HomeMy WebLinkAbout05-13-2015 Administration Committee Agenda Orange County Sanitation District Wednesday, May 13, 2015
Regular Meeting of the a 5:30 P.M.
Administration Committee - Administration Building
Board Room
10844 Ellis Avenue
Fountain Valley, CA
714 593-7433
AGENDA
PLEDGE OF ALLEGIANCE:
DECLARATION OF QUORUM:
PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form and give it to the
Clerk of the Board. Speakers are requested to limit comments to three minutes.
REPORTS: The Committee Chair and the General Manager may present verbal reports on
miscellaneous matters of general interest to the Committee Members. These reports are for information
only and require no action by the Committee.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
CONSENT CALENDAR:
1. Approve Minutes of the April 8, 2015, Administration Committee Meeting.
2. Ratify change order #1 to P.O. 104652-OB, Specification S-2011-498, issued to
Clean Harbors Environmental Service for hazardous waste services for an
additional $70,000 for a contract amount not to exceed $195,000, for the
remainder of the contract ending June 30, 2017.
05113A5 Administration Committee Agenda Page 1 of 3
3. Recommend to the Board of Directors to:
Receive and file District purchases made under the General Manager's authority
for the period of January 1, 2015 - March 31, 2015.
4. Recommend to the Board of Directors to:
Receive and file Orange County Sanitation District Third Quarter Financial
Report for the period ended March 31, 2015.
NON-CONSENT CALENDAR:
5. Recommend to the Board of Directors to:
Approve not-to-exceed numbers as follows, with the understanding that the
Sanitation District's insurance broker will continue to negotiate with insurers to
seek the lowest possible premiums prior to the expiration date of the current
major insurance policies:
A. Excess liability insurance - $403,662.
B. Excess workers compensation insurance - a rate of $0.3805 per $100 of
payroll (estimated premium at $240,000).
C. Property and Boiler & Machinery combined - $705,186.
D. Earthquake insurance - $88,587.
INFORMATION ITEMS:
6. Capital Improvement Program (CIP) Update for FY2015-16
7. Informational Presentation on the 2015-16 Budget
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
0513115 Administration Committee Agenda Page 2 of 3
ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, June 10,
2015 at 5:30 p.m.
Accommodations for the Disabled: Meefing Rooms are wheelchair accessible. If you require any special disability
related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at
(714) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability
and the type of accommodation requested.
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 Sanitation District's Administration Building located at 10844 Ellis
Avenue, Fountain Valley, California,and on the Sanitation District's website at www.ocsd.com,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.
NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the
Clerk of the Board 14 days before the meeting.
Kelly A. Lore
Clerk of the Board
(714)593-7433
klore(&ocsd.com
For any questions on the agenda,Committee members may contact staff at:
General Manager James Herberg (714)593-7300 iherbergGDomd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rghirellk( ocsd.com
Director of Finance and Lorenzo Tyner (714)593-7550 ItvnerkDocsd.com
Administrative Services
0&i wm Administration Committee Agenda Page 3 of 3
ITEM NO. 1
MINUTES OF THE
ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, April 8, 2015, at 5:30 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was called to order by Committee Chair Withers on April 8, 2015, at 5:30 p.m., in
the Administration Building of the Orange County Sanitation District.
Director Ferryman led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
John Withers, Chair Jim Herberg, General Manager
Keith Curry, Vice-Chair Bob Ghirelli, Assistant General Manager
Steven Choi Lorenzo Tyner, Director of Finance
Tyler Diep &Administrative Services
James Ferryman Ed Torres, Director of Operations and
Greg Mills Maintenance
Glenn Parker Kelly Lore, Acting Clerk of the Board
Erik Peterson (Alternate) Mike White
Teresa Smith Marc Dubois
Sal Tinajero Norbert Gaia
John Nielsen, Board Vice-Chair Al Garcia
Rebecca Long
COMMITTEE MEMBERS ABSENT: Mike Puccio
Peter Kim
Tom Beamish, Board Chair
OTHERS PRESENT:
Brad Hogin, General Counsel
PUBLIC COMMENTS:
None.
REPORT OF COMMITTEE CHAIR:
Committee Chair Withers did not provide a report.
REPORT OF GENERAL MANAGER:
General Manager, Jim Herberg, reported that he and Mike Marcus, General Manager of
Orange County Water District (OCWD) were interviewed for Newsweek regarding an
04/oa/2015 Administration Committee Minutes Page 1 of 4
article they will be running on the drought and in particular how our two agencies are
working together, in partnership, to recycle more water. He updated the Committee on
current flows and the beginning of expansion of the Groundwater Replenishment
System, which will take place in the next few weeks and will maximize the amount of
recycling.
Director of Engineering, Rob Thompson is speaking tonight in Newport Beach at "Speak
Up Newport", updating the forum on the progress of the construction on Coast Highway.
Mr. Herberg stated that we appear to be on schedule to have construction crews out of
the area by May 22n1, in preparation for the summer crowds.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
Director of Finance and Administrative Services, Lorenzo Tyner did not provide a report.
CONSENT CALENDAR:
1. MOVED, SECONDED and DULY CARRIED TO: Approve Minutes of the
March 11, 2015, Administration Committee Meeting.
AYES: Choi, Curry, Diep, Ferryman, Kim, Mills, Nielsen, Parker,
Peterson (Alternate) Smith, and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Beamish, Kim and Tinajero
Director Tinajero arrived at 5:39 p.m.
INFORMATION ITEMS:
2. Procurement Process
Contracts and Purchasing Manager, Marc Dubois provided a PowerPoint
Presentation regarding: OCSD Contracts and Purchasing; Ethics in Public
Procurement; Professional Design Services; Public Works Construction; goods
and services; tools used to procure; Notice inviting bids; sole sources; RFI's;
Request for Proposal Process and approval thresholds.
Questions were answered by Mr. Dubois regarding, staff time spent ranking;
types of sole sources; best values; advantage (if any) of past contractors who
have worked for the district; conflicts with state v. district policies; retentions; low
bidders credibility; verification of licensed contractors and prevailing wage.
Director Diep departed at 6:00 p.m.
04/oa/2015 Administration Committee Minutes Page 2 of 4
3. OCSD Budget Update FY 2015-16
Controller, Mike White provided a PowerPoint Presentation regarding the
proposed update to Operational Line Item Budget FY 2015-16 including:
proposed staffing levels, decreased benefit costs; operating materials and
supplies expenses; other major category cost increases and decreases.
Director of Finance and Adminstrative Services, Lorenzo Tyner stated that this is
the second year of a 2-year adopted budget and any changes are being brought
to the attention of the Board. Questions were answered by Mr. White and Mr.
Tyner regarding potable water and disinfection costs.
4. Capital Improvement Program (CIP) Update
Engineering Manager Mike Puccio provided an informative PowerPoint
presentation regarding the Capital Improvement Program Update which included:
50 active projects and costs; completion & design of past major projects; the
design of eight new major projects; cumulative change order rate; program non-
construction costs; engineering cash flow performance and FY 2014-15 Capital
Improvement Program accomplishments.
Questions were answered by Mr. Puccio and Mr. Herberg regarding: Local sewer
lines v. district sewer lines; age of sewer system; 175 miles of sewers in the city
of Tustin which will be transferred to the EOCWD; Capital Improvement Program
100 year cash flow plan, 10-year detailed program, 20-year cash flow that effects
rates; annual validation process; 7-year cycle to televise condition of sewer;
detection of leaks or cracks; sludge development; sewer system management
plan (SSMP); possible methane gas generated and breathing of sewers through
manholes.
5. Status Update of 2015-16 Insurance Renewals
There was no presenation on this item, and no questions asked of the report.
Mr. Tyner stated that there would be an additional information regarding
Earthquake Insurance presented at next month's meeting.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
None.
04/oa/2015 Administration Committee Minutes Page 3 of 4
ADJOURNMENT:
Committee Chair Withers declared the meeting adjourned at 6:35 p.m., to the next
regularly scheduled meeting of May 12, 2015 at 5:30 p.m.
Submitted by:
Kelly A. Lore
Clerk of the Board
04/oa/2015 Administration Committee Minutes Page 4 of 4
ADMINISTRATION COMMITTEE Neebng Dare To ad.of Dir.
05/13/15 --
AGENDA REPORT Item Number Item Number
2
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Administrative Services
SUBJECT: HAZARDOUS WASTE DISPOSAL PROGRAM
GENERAL MANAGER'S RECOMMENDATION
Ratify change order #1 to P.O. 104652-013, Specification S-2011-498, issued to Clean
Harbors Environmental Service for hazardous waste services for an additional $70,000
for a contract amount not to exceed $195,000, for the remainder of the contract ending
June 30, 2017.
SUMMARY
The 2014/2015 Clean Harbor's purchase order is for $125,000, which is approximately
$10,500 per month. It was budgeted based upon historical cost. Unforeseen disposal
cost primary associated with cleaning up an engineering study has exhausted the
purchase order. Therefore, the Risk Management Division is requesting an additional
$70,000 be added to the purchase order to cover remainder of the fiscal year and
several outstanding invoices.
PRIOR COMMITTEE/BOARD ACTIONS
None
ADDITIONAL INFORMATION
OCSD is required to properly dispose of all hazardous waste generated. The
requirements are based upon environmental regulations, specifically the Resource
Conservation and Recovery Act (RCRA). Clean Harbors Environmental Services was
awarded the contract in 2012 for a period of four (4) one year renewals. The purchase
order is based upon fiscal year with the vendor. The vendor's primary service is the
transportation, treatment, and either recycling or disposal of hazardous waste generated
by OCSD. OCSD uses the vendor to provide the following additional services:
• hazardous waste profiling — sampling a waste and conducting lab analysis to
determine how the waste is supposed to be disposed of properly,
• lab packs — sampling and properly packing small quantities of chemicals to
ensure they are disposed of properly,
• spill cleanup — provide the trained personnel, material, and equipment to clean
up spills caused by OCSD activities that are beyond the capabilities of OCSD
staff to handle, and
Page 1 of 2
• hazardous waste storage yard inspections — examining all the different storage
areas at Plant 1 and Plant 2 to ensure they are compliant with regulations.
Based on the ongoing need for these services and anticipated escalating costs, the
recommendation is to increase the contract amount from $125,000 to $195,000.
The contract with Clean Harbor Environmental Services expires June 30, 2016. This
item would be revisited by the Board of Directors at that time.
Experiences this year that caused the authorized contract amount to be exceeded
include:
• Polymer Tank Cleaning,
• Polymer Spill Cleanup,
• Polymer Tank Cleaning,
• Asbestos Insulation Removal,
• Polymer Tank Cleaning,
• Oil Pump out & Disposal
• Radioactive equipment disposal
CEQA
N/A
BUDGET/PURCHASING ORDINANCE COMPLIANCE
N/A
Page 2 of 2
ADMINISTRATION COMMITTEE Meeting Dale To Bd.of sir.
os/13115 05/zT/is
AGENDA REPORT ItemNumbar Item Number
3
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: GENERAL MANAGER APPROVED PURCHASES
GENERAL MANAGER'S RECOMMENDATION
Receive and file District purchases made under the General Manager's authority for the
period of January 1, 2015 - March 31, 2015.
SUMMARY
In accordance with Board purchasing policies, Ordinance OCSD-44, the General Manager
has authority to approve purchases between $50,000 and $100,000. Below is a summary of
General Manager approved purchases exceeding $50,000 for the third quarter of fiscal year
2014-15.
SUMMARY
Vendor Name Amount Department Description/Discussion
General Legal Services for Klean Waters
Downey Brand, LLP $99,000.00 Manager's Office Hearing
Sole Source# 1170
ENS Resources, Inc. $90,000.00 General Fed. Leg. Adv. Services
Manager's Office Sec#CS-2014-633BD
Gallager Benefit $gg,000.00 Human Resources Class &Comp Studies
Services Sec#CS-2014-63OBD
Graybar Electric Operations & Parts &Supplies for the I&E Dept.
Com an Walnut $75,000.00 Maintenance Co-op - US Communities
Onesource Operations & Parts&Supplies for the I&E Dept.
Distributors, Inc. $75,000.00 Maintenance Convenience Blanket
Rutan &Tucker General Emergency Third Party Legal
Attorneys At Law $99,000.00 Manager's Office Services
Sole Source# 1162
Townsend Public General State Leg. Adv. Services
Affairs $60,000.00 Man a er's Office Sec#CS-2014-634BD
Yale/Chase Materials Facilities Support Six (6) Cargo Carts, Taylor Dunn
Handling
andlin $67,902.30 Services Approved CORF FY 14/15
PRIOR COMMITTEE/BOARD ACTIONS
N/A
Page 1 of 2
ADDITIONAL INFORMATION
N/A
CEQA
N/A
ATTACHMENT
N/A
Page 2 of 2
ADMINISTRATION COMMITTEE "I'm,Date T1.1 IM.
os/ts/ts s/n/ts
AGENDA REPORT Item Number Item Number
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: CONSOLIDATED FINANCIAL REPORT FOR THE THIRD QUARTER
ENDED MARCH 31, 2015
GENERAL MANAGER'S RECOMMENDATION
Receive and file Orange County Sanitation District Third Quarter Financial Report for
the period ended March 31, 2015.
SUMMARY
Included in this consolidated report are the following quarterly financial reports for the
period ended March 31, 2015:
Third Quarter Budget Review
The Budget Review Summary provides the Directors, staff, and the general
public with a comprehensive overview of the financial results of the Sanitation
District through the third quarter ended March 31, 2015.
• Quarterly Treasurer's Report
This section reports on financial portfolio performance with respect to the
Sanitation District'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 U.S. and
global economic outlook from the Sanitation District's investment manager,
Chandler Asset Management.
• Certificates of Participation Quarterly Report
The report includes a summary of each outstanding debt issuance and a
comparative chart illustrating the COP rate history.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
Page 1 of 2
ADDITIONAL INFORMATION
N/A
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the
complete agenda package:
• Consolidated Financial Reports for the Third Quarter Ended March 31, 2015.
NOTE: The Executive Summary from the Comprehensive Quarterly Financial Report for the third
quarter ended March 31, 2015 is included in hard copy;the entire report is available on-line at the OCSD
website(www.ocsd.com) with the complete agenda package.
Page 2 of 2
Executive Summary
Consolidated Financial Reports
For the Third Quarter Ended
March 31, 2015
Included in this consolidated report are the following quarterly financial reports for the
period ended March 31, 2015:
• Third Quarter Budget Review:
The Budget Review Summary provides the Directors, staff, and the general public
with a comprehensive overview of the financial results of the Sanitation District
through the third quarter ended March 31, 2015.
Contained within this Budget Review is the budget-to-actual status of the
Collections, Treatment & Disposal Operations, the Capital Improvement Program,
the Self-Insurance Program, and Debt Service Outlays. Also included is a Capital
Assets Schedule as of March 31, 2015.
Various detail information can be found in this report. In summary:
a) Most major expense categories are anticipated to be at or below budget.
b) Total revenues are at 152.4 percent mainly due to the receipts of $388.8
million from the issuance of Wastewater Refunding Revenue Obligations,
Series 2014A and 2015A, and Revenue Refunding Certificate Anticipation
Notes, Series 2014B, during the first three quarters of the fiscal year. The
2014A and 2015A Obligations were used to refund a portion of Certificate of
Participation Series 2007E and the 2014E Notes were used to refund the
Revenue Refunding Certificate Anticipation Notes, Series 2013A. Excluding
debt financing proceeds, total revenues are at 60.5 percent of the budget.
Except for Service Fees, Permit Fees, Capital Assessments, Property Taxes,
and Interest Earnings, all other major revenue sources are currently tracking
close to or exceeding revenue estimates. Overall, total revenues are
projected to exceed budget at year-end. More detailed information on District
revenues is provided within Section 1 — Pages 3 through 5.
c) Collection, Treatment and Disposal Costs:
As indicated within the Budget Review Summary of this report, the net
operating requirements through the third quarter of $105.1 million is currently
tracking at 68.9 percent of the $152.5 million budget. In addition, net
operating expenses have increased $358,000 or 0.3 percent in comparison
with the same period last year. Overall, staff expects the total operating costs
to remain at or below budget throughout the remainder of the year. More
detailed information on District operating expenses is provided within Section
1- Pages 1 through 3.
Page 1
2014-15 Third Quarter Review
The total cost per million gallons is approximately $2,024.8 based on flows of
189.4 million gallons per day. This is $64.2 per million gallons, or 3.1 percent
lower than the budgeted cost per million gallon per day. A further description
of these costs and benchmarking with other agencies is contained within
Section 1 — Pages 6 through 8.
d) The total projected capital outlay cash Flow of the Capital Improvement
Program (CIP) for FY 2014-15 has been revised to $153.8 million, or 90.9
percent of the board approved cash outlay of$169.2 million. The actual cash
outlay spending through the third quarter is $106.7 million, or 63.1 percent of
the total budgeted outlay. More detailed information on the CIP budget
review can be found in Section 3.
• Quarterly Treasurer's Report;
This section reports on financial portfolio performance with respect to the
Sanitation District'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 the Sanitation District's money manager, Chandler Asset
Management (Chandler).
Chandler reported that the Long-Term Portfolio returned 82 basis points over the
quarter, underperforming the Bank of America Merrill Lynch 1-5 year AAA U.S.
Corporate and Government Index by 14 basis points, while the Liquid Operating
Monies Portfolio returned 7 basis over the quarter, outperforming its benchmark,
the three-month Treasury Bill index return of 0 basis points.
Chandler further notes that the Job growth was weaker than expected in March
with nonfarm payrolls up 126,000, well below the consensus forecast of 245,000.
The unemployment rate was unchanged at 5.5%, though the labor participation
rate declined to 62.7% from 62.8%. Wages rose 0.3% (higher than expected).
Unfavorable weather and the strong dollar were likely factors for weak job growth
in March. Overall, there is still excess slack in the labor market. Growth in the
manufacturing sector has also softened. Chandler believes the strong U.S. dollar
and sluggish economic growth abroad has dampened U.S. manufacturing trends.
U.S. consumer confidence remains strong, but consumer spending trends have
underwhelmed. Housing data remains volatile but the overall trajectory seems
positive. There have been pockets of weakness in recent economic data, but
some of the factors for this weakness may be transitory (such as unfavorable
weather and the West Coast port delays).
The Federal Open Market Committee (FOMC) left policy rates unchanged at its
March 17-18 meeting, without any dissenting votes. The Committee noted
economic activity moderated and the inflation rate declined further. The word
"patient" (with regard to the timing of a potential future rate hike) was removed
from the policy statement but the Committee indicated a rate hike at the next
Page 2
Executive Summary
FOMC meeting in April is unlikely. The Fed left the door open for a possible rate
hike in June, but we believe the first rate hike is likely to occur later in the second
half of this year. Notably, the Fed expects to see further improvement in the labor
market before it starts to raise rates, which implies the Fed remains dissatisfied
with current employment conditions. The Committee also needs to be confident
inflation will move back to its 2% target, before they raise rates. With inflation low,
we believe the Fed faces no urgency to begin raising rates. Even though the
Committee removed the word "patient" from its policy statement, Chandler
believes the Fed's overall message was somewhat dovish, which makes a June
rate hike unlikely in their view. Chandler believes ongoing uncertainty about the
timing of the Federal Reserve's first interest rate hike will likely continue to fuel
market volatility.
The yield curve flattened in March. Domestic economic data has recently
softened, and the timing of the first fed funds rate hike remains unclear.
Meanwhile, the European Central Bank continues to execute its bond-buying
program and other global central banks are pursuing highly accommodative
monetary policies.
Economic Outlook
Chandler continues to expect GDP to grow between 2.5-3.0% in 2015, compared
to growth of 2.4% in 2014. Inflation remains below Federal Reserve targets, and
with the price of oil poised to stay in a relatively tight range through the summer
months, it is unlikely inflation metrics will accelerate in the near term. Although
the Federal Reserve modestly lowered their economic projections in March, the
Fed's outlook still appears more constructive compared to the consensus market
view. Chandler expects global central banks to continue to be a source of market
volatility as unconventional policies are adopted abroad and the Federal Reserve
attempts to normalize policy in the United States.
The dollar index improved by close to 9% during the first quarter, and dollar
strength should continue, although the rate of change is unlikely to be as
significant in the coming quarter. The strong dollar is starting to negatively impact
corporate earnings, which Chandler believes will be a contributing factor in
causing the Federal Reserve to eventually lower their forecast closer to the
market in the coming quarters. Chandler anticipates a range bound market, and
given the overall strength in corporate balance sheets, still believes it makes
sense to stay invested in the corporate market.
• Quarterly Certificates of Participation (COP) Report
The report includes a summary of each outstanding debt issuance and a
comparative chart illustrating the COP rate history.
Page 3
11111'i�ll
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Orange County Sanitation District
Third Quarter
Financial Report
for the period ended March 31, 2015
Orange County, California
Table of Contents
ExecutiveSummary...................................................................................................1
Budget Review
Section 1 — Budget Review Summary...................................................................................1
Section 2—Operating Budget Review
Chart of the Cost per Million Gallons by Department—Budget and Actual..............1
Chart of the Net Expenses by Major Category— Budget and Actual........................1
Divisional Contributions to Cost Per Million Gallons ................................................2
Comparison of Expenses by Department.................................................................3
Summary of Collection, Treatment, and Disposal Expenses by Major Category.....4
Summary of District-Wide Revenues .......................................................................5
Summary of Collection, Treatment and Disposal Revenues....................................5
Summary of Collection, Treatment, and Disposal Expenses by Line Item...............6
Summary of Collection, Treatment, and Disposal Expenses by Process.................8
Chartof Staffing Trends...........................................................................................9
Section 3—Capital Improvement Program Budget Review
Capital Improvement Program Graphs by Type and Funding Source......................1
Summary of Capital Improvement Construction Requirements - Current Year........2
Summary of Capital Improvement Construction Requirements - Project Life..........6
Section 4—Capital Assets Schedule & Debt Service Budget Review
CapitalAssets 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 Treasurers Repo rt........................................................................................1
QuarterlyCOP Repo rt.................................................................................................1
FY 2014-15 Third Quarter Financial Report
This Page Intentionally Left Blank
Executive Summary
Consolidated Financial Reports
For the Third Quarter Ended
March 31, 2015
Included in this consolidated report are the following quarterly financial reports for the
period ended March 31, 2015:
• Third Quarter Budget Review:
The Budget Review Summary provides the Directors, staff, and the general public
with a comprehensive overview of the financial results of the Sanitation District
through the third quarter ended March 31, 2015.
Contained within this Budget Review is the budget-to-actual status of the
Collections, Treatment & Disposal Operations, the Capital Improvement Program,
the Self-Insurance Program, and Debt Service Outlays. Also included is a Capital
Assets Schedule as of March 31, 2015.
Various detail information can be found in this report. In summary:
a) Most major expense categories are anticipated to be at or below budget.
b) Total revenues are at 152.4 percent mainly due to the receipts of $388.8
million from the issuance of Wastewater Refunding Revenue Obligations,
Series 2014A and 2015A, and Revenue Refunding Certificate Anticipation
Notes, Series 2014B, during the first three quarters of the fiscal year. The
2014A and 2015A Obligations were used to refund a portion of Certificate of
Participation Series 2007B and the 2014B Notes were used to refund the
Revenue Refunding Certificate Anticipation Notes, Series 2013A. Excluding
debt financing proceeds, total revenues are at 60.5 percent of the budget.
Except for Service Fees, Permit Fees, Capital Assessments, Property Taxes,
and Interest Earnings, all other major revenue sources are currently tracking
close to or exceeding revenue estimates. Overall, total revenues are
projected to exceed budget at year-end. More detailed information on District
revenues is provided within Section 1 — Pages 3 through 5.
c) Collection, Treatment and Disposal Costs:
As indicated within the Budget Review Summary of this report, the net
operating requirements through the third quarter of$105.1 million is currently
tracking at 68.9 percent of the $152.5 million budget. In addition, net
operating expenses have increased $358,000 or 0.3 percent in comparison
with the same period last year. Overall, staff expects the total operating costs
to remain at or below budget throughout the remainder of the year. More
detailed information on District operating expenses is provided within Section
1- Pages 1 through 3.
Page 1
2014-15 Third Quarter Review
The total cost per million gallons is approximately $2,024.8 based on flows of
189.4 million gallons per day. This is $64.2 per million gallons, or 3.1 percent
lower than the budgeted cost per million gallon per day. A further description
of these costs and benchmarking with other agencies is contained within
Section 1 — Pages 6 through 8.
d) The total projected capital outlay cash flow of the Capital Improvement
Program (CIP) for FY 2014-15 has been revised to $153.8 million, or 90.9
percent of the board approved cash outlay of$169.2 million. The actual cash
outlay spending through the third quarter is $106.7 million, or 63.1 percent of
the total budgeted outlay. More detailed information on the CIP budget
review can be found in Section 3.
