,189.98 5,027.28 107.05 1.47% 5,253.46 4.29 0.00% 226.18 Aaa / AA+ AAA 7.42 2.37 36225CNM4 GNMA Pool# G2 80395 1.590% Due 04/20/2030 3,474.65 03/15/2000 1.65% 3,443.15 3,465.91 103.26 0.39% 3,587.96 4.60 0.00% 122.05 Aaa / AA+ AAA 8.31 2.26 36225CN28 GNMA Pool# G2 80408 1.590% Due 05/20/2030 29,387.18 03/15/2000 1.65% 29,088.70 29,303.76 103.31 0.73% 30,359.81 38.94 0.00% 1,056.05 Aaa / AA+ AAA 8.39 2.95 31403GXF4 FNMA Pool# FN 748678 5.000% Due 10/01/2033 787.84 06/10/2013 4.16% 846.92 822.18 110.00 2.02% 866.63 3.28 0.00% 44.45 Aaa / AA+ AAA 11.76 3.37 36225DCB8 GNMA Pool# G2 80965 1.590% Due 07/20/2034 25,096.96 07/19/2004 1.59% 25,081.28 25,090.38 103.64 0.91% 26,010.84 33.25 0.00% 920.46 Aaa / AA+ AAA 12.56 4.04 31406XWT5 FNMA Pool# FN 823358 1.988% Due 02/01/2035 55,226.40 01/11/2006 2.04% 54,794.93 55,031.87 104.15 0.77% 57,516.53 91.47 0.01% 2,484.66 Aaa / AA+ AAA 13.10 0.93 31406PQY8 FNMA Pool# FN 815971 5.000% Due 03/01/2035 78,209.75 06/10/2013 4.21% 84,075.49 81,779.39 113.01 1.36% 88,383.27 325.87 0.01% 6,603.88 Aaa / AA+ AAA 13.17 3.58 31407BXH7 FNMA Pool# FN 826080 5.000% Due 07/01/2035 10,711.73 06/10/2013 4.22% 11,515.10 11,205.41 113.02 1.36% 12,106.19 44.63 0.00% 900.78 Aaa / AA+ AAA 13.51 3.58 31376KT22 FNMA FN 357969 5.000% Due 09/01/2035 57,250.53 06/10/2013 4.22% 61,544.31 59,901.81 113.15 1.39% 64,780.58 55.66 0.01% 4,878.77 Aaa / AA+ AAA 13.68 3.64 31403DJZ3 FNMA Pool #745580 5.000% Due 06/01/2036 53,293.89 06/10/2013 4.26% 57,290.93 55,812.07 112.94 1.46% 60,189.59 222.06 0.01% 4,377.52 Aaa / AA+ AAA 14.43 3.65 31410F4V4 FNMA Pool# FN 888336 5.000% Due 07/01/2036 89,715.57 06/10/2013 4.25% 96,444.26 93,963.62 112.97 1.41% 101,352.76 373.81 0.01% 7,389.14 Aaa / AA+ AAA 14.51 3.61 TOTAL Mortgage Pass Thru 439,646.61 3.51% 462,014.86 453,378.54 1.23% 483,424.33 1,276.74 0.07% 30,045.79 Aaa / AA+ Aaa 12.75 3.15 Negotiable CD 65558UBJ0 Nordea Bank APB New York Yankee CD 0.210% Due 05/16/2022 7,000,000.00 05/19/2021 0.20% 7,000,702.07 7,000,261.82 100.03 0.13% 7,002,212.00 9,473.33 0.94% 1,950.18 P-1 / A-1+ F-1+ 0.37 0.37 As of December 31, 2021 47 I Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 06417MQL2 Bank of Nova Scotia Houston Yankee CD 0.200% Due 06/23/2022 5,000,000.00 06/29/2021 0.20% 4,999,999.61 4,999,999.81 99.95 0.31% 4,997,385.00 5,333.33 0.67% (2,614.81) P-1 / A-1 F-1+ 0.48 0.48 86959RTW0 Svenska Handelsbanken NY Yankee CD 0.255% Due 10/14/2022 6,000,000.00 10/15/2021 0.25% 6,000,302.58 6,000,237.74 99.91 0.36% 5,994,882.00 3,315.00 0.81% (5,355.74) P-1 / A-1+ F-1+ 0.79 0.78 TOTAL Negotiable CD 18,000,000.00 0.22% 18,001,004.26 18,000,499.37 0.26% 17,994,479.00 18,121.66 2.43% (6,020.37) Aaa / AAA Aaa 0.54 0.54 Supranational 4581X0CW6 Inter-American Dev Bank Note 2.125% Due 01/18/2022 3,000,000.00 01/10/2017 2.15% 2,996,310.00 2,999,965.65 100.07 0.55% 3,002,220.00 28,864.58 0.41% 2,254.35 Aaa / NR AAA 0.05 0.05 459058FY4 Intl. Bank Recon & Development Note 2.000% Due 01/26/2022 10,000,000.00 Various 1.99% 10,006,350.00 10,000,065.67 100.10 0.54% 10,010,100.00 86,111.12 1.36% 10,034.33 Aaa / NR AAA 0.07 0.07 4581X0CZ9 Inter-American Dev Bank Note 1.750% Due 09/14/2022 6,500,000.00 Various 2.65% 6,249,655.00 6,461,599.54 100.95 0.40% 6,561,503.00 33,809.02 0.89% 99,903.46 Aaa / AAA AAA 0.70 0.70 4581X0DZ8 Inter-American Dev Bank Note 0.500% Due 09/23/2024 10,775,000.00 09/15/2021 0.52% 10,767,026.50 10,767,754.01 98.68 0.99% 10,632,231.25 14,665.97 1.43% (135,522.76) Aaa / AAA NR 2.73 2.70 459058JB0 Intl. Bank Recon & Development Note 0.625% Due 04/22/2025 6,245,000.00 04/15/2020 0.70% 6,220,831.85 6,229,024.67 98.37 1.13% 6,143,268.95 7,480.99 0.83% (85,755.72) Aaa / AAA NR 3.31 3.26 4581X0DN5 Inter-American Dev Bank Note 0.625% Due 07/15/2025 5,050,000.00 01/13/2021 0.53% 5,071,967.50 5,067,271.65 98.16 1.16% 4,957,004.25 14,553.82 0.67% (110,267.40) Aaa / AAA NR 3.54 3.47 459058JL8 Intl. Bank Recon & Development Note 0.500% Due 10/28/2025 15,000,000.00 Various 0.55% 14,964,951.60 14,971,798.50 97.46 1.18% 14,619,285.00 13,125.00 1.97% (352,513.50) Aaa / AAA AAA 3.83 3.77 4581X0DV7 Inter-American Dev Bank Note 0.875% Due 04/20/2026 13,370,000.00 04/13/2021 0.97% 13,308,765.40 13,317,350.32 98.44 1.25% 13,160,799.61 23,072.53 1.78% (156,550.71) Aaa / AAA AAA 4.30 4.20 TOTAL Supranational 69,940,000.00 1.11% 69,585,857.85 69,814,830.01 0.96% 69,086,412.06 221,683.03 9.34% (728,417.95) Aaa / AAA Aaa 2.67 2.62 US Treasury 912796U23 US Treasury Bill 0.110% Due 04/26/2022 10,000,000.00 12/27/2021 0.11% 9,996,363.89 9,996,486.11 99.96 0.11% 9,996,486.11 0.00 1.35% 0.00 P-1 / A-1+ F-1+ 0.32 0.32 912828L57 US Treasury Note 1.750% Due 09/30/2022 6,500,000.00 Various 1.98% 6,427,954.10 6,489,322.78 101.07 0.32% 6,569,316.00 29,062.51 0.89% 79,993.22 Aaa / AA+ AAA 0.75 0.74 912828M80 US Treasury Note 2.000% Due 11/30/2022 8,000,000.00 12/22/2017 2.25% 7,907,500.00 7,982,887.50 101.45 0.41% 8,115,936.00 14,065.93 1.10% 133,048.50 Aaa / AA+ AAA 0.92 0.91 912828N30 US Treasury Note 2.125% Due 12/31/2022 5,000,000.00 01/24/2018 2.44% 4,926,562.50 4,985,157.55 101.66 0.46% 5,083,010.00 293.51 0.68% 97,852.45 Aaa / AA+ AAA 1.00 0.99 As of December 31, 2021 48 I Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 91282CBG5 US Treasury Note 0.125% Due 01/31/2023 10,000,000.00 03/29/2021 0.14% 9,998,046.88 9,998,851.96 99.66 0.44% 9,965,620.00 5,230.98 1.34% (33,231.96) Aaa / AA+ AAA 1.08 1.08 9128284D9 US Treasury Note 2.500% Due 03/31/2023 10,000,000.00 Various 2.75% 9,887,265.63 9,971,624.22 102.47 0.51% 10,246,880.00 63,873.63 1.39% 275,255.78 Aaa / AA+ AAA 1.25 1.23 912828R69 US Treasury Note 1.625% Due 05/31/2023 5,000,000.00 05/30/2018 2.67% 4,757,226.56 4,931,528.85 101.51 0.55% 5,075,585.00 7,142.86 0.68% 144,056.15 Aaa / AA+ AAA 1.41 1.40 912828U57 US Treasury Note 2.125% Due 11/30/2023 15,000,000.00 Various 2.53% 14,723,632.81 14,890,643.83 102.70 0.71% 15,404,295.00 28,021.98 2.08% 513,651.17 Aaa / AA+ AAA 1.92 1.88 91282CBA8 US Treasury Note 0.125% Due 12/15/2023 6,500,000.00 12/29/2020 0.17% 6,491,367.19 6,494,300.75 98.86 0.71% 6,426,114.50 379.46 0.87% (68,186.25) Aaa / AA+ AAA 1.96 1.95 91282CDR9 US Treasury Note 0.750% Due 12/31/2023 7,500,000.00 12/28/2021 0.75% 7,500,292.97 7,500,292.57 100.04 0.73% 7,502,640.00 155.39 1.01% 2,347.43 Aaa / AA+ AAA 2.00 1.98 912828V80 US Treasury Note 2.250% Due 01/31/2024 7,500,000.00 Various 2.27% 7,491,503.91 7,496,299.89 103.09 0.75% 7,731,442.50 70,618.20 1.05% 235,142.61 Aaa / AA+ AAA 2.08 2.02 912828W48 US Treasury Note 2.125% Due 02/29/2024 10,000,000.00 04/24/2019 2.32% 9,911,718.75 9,960,669.73 102.89 0.78% 10,288,670.00 72,203.04 1.40% 328,000.27 Aaa / AA+ AAA 2.16 2.10 912828WJ5 US Treasury Note 2.500% Due 05/15/2024 7,000,000.00 06/10/2019 1.91% 7,193,046.88 7,092,769.75 103.90 0.84% 7,273,161.00 22,720.99 0.98% 180,391.25 Aaa / AA+ AAA 2.37 2.30 912828XX3 US Treasury Note 2.000% Due 06/30/2024 5,000,000.00 07/12/2019 1.88% 5,028,710.94 5,014,434.69 102.81 0.86% 5,140,625.00 276.24 0.69% 126,190.31 Aaa / AA+ AAA 2.50 2.44 912828WU0 US Treasury Inflation Index Note 0.125% Due 07/15/2024 12,111,216.00 Various 0.22% 11,999,881.93 12,082,869.74 106.61 (2.38%) 12,911,452.47 6,993.57 1.74% 828,582.73 Aaa / AA+ AAA 2.54 2.57 91282CCX7 US Treasury Note 0.375% Due 09/15/2024 10,500,000.00 Various 0.81% 10,377,363.28 10,378,940.68 98.61 0.90% 10,353,987.00 11,747.23 1.40% (24,953.68) Aaa / AA+ AAA 2.71 2.68 912828YH7 US Treasury Note 1.500% Due 09/30/2024 14,000,000.00 Various 1.72% 13,859,296.88 13,919,234.36 101.60 0.91% 14,224,224.00 53,653.85 1.92% 304,989.64 Aaa / AA+ AAA 2.75 2.68 9128283J7 US Treasury Note 2.125% Due 11/30/2024 16,500,000.00 Various 1.76% 16,783,886.72 16,667,067.04 103.36 0.95% 17,054,944.50 30,824.18 2.30% 387,877.46 Aaa / AA+ AAA 2.92 2.83 912828ZL7 US Treasury Note 0.375% Due 04/30/2025 12,000,000.00 Various 0.38% 11,998,515.63 11,998,973.65 97.81 1.04% 11,737,500.00 7,707.19 1.58% (261,473.65) Aaa / AA+ AAA 3.33 3.29 91282CAM3 US Treasury Note 0.250% Due 09/30/2025 6,500,000.00 10/16/2020 0.32% 6,477,656.25 6,483,084.53 96.88 1.10% 6,296,875.00 4,151.79 0.85% (186,209.53) Aaa / AA+ AAA 3.75 3.71 91282CBC4 US Treasury Note 0.375% Due 12/31/2025 10,000,000.00 Various 0.49% 9,943,320.32 9,952,489.85 96.97 1.15% 9,697,270.00 103.59 1.31% (255,219.85) Aaa / AA+ AAA 4.00 3.95 91282CBH3 US Treasury Note 0.375% Due 01/31/2026 18,000,000.00 Various 0.63% 17,781,875.00 17,818,395.30 96.79 1.18% 17,422,038.00 28,247.28 2.35% (396,357.30) Aaa / AA+ AAA 4.09 4.03 As of December 31, 2021 49 I Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 91282CBT7 US Treasury Note 0.750% Due 03/31/2026 10,000,000.00 Various 0.87% 9,943,359.37 9,951,812.92 98.15 1.20% 9,815,230.00 19,162.09 1.32% (136,582.92) Aaa / AA+ AAA 4.25 4.15 91282CCF6 US Treasury Note 0.750% Due 05/31/2026 7,500,000.00 06/18/2021 0.91% 7,443,750.00 7,449,795.71 98.00 1.22% 7,350,000.00 4,945.05 0.99% (99,795.71) Aaa / AA+ AAA 4.42 4.32 91282CCW9 US Treasury Note 0.750% Due 08/31/2026 8,000,000.00 Various 1.08% 7,874,375.01 7,879,525.04 97.82 1.23% 7,825,624.00 20,386.74 1.06% (53,901.04) Aaa / AA+ AAA 4.67 4.55 91282CDG3 US Treasury Note 1.125% Due 10/31/2026 19,250,000.00 Various 1.27% 19,119,013.68 19,120,625.08 99.40 1.25% 19,134,192.00 37,090.82 2.58% 13,566.92 Aaa / AA+ AAA 4.84 4.68 TOTAL US Treasury 257,361,216.00 1.28% 255,843,487.08 256,508,084.08 0.69% 258,643,118.08 539,058.10 34.92% 2,135,034.00 Aaa / AA+ Aaa 2.72 2.66 TOTAL PORTFOLIO 734,404,033.41 1.38% 736,026,783.74 735,828,098.10 0.82% 739,934,201.75 2,291,576.14 100.00% 4,106,103.65 Aa1 / AA+ Aaa 2.58 2.37 TOTAL MARKET VALUE PLUS ACCRUALS 742,225,777.89 As of December 31, 2021 50 I Holdings Report Orange County Sanitation District Liquid - Account #10282 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration Commercial Paper 62479MAM5 MUFG Bank Ltd/NY Discount CP 0.140% Due 01/21/2022 2,000,000.00 04/27/2021 0.14% 1,997,907.78 1,999,844.44 99.99 0.14% 1,999,844.44 0.00 0.87% 0.00 P-1 / A-1 NR 0.06 0.06 89233HAU8 Toyota Motor Credit Discount CP 0.150% Due 01/28/2022 4,000,000.00 05/24/2021 0.15% 3,995,866.67 3,999,550.00 99.99 0.15% 3,999,550.00 0.00 1.73% 0.00 P-1 / A-1+ F-1 0.08 0.08 TOTAL Commercial Paper 6,000,000.00 0.15% 5,993,774.45 5,999,394.44 0.15% 5,999,394.44 0.00 2.60% 0.00 P-1 / A-1 F-1 0.07 0.07 Corporate 14913Q2T5 Caterpillar Finl Service Note 2.950% Due 02/26/2022 2,000,000.00 05/06/2021 0.20% 2,043,700.00 2,008,380.82 100.37 0.54% 2,007,352.00 20,486.11 0.88% (1,028.82) A2 / A A 0.16 0.15 61744YAH1 Morgan Stanley Note 2.750% Due 05/19/2022 2,000,000.00 06/15/2021 0.19% 2,047,260.00 2,019,352.76 100.90 0.41% 2,017,900.00 6,416.67 0.88% (1,452.76) A1 / BBB+ A 0.38 0.38 02665WDF5 American Honda Finance Note 1.950% Due 05/20/2022 2,000,000.00 06/16/2021 0.17% 2,032,780.00 2,013,560.77 100.57 0.46% 2,011,466.00 4,441.67 0.87% (2,094.77) A3 / A- NR 0.38 0.39 05531FBG7 Truist Financial Corporation Callable Note Cont 5/20/2022 3.050% Due 06/20/2022 2,000,000.00 07/01/2021 0.21% 2,049,420.00 2,021,601.82 100.98 0.50% 2,019,612.00 1,863.89 0.88% (1,989.82) A3 / A- A 0.47 0.39 TOTAL Corporate 8,000,000.00 0.19% 8,173,160.00 8,062,896.17 0.48% 8,056,330.00 33,208.34 3.50% (6,566.17) A2 / A- A 0.35 0.33 Money Market Fund 31846V567 First American Govt Obligation MMKT Class-Z 8,073,528.50 Various 0.03% 8,073,528.50 8,073,528.50 1.00 0.03% 8,073,528.50 0.00 3.50% 0.00 Aaa / AAA AAA 0.00 0.00 TOTAL Money Market Fund 8,073,528.50 0.03% 8,073,528.50 8,073,528.50 0.03% 8,073,528.50 0.00 3.50% 0.00 Aaa / AAA Aaa 0.00 0.00 Negotiable CD 06417MNK7 Bank of Nova Scotia Houston Yankee CD 0.220% Due 04/08/2022 3,000,000.00 04/09/2021 0.22% 3,000,000.00 3,000,000.00 100.00 0.23% 2,999,931.00 4,895.00 1.30% (69.00) P-1 / A-1 F-1+ 0.27 0.27 89114W7M1 Toronto Dominion Yankee CD 0.240% Due 04/28/2022 2,000,000.00 04/29/2021 0.24% 1,999,999.94 1,999,999.98 100.00 0.23% 2,000,076.00 3,306.67 0.87% 76.02 P-1 / A-1 F-1+ 0.32 0.32 86959RQE3 Svenska Handelsbanken NY Yankee CD 0.230% Due 05/10/2022 3,000,000.00 08/26/2021 0.17% 3,001,280.93 3,000,642.96 100.01 0.20% 3,000,354.00 4,523.33 1.30% (288.96) P-1 / A-1+ F-1+ 0.36 0.36 As of December 31, 2021 51 I Holdings Report Orange County Sanitation District Liquid - Account #10282 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 65558UBJ0 Nordea Bank APB New York Yankee CD 0.210% Due 05/16/2022 3,000,000.00 05/19/2021 0.20% 3,000,300.89 3,000,112.21 100.03 0.13% 3,000,948.00 4,060.00 1.30% 835.79 P-1 / A-1+ F-1+ 0.37 0.37 TOTAL Negotiable CD 11,000,000.00 0.20% 11,001,581.76 11,000,755.15 0.19% 11,001,309.00 16,785.00 4.77% 553.85 Aaa / AAA Aaa 0.33 0.33 US Treasury 912828H86 US Treasury Note 1.500% Due 01/31/2022 27,500,000.00 Various 0.06% 27,691,210.94 27,532,351.49 100.11 0.19% 27,530,222.50 172,622.28 12.00% (2,128.99) Aaa / AA+ AAA 0.08 0.08 912828Z60 US Treasury Note 1.375% Due 01/31/2022 40,000,000.00 Various 0.05% 40,226,757.82 40,043,147.71 100.10 0.19% 40,039,840.00 230,163.04 17.44% (3,307.71) Aaa / AA+ AAA 0.08 0.08 912796D30 US Treasury Bill 0.047% Due 02/24/2022 12,000,000.00 08/30/2021 0.05% 11,997,256.50 11,999,163.00 99.99 0.05% 11,999,163.00 0.00 5.20% 0.00 P-1 / A-1+ F-1+ 0.15 0.15 912828J43 US Treasury Note 1.750% Due 02/28/2022 7,500,000.00 04/29/2021 0.05% 7,606,054.69 7,520,234.12 100.26 0.14% 7,519,657.50 44,595.99 3.28% (576.62) Aaa / AA+ AAA 0.16 0.16 9128286H8 US Treasury Note 2.375% Due 03/15/2022 7,500,000.00 04/29/2021 0.06% 7,651,757.81 7,534,728.28 100.45 0.17% 7,533,832.50 53,142.27 3.29% (895.78) Aaa / AA+ AAA 0.20 0.20 9128286M7 US Treasury Note 2.250% Due 04/15/2022 7,500,000.00 04/29/2021 0.06% 7,657,324.22 7,546,747.77 100.60 0.18% 7,544,760.00 36,160.71 3.28% (1,987.77) Aaa / AA+ AAA 0.29 0.29 912796U23 US Treasury Bill 0.107% Due 04/26/2022 10,000,000.00 12/27/2021 0.11% 9,996,463.06 9,996,581.95 99.97 0.11% 9,996,581.95 0.00 4.33% 0.00 P-1 / A-1+ F-1+ 0.32 0.32 912828ZM5 US Treasury Note 0.125% Due 04/30/2022 25,000,000.00 Various 0.06% 25,014,746.10 25,005,339.01 100.00 0.12% 25,000,650.00 5,352.20 10.83% (4,689.01) Aaa / AA+ AAA 0.33 0.33 912796R43 US Treasury Bill 0.185% Due 06/23/2022 10,000,000.00 12/27/2021 0.19% 9,990,904.17 9,991,109.73 99.91 0.19% 9,991,109.73 0.00 4.33% 0.00 P-1 / A-1+ F-1+ 0.48 0.48 912828ZX1 US Treasury Note 0.125% Due 06/30/2022 7,000,000.00 Various 0.16% 6,998,750.00 6,998,845.69 99.96 0.20% 6,997,263.00 24.18 3.03% (1,582.69) Aaa / AA+ AAA 0.50 0.50 912796R50 US Treasury Bill 0.206% Due 06/30/2022 13,000,000.00 12/28/2021 0.21% 12,986,494.08 12,986,642.50 99.90 0.21% 12,986,642.50 0.00 5.63% 0.00 P-1 / A-1+ F-1+ 0.50 0.50 91282CAC5 US Treasury Note 0.125% Due 07/31/2022 30,000,000.00 Various 0.20% 29,986,523.43 29,986,682.21 99.93 0.25% 29,978,910.00 15,692.94 12.99% (7,772.21) Aaa / AA+ AAA 0.58 0.58 TOTAL US Treasury 197,000,000.00 0.10% 197,804,242.82 197,141,573.46 0.18% 197,118,632.68 557,753.61 85.63% (22,940.78) Aaa / AA+ Aaa 0.28 0.28 TOTAL PORTFOLIO 230,073,528.50 0.11% 231,046,287.53 230,278,147.72 0.18% 230,249,194.62 607,746.95 100.00% (28,953.10) Aaa / AA+ Aaa 0.27 0.27 TOTAL MARKET VALUE PLUS ACCRUALS 230,856,941.57 As of December 31, 2021 52 I Holdings Report OC SAN Lehman Exposure - Account #10284 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration Common Stock SLHOPNTA4 Lehman Brothers, Inc Open Position Long Exposure 0.000% Due 12/31/2021 60,641.49 11/21/2014 0.00% 57,842.64 57,842.64 0.42 0.00% 25,621.03 0.00 64.18% (32,221.61) NR / NR NR 0.00 0.00 TOTAL Common Stock 60,641.49 0.00% 57,842.64 57,842.64 0.00% 25,621.03 0.00 64.18% (32,221.61) NR / NR NR 0.00 0.00 Corporate 525ESCIB7 Lehman Brothers Note-Defaulted 0.000% Due 01/24/2022 600,000.00 09/19/2008 0.00% 316,428.27 316,428.27 0.55 0.00% 3,300.00 0.00 8.27% (313,128.27) NR / NR NR 0.07 0.00 525ESC0Y6 Lehman Brothers Note-Defaulted 0.000% Due 10/22/2049 2,000,000.00 09/18/2008 0.00% 1,019,380.10 1,019,380.10 0.55 0.00% 11,000.00 0.00 27.55% (1,008,380.10) NR / NR NR 27.83 0.00 TOTAL Corporate 2,600,000.00 0.00% 1,335,808.37 1,335,808.37 0.00% 14,300.00 0.00 35.82% (1,321,508.37) NR / NR NR 21.42 0.00 TOTAL PORTFOLIO 2,660,641.49 0.00% 1,393,651.01 1,393,651.01 0.00% 39,921.03 0.00 100.00% (1,353,729.98) NR / NR NR 7.67 0.00 TOTAL MARKET VALUE PLUS ACCRUALS 39,921.03 As of December 31, 2021 53 I SECTION |Section 5 |Transactions 54 Transaction Ledger Orange County Sanitation District Long Term - Account #10268 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 10/15/2021 86959RTW0 6,000,000.00 Svenska Handelsbanken NY Yankee CD 0.255% Due: 10/14/2022 100.005 0.25%6,000,302.58 0.00 6,000,302.58 0.00 Purchase 10/21/2021 362554AC1 1,705,000.00 GM Financial Securitized Term 2021-4 A3 0.68% Due: 09/16/2026 99.997 0.68%1,704,956.52 0.00 1,704,956.52 0.00 Purchase 10/28/2021 91282CCW9 5,000,000.00 US Treasury Note 0.75% Due: 08/31/2026 98.195 1.13%4,909,765.63 6,008.29 4,915,773.92 0.00 Purchase 11/17/2021 44935FAD6 1,600,000.00 Hyundai Auto Receivables Trust 2021-C A3 0.74% Due: 05/15/2026 99.978 0.75%1,599,642.88 0.00 1,599,642.88 0.00 Purchase 11/17/2021 91282CDG3 3,000,000.00 US Treasury Note 1.125% Due: 10/31/2026 99.316 1.27%2,979,492.19 1,584.94 2,981,077.13 0.00 Purchase 11/24/2021 43815GAC3 2,290,000.00 Honda Auto Receivables Trust 2021-4 A3 0.88% Due: 01/21/2026 99.979 0.89%2,289,517.27 0.00 2,289,517.27 0.00 Purchase 11/26/2021 91282CDG3 4,500,000.00 US Treasury Note 1.125% Due: 10/31/2026 98.988 1.34%4,454,472.66 3,636.05 4,458,108.71 0.00 Purchase 11/29/2021 747525AF0 3,790,000.00 Qualcomm Inc Callable Note Cont 2/20/2025 3.45% Due: 05/20/2025 106.346 1.57%4,030,513.40 3,268.88 4,033,782.28 0.00 Purchase 12/22/2021 91282CDG3 4,250,000.00 US Treasury Note 1.125% Due: 10/31/2026 99.520 1.23%4,229,580.08 6,868.09 4,236,448.17 0.00 Purchase 12/27/2021 78015K7H1 1,500,000.00 Royal Bank of Canada Note 1.15% Due: 06/10/2025 99.060 1.43%1,485,900.00 814.58 1,486,714.58 0.00 Purchase 12/28/2021 912796U23 10,000,000.00 US Treasury Bill 0.11% Due: 04/26/2022 99.964 0.11%9,996,363.89 0.00 9,996,363.89 0.00 Purchase 12/29/2021 747525AF0 2,000,000.00 Qualcomm Inc Callable Note Cont 2/20/2025 3.45% Due: 05/20/2025 106.550 1.46%2,131,000.00 7,475.00 2,138,475.00 0.00 Purchase 12/29/2021 91282CCX7 7,500,000.00 US Treasury Note 0.375% Due: 09/15/2024 98.559 0.91%7,391,894.53 8,157.80 7,400,052.33 0.00 Purchase 12/29/2021 91282CDG3 7,500,000.00 US Treasury Note 1.125% Due: 10/31/2026 99.406 1.25%7,455,468.75 13,751.73 7,469,220.48 0.00 Purchase 12/31/2021 91282CDR9 7,500,000.00 US Treasury Note 0.75% Due: 12/31/2023 100.004 0.75%7,500,292.97 0.00 7,500,292.97 0.00 Subtotal 68,135,000.00 68,159,163.35 51,565.36 68,210,728.71 0.00 September 30, 2021 through December 31, 2021 As of December 31, 2021 55 I Transaction Ledger Orange County Sanitation District Long Term - Account #10268 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Security Contribution 10/27/2021 912828WU0 13,104.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 13,104.00 4.63 13,108.63 0.00 Security Contribution 10/31/2021 912828WU0 12,792.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 12,792.00 4.69 12,796.69 0.00 Security Contribution 11/30/2021 912828WU0 32,240.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 32,240.00 15.22 32,255.22 0.00 Security Contribution 12/31/2021 912828WU0 97,656.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 97,656.00 0.00 97,656.00 0.00 Subtotal 155,792.00 155,792.00 24.54 155,816.54 0.00 TOTAL ACQUISITIONS 68,290,792.00 68,314,955.35 51,589.90 68,366,545.25 0.00 DISPOSITIONS Sale 10/15/2021 3135G0T45 5,000,000.00 FNMA Note 1.875% Due: 04/05/2022 100.860 1.99%5,043,000.00 2,604.17 5,045,604.17 45,638.04 Sale 10/15/2021 912828L24 1,000,000.00 US Treasury Note 1.875% Due: 08/31/2022 101.566 1.92%1,015,664.06 2,330.80 1,017,994.86 16,024.98 Sale 10/28/2021 912828L24 1,500,000.00 US Treasury Note 1.875% Due: 08/31/2022 101.484 1.92%1,522,265.63 4,506.22 1,526,771.85 22,785.01 Sale 10/28/2021 912828L57 3,500,000.00 US Treasury Note 1.75% Due: 09/30/2022 101.504 1.95%3,552,636.72 4,711.54 3,557,348.26 59,759.90 Subtotal 11,000,000.00 11,133,566.41 14,152.73 11,147,719.14 144,207.93 September 30, 2021 through December 31, 2021 As of December 31, 2021 Maturity 11/24/2021 06417MMB8 5,000,000.00 Bank of Nova Scotia Houston Yankee CD 0.28% Due: 11/24/2021 100.000 5,000,000.00 14,155.56 5,014,155.56 0.00 Subtotal 5,000,000.00 5,000,000.00 14,155.56 5,014,155.56 0.00 TOTAL DISPOSITIONS 16,000,000.00 16,133,566.41 28,308.29 16,161,874.70 144,207.93 56 I Transaction Ledger Orange County Sanitation District Liquid - Account #10282 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 11/12/2021 912828Z60 5,000,000.00 US Treasury Note 1.375% Due: 01/31/2022 100.285 0.06%5,014,257.81 19,429.35 5,033,687.16 0.00 Purchase 11/16/2021 912828H86 5,000,000.00 US Treasury Note 1.5% Due: 01/31/2022 100.293 0.08%5,014,648.44 22,010.87 5,036,659.31 0.00 Purchase 11/16/2021 912828Z60 5,000,000.00 US Treasury Note 1.375% Due: 01/31/2022 100.273 0.05%5,013,671.88 20,176.63 5,033,848.51 0.00 Purchase 11/19/2021 912828Z60 5,000,000.00 US Treasury Note 1.375% Due: 01/31/2022 100.262 0.06%5,013,085.94 20,737.09 5,033,823.03 0.00 Purchase 11/30/2021 912828Z60 5,000,000.00 US Treasury Note 1.375% Due: 01/31/2022 100.223 0.05%5,011,132.81 22,792.12 5,033,924.93 0.00 Purchase 12/14/2021 912828ZX1 5,000,000.00 US Treasury Note 0.125% Due: 06/30/2022 99.984 0.15%4,999,218.75 2,836.28 5,002,055.03 0.00 Purchase 12/22/2021 912828ZX1 2,000,000.00 US Treasury Note 0.125% Due: 06/30/2022 99.977 0.17%1,999,531.25 1,188.86 2,000,720.11 0.00 Purchase 12/28/2021 912796R43 10,000,000.00 US Treasury Bill 0.185% Due: 06/23/2022 99.909 0.19%9,990,904.17 0.00 9,990,904.17 0.00 Purchase 12/28/2021 912796U23 10,000,000.00 US Treasury Bill 0.107% Due: 04/26/2022 99.965 0.11%9,996,463.06 0.00 9,996,463.06 0.00 Purchase 12/28/2021 91282CAC5 10,000,000.00 US Treasury Note 0.125% Due: 07/31/2022 99.953 0.20%9,995,312.50 5,095.11 10,000,407.61 0.00 Purchase 12/30/2021 912796R50 13,000,000.00 US Treasury Bill 0.206% Due: 06/30/2022 99.896 0.21%12,986,494.08 0.00 12,986,494.08 0.00 Purchase 12/30/2021 91282CAC5 5,000,000.00 US Treasury Note 0.125% Due: 07/31/2022 99.957 0.20%4,997,851.56 2,581.52 5,000,433.08 0.00 Purchase 12/30/2021 91282CAC5 5,000,000.00 US Treasury Note 0.125% Due: 07/31/2022 99.957 0.20%4,997,851.56 2,581.52 5,000,433.08 0.00 Purchase 12/30/2021 91282CAC5 5,000,000.00 US Treasury Note 0.125% Due: 07/31/2022 99.957 0.20%4,997,851.56 2,581.52 5,000,433.08 0.00 September 30, 2021 through December 31, 2021 As of December 31, 2021 57 I Transaction Ledger Orange County Sanitation District Liquid - Account #10282 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Purchase 12/31/2021 91282CAC5 5,000,000.00 US Treasury Note 0.125% Due: 07/31/2022 99.953 0.21%4,997,656.25 2,598.51 5,000,254.76 0.00 Subtotal 95,000,000.00 95,025,931.62 124,609.38 95,150,541.00 0.00 TOTAL ACQUISITIONS 95,000,000.00 95,025,931.62 124,609.38 95,150,541.00 0.00 DISPOSITIONS Maturity 11/29/2021 21687AYV9 2,000,000.00 Rabobank Nederland NV NY Discount CP 0.17% Due: 11/29/2021 99.899 2,000,000.00 0.00 2,000,000.00 0.00 Subtotal 2,000,000.00 2,000,000.00 0.00 2,000,000.00 0.00 TOTAL DISPOSITIONS 2,000,000.00 2,000,000.00 0.00 2,000,000.00 0.00 September 30, 2021 through December 31, 2021 As of December 31, 2021 58 I Important Disclosures 2022 Chandler Asset Management, Inc,An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ice Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk.Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively. As of December 31, 2021 59 I Benchmark Disclosures ICE BofA 3-Month US Treasury Bill Index The ICE BofA US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond,three months from the rebalancing date. ICE BofA 1-5 Yr AAA-A US Corp & Govt Index The ICE BofA 1-5 Year AAA-A US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational, and corporate securities. Qualifying securities must be rated AAA through A3 (based on an average of Moody’s, S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities. ICE BofA 1-5 Yr US Corp & Govt Index The ICE BofA 1-5 Year US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational, and corporate securities. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities. As of December 31, 2021 60 I Rating Agency Comparisons A summary of investment grade ratings are listed below. More complete descriptions of Moody's and Standard & Poor's ratings are included in the following pages. Quality/Grade Moody’s Standard & Poor’s Fitch Best Quality Aaa AAA AAA High Quality Aa1 Aa2 Aa3 AA+ AA AA- AA+ AA AA- Upper Medium Grade A1 A2 A3 A+ A A- A+ A A- Medium Grade Baa1 Baa2 Baa3 BBB+ BBB BBB- BBB+ BBB BBB1 Moody's - Investment Grade "Aaa" - Bonds rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk. Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. "Aa" - Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in Aaa securities. "A" - Bonds which are rated A possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment sometime in the future. "Baa" - Bonds which are rated Baa are considered as medium grade obligations; i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well. Bonds in the Aa, A, and Baa are also assigned "1", "2", or "3" based on the strength of the issue within each category. Accordingly, "A1" would be the strongest group of A securities and "A3" would be the weakest A securities. Ba, B, Caa, Ca, and C - Bonds that possess one of these ratings provide questionable protection of interest and principal ("Ba" indicates some speculative elements; "B" indicates a general lack of characteristics of desirable investment; "Caa" represents a poor standing; "Ca" represents obligations which are speculative in a high degree; and “C” represents the lowest rated class of bonds). "Caa”, "Ca" and “C” bonds may be in default. Standard and Poor's - Investment Grade AAA - Debt rated "AAA" has the highest rating assigned by S&P. Capacity to pay interest and repay principal Is extremely strong. AA - Debt rated “AA” has a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in small degree. A - Debt rated "A" has a strong capacity to pay interest and repay principal although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories. BBB - Debt rated "BBB" is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher rated categories. Standard and Poor's - Speculative Grade Rating Debt rated "BB", "B", "CCC", “CC" and "C" is regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. "BB" indicates the least degree of speculation and "C" the highest. While such debt will likely have some quality and protective characteristics these are outweighed by major uncertainties or major exposures to adverse conditions. BB - Debt rated "BB" has less near-term vulnerability to default than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to inadequate capacity to meet timely interest and principal payments. The "BB" rating category is also used for debt subordinated to senior debt that is assigned an actual or implied "BBB" rating. B - Debt rated "B" has a greater vulnerability to default but currently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions will likely impair capacity or willingness to pay interest and repay principal. The "B" rating category is also used for debt subordinated to senior debt that is assigned an actual or implied "BB" or "BB" rating. CCC - Debt rated "CCC" has a currently identifiable vulnerability to default, and is dependent upon favorable business, financial, and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial, or economic conditions, it is not likely to have the capacity to pay interest and repay principal. The "CCC" rating category is also used for debt subordinated to senior debt that is assigned an actual or implied "B" or "B" rating. CC - The rating "CC" typically is applied to debt subordinated to senior debt that is assigned an actual or implied "CCC" debt rating. C - The rating “C” typically is applied to debt subordinated to senior debt which is assigned an actual or implied “CCC” debt rating. The “C” rating may be used to cover a situation where a bankruptcy petition has been filed, but debt service payments are continued. Cl - The rating "Cl" is reserved for income bonds on which no interest is being paid. D - Debt rated “D” is in payment default. The "D" rating category is used when interest payments or principal payments are not made on the date due even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. The “D” rating also will be used upon the filing of a bankruptcy petition if debt service payments are jeopardized. Plus (+) or Minus (-) - The ratings from "AA" to "CCC" may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories. NR - Indicates no rating has been requested, that there is insufficient information on which to base a rating, or that S&P does not rate a particular type of obligation as a matter of policy. January 31, 2022 STAFF REPORT Mid-Year Certificates of Participation (COP) Report for the Period Ended December 31, 2021 Summary The Orange County Sanitation District (OC San) began issuing Certificates of Participation (COPs) in 1990. These COPs were a part of our long-term financing plan that included both variable interest rate and traditional fixed rate borrowing. Following are the current outstanding debt issues of OC San: In May 2010, OC San issued $80 million of fixed rate Build America Bonds (BABs), Series 2010A at a true interest cost of 3.68 percent for the issue. In December 2010, OC San issued $157 million of fixed rate BABs, Series 2010C at a true interest cost of 4.11 percent for the issue. In October 2011, OC San issued $147.595 million of fixed rate COPs, Series 2011A refunding a portion of the Series 2000 variable rate debt and a portion of the Series 2003 fixed rate debt. The true interest cost for the issue is 2.61 percent. In March 2012, OC San issued $100.645 million of fixed rate COPs, Series 2012A refunding the Series 2003 fixed rate debt. The true interest cost for the issue is 3.54 percent. In August 2012, OC San issued $66.395 million of fixed rate COPs, Series 2012B refunding the Series 2000 variable rate debt. The true interest cost for the issue is 1.50 percent. With the issuance of Series 2012B, there remains no variable interest rate COPs at OC San. In August 2014, OC San issued $85.09 million of fixed rate COPs, Series 2014A, refunding a portion of Series 2007B debt. The true interest cost for the issue is 2.34 percent. In February 2015, OC San issued $127.51 million of fixed rate COPs, Series 2015A, refunding $152.99 million of the Series 2007B debt. The true interest cost for the issue is 3.30 percent. Mid-Year COP Report For the Period Ended December 31, 2021 Page 2 of 2 In March 2016, OC San issued $145.88 million of fixed rate COPs, Series 2016A, refunding $162.78 million of the Series 2009A fixed rate debt. The true interest cost for the issue is 3.02 percent. In February 2017, OC San issued $66.37 million of fixed rate COPs, Series 2017A, refunding $91.885 million of the Series 2007A debt. The true interest cost for the issue is 2.55 percent. In July 2021, OC San issued $133.51 million of fixed rate COPs, Series 2021A, refunding $61.575 million of the Series 2011A fixed rate debt and $102.2 million of the Series 2018A fixed rate debt. The true interest cost for the issue is 1.06 percent Additional Information The graph entitled, "COP Rate History Report,” shows the various fixed interest rates of the OC San’s ten debt issues. Attachment 1. Graph - COP Rate History Report 0.00 1.00 2.00 3.00 4.00 5.00 30 - D e c - 2 0 13 - J a n - 2 1 27 - J a n - 2 1 10 - F e b - 2 1 24 - F e b - 2 1 10 - M a r - 2 1 24 - M a r - 2 1 7- A p r - 2 1 21 - A p r - 2 1 5- M a y - 2 1 19 - M a y - 2 1 2- J u n - 2 1 16 - J u n - 2 1 30 - J u n - 2 1 14 - J u l - 2 1 28 - J u l - 2 1 11 - A u g - 2 1 25 - A u g - 2 1 8-S e p - 2 1 22 - S e p - 2 1 6- O c t - 2 1 20 - O c t - 2 1 3- N o v - 2 1 17 - N o v - 2 1 1-D e c - 2 1 15 - D e c - 2 1 29 - D e c - 2 1 RA T E ( % ) DATE OC SAN COP RATE HISTORY REPORT DECEMBER 2021 Series 2010A Fixed Series 2010C Fixed Series 2011A Fixed Series 2012A Fixed Series 2012B Fixed Series 2014A Fixed Series 2015A Fixed Series 2016A Fixed Series 2017A Fixed Series 2021A Fixed I ---+-------- FY 2021-22 Mid-Year Financial Report This Page Intentionally Left Blank ORANGE COUNTY SANITATION DISTRICTFINANCIAL MANAGEMENT DIVISION 10844 Ellis Avenue Fountain Valley, California 92708-7018 714.962.2411 www.ocsan.gov 12/31/21 OC ~SAN ORANGE COUNTY SANITATION DISTRICT ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-2021 Agenda Date:2/9/2022 Agenda Item No:3. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: DESIGNATION OF APPLICANT’S AGENT FOR DISASTER RELIEF GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 22-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the General Manager or either Assistant General Manager to Execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and Relevant Permit Applications for Present and Future Disaster Relief Applications; and Repealing Resolution No. OCSD 19-01”. BACKGROUND Situations which result in Orange County being declared a State or Federal disaster area can offer the opportunity for the Orange County Sanitation District (OC San) to apply for State and Federal emergency grant funding to reimburse expenses for related repairs and activities. Such reimbursements are overseen by the California Governor’s Office of Emergency Services and/or the Federal Emergency Management Agency. RELEVANT STANDARDS ·Government Code P.L. 93-288 as Amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988 ·California Disaster Assistance Act PROBLEM The current Resolution authorizes the General Manager and designees to apply for State and Federal Assistance. The Resolution must be updated every three years. PROPOSED SOLUTION Staff seeks a Board resolution authorizing the General Manager, and either Assistant General Manager, as agents, to apply for funds on behalf of OC San. This designation remains in effect for three years from the date of the Resolution. Orange County Sanitation District Printed on 2/1/2022Page 1 of 2 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2021-2021 Agenda Date:2/9/2022 Agenda Item No:3. TIMING CONCERNS The three years will expire on February 26,2022,therefore OC San must update the Resolution.In qualifying emergency situations,OC San has applied for,and has been granted,funds in the past. With this Resolution in place,staff can respond quickly to secure available funds should another emergency occur. RAMIFICATIONS OF NOT TAKING ACTION Should another qualifying emergency occur without a current Resolution in place,OC San may not be granted or able to secure available funds. PRIOR COMMITTEE/BOARD ACTIONS February 2019 -Adopted Resolution OCSD 19-01,entitled:“A Resolution of the Board of Directors of Orange County Sanitation District authorizing the General Manager or either Assistant General Managers to Execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and Relevant Permit Applications for Present and Future Disaster Relief Applications; and Repealing Resolution No. OCSD 16-08”. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Resolution No. OC SAN 22-XX ·Designation of Applicant’s Agent Resolution for Non-State Agencies (Cal OES 130) Orange County Sanitation District Printed on 2/1/2022Page 2 of 2 powered by Legistar™ OC SAN 22-XX-1 RESOLUTION NO. OC SAN 22-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AUTHORIZING THE GENERAL MANAGER OR EITHER ASSISTANT GENERAL MANAGER TO EXECUTE STATE OFFICE OF EMERGENCY SERVICES AND/OR FEDERAL EMERGENCY MANAGEMENT AGENCY DOCUMENTS AND RELEVANT PERMIT APPLICATIONS FOR PRESENT AND FUTURE DISASTER RELIEF APPLICATIONS; AND REPEALING RESOLUTION NO. OCSD 19-01 WHEREAS, Orange County Sanitation District is a duly organized County Sanitation District existing pursuant to the County Sanitation District Act, California Health and Safety Code section 4700, et seq., providing for the ownership, operation and maintenance of wastewater collection, treatment, and disposal facilities within Orange County, California; and WHEREAS, on January 28, 1998, the Joint Boards of Directors of the County Sanitation Districts of Orange County (CSDOC), predecessor to the Orange County Sanitation District, adopted a State resolution entitled "Designation of Applicant's Agent Resolution for Non-State Agencies" authorizing the General Manager, the Director of Human Resources or the Manager of Safety and Emergency Response to execute and file documents to the Office of Emergency Services for the purposes of obtaining certain federal financial assistance under P.L. 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the Natural Disaster Assistance Act; and WHEREAS, on March 23, 2011, the Board of Directors of the Orange County Sanitation District adopted Resolution OCSD 11-03, which authorized the General Manager or designee to execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and relevant permit applications for present and future disaster relief applications; and WHEREAS, on May 25, 2016, the Board of Directors of the Orange County Sanitation District adopted Resolution OCSD 16-08, which authorized the General Manager or designee to execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and relevant permit applications for present and future disaster relief applications; and WHEREAS, on February 27, 2019, the Board of Directors of the Orange County Sanitation District adopted Resolution OCSD 19-01, which authorized the General OC SAN 22-XX-2 Manager or either Assistant General Manager to execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and relevant permit applications for present and future disaster relief applications; and WHEREAS, the Board of Directors has considered the recommendation of staff to authorize the General Manager, and either Assistant General Manager to sign FEMA/Cal OES applications, claims and other related documents for the purpose of obtaining certain federal assistance under P.L. 93-188 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act. NOW THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER: 1. The General Manager, or either one of the Assistant General Managers, are hereby designated as the agent for Orange County Sanitation District and authorized to sign FEMA/Cal OES application(s), claims and other related documents for the purpose of obtaining certain federal assistance under P.L. 93-188 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act. 2. Cal OES Form 130, the Designation of Applicant’s Agent Resolution for Non-State Agencies (Exhibit “A”) will be executed and submitted with Resolution No. OC SAN 22-XX; and 3. Resolution No. OCSD 19-01 adopted by the Board of Directors of the Orange County Sanitation District on February 27, 2019, is hereby repealed in its entirety. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Orange County Sanitation District held February 23, 2022. ____________________________________ John B. Withers Board Chairman ATTEST: ______________________________ Kelly A. Lore, MMC Clerk of the Board OC SAN 22-XX-3 STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN 22-XX was passed and adopted at a regular meeting of said Board on the 23rd day of February 2022, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 23rd day of February 2022. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District STATE OF CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICESCal OES 130 Cal OES ID No:______________________ DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES BE IT RESOLVED BY THE OF THE(Governing Body)(Name of Applicant) THAT ,OR (Title of Authorized Agent) ,OR(Title of Authorized Agent) (Title of Authorized Agent) is hereby authorized to execute for and on behalf of the , a public entity(Name of Applicant)established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining certain federal financial assistance under Public Law 93-288 as amended by the Robert T.Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act. THAT the ________________________________________________, a public entity established under the laws of the State of California,(Name of Applicant)hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required. Please check the appropriate box below: This is a universal resolution and is effective for all open and future disasters up to three (3) years following the date of approval below. This is a disaster specific resolution and is effective for only disaster number(s) ________________________ Passed and approved this day of , 20 (Name and Title of Governing Body Representative) (Name and Title of Governing Body Representative) (Name and Title of Governing Body Representative) CERTIFICATION I,,duly appointed and of (Name)(Title) ,do hereby certify that the above is a true and correct copy of a(Name of Applicant) Resolution passed and approved by the of the (Governing Body)(Name of Applicant) on the day of ,20 . (Title) Page 1 (Signature) Cal OES 130 (Rev.9/13) Board of Directors Orange County Sanitation District General Manager Assistant General Manager - Director of Finance Assistant General Manager - Engineering/O&M Orange County Sanitation District Orange County Sanitation District x 23rd February 22 John B. Withers, Board Chairman Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District Board of Directors Orange County Sanitation District 23rd February 22 Clerk of the Board □ □ STATE OF CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICESCal OES 130 -Instructions Cal OES Form 130 Instructions A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted Resolution is older than three (3) years from the last date of approval, is invalid or has not been submitted. When completing the Cal OES Form 130,Applicants should fill in the blanks on page 1.The blanks are to be filled in asfollows: Resolution Section: Governing Body: This is the group responsible for appointing and approving the Authorized Agents. Examples include: Board of Directors,City Council,Board of Supervisors,Board of Education, etc. Name of Applicant:The public entity established under the laws of the State of California. Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego,Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California. Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency Management Agency and the Governor’s Office of Emergency Services regarding grants applied for by the Applicant. There aretwowaysofcompletingthissection: 1.Titles Only: If the Governing Body so chooses,the titles of the Authorized Agents would be entered here,not their names.This allows the document to remain valid (for 3 years)if an Authorized Agent leaves the positionandisreplacedbyanotherindividual in the same title.If “Titles Only”is the chosen method,this document must be accompanied by a cover letter naming the Authorized Agents by name and title. This cover letter canbe completed by any authorized person within the agency and does not require the Governing Body’s signature. 2.Names and Titles: If the Governing Body so chooses,the names and titles of the Authorized Agents would be listed.A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the positionlisted on the document or their title changes. Governing Body Representative: These are the names and titles of the approving Board Members.Examples include: Chairman of the Board,Director,Superintendent,etc. The names and titles cannot be one of the designated Authorized Agents, and a minimum of two or more approving board members need to be listed. Certification Section: Name and Title: This is the individual that was in attendance and recorded the Resolution creation and approval. Examples include:City Clerk,Secretary to the Board of Directors,County Clerk,etc. This person cannot be one of thedesignated Authorized Agents or Approving Board Member (if a person holds two positions such as City Manager and Secretary to the Board and the City Manager is to be listed as an Authorized Agent, then the same person holding theSecretary position would sign the document as Secretary to the Board (not City Manager) to eliminate “SelfCertification.” Page 2Cal OES 130 (Rev.9/13) ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2022-2114 Agenda Date:2/9/2022 Agenda Item No:4. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Receive and file Orange County Sanitation District purchases made under the General Manager’s authority for the period of October 1, 2021 to December 31, 2021; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2021 to December 31, 2021: ·ACOEM - Vibralign Fixture Laser Alignment Training ·BEAMEX - Beamex Instrumentation Test Equipment Hardware and Software Training ·HAYWORD-GORDON - Hayward-Gordon Pumps, Mixers, and Parts ·INTERTECH - Modicon PLC Hardware, Software, and Network Training ·MIDWAY MFG. & MACHINE COMPANY - Rechargeable Carbon Canisters ·WSG & SOLUTIONS, INC. - Grit Classifier Repair Parts BACKGROUND Staff provides the Administration Committee and the Board of Directors quarterly reports of General Manager approved and executed purchases between $50,000 and $100,000; maintenance and repair Services Task Orders between $50,000 and $300,000; and additions to the pre-approved OEM Sole Source List. The list of additions to the pre-approved OEM Sole Source List displays the original equipment manufacturers (OEM) added this quarter that require sole source procurement to maintain, service, or replace equipment currently in operation at Orange County Sanitation District (OC San) facilities because the parts and/or service can only be provided by the OEM or their designated representative. RELEVANT STANDARDS ·Quarterly financial reporting ·Ensure the public’s money is wisely spent PRIOR COMMITTEE/BOARD ACTIONS December 2016 - Minute Order 12(b) authorized the General Manager to ratify additions or deletions to the OEM Sole Source list on the General Manager’s quarterly approved purchases agenda report. Orange County Sanitation District Printed on 2/1/2022Page 1 of 3 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2022-2114 Agenda Date:2/9/2022 Agenda Item No:4. ADDITIONAL INFORMATION In accordance with Board purchasing policies,Ordinance No.OC SAN-56,the General Manager has authority to approve and execute purchases between $50,000 and $100,000.Below is a summary of General Manager approved purchases, in amounts exceeding $50,000, for the second quarter of fiscal year 2021-22: Vendor Name Amount Department Description/Discussion ARC $90,000.00 Administrative Services Reprographics and Related Services 11/1/21 - 10/31/22 with 4 Optional Renewal Periods County of Orange Contract # RCA-017- 21010015, in Accordance with Ordinance OC SAN-56 Section 2.03 (B) Cooperative Purchases AVIVA ENERGY CORP. $95,000.00 Operations & Maintenance Blanket PO for Utility Energy Consulting Services Related to the Direct Access (DA) Program Sole Source Justification 2525 Reason: Unique Product/Service COOPER ENERGY SVCS WHEAT RIDGE CO $86,203.96 Administrative Services Stock Item Purchase of Two (2) Cooper CenGen Engine Cylinder Heads Board Approved OEM Sole Source List M.O. 8/23/17, Item 9(B) GRAYBAR ELECTRIC COMPANY WALNUT CA $73,433.48 Administrative Services Stock Item Purchase of Twenty-Three (23) Modicon Modules OMNIA Partners Contract # EV2370, in Accordance with Ordinance OC SAN-56 Section 2.03 (B) Cooperative Purchases GRAYBAR ELECTRIC COMPANY WALNUT CA $83,011.76 Engineering Purchase of Twenty-Six (26) Ethernet 10/100 Base T100FX FactoryCast Modules OMNIA Partners Contract # EV2370, in Accordance with Ordinance OC SAN-56 Section 2.03 (B) Cooperative Purchases JAMISON ENGINEERING CONTRACTORS INC $97,705.36 Operations & Maintenance Emergency Repairs to Oxygen Piping at Plant 2 Sole Source Justification 2500 Reason: Emergency JOHNSON CONTROLS FIRE PROTECTION LP $64,592.23 Operations & Maintenance Refill and Reset Inergen (FM200) Fire Suppression System at Plant 1 Sole Source Justification 2503 Reason: Unique Product/Service MAXIM SECURITY SYSTEMS $72,460.83 Administrative Services Furnish and Install Access Control to the Construction Management Trailers at Plant 2 Sole Source Justification 2492 Reason: Unique Product/Service NORTHSTAR CHEMCICAL $67,000 Operations & Maintenance Purchase of 25% Solution Sodium Hydroxide (Caustic Soda) for Plants 1 & 2 7/1/21 - 6/30/22 with 1 Optional Renewal Period Specification No. C-2018-927 PERFORMANCE FORD $92,561.78 Operations & Maintenance Purchase of Two (2) New Ford F250 Crew Cab Service Body Trucks Sole Source Justification 2530 Reason: Limited Time Availability Due to Microchip Shortage VAUGHAN'S INDUSTRIAL REPAIR CO. INC $62,398.12 Operations & Maintenance Rebuild of Nuttall Reduction Gear Box from Sunkist Lift Station Sole Source Justification 2523 Reason: Time Sensitive Repair WESTERN AUDIO VISUAL $59,346.21 Administrative Services Purchase and Installation of Audio Visual (AV) Equipment for Board Room and Conference Room A & B Sole Source Justification 2531 Reason: Unique Product/Service WESTERN ELECTRICAL SERVICES, INC. $75,525.00 Operations & Maintenance Purchase of Sixteen (16) Remote Switch Actuators for Plant 2 and Pump Stations Board Approved OEM Sole Source List M.O. 9/29/21, Item 17(B) Orange County Sanitation District Printed on 2/1/2022Page 2 of 3 powered by Legistar™ File #:2022-2114 Agenda Date:2/9/2022 Agenda Item No:4. Vendor Name Amount Department Description/DiscussionARC$90,000.00 AdministrativeServices Reprographics and Related Services 11/1/21- 10/31/22 with 4 Optional Renewal PeriodsCounty of Orange Contract # RCA-017-21010015, in Accordance with OrdinanceOC SAN-56 Section 2.03 (B) CooperativePurchasesAVIVA ENERGYCORP.