• Quarterly Treasurer's Report;
This section reports on financial portfolio performance with respect to the
Sanitation District'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 the Sanitation District's money manager, Chandler Asset
Management (Chandler).
Chandler reported that the Long-Term Portfolio returned 82 basis points over the
quarter, underperforming the Bank of America Merrill Lynch 1-5 year AAA U.S.
Corporate and Government Index by 14 basis points, while the Liquid Operating
Monies Portfolio returned 7 basis over the quarter, outperforming its benchmark,
the three-month Treasury Bill index return of 0 basis points.
Chandler further notes that the Job growth was weaker than expected in March
with nonfarm payrolls up 126,000, well below the consensus forecast of 245,000.
The unemployment rate was unchanged at 5.5%, though the labor participation
rate declined to 62.7% from 62.8%. Wages rose 0.3% (higher than expected).
Unfavorable weather and the strong dollar were likely factors for weak job growth
in March. Overall, there is still excess slack in the labor market. Growth in the
manufacturing sector has also softened. Chandler believes the strong U.S. dollar
and sluggish economic growth abroad has dampened U.S. manufacturing trends.
U.S. consumer confidence remains strong, but consumer spending trends have
underwhelmed. Housing data remains volatile but the overall trajectory seems
positive. There have been pockets of weakness in recent economic data, but
some of the factors for this weakness may be transitory (such as unfavorable
weather and the West Coast port delays).
The Federal Open Market Committee (FOMC) left policy rates unchanged at its
March 17-18 meeting, without any dissenting votes. The Committee noted
economic activity moderated and the inflation rate declined further. The word
"patient" (with regard to the timing of a potential future rate hike) was removed
from the policy statement but the Committee indicated a rate hike at the next
Page 2
Executive Summary
FOMC meeting in April is unlikely. The Fed left the door open for a possible rate
hike in June, but we believe the first rate hike is likely to occur later in the second
half of this year. Notably, the Fed expects to see further improvement in the labor
market before it starts to raise rates, which implies the Fed remains dissatisfied
with current employment conditions. The Committee also needs to be confident
inflation will move back to its 2% target, before they raise rates. With inflation low,
we believe the Fed faces no urgency to begin raising rates. Even though the
Committee removed the word "patient" from its policy statement, Chandler
believes the Fed's overall message was somewhat dovish, which makes a June
rate hike unlikely in their view. Chandler believes ongoing uncertainty about the
timing of the Federal Reserve's first interest rate hike will likely continue to fuel
market volatility.
The yield curve flattened in March. Domestic economic data has recently
softened, and the timing of the first fed funds rate hike remains unclear.
Meanwhile, the European Central Bank continues to execute its bond-buying
program and other global central banks are pursuing highly accommodative
monetary policies.
Economic Outlook
Chandler continues to expect GDP to grow between 2.5-3.0% in 2015, compared
to growth of 2.4% in 2014. Inflation remains below Federal Reserve targets, and
with the price of oil poised to stay in a relatively tight range through the summer
months, it is unlikely inflation metrics will accelerate in the near term. Although
the Federal Reserve modestly lowered their economic projections in March, the
Fed's outlook still appears more constructive compared to the consensus market
view. Chandler expects global central banks to continue to be a source of market
volatility as unconventional policies are adopted abroad and the Federal Reserve
attempts to normalize policy in the United States.
The dollar index improved by close to 9% during the first quarter, and dollar
strength should continue, although the rate of change is unlikely to be as
significant in the coming quarter. The strong dollar is starting to negatively impact
corporate earnings, which Chandler believes will be a contributing factor in
causing the Federal Reserve to eventually lower their forecast closer to the
market in the coming quarters. Chandler anticipates a range bound market, and
given the overall strength in corporate balance sheets, still believes it makes
sense to stay invested in the corporate market.
• Quarterly Certificates of Participation (COP) Report
The report includes a summary of each outstanding debt issuance and a
comparative chart illustrating the COP rate history.
Page 3
2014-15 Third Quarter Review
This Page Intentionally Left Blank
Page 4
Budget Review Summary
Third Quarter Financial Report
March 31, 2015
Financial Management is pleased to present the FY 2014-15 third quarter financial
report. This report provides a comprehensive overview of the financial condition of the
Sanitation District and reports on the status of all capital projects in progress. A
summary of the sections contained within this report is provided below.
Operating Budget Review., This section reports on collection, treatment and disposal
net operating requirements. At March 31, 2015, 68.9 percent, or $105.1 million of the
FY 2014-15 net operating budget of $152.5 million has been expended. Net operating
expenses increased from the same period last year by $358,000, or 0.3 percent, mainly
due to an increase of $1.3 million in Salaries and Benefits, $274,000 in Administrative
Expenses, $66,000 in Operating Materials and Supplies, $1.4 million in Repairs and
Maintenance, and $528,000 in Utilities. These cost increases have been partially offset
by decreases of $506,000 in Contractual Services, $232,000 in Professional Services,
$254,000 in Other Operating Supplies, and an increase of $2.1 million in indirect costs
allocated out to capital projects. 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 below budget throughout the remainder of the
year.
Significant operating results as of March 31, 2015 include the following:
• Salaries. Wages and Benefits — Personnel costs of $70.6 million are at target at
71.2 percent of budget through the third quarter of FY 2014-15. Although the
budget is based on a 3 percent vacancy factor, staffing is 51 full-time equivalents
(FTE's), or 8.1 percent below the total 626 FTE's approved in the FY 2014-15
budget. Salary and benefit costs are 1.8 percent, or $1.2 million higher than the
$69.4 million incurred in the same period last year, mainly due to the increase of
wages, medical insurance, and workers' compensation costs. Net operating
personnel costs are expected to approximate budget throughout the
remainder of the year.
• Administrative Expenses — Administrative Expenses totaled $1.2 million, or 83.3
percent of the $1.4 million budget through March 31. These costs are $274,000
or 30.8 percent higher at March 31 in comparison with the prior year mainly due to
an increase of $220,000 in purchases of small computer items. It is anticipated
that the administrative costs will approximate budget at year-end.
• Printing and Publication Expenses — Printing and Publication Expenses totaled
$202,000, or 49.4 percent of the $409,000 budget through March 31. These
costs are $16,000 or 7.5 percent lower at March 31 in comparison with the prior
Section 1 - Page 1
FY 2014-15 Third Quarter Report
year. It is anticipated that the printing and publication costs will be below
budget at year-end
• Training and Meetings — Training and meetings of $475,000 are below target at
45.6 percent of the $1.0 million budget. This account is lower than the
proportionate budget due to the timing of training throughout the year. These costs
have decreased over the same period last year by $68,000 or 12.6 percent. Total
training and meeting costs are anticipated to be below budget at year-end.
• Operating Materials and Supplies — Operating materials and supplies of $11.5
million is at target at 72.6 percent of budget through March 31. Operating
Materials and Supplies have slightly increased from the prior year by $66,000 or 0.6
percent, primarily due to increases in Chemical Coagulants of $70,000 and Odor
Control of $235,000, offset by decreases in Safety Equipment/Tools of $212,000.
The increases are mainly brought about by timing of chemical deliveries, usage,
annual testing, and rate increases. Based on current processes, operating
materials and supplies are anticipated to approximate budget at year-end.
• Contractual Services — Overall costs for contractual services are below target at
approximately $15.9 million or 65.5 percent of budget through March 31.
Solids Removal costs, budgeted at $18.3 million, comprise the majority of this
expense category. With a decrease of $121,000, or 0.9 percent lower than the prior
year, solids removal costs totaled $12.9 million, or 70.5 percent of budget at
March 31. In addition, other contractual services decreased by $375,000 due to a
decrease in manhole rehabilitation projects. Overall, Contractual Services is lower
by $506,000 or 3.1 percent, over the same period last year. Total contractual
services costs are anticipated to approximate or be below budget at year-end.
• Professional Services — Professional services costs totaled $1.8 million or 55.3
percent of the $3.2 million budget through March 31. Many professional service
costs, such as Audit and Accounting, Engineering, Software Program Consulting
Services, Labor Negotiation, and Other Services, are proportionately low through
March 31 due to a variety of factors such as services being in the planning or
request for proposal stage, services not being needed until later in the fiscal year,
the need for the service is being re-evaluated, or utilization of internal staffing for
projects. These costs are $232,000 or 11.5 percent lower at March 31 in comparison
with the prior year mainly due to timing of services performed. It is anticipated that
the costs for this category will be below budget at year-end.
• Research & Monitoring — Research and monitoring costs totaled $618,000, or
74.4 percent of the $830,000 budget through March 31. These costs are
$39,000, or 6.7 percent higher at March 31 in comparison with the prior year, mainly
due to an increase of $34,000 in environmental monitoring to install an electronic
navigation/communication suite onboard the District's Nerissa vessel. Total
Research & Monitoring costs are anticipated to approximate budget at year-
end.
Section 1 - Page 2
Budget Review Summary
• Repairs and Maintenance — Repair and maintenance costs totaled $8.1 million,
or 62.4 percent of the $13.1 million budget through March 31. These costs are
$1.4 million, or 20.0 percent higher at March 31 in comparison with the prior year,
mainly due to current period additional anticipated service repairs, such as Plant 1
Headworks repairs and carbon media installation in Plant 2 trickling filters.
Additionally, several prepayments totaling $432,000 made in the prior year for
computer maintenance agreements were recognized as expenses in the current
year. It is anticipated that the costs for this category will approximate budget
at year-end.
• Utilities — Utilities costs totaled $5.5 million, or 73.9 percent of the $7.4 million
budget through March 31. These costs are $528,000 or 10.6 percent higher at
March 31 in comparison with the prior year, primarily due to an increase in electricity
and gas charges totaling $665,000 as a result of increased rates and usage primarily
related to increased activity, offset by a decrease of $220,000 in Green Acres
Project (GAP) water usage due to completion of Project J-109, Cengen Cooling
Water System Replacement. The overall operating philosophy of the Central
Generation facilities is to purchase electricity for power production rather than to
purchase natural gas as a supplement to the digester gas needed to run the Central
Generation facilities. This operating philosophy allows the Central Generation
facilities to meet air emission requirements. It is anticipated that the costs will
approximate budget at year-end.
• Other Operating Supplies — Other operating supplies costs totaled $1.3 million,
or 84.8 percent of the $1.5 million budget through March 31. These costs are
$254,000 or 16.3 percent lower at March 31 in comparison with the prior year,
primarily due to a decrease of $307,000 in general liability in-lieu premium charges
based on the estimated amount required to maintain recommended reserve
balances. This cost decrease has been partially offset by an increase of$101,000 in
equipment rental for an emergency rental of a vector truck while a District's vector
truck was under troubleshooting and repair. It is anticipated that the costs will be
above or approximate budget at year-end.
• Revenues — Service Fees & Property Taxes — Through March 31, revenues from
service fees are at $168.8 million, or 58.4 percent of budget and Property taxes
are $48.4 million, or 62.2 percent of budget. These items comprise the majority of
the Sanitation District's revenues and are mostly collected by the County through the
property tax roll and distributed to the Sanitation District throughout the year based
on a set distribution schedule that begins in November of each year. These
revenues are expected to approximate budget at year-end.
• Revenues — Permittee User Fees — Permittee User Fees are at $9.3 million, or
67.7 percent of the $13.7 million budget. The number of permittees Fluctuates
from year to year as businesses are established or close their operations. The
revenues through the third quarter are $265,000 or 2.8 percent lower in comparison
Section 1 - Page 3
FY 2014-15 Third Quarter Report
with the same period last year due to a decrease in amount of discharge from the
permittees. It is estimated that the permittee user charges will be at or below
budget at year-end.
• Revenues — Inter District Sewer Use - SAWPA — Inter District Sewer revenues-
SAWPA are at $1.8 million, or 70.1 percent of the $2.5 million budget. This
revenue is derived from charges to the Santa Ana Watershed Protection Agency
(SAWPA) for treatment of flows. These revenues are expected to be at or below
budget at year-end.
• Revenues — Intra District Sewer Use — IRWD — Intra District Sewer revenues-
IRWD are at $1.8 million, or 77.8 percent of the $2.3 million budget. This
revenue is derived from charges to the Irvine Ranch Water District (IRWD) for
treatment of flows. The revenues through the third quarter are higher than the same
period last year by $267,000 or 17.6 percent mainly due to an increase in unit costs
of various charges. These revenues are expected to approximate budget at
year-end.
• Revenues - Sludge Disposal- IRWD - Sludge Disposal fees-IRWD are at $5.8
million, or 69.2 percent of the $8.4 million budget. The revenue is derived and
fluctuated from flows discharged from IRWD to Sanitation District for the handling,
treatment and disposal of solids. The revenues through the third quarter are higher
than the same period last year by $2.3 million or 63.9 percent mainly due to a
decrease of $1.4 million in prior year adjustments due to IRWD and an increase of
$856,000 of quarterly billing in the current year. These revenues are expected to
approximate budget at year-end.
• Revenues — Capital Assessments- IRWD — Capital Assessments-IRWD are at
$280,000, or 8.1 percent of the $3.5 million budget. The revenues through the
third quarter are lower than the same period last year by $8.1 million or 96.7 percent
mainly due to the prior period recognition of a $7.5 million reduction in Irvine Ranch
Water District's equity interest in the treatment plant as a result of the decrease in
their sewage flows, and a current period reversal of $1.5 million from the prior year-
end accrual for projects that have been placed in service during the year. Projects
that are placed in service are accrued and depreciated at year-end and reversed in
the beginning of the following year. It is estimated that the capital assessments
will be below budget at year-end.
• Revenues — Capital Facilities, Capacity Charges (CFCC) — CFCC are at $12.3
million, or 108.7 percent of the $11.4 million budget. The revenues through the
third quarter are higher than the same period last year by $3.6 million or 40.7
percent due to an increase in construction activity in the current year. These
revenues are expected to exceed the budget at year-end.
• Revenues — Interest Earnings — Interest Earnings are at $5.4 million or 40.9
percent of the $13.1 million budget. The revenues through the third quarter are
Section 1 - Page 4
Budget Review Summary
lower than the proportionate budget due to the total return of the Sanitation District's
liquid and long-term operating investments being less than what was anticipated.
The revenues through the third quarter are higher than the same period last year by
$2.3 million or 75.7 percent due to an increase in current year investment earnings.
It is estimated that the interest earnings will be below the budget amount at
year-end.
• Revenues — Wastehauler — Wastehauler revenues are at $594,000 or 90.0
percent of the $660,000 budget. This revenue is derived from fees charged to
wastehaulers allowing them to dump waste into the Sanitation District's system.
These revenues are expected to exceed budget at year-end.
• Revenues — CNG Sales — CNG Sales revenues are at $308,000 or 93.0 percent
of the $331,000 budget. The revenues through the third quarter are higher than the
same period last year by $66,000 or 27.3 percent due to the compressed natural gas
(CNG) fueling station located at the front entrance of Plant No. 1 being shut down in
the prior year for 3 months from mid-August to November 2013 while gas lines were
rerouted for the Sludge Dewatering and Odor Control Project (Project No. P1-101).
These revenues are expected to exceed budget at year-end.
• Revenues - Other — Other non-operating revenues are at $1.2 million or 282.0
percent of the $410,000 budget. These revenues consist of charges to Sunset
Beach Sanitary District for treatment of flows and other miscellaneous revenues.
The revenues through the third quarter are higher than the same period last year by
$428,000 or 58.9 percent due to sale of AQMD emission reduction credits for
$690,000, compared to $345,000 in the prior period. These revenues are
expected to exceed budget at year-end.
Section 1 - Page 5
FY 2014-15 Third Quarter Report
Comparison of Third Quarter Cost per
Million Gallon Results with Budget
Last Five Years
I I
2,075
2,000 2081
1,925 e67 zoos
1,850 y9W 1.�6 1926
1,775 1 ea1
1,700
1,625
1,550
1,475
1,400
1,325
.250
1,175
1,100
1,025
950
875
800
725
650
575
10-11 11-12 12-13 13-14 14-15
3rd Annual 3rd Annual 3rd Annual 3rd Annual 3rd Annual
Qlr Budget Qtr Budget Qtr Budget Qtr Budget Qtr Budget
As demonstrated in the preceding graph for each of the last four fiscal years, the cost
per million gallons at the end of the third quarter has been 2.0 percent to 8.4 percent
lower than the annual budget. The FY 2014-15 third quarter, although higher than
previous years, continues with this trend with 3.1 percent lower when compared with
this year's budget. Staff believes that overall operating costs will be below budget at
year-end.
The total cost per million gallons at March 31 is $2,024.8 based on flows of 189.4
million gallons per day. This is $64.2 per million gallons, or 3.1 percent, lower than
the budgeted cost per million gallons of $2,089. There is an inverse relationship
between the amount of flows and the cost per unit of collection, treatment, and disposal.
Consequently, the lower cost per million gallons is due to net expenses being 8.1
percent less than the proportionate budget through March 31, which is partially offset by
flows of 189.4 million gallons per day being 5.3 percent lower than the budgeted flow of
200 million gallons per day.
More detailed information on operating revenues, costs, and related information is
provided within Section 2.
Section 1 - Page 6
Budget Review Summary
Following are data tables showing the last five years of Single Family Residential User
Fees (SFR) and the cost per MG to collect, treat, and dispose of wastewater for OCSD
and for similar agencies. The agencies used in the table were determined to be those
that most closely resembled OCSD in terms of services provided and treatment levels.
The summaries demonstrate that OCSD's SFR and cost per million gallons are each
one of the lowest in their respective group.
Benchmark Study
Five-Year Single Family Rate
Rates as of July
2010 2011 2012 2013 2014
Agency SFR SFR SFR SFR SFR Notes
San Francisco $613.44 $636.00 $667.92 $701.40 $ 744.83
City of San Diego $608.04 $608.04 $572.58 $572.58 $ 572.58
Vallejo Sanitation/Flood Control District $464.52 $483.12 $495.12 $507.48 $ 520.20
Central Contra Costa Sanitary District $311.00 $341.00 $371.00 $405.00 $ 439.00
City of Los Angeles $359.64 $358.66 $391.56 $409.20 $ 435.40 Note 1
Dublin San Ramon Services District $299.46 $345.06 $355.44 $355.44 $ 372.96
East Bay MUD $271.84 $287.98 $305.10 $331.10 $ 358.14
Union Sanitary District $289.84 $304.33 $319.55 $337.76 $ 357.02
Sacramento County $240.00 $264.00 $288.00 $312.00 $ 348.00
City of Hayward $308.40 $317.64 $327.24 $327.24 $ 337.08
Orange County Sanitation District $244.00 $267.00 $294.00 $308.00 $ 316.00
City of Fresno $299.76 $299.76 $309.00 $309.00 $ 309.00
Irvine Ranch Water District $ 199.80 $202.80 $206.40 $220.80 $ 246.00 Note 2
Los Angeles County $ 141.00 $143.00 $149.00 $230.00 $ 245.00
Oro Loma Sanitary District $178.00 $183.00 $189.00 $195.00 $ 200.00
Notes:
(1)-Data is for the typical SFR customer rate and is not the average rate.
(2)-Data represents the maximum SFR rate and is not the average rate.
Section 1 - Page 7
FY 2014-15 Third Quarter Report
Benchmark Study
Five-Year Cost per MG
FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14
Agency Svc. Trt. Cost/MG Cost/MG CostIMG Cost/MG Cost/MG Notes
Vallejo Sanitation/Flood Control District B 3 $4,911.00 $4,536.00 $5,176.00 $5,435.00 $6,153.00
Central Contra Costa Sanitary District B 4 $4,136.89 $3,929.80 $4,203.43 $4,621.94 $5,778.43
San Francisco B 3 $4.339.32 $3,857.80 $4,778.96 $5,006.74 $5,400.28 Note 3
Union Sanitary District B 3 $2,964.94 $3,206.10 $3,267.06 $3,805.40 $3,832.47
City of San Diego B 2 $3,583.70 $3,208.48 $3,242.30 $3,340.35 $3,156.43 Note 5
East Bay MUD T 4 $1.856.65 $2,000.31 $2,320.02 $2,359.40 $2,559.18
Dublin San Ramon Services District B 3 $1,905.99 $1,964.64 $2,009.57 $2,159.49 $2,506.60
Sacramento County T 3 $1,638.91 $1,591.75 $3,312.50 $2,143.16 $2,375.47 Note
City of Los Angeles B 4 $1,880.00 $1,836.00 $1,935.00 $2,062.00 $2,163.00 Note 1
Orange County Sanitation District B 3 $1,588.72 $1,816.62 $1,871.47 $1,906.01 $1,935.05
City of Fresno B 3 $1,207.20 $1,263.50 $1,383.60 $1,411.89 $1,552.39
Irvine Ranch Water District $1,962.02 WA N/A N/A WA Note 4
Los Angeles County $1,117.00 $1,078.00 $1,156.00 $1,008.00 N/A Note 2
Legend for Service PmQed and Treatment Lecel:
B-Agency operates both collection and treatment facilities
T-Agency pri 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 FY2003-04 the Cityapplied Engineers and Architects Associaton(EN)COLA which covered multiple years.
(2)-Does not include source control or overhead costs.
(3)-New dataset represents wastewaterfiows from finalized publicly available audited documents.
(4)-Cost of Wastewater Treatment,including Collectors,Treatment,and General Administrative Costs minus reclaimed water expenses.
(5)-Beginning in Fiscal Year 2008-09,cost per mg includes the Point Loma Wastewater Treaenent Plant and South Bay Water Reclamation Plant.
(6)-Mies of sewers number changed In 2012 to include parallel force main pipes per the 2011 State of the District Repod.
N/A-Not currently available.
Section 1 - Page 8
Budget Review Summary
Capital Outlay Review:
$200,000,000
$150,000,000
$100.000,000
$50,000,000
$0
3/31115 Actual projected 2014-15 2014-15 Capital Outlay
Capital Outlay Capital Outlay Casldl w Budget
$106.748,725 $153.767,400 $169,223,000
As depicted by the preceding chart, Capital Outlays totaled $106.7 million or 63.1
percent of the capital outlay cash flow budget for FY 2014-15 as of March 31,
2015. Costs are proportionately low through the third quarter as some projects are still
in the design phase or have experienced various delays. Examples as of March 31 are
the Sludge Dewatering and Odor Control at Plant 1 which has a FY14-15 cash flow
budget of $61.1 million but actual costs of only $40.6 million and the Title 24 Access
Compliance and Building Rehabilitation Project, which has a budget of $4.8 million but
actual costs of only $1.3 million. Overall, the capital outlay costs of the capital
improvement program are expected to approximate $153.8 million, or 90.9 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 8 Debt Service Budget Review: Section 4 is the Capital
Assets Schedule and Debt Service Section. This section shows the cost value of the
Sanitation District's capital facilities at March 31, 2015, as well as the debt service costs
resulting from the need to provide funding for the construction of capital facilities.
Except for the 2013A Certificate of Anticipation Notes (CANS) refunded in October
2014, the majority of principal payments on debt issues are due in August during the
third quarter, and in February during the third quarter of each fiscal year. As of March
31, 2014, 100 percent of the principal payments have been made through the end of the
third quarter. 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.
Section 1 - Page 9
FY 2014-15 Third Quarter Report
Self-Insurance Budget Reviews: Section 5 is the Self-Insurance Section. Through
March 31, the Self-Insurance Fund revenues totaled $955,000 or 74.6 percent of the
budget, while expenses were $1.7 million or 77.7 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.