$95,000.00 Operations &Maintenance Blanket PO for Utility Energy ConsultingServices Related to the Direct Access (DA)Program Sole Source Justification 2525Reason: Unique Product/ServiceCOOPER ENERGYSVCS WHEATRIDGE CO $86,203.96 AdministrativeServices Stock Item Purchase of Two (2) CooperCenGen Engine Cylinder Heads BoardApproved OEM Sole Source List M.O.8/23/17, Item 9(B)GRAYBARELECTRICCOMPANY WALNUTCA $73,433.48 AdministrativeServices Stock Item Purchase of Twenty-Three (23)Modicon Modules OMNIA Partners Contract# EV2370, in Accordance with OrdinanceOC SAN-56 Section 2.03 (B) CooperativePurchasesGRAYBARELECTRICCOMPANY WALNUTCA $83,011.76 Engineering Purchase of Twenty-Six (26) Ethernet10/100 Base T100FX FactoryCast ModulesOMNIA Partners Contract # EV2370, inAccordance with Ordinance OC SAN-56Section 2.03 (B) Cooperative PurchasesJAMISONENGINEERINGCONTRACTORS INC $97,705.36 Operations &Maintenance Emergency Repairs to Oxygen Piping atPlant 2 Sole Source Justification 2500Reason: EmergencyJOHNSONCONTROLS FIREPROTECTION LP $64,592.23 Operations &Maintenance Refill and Reset Inergen (FM200) FireSuppression System at Plant 1 Sole SourceJustification 2503 Reason: UniqueProduct/ServiceMAXIM SECURITYSYSTEMS $72,460.83 AdministrativeServices Furnish and Install Access Control to theConstruction Management Trailers at Plant 2Sole Source Justification 2492 Reason:Unique Product/ServiceNORTHSTARCHEMCICAL$67,000 Operations &Maintenance Purchase of 25% Solution SodiumHydroxide (Caustic Soda) for Plants 1 & 27/1/21 - 6/30/22 with 1 Optional RenewalPeriod Specification No. C-2018-927 PERFORMANCE FORD $92,561.78 Operations & Maintenance Purchase of Two (2) New Ford F250 Crew Cab Service Body Trucks Sole Source Justification 2530 Reason: Limited Time Availability Due to Microchip Shortage VAUGHAN'S INDUSTRIAL REPAIR CO. INC $62,398.12 Operations & Maintenance Rebuild of Nuttall Reduction Gear Box from Sunkist Lift Station Sole Source Justification 2523 Reason: Time Sensitive Repair WESTERN AUDIO VISUAL $59,346.21 Administrative Services Purchase and Installation of Audio Visual (AV) Equipment for Board Room and Conference Room A & B Sole Source Justification 2531 Reason: Unique Product/Service WESTERN ELECTRICAL SERVICES, INC. $75,525.00 Operations & Maintenance Purchase of Sixteen (16) Remote Switch Actuators for Plant 2 and Pump Stations Board Approved OEM Sole Source List M.O. 9/29/21, Item 17(B) Additionally,in accordance with Board purchasing policies,Ordinance No.OC SAN-56,the General Manager has authority to approve and execute maintenance and repair Services Task Orders between $50,000 and $300,000.Below is a summary of General Manager approved maintenance and repair Services Task Orders,in amounts exceeding $50,000,for the second quarter of fiscal year 2021-22: Vendor Name Amount Department Description/Discussion SHIMMICK CONSTRUCTION CO INC $97,000.00 Operations & Maintenance Exhaust Fan 1 Cable Replacement at the Screening Loading Building at Plant 2 Specification No. TOB-2021-1279 of Master Service Contract S-2018-942BD-1 WA. RASIC CONSTRUCTION CO., INC. $67,325.00 Operations & Maintenance Influent Metering Structure Trunkline Probes Relocation at Plant 2 Specification No. TOB- 2021-1274 of Master Service Contract S- 2018-942BD-7 ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: N/A Orange County Sanitation District Printed on 2/1/2022Page 3 of 3 powered by Legistar™ ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2022-2115 Agenda Date:2/9/2022 Agenda Item No:5. FROM:James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: UNIFORM AND JANITORIAL ARTICLES RENTAL SERVICE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a service contract to Cintas Corporation to provide Uniform and Janitorial Articles Rental Service, Specification No. S-2021-1277BD, for a total amount not to exceed $839,512 for the period beginning April 1, 2022, through March 31, 2025, with one (1) three-year renewal period option; and B. Approve a three-year contingency of $83,951 (10%). BACKGROUND The purpose of this Service Contract is to provide unform and janitorial articles rental and laundering services for employees at Orange County Sanitation District’s (OC San) Plant Nos. 1 and 2. OC San staff involved in the collection and treatment of wastewater are provided uniforms to maintain a professional appearance, to satisfy OSHA safety requirements, and to protect the employees from exposure to contaminated and unpleasant materials. Uniforms are also required in accordance with OC San’s Memorandums of Understanding. RELEVANT STANDARDS ·Commitment to safety & reducing risk in all operations ·Provide a safe and collegial workplace PROBLEM The current uniform and janitorial articles rental Service Contract expires on March 31, 2022. PROPOSED SOLUTION Approve a uniform and janitorial articles rental Service Contract to Cintas Corporation for Specification No. S-2021-1277BD. Orange County Sanitation District Printed on 2/1/2022Page 1 of 3 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2022-2115 Agenda Date:2/9/2022 Agenda Item No:5. TIMING CONCERNS The current service agreement for the Uniform and Janitorial Articles Rental Service expires on March 31, 2022. RAMIFICATIONS OF NOT TAKING ACTION Not approving a new Service Contract would result in higher cost uniform rental services at Plant Nos. 1 and 2. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION On September 10,2021,OC San issued a Request for Proposal (RFP)via Planet Bids.The following evaluation criterion were described in the RFP and used to determine the most qualified vendor. CRITERION WEIGHT 1. Qualifications & Experience of Firm 20% 2. Proposed Staffing & Project Organization 15% 3. Work Plan 25% 4. Presentation/Interview 10% 5. Cost 30% The RFP closed on October 13,2021.OC San received responses from two vendors.One vendor withdrew their proposal the following day.The RFP evaluation team consisted of the Purchasing Supervisor,a Maintenance Superintendent,and the Safety and Health Supervisor.This RFP used the individual scoring method.The evaluation team first reviewed and scored the proposals based upon the first three criterion listed above. Rank Proposer Criterion 1 (Max 20%) Criterion 2 (Max 15%) Criterion 3 (Max 25%) Subtotal Score (Max 60%) 1 Cintas Corporation 20%14%20%54% The proposal was accompanied by a sealed cost proposal. No interviews were conducted. Proposer ORIGINAL COST BAFO Cintas Corporation $845,103 $839,512 The BAFO proposed by Cintas Corporation results in a 14%savings,when comparing like items and Orange County Sanitation District Printed on 2/1/2022Page 2 of 3 powered by Legistar™ File #:2022-2115 Agenda Date:2/9/2022 Agenda Item No:5. The BAFO proposed by Cintas Corporation results in a 14%savings,when comparing like items and services to OC San current costs.Based on these results,staff recommends that the Board approve the Uniform and Janitorial Articles Rental Service Contract with Cintas Corporation.The term of this Service Contract will begin April 1,2022,through March 31,2025,with one (1)three-year renewal period option. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of OC San’s Purchasing Ordinance.This recommendation will be funded under the Repair and Maintenance line item for the Operations and Maintenance Department (Budget Update Fiscal Year 2019-20,Page 47).The available funding is sufficient for this action. Date of Approval Contract Amount Contingency 02/23/2022 $839,512 $83,951 (10%) ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Draft Service Contract Orange County Sanitation District Printed on 2/1/2022Page 3 of 3 powered by Legistar™ Orange County Sanitation District 1 of 9 Specification No. S-2021-1277BD Revision 031021 SERVICE CONTRACT Uniform and Janitorial Articles Rental Service Specification No. S-2021-1277BD THIS CONTRACT is made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708 (hereinafter referred to as "OC San") and [ ] with a principal place of business at [ ] (hereinafter referred to as "Vendor") collectively referred to as the “Parties”. W I T N E S S E T H WHEREAS, OC San desires to temporarily retain the services of Vendor for Uniform and Janitorial Articles Rental Service “Services” as described in Exhibit “A”; and WHEREAS, OC San has chosen Vendor to conduct Services in accordance with Ordinance No. OC SAN-56; and WHEREAS, on ____________________, the Board of Directors of OC San, by minute order, authorized execution of this Contract between OC San and Vendor; and WHEREAS, Vendor is qualified by virtue of experience, training, and expertise to accomplish such Services, NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OC San and the Vendor. The terms and conditions herein exclusively govern the purchase of Services as described in Exhibit “A”. 1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibit “A” Scope of Work Exhibit “B” Proposal and Cost Proposal Exhibit “C” Determined Insurance Requirement Form Exhibit “D” Contractor Safety Standards Exhibit “E” Human Resources Policies Exhibit “F” Not Used 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any paragraph or provision hereof. Orange County Sanitation District 2 of 9 Specification No. S-2021-1277BD Revision 031021 1.6 The term “days”, when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 OC San holidays (non-working days) are as follows: New Year’s Day, Lincoln’s Birthday, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The term “hours”, when used in this Contract, shall be as defined in Exhibit “A”. 1.9 Vendor shall provide OC San with all required premiums and/or overtime work at no charge beyond the price provided under “Compensation” below. 1.10 Except as expressly provided otherwise, OC San accepts no liability for any expenses, losses, or action incurred or undertaken by Vendor as a result of work performed in anticipation of purchases of said services by OC San. 2. Compensation Compensation to be paid by OC San to Vendor for the Services provided under this Contract shall be a total amount not exceed [ ] Dollars ($[_________]). 3. California Department of Industrial Relations (DIR) Registration and Record of Wages 3.1 To the extent Vendor’s employees and/or its subcontractors who will perform Work under this Contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 et seq, Vendor and its subcontractors shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. 3.2 The Vendor and its subcontractors shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. 3.3 Pursuant to Labor Code Section 1776, the Vendor and its subcontractors shall furnish a copy of all certified payroll records to OC San and/or general public upon request, provided the public request is made through OC San, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement of the Department of Industrial Relations. 3.4 The Vendor and its subcontractors shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 4. Payments and Invoicing 4.1 OC San shall pay, net thirty (30) days, upon receipt and approval, by OC San’s Project Manager or designee, of itemized invoices submitted weekly for Services rendered in accordance with Exhibit “A”. OC San, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. Orange County Sanitation District 3 of 9 Specification No. S-2021-1277BD Revision 031021 4.2 Invoices shall be emailed by Vendor to OC San Accounts Payable at APStaff@OCSan.gov and “INVOICE” with the Purchase Order Number and Specification No. S-2021-1277BD shall be referenced in the subject line. 5. Audit Rights Vendor agrees that, during the term of this Contract and for a period of three (3) years after its termination, OC San shall have access to and the right to examine any directly pertinent books, documents, and records of Vendor relating to the invoices submitted by Vendor pursuant to this Contract. 6. Scope of Work Subject to the terms of this Contract, Vendor shall perform the Services identified in Exhibit “A”. Vendor shall perform said Services in accordance with generally accepted industry and professional standards. 7. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OC San at any time. All modifications must be made in writing and signed by both Parties. 8. Contract Term The Services provided under this Contract shall be for a period of three (3) years commencing on [Month, Day, Year] and continuing through [Month, Day, Year]. 9. Renewals 9.1 OC San may exercise the option to renew this Contract for up to one (1) three-year period, under the terms and conditions contained herein. OC San shall make no obligation to renew nor give reason if it elects not to renew. 9.2 This Contract may be renewed by OC San Purchase Order. 10. Extensions The term of this Contract may be extended only by written instrument signed by both Parties. 11. Performance Time is of the essence in the performance of the provisions hereof. 12. Termination 12.1 OC San reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OC San of intent to terminate. Upon receipt of a termination notice, Vendor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OC San shall thereafter, within thirty (30) days, pay Vendor for work performed (cost and fee) to the date of termination. Vendor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OC San from any further fee, cost or claim hereunder by Vendor other than for work performed to the date of termination. 12.2 OC San reserves the right to terminate this Contract immediately upon OC San’s determination that Vendor is not complying with the Scope of Work requirements, if the level of service is inadequate, or any other default of this Contract. 12.3 OC San may also immediately cancel for default of this Contract in whole or in part by written notice to Vendor: if Vendor becomes insolvent or files a petition under the Bankruptcy Act; or if Vendor sells its business; or if Vendor breaches any of the terms of this Contract; or if total amount of compensation exceeds the amount authorized under this Contract. Orange County Sanitation District 4 of 9 Specification No. S-2021-1277BD Revision 031021 12.4 All OC San property in the possession or control of Vendor shall be returned by Vendor to OC San upon demand, or at the termination of this Contract, whichever occurs first. 13. Insurance Vendor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Determined Insurance Requirement Form (attached hereto and incorporated herein as Exhibit “C“). Vendor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OC San, nor shall Vendor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. 14. Indemnification and Hold Harmless Provision Vendor shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Vendor's services under this Contract, or by its subcontractor(s) or by anyone directly or indirectly employed by Vendor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Except as to the sole active negligence of or willful misconduct of OC San, Vendor shall indemnify, protect, defend and hold harmless OC San, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Vendor's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Vendor of or anyone employed by or working under Vendor. To the maximum extent permitted by law, Vendor's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Vendor agrees to provide this defense immediately upon written notice from OC San, and with well qualified, adequately insured, and experienced legal counsel acceptable to OC San. 15. Contractor Safety Standards and Human Resources Policies OC San requires Vendor and its subcontractor(s) to follow and ensure their employees follow all Federal, State, and local regulations as well as Contractor Safety Standards while working at OC San locations. If during the course of the Contract it is discovered that Contractor Safety Standards do not comply with Federal, State, or local regulations, then the Vendor is required to follow the most stringent regulatory requirement at no additional cost to OC San. Vendor and all of its employees and subcontractors, shall adhere to all applicable Contractor Safety Standards attached hereto in Exhibit “D” and the Human Resources Policies in Exhibit “E”. 16. Warranties In addition to the warranties stated in Exhibit "A", the following shall apply: 16.1 Manufacturer's standard warranty shall apply. All manufacturer warranties shall commence on the date of acceptance by the OC San Project Manager or designee of the work as complete. 16.2 Vendor's Warranty (Guarantee): If within a one (1) year period of completion of all work as specified in Exhibit “A”, OC San informs Vendor that any portion of the Services provided fails to meet the standards required under this Contract, Vendor shall, within the time agreed Orange County Sanitation District 5 of 9 Specification No. S-2021-1277BD Revision 031021 to by OC San and Vendor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Vendor's sole expense. 17. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract. 18. Freight (F.O.B. Destination) Vendor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 19. Familiarity with Work By executing this Contract, Vendor warrants that: 1) it has investigated the work to be performed; and 2) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Vendor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OC San, it shall immediately inform OC San of this and shall not proceed, except at Vendor’s risk, until written instructions are received from OC San. 20. Regulatory Requirements Vendor shall perform all work under this Contract in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 21. Environmental Compliance Vendor shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the Vendor, its subcontractors, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations. 22. Licenses, Permits, Ordinances and Regulations Vendor represents and warrants to OC San that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to the work performed under the terms of this Contract will be paid by Vendor. 23. Applicable Laws and Regulations Vendor shall comply with all applicable Federal, State, and local laws, rules, and regulations. Vendor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OC San as a result of Vendor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. 24. Vendor’s Employees Compensation 24.1 Davis-Bacon Act – Vendor will pay and will require all subcontractors to pay all employees on said project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of two thousand dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by Federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. Orange County Sanitation District 6 of 9 Specification No. S-2021-1277BD Revision 031021 24.2 General Prevailing Rate – OC San has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Contract, and copies of same are on file in the Engineering Department. The Vendor agrees that not less than said prevailing rates shall be paid to workers employed on this Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OC San will have on file copies of the prevailing rate of per diem wages at its principal office and at each project site, which shall be made available to any interested party upon request. 24.3 Forfeiture For Violation – Vendor shall, as a penalty to OC San, forfeit fifty dollars ($50.00) for each calendar day or portion thereof for each worker paid (either by the Vendor or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. 24.4 Apprentices – Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the Vendor shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty (20) working days or more; or if contracts of specialty contractors not bidding for work through the general or prime Contractor are two thousand dollars ($2,000.00) or more or five (5) working days or more. 24.5 Workday – In the performance of this Contract, not more than eight (8) hours shall constitute a day’s work, and the Vendor shall not require more than eight (8) hours of labor in a day from any person employed by it hereunder. Vendor shall conform to Article 3, Chapter 1, Part 7 (Section 1810 et seq.) of the Labor Code of the State of California and shall forfeit to OC San as a penalty, the sum of twenty-five dollars ($25.00) for each worker employed in the execution of this Contract by Vendor or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said Article. Vendor shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by Vendor in connection with the project. 24.6 Record of Wages; Inspection – Vendor agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the project and agrees to require that each of its subcontractors do the same. All payroll records shall be certified as accurate by the applicable Vendor or subcontractor or its agent having authority over such matters. Vendor further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee’s representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. Penalties for non- compliance with the requirements of Section 1776 may be deducted from project payments per the requirements of Section 1776. 25. South Coast Air Quality Management District’s (SCAQMD) Requirements It is Vendor’s responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Contract work practices, which may have associated emissions such as sandblasting, open Orange County Sanitation District 7 of 9 Specification No. S-2021-1277BD Revision 031021 field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 26. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange, in the event any action is brought in connection with this Contract or the performance thereof. 27. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Vendor to which OC San does not object shall not operate as a waiver of OC San’s rights to seek remedies available to it for any subsequent breach. 28. Remedies In addition to other remedies available in law or equity, if the Vendor fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or if OC San rejects the goods or Services or revokes acceptance of the goods or Services, OC San may (1) cancel the Contract; (2) recover whatever amount of the purchase price OC San has paid, and/or (3) “cover” by purchasing, or contracting to purchase, substitute goods or Services for those due from Vendor. In the event OC San elects to “cover” as described in (3), OC San shall be entitled to recover from Vendor as damages the difference between the cost of the substitute goods or Services and the Contract price, together with any incidental or consequential damages. 29. Dispute Resolution 29.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 29.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2) arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 30. Attorney’s Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 31. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and Forum for Enforcement, shall survive termination or expiration of this Contract. Orange County Sanitation District 8 of 9 Specification No. S-2021-1277BD Revision 031021 32. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 33. Damage to OC San’s Property Any of OC San’s property damaged by Vendor, any subcontractors or by the personnel of either will be subject to repair or replacement by Vendor at no cost to OC San. 34. Disclosure Vendor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OC San. 35. Independent Contractor The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Vendor an OC San employee. During the performance of this Contract, Vendor and its officers, employees, and agents shall act in an independent capacity and shall not act as OC San's officers, employees, or agents. Vendor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OC San’s employees. 36. Limitations upon Subcontracting and Assignment Vendor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OC San. Any such attempted delegation or assignment shall be void. 37. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OC San and Vendor. 