Section 1 - Page 10
Operating Budget Review
Cost per Million Gallons by Department
Budget and Actual
March 31, 2015
$1.300
$1.200
$1,100
$1,000
$900
$Boo
$700
$600
$500
$aoo
$300
$200
$ioo
$o
E E —
z —
E
w � �Butlget �Adual
Collection,Treatment, & Disposal Expenses by Major Category
Budget and Actual (in thousands)
March 31, 2015
$65,000
$60,000
$56,000
$50,000
U5,000
$00,000
$36,000
$30,000
$26,000
$20,000
$15,000
$10,000
$5.000
$Q
h 2 E g' m O m C 5m
-
vQ
�ButlBet �Aclual O
Section 2-Page 1
2014-15 Third Quarter Report
Divisional Contributions to Cost Per Million Gallons
For the Nine Months Ended March 31,2015
2014-15
3/31113 3/31114 Annual 3131115
Actual Actual Budget Actual
Flow in Million Gallons 54,812.00 54,358.30 73,000.00 51,892.77
Flow in Million Gallons per Day 200.04 198.39 200.00 189.39
Executive Management Department
General Management Administration $ 24.43 $ 31.88 $ 36.56 $ 23.51
Board Services 8.00 8.69 9.11 8.21
Public Affairs 12.47 7.65 10.93 8.59
Subtotal 44.90 48.22 56.60 40.31
Human Resources Department
Human Resources 51.12 48.85 65.10 55.05
Subtotal 51.12 48.85 65.10 55.05
Administrative Services Department
Administrative Services 8.79 9.09 9.28 9.64
Financial Management 43.54 39.17 51.09 44.46
Contracts, Purchasing,&Materials Mgmt. 55.50 58.29 61.96 62.09
Information Technology 126.60 127.01 142.35 150.99
Risk Management 50.82 49.86 53.90 48.81
Subtotal 285.25 283.42 318.58 315.99
Facilities Support Services Department
Facilities Support Administration 8.23 8.95 9.71 10.56
Facilities Support 8.52 6.83 6.72 5.85
Equipment Rebuild 21.19 16.53 22.62 17.94
Fleet Services 24.59 25.19 27.37 29.35
Facilities Engineering&Repair Services 72.49 45.23 53.04 40.07
NPDES Source Inspection 34.56 36.86 36.17 31.94
Odor and Corrosion Control 90.63 90.22 98.28 100.52
Collection Facilities O&M 52.39 48.51 55.33 57.70
Subtotal 312.60 278.32 309.24 293.93
Engineering Department
Engineering Administration 6.38 &99 5.69 9.88
Planning 41.12 49.13 50.17 42.90
Project Management Office 46.78 46.81 49.03 51.81
Engineering and Construction 120.39 120.92 125.29 128.08
Environmental Compliance 93.40 92.99 92.97 103.89
Subtotal 308.07 315.84 323.15 336.56
Operations&Maintenance Department
Operations&Maintenance Administration 15.76 11.43 12.55 10.48
Plant No. 1 Operations 339.16 345.64 362.96 384.16
Plant No.2 Operations 287.24 289.94 310.58 294.17
Building, Grounds&Mechanical Maintenance 165.12 182.84 230.03 203.51
Instrumentation&Electrical Maintenance 191.64 201.11 216.73 209.72
Environmental Laboratory&Ocean Monitoring 109.37 106.72 112.82 116.00
Subtotal 1,108.29 1,137.68 1,245.67 1,218.04
Total Operating Expenses 2,110.23 2,112.33 2,318.34 2,259.88
Cost Allocation (205.61) (185.94) (229.34) (235.06)
Net Operating Requirements $ 1,9 44.62 $ 1,926.39 $ 2,089.00 $ 2,024.82
Section 2-Page 2
Operating Budget Review
Comparison of Expenses by Department
For the Nine Months Ended March 31,2015
2014-15
3/31113 3131/14 Year to Date Budget%
Department and Division Actual Actual Budget 3/31/15 Realized
Executive Management Department
General Management Administration $ 1,339,178 $ 1,732,860 $ 2,669,070 $ 1,220,179 45.72%
Board Services 438,715 472,493 665,220 426,090 64.05%
Public Affairs 683,562 415,675 798,200 445,732 55.84%
Subtotal 2,461,455 2,621,028 4,132,490 2,092,001 50.62%
Human Resources Department
Human Resources 2,801,930 2,655,630 4,752,630 2,856,736 60.11%
Subtotal 2,801,930 2,655,630 4,752,630 2,856,736 60.11%
Administrative Services Department
Administrative Services 481,647 494,345 677,510 500,062 73.81%
Financial Management 2,386,501 2,129,032 3,729,300 2,307,149 61.87%
Contracts, Purchasing,&Materials Mgmt. 3,042,051 3,168,754 4,523,100 3,222.169 71.24%
Information Technology 6,939,438 6,903,862 10,391,490 7,835,083 75.40%
Risk Management 2,785,721 2,710,300 3,934,910 2,532,910 64.37%
Subtotal 15,635,358 15,406,293 23,256,310 16,397,373 70.51%
Facilities Support Services Department
Facilities Support Administration 451,360 486,761 709,130 547,868 77.26%
Facilities Support 467,045 371,438 490,790 303,532 61.85%
Equipment Rebuild 1,161,213 898,753 1,651,440 930,925 56.37%
Fleet Services 1,348,071 1,369,540 1,997,800 1,523,297 76.25%
Facilities Engineering&Repair Services 3,973,457 2,458,572 3,871,880 2,079,232 53.70%
NPDES Source Inspection 1,894,369 2,003,911 2,640,360 1,657,580 62.78%
Odor and Corrosion Control 4,967,610 4,904,150 7,174,480 5,216,353 72.71%
Collection Facilities O&M 2,871,376 2,637,060 4,039,300 2,994,449 74.13%
Subtotal 17,134,501 15,130,185 22,575,180 15,253,236 67.57%
Engineering Department
Engineering Administration 349,941 325,849 415,210 512,848 123.52%
Planning 2,254,013 2,670,700 3,662,170 2,226,241 60.79%
Project Management Office 2,563,997 2,544,325 3,579,510 2,688,734 75.11%
Engineering and Construction 6,598,849 6,573,064 9,146,430 6,646.556 72.67%
Environmental Compliance 5,119,190 5,054,855 6,787,090 5,391,390 79.44%
Subtotal 16,885,990 17,168,793 23,590,410 17,465,769 74.04%
Operations&Maintenance Department
Operations&Maintenance Administration 863,744 621,267 916,210 543.765 59.35%
Plant No. 1 Operations 18,590,072 18,788,343 26,496,250 19,934,989 75.24%
Plant No.2 Operations 15,744,185 15,760,824 22,671,990 15,265,251 67.33%
Building,Grounds&Mechanical Maintenance 9,050,430 9,938,616 16,792,130 10,560,783 62.89%
Instrumentation&Electncal Maintenance 10,504,017 10,932,195 15,821,250 10,883,106 68.79%
Environmental Laboratory&Ocean Monitoring 5,994,796 5,800,639 8,235,970 6,019,195 73.08%
Subtotal 60,747,244 61,841,884 90,933,800 63,207,089 69.51%
Total Operating Expenses 115,666,478 114,823,813 169,240,820 117,272,204 69.29%
Cost Allocation (11,269,438) (10,108.348) (16,740,700) (12,198,701) 72.87%
Net Operating Requirements $ 104,397,040 $ 104,715,465 $ 152,500,120 $ 105,073,503 68.90%
Section 2-Page 3
2014-15 Third Quarter Report
Summary of Collection, Treatment, &Disposal Expenses by Major Category
For the Nine Months Ended March 31,2015
Expense Expense Increase Increase Percent
Budget Through Through (Decrease) (Decrease) Budget Remaining
Description 2014-15 3131/15 3131114 $ % Realized Budget
Salary&Wages $ 63,460,100 47,450,189 46.753,001 $ 697,188 1.49% 74.77% $ 16.009,911
Employee Benefits 35,708,700 23,161,716 22,604,281 557,435 2.47% 64.86% 12,546,984
Administrative Expenses 1,399,220 1,165.141 890,747 274,394 30.80% 83.27% 234,079
Printing&Publication 409,040 202,106 218,389 (16,283) -7.46% 49.41% 206,934
Training&Meetings 1,041,710 475,342 543,657 (68.315) -12.57% 45.63% 566,368
Operating Materials&Supplies 15,829,650 11,488,670 11,423,095 65,575 0.57% 72.58% 4,340,980
Contractual Services 24,335,170 15,933,325 16,439,190 (505,865) -3.08% 65.47% 8,401,845
Professional Services 3,225,370 1,782,916 2,015,285 (232,369) -11.53% 55.28% 1,442,454
Research&Monitoring 830,000 617,725 578,882 38,843 6.71% 74.42% 212,275
Repairs&Maintenance 13,063,210 8,144,843 6,786,056 1,358,787 20.02% 62.35% 4,918,367
Utilities 7,437,770 5,497.926 4,970,290 527,636 10.62% 73.92% 1,939,844
Other Materials,Supplies,
and Services 2,500,880 1,352,305 1,600,940 (248,635) -15.53% 54.07% 1,148,575
Net Cast Allocation (16,740,700) (12,198,701) (10,108,348) (2,090,353) 20.68% 72.87% (4,541,999)
Net Operating Requirements 152,500,120 105,073,503 104,715,465 358,038 0.34% 68.90% 47,426,617
Gallonage Flow(MG) 73,000.00 51,892.77 54,358.30 (2,465.53) -4.54
Gallonage Flow(MGD) 200.00 189.39 198.39 (9.00) -4.54
Gallonage Flow($'a/MG) $2,089000 $2,024.82 $1,926.39 $98.43 5.11%
Section 2-Page 4
Operating Budget Review
Summary of Revenues
For the Nine Months Ended March 31, 2015
Revenue Percent Revenue Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2014-15 3131115 Realized Budget 3131114 $ %
Service Fees $288,946,000 $168,811,060 58.42% $120,134,940 $170,565,648 $ (1,754,588) .1.03%
Permit Fees 13,684,000 9,260,644 67.67% 4,423,356 9,525,964 (265,320) -2.79%
Inter District Sewer UseSAWPA 2.529.000 1,772,265 70.08% 756.735 1,776,531 (4,266) .0.24%
Intra District Sewer Use-IRWD 2,302,140 1,790,660 77.78% 511,480 1,523,183 267,477 17.56%
Sludge Disposal-IRWD 8,394,000 5,805,375 69.16% 2,588.625 3,541,293 2,264,082 63.93%
Capital Assessments-IRWD 3,469,000 279,516 8.06% 3,189,484 8,419,935 (8,140,419) -96.68%
Capital Facilities Capacity Charges 11,355.000 12,348,274 108.75% (993.274) 8,M,897 3.570.377 40.67%
Debt Proceeds - 388,839,964 N/A N/A 131,991,953 256,848,011 194.59%
Property Taxes 77,733.000 48,384,825 62.24% 29,348,175 44,697,515 3,687,310 8.25%
Interest Earnings 13,143,000 5,374,154 40.89% 7,768,846 3,059,623 2,314,531 75.65%
Waslehauler 660.000 593,723 89.96% 66,277 492,131 101.592 20.64%
CNG Sales 331,000 307,972 93.04% 23,028 241,892 66,080 27.32%
Rents B Leases 251.000 188,448 75.08% 62.552 184798 3,650 1.9B%
Other 410,000 1,156,266 282.02% (746,266) 727,796 428,470 58.87%
Power Sales 4,000 11,254 281.35% (7,254) 2.755 8,499 308.49%
Other Sales 9,000 23,727 263.63% (14,727) 4,297 19,430 452.18%
Total Revenues $423,220,140 $644,948,127 152.39% $167,111,977 $385,533,211 $ 259,414,916 67.29%
Section 2-Page 5
2014-15 Third Quarter Report
Summary of Collection,Treatment, &Disposal Expenses by Line Item
For the Nine Months Ended March 31, 2015
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2014-15 3131115 Expensed Budget =1114 $ %
Salaries.Wanes&Benefits
Salaries&Wages $ 63,460,100 $ 47,450,189 ]4.]1% $ 16,009,911 $ 46,753,001 $ 697,188 1.49%
Employee Benefits
Retirement 25,398,200 15,587,735 61.37% 9,810,465 15,553,480 34,255 0.22%
Group Insurances 8,965,000 6,587,651 73.48% 2,311,349 6,324,]]4 262,8T1 4.16%
Tuition&Certification Relmb 173,400 117,654 67.85% 55,746 122,649 (4,995) 4.07%
Edu.degrees,Cad.&Lic. 295.800 224,628 75.94% ]1.1]2 214.145 10,483 4.90%
Uniform Rental 54,100 38,429 71.03% 15,671 40,232 (1,803) 4.48%
Workers Compensation 755,000 566,251 75.00% 188,749 W3,332 262,919 86.68%
Unemployment insurance 60,100 9,783 16.28% 50,317 40,220 (30,437) -75.68%
EMT Supplemental Benefits 7,100 29,585 416.69% 122,485) 51449 24,136 442.94%
Total Benefits 35,708,700 23,161,716 64.86% 12,546,984 22,604,281 557,435 2.47%
Salaries,Wages&Benefits 99,168,800 70,611,905 71.20% 28,556,895 69,357,282 1,254,623 1.81%
Man,Supply.&Services
Administrative Expenses
Memberships 576,240 472,707 82.03% 103,533 441,416 25,291 5.65%
Office Exp-Supplies 67,840 36,255 53.44% 31.585 40.176 (3,921) -9.76%
Postage 38,570 27,281 ]0.]3% 11,289 21,818 5,463 25.04%
Books&Publications 40,600 18,979 46.75% 21,621 21,560 (2,681) -11.97%
Fortes 890 1,216 136.63% (326) 615 601 97.72%
Small Computer Items 550.000 531,673 96.67% 18.327 311,394 220,279 70.74%
Minor Furniture&Fixtures 125,080 ]],030 61.58% 48,050 47,768 29,262 61.26%
Subtotal 1,399,220 1,165,141 83.27% 234,079 890,747 214,394 30.MT.
Printing&Publication
Repro-In-House 357,340 172,594 48.30% 184,746 174,147 (1,553) -0.89%
Printing-Outside 26,330 1],64] 66.64% 8,783 22,132 (4,685) -20.72%
Notions&Ads 25,110 11,891 47.36% 13,219 21,976 (10,085) 45.89%
Photo Processing 260 74 28.46% 186 134 (60) -44J8%
Subtotal 409,040 202,106 49.41% 206,934 218,389 (16,283) -7.46%
Training&Meetings
Meetings 189.970 90,221 47.49% 99,749 100.948 (10,727) -10.0%
Training 851,740 385,121 45.22% 466,619 412,709 (57,588)
Subtotal 1,N1,710 475,342 45.63% 51 543,657 (68,315) -12.57%
Operating starts&Supplies
Chemical Coagulants 5,785,000 4,388,820 ]5.8]% 1,396,180 4,318,511 70,309 1.63%
Odor Control 7,056,600 6,305,244 75.18% 1,751,356 5,070,168 235,076 4.64%
Disinfection 425,000 235,287 55.36% 189,713 229,894 5,393 2.35%
Chemicals-Misc&Cogan 68.000 18,376 27.02% 49.624 29,934 (11,558) -38.61%
Gasoline,Diesel&Oil 665,800 395,276 59.37% 270,524 412,543 (17,267) 4.19%
Tools 408,520 224,764 55.02% 183,756 247,022 (22,256) .9.01%
Safety equlpmenthools 161,440 331,865 71.92% 129,575 521.733 (189,868) -36.39%
Sol,Paints&Jan.Supplies 90.610 64,821 71.54% 25,789 61.106 3,715 6.08%
Lab Chemicals&Supplies 690,170 425,573 61.61% 265,197 439,637 (14,06,1) -3.20%
Other Operating Supplies 161,220 98,844 61.19% 62,576 106,090 (7,446) -7.02%
Property Tax Fees 16,690 0.00% 16,690 (13,543) 13,543 -100.00%
Subtotal 15,829,650 11,488,670 72.58% 4,340,980 11,423,095 65,575 0.57%
Contractual Services
Solids Removal 18,321,850 12,922,210 70.53% 5,399,&0 13,043,381 (121,171) -0.93%
Other Waste Disposal 831.450 757,625 91.12% 73.825 609.941 147,684 24.21%
Groundskeeping 170,000 115,173 67.75% 54,827 151,768 (36,595) -24.11%
Janitorial 459,940 362,485 78.81% 97,456 345,214 17,271 5.00%
Outside Lab Services 239,400 134,232 56.01% 105,168 154,770 (20,538) -13.27%
Oxygen Plant Oper 719.000 390,560 54.32% 328.440 499.0]] (108,517) -21.74%
County Service Fee 686,360 54,270 7.91% 632,090 51,494 (3,224) -5.61%
Temporary Saracen 182,990 230,734 47.11% 252,256 226,668 4,066 1.79%
Security Services 843,000 284,264 33.72% 558,736 293,731 (9,467) -3.22%
Other 1,581,180 681,]]2 43.12% 899,408 1,057,146 (375,374)
Subtotal 24,335,170 15,933,325 65.47% 8401,845 16439,190 (505,865)
(Continued)
Section 2-Page 6
Operating Budget Review
Summary of Expenses by Line Item
For the Nine Months Ended March 31, 2015
Expense Percent Expense Increase trustees.
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2014-15 =I115 Expensed Budget =1114 $ %
Continued:
Professional Services
Legal 84040o 779,271 92]3% 61,129 1,063,961 (284,690) .26.76%
Audit&Accounting 224,650 127,427 56.72% 97,223 144,508 (17,081) -11.82%
Engineering 595,000 77,339 13.00% 517,661 196,924 (119,585) 50.73%
Erwin,Scientific Consulting 67,500 130,085 192.72% (62,565) 28,610 101,475 354.68%
Software Prgm Consulting 420,000 216,885 51.64% 203,115 210,844 sw 2.87%
Advocacy Efforts 187,000 130,628 69.85% 56,372 113,883 16,745 14.70%
Industrial Hygiene Services 50,000 51,209 102.42% (1,209) 23,881 27,328 114.43%
Labor Negottabon Services 119,080 30,303 25.45% 88,777 39,710 (9,407) -23.69%
Other 721,740 239,769 3&22% 481,971 192,964 46,805 24.26%
Subtotal 3,225,370 1,782,916 55.28% 1,442,454 2,015,285 (232,369) -11.53%
Research&Monitoring
Environmental Monitoring 340,000 237,606 69.88% 102,394 203,284 34,322 16.88%
Air Quality Monitoring 85,000 80,119 94.26% 4,881 70,598 9,521 13.49%
Research 405,000 3001000 74.07% 105,000 305,000 (5,000) -1.64%
Subtotal 830,000 617,725 74.42% 212,275 578,882 38,843 6.71%
Repairs&Mairshmance
Materials&Services 11,111.070 6,557,654 59.02% 4,553,416 5.606,118 951,536 16.97%
Svc.Mtc.Agreements 1,952,140 1,587,189 81.31% 364,951 1,179,936 407,251 34.51%
Subtotal 13,063,210 8,144,843 82.35% 4,918,367 6,786,066 1,358,787 20.02%
utilities
Telephone 320,000 232,454 72.64% 87,546 185,773 46,601 25.13%
Diesel For Generators 23,230 14,435 62A4% 8,795 11,910 2,525 21.20%
Natural Gas 400,500 469,668 117.27% (69,168) 339,428 130,240 38.37%
Power 61003.200 4,382,833 73.01% 1,620,367 3.847,593 535,240 13.91%
Water 690,640 398,536 57.69% 292,304 585,586 (187,050)
Subtotal 7,437,770 5,497,926 ]3.92% 1,939,844 4,970,290 527,636 10.62%
Other Operating Supplies
Outside Equip Rental 7,330 105,771 1442.99% (98,*11) 4,847 100,924 2062.20%
Insurance Premiums 32,000 31,884 99.64% 116 31,862 22 0.07%
Prop&Gen Llab Insurance 500,000 375,003 75.00% 124,997 681,750 (306,747) 44.99%
Freight 0,120 46,412 77.20% 13,708 47,713 (1,301) -2.73%
Misc.Opembng Expense 254,290 122,520 48.18% 131,770 130,197 (7,6T) 5.90%
Regulatory Operating Fees 688,000 626,344 91.04% 61,656 665,722 (39,378) .5.92%
Subtotal 1,541)40 1,307,934 84.83% 233,806 1,562,091 (254,157) -16.27%
General Mgr Contingency
&Reappropriations 885,000 0.00% 885,000 NIA
Other Non-Oper Expense
Others 74,140 44,371 59.85% 29,769 38,849 5,522 14.21%
Subtotal 74,140 Ft,371 57985% 29,769 38,849 5,522 14.21%
Total Materials,
Supplies&Services 70,072,020 46,660,299 66.59% 23,411,721 45,466,531 1,193,768 2.63%
Total Expenditures 169,240,820 11],2]2,204 69.29% 51,968,616 114,823,813 2,448,391 2.13%
Cost Allocation (16,]40,]00) (12,198,701) 72.87% (4,541,999) (10,108,348) (2,090,30) 20.68%
Net Operating Requirements $ 152,500,120 $ 105,073,503 68.90% $ 47,426,617 $ 104.715,465 $ 358,038 0.34%
Section 2-Page 7
2014-15 Third Quarter Report
Summary of Collection, Treatment,8 Disposal Expenses by Process
For the Nine Months Ended March 31,2015
Increase Increase
Actual Actual (Decrease) (Decrease)
3/31/15 3/31/14 $ %
Process-
Preliminary Treatment $ 6,316,429 $ 6,515,509 $ (199,080) -3.06%
Primary Treatment 9,727,065 9,591,555 135,510 1,41%
Secondary Treatment 5,976,942 6,573,923 (596,980) -9.08%
Cryogenic Plant(Plant 2) 774,594 1,056,358 (281,764) -26.67%
Ef0uent Disposal 591,287 537,063 54,225 10.10%
Solids Handling 35,606,759 34,964,431 642,327 1,84%
Cogeneration 10,026,823 10,166,746 (139,923) -1.38%
Utilities 2,172,279 2,238,219 (65,940) -2,95%
Electrical Distribution 1,489,979 1,793,184 (303,205) -16.91%
Miscellaneous Buildings 5,703,947 5,328,420 375,527 7.05%
External Location 51,936 1,722 50,214 2915.79%
Nerissa Vessel 271,203 21,361 249,842 1169.62%
North County Yard 1,983 11 1,972 17931.00%
Laboratory 9,392,544 9,257,763 134,781 1.46%
Collections 16,969,731 16,669,200 300,532 1.80%
Net Operating Requirements $ 105,073,503 $ 104,715,465 $ 358,039 0.34%
Section 2-Page 8
Operating Budget Review
Staffing Trends
Full Time Equivalents
March 31, 2015
700
650 641 637 628 626 626
50 q0
606 40 38 51
550
500
456
6/30111 6/30/12 6/30113 6/30/14 3/31/15
DActual DVawnt
At March 31, 2015, the total head count was 581 employees, or a full time equivalency of 575.
Section 2-Page 9
2014-15 Third Quarter Report
This Page Intentionally Left Blank
Section 2- Page 10
CIP Budget Review
Capital Improvement Program
By Type and Funding Source
For the Nine Months Ended March 31, 2015
IlCollesgons Facllitea: 21.7%
eHeaEwwks: 08%
ePHmary Treatment 1.2%
GSecondary Treatment 0.6%
eSolitls Hantlling 8 nlgeston: 517%
oocean outlall Systems'. 0.4%
ou4lity systems: 143%
eProceas Related Special Projects 1.0%
elnfomlalion Management Systems: 1.9%
eStrategic 8 Master Planning: 0.0%
IlWater Management Projects: 0.1%
eSupp in Fadlidea: 58%
e Pr or Year Treatment Projects: 0.0%
MCapilal Equipment Purchases: 0.7%
Total Capital Improvement Outlays -$106,748,725
Replacement/Rehabilitation: 45%
Improved Treatment: 41%
❑Additional Capacity: 10%
■Support: 4%
Total Capital Improvement Outlays -$106,748,725
Section 3- Page 1
FY 2014-15 Third Quarter Report
Summary of Capital Improvement Construction Requirements-Current Year
For the Nine Months Ended March 31,2015
2014-15 2014-15 2014-16
Caching. Actual at Projected
Budget 3/31/2015 Outlay
Collection System Improvement Pro
Collections Facilities
Santa Ana Trunk Sewer Rehab. $ 3,359,755 $ 410,432 $ 2,837,400
SARI Realignment 405,332 158,133 412,000
SARI Rock Stabilizers Removal 211,746 26,410 144,700
Newhope-Placentia Trunk Gratle Separation Replacement 3,396,918 1,264,800 4,237,500
Newhope-Placentia Trunk Replacement MS,216 792,539 1,517,300
Lakeview Gratle Separation Project 283,853 60,256 311,300
Tustin Rose DICTA Gratle Separation Project 452,914 70,905 78,900
Orangethorpe DICTA Gratle Separation Project 719,552 14,214 14,300
Rehabilitation of Magnolia Trunk Sewer - (79,892) (79,900)
Seal Beach Pumping Station Rehabilitation M3,829 128,347 652,600
Rehabilitation of Western Regional Sewers - 71,336 1,042,100
Rehabilitation of Balboa Trunk Sewer 2,551,550 60,155 101,700
Bitter Point Force Main Rehabilitation 410,577 136,993 217,000
Newpon Force Main Rehabilitation 20,079,397 16,322,060 21,210,400
Dover Drive Trunk Sewer Relief 4,639,536 2,263,944 2,348,600
District 6 Trunk Sewer Relief 720,854 223,369 338,300
Southwest Costa Mesa Trunk 436,125 127,716 313,900
Gisler-Redhill Trunk Improvements,Reach B 216,393 435,168 747,600
Master Facilities Engineering Projects-Collections M4,029 184,406 326,100
Bay Bridge Pump Station and Force Mains Rehabilitation Study 381,646 41,198 148,100
Collection System Master Planning 1,000,000 104,632 104,700
Additional Charges to CIP Closed st 6130114 (11,320) If 1,400)
Subtotal-Collections Facilities 41,179,222 22,805,801 37,013,200
Revenue Area 14
Bitter Point Force Main Rehabilitation(1.65%) 6.888 2,298 3,700
Newport Force Maln Rehabilitation(1.88%) M4.726 312,734 406.400
Subtotal-Revenue Area 14 391,614 315,032 410,100
Total Collection System Improvement Projects 41,570,836 23,120,833 37,423,300
(Continued)
Section 3-Page 2
CIP Budget Review
Summary of Capital Improvement Construction Requirements-Current Year
For the Nine Months Ended March 31,2015
2014-15 2014-15 2014-15
CasMlow Actual at Projected
Budget 313112015 Outlay
Treabnent a Disposal Protects
Headwork,
Headwoiks Rehabilitation and Expansion at Plant 1 429,107 267,08 460,700
Truck Line Odor Control Improvements Pi 669,312 483,357 608,600
Headworks Improvements at Plant 2 54,M1 54.600
Subtotal-Hasse ks 1,098,419 805,426 1,123,900
Primary Treatment
Joint GWRS Microfiltration Backwash Redirection Project 5,219 2,958 3,000
Plant l Primary Treatment Upgrades 3,427,951 1,254,662 2,726,800
Plant 2 Primary Treatment System Rehabilitation - - 103,700
Primary Treatment Area Rehabilitation Study 578,378 4.600
Subtotal-Primary Treatment 4.011.546 1,257,620 2,838,100
Secondary Treatment
New Secondary Treatment System at Plant No.1 139.159 523,577 570,800
Oxygen Plant Demolition at Plant No.2 1,829,561 0,395 84,0g0
Plant No.1 Secondary Treatment Asset Management Plan 365,015 -Plant No.2 Secondary Oxygen Plant Asset Management Plan 93,567 -
Subtotal-Secondary Treatment 2,427.302 591,972 654,800
Solids Handling&Digestion
Digester Rehabilitation at Plant l 5,443,017 4,316,187 6,038,500
Sludge Dewatenng and Odor Control at Plant 1 61,050,918 40,668,942 54,140,900
Digester Ferric Chloride System Rehalllltati0n 320,044 330,327 334,800
Solids Thickening and Processing Upgrades 6,315,445 6,60%324 81183,900
Sludge Dewatedng and Odor Control at Plant 2 1,402,322 3,164,995 4,183,500
Plant 2 DigestemlBoilers Plant Asset Management Plan 355,943 171,922 235.200
Subtotal-Solids Handling 8 Digestion 74.887.689 55,161,697 73,116,800
Ocean Cal Systems
Final Effluent Sampler and Building Area Upgrades 488,290 334,328 528,100
Ou9all Land Section and OOBS Piping Rehabilitation 52,879 18,980 19,0g0
Ocean Outfall System Rehabilitation 713,223 192,629 464.800
Subtotal-Ocean Outtell Systems 1.254.392 545.937 1,011,900
Utility Systems
Carrigan Cooling Water System Replacement 284.249 63,506 63,600
Cengen Emissions Control Project 6,988,246 9,208,653 11,229,000
Power Monitoring and Control Systems 286,319 283,744 391,300
Plant Water System Rehabilitation at Plant No.1 2,501,914 2,133.573 3,129,300
Plant Water System Rehabilitation at Plant No.2 2,323,394 1,970,398 2,653,700
Boiler System Rehab 8 Scrubbers H&I Demolition at Plant 2 1,744,766 1,W,502 1,697,900
Consolidated Demolition B Utility Improvements at Plant 2 227,821 269,057 479,400
Digester Gas Facilities Study for Plants 182 314,397 257,041 257,100
Utility Water Systems Study 800.000 - -
PlantAirSystemMasterPlan 147,626 - -
Electrical System Base Map 250,000
Subtotal-Utility Systems 15.868.732 15.234.474 19,912,300
(Continued)
Section 3-Page 3
FY 2014-15 Third Quarter Report
Summary of Capital Improvement Construction Requirements-Current Year
For the Nine Months Ended March 31,2015
2014-15 2014-15 2014-15
Cashfl. Actual at Projili
Budget 3/31/2015 Outlay
Process Related Special Projects
Fall Protection Improvements at Plants Nos.I and 50,436 1,224 1,300
Corrosion Management 2,MO,766 888,953 1,249,600
Odor Control Master Plan 741,412 tall 182.400
Subtotal-Process Related Special Projects 2,792,614 1,050,855 1,433,300
Information Management Systems
Programmable Control Panel Upgrades 1,689,364 321,445 870,300
Strategic Information Architecture(SIA) 750,222 189,002 275,000
InterneVlntranet Development 173,372 65,071 86,600
Geographic Information System S65,026 103,683 119,100
Information Technology Equipment Upgrade 600,856 318,456 315,900
EAM Software and Process Implementation 833,913 716,648 966,100
PD82D Software Replacement 126,655 35,400 67,200
Software and Computer Equipment Replacement Project 746,895 254,452 388,100
Information Technology Master Plan 232,042
Subtotal-InformaSon Management Syatame 5,518,M5 2,010,157 3,149,500
Strategic&Master Planning
Facilities-Wide Safety Assessment 241,481 19,904 20,000
Landscape&Security Master Plan 111.423 - -
Stomwater Master Plan 38,018 - -
Treatment Plant Hydraulic Assessment 168,726 18,880 18,900
Asset Management Program 54,641 192 200
Subtotal-Strategic a Master Planning 614.289 38,976 39,100
Water Management Projects
Effluent Reuse Study 575,919 153.860 340.400
Subtotal-Water Management Projects 575.919 153,860 340,400
Support Facilities
Master Facilities Engineering Projects-Plant 3,T11,179 1,8M.525 2,822,700
Master Small Capital ReplacemenVRehabilbation-Plant 4.220,002 382,029 883,500
Operators Center Entrance/Building Repairs 35,247 - -
Title 24 Access Compliance and Building Rehabilitation Project 4,846,201 1,252,404 3,714,700
South Perimeter Security&Storm Water Improvements at P1 40,938 65,753 im,800
Site and Security Improvements at Plant Nei 252.000 22,417 22,500
Public Address System Study 100,000 - -
Tunnels Systems Asset Management Plan 118,842 -Plant No.2 Administradve Building Master Plan 192,545 - -
Administrative Facilities Implementation Planning 662,962 525,042 723,600
Ongoing Small Capital ReplacemenVRehabilitation 1,183,658 1,849,716 2,078,100
Subtotal-Support Facilities 15,423,580 5.950.946 10,399,900
(Continued)
Section 3-Page 4
CIP Budget Review
Summary of Capital Improvement Construction Requirements-Current Year
For the Nine Months Ended March 31,2015
2014-15 2014-15 2014-15
Cash low Actual at Projected
Budget 313112015 Outlay
Other.
Future Research Line Item 1,000,381 45,134 139,600
Capital Improvement Program Mgmt.Services 99,999 39.900
Subtotal-Others 1,100,380 45,134 179.500
Additional Charges to CIP Completed at 6l30114 5,140 66.000
Total Treatment and Disposal Projects 125,573,207 82,852,194 114,265.500
Capital Equipment Purchases 2,078,600 775,698 2,078,600
Total Colledion,Treatment and Disposal Projects
and Capital Equipment Purchases $169,222,643 $106,748,725 $ 153,767,400
Section 3-Page 5
FY 2014-15 Third Quarter Report
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2015
Current Total
Approved June 30,2014 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2015 Budget
Collection System Improvement Pro ects
Collections Facilities
Santa Ana Trunk Sewer Rehab. 7,676,000 3,154,323 2,837,400 5,991,723 1,6811,277
Rain and Bristol Street Sewer Extension 10722,000 259,075 - 259,075 10,462,925
SARI Realignment 11,414,000 5,325711 412.000 5,737,711 5,666,289
SARI Rock Stabilizers Removal 3,092,000 26,666 144700 171,366 2,920634
Taft Branch Improvements 3,143,000 12,083 - 12,083 3,130,917
Newhope-Placentia Trunk Grade Separation Replacement 5,966,000 559,207 4,237.500 4,796,707 1,169,293
Newhope-Placentia Trunk Replacement 104,890,000 51,792 1,517.300 1,569,092 103,320,908
Yoffie Linda Pumping Station Abandonment 4,694,000 - - - 4,694,000
Coyote Hills Golf Course Odor Control Station 8,365,000 - - - 8,365,000
Lakeview Grade Separation Project 330,000 4,142 311.300 315,442 14,558
Tustin Rose OCTA Grade Separation Project 586,000 36,228 78.900 115,128 470,872
Orangethorpe OCTA Grade Separation Project 31900,000 10g028 14.300 114,328 3785,672
Rehabilitation of Magnolia Trunk Sewer 19,812,000 19,637,646 (79.900) 19,567.746 244,254
Miller-Holder Trunk Sewer Relief 17.324,000 - - - 17,324,000
Beach Trunk/Knott Interceptor Sewer Relief 27.599,000 - - - 27,599,000
Seal Beach Pumping Station Rehabilitation 62,041,000 - 652.600 652,600 61,388,400
Rehabilitation of Western Regional Sewers 112.222,000 - 1,042,100 1,D42,100 111,179,900
Rehabilitation of Balboa Trunk Sewer 8,122,000 6,740,612 101700 6,842,312 1,279,688
Biker Point Force Main Rehabilitation 44.866,287 30,783,269 217,000 31,0111 13,866,018
Newport Force Main Rehabilitation 51,236,33E 6,272,065 21 210,400 27,482,465 23751,874
Dover Drive Trunk Sewer Relief 14,327,000 10,557,800 2,348,600 12,9M.400 1.420,600
Crystal Cove Pumping Station Upgrade and Rehabilitation 7,817,000 - - - 7.817,000
Bay Bridge Pumping Station Rehabilitation 74,431,000 - - - 74.431,000
District 6 Trunk Sewer Relief 7,047,000 671,372 338.300 1,009,672 6,037,328
Southwest Costa Mesa Trunk 14,993,000 1,391.745 313.900 1,705.645 13,287,355
Gisler-Redhill Trunk Improvements,Reach B 25,873,000 3,376.438 747.600 4,124.038 21,748,962
Browning Subtrunk Sewer Relief 13,439,000 - - - 13,439,000
Von Karman Trunk Sewer Relief 433,000 - - - 433,000
MacArthur Pump Station Rehabilitation 7,445,000 - - - 7,445,000
Main Street Pump Station Rehabilitation 40747,000 - - - 40747,000
Edinger/Balsa Chlca Trunk Improvements 6.030,000 - - - 6.030,000
Edinger Pumping Station Upgrade and Rehabilitation 13.629,000 - - - 13.629,000
Slater Avenue Pump Station Rehabilitation 13781,000 - - - 13781,000
Master Facilities Engineering Protects-Collections 12,192,000 273,440 326.100 591 11.592,460
Bay Bridge Pump Station and Force Mains Rehabilitation Study 522,838 - 148.100 148,100 374738
Collection System Master Planning 1.000,000 - 104700 104,700 895,300
Collection System Odor Control Systems Study 700,000 - - - 700,000
Additional Charges to CIP Closed at 6130114 (11.400) (11,4001 11,400
Subtotal-Collections Facilities 762,395,464 89,243,642 37,013,200 126,256,842 636,138,622
Revenue Area 14:
Bitter Point Force Main Rehabilitation(1.65%) 752,714 516,445 3,700 520,145 232,568
Newport Force Main Rehabilitation(1.88%) 981,661 120,174 406,400 526,574 455,087
Subtotal-Revenue Area 14 1,734,374 636,619 410,100 1,046.719 687,655
Total Collection System Improvement Projects 764,129,838 89,880,261 37,423,300 127,303,561 636,826,277
(Continued)
Section 3-Page 6
CIP Budget Review
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2015
Current Total
Approved June 30,2014 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2015 Budget
Treatment&Disposal Projects
Headworks
Headworks Rehabilitation and Expansion at Plant 1 76,476,000 23,493 460,700 484,193 75,991,807
Headworks Expansion P1 222,804,000 - - - 222,804,000
Truck Line Odor Control Improvements P1 10,826,000 917.437 608,600 1,526,037 9,299,953
Heatlworks Improvements at Plant 2 258.724,000 258,135,521 54,600 258,190,121 533,879
Subtotal-Heatlworks 568,830,000 259,076,451 1,123,900 260,200,351 308,629,649
Primary Treatment
Joint GWRS Microfiltration Backwash Redirection Project 387,000 359,168 3,000 362,168 24,832
Primary Scrobbm Rehabi@ation at Plant 1 50,708,000 - - - 50708,000
Primary Effluent Pipeline Joint Repairs 3,246,000 - - - 3,246,000
Plant l Primary Treatment Upgrades 11,535,000 1,048737 2726,800 3,7]5,537 7,769,463
Plant 2 Primary Treatment System Rehabilitation 43,210,000 - 103,700 103,700 43,106,300
Primary Treatment Area Rehabilitation Study M8,000 157.161 4,600 161761 686,239
Subtotal-Primary Treatment 109.934.000 1.565.066 2,838,100 4,403,166 105,530,834
Secondary Treatment
New Secondary Treatment System at Plant No.1 255,771,000 254,397,212 570,800 254,968,012 802,988
Oxygen Plant Demolition at Plant No.2 4,051,000 539,982 84,000 623,982 3,427,018
Plant No.l Secondary Treatment Asset Management Plan 400,000 - - - 400,000
Plant No.2 Secondary Oxygen Plant Asset Management Plan 400,000 400,000
Subtotal-Secondary Treatment 260.622.000 254.937.194 654.800 255.591.994 5.030.006
Solids Handling&Digestion
Digester Rehabilitated at Plant l 64,902,000 45,702,099 6,038,500 51,740,599 13,161,401
Sludge Dewatedng and Odor Control at Plant l 171,978,000 48,624,141 54.140,900 102,765,061 69,212,959
Digester Ferric Chloride System Rehabilitation 4,449,000 4,069,536 334,800 4,404,336 44,664
Plant No.2 Solids Storage Addition 37,604,000 - - - 37,601
Solids Thickening and Processing Upgrades 48,346,000 32,517,589 8,183,900 40,701,489 7,644,511
Plant No.2 Digester Facilities Rehabilitation 47,600,000 152.343 - 152.343 47,447,657
Sludge Dewatering and Odor Control at Plant 2 87,000,000 8,899,067 4,183,500 13,082,567 73,917,433
Plant 2 DigesteraBoilere Plant Asset Management Plan 800,000 46,456 235,200 281,656 518.344
Subtotal-Solids Handling&Digestion 462,679,000 140,011,231 73,116,800 213,128,031 249,550,969
Ocean Outfall Systems
Final Effluent Sampler and Building Area Upgrades 15,973,000 2,540,592 528,100 3,068,692 12,904,308
Call Land Section and OOSS Piping Rehabilitation 20,466,000 19,653,161 19,000 19,672,161 793,839
fire-Inch Interplant Effluent Pipeline Rehabilitation 72.517,000 - - - 72,517,000
Ocean Oudall System Rehabilitation 48.194.000 37.154 464.800 601.954 47.692.046
Subtotal-Ocean Outfall Systems 157,150,000 22,230,907 11011,900 23,242,807 133,907,193
bell Systems
Cengen Cooling Water System Replacement 11,337,000 11,215,149 63,600 11,278,749 58,251
Cengen Emissions Control Project 24,950,000 3,730.169 11.229,000 14,959,169 9,990,831
UPS System Upgrades 3,817,000 - - - 3,817,000
Digester Gas Facilities Rehabilitation 58,755,000 - - - 58,765,000
Electrical Power Distribution System Improvements 12,791,000 - - - 12791,000
Power Monitoring and Control Systems 10,918,000 10,246,090 391,300 10,M7,390 280,610
Plant Water System Rehabilitation at Plant No.1 8,000,000 3,763,229 3,129,300 6,892,529 1,107,471
(Continued)
Section 3-Page 7
FY 2014-15 Third Quarter Report
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2015
Current Total
Approved June 30,2014 Year Projected Remaining
Project Accumulated Projected Costal Future
Budget Cost Cost June 30,2015 Budget
Utility Systems
Plant Water System Rehabilitation at Plant No.2 5,070,000 1,537,043 2,664,700 4,201.743 868,257
Boiler System Rehab&Scrubbers H&I Demolition at Plant 2 3,095,000 1,023,404 1,697.900 2,721.304 373,696
Consolidated Demolition&Utility Improvements at Plant 43,974,000 136,595 47%,[00 615,995 43,358,005
SCE Feed Reliability Improvements 22,490,000 - - - 22.490,000
Secondary Area Cable Tray Upgrades 2,154,000 - - - 2,154,000
Headworks Cable Tray Upgrades 3,015,000 - - - 3.015,000
Digester Gas Facilities Study for Plants 1&2 750,000 420,565 257,100 6]],665 72,335
Utility Water Systems Study 800,000 - - - 800,000
Plant Air System Master Plan 340,000 - - - 340,000
Electrical System Base Map 250,000 - - - 250,000
Sldestream Pumping System and Water Charechat ation Study 250,000 250,000
Subtotal-Utility Systems 212,756,000 32,072,244 19,912,300 51,984,544 160,771,456
Process Related Special Projects
Fall Prompted Improvements at Plants Nos.1 and 2 2,687,000 2,597,617 1,300 2,598,977 88,023
Corrosion Management 28,500,000 8,979,211 1,249.600 10,228,811 18,271,189
Odor Control Master Plan 1,600.000 772.885 182.400 955,285 644,715
Subtotal-Process Rdatad Spacial Projects 32.787,000 12,349,]]3 1,433,300 13,783,073 19,003,927
Information Management Systems
Process SCADA Replacement 24,680,000 - - - 24.680,000
Programmable Control Panel Upgrades 3,477,000 12,393 8]0,300 882,693 2,594,307
SCADA System and Network Upgrades 27,839,000 - - - 27.839,000
Strategic Information Architecture(SIA) 1,995,000 1,158,338 275,000 1,433,338 561,662
Inlernetlintranm Development 650,000 42,062 86,600 128,662 521,338
Geographic Information System 4,047000 1,387p91 119700 1,507,191 2,539,809
Information Technology Equipment Upgrade 4,148,000 2,862,842 375,900 3,238,742 909,258
EAM Software and Process Implementation 6,500,000 3785,651 966700 4,752,351 1,747,649
PDS2D Software Replacement 525,000 284,988 67,200 352,188 172,812
Software and Computer Equipment Replacement Project 5,050,000 1,290,717 388,100 1,678,817 3.371,183
Process SCADA Link to Pump Stations 271,000 19,083 - 19,083 251,917
Information Technology Master Plan 500,000 5001000
Subtotal-Information Management Systems 79,682,000 10,843,565 3,149,500 13,993,065 65,688,935
Strategic&Master Planning
Facilities-Wide Safety Assessment 930,000 843,928 20,000 863,928 66,072
Landscape&Severity Master Plan 150,000 - - - 150,000
Climate Change Impact Study 100,000 - - - 100,000
Stormwater Master Plan 300,000 - - - 300,000
Treatment Plant Hydraulic Assessment 300,000 - 1$g00 18,900 281,100
Settlement&Liquefaction Study 700,000 - - - 700,000
Asset Management Program 4,800,000 2,778,183 200 2,718,383 2,021,617
Subtotal-Strategic&Master Planning 7,280,000 3,622,111 39,100 3,661211 3,618,789
Water Management Projects
Effluent Reuse Study 2,800,000 340,400 340,400 2,459,600
Subtotal-Water Management Projects 2,800,000 - � 340,400 2,459,600
(Confirmed)
Section 3-Page 8
CIP Budget Review
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2015
Current Total
Approved June 30,2014 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2015 Budget
Support Facilities
Master Facilities Engineering Projects-Plant 35,228,000 21,111,389 2,822,700 23,934,089 11,293.911
Master Small Capital Replacement/Rehabilitation-Plant 18,295,000 - 883,500 883,500 17,411,500
Operations Center EnbrancelBullding Repairs 2,648,000 526,383 - 526,383 2,121.617
Title 24 Access Compliance and Building Rehabilitation Project 17,437,000 3,459,355 3,714,700 7,174,055 10,262,945
South Perimeter Security B Storm Water Improvements at PI 3,005,000 - 154,800 154,800 2,850,200
Site and Security Improvements at Plant No.2 252,000 199,349 22,500 221,849 30,151
Public Address System Study 100,000 - - - 100,000
Tunnels Systems Asset Management Plan 20D,000 - - - 200,000
Plant No.2 Administrative Building Master Plan 3W,000 - - - 300,000
Administrative Facilities Implementation Planning 80 ,000 31,927 723,600 755,527 44473
Ongoing Small Capital Replacement/Rehabilitation 22,088,000 16,758,367 2,078,100 18,836467 3,251,533
Subtotal-Support Facilities 100,353,000 42,086,770 10,399,900 52486,670 47,866,330
Othem
Future Research Line Item 10,440,000 1,527,795 139,600 1,667,395 8,772.605
Capital Improvement Program Mgmt.Services 300,000 39,900 39,900 260.100
Subtotal-Others 10,74g000 1,527,795 179.500 1,707,295 9,032,705
Additional Charges to CIP Completed at 6l30114 66,000 66,000 (66.000)
Total Treatment and Disposal Projects 2,005,613,000 780,323,107 114,265,500 894,588.601 1,111,024,393
Capital Equipment Purchases 16,004000 4,171,413 2,078,600 6,250,013 9,749,987
Total Collection,Treatment and Disposal Projects
and Capital Equipment Purchases $ 2,785,742,838 $874,374,781 $153,767,400 $1,028,142,181 $1,757,600,657
Section 3-Page 9
FY 2014-15 Third Quarter Report
This Page Intentionally Left Blank
Section 3- Page 10
Capital Assets Schedule & Debt Service Budget Review
Capital Assets Schedule
For the Nine Months Ended March 31,2015
Capital Facilities Budget Review
Balance year-to-Date Helena
07/01/14 Additions 3/31/15
CONSTRUCTION IN PROGRESS:
Treatment Plant $ 218,812,539 $ 83,607,550 $ 302,420,089
Collection System 39,206,400 23.141,175 61
Subtotal 258,018,939 106748,725 364767,664
PROPERTY,PLANT&EQUIPMENT(at coat):
Land and Property Rights 15,959,659 - 15,959,559
Collection Lines and Pump Stations 753.136,534 - 753,136,534
Treatment Facilities 2,220,814,179 - 2,220,814,179
Effluent disposal facilities 97,014,B20 - 97,014,820
Solids disposal facilities 3,463,236 - 3,463,236
General and administrative facilities 224.717,092 - 224,717,092
Excess purchase price over book value on acquired assets 19,979,000 19,979,000
Subtotal 3,335,084,420 3,335,084,420
Total Property,Plant&Equipment&CIP S 3,593,103,359 $ 106,748,725 $ 3,699,852,084
Debt Service Budget Review
2014.15 Year-to-Date Remaining
Budget Payments %of Budget Budget
Principal Payments by Debt Issue:
2007A COP 245,000 245,000 100.00% -
2007B COP 6,450,000 6,450,000 100.00% -
2008B COP 8,270,000 8,270,000 100.00% -
2009ACOP 3,855,000 3.855,000 100.00% -
2010A BASs - - N/A -
2010CBABs - - N/A -
2011ACOP 91055,000 9,055,000 100.00% -
2012A COP - - N/A -
2012B COP - - N/A -
2013ACANs 129,625,000 129.625,000 100.00% -
2014A COP - - N/A -
20148 CANS N/A
Subtotal Principal Payments 157,500,000 157,500,000 100.00%
Interest Expense by Debt Issue:
2007A COP 4,124,194 3,096,178 75.07% 1,028,016
2007B COP 13,162,962 5,568,163 42.30% 7,594,799
2008E COP 630,980 405,680 64.29% 225,300
2009A COP 8,999,175 6,749,375 75.00% 2,249,800
2010A BAB. 2,897,639 2,500,541 81 397,098
2010C BAB. 6,523,780 5,627,659 81 896,121
2011A COP 5,825,450 4,263,450 73.19% 1,562,000
2012A COP 3,735,900 2,802,000 75.00% 933,900
2012E COP 3,187,400 2,390,500 75.00% 796,900
2013A CAN. 2,592,500 760,000 29.32% 1,832,500
2014A COP - 3,275,422 N/A (3,275,422)
2014B CAN. - 2,051 N/A (2,056,548)
2015A COP 1,226,495 N/A (1,226,495)
Subtotal Interest Expense 51,679,980 40,722,011 78.81 12,184,464
Total Debt Service $ 209,179,980 $ 198,222,011 94.76% $ 12,184,464
Section 4-Page 1
2014-15 Third Quarter Report
This Page Intentionally Left Blank
Section 4- Page 2
Self Insurance Budget Review
General Liability and Property Fund Budget Review
For the Nine Months Ended March 31,2015
Percent
Actual of Budget Remaining Actual
2014-15 Through Through 2014-15 Through Increase
Budget 3/31/15 3131115 Budget 3/31/14 (Decrease)
Revenues:
In-Lieu Premiums $ 500,000 $ 375,003 75.00% $ 124,997 $ 681,750 $ (306,747)
Miscellaneous Other Revenue - 274 N/A - 129,808 (129,534)
Service Department Allocations 24,100 4,122 17.10% 19,978 13,122 (9,000)
Total Revenues 524,100 379,399 72.39% 144,975 824,680 (445,281)
Expenses:
Benefits/Claims 120,000 23,567 19.64% 96,433 60,285 (36,718)
Contractual Services 1,200 - 0.00% 1,200 - -
Legal Services 75,000 39,856 53.14% 35,144 5,016 34,840
Professional Services 51000 0.00% 5,000
Subtotal 201,200 63,423 31.52% 137,777 65,301 (1,878)
Policy Premium Expense 1,300,000 826,404 63.57% 473,596 817,044 9,360
Total Expenses 1,501,200 889,827 59.27% 611,373 882,345 7,482
Excess Revenue (Expense) (977,100) (510,428) $ (466,398) (57,665) (452,763)
Beginning Reserves 56B74,500 56,802,224 56,904,863 (102,639)
Ending Reserves $55, 997,400 $ 56, 991,796 $ 56, 447,198 $ (555,402)
Section 5-Page 1
FY 2014-15 Third Quarter Report
Workers' Compensation Fund Budget Review
For the Nine Months Ended March 31,2015
Percent
Actual of Budget Remaining Actual
2014-15 Through Through 2014-15 Through Increase
Budget 3/31/15 3/31/15 Budget 3131114 (Decrease)
Revenues:
In-Lieu Premiums $ 755,000 $ 566,250 75.00% $ 188,750 $ 303,333 $ 262,917
Miscellaneous Other Revenue - 9,117 N/A (9,117) 3,648 5,469
Service Department Allocations - - N/A - - -
Total Revenues 755,000 575,367 76.21% 179,633 306,981 268,386
Expenses:
Benefits/Claims 400,000 505,866 126.47% (105,866) 428,827 77,039
Contractual Services - - N/A - - -
Legal Services 100,000 98,521 98.52% 1,479 61,820 36,701
Professional Services 50,000 50,074 100.15% (74) 33,167 16,907
Subtotal 550,000 654,461 118.99% (104,461) 523,814 130,647
Policy Premium Expense 150,000 166,895 111.26% (16,895) 148,400 18,495
Total Expenses 700,000 821,356 117.34% (121,356) 672,214 149,142
Excess Revenue(Expense) 55,000 (245,989) $ 300,989 (365,233) 119,244
Beginning Reserves 1,940,900 1,771,820 2,238,580 (466,760)
Ending Reserves $ 1,995,900 _L 1,525,831 $ 1,873,347 $ (347,516)
Section 5-Page 2
a
C�p
April 30, 2015
STAFF REPORT
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2015
SUMMARY
Section 15.0 of the District's Investment Policy includes quarterly reporting requirements
for the District's two investment portfolios. These two funds, the "Liquid Operating
Monies," and the "Long-Term Operating Monies" are managed by Chandler Asset
Management, the District's external money manager.