38. Non-Liability of OC San Officers and Employees No officer or employee of OC San shall be personally liable to Vendor, or any successor-in-interest, in the event of any default or breach by OC San or for any amount which may become due to Vendor or to its successor, or for breach of any obligation for the terms of this Contract. 39. Read and Understood By signing this Contract, Vendor represents that he has read and understood the terms and conditions of the Contract. 40. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 41. Entire Agreement This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District 9 of 9 Specification No. S-2021-1277BD Revision 031021 42. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OC San: [Buyer Name] [Buyer Title] Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Vendor: [Contact Name] [Contact Title] [Company Name] [Street Address] [City, State, Zip Code] Each party shall provide the other party written notice of any change in address as soon as practicable. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: _________________ By: ___________________________________ Chair, Board of Directors Dated: _________________ By: ___________________________________ Clerk of the Board Dated: _________________ By: ___________________________________ Purchasing and Contracts Manager COMPANY Dated: _________________ By: ___________________________________ ______________________________________ Print Name and Title of Officer ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2022-2120 Agenda Date:2/9/2022 Agenda Item No:6. FROM:James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: AMENDMENT TO OCSD PERSONNEL POLICIES AND PROCEDURES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OC SAN 22-XX entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District amending the Board of Directors Personnel Policies and Procedures Manual providing for classification, compensation, and other terms, conditions, policies, and procedures governing employment of District employees to include the addition of Policy No. 6.6, Diversity, Equity, and Inclusion; and Amending Resolution No. OCSD 18-18”. BACKGROUND The Orange County Sanitation District’s (OC San) Board of Directors Personnel Policies and Procedures Manual (Policies) contains the terms, conditions, rules, and regulations of employment which are consolidated into one reference document. The Policies are reviewed periodically and updated as required; and the last comprehensive update to the Policies was completed in 2018. Staff is proposing the addition of Policy No. 6.6, Diversity, Equity, and Inclusion, a new policy to establish and clarify OC San’s commitment to being an inclusive organization. Recently, OC San updated its Core Values, which now include “Integrity, Inclusion, Honesty, and Respect.” With the addition of this policy, we want employees to understand what the expectations are related to the new Core Value, as well as the existing laws and policies that are relative to the new Diversity policy. OC San offers Diversity training on a biennial basis and has done so for several years. The training will be updated for this year, incorporating the new Core Values into the curriculum, in addition to the content of the new Diversity policy. In accordance with Resolution No. OCSD 18-18, revisions to the Policies require Board approval. RELEVANT STANDARDS ·Cultivate a highly qualified, well-trained, and diverse workforce Orange County Sanitation District Printed on 2/2/2022Page 1 of 3 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2022-2120 Agenda Date:2/9/2022 Agenda Item No:6. PROBLEM Staff has drafted a new Policy on Diversity,Equity,and Inclusion,which requires Board approval for adoption and implementation.Diversity training is scheduled for the first quarter of the calendar year for all OC San employees,and will cover elements of the new policy,including the purpose, requirements, and expected conduct. PROPOSED SOLUTION Staff recommends that the Board of Directors approve and adopt the policy update by Resolution. The proposed new policy is attached. TIMING CONCERNS The proposed policy aligns OC San’s Core Values that were adopted by the Board of Directors within the Strategic Plan on November 17, 2021. RAMIFICATIONS OF NOT TAKING ACTION The new policy is necessary to set the expectation for employees and to align with the new Core Values and, without approval, could not be implemented. PRIOR COMMITTEE/BOARD ACTIONS March 2020 -Adopted Resolution No.OCSD 20-01 entitled,“A Resolution of the Board of Directors to the Orange County Sanitation District granting emergency power to the General Manager in the event the public health and safety is endangered due to a disruption of sewerage service;and repealing Resolution No. 75-160”. September 2018 -Adopted Resolution No.OCSD 18-18 entitled,“A Resolution of the Board of Directors of Orange County Sanitation District approving a Board of Directors Personnel Policies and Procedures Manual providing for classification,compensation,and other terms,conditions,policies, and procedures governing employment of District employees;and repealing Resolution No.OCSD 15-18”. ADDITIONAL INFORMATION The Policies,as adopted by a Resolution of the Board of Directors,supersede any and all prior Board Resolutions and actions that are inconsistent with these Policies, unless otherwise specified herein. The Policies do not constitute a contract of employment.To the extent the Policies are inconsistent with any term or provision of an individual employment agreement or Memorandum of Understanding (MOU), the term or provision of the employment agreement or MOU shall govern. The Policies intend to increase the mutual understanding of expectations and minimize the making of personal decisions on matters of District-wide policy. Orange County Sanitation District Printed on 2/2/2022Page 2 of 3 powered by Legistar™ File #:2022-2120 Agenda Date:2/9/2022 Agenda Item No:6. CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Proposed Resolution No. OC SAN 22-XX ·Exhibit “A” to Resolution No. OC SAN 22-XX, Policy No. 6.6 ·Resolution No. OCSD 18-18 (link provided on agenda) Orange County Sanitation District Printed on 2/2/2022Page 3 of 3 powered by Legistar™ OC SAN 22-XX-1 RESOLUTION NO. OC SAN 22-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AMENDING THE BOARD OF DIRECTORS PERSONNEL POLICIES AND PROCEDURES MANUAL PROVIDING FOR CLASSIFICATION, COMPENSATION, AND OTHER TERMS, CONDITIONS, POLICIES, AND PROCEDURES GOVERNING EMPLOYMENT OF DISTRICT EMPLOYEES TO INCLUDE THE ADDITION OF POLICY NO. 6.6, DIVERSITY, EQUITY, AND INCLUSION; AND AMENDING RESOLUTION NO. OCSD 18-18 NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: The Board of Directors Personnel Policies and Procedures Manual, attached hereto as Exhibit “A”, be amended to include the addition of Policy No. 6.6, Diversity, Equity, and Inclusion. Section 2: Any change in the Policies and Procedures set forth in the Board of Directors Personnel Policies and Procedures Manual must be approved by the Board of Directors prior to implementation. Section 3: This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors held February 23, 2022. _____________________________________ John B. Withers Board Chairman ATTEST: _______________________________________ Kelly A. Lore, MMC Clerk of the Board OC SAN 22-XX-2 STATE OF CALIFORNIA ) ) COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OC SAN 22-XX was passed and adopted at a regular meeting of said Board on the 23rd day of February 2022, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 23rd day of February 2022. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District _____________________________________________________________________________________________ Personnel Policies & Procedures Manual Page 1 of 3 Effective: TBD Policy 6.6, Diversity, Equity, and Inclusion Orange County Sanitation District Personnel Policies Policy Number: 6.6 Effective Date: TBD Subject: Diversity, Equity, and Inclusion Supersedes: N/A Approved by: General Manager 1.0 PURPOSE 1.1 To ensure OC San maintains a diverse, equitable, and inclusive workplace through objective and consistent standards, rules, programs, procedures, and practices. This policy covers all aspects of employment including, but not limited to, recruitment, hiring, job assignment, promotion, employee benefits, conditions of employment, compensation, transfer, discipline, training, work environment, and termination of employment. 2.0 ORGANIZATIONAL UNITS AFFECTED 2.1 This policy applies to all OC San employees, job applicants, and all persons who perform services for OC San, including interns, volunteers, and persons working under contract. 3.0 DEFINITIONS 3.1 Discrimination is the unfavorable or unfair treatment of a person in the work environment, based on a legally protected class (as described above). 3.2 Diversity is the collective differences and similarities that include individual characteristics, values, beliefs, experiences, backgrounds, preferences, and behaviors that comprise the OC San workforce. 3.3 Equity refers to a state where rules, programs, procedures, and practices are applied uniformly regardless of race, color, religion, sex (including pregnancy, childbirth, and breastfeeding), sexual orientation, age, national origin, ancestry, actual or perceived disability, medical condition, genetic information, military and veteran status, marital status, gender, gender identity, gender expression, exercise of rights relating to any legally-provided leave of absence, or any other legally protected basis. 3.4 Harassment is defined as: (1) conditioning the granting or denial of employment benefits on the acceptance of unwanted verbal or physical conduct, or (2) creation of a hostile work environment through verbal, physical or visual conduct based on a legally protected class that is severe and/or pervasive and interferes with an employee’s ability to do his or her job. 3.5 Inclusion is involving people from a range of different social and ethnic backgrounds, where individuals have equal access to opportunities and resources; where rules, policies, and procedures are applied uniformly; and where the OC San workforce can contribute fully to the organization’s success regardless of race, color, religion, sex (including pregnancy, childbirth, and breastfeeding), sexual orientation, age, national origin, ancestry, actual or perceived disability, medical condition, genetic information, military and veteran status, marital status, gender, gender identity, gender expression, OC6SAN ORANGE COUNTY SANITATION DISTRICT _____________________________________________________________________________________________ Personnel Policies & Procedures Manual Page 2 of 3 Effective: TBD Policy 6.6, Diversity, Equity, and Inclusion exercise of rights relating to any legally-provided leave of absence, or any other legally protected basis. 3.6 Legally Protected Class includes race, religious creed, color, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, sex (including pregnancy, childbirth, and breastfeeding), gender, gender identity, gender expression, age (40 years or older), sexual orientation, military and veteran status, and exercise of rights relating to any legally-provided leave of absence. 3.7 Sex includes, but is not limited to, pregnancy or medical conditions related to pregnancy, childbirth or medical conditions related to childbirth, breastfeeding or medical conditions related to breastfeeding. “Sex” also includes, but is not limited to, a person’s gender. 4.0 POLICY 4.1 OC San is an Equal Opportunity Employer and maintains a diverse, equitable, and inclusive workplace through objective and consistent standards, rules, programs, procedures, practices, and established Core Values. Equal opportunity shall apply to all aspects of the employment relationship, including, but not limited to, hiring, promotions, training and development, working conditions, compensation, benefits, and discipline. 4.2 All OC San employees, contractors, interns, volunteers, and temporary workers are expected to comply with this policy and all procedures to maintain a diverse, equitable, and inclusive work environment. 5.0 PROCEDURE 5.1 All employees are required to interact in a professional, respectful, and courteous manner, in accordance with Core Values, and apply the standards, rules, programs, procedures, practices, in an objective and impartial manner regardless of race, color, religion, sex (including pregnancy, childbirth, and breastfeeding), sexual orientation, age, national origin, ancestry, actual or perceived disability, medical condition, genetic information, military and veteran status, marital status, gender, gender identity, gender expression, exercise of rights relating to any legally-provided leave of absence, or any other legally protected basis. 5.2 Managers and supervisors are required to monitor the workplace, recognize conduct potentially in violation of this policy, report any such observations, and take appropriate action to address unacceptable behavior. 5.3 Managers and supervisors who receive reports of policy violations from other employees must take all such complaints seriously and provide timely and appropriate follow-up to include reporting the complaint to the Human Resources Department. 5.4 Employees who believe they have been subjected to conduct or have observed conduct prohibited by this policy are expected to immediately report the matter, verbally or in writing, to his or her manager or supervisor, or to the Human Resources Department.. 6.0 EXCEPTIONS 6.1 Any employee who knowingly files a false and malicious report or complaint, as opposed to a complaint which, even if erroneous, is made in good faith; or anyone who _____________________________________________________________________________________________ Personnel Policies & Procedures Manual Page 3 of 3 Effective: TBD Policy 6.6, Diversity, Equity, and Inclusion fails to report an actual or perceived form of harassment or discrimination as outlined in this policy, may be subject to appropriate disciplinary action, up to and including termination. 7.0 PROVISIONS AND CONDITIONS 8.0 RELATED DOCUMENTS 8.1 U.S. and California State Constitutions 8.2 Title VII of the Civil Rights Act of 1964 8.3 California Fair Employment and Housing Act 8.4 OC San Core Values 8.5 Policy 1.1, Harassment & Discrimination 8.6 Policy 1.2, Retaliation & Whistleblowing 8.7 Policy 1.4, Recruitment & Selection 8.8 Policy 2.1, Classification & Compensation 8.9 Policy 4.1, Insurance 8.10 Policy 4.10, Employee Development 8.11 Policy 5.1, Rules of Conduct 8.12 Policy 5.2, Discipline 8.13 Policy 6.1, Appraisal of Performance 8.14 Policy 6.2, Open Communication 8.15 Policy 6.4, Problem Solving 8.16 Policy 6.5, Grievance Procedure ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2022-2102 Agenda Date:2/9/2022 Agenda Item No:7. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: INTERNAL AUDIT UPDATE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Contracts Procurement Process Internal Audit Report dated January 4, 2022. BACKGROUND The Orange County Sanitation District (OC San) selected the audit firm of Eide Bailly LLP to provide audits of various OC San programs and processes as selected by the Audit Ad Hoc Committee. Most recently, the Audit Ad Hoc Committee selected the contracts procurement process for audit. The auditors were directed to focus their efforts on three specific areas: Construction Contract Compliance, Sole Source Contracts, and General Manager Approved Purchases. The auditors will provide an update of those efforts. Additionally, staff and the auditors will present potential topics for future audit selection. ADDITIONAL INFORMATION The Audit report covers: Eide Bailly LLP performed an independent assessment of OC San’s contracts procurement process to ensure that sole source contracts, Public Works construction projects, and General Manager approved purchases are procured in compliance with the established policies and procedures. The audit work done in the three areas is summarized below. 1) Construction Contract Compliance Audit contracts related to four (more or less) construction projects to determine if they were executed successfully in several areas, including project cost and timeliness, accuracy of invoice payments, retention release, and administrative requirements such as insurance and bonding. Validate that appropriate checks and balances exist between Engineering and Contracts staff to ensure proper payment to correct vendors for completed work. Orange County Sanitation District Printed on 2/1/2022Page 1 of 2 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT File #:2022-2102 Agenda Date:2/9/2022 Agenda Item No:7. 2)Sole Source Contracts Review OC San’s purchasing policies and procedures as they relate to the procurement of sole source products and services,including a walkthrough to determine that the proper procedures were being followed as designed to ensure that sole source contracts are properly authorized and appropriate. Selected sole source contracts and test projects for key internal controls related to the authorization of sole source contracts,including approvals for sole source request forms, minutes,and justification letters.Test that OC San has established valid justification for selecting sole source vendors in accordance with the purchasing policies and procedures in addition to reviewing sole source vendor service agreements and invoices. 3)General Manager Approved Purchases The General Manager has the authority to approve purchases over $50,000.These purchases are reported to the Board on a quarterly basis through a report to the Administration Committee.Review purchasing process to ensure that appropriate documentation is completed, and protocols are followed. PRIOR COMMITTEE/BOARD ACTIONS January 2022 -Audit Ad Hoc received the report and recommended for approval to the Administration Committee/Board of Directors. RELEVANT STANDARDS ·Conduct audits to determine if an entity’s operations are being conducted in an economical and efficient manner ·Conduct audits to establish whether specific government programs are effective in meeting their stated goals and objectives ·Conduct audits to determine if an entity is following policies and procedures in conducting operations ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Contracts Procurement Process Internal Audit Report ·Previous Audit list ·Audit Schedule Orange County Sanitation District Printed on 2/1/2022Page 2 of 2 powered by Legistar™ Contracts Procurement Process Internal Audit Report January 4, 2022 Orange County Sanitation District Submitted By Eide Bailly LLP OCSD – CONTRACTS PROCURMENT TABLE OF CONTENTS Executive Summary .............................................................................. 1 Background Information ...................................................................... 1 Objective & Scope ................................................................................ 1 Methodology ........................................................................................ 2 Testing Results and Conclusion ............................................................ 3 Appendix A – Internal Controls and Related Control Activities ........... 4 OCSD – CONTRACTS PROCUREMENT 1 | eidebailly.com Executive Summary Eide Bailly LLP (“We”, or “Our”) performed an independent assessment of Orange County Sanitation District’s (“The District”) contracts procurement process to ensure that sole source contracts, Public Works construction projects, and General Manager approved contracts are procured in compliance with the established policies and procedures (P&Ps). During our review, we didn’t identify any instances where contracts were handled and / or processed outside the established guidelines of the District. Background Information The District is a public agency that provides wastewater collection, treatment, and disposal services for approximately 2.6 million people in central and northwest Orange County. The District is governed by a Board of Directors consisting of 25 board members appointed from 20 cities, two sanitary districts, two water districts and one representative from the Orange County Board of Supervisors. The District’s procurement practices are governed by Purchasing Ordinance that establishes general guidelines. There are also numerous internal policy related documents that establish specific requirements and guidelines for each of the three types of contracts reviewed in the scope of this project including sole source contracts, Public Works (PW) construction contracts, and General Manager (GM) approved contracts. Sole Source contracts are generally associated with purchases greater than $10,000 that require the following conditions to be met to justify the purchases: • GM must determine it is the best approach, and / or • Goods and services are unique based on various product attributes, or • Goods and services are available only from one source/vendor. PW construction contracts are generally associated with PW projects greater than $35,000. PW projects involve construction, erection, or alteration of any type of structure, building, or improvement other than sewerage maintenance or repairs. GM approved contracts are typically associated with purchases of goods and services between $50,000 and $100,000 and such purchases are reported to the Board of Directors (BOD) quarterly. GM approved purchases can also utilize sole source contracts when justified. Objective & Scope The objective of this project was to assess whether the District has an effective system of internal controls surrounding 1) sole source contracts, 2) PW construction contracts, and 3) GM approved purchases approved for effective purchasing in compliance with the District's policies. See Appendix A for the list of internal controls and related control activities. The scope of this assessment was to review and evaluate contracts processed in the period from January 1, 2020 to June 30, 2021. Our service was provided in accordance with the American Institute of Certified Public Accountants’ Statement on Standards for Consulting Services. OCSD – CONTRACTS PROCUREMENT 2 | eidebailly.com Methodology We designed a set of assessment procedures that were tailored based on the nature and nuances of business processes for sole source contracts, PW construction contracts, and GM approved purchases. The specific procedures for each category of contracts are described below. 1. General Procedures: • Reviewed the District’s purchasing P&Ps as they relate to the procurement of sole source products and services, PW construction contracts, and GM approved purchases. • Held discussions with Purchasing and Contracts Manager to gain an understanding and nuances of The District’s contracts procurement process. 2. Sole Source Contracts: • Obtained a listing of sole source contracts, selected a sample of 15 sole source contracts, and reviewed them for authorization of sole source contracts, including approvals for sole source request forms, minutes, and justification letters. Verified that the District has established valid justification for selecting sole source vendors in accordance with the purchasing P&Ps in addition to reviewing sole source vendor service agreements and invoices. • Requisition Form: Inspected JDE system workflow records to evidence review and approval of sole source requisitions. • E-Form: Inspected Sole Source e-forms to verify 1) corresponding justification letter was submitted, and 2) appropriate approvals existed. • Justification Letter: Inspected Justification Letters to verify valid justification for selecting sole source vendors in accordance with the District's Purchasing Ordinance. • Agenda Report: Inspected Sole Source transactions exceeding $100k and verified that the associated Agenda Reports have been submitted to the Board. • Purchase Order / Invoices: Inspected purchase orders and invoices to verify appropriateness of supporting documentation. • Denied Requests: Reviewed list of denied sole source requisitions to verify whether denial was appropriate and understand reasons for denial. 