The ongoing monitoring of the District's investment program by staff and Callan
Associates, the District's independent investment advisor, indicates that the District's
investments are in compliance with the District's adopted Investment Policy and the
California Government Code, and that overall performance has tracked with benchmark
indices. In addition, sufficient liquidity and anticipated revenues are available for the
District to meet budgeted expenditures for the next six months. The District's portfolios
do not include any reverse repurchase agreements or derivative securities.
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 the District's portfolios, as of March 31, 2015. The Liquid Operating
Monies portfolio, with an average maturity of 128 days, consists entirely of high quality
fixed income investments consistent with the District's investment policy.
Portfolio Performance Summary
The following table presents a performance summary of the District's portfolios as
compared to their benchmarks for the period January 1 through March 31, 2015.
OOSD ♦ P.O.Box B12] ♦ Fountain Valley,LA 9292"127 ♦ (914)962-2411
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2015
Page 2 of 3
Portfolio Performance Summary
Quarter Ended March 31,2015
Liquid Operating Monies %) Long-Tenn Operating Monies °
Total Rate Total Rate of
of Return Benchmarks' Return Benchmarks'
3 Months 0.07 0.00 0.82 0.96
6 Months 0.08 0.01 1.38 1.44
9 Months 0.13 0.02 1.32 1.38
12 Months 0.15 0.03 2.11 2.02
Since inception 30 Sept.95 2.91 2.68 4.81 4.50
Market Value 9.5M 386.8M
Average Quality "AA+TAa1" "AA."
Current Yield(%) 0.6 1.3
EsBmated Yield to Maturity(%) 0.2 0.9
Quarterly Deposits(Wilhdrawals) - 7.5M - 50.5M
Estimated Annual Income $0.1M $4.4M
(1) Benchmarks:
• Liquid Operating Portfolio: 3-Month Treasury Bill Index
• Long-Teml Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index
Portfolio Market Values
Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the
attached bar chart.
Liquid Long-Term
Quarter Operating Operating
Ending Monies($M) Monies($M)
30 Jun.14 85.9 506.2
30 Sep.14 58.9 461.6
31 Dec.14 56.9 433.5
31 Mar.15 49.5 386.8
District's Investment Account Balances as of March 31,2015
Book Balances Estimated
Investment Accounts March 31,2015 Yield(%)
Slate of Calif.LAIF $ 44.182,882 028
Union Bank Checking Amount 278,706 0.01
Union Bank Overnight Sweep Account 554,000 0.00
Union Bank W/C Checking 162,594 0.00
Chandler-Short-leml Portfolio 49,461,228 0.19
Chandler-Long-term Portfolio 386,837,796 0.91
Petty Cash 3,000 N/A
BNY Mallon OCIP Reserve 3,606,594 0.37
TOTAL $4A5 OA5 A00 0.78
Debt Service Reserves w/Tmstees R 32 9fiF fi92 1.65
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2015
Page 3 of 3
District's Cost of Funds on Debt Issues as of March 31, 2015
Annual
Cost of Funds Outstanding Intetest
Issue Description COP Bzlance Rate r%)
2007A Fixed $92,140,000 4.50
2007B Fixed 13,885,000 4.71
2008B Fixed 17,315,000 2.96
2009A Fixed 180,235,000 4.72
2010A Fixed 80,000,000 3.68
2010C Fixed 157,000,000 4.11
2011A Fixed 121,290,000 2.61
2012A Fixed 100,645,000 3.54
2012B Fixed 66,395,000 1.50
2014A Fixed 85,090,000 2.34
2014B Fixed 120,850,000 0.35
2015A Fixed 127510.000 3.30
TOTAL FLIfiJ}f5.0(Ifl
Weighted Avg.Cost of Funds 3.23
ATTACHMENTS
1. Chandler Quarterly Report
2. Summary of Performance Data and Portfolio Statistics— Liquid Operating Monies
3. Summary of Performance Data and Portfolio Statistics — L-T Operating Monies
4. Investment Transactions and Balances in LAW
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
C/" CHANDLER
AWE
MANAGEMENT
March 31, 2015
Mr. Mike White, CPA
Controller
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley CA 92708-7018
Dear Mike,
Bond Market Recap
Job growth was weaker than expected in March with nonfarm payrolls up 126,000, well below
the consensus forecast of 245,000. The unemployment rate was unchanged at 5.5%, though
the labor participation rate declined to 62.7% from 62.8%. Wages rose 0.3% (higher than
expected). Unfavorable weather and the strong dollar were likely factors for weak job growth in
March. Overall, there is still excess slack in the labor market. Growth in the manufacturing
sector has also softened. We believe the strong U.S. dollar and sluggish economic growth
abroad has dampened U.S. manufacturing trends. U.S. consumer confidence remains strong,
but consumer spending trends have underwhelmed. Housing data remains volatile but the
overall trajectory seems positive. There have been pockets of weakness in recent economic
data, but some of the factors for this weakness may be transitory (such as unfavorable weather
and the West Coast port delays).
The Federal Open Market Committee (FOMC) left policy rates unchanged at its March 17-18
meeting, without any dissenting votes. The Committee noted economic activity moderated and
the inflation rate declined further. The word "patient" (with regard to the timing of a potential
future rate hike)was removed from the policy statement but the Committee indicated a rate hike
at the next FOMC meeting in April is unlikely. The Fed left the door open for a possible rate hike
in June, but we believe the first rate hike is likely to occur later in the second half of this year.
Notably, the Fed expects to see further improvement in the labor market before it starts to raise
rates, which implies the Fed remains dissatisfied with current employment conditions. The
Committee also needs to be confident inflation will move back to its 2% target, before they raise
rates. With inflation low, we believe the Fed faces no urgency to begin raising rates. Even
though the Committee removed the word "patient" from its policy statement, we believe the
Fed's overall message was somewhat dovish, which makes a June rate hike unlikely, in our
view. We believe ongoing uncertainty about the timing of the Federal Reserve's first interest rate
hike will likely continue to fuel market volatility.
The yield curve flattened in March. Domestic economic data has recently softened, and the
timing of the first fed funds rate hike remains unclear. Meanwhile, the European Central Bank
continues to execute its bond-buying program and other global central banks are pursuing
highly accommodative monetary policies.
C/" CHANDLER
ASSET
MANAGEMENT
Consumer Prices
In February, overall Consumer Price Index (CPI) inflation was flat on a year-over-year basis
after being down 0.1% in January. Headline inflation has fallen sharply in recent months due to
a precipitous decline in energy prices. The year-over-year Core CPI (CPI less food and energy)
increased slightly to 1.7% in February from 1.6% in January.
Retail Sales
In February, retail sales rose 1.7% on a year-over-year basis, following a 3.6% gain in January.
On a month-over-month basis, retail sales declined 0.6% in February (below the consensus
forecast for a 0.3% increase) after declining 0.8% in January. Gasoline sales actually
rebounded in February after plunging in the prior month. However, auto sales declined 2.5% in
February after a 0.5% increase in January. Retail sales have disappointed over the past few
months, which is surprising since consumer confidence remains strong. Unfavorable weather
may have contributed to the weak February retail sales report.
Labor Market
Nonfarm payrolls rose by 126,000 in March, well below the consensus forecast of 245,000.
February and January payrolls were also revised down a net 69,000. Private payrolls rose by
129,000 in March, while government jobs declined by 3,000. The unemployment rate was
unchanged at 5.5%. The labor participation rate edged down to 62.7% in February from 62.8%.
Wages rose 0.3% (higher than expected), following a 0.1% increase in February. On a year-
over-year basis, wages rose 2.1% in March versus 2.0% in February. Job growth in weather-
sensitive sectors such as construction, and leisure & hospitality, were much weaker in March
than in previous months, which suggests unfavorable weather had a significant impact on the
overall March nonfarm payroll figure. There was also a sharp decline in manufacturing payrolls
in March which may be attributable to the strong U.S. dollar.
Housing Starts
Single-family housing starts fell 14.9% in February after declining 3.9% in January. Overall
housing starts (including single- and multi-family) dropped 17.0% in February, well below
expectations. Unfavorable weather may have contributed to the sharp drop in housing starts in
February.
3 Month 0.02 0.04 (0.02)
2 Year 0.56 0.67 (0.11)
3 Year 0.88 1.07 (0.19)
5 Year 1.37 1.65 (0.28)
7 Year 1.71 1.97 (0.26)
10 Year 1.92 2.17 (0.25)
30 Year 2.54 2.75 (0.21)
2
C/" CHANDLER
ASSET
MANAGEMENT
ECONOMIC INDICATOR CURRENT RELEASE PRIOR RELEASE ONE •
Trade Balance (35.4) $Bin FEB 15 (42.7) $Bin JAN 15 (41.9) $Bin FEB 14
GDP 2.2% DEC 14 5.0%SEP 14 3.5% DEC 13
Unemployment Rate 5.5% MAR 15 5.5%FEB 15 6.6%MAR 14
Prime Rate 3.25%MAR 15 3.25% FEB 15 3.25% MAR 14
CRB Index 211.9 MAR 15 224.1 FEB 15 304.67 MAR 14
Oil (West Texas Int.) $47.60 MAR 15 $49.76 FEB 15 $101.58 MAR 14
Consumer Price Index 0.0% FEB 15 (0.1)%JAN 15 1.1% FEB 14
(y/o/y)
Producer Price Index
(y/o/y) (3.4)% FEB 15 (3.1)%JAN 15 1.3%FEB 14
Dollar/EURO 1.07 MAR 15 1.12 FEB 15 1.38 MAR 14
Performance Attribution
Long-Term Portfolio
The Long-Term portfolio underperformed the benchmark during the quarter, generating a return
of 0.82% versus a return of 0.96% for the Bank of America Merrill Lynch 1-5 Year AAA-A US
Corporate and Government Index. Corporate spreads were close to unchanged during the
quarter while Agency spread tightened a small amount, modestly benefiting the portfolio. The
overall maturity term structure of the portfolio detracted from results as the Chandler team is
working to methodically reposition the portfolio to be more consistent with the 1-5 year
benchmark. In particular, the portfolio has light exposure at the three year maturity point and
outsized exposure in bonds with maturities greater than five years, relative to the benchmark,
which detracted from the relative performance of the portfolio during the quarter. The portfolio
also experienced a large liquidity needs at the end of January when the District withdrew $50.5
million from the portfolio.
Liquid Portfolio
The Liquid portfolio outperformed the benchmark during the quarter, generating a positive return
of 0.07% versus the three month Treasury Bill index returning 0.00%. Similar to the prior
quarter, the inclusion of securities with higher yields than the benchmark aided the performance
of the portfolio during the period. The portfolio experienced a $7.5 million liquidity need at the
end of January.
3
C/" CHANDLER
ASSET
MANAGEMENT
Economic Outlook
We continue to expect GDP to grow between 2.5-3.0% in 2015, compared to growth of 2.4% in
2014. Inflation remains below Federal Reserve targets, and with the price of oil poised to stay
in a relatively tight range through the summer months, it is unlikely inflation metrics will
accelerate in the near term. Although the Federal Reserve modestly lowered their economic
projections in March, the Fed's outlook still appears more constructive compared to the
consensus market view. We expect global central banks to continue to be a source of market
volatility as unconventional policies are adopted abroad and the Federal Reserve attempts to
normalize policy in the United States.
The dollar index improved by close to 9% during the first quarter, and dollar strength should
continue, although the rate of change is unlikely to be as significant in the coming quarter. The
strong dollar is starting to negatively impact corporate earnings, which we think will be a
contributing factor in causing the Federal Reserve to eventually lower their forecast closer to the
market in the coming quarters. We are anticipating a range bound market, and given the overall
strength in corporate balance sheets, we still think it makes sense to stay invested in the
corporate market.
Strategy
Strategy highlights for the Long-Term Portfolio in the coming months:
• Continue the process of reducing exposure to securities with maturities in excess of five
years to reposition the portfolio to be more consistent with the 1-5 year strategy.
• Continue to tactically add to the Corporate allocation to increase overall exposure closer to
25.0% of the portfolio.
• Improve the Agency term structure allocation via building out exposure between the two to
five year maturity points.
• Continue to build out the ABS allocation to between 7.0— 10.0% of the portfolio.
Strategy highlights for the Short-Term portfolio in coming months:
• Increase the duration of the portfolio to improve the total return opportunity for the
portfolio.
• Ladder the Agency Discount Note exposure to coincide with upcoming liquidity needs.
• Maintain a dedicated allocation to the US Treasury sector of at least 20.0% of the portfolio
on an ongoing basis.
4
ORCHANDLER
AWE
MANAGEMENT
Compliance Issues
�/" Orange County Sanitation District Long Term
March 31,2015
COMPLIANCE WITH INVESTMENT POLICY
Assefsm mgedbyChandlerAss tManagementam in/Nilcon"ance with State["and w1h/he nvesientpolcy
Category Standard Comment
Treasurylaues 5 years nomination maturity Does notmmpIr
Spia alonel 'AA*or better by of3 NRSR(r 30%maximum; 5%out; 5 Comples
years maluntyr, Includes only ADD. li and FC perCGC
US.Agonies 2096maxissner, 5yewsmadmmmadkrily Complies
US.Corporal(MM) 'A'err better long teen rating by 1 cf3 NRSROs; 30%modmm; Does not comW
5%mu issuer 5 years mw maturity
Municipal Secuddes 'A'err higher by l of3 PRSR0S;10%madmrn; 5%max issai Does not comW
5 yearsmaximan makinty
Asset Backed/CMOs/ 'AA'or better by l of3 NRSR0s; 'A'or higher issuer rating by l Does no[touristy"
Mortgage-backed of3 NRSR0s; 20%mammam; 5%max issuer(exitling
M ad agenceik 5 yea rs max maturity
NegaBede CDs 'A'err beaeron as long term debt by l of3 NR5R0s; 'A1N7'ar Complies
highest shod tam refings by 1 of 3 NRSROs; 30%maldmta[5%
max isser 5vaersmumationty
CDs/7DS 5%max issuer, 5 years max maturity Complies
BaNcersAcceptances A-1,or equvaled highest shod term rating by l of3 NRSR0S; Conpfes
40%maximum; 5%max issuer.180 days max mahrity
Conlreaiaf paper A-1,or equvalea by 1 of 3 NRSROS; 'A'or better by 1 of 3 Complies
pRSRCs.iflag term debt issued; 25%maximurn; 5%max
isser, 270 days max masrity,
MoneyMarketFuld Highest rating by2 of3 NR5R0s; 20%madman;10%max issuer Conplas
Rep rc ass Agreemstts 102%oofeleralastlaa Couples
Restarts Repatlrse 5116matdmnn,90 days max massity Couples
Agreements
lAF Not used byimeshrert achm Couples
Avg Duatlm NDUGeweed BOmails - (8O%00120%aftalwadnmrk) Complies
Mashoun Maerity, 5yeasmmimimmaturity Dos not runW
'as sense has th"y lTa(M)mulaes site m•Naam gross Mari 5Y erwngtxm(2)AM.0a®(3)Mos.danYdren(23)MBS,he
(Sl nxrarlpeb.lama(3)eeiPaas eve bra Rl aeeuaes. Al Mlhex ssanes Mae meaeo svnlN pWasmsaly.
•sail•sehra(2)A65,ar®(3)papby dbenly-Mrea(Zi)M65 pun y wh AAll assyra AtlJnmaj.SVHE(LYLSIP
a9611Mait)b rraea ANA reSpsVd/b/SEP am Fech warns line pofcY requres AA apses bydYmtae Nf6m0. Teva ssuam Maa
Mlelllra fan Prbas m•ggs.
5
ORCHANDLER
AWE
MANAGEMENT
C/" Orange County Sanitation District Liquid
Yamh 31,2015
COMPLIANCE WITH INVESTMENT POLICY
Asaetsmanaged byCha dlerAasetManagementam in full compirmoe wlh Slate Iawand riff,be invesanentpoliicy
Category St indard Comment
Teasurylssues l yeermapmum makrity, Mnman abcationofl0% Canples
3rpo eUmal 'AA'or better by l a3 NRSROs; 30%maxirarq 5%max; 1 Comples
year mffkffitf, twisters . IADB,BRD,and FC por CGC
IAS.Agencies 20%max issuer 1 maximum maturity Ctimples
us.Caparae(MM) 'A'or better log term rang by 1 of 3 NRSROs;30%owed xim; Compiles
5%mmbearer, t Warmax maturity
Asset Backed/CMOs "War better by 1 a3 NRSROs; 'A'orhigher iarerrallg by l Compiles
of3 NRSROs; 20%madrmm; 5%moor isser, Iym max
maturity
Ne)Wabe CDs 'A'ar better an its keg tarn debt by l a3 NR5R03; 'ALPt'a Compiles
highest shod term ratings by 1 of 3 NRSROs: 30%maxmum:5%
max is9nert year max makeity
CDs/7DS 5%max issuer, Iyou max malwily Canples
Bankers Aeceplances A4,or epivaert highest shod tern rating by l a3 NR5ROS; Complies
40%max mum; 5%max issuer,180 days max maturity
Commercial Paper A-1,or ectovaert by t of 3 NRSROS; 'A'or better by t 013 Complies
NRSROs,iFlag term debt issued; 25%maximurq 5%mar:
issuer, 270 days max makady
Money MarketFurel Fkghest rating by2 of3 NRSROs; 20%maxmum;10%max iswa Compiles
RepadYse Agreenvts 102%coleteraiatim Canples
Reverse Repsc ese 5%matimnn.g0 doys oem makxily Comples
Agreements
LAF Not used by investment adviser Complies
Prohibited WSYcipal Secaifies Complies
Prahibitetl a e Sec rities Can
Avg Daabut NatDemeed180tl ; Madurabcooflil2year Comples
Minimum hid rity 1 year maximum rrakrily Complies
6
ORCHANDLER
ASSET
MANAGEMENT
C/" OCSD Lehman Exposure
March 31.2015
COMPLIANCE WITH INVESTMENT POUCY
Assetsmanaged by Chand/erAssetManagementare in full compearce wth State lawand wth Ore mmsbnentpolicy
Category standard Comment
Ttessurylss. 5 years maximum malrity Complies
supratetiaul 'M'a better by l of3 NR5RCs; 30%maximaq 5%max; 5 Complies
years mahzitf, YrJtdes anly MDB,BRD.and FC perC.GC
U.S.Agercles 20%max issuer 5 years madmm maturity Can ies
U.S.Corporate(MM) 'A'a bederlmg term rating by 1 a3 NRSROs; 30%maximrn; Does not compM
5%max issuer, 5 years max maturity
Muimpal Searities 'A'a higher by l of3 NiSROS;10%maximum; 5%max inner, Canplies
5 years maximan maturity
Asset Backed/CMDs/ 'AA'a better by l of3 N2SRCs; 'A'or higher issuer rating by l Canples
Morigegebecked of3 NRSROs; 20%maximm; 5%max isser(exduding
MBSfgokt agencyY,S years max mabrnty
NsgpOeble CDs 'A'or better on Is long lerm debt by l of 3 NxSROs; 'AIIP1'a Canples
highest short term ratings by 1 of 3 NRSROs; 30%mrcdnluq 5%
mn issuer. 5 years max maturity
CDa/TDS 5%max issuer. 5 years max ffWwft Contples
BarirofsAaeptimoss A-1.or egdvaleal highest shed term rWrg by l of3 N7SRM Canples
40%maximm; 5%max issuer.180 days mex maturity
Commercial Paper A-1,or equvaLd by l of3 NRSROS; 'A'or better by 1093 Canples
NiSROs.iflalg term debt issued; 25%minimum; 5%max
issuer. 270 days max mawnty
MoneyMaaet Fuld Highest rating by2 of3 NiSROs; 20%maximum;10%max issuer Complex
Repurchase Agreements 102%caaatetatintiat Cam es
Reverse ideptadiase 5%maximm,90daysmurmehxity Canpties
Agreements
LAF 1 Nalused by investment adAsar compBes
Avg Dumb INDUDeweecI60munits - to l20%aae betc mart) contplies
Madman Malsity 5yeersmaximummatift Does neteollply'
'Around ems R mYm ice Wa(cap Ss Srm6)and$050 D ice atue tcusip 5 CUFF)•f4aar4dl awn Bran Jn,,s that was
p li®m by hie pm rn,er
ORCHANDLER
AWE
MANAGEMENT
Defaulted Bonds
MSD Leh.xn lxpwurn Holdings Report
A=UM#1011H 0.v of f31n.
9HOMiM .—n&o6em lmOlm CmNm 1a,1110 llmrzov NRINR 0.
uxq Egoue Dwx lw,elzw o.wx o.w N,aB zl xR ow
D�b9n1ran6
NO$
a1.0B3;e 0 NRINR
Ionl3ommon 3m[L 1046II.60 WI. 1360 0.00% 0.00 38 331 HR 0.00
ua wwowrz
52SESCI ) OdauM empalm O .l. se.6mm 1191x NRINR 46z
�112.asm 0 (.kl.n)
691H. I manb mN Db,W 3QU(WW WIN9ptl 1319,1106 7,11 199.W.N 16.18% NRINR 9668
Dinttl3]Lg8 1891 % Q1 .21B 96J NR
1I)912L)B "IA0000 16.00% NRINR 9Bdt
lobl 13 Cwponb I.00.000.00 WA Ln9,9311. 0.00% 000 M,639.R9.19) NR 0.00
1.OBd98.3B :306.28N 100.00% NRINR 93H
tt1i4LPOR1i CU0 1]048¢60 WA 1.6)Bd963B 0.00% 00 p.6
0
.669.011 NR 000
i UL NARNE(VALUE PLM A001UED 916R8921
8
C/" CHANDLER
ASSET
MANAGEMENT
Ratings
Orange County Sanitation District Long Term
March 31,2015 vs. December 31,2018
�Wox
Wox
q0%
W ex
xo9x
Wo%
■ nms iN��.