3. Public Works Construction Contracts: • Obtained a listing of public works construction contracts and selected a sample of four contracts in various stages including ‘pending’ and ‘completed’ to perform the detailed testing described below. • Obtained and inspected a tracking spreadsheet showing list of contracts initial cost, final cost, delivery date, and final delivery date to determine whether contracts were executed successfully based on the monitored criteria. • Ensured competitive selection was performed (approved vendor, pre-bid, etc.), all required documentation was submitted, and conducted in compliance with both 1) Procurement P&Ps and 2) California Public Contracts Code section 20783. • Reviewed the PW construction contracts to determine that proper procedures were followed as designed to ensure contracts are appropriate, properly authorized, proper supporting documentation exists including accuracy of invoice payments, and that retention release, insurance, and bonding was obtained. • Reviewed the completed Budget Approval Forms to ensure appropriate checks and balances exist to ensure proper payment to correct vendors for completed work. OCSD – CONTRACTS PROCUREMENT 3 | eidebailly.com • Reviewed the contingency amount to ensure proper authorization and documentation including management comments and system (PM Web) evidence. • Performed a review of change orders for appropriate support and approvals. • Ensured that project participants for selected contracts were appropriate including engineering and project managers. • Inspected JDE system workflow records to evidence review and approval for selected PW contracts. 4. General Manager Approved Purchases: • Obtained a listing of GM approved purchases extracted from the District’s ERP system, JD Edwards and selected a sample of 15 contracts to perform the detailed testing described below. • Board Quarterly Report: Inspected quarterly reports submitted to the Board to verify that purchases approved by the GM were reported completely, accurately, and timely. • Requisition Form: Inspected JDE system workflow records to evidence review and approval of sole source requisitions. • Bid Process / Proposals: Inspected bid notices, request for proposals, justification letters, and other supporting documentation to verify competitive selection and appropriate protocols were followed in accordance with the guidelines in the established P&Ps. • Award Notice: Inspected determination of lowest bid or evaluation process, and award notice to verify contract was awarded based on evaluation factors set forth in the established policies and procedures. • Executed Contracts: Inspected executed contracts to verify contracts were executed successfully based on the submitted requisition and accepted scope of work. • Purchase Order / Invoices: Inspected purchase orders and invoices to verify appropriateness of supporting documentation. Testing Results and Conclusion Based on the procedures performed during this assessment, the District’s contract procurement practices appear to be in compliance with the Purchasing Ordinance as well as individual contract procurement policies and procedures established. No exceptions or findings were noted requiring immediate attention for process improvement. OCSD – CONTRACTS PROCUREMENT 4 | eidebailly.com Appendix A – Internal Controls and Related Control Activities We identified the following internal controls (IC) and/or management control activities as they relate to OC San’s contracts procurement process: IC1. GM / Assistant GM – approve and execute contracts up to $100K as well as task order bids up-to $300K for repair and maintenance contracts. IC2. The Board of Directors approve and execute contracts equal or greater than $200K including contingencies. IC3. PW Contracts Tracking: The Project Controls Group tracks projects including Public Works by status, Active versus Closed, in addition to Phase, PO, Contract and Engineering Team. Public Works contracts are approved by the Board and include a schedule of prices. • Who - Project Controls Group • What - Tracks Project Status, including cost and completion status • When - During Contract Life Cycle • How Often - Every Contract IC4. PW Contracts: Procedures exist to solicit bids and/or requests for proposal through notifications, newspaper publication, bids are tabulated, and evidence of award exists. • Who - Contracts Administrator • What - Solicit requests for bids to ensure integrity submissions • When - Inception of each approved project, prior to contracting with supplier • How Often - All Contracts IC5. PW Contracts – Vendor Pre-qualification: Procedures exist to pre-qualify vendors based upon an Evaluation Checklist, including Financial, Safety and Technical evaluations which are completed by the Evaluation Team. • Who - Bid Evaluation Team • What - Performs a review of Financial, Safety and Technical qualifications through evaluating supplier. • When - Prior to awarding contract • How Often - All Public Works Contracts IC6. PW Contracts: Contingencies of 10% are approved by the board and evidenced through minutes. • Who - Board • What - Approve contingency amount • When - Inception of each project • How Often - All Public Works Contracts IC7. PW Contracts: Change Orders are approved based upon adequate support and tracked for the cumulative change order amount to ensure that the contingency is not exceeded. • Who - Project Manager/Engineer • What - Approval and tracking change orders • When - As change orders occur • How Often - All Change Orders OCSD – CONTRACTS PROCUREMENT 5 | eidebailly.com IC8. All Contracts: Retention Release and project registration with the county are performed following project completion and appropriately evidenced. • Who - Contracts Administrator • What - Request retention release payment and county registration • When - Project Completion • How Often - All Contracts. IC9. All Contracts: Purchase Orders exist to ensure the payments to suppliers do not exceed approved project totals. IC10. PW Contracts: Budgets are prepared and approved for Public Works projects and documented in the associated approval forms. IC11. PW Contracts: Progress payments are tracked in PM Web system and include a retainage withholding. IC12. PW Contracts Administration: Risk is mitigated through obtaining a Certificate of Liability Insurance and Performance Bonds for suppliers. IC13. All Purchases: Requisitions are submitted through JDE and are reviewed and approved by department head. IC14. Sole Source Purchases: Sole Source requests are submitted with a justification letter which are reviewed and approved by Manager, Director, Purchasing Manager, and Director of Finance. IC15. Sole Source Purchases: Purchases over $100k are included in the Agenda Report and are submitted and reviewed by the Board. IC16. GM-Approved Purchases: All GM-Approved purchase over $50,000 are submitted and reviewed by the Board on a quarterly basis. IC17. GM-Approved Purchases: Procedures exist to review and evaluate submitted bids or Requests for Proposals to determine lowest and most responsive bid/proposal. OCSD – CONTRACTS PROCUREMENT 6 | eidebailly.com THE FOUNDATIO UCCESS Caring for our external and internal clients with a passion to go the extra mile. Respecting our peers and their individual contributions. Conducting ourselves with the highest level of integrity at all times. Trusting and supporting one another. Being accountable for the overall success of the Firm, not just individual or office success. Stretching ourselves to be innovative and creative, while managing the related risks. Recognizing the importance of maintaining a balance between work and home life. Promoting positive working relationships. And, most of all, enjoying our jobs ... and having fun! EideBaill)'® What i sp" y u eidebailly.com 1 January 19, 2022 TO: Audit Ad Hoc Committee Orange County Sanitation District FROM: Kelly A. Lore Clerk of the Board RE: LATE COMMUNICATION The Clerk of the Board received communication after the publication of the agenda regarding Item No. 1 presented to the OC San Audit Ad Hoc Committee. Corrections/additions highlighted in red: List of past Audits presented to the Committee was revised: 2021 General Manager Approved Purchases 2021 Sole Source Contracts 2020 Information Technology Cyber Security Assessment 2018 Procurement Card Program 2017 Fictitious Employee and Fictitious Vendors Analysis and Procedures Review 2018 Capital Improvement Project Audit 2015 Procedures of Collection and Remittance of Capital Facilities Capacity Charges 2011 Debt Covenant and Compliance Controls 2011 Asset Management Program 2011 Internal Control Policies and Procedures over Employee Compensation 2011 Internal Control Policies and Procedures over Information Technology 2011 Sole Source Contracts in Operations and Maintenance 2010 Regulatory Compliance Requirements of the Technical Services Department 2010 Scheduling Process of the Capital Improvement Program 2009 Accounting Policies and Procedures 2009 Independent Accountants’ Report on Chemical Purchases oc ~ SAN M E M O R A N D U M ORANGE COUNTY SANITATION DISTRICT AD HOC AUDIT SCHEDULE A) Risk Assessment – At the Beginning of Each Engagement Rotation Items 1) Review of Sole Source Contracts 2) Cyber Security (Twice) 3) Review of Risk of Fictious Vendors/Employees 4) Capital Facilities Capacity Charges – Cities Review 5) Capital Improvement Program (CIP) – Contracts, Policies, Procedures Year 1 A) Risk Assessment Conduct a comprehensive enterprise risk assessment to identify key areas of risk associated with OCSD achieving its objectives and where potential for fraud can occur. Through the risk assessment process, we will prioritize areas of risk based on likelihood and impact to develop an internal audit plan. B) Open – Based on Risk Assessment and Committee Input Year 2 A) Review of Sole Source Contracts – Rotation Item B) Cyber Security – Rotation Item C) Open – Based on the Risk Assessment and Committee Input Year 3 A) Review of Risk of Fictious Vendors/Employees –Rotation item B) Open – Based on the Risk Assessment and Committee Input Year 4 A) Capital Facilities Capacity Charge – Review of Cities – Rotation Item B) Cyber Security – Rotation Item Year 5 A) Capital Improvement Program (CIP) – Contracts, Policies, Procedures etc. – Rotation B) Open – Based on the Risk Assessment and Committee Input ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2022-2093 Agenda Date:2/9/2022 Agenda Item No:8. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FISCAL YEAR 2022-23 AND FY 2023-24 BUDGET GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve the FY 2022-23 and FY 2023-24 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2022-23 and FY 2023-24 budget. BACKGROUND For the budget process, the Administration Committee establishes the Budget Assumptions and approves the Budget Calendar. Staff will make a brief presentation at the Committee meeting. RELEVANT STANDARDS ·Ensure the public’s money is wisely spent ·Produce appropriate financial reporting ADDITIONAL INFORMATION Currently, there are no proposed changes to the Orange County Sanitation District (OC San) Fiscal Policy. The Fiscal Policy is published in the FY 2020-21 and 2021-22 Budget document (Section 3, Pages 1-8), and is available on OC San’s website. ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·FY 2022-23 & FY 2023-24 Preliminary Budget Assumptions ·Budget Calendar 2022-24 ·Presentation Orange County Sanitation District Printed on 2/1/2022Page 1 of 1 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT FY 2022-23 Preliminary Budget Assumptions 1 Economic Assumptions • Inflation for the Los Angeles-Long Beach-Anaheim Orange County has seen a percentage increase in consumer price index (CPI-U) of 6.0% from November 2020 through November 2021. The previous FY 2022-23 forecast obtained from Chapman University was for 2.5%. These numbers will be monitored throughout the budget process and adjustments made as needed. Revenue Assumptions • The single-family residence (SFR) rate will increase by $4 (1.2 percent) to $347 in FY 2022- 23, which is less than the projected CPI. • Note that each $1 increase in the SFR rate generates approximately $900,000 per year. • The capital facilities capacity charge (CFCC) fee captures only those infrastructure costs that relate to additional capacity. The proposed CFCC fee approved by the Board in March 2018 will increase by 6.98 percent for FY 2022-23. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and replacement, will be supported through user fees. • In alignment with the Facilities Master Plan adopted in December 2017, a rate study was completed in December 2017 to ensure that the CFCC fee methodology remains equitable and to confirm that an appropriate share of system costs would be recovered from new development. • Due to recent enacted legislation, a follow-up to the rate study completed in 2017 for the CFCC methodology was completed in 2020 for cost recovery for Accessory Dwelling Units (ADU). • Revenues will be budgeted to reflect little growth in Equivalent Dwelling Unit (EDU) connections that have remained flat over the past five years. • Permit user rates for flow will increase by 3.6 percent, Biochemical Oxygen Demand (BOD) will increase by 0.5 percent and Total Suspended Solids (TSS) will increase by 2.7 percent for FY 2022-23 based upon the Rate Study completed in December 2017. • Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre. • Annexable property in OC San’s service area sphere is minimal; consequently, no FY 2022-23 income from annexation fees is anticipated. • Property tax revenues are preliminarily estimated to increase by approximately three percent from $103.2M in FY 2021-22 to $106.3M in 2022-23. Revenue increased by 5.5 percent in FY 2020-21. A two percent annual increase in Assessed Value is authorized by the state constitution and is included in the increases noted above. The additional increase in assessed value is from authorized increases to market value when property is sold at a higher value. • Earnings on the investment of OC San’s operating cash and reserves will be budgeted at 1.0 percent of the average cash and investment balance projected for the fiscal year. FY 2022-23 Preliminary Budget Assumptions 2 • No additional debt issuance is scheduled for FY 2022-23. However, staff will continue to review its debt program for potential savings through refunding opportunities. Operating Assumptions • Operating expenses are expected to approximate the adopted FY 2021-22 budget of $184 million. • Average daily flows are projected at 185 mgd for FY 2022-23 and 185 MGD for FY 2023-24. The FY 2022-23 flow projection of 185 mgd reflects an increase of 4 mgd from the actual for the first 5 months of the current year and an increase of 2 mgd the final actual flow for FY 2020-21. Employee/Staffing Assumptions • Staffing level is expected to remain relatively flat. The total FY 2021-22 authorized staffing level is 639.00 FTEs, excluding Management Discretion positions. • Vacant positions as of 12/31/2021 are budgeted at 50 percent of step 1 for the remainder of FY 2021-22 and at 100 percent of step 2 for FY 2022-23. • New positions will be projected at 100 percent of step 1 for FY 2022-23. • A 3.0 percent vacancy factor on authorized positions has been budgeted for FY 2021-22. The actual vacancy factor is currently running at 4.4 percent. This vacancy factor accounts for time spent for recruitment and turnover. • The Memorandums of Understanding (MOUs) for the Orange County Employees Association (OCEA), the Local 501, and the Supervisor and Professional (SPMT) groups expire on June 30, 2022. Salary adjustments will be included in the budget for COLA based upon the current MOUs. • Retirement costs for employees enrolled in Orange County Employees Retirement System (OCERS) Plan H (264 employees) are estimated at a rate of 13.46 percent of the employee’s base salary for FY 2022-23, up from 13.22 percent in FY 2021-22. The rates for Plan H include OC San’s pickup of 3.5 percent of employees’ required contributions. Employees enrolled in OCERS Plan B (54 employees) are estimated at a rate of 13.25 percent of the employee’s base salary for FY 2022-23, up from 11.23 percent in FY 2021-22. All employees hired on or after January 1, 2013, are enrolled in OCERS Plan U (298 employees) and are estimated at a rate of 9.86 percent for FY 2022-23, down from 9.88 percent in FY 2021-22. Interns are not enrolled in OCERS, so their retirement benefits are calculated at 6.2 percent (FICA rate). • Other employee benefits and insurances will be budgeted to increase in FY 2022-23 by moderate but yet to be determined amounts. Materials, Supplies, & Services Assumptions • The proposed operating budget will continue to reflect an emphasis on safety, security, and maintenance of plant assets and infrastructure. • An amount equal to half of one percent of the Operating materials and services budget will be a contingency for prior year re-appropriations. Since the current year’s budget lapses on FY 2022-23 Preliminary Budget Assumptions 3 June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year. • An amount equal to 0.85 percent of the Operating materials and services budget will be the General Manager’s contingency budget. These funds will be allocated to appropriate line items during the year after requests and justifications for unanticipated needs are approved by the General Manager. • Resource needs for strategic initiatives will be included in the budget. Capital Improvement Program Assumptions • The FY 2022-23 cash flow budget, based on the most current Validated Capital Improvement Program (CIP), is the target. • The baseline CIP cash flow for FY 2021-22 is $302 million. • Continual evaluation of the CIP by Financial Management, Project Management Office and Planning may result in deferral or reduction of some projects and a resultant increase in Operations & Maintenance (O&M) repair costs for materials and services, if the net cash flow impact is a decrease. • For the first five months of FY 2021-22, $41.0 million of the $224.6 million CIP budget, approximately 18.3 percent, was expended. Debt Financing • When required, OC San issues Certificates of Participation (COP) as needed to fund the CIP and to maintain reserves. • COP debt will only be used for CIP and capital expenses, not for operating expenses. • No additional new debt issuance is scheduled for FY 2022-23. • Capital financing plans no longer include future borrowings over the next ten years as the approved user fee schedule is considered sufficient. • Borrowing will be included only for facilities which do not add capacity and that are funded by all users for replacement, rehabilitation, and improved treatment. • Upon COP’s becoming callable or maturing, a determination will be made as to the benefit of paying off the obligation or refinancing the debt. Reserve Assumptions The existing reserve policy is summarized as follows: ► A cash flow criterion will be established to fund operations, maintenance, and certificates of participation expenses for the first half of the fiscal year, prior to receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this criterion will be established as the sum of an amount equal to six months operations and maintenance FY 2022-23 Preliminary Budget Assumptions 4 expenses and the total of the annual debt (COP) service payments due in August each year. ► An operating contingency criterion will be established to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer service fees were considered and adopted. The level of this criterion will be established at an amount equal to ten percent of the annual operating budget. ► A capital improvement criterion will be maintained to fund annual increments of the capital improvement program. The target level of this criterion has been established at one-half of the average annual capital improvement program over the next ten years. ► A catastrophic loss, or self-insurance, criterion will be maintained for property damage including fire, flood, and earthquake, for general liability and for workers' compensation. This criterion is intended to work with purchased insurance policies, FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake, of which OC San currently has limited outside insurance coverage of $25 million, has been estimated to be as high as $1.3 billion. The level of this criterion has been set at $100 million should such a catastrophic event occur. This criterion amount will assist OC San with any short-term funding needs until Federal and State assistance becomes available. ► Accumulated capital funds will be set aside for certain specific, short-term capital improvements as the need and availability arise. ► A capital replacement/renewal criterion has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment, and disposal facilities at the end of their useful economic lives. Based on the Facilities Evaluation Report completed in December 2017, the current replacement value of these facilities is estimated to be $3.56 billion for the collection facilities and $7.18 billion for the treatment and disposal facilities. The initial criterion level has been established at $75 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030. ► Provisions of the various certificates of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are not available for the general needs of OC San and must be maintained at specified levels. The current level of COP service reserves is projected to be $22.9 million. ► Accumulated funds exceeding the levels specified by OC San policy will be maintained for future capital improvements and rate stabilization. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this criterion. Budget Calendar 1 Tasks Responsibility Event/Due Date Phase I – Budget Preparation Strategic Plan Workshop for the Board General Manager's Office 2/17/2021 Strategic Plan Workshop for the Board General Manager's Office 3/17/2021 Strategic Plan Workshop for the Board General Manager's Office 4/21/2021 Preliminary Budget Assumptions Identified Financial Planning 1/6/2022 Preliminary Budget Assumptions & Draft Budget Calendar Presented to EMT & Managers Financial Management 1/10/2022 Preparation for Budget Kickoff / Training Session: · Develop line-item worksheets · Prepare budget instruction manual Financial Planning 1/17/2022 Budget Kickoff / Training Session: · Distribute budget manual update · Conduct budget training session · Review submission deadlines Financial Planning 1/25/2022 CIP - New Project Numbers Assigned Engineering Planning 2/7/2022 Operating Divisional Budgets: All Position Decision Packages Due to Human Resources (Laura Maravilla, Ext. 7007) with copies to Financial Planning (Lina Hsiao, Ext. 7542) · New Position · Position Upgrade · Position Reclassification or Equity Adjustment Divisional Budget Coordinators 2/7/2022 Operating Budget: Promotional Items and Conference Attendance Request Forms Due to Jennifer Cabral (Ext. 7581). Email Promotional Items Purchasing Budget Request form to: forinformation@ocsan.com. Use this form for all promotional item purchasing requests to support organizational programs. Divisional Budget Coordinators 2/7/2022 Capital Equipment Budget: Vehicle Capital Equipment Justification Form Due to Fleet Services (Bob Bell, Ext. 7214) Divisional Budget Coordinators 2/7/2022 Capital Equipment Budget: Computer Equipment Decision Packages Due to Information Technology (Rob Michaels, Ext. 7260) Divisional Budget Coordinators 2/7/2022 Budget Assumptions Presented to Administration Committee Financial Management 2/9/2022 FY 2022-23 & 2023-24 Budget Manual 2 Mid-Year Financial Report to Administration Committee Financial Management 2/9/2022 Division Budget Packages Due to Finance: · Update 2021-22 projected costs · Proposed operating costs for 2022-23 & 2023-24 · Operating Budget Expense Detail · Meetings, Memberships & Training Requests · Capital Equipment Decision Packages (other than computer and vehicle decision packages) · New program decision packages (Financial Planning will compile this information into packages for use during the budget review process.) Divisional Budget Coordinators 2/22/2022 CIP - Preliminary capital equipment request estimates delivered to PMO Financial Planning 2/22/2022 CIP - Engineering Change Control Validation Complete Engineering Project Managers 2/22/2022 Mid-Year Financial Report to Board Financial Management 2/23/2022 Complete the Compilation of the Preliminary Division Budget Packages Financial Planning 2/24/2022 CIP - Future Project Attributes Reviewed and Updated Engineering Planning 2/28/2022 CIP - Project Budget Reviews Complete Engineering PMO 3/1/2022 CIP - Validated CIP budgets delivered to IT/Finance Engineering Planning 3/28/2022 Department Narratives for Budget Executive Summary Due to Financial Planning EMT 4/11/2022 Phase II - Budget Review Divisional Budgets - Distribution of Preliminary Line Item Requested Budget to Department Heads and Managers along with Analysis/Questions for Review Financial Planning 3/2/2022 Operating Budget – Information on New Positions, Position Upgrades & Reclassifications Submitted to the General Manager Human Resources 3/2/2022 CIP - Engineering /Finance Budget Review Meetings: Final Adjustments, Confirm 20-year Cash Flow, and Capital Equipment Delivered to PMO Engineering/Financial Management 3/1-3/15/2022 Operating Budget - Division Budget Review Meetings with Finance and Division Representatives Financial Planning & Division Representatives 3/7 - 3/10/22 Budget Revenue Update Presented to Administration Committee Financial Planning 3/9/2022 Divisional Budgets - Completion of Preliminary Budget and Compilation into Departmental Budgets Financial Planning 3/15/2022 Budget Calendar 3 Operating Budget – Recommendations to General Manager Financial Planning 3/16/2022 Divisional Budgets – Performance Budget Documents Due to Financial Planning (Lina Hsiao): · Organization Charts · Performance Results (2020-21) · Performance Measures (2022-23 & 2023-24) Divisional Budget Coordinators 3/18/2022 Final Operating Budget – General Manager Review of Budget Recommendations Financial Planning, GM, & Department Heads 3/21 - 3/24/22 Capital Equipment Budget - Requests Reviewed & Approved Financial Planning, GM, & Department Heads 3/21 - 3/24/22 Operating Budget – Report of General Manager's Decisions on New Positions, Position Upgrades & Reclassifications Submitted to the Financial Planning General Manager 3/21/2022 CIP – Approve Proposed CIP Budget EMT 3/28/2022 CIP – Operations Committee Review of Proposed Budget Engineering 4/6/2022 Phase III - Budget Presentation Operating Budget – Presentation of Preliminary Budget by Division/Department to EMT Financial Management 4/11/2022 Operating Budget – Overview to Administration Committee Financial Management 4/13/2022 CIP - Final CIP Budget Document Preparation and Incorporation into Final Budget Document Financial Planning 4/18/2022 CIP - Review draft of Final Budget Document pages with Engineering Planning & PMO Financial Planning 4/18/2022 Initial - Proposed Budget Finalized Financial Planning 4/28/2022 Operating Budget - Overview to Operations Committee Financial Planning 5/4/2022 CIP Budget Overview to Operations Committee Engineering/Financial Management 5/4/2022 General Manager’s Budget Message Completed GM / Financial Planning 5/9/2022 Operating Budget - Overview to Administration Committee Financial Planning 5/11/2022 CIP Budget Overview to Administration Committee Engineering/Financial Management 5/11/2022 Approval of General Manager’s Budget Message General Manager 5/18/2022 Final - Proposed Budget to Printer Financial Planning 5/25/2022 Phase IV - Budget Deliberations Final Draft - Proposed 2022-23 & 2023-24 Budget Presented to Committees Financial Management Ops- 6/1/2022 Admin- 6/8/2022 FY 2022-23 & 2023-24 Budget Manual 4 Public Hearing & Board Adoption Board of Directors 6/22/2022 Phase V – Distribution of Budget Final line item budget and equipment budgets posted in H:\ntglobal Financial Planning 7/7/2022 Phase VI – Budget Debriefing Budget Debriefing E-mail Message · Global Changes that occurred in this year's budget. · Changes since the Departments' original submittal. · Changes that occurred as a result of Board action. · Results of Budget Survey. · Overview of Budget Monitoring with Oracle JD Edwards EnterpriseOne Software and review of Budget Coordinator's Responsibility. · Overview of CIP Budget Monitoring. · Suggestions for Budget Process Improvements. Financial Planning 7/14/2022 2/1/2022 1 OC San FY 2022-23 and FY 2023-24 Budget Assumptions Presented by: Wally Ritchie, Controller Administration Committee February 9, 2022 Economics • Inflation for Orange County is 6.0% (11/21). Revenue • The single-family residence (SFR) rate will increase by $4 (1.2 percent) to $347. Reserves • Current reserve policy is unchanged. Budget Development Assumptions 2 1 2 2/1/2022 2 Comparison - SFR Rates LA C S D OR A Lo m a IR W D Fr e s n o OC S D Ea s t Ba y MU D Un i o n Sa n i t a r y Du b l i n Sa n Ra m o n Sa c r a m e n t o Ci t y of LA Ce n t r a l Co n t r a Co s t a Va l l e j o Sa n Di e g o Sa n Fr a n c i s c o 3 $1,270 $747 $660 $636 $573 $524 $486 $457 $446 $444 $343 $318 $313 $309 $226 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 San Francisco Vallejo Sanitation/Flood Control District Central Contra Costa Sanitary District City of Los Angeles City of San Diego Union Sanitary District Dublin San Ramon Services District East Bay MUD City of Hayward Sacramento County Orange County Sanitation District Oro Loma Sanitary District Irvine Ranch Water District City of Fresno Los Angeles County Annual Single Family Residential Rates (July 2021) • Average daily flows are projected to be 185 mgd. • Operating expenses are expected to approximate the adopted FY 2021-22 budget of $184 Million. Operations 4 3 4 2/1/2022 3 • Staffing level ≈ flat. 639 FTE authorized. • 3% vacancy factor. • Salary adjustments will be based on current MOUs. • Moderate increases in benefits. Staffing 5 • Cash flow assumptions are based on the most recent validated CIP. • Baseline CIP is $302 million for FY 2022-23. Capital Improvement Program (CIP) 6 5 6 2/1/2022 4 • No additional “new money” or refunding debt issuance is scheduled for FY 2022-23. Debt Financing 7 Budget Summary Revenues FY 22-23 Ten Year Cash Flow Fees and Charges $ 361M (73%) $ 3,999M (72%) Property Taxes 106M (21%) 1,183M (22%) Interest / Other 34M ( 6%) 301M ( 6%) Total Revenues $ 501M $ 5,483M Expenditures FY 22-23 Ten Year Cash Flow Operating $ 181M (30%) $ 2,018M (35%) CIP / RRR 302M (41%) 2,972M (50%) Debt Service 70M (11%) 714M (12%) Other 6M ( 1%) 37M ( 1%) Total Outlays $ 559M $5,741M Net Surplus (Deficit) $ (58M) $ (258)M 8 7 8 2/1/2022 5 Administration Committee • Budget Assumptions February • Review of Revenues March • Review of Expenditures April Budget - Key Meeting Dates 9 • Operations Committee Budget Overview May, June • Administration Committee Budget Elements Review May, June • Board Meeting FY 22-23 & FY 23-24 Budget Approval June Budget - Key Meeting Dates 10 9 10 2/1/2022 6 Questions ? 11 11 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2022-2101 Agenda Date:2/9/2022 Agenda Item No:9. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: INVESTMENT PERFORMANCE RESULTS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Chandler Asset Management (Chandler) serves as the Orange County Sanitation District’s (OC San) Investment Manager. Chandler’s Co-Chief Investment Officer, William Dennehy II, CFA, will be providing an informational presentation on the performance of OC San’s liquidity and long-term investment portfolios over the past year. RELEVANT STANDARDS ·Ensure that investment proposals and decisions are based on clearly defined standards ·Orange County Sanitation District Investment Policy ·Ensure the public’s money is wisely spent ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·OC San Staff Presentation Orange County Sanitation District Printed on 2/2/2022Page 1 of 1 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT 2/1/2022 1 OC San Reserves & Investments Presented by: Wally Ritchie, Controller Administration Committee February 9, 2022 1) Next Year's Dry Period (Cash Flow Reserve) 50% of the Operating Budget 2) Next Year's Dry Period Debt Service 100% of August Debt Service 3) Debt Service Reserve 10% of the Outstanding COPs **Non-Discretionary Seven Reserve Criteria 2 1 2 2/1/2022 2 4) Operating Contingencies 10% of Operating Budget 5) Capital Improvement Reserve 50% of average CIP for the next ten years 6) Operating & Capital Share of Catastrophe Funds 7) Replacement and Refurbishment 2% of the average CIP per year **Discretionary Seven Reserve Criteria 3 First • Provide safety of principal Second • Provide sufficient liquidity Third • Earn a commensurate rate of return consistent with the constraints imposed by the objectives Investment Objectives 4 3 4 2/1/2022 3 The Orange County Sanitation District’s Investment Policy is consistent with California Government Code: •Long-Term Benchmarks • ICE BAML 1-5 Year • Corporate Government Rated AAA – A Index •Short-Term Benchmarks • 3-month T-Bill rate • Maximum maturity of 1-year Portfolios - Long-Term and Short Term 5 • Approximately $742 million Long-Term Portfolio – Asset Allocation Category Percent US Treasury 35% US Corporate 23% Agency 22% Supranational 9% Asset Backed Sec 6% Other 5% Total 100% 6 5 6 2/1/2022 4 • Approximately $231 million Short-Term Portfolio – Asset Allocation Category Percent US Treasury 86% Negotiable CDs 5% Money Market 4% US Corporate 3% Commercial Paper 2% Total 100% 7 Questions ? 8 7 8 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2022-2095 Agenda Date:2/9/2022 Agenda Item No:10. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: RISK MANAGEMENT AND INSURANCE UPDATE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Staff, Consultant, and Broker will provide a mid-year update on the status of the Risk Management and Insurance Program as the budget process is beginning and the insurance renewals are upcoming. RELEVANT STANDARDS ·Protect OC San Assets ·Commitment to safety & reducing risk in all operations ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·Property & Casualty Insurance Status Report with Market Update ·Presentation Orange County Sanitation District Printed on 2/1/2022Page 1 of 1 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT 1 Property & Casualty Insurance Status Update Prepared by: John Preston, OC San Consultant Dennis Mulqueeney, Alliant Insurance Services February 9, 2022 ORANGE COUNTY SANITATION DISTRICT 2 Table of Contents Table of Contents Section I – Claim Data .......................................................................................................................................................... 3 A. General and Auto Liability (Third Party Liability) ......................................................................................................... 3 B. First Party Property ...................................................................................................................................................... 5 C. Workers’ Compensation .............................................................................................................................................. 6 SECTION II – Insurance Program .......................................................................................................................................... 8 A. Market Update ............................................................................................................................................................. 8 B. Coverages and Retentions ........................................................................................................................................... 8 C. Insurance Program Commentary ............................................................................................................................... 11 Section III. Topics of Interest .............................................................................................................................................. 12 A. Regulation of Insurers – Admitted vs Non-admitted Carriers ................................................................................... 12 B. Other Available Coverage Types ................................................................................................................................ 14 Section lV. Future Considerations ..................................................................................................................................... 14 A. Biannual Liability and Work Comp Actuarial Study ............................................................................................... 14 B. Review of Risk Management functional needs ...................................................................................................... 14 C. Program type options investigation ....................................................................................................................... 14 Section V. Report Attachments .......................................................................................................................................... 14 A. State of the Market PowerPoint ............................................................................................................................ 14 3 Section I – Claim Data The following section discusses current and historical claims applicable to the District’s Property and Casualty Insurance program in the following three areas: A. General and Auto Liability, including Employment Practices B. Property, Including Boiler and Machinery, Earthquake and Flood C. Workers Compensation (On the job Injury to employees) A. General and Auto Liability (Third Party Liability) The following chart depicts the amount of money paid and claim reserves for GL/Auto claims against OC San from 2013 through 12/2021 (notes: 2013 one large employment practices claim accounted for nearly all $ losses for that year; 2016 two large claims, 1- E&O Klean Waters and 1-sewer backup accounted for nearly all $ losses for that year) Incurred$ Losses by Year {2013-2022) $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 I $-■ I 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 4 The following chart depicts the number of GL/Auto claims against OC San from 2013 through 12/2021 (notes: 2015 large # losses largely due to construction and manhole covers) The following chart depicts the amount of money paid and claim reserves by type of GL/Auto claim against OC San from 2013 to present 45 40 35 30 25 20 15 10 5 0 ■ 2013 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- I 2014 2015 Claim Count by Year (2013-2022) I 2016 2017 2018 Incurred $ Losses by Claim Type (2013 -2021) I • 2019 2020 2021 2022 5 The following chart depicts the number of GL/Auto claims by type against OC San from 2013 through 12/2021 B. First Party Property Historically between 2013 and 12/2021 there have been virtually no first party pure property claims filed in excess of OC San’s $500K self-insured retention There is one current first party Boiler & Machinery (AKA Equipment Breakdown) insurance claim in process which will exceed the $25K self-insured retention. This involved the failure of P1 CenGen Cooper-Bessemer Engine 1 crankcase following a contractor’s rebuild of the engine. The total loss could range between three and four million dollars. Investigation by carrier is ongoing. If the claim is ultimately accepted, the carrier is expected to subrogate their loss against the contractor. 40 35 30 25 20 15 10 5 0 I I I I Claim Count by Claim Type (2013-2021) I I ■ ■ ----- 6 C. Workers’ Compensation The following chart depicts the number of OC San work comp claims by fiscal year from 2013 through 12/2021 The following chart depicts the amount paid and in reserves on OC San work comp claims by fiscal year from 2013 through 12/2021 0 0 0 0 5 0 5 0 5 0 5 0 5 0 5 0 0 0 5 0 0 0 0 0 0 0 0 Claim Count 0 0 $ $ 0 0 $ 5 $ $ $ 0 050 $5 0 $5 $ $ 0 $0 $ 00 000 $ 00 000 $ 00 000 $ 00 000 $ 000 000 $ 00 000 0 0 0 5 0 0 0 0 0 0 0 0 Total ncurred b iscal ear 0 0 Sum ofCOUNT ■ FISCAL YEAR Y Sum of Total Incurred I I I I - FISCAL YEAR T 7 The following chart depicts the amount paid and reserves by type on OC San work comp claims from 2013 through 12/2021 The following chart depicts the number of claims by type on OC San work comp claims from 2013 through 12/2021 $ $ 055 $ $ $ 5 $ 0 $ 5 5 $ $ 5 $ 0 5 $0 $ 00 000 $ 00 000 $ 00 000 $ 00 000 $500 000 $ 00 000 $ 00 000 $ 00 000 $ 00 000 $ 000 000 all Slip i erent e el all Slip Same e el all Slip iscellaneous Cght n twn Ob ect Strain ushing ulling isc o h sical n ental Stress isc Other mul bod parts Strain iscellaneous Strain i ing isc Cumula e Trauma Top 0 Causes of nur b Total ncurred 0 0 7 7 8 9 10 11 11 13 17 22 30 0 5 10 15 20 25 30 35 Top 10 Causes of Injury by Claim Count 2013-2021 Sum ofTotal Incurred I I I I I CAUSE_DESC ? I I 1 I I I I 8 SECTION II – Insurance Program A. Market Update Attached is a ower oint presentation entitled “ nsurance arket Update & actors Impacting the arket” that discusses current issues affecting the insurance marketplace. In summary, the industry remains in what is referred to as a “hard market c cle” which is characterized b reduced capacit from insurers and firm pricing for most lines of coverage. The continued frequency and severity of catastrophic losses, along with challenges in containing the explosion in tort liability cases, and issues with cyber liability losses dominate the discussion. B. Coverages and Retentions Coverage in place for the current fiscal year are as depicted in the table below: Coverage Limits Retention "All Risk" Property, including Flood $1,000,000,000 All Risk All Risk: $500,000 Per Occurrence $25,000,000 Flood Limit - Per Occurrence and in the Annual Aggregate $1,000,000 All Flood Zones Per Occurrence excluding Flood Zones A & V $25,000,000 Flood Limit for scheduled locations in Flood Zones A & V Per Occurrence and in the Annual Aggregate $1,000,000 Per Occurrence for Flood Zones A & V Not Covered Earthquake Shock Various Sublimits Apply APIP –Boiler & Machinery $100,000,000 $25,000 Various Sub-limits Apply APIP - Cyber $40,000,000 Annual Policy and Program Aggregate $250,000 Per Claim for each Member/Insured with Total Insured Value (TIV) greater than $750,000,000 at the time of policy inception $2,000,000 Insured/Member Annual Aggregate 8 Hour waiting period for Dependent/Business Interruption Loss Various Sub-limits Apply 9 ACIP Crime $5,000,000 Per Occurrence $25,000 Per Occurrence • Employee Theft – Per Loss Coverage • Forgery Or Alteration • Inside The Premises – Theft Of Money And Securities • Inside The Premises – Robbery Or Safe Burglary Of Other Property • Outside The Premises • Computer Fraud • Funds Transfer Fraud • Money Orders And Counterfeit Money PRISM Excess Workers’ Compensation Program $4,000,000 excess of $1,000,000 Workers’ Compensation and Employers’ Liability $1,000,000 SIR each occurrence $45,000,000 excess of $5,000,000 Workers’ Compensation Statutory excess of $50,000,000 Workers’ Compensation PRISM Pollution Program $50,000,000 Policy Aggregate Limit of Liability for all Members $250,000 Each Incident $10,000,000 per Pollution Condition $10,000,000 per Member Aggregate Limit of Liability 5 Days Business Interruption – New Conditions AD&D Travel Accident • Class 1: N/A 24 Hour Business Travel, Extraordinary Commutation: $500,000 • Class 2: 24 Hour Business Travel, Extraordinary Commutation: Ten (10) times Salary subject to a Maximum of $500,000 • Class 3: Business Travel Family, Extraordinary Commutation: $25,000 • Class 4: Business Travel Family, Extraordinary Commutation: $10,000 Various Sub-limits Apply 10 Builders Risk $90,000,000 Combined Single Limit Any One Occurrence $1,000,000 Physical Damage $1,000,000 Flood. Various Sub-limits Apply 10.0% VARTOL, with a Minimum of $1,000,000 Earth Movement General Liability - $10m xs $750k SIR – 1st Layer $10,000,0000 Completed Operations Hazard Aggregate $750,000 $10,000,0000 Any one Occurrence, Wrongful act or offense for Bodily Injury, Property Damage, Public Officials Errors and Omissions, Employment Practices Liability, or Personal Injury or any combination thereof $40,000,000 Annual Policy Aggregate Excess Liability $15M xs $10M – 2nd Layer $15,000,000 Each Occurrence Follow underlying $50,000,000 Policy Aggregate Cap Excess Liability $5M xs $25M – 3rd Layer $5,000,000 Each Occurrence or Wrongful Act Follow underlying $5,000,000 Aggregate Limit Where Applicable Excess Liability $10M xs $30M – 4th Layer $10,000,000 Each Occurrence Follow underlying $10,000,000 Aggregate Limit DIC $5M p/o $25M $5,000,000 part of $25,000,000 Primary CA Earthquake: 5% of the TIV of each unit at the time when such loss occurs, subject to $5,000,000 minimum per occurrence All other Perils:$25,000 per occurrence DIC $10M p/o $25M $10,000,000 part of $25,000,000 Primary Same as above DIC $10M p/o $25M $10,000,000 part of $25,000,000 Primary Same as above 11 Ocean Marine - Pollution $5,000,000 any one vessel any one accident N/A Ocean Marine - Primary $600,000 Hull & Machinery $10,000 Hull & Machinery $1,000,000 Protection & Indemnity $2,500 BI/$10,000 PD Protection & Indemnity $5,000 Medical Payments Nil Medical Payments $1,000 Personal Effects $250 Personal Effects Ocean Marine - Excess $9,000,000 xs $1,000,000 each accident or occurrence. Follow underlying Special Event Liability $1,000,000 Per Occurrence N/A $2,000,000 General Aggregate C. Insurance Program Commentary The types, amounts, deductibles and other features of coverage purchased (shown above) are reviewed each ear through the Committee process as recommended b the istrict’s broker Risk anager and inancial Officers. The coverages, amounts and deductibles are in keeping with what one finds for other large public entity water and wastewater operations. Currently and historically OC San’s insurance program has consisted mainl of coverage for what would normally be percei ed as “catastrophic” e ents. eaning largely, programs with high limits and high retentions, as OC San and others similarly positioned, generally have the financial wherewithal to self-fund low dollar, more frequent events. OC San chooses its various retention levels and limits each year based on review of independent actuarial analysis, actual losses, and insurance market conditions. While OC San could and does consider different program structures, (at least annually) i.e. lower retentions, or higher limits etc., there are practical considerations involved. For some lines of coverage, lower retentions are generally not available in the market to large governmental entities, and no doubt would be considerably more expensive on both a real cost, and actuarial basis. Many California governmental entities participate in risk sharing pools “J A’s to obtain impro ed ser ices costs or co erage that may not be available in the commercial insurance market. In fact, OC San does participate in PRISM for its excess workers’ compensation co erage. PRISM is the largest risk sharing pool in the country. CSRMA is another risk sharing pool that OC San is familiar with and is designed for wastewater treatment entities. OC San recently did a comprehensive review of CSRMA offerings and while CSR A is a “good fit” from a purel operational point of iew OC San would be b far the largest member of the group, and at this time, CSRMA does not offer meaningful advantages for participation to OC San. 12 Section III. Topics of Interest A. Regulation of Insurers – Admitted vs Non-admitted Carriers Insurance companies are highly regulated at the State level. Often times in large commercial insurance programs for complex operations, especially for operations that are viewed within the insurance industry as being a “difficult risk” a program will commonl contain a mix of insurers that are regulated in different wa s by the different States where they operate. Generally, States designate insurers operating in their State as either “Admitted” or “ on-Admitted” insurers. This is the case in California. The designation of an insurance compan b a State’s nsurance Commissioner as “admitted” ma seem to gi e the compan a stamp of authority, but this designation is primarily an administrative one, rather than a mark of quality, strength, or stabilit . Other factors than an insurer’s regulator status within a particular State are usuall more meaningful when selecting carriers for any particular coverage. Key factors would include the carriers’ financial strength pricing structure for coverage types it offers, and experience in underwriting. To qualif as an admitted carrier an insurance compan must file an application with each state’s insurance commissioner and be approved. Appro al requires compliance with a state’s insurance requirements including the filing and appro al of that compan ’s policy forms and rates. This process often takes a long time, and lacks flexibility. Once a carrier is licensed to transact insurance business in a certain State as an admitted carrier, the carrier is required to pay a portion of its income into the State's insurance guarantee association. One of the main selling points of being “admitted” is that the carrier’s liabilities are backed b that state’s “guarantee fund.” If an admitted company becomes insolvent, the state should help pa off polic holders’ claims. A “non-admitted” carrier is often referred to as an “excess and surplus line carrier”, and operates in a State without going through the approval process required for admitted companies. Non-admitted carriers are not bound by filed forms or rates and therefore have much greater flexibility to write and design policies to cover unique and specific risks, and to adjust premiums accordingly. When admitted markets cannot or will not write a risk, or when an admitted carrier cannot offer the appropriate terms, non-admitted markets are available to fill this gap. Non-admitted insurance carriers are monitored for State rule compliance by the State Surplus Lines Association, in coordination with the Department of Insurance. Rules and regulations are less invasive than for the admitted markets. The most obvious difference between admitted and non-admitted is that purchasers of non-admitted policies do not ha e the protection afforded b the state’s guarantee fund, however this concern is usually mitigated by placing coverage only with financially strong non-admitted insurers. Many non-admitted insurers are financially stronger than admitted insurers. Each state does charge taxes against premium for non-admitted insurance, and agents must be licensed in surplus lines to sell non-admitted insurance, collect the tax and remit it to the State. The designation as “non-admitted” should not be taken as an indication that these insurance carriers are not legitimate or financially stable. In fact, to sell surplus lines insurance, non-admitted insurance companies have to set aside a large monetary reserve or secure adequate reinsurance for their writings. 