NN M A N XN
.In. 103% 764% 91% 09% 3,9%
IM1118 MA% 114% 19% 08% 0,8%
ew.re.SW Rv¢
Orange County Sanitation District Liquid
March 31,2015 vs. December 31,2018
RA%
NA%
WA{
WAt
WAY
100Y
OOi AA. M A .A Mt
■ mms 0 1m1m
AAA M A N an
wills 170% 708% 122% 00% 00%
IM1118 9.5% 75.6% 14.9% 0.0% 00%
Sa.a:s sv,
9
C/" CHANDLER
ASSET
MANAGEMENT
$600,000,000
Liquid Op mfing Manum
$500,000,000 •Long-Tenn Opereting Monies
$400,000,000
$300,000,000
$200,000,000
$100,000,000
fl
7� pQ
S ✓ Sa.
IV
HISTORICAL YIELD CURVE
4.00%
MAR 15
7�—f DEC 14
3.00% —n MAR 14
2.54%
2.00%
1.92%
1.71%
1 37%
0.14% 0.88%
0.02% � 0.56%
0.00%
0 0 ^ h h
10
C/" Orange County Sanitation District Liquid Portfolio Summary
Account#10282 As of 3/31/2015
PORTFOLIO CHARACTERISTICS I ACCOUNT • •
Average Duration 0.34 Beg.Values End Values Issuer %Portfolio
as of Willis as of 3/31/15 Government of United States 26.3%
Average Coupon 0.56% Market Value 49,345,809 49,401,774 Federal National Mortgage Assoc 12.2%
Average Purchase YTM 0.21 % Accrued Interest 107,892 59,258 Federal Home Loan Mortgage Corp 11.9%
Average Market YTM 0.19% Total Market Value 49,453,702 49,461,032 Federal Home Loan Bank 11.2%
Average S&P/Moody Rating AA+/Aal Income Earned 9,650 8,262 Drefus Treasury MMKT FD 521 8.9%
Average Final Maturity 0.35 yrs COn1/WD 0 Federal Farm Credit Bank 8.1 %
Average Life 0.30 yrs Par 49,259,603 49,332.184 Caterpillar Inc 4.1 %
Book Value 49,342,710 49,399605 Deere&Company 2.0%
Cost Value 49,412,805 49,440:650 84.8%
40% 39.1% FA
US (70 8%)
(16.3 Corporate
16.3%) US 314%
Treasury 30% 2 4%
Money (26.3%)
Market
Fund
FI r— 20%
(8.9%)
I
Ca mi rnmaal'
Paper 10%
(5.0%)
A9.y % 0-.25 25-s .5-1 1-1.6 1.6-2 2-2.5 26-3 3+
(43.4%) AAA A
Washy(Yrs) (17.0%) (12.2%)
Chandler Asaet Management-CONFIDENTIAL Page 1 Execuggn Tina:4I81201512'.58:59 PM
C/" Orange County Sanitation District Long Term Portfolio Summary
Account#10268 As of 3/31/2015
Average Duration 2.56 Beg.Values End Values Issuer %Portfolio
s of 2/28/15 as of 3131115 Government of United States 47.7%
Average Coupon 1.32% Market Value 384,104,965 385,381,101 Federal National Mortgage Assoc 7.3%
Average Purchase YTM 1.20% Accrued Interest 1,071,662 1,046,212 Federal Home Loan Mortgage Corp 7.1 %
Average Market YTM 0.91 % Total Market Value 385,176,627 386,427,313 Federal Home Loan Bank 4.6%
Average S&P/Moody Rating AA,,/Aal Income Earned 355,815 377,700 Bank of America Corp 2.1 %
Average Final Maturity 3.13 yrs COnt/WD -30,461 Toyota ABS 2.0%
Average Life 2.73 yrs Par 378,348,597 379,357,827 Bank of Tokyo-Mit UFJ 1.9%
Book Value 380,117,340 381,068,350 Toyota Motor Corp 1.9%
Cost Value 381,085,550 382,055,370 74.6%
• - • • MATURITY DISTRIBUTION CREDIT
US 30% AA
Corporate CS 27.0% (764%)
Supmrstional Treasury 26%
(13%) (477%) BBB
(0.9%)
Municipal 20% rn%
Bonds 151% NR
5
Money ABS % (3.0%)
Market (5.9%)
10% 8.0% 85% ea% A
MBS ,. 9.0% 8.a% (9.1%)
(1A%) 5% IN
Commercial
Paper Agency %
(17.5%) 0-.25 25-s .5-1 1-2 2-3 3-4 4-5 5v
WE AAA
(0.6%) MaW"(Yrs) (10.7%)
Chandler Aseet Management-CONFIDENTIAL Pagel Esacugan Time:416 01512'.26:52 PM
Orange County Sanitation District
Investment Transactions and Balances in the
State of California Local Agency Investment Fund
March 31, 2015
Par Value Book Value Market Value Rate Yield
Balance
March 1,2015 $42,182,882 $42,182,882 $42,182,882 0.28 0.28
Deposits:
3/12/2015 11,800,000 11,800,000 11,800,000 0.28 0.28
Total Deposits 11,800,000 11,800,000 11,800,000 0.28 0.28
Withdrawals:
3/4/2015 (4,600,000) (4,600,000) (4,600,000) 0.28 0.28
3/18/2015 (2,700,000) (2,700,000) (2,700,000) 0.28 0.28
3/26/2015 (2,500,000) (2,500,000) (2,500,000) 0.28 0.28
Total Withdrawals (9,800,000) (9,800,000) (9,800,000) 0.28 0.28
Balance
March 31,2015 $44,182,882 $44,182,882 $",182,882 0.28 0.28
Asset Summary Report M: GLS251
Base Type Cumen4 : USD
BNY MELLON by Asset Te with Sectors Alternate Base Currency:
Exchange Rate:
OCS UQ OP CHANDLER-OCSF07511302 3 31 2015 Status: FINAL
Net Unrealized
Cost Market Value % of Gain/Loss
Description Shares Par Base Base Total Base
CASH Is CASH EQUFVALENTS
U.S.DOLLAR
COMMERCIAL PAPER-DISCOUNT 2,500,000.000 2,496,248.89 2,496,24&99 5.05% 0.00
FEDERAL HOME LOAN BANK- 1 YR OR LESS 2,000,000.000 1,999,783.34 1,999,783.34 4.04% 0.00
FEDERAL HOME LOAN MORTGAGES- 1 YR OR LESS 3,900,000.000 3,898,255.81 3,898,255.81 4.88% 0.00
SHORT TERM INVESTMENT FUNDS(US REGULATED) 4,424,183.840 4,424,183.84 4,424,18&M 8.94% 0.00
INTEREST 61,325.74 61,325.74 0.12% 0.00
U.B.DOLLAR 12,924,183.940 12,879,797.62 12,879,797.62 26.04% 0.00
CASH&CASH EQUIVALENTS 12,824,193.840 12,879,79T.62 12,879,797.62 26.04% 0.00
FCMD INCOME SECURITIES
U.S.DOLLAR
BANKING&FINANCE 5,008,000.000 5,023,580.64 5,018,530.49 10.15% -5,050.16
INDUSTRW 1,000,000.000 1,003,280.00 1,001,630.00 2.03% -1,650.00
RETAIL 1,000,000.000 1,001,340.00 1,001,320.00 2.02% -20.00
TECHNOLOGY 1,000,000.000 1,001,880.00 1,000,+IxIm 2.02% -1,480.00
US AGENCIES 15,500,000,000 15,577,132.00 15,550,920.00 31.44% -26,212.00
US GOVERNMENTS 13,000,000.000 13,014,965.43 13,003,630.00 26.30% -6,335.43
U.B.DOLLAR 36,508,000.000 36,622,178.07 36,581,430.48 73.96% -40,747.59
FIXED INCOME SECURITIES 36,508,000.000 36,622,178.07 36,581,430.48 73.961/6 -4Q744.59
TOTAL ASSETS-BASE: 49,332,183.840 49,501,975.69 49,461,228.10 100.00% -40,747.59
411612015 4:45:25PM EDT 1 Workbench
Asset Summary Report M: GL8251
Base Type Cumenoy: USD
BNY MELLON by Asset Te with Sectors Altercate Base Currency:
ExcK nge Rate:
OCS LONG CHANDLER-OCSF07522202 3 31 2015 Status: FINAL
Net UnreaBzed
Cost Market Value % of Gain/Loss
Description Shares Par Base Base Total Base
CASH&CASH EQUIVALENTS
U.S.DOLLAR
CASH EQUIVALENTS 104,812.500 104,812.50 44,283.28 0.01% -60,529.22
COMMERCIAL PAPER-DISCOUNT 16,500,000.000 16,468,612.53 16,468,612.53 4.26% 0.00
FEDERAL HOME LOAN BANK- 1 YR OR LESS 10,000,000.000 9,998,053.60 9,998,053.60 2.58% 0.00
FEDERAL HOME LOAN MORTGAGES- 1 YR OR LESS 10,000,000.000 9,993,194.40 9,993,194.40 2.58% 0.00
FNMA ISSUES- 1 YR OR LESS 19,800,000.000 19,790,379.99 19,790,379.99 5.12% 0.00
SHORT TERM INVESTMENT FUNDS(US REGULATED) 6,752,991.400 6,752,991.40 6,752,991.40 1.75% 0.00
CASH -1,449.16 -1,449A6 0.00% 0.00
PENDING TRADES 2,264.66 2,264.66 0.00% 0.00
INTEREST 1,063,350.59 1,063,350.59 0.27% 0.00
U.B.DOLLAR 63,157,803.900 64,172,210.51 64,111,681.29 16.57% -60,529.22
CASH&CASH EQUIVALENTS 63,157,803.900 64,172,210.51 64,111,681.29 16.ST% -60,529.22
FIXED INCOME SECURITIES
U.S.DOLLAR
ABS-CAR LOANS 11,595,000.000 11,573,987.69 11,599,148.05 3.00% 25,160.36
ASS-CREDIT CARDS 4,000,000.000 4,001,406.25 4,001,960.00 1.03% 553.75
ADS-EQUIPMENT 6,955,000.000 6,956,439.14 6,966,686.55 1.80% 10,247.41
ABS-HOME EQUITY 314,475.640 261,002.58 303,045.14 0.08% 42,042.56
ASS-SMALL BUSINESS ADMINISTRATION 155,329.590 155,329.59 167,476.36 0.04% 12,146.77
ADS-STUDENT LOANS 48,439.320 48,242.79 49,668.71 0.01% 1,425.92
BANKING Is FINANCE 47,400,000.000 48,985,753.58 47,395,908.00 12.25% -1,589,845.58
COLLATERALIZED MORTGAGE OBLIGATION COMM/( 237,007.680 237,618.72 237,266.02 0.06% -352.70
FHLMC MULTICLASS 2,163,646.400 2,370,788.79 2,450,334A2 0.63% 79,545.33
FHLMC POOLS 2,798.140 2,729.95 2,901.59 0.00% 171.64
FNMA POOLS 2,446,221.290 2,571,718.29 2,693,371.76 0.70% 121,653.56
FNMA REMIC 774,613.570 764,738.29 779,619.98 0.20% 14,881.69
FOOD BEVERAGE&TOBACCO 1,600,000,000 1,854,144.00 1,807,648.00 0.47% -46,496.00
GNMA MULTI FAMILY POOLS 310,166.330 310,162.19 321,487.21 0.08% 11,325.02
GNMA REMIC 58,506.920 58,506.92 58,935.78 0.02% 428.86
HEALTH CARE 5,300,000,000 5,327,727.00 5,439,379.00 1.41% 111,652.00
INSURANCE 500,000.000 499,630.00 505,080.00 0.13% 5,450.00
411612015 4:48:07PM EDT 1 Workbench
Asset Summary Report M: GL8251
Base Type rn Cumenoy: USD
BNY MELLON by Asset Te with Sectors Alteate Base Currency:
Exchange Rate:
OCS LONG CHANDLER-OCSF07522202 3 31 2015 Status: FINAL
Net UnreaBzed
Cost Market Value a/o of Gain/Loss
Description Aff Shares Par Base Base Total 8
OIL&GAS 6,000,000.000 5,963,540.00 6,001,12000 1.55% 37,580.00
REITS 1,000,000,000 996,050.00 1,106,890.00 0,29% 110,840.00
SUPRANATIONAL ISSUES 5,000,000.000 5,020,700.00 5,019,000.00 1.30% -1,700.00
TAXABLE MUNICIPALS 9,240,000.000 9,272,383.89 10,490,107.60 2.71% 1,217,723.71
TECHNOLOGY 2,000,000,000 2,008,280.00 2,010,080.00 0,52% 1,800.00
U.S.TIPS 13,490,368.000 13,380,526.71 13,519,909.66 3.49% 139,382.95
US AGENCIES 27,500,000.000 27,499,000.00 27,646,500.00 7.15% 147,500.00
US GOVERNMENTS 169,200,000,000 169,089,992.36 170,529,798.00 44,08% 1,439,805.64
UTILITY-ELECTRIC 1,000,000.000 999,810.00 1,007,930.00 0.26% 8,120.00
WHOLE LOAN-CIAO-COLLATERALIZED MTG OBLIG 613,262.910 613,260.12 614,863.53 0.16% 1,603.41
U.S.DOLLAR 318,904,835.790 320,923,469.76 322,726,115.06 83.43% 1,902,646.30
FIXED INCOME SECURITIES 318,904,835.790 320,823,468.76 322,726,115.06 83.43% 1,902,646.30
TOTAL ASSETS-BASE: 382,062,639.690 384,995,679.27 386,837,796.35 100.00% 1,842,117.08
411612015 4:48:07PM EDT 2 Workbench
Asset SummaryReport M: GL8251
ease Currency: USD
BNY MELLON by Asset type with Sectors A[e nete Ba.eExchange Rate:
ESCROWACCOURT-OCSFOT555502 3 31 2015 Status: FINAL
Net Unrealized
Coat Market Value % of Gain/Loss
Description Shares Par Base Base Total Base
CASH&CASH EQUNALENTS
U.B.DOLLAR
INTEREST 6,738.63 6,93&63 0.19% 0.00
F=D MCOIdE SECURITIES
U.B.DOLLAR
US GOVERNMENTS 3,594,000.000 3,603,596.33 3,594,000.00 99.81% -9,596.33
TOTAL ASSETS-BASE: 3,594,000.000 3,610,334.96 3,600,738.63 100.00% .9,596.33
411612015 4:49:50PM EDT 1 Workbench
�w Yield AaalysiE Report ID: RAM234
i
Base Currevcy:
BNY MELLON
OCSP07511102 3/31/2015
Liquid Oper•Pimco
Units Held YTM/ Current Moody s Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
CASH &TEMPORARY
Sum of Account Receivables - 0.00
SUMRECV 61,326
AGENCY
2,000,000.00 FEDERAL HOME LN BE CONS DISC 0.02 Aaa 100.00 1,999,783 15.60 0.04
313384SI4 MAT 04/15/2015 1,999,783 4.04
2,000,000.00 FEDERAL HOME LN MTG CORP DISC 0.12 Asa 99.95 1,998,833 15.59 0.42
313396KZ5 0.000%08/28/2015 DD 08/28/14 1,998,833 4.04
1,000,000.00 FEDERAL HOME LN MTG CORP DISC 0.19 Airs 99.95 999,70,1 7.80 0.31
3133WM6 MAT 07/23/2015 999,70,1 2.02
COMMERCIAL PAPER
1,000,000.00 TOYOTA MTR CR CP DISC 0.27 P-1 99.90 998,628 7.09 0.39
89233HVB7 08/11/2015 998,628 2.02
1,000,000.00 BANK TOKTO-MITSUB DISC 0.27 0.27 P-1 99.90 999,020 7.79 0.36
06538=3 06/29/2015 999,020 2.02
500,000.00 PNC BANK N A DISC 0.38 P-1 99.84 498,601 3.89 0.43
6934910W22 09/02/2015 498,601 L01
OTHER
4,424,183.84 DREYFUS TREAS✓b AGY CSH CSH MG - A. 4,424,184 34.51 0.08
996085247 VAR RT 12/31/2049 DD 04/09/97 4,424,184 8.94
TREASURIES AND AGENCIES 0
900,000.00 FEDERAL HOME LN MTG CORP DISC 0.00 Aaa 100.00 899,718 7.02 0.00
313396DU4 MAT 04/01/2015 899,718 1.82
411612015 4:58:36PM EDT 1 Source:The Bank of New York Malem Corpomtio i
�W Yield Aaalysis Report ID: RAM234
i
Base Currency: USD
BNY MELLON
OCSPO7511102 3/31/2015
Liquid Oiler•Amcv
Units Held YTM/ Current Moody s Market Total Cost %Type Option
Security ID Security Description can(EOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
TOTAL:CASH&TEMPORARY 0.14 0.06 12,818,472 100.00 0.20
12,879,798
FIXED INCOME
AGENCIES&OTHER GOUT GEL
2,000,000.00 FEDERAL HOME LN MTG CORP 0.07 0.50 Asa 100.02 2,002,184 5.46 0.04
3137EADDS 0.500%04/17/2015 DO 02/21/12 2,000,380 4.04
2,000,000.00 FEDERAL NATL MTG ASSN 0.11 0.50 Ara 100.06 2,002,740 5.46 0.16
3135GOKM4 0.500%05/20/2015 DO 04/19/12 2,001,220 4.05
2,000,000.00 FEDERAL FARM CR BE CONS BD 0.14 0.50 Asa 100.08 2,003,400 5.46 0.23
3133EARQ3 0.500%06/23/2015 DO 05/23/12 2,001,620 4.05
2,000,000.00 FEDERAL NATL MTG ASSN 0.15 0.50 Ara 100.09 2,003,408 5.46 0.25
3135GOLNI 0.500%07/02/2015 DD 05/21/12 2,001,760 4.05
2,000,000.00 FEDERAL NATL MTG ASSN 0.20 1.98 Aea 100.85 2,025,660 5.50 0.47
31398A3T7 2.000%09/21/2015 DD 09/21/10 2,016,940 4.08
2,000,000.00 FEDERAL HOME LN BK CONS BD 0.23 0.50 Ara 100.19 2,003,320 5.40 0.63
313380L96 0.500% 11/20/2015 DD 08/23/12 2,003,480 4.05
1,500,000.00 FEDERAL HOME LN BK CONS BD 0.24 1.94 Aaa 100.69 1,515,240 4.12 0.44
31337OJB5 1.750%09/11/2015 DO 08/04/10 11510,080 3.05
2,000,000.00 FEDERAL FARM CR BK CONS BD 0.26 1.49 Aaa 100.77 2,021,190 5.50 0.62
31331J2S1 L500% 11/16/2015 DD 11/15/10 2,015,440 4.07
BANES 6 FINANCE
1,000,000.00 CATERPILLAR FINANCIAL SERVICES 0.18 1.10 A2 100.15 1,003,340 2.73 0.16
14912L5D9 1.100%05/29/2015 DD 05/30/12 1,001,480 2.02
411612015 4:58:36PM EDT 2 Source:The BurA of New York Melton Ccrpomfioo
�W Yield AaalysiR Report ID: RAM234
i
Base Currency: USD
BNY MELLON
OCSP07511102 3/31/2015
Liquid Oper•Amco
Units Held YTM/ Current Moody s Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
1,008,000.00 JOHN DEERE CAPITAL CORP 0.39 0.70 A2 100.13 1,009,341 2.75 OA2
24422ERV3 0.700%09/04/2015 DO 09/07/12 1,009,320 2.04
1.000,000.00 GENERAL ELECTRIC CAPITAL CORP U.42 1.62 Al 100.30 1,005,920 2.74 0.25
36962G5Z3 1.625%07/02/2015 DD 07/02/12 1,003,030 2.03
1,000,000.00 CHARLES SCHWAB CORD/THE 0.51 0.85 A2 100.23 1,002,700 2.74 0.67
808513AH8 0.850% 12/04/2015 DO 12/06/12 1,002,280 2.03
1,000,000.00 JPMORGAN CHASE&CO 0.86 1.12 A3 100.24 1,002,380 2.74 0.90
46623EJU4 1.125%02/26/2016 DD 02/26/13 1,002,420 2.03
INDUSTRIALS
1,000,000.00 CATERPILLAR INC 0.26 0.95 A2 100.16 1,003,280 2.73 0.24
149123BY6 0.950%06/26/2015 DD 06/26/12 1,001,630 2.03
1,000,000.00 INTERNATIONAL BUSINESS MACHINE 0.39 0.75 Aa3 100.04 11001,990 2.73 0.11
459200HD6 0.750%05/11/2015 DD 05/11/12 1,000,400 2.02
1,000,000.00 COSTCO WHOLESALE CORP 0.46 0.65 Al 100.13 1,001,340 2.73 0.68
22160KAD7 0.650% 12/07/2015 DD 12/07/12 1,001,320 2.02
TRBABURIBB
2,000,000.00 U S TREASURY NOTE 0.07 0.37 Asa 100.06 2,002,507 5.46 0.21
912828STA 0.375%06/15/2015 DD 06/15/12 2,001,260 4.05
3,500,000.00 U S TREASURY NOTE 0.13 0,25 Asa 100.05 3,502,883 9.56 GAS
912828TK6 0.250%08/15/2015 DD 08/15/12 3,501,645 7.08
3,500,000.00 USTREASURY NOTE 0.16 0.25 Asa 100.05 3,503,156 9.56 0.50
912828VY3 0.250%09/30/2015 DD 09/30/13 3,501,645 7.08
4,000,000.00 U S TREASURY NOTE 0.21 0.37 Ace. 100.10 4,006,420 10.93 0.62
912828TX8 0.3759% 11/15/2015 DD 11/15/12 4,004,080 8.10
411612015 4:58:36PM EDT 3 Source:The BurA of New York Mellon Corpomfioo
�W Yield Aaalysis Report ID: RAM234
i
Base Currency: U8D
BNY MELLON
OCSP07511102 3/31/2015
Liquid Oiler,Amco
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description Call(EOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
TOTAL:F=D INCOME 0.22 0.72 36,622,178 100.00 0.41
36,581,430
TOTAL: Liquid Oper-Pimco 0.21 0.64 49,440,650 100.00 0.35
49,461,228
411612015 4:58:36PM EDT 4 Source:The Bank of New York Melton Corpomfioo
�w Yield Aaalysis Report ID: RAM234
i
Base Currevcy:
BNY MELLON
OCSP07522202 3/31/2015
Long Term Oper-Pimco
Units Held YTM/ Current Moody s Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
CASH &TEMPORARY
Sum of Account Receivables - 0.00
SUMRECV 1,065,615
AGENCY
10,000,000.00 FEDERAL NATL MTG ASSN DISC 0.13 Asa 99.94 9,994,233 15.85 0.43
313588LDS 0.000%09/01/2015 DD 9/08/2014 9,994,233 2.59
COMMERCW PAPER
10,000,000.00 FEDERAL HOME LN BE CONS DISC 0.05 Asa 100.00 9,998,054 15.85 0.08
313384FA2 MAT 05/01/2015 9,998,054 2.58
10,000,000.00 FEDERAL HOME LN MTG CORP DISC 0.13 Asa 99.94 9,993,194 15.85 0.46
313396LP6 0.0000A 09/11/2015 DD 09/11/201 9,993,194 2.58
2,000,000.00 TOYOTA MTR CR CP DISC 0.26 P-1 99.89 1,997,256 3.10 0.44
89233HW42 09/04/2015 1,997,256 0.52
7,500,000.00 BANK TOKYO-MITSUB DISC 0.27 0.27 P-1 99.90 7,490,938 11.88 0.36
06538=3 06/29/2015 7,490,938 1.94
7,000,000.00 PNC BANK N A DISC 0.38 P-1 99.84 6,980,419 11.00 0.43
69349KW22 09/02/2015 6,980,419 1.80
OTHER
104,812.50 SLH PROXY LONG EXPOSURE - - 104,813 0.07 -
99WAEU30 SLHOPNTA4 44,283 0.01
6,752,991.40 DREYFUS TREAS&AGY CSH CSH MG - Asa 6,752,991 10.01 0.08
996085247 VAR RT 12/31/2049 DD 04/09/97 6,752,991 1.75
TREASURIES AND AGENCIES O
411612015 4:58:36PM EDT 5 Source:The Bank of New York Mellen Corpomfion
�W Yield AaalysiH Report ID: RAM234