13 Gi en the complexit of OC San’s operations and the overall market dynamics of cost and availability of insurance within the State a number of OC San’s insurers are, not surprisingly, non-admitted. This is not in any way uncommon, as nearly all large California insurance program placements, and certainly those for public entities, contain a mix of admitted and non-admitted markets. The regulatory status and financial strength, as indicated by an A.M. Best Rating, of the carriers in the Districts’ Program is as follows: Insurer AM Best Rating CA Status Great American Excess and Surplus Insurance Co. A+/XV Non-Admitted Gemini Insurance Co. A+/XV Non-Admitted Arch Insurance Co. A+/XV Admitted Great American Assurance Co. A+/XV Admitted Liberty Mutual Insurance Co. A+/XV Admitted General Security Indemnity Co. of AZ A+/XV Non-Admitted CUMIS Specialty Insurance Co. Inc. A/XII Non-Admitted Mercer Insurance Company A/X Non-Admitted National Union Fire Insurance Co. of Pittsburgh, PA A+/XV Admitted Atlantic Specialty Insurance Co. A+/XV Admitted Ironshore Specialty Insurance Co. A/XIV Non-Admitted North American Capacity Insurance Co. A+/XV Admitted Arch Specialty Insurance Company A+/XV Non-Admitted Chubb Bermuda Insurance Ltd. A+/XV Non-Admitted Convex Insurance UK Limited A-/XV Non-Admitted Crum & Forster Specialty Insurance Company A/XIV Non-Admitted Endurance Worldwide Insurance Limited A+/XV Non-Admitted Evanston Insurance Co. A/XV Non-Admitted Fidelis Underwriting Limited A/XV Non-Admitted International General Insurance Co. A/XV Non-Admitted Lancashire Insurance Company (UK) Ltd. A/XIV Non-Admitted Landmark American Insurance Co. A+/XIV Non-Admitted Lexington Insurance Company A/XV Non-Admitted Liberty Surplus Insurance Corporation A/XV Non-Admitted Lloyd’s of London A/XV Non-Admitted National Fire and Marine Insurance Company A++/XV Non-Admitted PartnerRe Ireland Insurance Ltd. A+/XV Non-Admitted QBE Specialty Insurance Company A/XIV Non-Admitted StarStone Specialty Insurance Company A-u/XI Non-Admitted Westport Insurance Corporation A+/XV Admitted XL Insurance America Inc. A+/XV Admitted Beazley A/XV Non-Admitted 14 Non-Admitted carriers predominate the list as very few admitted commercial insurance carriers are interested in writing public entity risks, and those that do will generally charge more in premium and are less flexible on coverage terms. B. Other Available Coverage Types While the District has a robust insurance program, other coverages are available in the market that governmental entities are considering. The range of these is large, however some of the more active discussions concern the risk areas of pandemic, active shooter, and parametric earthquake products. Discussion of these, or addressing other perils is always available. Section lV. Future Considerations A. Biannual Liability and Work Comp Actuarial Study B. Review of Risk Management functional needs C. Program type options investigation Section V. Report Attachments A. State of the Market PowerPoint Orange CountySanitation District Insurance Market Update & Factors Impacting the Market Proprietary & Confidential © 2021 Alliant Insurance Services, Inc. All rights reserved. December, 2021 Presented by:Dennis Mulqueeney 2 COVID Cyber Geopolitical Natural catastrophes Social inflation Social unrest We are in unprecedented times… Public trust has eroded Community trust in law enforcement at historic lows We are in the midst of a pandemic that turned our lives upside down Social injustice has caused much angst among citizens and brought about protests pitting groups against each other The trajectory of social inflation continues to rise steeply Cyber breaches are impacting every sector Natural catastrophes are now systemic 3 Market Conditions •Liability capacity pull back and withdrawals have been significant over the past two years •Property capacity has stabilized with new capital providers •Cyber capacity is shrinking and particularly acute for certain industries (Public Entity) •COVID-19 continues to create uncertainty around its impact on the industry as the Delta variant wave continues cause significant illness and death •Insurers produced negligible profit in 2020 –$83b in Global Insured CAT losses •Workers Compensation remains stable but concerns remains around the development of presumptive legislation for Cancers, PTSD and etc. •Historically low interest rates have hampered carrier investment returns •An increased pattern of major property catastrophes such as hurricanes, typhoons, wildfires, etc. over the past 5 years. Is this the new norm? •Consist increases in attritional property losses (fires, tornados, hail, wildfires) •Social inflation driving up liability verdicts and settlements •Litigation financing is driving large claims •Ransomware cyber losses are systemic •Industry is well capitalized –$929B of surplus (all time high) •New capital is being deployed Most challenging insurance market in decades Property Cyber Excess Liability Most impacted coverage lines: 1/iant Combined Ratio: Neutral 4 Combined Ratio 2001 –2020 Yearly (All P/C Lines) Sources: NAIC data sourced through S&P Global Intelligence; Insurance Information Institute. 116.0 107.3 100.2 98.5 100.9 92.4 95.6 105.1 100.4 102.5 108.3 103.2 96.3 97.2 98.0 100.8 103.9 99.3 98.8 98.6 90 100 110 120 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Hurricanes, Wildfires Drive CR Higher Heavy Use of Reinsurance Lowered Net Losses Best Combined Ratio Since 1949 (87.6) Higher CAT Losses, Shrinking Reserve Releases, Toll of Soft Market Sandy 3 Consecutive Years of U/W Profits; 1st time since 1971 –73 1/iant Policyholder Surplus: Positive 5 Policyholder Surplus Sources: NAIC data sourced through S&P Global Intelligence; Insurance Information Institute. 2007–2020 Quarterly Drop in 2018 due to unrealized investment losses $400 $500 $600 $700 $800 $900 07 : Q 3 08 : Q 1 08 : Q 3 09 : Q 1 09 : Q 3 10 : Q 1 10 : Q 3 11 : Q 1 11 : Q 3 12 : Q 1 12 : Q 3 13 : Q 1 13 : Q 3 14 : Q 1 14 : Q 3 15 : Q 1 15 : Q 3 16 : Q 1 16 : Q 3 17 : Q 1 17 : Q 3 18 : Q 1 18 : Q 3 19 : Q 1 19 : Q 3 20 : Q 1 20 : Q 3 Surplus at end of 2020 stood at $929.1B, an all-time high 2007:Q3 Pre-Crisis Peak Drop in 2011 due to very large CAT losses $ Billions 1/iant 6 COVID Related Claims Source: COVID Coverage Litigation Tracker, cclt.law.upenn.edu Loss Estimates Circa $60B to $70B Cumulative Filings Who is Suing? 1542 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 23 - M a r 23 - A p r 23 - M a y 23 - J u n 23 - J u l 23 - A u g 23 - S e p 23 - O c t 23 - N o v 23 - D e c 23 - J a n 23 - F e b 23 - M a r Industry “Pressure Point” 99 104 207 589 0 200 400 600 800 Personal & Laundry Accommodation Ambulatory Health Care Food & Drinking Places Insurer Defenses No physical damage Exclusion for loss due to virus or bacteria 1/iant 7 Average Rate Changes by Line of Coverage Q2 2021 Property Property CAT with Poor Loss Experience Up 20% + Property Non CAT with Positive Loss Experience Up 5% to 10% Property Non CAT with Poor Loss Experience Up 15% + Property CAT with Positive Loss Experience Up 10% to 15% Casualty Up 5% to 10% Primary General Liability Auto Up 5% to 10% Up 25% + Excess Liability Workers Compensation Down 5% to Up 5% Cyber Up 25% to 50% Positive Security Posture Poor Security Posture Up 50% to Over 100% 1/iant 8 Property Update •Carriers are still carefully managing their capacity deployment •New market entrants creating solutions and drive competitiveness on programs for both challenged and non-challenged occupancies Capacity •Carriers are still aggressively looking to reduce the amount of manuscript/bespoke policy language •Continued focus on exclusions for Communicable Disease and Cyber •Certain occupancies and locations there remains focus on Strikes, Riots, and Civil Commotions Coverage •Carriers are continuing to challenge property retentions on specific classes of business •Underwriters are also still pushing for percentage hail deductibles in hail prone states, with 2% becoming the standard Retentions •Rate continues to be moderating •Most carriers have moved through multiple cycles of “book corrections” and now report levels of profitability •Pricing on large shared/layered accounts see benefits from new markets/capacity •Flat or single digit rate increases are still reserved for the most competitive accounts with good risk control and loss activity •Tough occupancies and poor loss histories experiencing rate increases in the double digits, albeit not at the levels experienced throughout 2019 and 2020 Rate continues to be moderating + 1/iant 9 Major U.S Losses in 2020 U.S 2020 Billion-dollar Weather and Climate Disasters Central Severe Weather July 10 –11 Western Wildfires, California, Oregon, Washington Firestorms Fall 2020 Western/Central Drought and Heatwave Summer –Fall 2020 Central and Eastern Severe Weather May 3 –5 Southern Severe Weather April 21 –23 Central, Southern and Eastern Severe Weather April 27 –30 South Texas Hail Storms May 27 Hurricane Hanna July 25 –26 Hurricane Delta October 9 –11 Hurricane Sally September 15 –17 Hurricane Zeta October 28 –29 Southeast and Eastern Tornado Outbreak April 12 –13 South, Central and Eastern Severe Weather May 20 –23 South, East and Northeast Severe Weather Feb 5 –7 Hurricane Isaias August 3 –4 Southeast Tornadoes and Northern Storms and Flooding Jan 10 –12 Tennessee Tornadoes and Southeast Severe Weather Mar 2 –4 Midwest and Ohio Valley Severe Weather March 27 –28 North Central and Ohio Valley Hail Storms and Severe Weather April 7 –8 Central Severe Weather – Derecho August 10 Hurricane Laura August 27 –28 Tropical Storm Eta November 8 –12 t ........ ........... 1 ..... . I ........... ............................ , ............................ r I r························ . ............. : ··········································• 0 r···············································• r··························• •······················ ............................................. i ........ • ························• •··· .········ .· .. i .:: ::: ::: ::: :::: :::: :::: :::: :::: ::: ::: ::: :::!. J ...... ..,1 • I ····················r .:::::::::::::::::::::::::::::::::::::··········j l ·1 ~··,:······························• • r·············..! ; V . . l = •••••••••••••••••• .-··· ...................... .-················• • 1/iant 10 Recent CAT Losses Hurricanes Wildfires Texas Freeze in insured losses (US) $30B+ in insured loss $16B Burned over 9,000,000 acres Record-breaking 30 named storms in 2020 2020 wildfires set record Estimated $20B+ insured losses Over 110 deaths associated Estimated to be the largest Q1 loss record 1/iant 11 U.S. Inflation-Adjusted Insured Cat Losses $ Billions, 2019 41 38 80 111 51 24 67 1980s: $5B 1990s: $15B 2000s: $25B 2010s: $35B $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 Average for Decade Hurricane Andrew WTC Katrina, Rita, Wilma Harvey, Irma, Maria Insured Cat Losses Are Increasing At An Alarming Rate –Nearly 700% Since 80’s *Sources: Property Claims Service, a Verisk Analytics business; Insurance Information Institute. I I I I I I I I I I I \ \ \ \ \ \ \ \ \ \ l l 1/iant 12 Casualty Update •Umbrella and Excess Liability market remains challenging •Significant Umbrella and Excess rate increases and coverage decreases remain common. Underwriting authority is shifting, causing some underwriting delays •Auto Liability remain under rating pressure, exacerbated by a number of insurers exiting the auto liability market or declining to offer mono-line auto liability •Workers’ Compensation continues to exhibit consistency and stability •Claims frequency and severity remains high driven by social inflation/nuclear verdicts and natural catastrophes General •Capacity continues to be constrained for difficult risks •New market entrants have very limited appetites, generally offering capacity in less challenged specialties. Capacity •There is an increased focus on clarifying or excluding certain coverage for chemicals, energy, communicable disease (COVID-19 specifically), abuse and molestation Coverages + + + 1/iant 13 Auto Liability Casualty Market Major Disruptors •Opioids •Tele Medicine •Aging Workforce •Medical Cost Inflation •Cancer & PTSD Presumption •Workplace Violence •COVID •Increase in Catastrophic Losses •Litigation Financing •Organized Plaintiff Bar •Personal Injury Trends •Punitive Damage Awards •Aging Infrastructure •Sexual Misconduct •Excessive Force •Cost of Vehicles/ Technology •Fatality Trends •Distractive Driving –Cell Phones •Frequency and Severity Trajectory Workers Compensation General Liability & Excess Liability 1/iant 14 Upward Trend in Liability Claims Sources: NAIC data sourced from S&P Market Intelligence; Insurance Information Institute. Billions $5 $10 $15 $20 $25 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 Calendar Year 1/iant 15 Median Value Large Liability Losses $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Median Value of Top 75 Claims Median Value of Top 50 Claims Median Value of Top 25 Claims Median Value of Top 10 Claims Median Values 10 Years Ago 7 Years Ago 5 Years Ago 3 Years Ago Current■ ■ ■ ■ ■ 1/iant 16 The Changing Legal Environment Sources: Swiss Re Economic Insights, Burford Capital. Anchoring: “Jackpot Justice”Litigation Financing Median, 50 Largest Jury Verdicts Percent of US Law Firms Using Litigation Financing 27.70 30.74 41.75 54.33 0 10 20 30 40 50 60 2014 2015 2016 2017 $ M i l l i o n s 7% 36% 0% 10% 20% 30% 40% 2013 2017 Litigation is a financeable asset. –68% of US Law Firms I l I I 1/iant 17 Hyper-Social Inflation Social Inflation is a uniquely American phenomenon because the United States is the only country in the world that routinely uses jury trials for civil cases. Jurors have unconscious biases derived from the culmination of their life experiences. Loss Year Description Total Paid 2018 Sexual Abuse (Class Action)$500,000,000 2017 Sexual Abuse (Class Action)$215,000,000 2015 Methane Gas Leak $120,000,000 2015 Bus Shelter Collapse (Single Plaintiff)$115,000,000 2014 Child Abuse/Foster Care $113,400,000 2011 Police Shooting/Wrongful Death $97,000,000 2014 Dangerous Condition/Landslide $71,500,000 2016 Vehicle Accident/Fire Ambulance $65,750,000 2016 Wrongful Death $60,000,000 2015 Strip Search (Class Action)$53,000,000 2012 Dangerous Condition/Bridge Fire $50,000,000 2017 Vehicle Accident/Motorcycle vs Auto $46,000,000 2015 Vehicle Accident/Sherriff Vehicle $42,000,000 2011 Wrongful Conviction $40,000,000 2014 Dangerous Condition/Vehicle Accident $32,500,000 2015 Sexual Abuse $31,000,000 2016 Dangerous Condition/Vehicle Accident $30,000,000 1/iant 18 Evolving: Officer Involved Shootings 2020 The Washington Post is tracking this national figure best, with 999 in 2019 976 in 2020. and Shootings per million people 0 57 lt}t luast}ingfon post There are 290 shootings with unvenfied locations that are not shown on the map. 1/iant Sample Market Capacity Reductions 2015 ($ Millions): 25 2020 ($ Millions): 5 2015 ($ Millions): 10 2020 ($ Millions): 5 2015 ($ Millions): 10 2020 ($ Millions): 5 2015 ($ Millions): 10 2020 ($ Millions): 2 2015 ($ Millions): 5 2020 ($ Millions): 5 2015 ($ Millions): 10 2020 ($ Millions): 5 2015 ($ Millions): 10 2020 ($ Millions): 10 2015 ($ Millions): 10 2020 ($ Millions): 2 2015 ($ Millions): 5 2020 ($ Millions): 5 2015 ($ Millions): 5 2020 ($ Millions): 3 2015 ($ Millions): 10 2020 ($ Millions): 5 2015 ($ Millions): 10 2020 ($ Millions): 5 2015 ($ Millions): 10 2020 ($ Millions): 5 2015 ($ Millions): 20 2020 ($ Millions): 10 2015 ($ Millions): 10 2020 ($ Millions): 5 2015 ($ Millions): 10 2020 ($ Millions): 5 2015 ($ Millions) Total 170 2020 ($ Millions) Total 83 ® I Berkley BRIT r GENESIS" •• , MARKR Munich RE W!AmTrust CHUBB" ~ GIU:.AJ.A.UEJUO\N INSURol.NCEliROUP :.i.: I OLD REPUBLIC INSURANCE CROUP ARGONAUT CivicRisk Mutual :iJM~ IRONSHORE. A J.iberty Mutual Company iEJ-t.t-ill 1/iant Cyber Conditions Capacity Coverage Coverage generally remains intact for asset managers with mature information security programs and strong operational resilience. However, leading Primary carriers are pushing for 50% co-insurance provisions or other coverage restrictions for ransomware losses where companies are less secure. Retentions Excess markets are following Primary increases and in many cases are pushing for higher percentage increases on certain attachment points. Continued pressure on primary retentions and waiting periods for business interruption losses. Carriers have been extremely conservative with their deployment of capacity. As an example, many cyber insurers have cut their available capacity from $10 million down to $5 million. Pricing Abrupt pricing correction due to the uptick in severity of claims. Market leaders have consistently secured primary increases of 40% –50% on their renewals during 2021. 20 + + F b M•• Apr M•y Jun Jul Aug -Aw.-r._• VoV bnf'Wlo~I CN.np 1/iant 21 The Ransomware Epidemic Ransomware surged in recent years, and there is no foreseeable slowdown. All industry segments were impacted. Manufacturing and professional services were particularly hard hit, followed closely by healthcare, education, and government entities. 2018 $8 Billion 2019 $11.5 Billion 2020 $20 Billion Estimated global damage from ransomware. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1/iant 22 Recent Ransomware Losses Colonial Pipeline was hit with a devastating cyberattack earlier this month that forced the company to shut down approximately 5,500 miles of pipeline in the United States, crippling gas delivery systems in Southeastern states. The FBI blamed the attack on DarkSide, a cybercriminal gang believed to be based in Eastern Europe, and Colonial reportedly paid a $5 million ransom to the group. Royal Dutch Shell became the next victim of the Clop ransomware gang. The gang exfiltrated sensitive data from a Accellion file transfer service used by the oil giant and later leaked the stolen data online to prompt them to pay a ransom. Some of the leaked data included employee visa and passport information. JBS SA,a leading food company and the largest meat producer globally, had to shut down production at multiple sites worldwide following a cyberattack. The incident impacted multiple JBS production facilities worldwide over the weekend, including those from the United States, Australia, and Canada. The FBI attributed the attack to REvil, a Russian-speaking gang that has made some of the largest ransomware demands on record in recent months. US based insurance giant CNA were victim of a ransomware attack using a new variant called Phoenix CryptoLocker, possibly linked to the Evil Corp hacking group. Sources familiar with the attack have told BleepingComputer that over 15,000 devices on their network were encrypted and remote employees logged into the VPN were also affected. It’s been reported that CNA paid the $40 million demand but the loss is likely to be north of $100 million after business interruption and data restoration costs are taken into account. Proprietary & Confidential © 2021 Alliant Insurance Services, Inc. All rights reserved. 1/iant 23 Liability Renewal Outlook Excess liability continues to be a challenge Specific Problem areas: •Aggregate limits –Many carriers are looking to cap their exposure on pool programs •Attachment point/Retentions are being closely examined •Particular emphasis on Law Enforcement and Sexual Abuse/Misconduct coverages Pricing expectations based on Q2 results for 2021 = +10% to +20% – based on losses Engage incumbent carriers early to gain commitment on renewal 1/iant 24 Property Renewal Outlook Increased scrutiny of data (SOV, COPE, ITV with Increased Construction Cost) Increased retentions and caps on certain types of exposure •Windstorm & Hail •Strikes, Riots and Civil Commotion Rate increases expected but tempered from 2021 – +5% to +15% dependent on loss experience Underwriter submission activity remains high – imperative to engage early and access global market II 1/iant •25% to 35% increases, at a minimum, for “good” risks and most starting much higher •Lower overall capacity deployment •Increased per-claim, self-insured retentions across the board •Increased waiting periods (i.e. time element deductible) before electronic business interruption (EBI) cover kicks in •Potential coinsurance percentages added ransomware •Further limitation on ransomware limit 25 Cyber Renewal Outlook Leading insurers have indicated that renewals in 2022 will see: Requirement to evidence security posture: •MFA •Data Backups •Employee Education & Training Programs 1/iant Thank you! Questions? Please contact us if you would like a copy of this presentation. 2/1/2022 1 Risk Management & Insurance Update Presented by: John Preston, Consultant ‐Risk Management/ Financial Services Administration Committee February 9, 2022 • Keep OC San Board up-to-date on status of and developments affecting the Property/Casualty insurance program • Provide a forum for enhancing education and understanding of insurance topics Purpose 2 1 2 2/1/2022 2 Claim Data 3 • The report provides a summary of historical claims data on the following insurance programs: - Third party general/auto liability - Workers’ Compensation - First Party Property Insurance Program 4 • A market update presentation is included in the package • Review of the current insurance program coverages and retentions • Insurance Program commentary 3 4 2/1/2022 3 Topics of Interest 5 • Intended as a recurring, brief educational topic review - Regulation topic - Types of insurance program options Future Considerations 6 • Semi-annual report out • Risk Management functional considerations • Program type considerations 5 6 2/1/2022 4 Calendar 7 • Jan - Property & Casualty Insurance Update •Feb - GL Renewal Application due •Mar - Actuarial Study due - Property Renewal Application due •Apr - Coverage Options exploration •May -Pre-Renewal proposals to Admin Committee • June -Renewal recommendations to Board •July -Renewals effective 7/1 Questions ? 