i
Base Currency: U8D
BNY MELLON
OCIIM7522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
9,800,000.00 FEDERAL NATL MTG ASSN DISC 0.03 Aaa 100.00 9,796,147 15.53 0.04
313588EK7 0.000%04/16/2015 DD 04/21/201 9,796,147 2.53
US CASH
1.00 USD(UNITED STATES 130 L ) - - 0 0.00 -
NA9123459 GL PAYABLES RECEIVABLES 0 0.00
1.00 US CASH - - 0 0.00 -
999999USD GL PURE CASH -1,449 0.00
TOTAL:CASH&TEMPORARY 0.15 0.08 63,108,044 100.00 0.27
64,111,681
FIXED INCOME
AGENCIES&OTHER GOUT OBL
5,000,000.00 FEDERAL HOME LN MTG CORD 0.59 0.50 Ara 99.83 4,991,050 1.54 1A1
3137EADU0 0.500%O1/27/2017 DO 01/16/15 4,991,400 1.29
5,000,000.00 FEDERAL HOME LN MTG CORP 0.81 0.75 Aaa 99.82 4,967,500 1.54 2.75
3137EADN6 0.750%01/12/2018 DD 11/21/12 4,991,150 1.29
5,000,000.00 FEDERAL HOME LN MTG CORP 0.93 0.88 Aea 99.84 4,974,I00 1.54 2.90
3137EADP1 0.875%03/07/2018 DD 01/17/13 4,991,950 1.29
7,500,000.00 FEDERAL HOME LN BE CONS BD 0.95 1.36 Aaa 101.22 7,544,850 2.34 2.89
313378A43 1.375%03/09/2018 DO 02/13/12 7,591,800 1.96
5,000,000.00 FEDERAL NATL MTG ASSN 1.38 1.72 Ass. 101.60 5,021,500 1.57 4.30
3135GOZG1 1.750%09/12/2019 DD 07/28/14 5,080,200 1.31
BAS RA is FDPMCE
6,300,000.00 WELLS FARGO BANK NA 0.25 0.75 Aaa 100.15 6,297,795 1.95 0.30
94985115F7 0.750%07/20/2015 DO 07/29/13 6,309,513 1.63
411612015 4:58:36PM EDT 6 Source:The BurA of New York Medan Ccrpomnon
�W Yield Aaalysis Report 1D: RAM234
i
Base Currency: U8D
BNY MELLON
0CSF07522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
5,200,000.00 TOYOTA MOTOR CREDIT CORP G32 0.55 Aa3 100.25 5,200,000 1.61 1.13
89236TAK1 VAR RT 05/17/2016 DD 05/17/13 5,213,208 1.35
500,000.00 WE FARGO BANK NA U.57 0.53 Aa3 99.91 500,000 0.15 -
94988J2LO VAR RT 06/15/2017DD06/12/14 499,525 0.13
500,000.00 AFLAC INC 0.71 3.42 A3 101.02 499,630 0.16 0.37
001055AE2 3.450%08/15/2015 DD 08/09/10 505,080 0.13
2,000,000.00 GOLDMAN SACHS GROUP INC/THE 0.74 0.71 Beal 99.97 1,895,068 0.62 0.22
38141GEG5 VAR RP 03/22/2016 DD 03/22/06 1,999,460 0.52
600,000.00 BANK OF AMERICA NA 0.76 G68 A2 99.83 600,000 0.19 0.11
06050TLX8 VAR RP 05/08/2017DD05/08/14 598,980 0.15
200,000.00 CITIGROUP INC 0.90 1.25 Baal 100.28 198,352 0.06 0.78
172967GGO 1.250%01/15/2016 DD 01/10/13 200,554 0.05
700,000.00 MORGAN STANLEY 1.56 S98 Baal 100.33 737,361 0.22 R07
61747YCE3 6.000%04/28/2015 DD 04/28/08 702,310 0.18
3,000,000.00 HSBC USA INC 1.62 1.62 A2 100.00 3,003,290 0.93 2.72
40428HPH9 1.625%01/16/2018 DD 12/20/12 3,000,090 0.79
2,900,000.00 AMERICAN EXPRESS CO 1.63 6.06 A3 115.53 3,377,386 1.03 293
025816AY5 7.000%03/19/2018 DO 03/19/08 3,350,429 0.87
600,000.00 GOLDMAN SACHS GROUP INC/THE 1.77 5.34 Baal 111.35 692,806 0.21 2.59
38141GFG4 5.950%01/18/2018 DD 01/18/08 668,082 0.17
1,200,000.00 JOHN DEERE CAPITAL CORP 1.81 2.25 A2 102.10 1,204,956 0.38 4.26
24422ESS9 2.300,09/16/2019 DO 09/15/14 1,225,224 0.32
3,200,000.00 BEAR STEARNS COS LLC/THE 1.81 4.27 A3 108.91 3,523,520 1.08 3.02
073902CD8 4.650%07/02/2018 DD 06/25/03 3,485,216 0.90
411612015 4:58:36PM EDT 7 Source:The BaNc of New York Mellon Corpomfioo
�W Yield Aaalysis Report 1D: RAM234
i
Base Currency: U5D
BNY MELLON
00SP07522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
3,800,000.00 BANK OF AMERICA CORP L89 5.23 Baal 110.04 4,334,014 1.29 2A6
060505DP6 5.950% 12/01/2017 DD 12/04/07 4,181,330 1.08
5.000,000.00 GENERAL ELECTRIC CAPITAL CORD 1.96 2.18 Al 101.10 5,014,950 1.56 4.54
36962G7MO 2.200%01/09/2020 DO 01/09/15 5,055,150 1.31
2,000,000.00 JPMORGAN CHASE&CO 2.20 2.25 A3 100.21 1,994,880 0.62 4.56
46625HKA7 2.250%01/23/2020 DD 01/23/15 2,004,280 0.52
2,800,000.00 BANK OF AMERICA CORP 2.24 5.92 Baal 116.04 3,417,664 1.00 3.21
590188JN9 6.895% 11/15/2018 DO 11/24/98 3,249,092 0.84
1,000,000.00 SIMON PROPERTY GROUP LP 2.42 &95 A2 110.69 996,050 0.34 5.30
828809CF2 4.395%03/01/2021 DD 08/16/10 11106,890 0.29
2,800,000.00 MORGAN STANLEY 2.73 4.94 Baa2 116.01 3,200,848 1.00 5.45
61747WAM 5.500%07/28/2021 DD 07/28/11 3,248,196 0.84
2,000,000.00 LEHMAN BRTH HLD ESC 148.98 - 14.25 1,366,719 0.09 -
525ESCUY6 0.000% 12/30/2016 DD 10/24/05 285,000 0.07
600,000.00 ESC LEHMAN BRTH HLD ESCROW - - 14.38 406,605 0.03 -
525ESCIB7 0.000%01/24/2013 DD 01/22/08 86,250 0.02
CARDS
4,000,000.00 CHASE ISSUANCE TRUST AS AS 0.46 0.59 NR 100.05 4,001,406 1.24 0.37
161571FL3 0.590%08/15/2017 DD 09/13/12 4,001,960 1.03
CARS
3,595,000.00 TOYOTA AUTO RECEIVABLES 2 A A3 0.00 1.12 Aaa 100.32 3,594,456 1.11 -
89236WAC2 1.120%02/15/2019 DD 03/04/15 3,606,468 0.93
4,000,000.00 TOYOTA AUTO RECEIVABLES 2 A A3 0.71 0.67 Aaa 99.94 3,991,719 1.23 1.23
89231MAC9 0.610% 12/15/2017 DO 03/19/14 3,997,680 1.03
411612015 4:58:36PM EDT 8 Source:The Back of New York Mellon Corpomfioo
�W Yield Aaalysis Report ID: RAM234
i
Base Currency: USD
BNY MELLON
0CSF07522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description Call(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
4,000,000.00 HONDA AUTO RECEWABLE5201 A3 0,78 0.67 Aaa 99.88 3,987,813 1.23 1.10
43813JAC9 0.670% 11/21/2017 DD 02/27/14 31995,000 1.03
COMMERCIAL MORTOAOES
237,007.68 NCUA GUARANTEED NOTES TR C1 Al 0.99 1.60 - 100.11 237,619 0.07 0.18
62888XAA2 1N00% 10/29/2020 DO 11/10/10 237,266 0.06
EQUIPMENT LOANS
2,955,000.00 GE EQUIPMENT TRANSPORTATI I A3 0.00 1.28 A. 100.14 2,954,564 0.91 -
36164EAC9 1.280%02/25/2019 DD 03/04/15 2,959,167 0.77
4,000,000.00 JOHN DEERE OWNER TRUST 20 B A3 0.89 1.07 Aaa 100.19 4,001,975 1.24 1.04
477877AD6 1.070% 11/15/2018 DO 09/03/14 4,007,520 1.04
FANNIE MAE REMIC
198,879.40 FNMA GTD REMIC P/T 07-114 A6 0.00 0.38 A. 98.73 189,184 0.06 -
31396X3Q5 VAR RT 10/27/2037 DD 11/30/07 196,344 0.05
575,734.17 FNMA GM REMIC P/T 11-3 FA 0.49 0.84 Aaa 101.31 575,554 0.18 0.25
31397QRE0 VAR RT 02/25/2041 DD 01/25/11 583,276 0.15
FHLMC
2,798.14 FHLMC POOL#78-6064 1.05 2.22 A. 103.70 2,730 0.00 0.80
31348SWZ3 VAR RT 01/01/2028 DD 12/01/97 2,902 0.00
FNMA
237,564.34 FNMA POOL#0823358 0.70 2.15 Aso. 106.80 235,708 0.08 0.86
31406XWT5 VAR RT 02/01/2035 DD 04/01/05 253,712 0.07
50,500.16 FNMA POOL#0826080 1.60 4.49 Ara 111.29 54,288 0.02 L83
31407BXH7 5.000%07/01/2035 DD 06/01/05 56,203 0.01
288,675.23 FNMA POOL#0357969 Lal 4.50 Aaa 111.21 310,326 0.10 1.86
31376ET22 5.000%09/01/2035 DD 09/01/05 321,021 0.08
411612015 4:58:36PM EDT 9 Source:The Bwtk of New York Mellon Cor rrwro
�W Yield Aaalysis Report ID: RAM234
i
Base Currency: U5D
BNY MELLON
0CSF07522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
272,698.86 FNMA POOL#0745580 1,84 4.50 Aaa 111.23 293,151 0.09 2.04
31403DJZ3 5.000%06/O1/2036 DD 05/O1/06 303,323 0.08
372,547.84 FNMA POOL#0466397 1.88 3.16 Ara 10744 364,486 0.12 4.89
31381PDA3 3.400% 11/01/2020 DO 11/01/10 400,262 0.10
551,845.38 FNMA PO0L#0888336 1.90 4.50 Aaa 111.20 593,234 0.19 2.20
31410F4V4 5.000%07/O1/2036 DD 04/O1/07 613,658 0.16
533,541.45 FNMA PO0L#0815971 1.91 4.49 Ara 111.28 573,557 0.18 2.06
31406PQYB 5.000%03/O1/2035 DO 03/O1/05 593,720 0.15
7,075.56 FNMA PO0L#0748678 2.00 4.50 Aaa 111.07 7,606 0.00 2.37
31403GXF4 5.000% 10/O1/2033 DD 10/O1/03 7,859 0.00
31,508.45 FNMA PO0L a0AL0869 2.04 4.13 Aaa 108.97 33,323 0.01 2.83
3138EG6F6 4.500%06/O1/2029 DD 09/O1/11 34,336 0.01
50,075.59 FNMA POOL#0257179 2.06 4.13 Aaa 109.03 52,960 0.02 3A6
31371NUC7 4.500%04/O1/2028 DD 03/O1/08 54,599 0.01
50,188.43 FNMA PO0LAOMA0022 2.08 4.13 Aaa 108.95 53,079 0.02 2.94
31417YAY3 4.500%04/O1/2029 DD 03/O1/09 54,681 0.01
FRBDDIB MAC MDLTICLASS
86,247.75 FHLMC MULTICLASS MTG E3 A 0.82 2.89 Aaa 103.76 86,338 0.03 0.69
3133TCE95 VAR RT 08/15/2032 DD 12/O1/97 89,492 0.02
900,000.00 FHLMC MULTICLASS MTG X006 A2 1.80 3.84 NR 110.73 951,047 0.31 4.27
31398VJ98 4.251%01/25/2020 DD 04/O1/10 996,579 0.26
1,177,398.65 FHLMC MULTICLASS MTG 58 2A 2.66 5.61 Aaa 115.87 1,333,404 0.42 0.33
31394J 35 6.500%09/25/2043 DO 09/O1/03 1,364,264 0.35
GRMA
411612015 4:58:36PM EDT 10 Source:The Bank of New York Melton Corpomfioo
�W Yield AaalysiNs Report ID: RAM234
i
Base Currency: USD
BNY MELLON
OCSF07522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
114,762.54 GNMA It POOL 00080965 0.53 1.68 Aaa 103.48 114,691 0.04 0.46
36225DCBS VAR RT 07/20/2034 DD 07/01/04 118,752 0.03
37,469.40 GNMA II POOL#080088M U.76 1.67 Are 103.98 38,289 0.01 0.43
36225CC20 VAR RT 06/20/2027 DO 06/01/97 38,959 0.01
13,674.32 GNMA 11 POOL#0080395 0.83 1.67 Aaa 103.81 13,550 0.00 1.34
36225CNM4 VAR RP 04/20/2030DD04/01/00 14,195 0.00
112,934.48 GNMA II POOL#080408X 0.84 1.67 Ara 103.79 111,788 0.04 0.46
36225CN28 VAR RT 05/20/2030DD05/01/00 117,219 0.03
31,325.39 GNMA R POOL#0080023 0.91 L68 Ara 103.31 31,844 0.01 0.84
36225CA 9 VAR RP 12/20/2026 DD 12/01/96 32,362 0.01
GNMA REMIC
58,506.92 GNMA GTD REMIC PIT 00-9 FH 0.04 0.67 Aaa 100.73 58,507 0.02 0.16
3837H4NX9 VAR RT 02/16/2030 58,936 0.02
HOME EQUITY
9,271.38 WELLS FARGO HOME EQUITY 2 A16 -0.93 4.96 Ara 100.26 9,202 0.00 0.03
94980GAG6 VAR RT 10/25/2034DD09/01/04 9,296 0.00
171,460.97 SOUNDVIEW HOME LOAN TR OPP3 A4 1.16 0.47 - 99.36 151,368 0.05 0.00
83611MGS1 VAR RT 11/25/2035DD09/30/05 170,355 0.04
133,743.29 AMRESCO RESIDENTIAL SECURI 1 A 1.75 1.02 - 92.26 100,433 0.04 0.00
03215PFN4 VAR RT 06/25/2029 DD 10/20/99 123,394 0.03
INDUSTRIALS
1,000,000.00 SOUTHERN CO/THE 0.63 2.36 Haal 100.79 999,810 0.31 0.45
842597CGO 2.375%09/15/2015 DD 09/17/10 1,007,930 0.26
411612015 4:58:36PM EDT 11 Source:The Bank of New York Melton Corpomfioo
�W Yield AaalysiE Report ID: RAM234
i
Base Currency: USD
BNY MELLON
00SPo7522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
4,000,000.00 CHEVRON CORP L07 1.10 Aal 100.09 3,977,200 1.24 2.63
166764AA8 1.104% 12/05/2017 DO 12/05/12 4,003,560 1.03
2,000,000.00 INTEL CORP 1.16 L34 Al 100.50 2,008,290 0.62 2.65
458140AL4 1.350% 12/15/2017 DO 12/11/12 2,010,090 0.52
1,600,000.00 PMLIP MORRIS INTERNATIONAL W 1.39 5.00 A2 112.98 1,854,144 0.56 2.86
718172AA7 5.650%05/16/2018 DD 05/16/08 1,807,648 0.47
4,000,000.00 ELI LILLY&CO 1.50 1.92 A2 101.71 4,009,675 1.26 3.83
532457BF4 1.950%03/15/2019 DO 02/25/14 4,068,360 1.05
2,000,000.00 OCCIDENTAL PETROLEUM CORP 1.54 L50 A2 99.88 1,986,340 0.62 2.81
674599CD5 1.500%02/15/2018 DO 06/22/12 1,997,560 0.52
2,000,000.00 AMERICAN HONDA FINANCE CORP 1.94 2.21 Al 101.70 2,019,540 0.63 4.18
02665WAH4 2.250%08/15/2019 DD 09/09/14 2,034,020 0.53
1,300,000.00 "GEN INC 2.38 3.27 Baal 105.46 1,318,052 0.42 4.99
031162BD1 3.450% 10/01/2020 DD 09/16/10 1,371,019 0.35
OTHER CMO GOVT AGENCIES
613,262.91 NCUA GUARANTEED NOTES TR R2 ]A 0.20 0.76 Asa 100.26 613,260 0.19 0.02
62888UAA8 VARRT 11/06/2017 DD 11/17/10 614,864 0.16
155,329.59 SBA GTD PARTN CTFS 2001-20C 1 2.37 5.88 Ara 107.82 155,330 0.05 L94
83162CWO 6.340%03/01/2021 167,476 0.04
STUDENT
48,439.32 SLM STUDENT LOAN TRUST 200 9 A 1.33 1.71 Aaa 102.54 48,243 0.02 0.01
78445JAA5 VAR RT 04/25/2023 DD 08/28/08 49,669 0.01
SUPRANATIONALS
411612015 4:58:36PM EDT 12 Source:The Bank of New York Melton Ccrpomfioo
�W Yield AaalysiR Report ID: RAM234
i
Base Currency: U5D
BNY MELLON
0CSP07522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
5,000,000.00 INTERNATIONAL FINANCE CORP 0.81 1.cc Aaa 100.38 5,020,700 1.55 2.04
45950KBS8 L000%04/24/2017 DO 04/24/12 5,019,000 1.30
TIPS
0.00 US TREAS-CPI INFLAT 1.56 1.05 Asa 107.34 0 0.00 4.54
912828PP9 L125%01/15/2021 DO 01/15/11 0 0.00
3,252,608.00 US TREAS-CPI INFLAT 1.76 0.12 A. 101.03 3,260,051 1.02 5.88
912828=0 0.125%07/15/2022 DD 07/15/12 3,286,142 0.85
TRBASURIBS
7,500,000.00 U S TREASURY NOTE 0.21 0.37 Asa 100.10 7,510,572 2.32 0.62
912828TX8 0.375% 11/15/2015 DO 11/15/12 7,507,650 1.94
10,000,000.00 U S TREASURY NOTE 0.22 0.25 A. 100.02 9,997,299 3.09 0.71
912828UC2 0.250% 12/15/2015 DD 12/15/12 10,002,300 2.59
7,500,000.00 U S TREASURY NOTE 0.23 0.37 Asa 100.13 7,512,916 2.32 0.84
912828B41 0.375%01/31/2016 DD 01/31/14 7,509,375 1.94
3,500,000.00 U S TREASURY NOTE 0.33 0.34 A. 100.01 3,500,340 1.08 0.00
912828D31 VAR RT 04/30/2016DD04/30/14 3,500,280 0.90
19,600,000.00 U S TREASURY NOTE 0.41 0.50 Asa 100.13 19,596,172 6.06 1.41
912828D64 0.500%08/31/2016 DD 08/31/14 19,624,500 5.07
15,000,000.00 U S TREASURY NOTE 0.47 0.50 Asa 100.05 14,965,871 4.64 L66
912828G46 0.500% 11/30/2016 DD 11/30/14 15,007,050 3.88
10,000,000.00 U S TREASURY NOTES 0.53 0.50 Aaa 99.94 9,987,924 3.09 1.91
912828,135 0.500%02/28/2017 DD 02/28/15 9,993,800 2.58
12,500,000.00 U S TREASURY NOTE 0.77 0.87 Asa 100.27 12,435,979 3.87 2.59
912828G20 0.875% 11/15/2017 DO 11/15/14 12,533,250 3.24
411612015 4:58:36PM EDT 13 Source:The Bank of New York Mellon Corpomfioo
�W Yield Aaalysis Report ID: RAM234
i
Base Currency: USD
BNY MELLON
OCSP07522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
52,900,000.00 U S TREASURY NOTE L25 1.60 Aaa 101.56 52,816,985 16.59 4.12
912828WS5 1.625%06/30/2019 DO 06/30/14 53,722,595 13.89
17,400,000.00 U S TREASURY NOTE 1.27 1.60 Aaa 101.50 17,443,113 5.45 4.21
912828WW6 1.625%07/31/2019 DD 07/31/14 17,661,000 4.57
5,800,000.00 U S TREASURY NOTE 1.31 1.72 Aaa 101.91 5,873,187 1.83 4.36
912828F39 1.750%09/30/2019 DD 09/30/14 519101548 1.53
7,500,000.00 U S TREASURY NOTE 1.33 1.49 Asa 100.77 7,449,635 2.33 4.52
91282BG61 1.500% 11/30/2019 DD 11/30/14 7,557,450 1.95
10,237,760.00 US TEXAS-CPI INFLATION INDEXED 1.95 0.13 Aaa 99.96 10,120,476 3.16 7.50
912828WU0 0.125%07/15/2024 DO 07/15/14 10,233,767 2.65
US TAXABLE MUNI BONDS
2,440,000.00 PORT AUTH OF NEW YORK&NEW JE 2.03 4.64 Aaa 114.51 2,507,634 0.86 4.15
73358WAG9 5.309% 12/O1/2019 DO 07/O1/09 2,794,020 0.72
1,400,000.00 NEW YORK CITY NY TRANSITIONAL 2.37 394 Aa1 108.87 1,400,000 0.47 4.99
64971M5E8 4.075% 11/01/2020 DD 11/03/10 1,524,124 0.39
400,OW.00 UNN OF CALIFORNIA CA RUTS MED 2.53 4.41 Aaa 114.10 400,000 0.14 5.31
913366EJ5 5.035%05/15/2021 DO 11/18/10 456,400 0.12
1,200,000.00 TEXAS ST TRANSPRTN COMMISSION 2.84 4.26 Asa 118.16 1,200,000 0.44 793
88283LHT6 5.028%04/O1/2026 DD 08/05/10 1,417,872 0.37
2,500,000.00 ILUNOIS ST TOLL HIGHWAY A= 3.58 4.85 Aaa 109.05 2,464,750 0.84 3.73
452252FJ3 &293%01/O1/2024 DO 05/21/09 2,726,200 090
1,300,000.00 MASSACHUSETTS ST PORT AUTH FAC 4.01 5.13 A3 120.88 1,300,000 0.49 8.93
575898CS8 6.202%07/O1/2031 DD 06/15/11 1,571,492 0.41
411612015 4:58:36PM EDT 14 Source:The Bank of New York Melton Ccrpomfioo
�W Yield Aaalysis Report ID: RAM234
i
Base Currency: U8D
BNY MELLON
OCSF07522202 3/31/2015
Long Term Oper-Pimcv
Units Held YTM/ Current Moody s Market Total Coat %Type Option
Security ID Security Description can(EOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
TOTAL:F=D INCOME 1.21 1.50 320,823,469 100.00 2.93
322,726,115
TOTAL: Long Term Oper-Pimco 1.05 1.39 383,931,513 100.00 2.49
386,837,796
411612015 4:58:36PM EDT 15 Source:The Bank of New York Melton Corpom6on
�w Yield Aaalysis Report ID: RAM234
i
Base Currency:
BNY MELLON
OC11M7555502 3/31/2015
O.C.S.Escrow Account
Units Held YTM/ Current Moody s Market Total Cost %Type Option
Security ID Security Description can(SOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
CASH &TEMPORARY
Sum of Accouui Receivables - 0.00
SUMRECV 6,939
TOTAL:CASH&TEMPORARY 0.00 0.00 100.00
6,739
FIXED INCOME
TREASURIES
3,594,000.00 U S TREASURY NOTE - 0.38 Asa 100.00 3,603,596 99.81 -
912828SK7 0.375%03/15/2015 DD 03/15/12 3,594,000 99.81
TOTAL:FDSBD INCOME 0.00 0.37 3,603,596 100.00
3,594,000
TOTAL: O.C.S.Escrow Account 0.00 0.37 3,603,596 100.00
3,600,739
411612015 4:58:36PM EDT 16 Source:The Buick of New York Makin Corpomtio i
ft ID:
i01 Asset Detail Base cuneney: USD 13
BNY MELLON by Currency Alternate Base Currency:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL
Net Unrealized
Price Coat Market Value % of Gain/Loss
Description Base Shares Par Base Base Total Base
U.S.DOLLAR
CASH&.CASH EQUIVALENTS
CASH -1,449.16 -1,449.16 0.00% 0.00
INTEREST RECEIVABLE 1,131,414.96 1,131,414.96 0.26% 0.00
RECEIVABLE FOR INVESTMENTS 2,264.66 2,264.66 0.009A 0.00
SOLD
BANK TOKYO-MITSUB DISC 99.9020 8,500,000.000 8,489,957.53 8,489,957.53 1.93% 0.00
06/29/2015
SEC ID:06538CrV3
FEDERAL HOME LN BK CONS DISC 99.9892 2,000,000.000 1,999,783.34 1,999,783.34 0.45% 0.00