8 7 8 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2022-2117 Agenda Date:2/9/2022 Agenda Item No:11. FROM:James D. Herberg, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: COVID-19 SEWAGE SURVEILLANCE PROJECT UPDATE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Each month, staff provides informational presentations on topics of interest to the Board of Directors. The topic of this presentation is Orange County Sanitation District COVID-19 Sewage Surveillance Project Update. Sewage Surveillance, also known as Wastewater-Based Epidemiology, is the study of community- level infection prevalence through measuring the concentration of the pathogen either directly or indirectly (i.e., using biomarkers) in the pooled community sewage samples. Staff will present an update on the status of OC San’s sewage surveillance efforts to date. RELEVANT STANDARDS ·Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities ·Make it easy for people to understand OC San’s roles and value to the community ·Commitment to safety & reducing risk in all operations ATTACHMENT The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package: ·California Water Quality Monitoring Council Resolution No. 2021-0001 ·SWRCB Resolution No. 2021-0049 ·Presentation Orange County Sanitation District Printed on 2/1/2022Page 1 of 1 powered by Legistar™ OC6SAN ORANGE COUNTY SANITATION DISTRICT CALIFORNIA WATER QUALITY MONITORING COUNCIL RESOLUTION NO. 2021-0001 WASTEWATER-BASED SURVEILLANCE OF COVID-19 WHEREAS: 1. The World Health Organization declared COVID-19 a world health emergency in January 2020, followed shortly thereafter by the United States declaring a public health emergency. 2. Public health officials need accurate and timely information on the spread, movement, and control of the COVID-19 virus. 3. California’s research and wastewater utilities quickly demonstrated international leadership in advancing a new approach to prevalence assessment: Wastewater-based epidemiology (WBE) to quantify trends in COVID-19. WBE complements clinical testing and can detect the virus shed by both symptomatic and asymptomatic individuals. WBE also yields information several days and almost two weeks sooner than it takes to collate individual testing and hospitalization records, respectively. 4. California’s utilities undertook these efforts at their own expense, partnering with research institutions such as Stanford University, the University of California (UC) at Berkeley, UC Davis, UC San Diego, University of Arizona, Loma Linda University, University of Southern California, the Water Research Foundation, and the Southern California Coastal Water Research Project Authority to implement those efforts. Several utilities initiated these efforts as early as March 2020, with continual participation for the last 18 months. Those early efforts established sampling and analysis protocols subsequently adopted by others and demonstrated to the world that WBE is a valuable tool to inform COVID-19 public health response. 5. The US Department of Health and Human Services subsequently partnered with utilities in two phases of pilot studies to study the logistics of implementing WBE nationally. Eleven California utilities participated in Phase 1 and 25 utilities participated in Phase 2. 6. The California Department of Public Health and the State Water Resources Control Board entered into a formal partnership with the Centers for Disease Control and Prevention in December 2020 in a comprehensive program to further develop the WBE approach. Five California utilities participated in that program, again at their own expense, voluntarily collecting wastewater samples three times a week, analyzing samples according to protocol, submitting data to the Center for Disease Control’s National Wastewater Surveillance System (NWSS), and participating in monthly California NWSS Workgroup coordination meetings for the state’s pilot wastewater surveillance program. Originally a six-month project, these five utilities continue to participate in the program and make their data available to the public. 7. The California Water Quality Monitoring Council (Council) was formed by CA Senate Bill 1070 (Kehoe, 2006) and is mandated under California Water Code Section 13181 to enhance the effectiveness of California’s water quality monitoring systems, with Council WATER QUALITY MONITORING COUNCIL 2 members appointed by the Secretaries of CalEPA and Department of Natural Resources. The Council worked with utilities to help enhance the sampling and analysis protocols for WBE and was impressed by the commitment of California’s wastewater utility community to help inform management of this public health crisis. NOW THEREFORE BE IT RESOLVED THAT: The California Water Quality Monitoring Council (Council) formally recognizes and extends its profound appreciation for the efforts of the utilities below to develop and implement wastewater monitoring that informs responses to the COVID-19 pandemic and protects the health of Californians. Utilities that were early trendsetters in implementing wastewater-based epidemiology prior to the formal development of State and Federal programs and who have maintained sampling for more than a year: ·East Bay Municipal Utilities District ·Orange County Sanitation District ·Los Angeles County Sanitation Districts ·Los Angeles City Sanitation and Environment ·City of San Diego Public Utilities ·San Francisco Public Utilities Commission ·City of Gilroy ·City of Davis ·Silicon Valley Clean Water ·City of Palo Alto Regional Water Quality Control Plant ·San Jose-Santa Clara Regional Wastewater Facility ·Sacramento Regional County Sanitation District ·City of Sunnyvale ·City of San Bernardino Water Reclamation Facility ·Sanitary District No.5 of Marin County ·Central Marin Sanitation Agency ·Las Gallinas Valley Sanitary District ·Sausalito-Marin City Sanitary District ·Sewerage Agency of Southern Marin ·Novato Sanitary District ·Central Contra Costa Sanitary District ·Delta Diablo Sanitary District ·West County Water District ·City of Yountville ·City of American Canyon ·Union Sanitary District ·City of Vacaville ·Lake County Sanitation District ·South Orange County Wastewater Authority ·Oro Loma Sanitary District ·Las Vírgenes Municipal Water District 3 ·Mariposa Public Utility District Utilities that participated in the Center for Disease Control’s National Wastewater Surveillance System program in cooperation with the State Water Quality Control Boards: ·Los Angeles County Sanitation Districts ·Los Angeles Sanitation and Environment ·City of San Diego Public Utilities ·Orange County Sanitation District ·San Francisco Public Utilities Commission Utilities that participated in the US Health and Human Services national monitoring pilot program: ·East Bay Municipal Utilities District ·Orange County Sanitation District ·Los Angeles County Sanitation Districts ·Los Angeles City Sanitation and Environment ·City of San Diego Public Utilities ·San Francisco Public Utilities Commission ·Sacramento Regional Wastewater Treatment Plant ·Central Contra Costa Sanitary District ·Encina Water Pollution Control Facility ·Oxnard Wastewater Treatment Plant ·Silicon Valley Clean Water ·City of San Mateo Wastewater Treatment Plant ·Laguna Niguel Regional Treatment Plant ·City of San Luis Obispo Water Resource Recovery Facility ·Delta Diablo ·Las Virgenes Municipal Water District ·Carmel Area Wastewater District ·City of Eureka ·City of Fresno ·Valley Sanitary District ·City of Lincoln Wastewater Plant ·City of Lompoc WWTP ·City of Oxnard ·City of Paso Robles ·City of Redlands ·San Elijo JPA ·City of Santa Barbara ·City of Santa Cruz ·City of Santa Rosa ·City of Watsonville WWTF ·City of San Bernardino Municipal Water Department ·Sewer Authority Mid-Coastside 4 CERTIFICATION: The undersigned Co-Chairs of the Council do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the California Water Quality Monitoring Council held on November 10, 2021. AYE: Co-Chair Karen MogusCo-Chair (alternate) Chad DibbleCouncil Member Grant SharpCouncil Member (alternate) Mark Cady Council Member Helen FitanidesCouncil Member Ray HeimstraCouncil Member Steve WeisbergNAY: NoneABSENT: Drinking Water Council MemberRegulated Community – POTWs Council MemberABSTAIN: Council Member Peter Vroom ________________________________Karen Mogus Co-Chair representing CalEPA __________________________________Mark Gold Co-Chair representing CNRA STATE WATER RESOURCES CONTROL BOARD RESOLUTION NO. 2021-0049 RECOGNIZING WASTEWATER TREATMENT UTILITIES’ VOLUNTARY CONTRIBUTIONS TO MONITORING FOR COVID-19 IN WASTEWATER WHEREAS: 1. The World Health Organization declared COVID-19 a world health emergency in January 2020, followed shortly thereafter by the United States declaring a public health emergency. 2. Public health officials need accurate and timely information on the spread, movement, and control of the COVID-19 virus. 3. California’s research institutions and wastewater utilities quickly demonstrated international leadership in advancing a new approach to prevalence assessment: Wastewater-based epidemiology (WBE) to quantify trends in COVID-19. WBE complements clinical testing and can detect the virus shed by both symptomatic and asymptomatic individuals. WBE also yields information several days sooner than it takes to collate individual testing and hospitalization records, respectively. 4. California’s wastewater utilities undertook these efforts at their own expense, partnering with research institutions such as Stanford University, the University of California (UC) at Berkeley, UC Davis, UC San Diego, University of Arizona, Loma Linda University, University of Southern California, the Water Research Foundation, and the Southern California Coastal Water Research Project Authority to implement those efforts. Several utilities initiated these efforts as early as March 2020, with continual participation for the last 18 months. Those early efforts established sampling and analysis protocols subsequently adopted by others and demonstrated to the world that WBE is a valuable tool to inform COVID-19 public health response. 5. The US Department of Health and Human Services subsequently partnered with utilities in two phases of pilot studies to study the logistics of implementing WBE nationally. Eleven California utilities participated in Phase 1 and 25 utilities participated in Phase 2. 6. The California Department of Public Health and the State Water Resources Control Board entered into a formal partnership with the Centers for Disease Control and Prevention in December 2020 in a comprehensive program to further develop the WBE approach. Five California utilities participated in that program, again at their own expense, voluntarily collecting wastewater samples three times a week, analyzing samples according to protocol, submitting data to the Center for Disease Control’s National Wastewater Surveillance System 2 (NWSS), and participating in monthly California NWSS Workgroup coordination meetings for the state’s pilot wastewater surveillance program. Originally a six-month project, these five utilities continue to participate in the program and make their data available to the public. 7. Utilities that were early trendsetters in implementing wastewater-based epidemiology prior to the formal development of State and Federal programs and who have maintained sampling for more than a year: ·East Bay Municipal Utilities District ·Orange County Sanitation District ·Los Angeles County Sanitation Districts ·Los Angeles City Sanitation and Environment ·City of San Diego Public Utilities ·San Francisco Public Utilities Commission ·City of Gilroy ·City of Davis ·University of California, Davis ·Silicon Valley Clean Water ·City of Palo Alto Regional Water Quality Control Plant ·San Jose-Santa Clara Regional Wastewater Facility ·Sacramento Regional County Sanitation District ·City of Sunnyvale ·City of San Bernardino Water Reclamation Facility ·Sanitary District No.5 of Marin County ·Central Marin Sanitation Agency ·Las Gallinas Valley Sanitary District ·Sausalito-Marin City Sanitary District ·Sewerage Agency of Southern Marin ·Novato Sanitary District ·Central Contra Costa Sanitary District ·Delta Diablo Sanitary District ·West County Water District ·City of Yountville ·City of American Canyon ·Union Sanitary District ·City of Vacaville ·Lake County Sanitation District ·South Orange County Wastewater Authority ·Oro Loma Sanitary District ·Las Virgenes Municipal Water District ·Mariposa Public Utility District 3 8. Utilities that participated in the Center for Disease Control’s National Wastewater Surveillance System program in cooperation with the State Water Quality Control Boards: ·Los Angeles County Sanitation Districts ·Los Angeles Sanitation and Environment ·City of San Diego Public Utilities ·Orange County Sanitation District ·San Francisco Public Utilities Commission 9. Utilities that participated in the US Health and Human Services national monitoring pilot program: ·East Bay Municipal Utilities District ·Orange County Sanitation District ·Los Angeles County Sanitation Districts ·Los Angeles City Sanitation and Environment ·City of San Diego Public Utilities ·San Francisco Public Utilities Commission ·Sacramento Regional Wastewater Treatment Plant ·Central Contra Costa Sanitary District ·Encina Water Pollution Control Facility ·Oxnard Wastewater Treatment Plant ·Silicon Valley Clean Water ·City of San Mateo Wastewater Treatment Plant ·Laguna Niguel Regional Treatment Plant ·City of San Luis Obispo Water Resource Recovery Facility ·Delta Diablo Sanitary District ·Las Virgenes Municipal Water District ·Carmel Area Wastewater District ·City of Eureka ·City of Fresno ·Valley Sanitary District ·City of Lincoln Wastewater Plant ·City of Lompoc WWTP ·City of Oxnard ·City of Paso Robles ·City of Redlands ·San Elijo JPA ·City of Santa Barbara ·City of Santa Cruz ·City of Santa Rosa ·City of Watsonville WWTF ·City of San Bernardino Municipal Water Department ·Sewer Authority Mid-Coastside 4 THEREFORE BE IT RESOLVED THAT: The State Water Resources Control Board formally recognizes and extends its profound appreciation for the voluntary efforts and expenditures the aforementioned utilities have contributed to the development and implementation of wastewater monitoring to inform responses to the COVID-19 pandemic to protect the health of Californians. CERTIFICATION The undersigned Clerk to the Board does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on November 16, 2021. AYE: Chair E. Joaquin EsquivelVice Chair Dorene D’AdamoBoard Member Sean MaguireBoard Member Laurel Firestone Board Member Nichole Morgan NAY: None ABSENT: None ABSTAIN: None Jeanine TownsendClerk to the Board 2/1/2022 1 Update on OC San’s COVID‐19 Sewage Surveillance Efforts Samuel Choi, Lab and Ocean Monitoring Manager, Environmental Services Department Prepared for Administration Committee 2/9/2022 •Introduction to sewage surveillance •OC San, SWRCB/CDPH, and CDC efforts •Next steps •Acknowledgement Presentation 2 1 2 2/1/2022 2 What is sewage surveillance (WBE)? •Measure microbiological markers in wastewater •Community‐level infection •Augment clinical surveillance •Inform on public health interventions How is it used during COVID‐19? •SARS‐CoV‐2 markers shed in feces (symptomatic/asymptomatic) •Early and unbiased indicator of changes in community infection •Variant detection Sewage Surveillance 3 Early Days –A lot of Unknowns 9 days later, in a follow-up article 4 3 4 f coronavirus . re unsure o Sciennsts a h effects at the bcac 0 ROSANNA XIA Y I AM u~n.o A.M h rk chemist a leading atm;~ce:nography, . s 1nstitut10n o surfer' at the Scnpp . dow at every wants to yell out her w,npots along the San biker shes · er m ' as The beach, ,n be these days, n erol\S places to .. In a Los Angeles Time intmi,•w early la t week,~vas quoted a Sa)~ng, .. , wouldn't go in the water if you paid me 1 million right now.• She posited that SARS-CoV-2, the vi111s that cause COVI0-19, could enter the ocean -through raw or poorly treated sewage -and then get kicked back into the air along the surf zone. But new research published ofter the interview has changed her thinking. The research includes an a ·1,·rate<i publkation of a stud.i· in thejourmil Nature, which found that the vims did not appear to remain infectious in fecal matter. "The main exp0sure risk to the water recreation community remains sewage pollution and urban ninoff into the ocean, which can increase after major storms uch 2/1/2022 3 Wait or Innovate? Lessons from prior wastewater surveillance efforts Obtain expert advice Establish current and future use cases Sustainable field and laboratory resources Criteria for collaboration 5 OC San Efforts •Started with 4 partners and narrowed down to lab that met our needs •Current partnership with CDPH and SWRCB to support CDC NWSS 6 5 6 2019 2020 2021 2022 --------------Morn ton n g for viruses in raw wastewater --------------, .. 2/1/2022 4 California and National Efforts •California NWSS •Part of CDC’s NWSS •Began 12/2020 with 5 largest wastewater agencies •Currently includes 22 agencies •Monitor sewage for SARS‐CoV‐2 marker and variants •Data transmitted to CDC NWSS portal 7 OC San Sewage Surveillance 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 0 15 30 45 4/ 1 3 / 2 0 4/ 2 7 / 2 0 5/ 1 1 / 2 0 5/ 2 5 / 2 0 6/ 8 / 2 0 6/ 2 2 / 2 0 7/ 6 / 2 0 7/ 2 0 / 2 0 8/ 3 / 2 0 8/ 1 7 / 2 0 8/ 3 1 / 2 0 9/ 1 4 / 2 0 9/ 2 8 / 2 0 10 / 1 2 / 2 0 10 / 2 6 / 2 0 11 / 9 / 2 0 11 / 2 3 / 2 0 12 / 7 / 2 0 12 / 2 1 / 2 0 1/ 4 / 2 1 1/ 1 8 / 2 1 2/ 1 / 2 1 2/ 1 5 / 2 1 3/ 1 / 2 1 3/ 1 5 / 2 1 3/ 2 9 / 2 1 4/ 1 2 / 2 1 4/ 2 6 / 2 1 5/ 1 0 / 2 1 5/ 2 4 / 2 1 6/ 7 / 2 1 6/ 2 1 / 2 1 7/ 5 / 2 1 7/ 1 9 / 2 1 8/ 2 / 2 1 8/ 1 6 / 2 1 8/ 3 0 / 2 1 9/ 1 3 / 2 1 9/ 2 7 / 2 1 10 / 1 1 / 2 1 10 / 2 5 / 2 1 11 / 8 / 2 1 11 / 2 2 / 2 1 12 / 6 / 2 1 12 / 2 0 / 2 1 1/ 3 / 2 2 1/ 1 7 / 2 2 Or a n g e Co u n t y ‐ Ne w Ca s e s in a Da y Co r o n a v i r u s Co n c e n t r a t i o n (m i l l i o n s of SA R S ‐Co V ‐2 RN A ge n e co p i e s pe r lit e r ) Coronavirus in Sewage at OC San Plant 1 (Data through 1/25/2022) New Cases (7‐day average) ‐ OC San Service Area Coronavirus Concentration (DPR‐2) Coronavirus Concentration (SCCWRP) Coronavirus Concentration (ZYMO) Notes: For recent dates, new case numbers are preliminary. Non‐detect results are not shown on graph.8 7 8 OCoSAN ORANGE COUNTY SAHIT,\TION DISTRICT •SantaDara(PaloAllo) •Son1111Qara(Gilroy) •SantaQara(Siin.lo!ie) rn • Sanla Clara (SUIVl'/"ale) -ContraCosta(CentnilConstraC.osta •SanFrancisco(Soo..dleast) -sanFriifilsco(0ceanside) -SanMateo(SiliconVatley) m-Nameda (EBMUO: Qakla ·-, ----C:i):'olo(Davis) IIIISaoamerlto(Sacramento) -Llk.e(Southeast) -San0ie90(!'.'-~) [fil •Om91!(0CSD) -lo$Angeles(tfyperion/l.A0ty) -San Bernardino (SBM\VD) ... lmperial(Calexi(:o) •LD5Ar>geles(Joint) • r:::bCountyBoundaries --¾.. • • • • • 2/1/2022 5 OC San Sewage Surveillance 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 0 15 30 45 12/1/21 12/15/21 12/29/21 1/12/22 Or a n g e Co u n t y ‐ Ne w Ca s e s in a Da y Co r o n a v i r u s Co n c e n t r a t i o n (m i l l i o n s of SA R S ‐Co V ‐2 RN A ge n e co p i e s pe r lit e r ) Coronavirus in Sewage at OC San Plant 1 (Data through 1/25/2022) New Cases (7‐day average) ‐ OC San Service Area Coronavirus Concentration (DPR‐2) Coronavirus Concentration (SCCWRP) Coronavirus Concentration (ZYMO) Notes: For recent dates, new case numbers are preliminary. Non‐detect results are not shown on graph.9 Looking Ahead • Continue to partner with CDPH and SWRCB to support CDC NWSS • Test sewage 3x/week through December 2022 • Continue surveillance and add variant monitoring OC San CDPH / SWRCB CDC NWSS 10 9 10 • • • • • • • a • • • • •• • • • • • • • • •• • • 2/1/2022 6 This Photoby Unknown Author is licensed under CC BY‐NC Statewide Recognition for OC San 11 •Margil Jimenez –Scientist •Jennifer Cabral – Administration Manager •Management •Partners Acknowledgements 12 11 12 :d.:-- STATE WATER RESOURCES CONTROL BOARD RESOLUTION NO. 2021-0049 RECOGNIZING WASTEWATER TREATMENT UTILITIES' VOLUNTARY CONTRIBUTIONS TO MONITORING FOR COVID-19 IN WASTEWATER WATER QUALITY MONITORING COUNCIL CALIFORNIA WATER QUALITY MONITORING COUNCIL RESOLUTION NO. 2021-0001 WASTEWATER-BASED SURVEILLANCE OF COVID-19 ~ California Department of PublicHealth ~ ~ Water Boards ZYMO RESEARCH Trussell TECHNOLOGIES INC ~ _.> ...................... , .. , ..... ................................. U.S. Oep•rtment of Health and Human S~rvices Centers for Disease Control and Pr~ention The Hl'UUf)'o/Srie11u is ,o Muke Things Simple• I 2/1/2022 7 Questions ? Samuel Choi schoi@ocsan.gov 13 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California Water Agencies LOS Level Of Service RFP Request For Proposal APWA American Public Works Association MGD Million Gallons Per Day RWQCB Regional Water Quality Control Board AQMD Air Quality Management District MOU Memorandum of Understanding SARFPA Santa Ana River Flood Protection Agency ASCE American Society of Civil Engineers NACWA National Association of Clean Water Agencies SARI Santa Ana River Interceptor BOD Biochemical Oxygen Demand NEPA National Environmental Policy Act SARWQCB Santa Ana Regional Water Quality Control Board CARB California Air Resources Board NGOs Non-Governmental Organizations SAWPA Santa Ana Watershed Project Authority CASA California Association of Sanitation Agencies NPDES National Pollutant Discharge Elimination System SCADA Supervisory Control And Data Acquisition CCTV Closed Circuit Television NWRI National Water Research Institute SCAP Southern California Alliance of Publicly Owned Treatment Works CEQA California Environmental Quality Act O & M Operations & Maintenance SCAQMD South Coast Air Quality Management District CIP Capital Improvement Program OCCOG Orange County Council of Governments SOCWA South Orange County Wastewater Authority CRWQCB California Regional Water Quality Control Board OCHCA Orange County Health Care Agency SRF Clean Water State Revolving Fund CWA Clean Water Act OCSD Orange County Sanitation District SSMP Sewer System Management Plan CWEA California Water Environment Association OCWD Orange County Water District SSO Sanitary Sewer Overflow EIR Environmental Impact Report OOBS Ocean Outfall Booster Station SWRCB State Water Resources Control Board EMT Executive Management Team OSHA Occupational Safety and Health Administration TDS Total Dissolved Solids EPA US Environmental Protection Agency PCSA Professional Consultant/Construction Services Agreement TMDL Total Maximum Daily Load FOG Fats, Oils, and Grease PDSA Professional Design Services Agreement TSS Total Suspended Solids gpd gallons per day PFAS Per- and Polyfluoroalkyl Substances WDR Waste Discharge Requirements GWRS Groundwater Replenishment System PFOA Perfluorooctanoic Acid WEF Water Environment Federation ICS Incident Command System PFOS Perfluorooctanesulfonic Acid WERF Water Environment & Reuse Foundation IERP Integrated Emergency Response Plan POTW Publicly Owned Treatment Works WIFIA Water Infrastructure Finance and Innovation Act JPA Joint Powers Authority ppm parts per million WIIN Water Infrastructure Improvements for the Nation Act LAFCO Local Agency Formation Commission PSA Professional Services Agreement WRDA Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS – Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA – A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM – In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming (“greenhouse effect”). GROUNDWATER REPLENISHMENT SYSTEM (GWRS) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and OCSD provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS) – Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) – A N-nitrosamine suspected cancer-causing agent. It has been found in the GWRS process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP) – An alliance of the NACWA and WEF, with advisory support from the EPA. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) – A large group (over 6,000) of human-made compounds that are resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects. PERFLUOROOCTANOIC ACID (PFOA) – An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon). PERFLUOROOCTANESULFONIC ACID (PFOS) – A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents. PLUME – A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS (POTW) – A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE – A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. SANITARY SEWER – Separate sewer systems specifically for the carrying of domestic and industrial wastewater. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) – Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT – Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE – Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS (TSS) – The amount of solids floating and in suspension in wastewater. ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS TRICKLING FILTER – A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. URBAN RUNOFF – Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER – Any water that enters the sanitary sewer. WATERSHED – A land area from which water drains to a particular water body. OCSD’s service area is in the Santa Ana River Watershed.