MAT 04/15/2015
SEC ID:313384E,14
FEDERAL HOME LN BK CONS DISC 99.9805 10,000,000.000 9,998,053.60 9,998,053.60 2.27% 0.00
MAT 05/01/2015
SEC ID:313384FA2
FEDERAL HOME LN MTG CORP DISC 99.9687 900,000.000 899,718.25 899,718.25 0.20% 0.00
MAT 04/01/2015
SEC ID:313396DU4
FEDERAL HOME LN MM CORP DISC 99.9704 1,000,000.000 999,704.44 999,704.44 0.23% 0.00
MAT 07/23/2015
SEC ID:31339WM6
FEDERAL HOME LN MTO CORP DISC 99.9417 2,000,000.000 1,998,833.12 1,998,833.12 0.45% 0.00
0.000%08/28/2015 DO 08/28/14
SEC ID:313396KZ5
FEDERAL HOME LN MTG CORP DISC 99.9319 10,000,000.000 9,993,194.40 9,993,194.40 2.27% 0.00
0.000%09/11/2015 DO 09/11/201
SEC ID:313396LM
FEDERAL NATL MTG ASSN DISC 99.9607 9,800,000.000 9,796,146.69 9,796,146.69 2.23% 0.00
0.000%04/16/2015 DO 04/21/201
SEC ID:313588EK7
FEDERAL NATL MTG ASSN DISC 99.9423 10,000,000.000 9,994,233.30 9,994,233.30 2.27% 0.00
0.000%09/01/2015 DD 9/08/2014
SEC ID:313588LDS
PNC BANK N A DISC 99.7203 7,500,000.000 7,479,020.83 7,479,020.83 1.70% 0.00
09/02/2015
SEC ID:69349KW22
TOYOTA MTR CR CP DISC 99.8628 1,000,000.000 998,627.50 998,627.50 0.23% 0.00
08/11/2015
SEC ID:89233HVB0
TOYOTA MTR CR CP DISC 99.8628 2,000,000.000 1,997,255.56 1,997,255.56 0.45% 0.00
09/04/2015
SEC ID:89233HW42
411612015 4:51:09PM EDT 1 Workbench
i01 Asset Detail Ease cuneney: TIED rt ID: 12
BNY MELLON by Currency Alternate Base Currea<y:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL
Net Unrealized
Price Cost Market Value % of Gain/Loss
Description Base Shares Par Base Base Total Base
DREYFUS TREAS&AGY CSH CSH MG 100.0000 11177175240 11,177,175.24 11,177,175.24 254% 0.00
VAR RT 12/31/2049 DO 04/09/97
SEC ID:996085247
SUB PROXY LONG EXPOSURE 0,4225 1M,812.500 104,812.50 44,283.28 0.01% -60,529.22
SLHOPNTA4
SEC ID:99WAEU30
TOTAL CASH&CASH EQUNALENTS 75,991,987.740 77,058,746.76 76,998,217.5,1 17.50% -60,529.22
FIXED INCOME SECURITIES
AFLAC INC 101.0160 500,000.000 499,630.00 505,080.00 0.11% 5,450.00
3.450%08/15/2015 DO 08/09/10
SEC ID:001055AE2
AMERICAN EXPRESS CO 115.5320 2,900,000.000 3,377,385.79 3,350,428.00 0.76% -26,957.79
7.000%03/19/2018 DD 03/19/08
SEC ID:025816AYS
AMERICAN HONDA FINANCE CORP 101.7010 2,000,000.000 2,019,540.00 2,034,020.00 0.46% 14,480.00
2.250%08/15/2019 DD 09/09/14
SEC ID:02665WAH4
AMGEN INC 105.4630 1,300,000.000 1,318,052.00 1,371,019.00 0.31% 52,967.00
3.450% 10/01/2020 DD 09/16/10
SEC ID:031162BD1
AMRESCO RESIDENTIAL SECURI I A 92.2620 133,743.290 100,432.85 123,394.23 0.03% 22,961.38
VAR RT 06/25/2029 DO 10/20/99
SEC ID:03215PFN4
BANK OF AMERICA CORP 110.0350 3,800,000.000 4,334,014.00 4,181,330.00 0.95% -152,684.00
5.750% 12/01/2017 DO 12/04/07
SEC ID:060505DP6
BANK OF AMERICA NA 99.8300 600,000.000 600,000.00 598,980.00 0.14% -1,020.00
VAR RT 05/08/2017 DO 05/08/14
SEC ID:0605GTLX8
BEAR STEARNS COS LLC/THE 108.9130 3,200,000,000 3,523,520.00 3,485,216.00 0.79% -38,304.00
4.650%07/02/2018 DD 06/25/03
SEC ID:073902CD8
CATERPILLAR INC 100.1630 1,000,000.000 1,003,280.00 1,001,630.00 0.23% -1,650.00
0.950%06/26/2015 DO 06/26/12
SEC ID: 149123BY6
CATERPILLAR FINANCIAL SERVICES 100.1480 1,000,000.000 1,003,340.00 1,001,480.00 0.23% -1,860.00
1.100%05/29/2015 DO 05/30/12
SEC ID: 149121,5D9
CHASE ISSUANCE TRUST AS AS 100.0490 4,000,000.000 4,001,406.25 4,001,960.00 0.91% 553.75
0.590%08/15/2017 DO 09/13/12
SEC ID: 161571FL3
411612015 4:51:09PM EDT 2 Workbench
rt ID:
i01 Asset Detail Base c�Reney: USD 13
BNY MELLON by Currency Alternate Base Currency:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL
Net Unrealized
Price Cost market Value % of Gain/Loss
Description Base Shares Par Base Base Total Base
CHEVRON CORP 100,0890 4,000,000.000 3,977,200,00 4,003,5%00 0.91% 26,360.00
1.104% 12/05/2017 DD 12/05/12
SEC ID: 166764AA8
CHIGROUP INC 100.2770 200,000.000 198,352.00 20Q554.00 0.05% 2,202.00
1.250%01/15/2016 DD 0 1/10/13
SEC ID: 172967GGO
COSTCO WHOLESALE COST 100.132U 1,000,000.000 1,001,340.00 1,001,320.00 0.23% -20.00
0.650% 12/07/2015 DD 12/07/12
SEC ID:22160KAD7
JOHN HERNE CAPITAL CORD 100.1310 1,008,000.000 1,009,340.64 1,009,320.48 0.23% -20.16
0.700%09/04/2015 DO 09/07/12
SEC ID:24422ERV3
JOHN DEERE CAPITAL CORP 102.1020 1,200,000.000 1,204,956.00 1,225,224.00 0.28% 20,268.00
2.300%09/16/2019 DD 09/15/14
SEC ID:24422ESS9
FEDERAL FARM CR BE CONS BD 100.7720 2,000,000.000 2,021,180.00 2,015,440.00 0.46% -5,740.00
1.500% 11/16/2015 DD 11/15/10
SEC ID:31331J2S1
FEDERAL HOME LN BE CONS BE 100.6720 1,500,000.000 1,515,240.00 1,510,080.00 0.34% -5,160.00
1.750%09/11/2015 DO 08/04/10
SEC ID:313370JB5
FEDERAL HOME LN BE CONS BE 101.2240 7,500,000.000 7,544,850.00 7,591,900.00 1.73% 46,950.00
1.375%03/09/2018 DO 02/13/12
SEC ID:313378A43
FEDERAL HOME LN BE CONS BD 100.1740 2,000,000.000 2,003,320.00 2,003,480.00 0.46% 160.00
0.500% 11/20/2015 DD 08/23/12
SEC ID:31338OL96
FEDERAL FARM CR BE CONS BE 100.0810 2,000,000.000 2,003,400.00 2,001,620.00 0.46% -1,780.00
0.500%06/23/2015 DD 05/23/12
SEC ID:3133EARQ3
FHLMC MULnCLASS MTG E3 A 103.7610 86,247.750 86,337.96 89,491.53 0.02% 3,153.57
VAR RT 08/15/2032 DD 12/01/97
SEC ID:3133TCE95
FHLMC POOL s78-6064 103.6970 2,798.140 2,729.95 2,901.59 0.00% 171.64
VAR RT 01/01/2028 DO 12/01/97
SEC ID:31348SWZ3
FEDERAL NATL MTG ASSN 100.0610 2,000,000,000 2,002,740.00 2,001,220.00 0.45% -1,520.00
0.500%05/27/2015 DD 04/19/12
SEC ID:3135GOKM4
FEDERAL NATL MTG ASSN 100.0880 2,000,000.000 2,003,408.00 2,001,760.00 0.46% -1,648.00
0.500%07/02/2015 DD 05/21/12
SEC ID:3135GOLNI
411612015 4:51:09PM EDT 3 Workbench
ft ID:
i01 Asset Detail Base cuneney: USD 13
BNY MELLON by Currency Alternate Base Currency:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 stama: FINAL
Net Unrealized
Price Cost Market Value % of Gain/Lou
Description Base Shares Par Base Base Total Base
FEDERAL NATL MTG ASSN 101,6040 5,000,000.000 5,021,500,00 5,080,200.00 1.15% 58,700.00
1.750%09/12/2019 DO 07/28/14
SEC ID:3135GOZG1
FNMA POOL#0257179 109.0330 50,075.590 52,959.83 54,598.92 0.01% 1,639.09
4.500%04/01/2028 DD 03/01/08
SEC ID:31371NUC7
FNMA POOL#0357969 111.2050 288,675.230 310,325.88 321,021.29 0.07% 10,695.41
5.000%09/01/2035 DO 09/01/05
SEC ID:31376KT22
FEDERAL HOME LN MTG CORP 100.0190 2,000,000.000 2,002,184.00 2,000,380.00 0.45% -1,804.00
0.500%04/17/2015 DD 02/21/12
SEC ID:3137EADD8
FEDERAL HOME LN MTG CORP 99.8230 5,000,000.000 4,967,500.00 4,991,150.00 1.13% 23,650.00
0.750%01/12/2018 DD 11/21/12
SEC ID:3137EADN6
FEDERAL HOME LN MTG CORP 99.8390 5,000,000.000 4,974,100.00 4,991,950.00 1.13% 17,850.00
0.875%03/07/2018 DD 01/17/13
SEC ID:3137EADP1
FEDERAL HOME LN MTG CORP 99.8280 5,000,000.000 4,991,050.00 4,991,400.00 1.13% 350.00
0.500%01/27/2U17 DD 01/16/15
SEC ID:3137EADU0
FNMA POOL#0466397 107.4390 372,547.840 364,485.68 400,261.67 0.09% 35,775.99
3.400% 11/01/2020 DD 11/01/10
SEC ID:31381PDM
FNMA POOL 00AL0869 108.9730 31,508.450 33,323.28 34,335.70 0.01% 1,012.42
4.500%06/01/2029 DD 09/01/11
SEC ID:3138EG6F6
FHLMC MULTICLASS MTG 58 2A 115.8710 1,177,398.650 1,333,403.95 1,364,263.59 0.31% 30,859.64
6.500%09/25/2043 DD 09/01/03
SEC ID:31394 35
FNMA GM REMIC P/T 07-114 A6 98.7250 198,879.400 189,184.03 196,343.69 0.WA 7,159.66
VAR RT 10/27/2037 DD 11/30/07
SEC ID:31396X3Q5
FNMA GTD REMIC P/T 11-3 FA 101.3100 575,734.170 575,554.26 583,276.29 0.13% 7,722.03
VAR RT 02/25/2041 DO 01/25/11
SEC ID:31397QREO
FEDERAL NATL MTG ASSN 100.8470 2,000,000.000 2,025,660.00 2,016,940.00 0.46% -8,720.00
2.000%09/21/2015 DD 09/21/10
SEC ID:31398M3
FHLMC MULTCLASS MTG K006 A2 110.7310 900,000.000 951,046.88 996,579.00 0.23% 45,532.12
4.251%01/25/2020 DO 04/01/10
SEC ID:31398VJ98
411612015 4:51:09PM EDT 4 Workbench
ft ID:
i01 Asset Detail Base cuneney: USD 13
BNY MELLON by Currency Alternate Base Currency:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL
Net Unrealized
Price Cost Market Value % of Gain/Loss
Description Base Shares Par Base Base Total Base
FNMA POOL#0745580 111,2300 272,698.860 293,15126 303,322.94 0.07% 10,171.68
5.000%06/01/2036 DO 05/0I/06
SEC ID:31403WJ
FNMA POOL#0748678 111.0660 7,075.560 7,606.23 7,858.54 0.00% 252.31
5.000% 10/01/2033 DO 10/01/03
SEC ID:31403GXF4
FNMA POOL#0815971 111.2790 533,541.450 573,557.06 593,719.59 0.13% 20,162.53
5.000%03/01/2035 DO 03/01/05
SEC ID:31406PQY8
FNMA POOL#0823358 106.7970 237,564.340 235,708.37 253,711.59 0.06% 18,003.22
VAR RT 02/01/2035 DD 04/01/05
SEC ID:31406XWT5
FNMA POOL#0826080 111.2930 50,500.160 54,287.67 56,203.14 0.01% 1,915.47
5.000%07/01/2035 DO 06/01/05
SEC ID:31407BXH7
FNMA POOL#0888336 111.2010 551,845.380 593,233.79 613,657.58 0.14% 20,423.79
5.000%07/01/2036 DD 04/01/07
SEC ID:31410F4V4
FNMA POOL#0MA0022 108.9510 50,188.430 53,079.15 54,680.80 0.01% 1,601.65
4.500%04/01/2029 DD 03/01/09
SEC ID:31417YAY3
GE EQUIPMENT TRANSPORTATI I A3 100.1410 2,955,000.000 2,954,564.14 2,959,166.55 0.67% 4,602.41
1.280%02/25/2019 DD 03/04/15
SEC ID:36164EAC9
GNMA 11 POOL#0080023 103.3100 31,325.390 31,844.22 32,362.26 0.01% 518.04
VAR RT 12/20/2026 DD 12/01/96
SEC ID:36225CAZ9
GNMA 11 POOL#080088M 103.9750 37,469.400 38,289.06 38,958.81 0.01% 669.75
VAR RT 06/20/2027 DD 06/01/97
SEC ID:36225CC20
GNMA 11 POOL#080408X 103.7940 112,934.480 111,787.50 117,219.21 0.03% 5,431.71
VAR RT 05/20/2030 DO 05/01/00
SEC ID:36225CN28
GNMA II POOL#0080395 103.8080 13,674.320 13,550.38 14,195.04 0.00% 644.66
VAR RT 04/20/2030 DO 04/01/00
SEC ID:36225CNM4
GNMA II POOL#0080965 103.4760 114,762.740 114,691.03 118,751.89 0.03% 4,060.86
VAR RT 07/20/2034 DO 07/01/04
SEC ID:36225DCB8
GENERAL ELECTRIC CAPITAL CORP 100.3030 1,000,000.000 1,005,820.00 1,003,030.00 0.23% -2,790.00
1.625%07/02/2015 DO 07/02/12
SEC ID:36962GSM
411612015 4:51:09PM EDT $ Workbench
ft ID:
i01 Asset Detail Base c�Reney: USD fa
BNY MELLON by Currency A[emate Base Currency:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL
Net Unrealized
Price Cost Market Value % of Gain/Lou
Description Base Shares Par Base Base Total Base
GENERAL ELECTRIC CAPITAL CORP 101,1030 5,000,000.000 5,014,950,00 5,055,150.00 1.15% 40,200.00
2.200%01/09/2020 DO 01/09/15
SEC ID:36962G7MO
GOLDMAN SACHS GROUP INC/THE 99.9730 2,000,000,000 1,895,068.00 1,999,460.00 0.45% 104,392.00
VAR RT 03/22/2016 DO 03/22/06
SEC ID:38141GEGS
GOLDMAN SACHS GROUP INC/THE 111.3470 600,000.000 692,806.00 668,082.00 0.15% -24,724.00
5.950%01/18/2018 DO 01/18/08
SEC ID:38141GFG4
GNMA GTD REMIC P/T 00-9 PH 100.7330 58,506.920 58,506.92 58,935.78 0.01% 429.86
VAR RT 02/16/2030
SEC HP 3837H4NX9
HSBC USA INC 100.0030 3,000,000,000 3,003,290.00 3,000,090.00 0.68% -3,200.00
1.625%01/16/2018 DO 12/20/12
SEC ID:40428HPH9
HONDA AUTO RECEIVABLES 20 1 A3 99.8750 4,000,000.000 3,987,812.50 3,995,000.00 0.91% 7,187.50
0.600% 11/21/2017 DO 02/27/14
SEC ID:43813JAC9
ILLINOIS ST TOLL HIGHWAY AUTH 109.0480 2,500,000.000 2,464,750.00 2,726,200.00 0.62% 261,450.00
5.293%01/01/2024 DO 05/21/09
SEC ID:452252FJ3
INTEL CORP 100.5040 2,000,000.000 2,008,280.00 2,010,080.00 0.46% 1,800.00
1.350% 12/15/2017 DO 12/11/12
SEC ID:458140AL4
INTERNATIONAL BUSINESS MACHINE 100.0400 1,000,000.000 1,001,880.00 1,000,400.00 0.23% -1,480.00
0.750%05/11/2015 DO 05/11/12
SEC ID:45920OHD6
INTERNATIONAL FINANCE CORP 100.3800 5,000,000.000 5,020,700.00 5,019,000.00 1.140% -1,700.00
1.000%04/24/2017 DD 04/24/12
SEC ID:45950KBSS
JPMORGAN CHASE Is CO 100.2420 1,000,000.000 1,002,380.00 1,002,420.00 0.23% 40.00
1.125%02/26/2016 DD 02/26/13
SEC ID:46623EIU4
JPMORGAN CHASE&CO 100.2140 2,000,000.000 1,994,880.00 2,004,280.00 0.46% 9,400.00
2.250%01/23/2020 DO 01/23/15
SEC ID:46625HKA9
JOHN DEERE OWNER TRUST 20 B A3 100.1880 4,000,000,000 4,001,875.00 4,007,520.00 0.91% 5,645.00
1.070% 11/15/2018 DO 09/03/14
SEC ID:477877AD6
LEHMAN BETH HLD ESC 14.2500 2,000,000.000 1,366,718.96 285,000.00 0.06% -1,081,718.96
0.000% 12/30/2016 DO 10/24/05
SECID:525ESCOY6
411612015 4:51:09PM EDT 6 Workbench
rt ID:
i01 Asset Detail Base c�Reney: USD 13
BNY MELLON by Currency Alternate Base Currency:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL
Net Unrealized
Price Cost Market Value % of Gain/Lou
Description Base Shares Par Base Base Total Base
ESC LEHMAN BRTH HLD ESCROW 14,3750 600,000.000 406,604,83 86,25000 0.02% -320,354.83
0.000%01/24/2013 DO 01/22/08
SEC ID: 525ESCIB7
EM LILLY&CO 101.7090 4,000,000.000 4,009,675.00 4,068,360.00 0.92% 58,685.00
1.950%03/15/2019 DO 02/25/14
SEC ID:532457BF4
MASSACHUSETTS ST PORT AUTH FAC 120.8840 1,300,000.000 1,300,000.00 1,571,492.00 0.36% 271,492.00
6.202%07/01/2031 DO 06/15/11
SEC ID:575898CS8
BANK OF"ERICA CORP 116.0390 2,800,000.000 3,417,664.00 3,249,092.00 0.74% -168,572.00
6.875% 11/15/2018 DO 11/24/98
SEC ID: 590188JN9
MORGAN STANLEY 116.0070 2,800,000,000 3,200,848.00 3,248,196.00 0.74% 47,348.00
5.500%07/28/2021 DO 07/28/11
SEC ID:61747WAL3
MORGAN STANLEY 100.3300 700,000.000 737,361.00 702,310.00 0.16% -35,051.00
6.000%04/28/2015 DO 04/28/08
SEC ID:61747YCE3
NCUA GUARANTEED NOTES TR R2 LA 100.2610 613,262.910 613,260.12 614,863.53 0.14% 1,603.41
VAR RT I I/06/2U 17 DO I I/17/10
SEC ID:62888UAA8
NCUA GUARANTEED NOTES TR C1 Al 100.1090 237,007.680 237,618.72 237,266.02 0.05% -352.70
1.600% 10/29/2020 DO 11/10/10
SEC ID:62888XAA2
NEW YORK CITY NY TRANSITIONAL 108.8660 1,400,000.000 1,400,000.00 1,524,124.00 0.35% 124,124.00
4.075% 11/01/2020 DO 11/03/10
SEC ID:6497145E8
OCCIDENTAL PETROLEUM CORE 99.8780 2,000,000.000 1,986,340.00 1,997,560.00 0.45% 11,220.00
1.500%02/15/2018 DD 06/22/12
SEC ID:674599CD5
PHILIP MORRIS INTERNATIONAL IN 112.9780 1,600,000.000 1,854,144.00 1,807,648.00 0.41% -46,496.00
5.650%05/16/2018 DO 05/16/08
SEC ID:718172AA7
PORT AUTH OF NEW YORK&NEW JE 114.5090 2,440,000.000 2,507,633.89 2,794,019.60 0.64% 286,385.71
5.309% 12/01/2019 DO 07/01/09
SEC ID:73358WAG9
SLM STUDENT LOAN TRUST 2009 A 102.5380 48,439.320 48,242.79 49,668.71 0.01% 1,425.92
VAR RT 04/25/2023 DO 08/28/08
SEC ID:78445JAA5
CHARLES SCHWAB CORP/T14E 100.2280 1,000,000.000 1,002,700.00 1,002,280.00 0.23% 420.00
0.850% 12/04/2015 DD 12/06/12
SEC ID:808513AH8
411612015 4:51:09PM EDT 7 Workbench
rt ID:
i01 Asset Detail Base cuneney: USD 13
BNY MELLON by Currency Alternate Base Currency:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 stama: FINAL
Met Unrealized
Price Cost Market Value % of Gain/Lou
Description Base Shares Par Base Base Total Base
SIMON PROPERTY GROUP LP 110,6890 1,000,000.000 996,050,00 1,106,890.00 0.25% 110,840.00
4.375%03/01/2021 DO 08/l6/10
SEC ID:828807CF2
SBA GM PARTN CTFS 2001-20C 1 107.8200 155,329.590 155,329.59 167,476.36 0.04% 12,146.77
6.340%03/01/2021
SEC ID:83162CWO
SOUNDVIEW HOME LOAN TR OPTS A4 99.3550 171,460.970 151,367.89 170,355.05 0.WA 18,987.16
VARRT 11/25/2035DD09/30/05
SEC ID:83611MGS1
SOUTHERN CO/THE 100.7930 1,000,000.000 999,810.00 1,O7,930.00 0.23% 8,120.00
2.375%09/15/2015 DO 09/17/10
SEC ID:842587CGO
TEXAS ST TRANSPRTN COMMISSION 118.1560 1,200,000,000 1,200,000.00 1,417,872.00 0.32% 217,872.00
5.028%04/01/2026 DD 08/05/10
SEC ID:88283LHT6
TOYOTA AUTO RECEIVABLES 2 AA3 99.9420 4,000,000.000 3,991,718.75 3,997,680.00 0.91% 5,961.25
0.670% 12/15/2017 DD 03/19/14
SEC ID:89231MAC9
TOYOTA MOTOR CREDIT CORP 100.2540 5,200,000.000 5,200,000.00 5,213,208.00 1.19% 13,208.00
VAR RT 05/17/2016 DO 05/17/13
SEC ID:89236TAK1
TOYOTA AUTO RECEWABLES 2 A A3 100.3190 3,595,000.000 3,594,456.44 3,606,468.05 0.82% 12,011.61
1.120%02/15/2019 DO 03/04/15
SEC ID:89236WAC2
U S TREASURY NOTE 100.1250 7,500,000.000 7,512,915.75 7,509,375.00 L71% -3,540.75
0.375%01/31/2016 DD 01/31/14
SEC ID:9128281341
U S TREASURY NOTE 100.0080 3,500,000.000 3,500,340.41 3,500,280.00 0.80% -60.41
VAR RT 04/30/2016 DD 04/30/14
SEC ID:912828D31
U S TREASURY NOTE 100.1250 19,600,000.000 19,596,171.88 19,624,500.00 4.46% 28,328.12
0.500%08/31/2016 DO 08/31/14
SEC ID:912828D64
U S TREASURY NOTE 101.9060 5,800,000.000 5,873,186.87 5,910,548.00 1.34% 37,361.13
1.750%09/30/2019 DO 09/30/14
SEC ID:912828F39
U S TREASURY NOTE 100.2660 12,500,000,000 12,435,979.37 12,533,250.00 2.85% 97,270.63
0.875% 11/15/2017 DD 11/15/14
SEC ID:912828G20
U S TREASURY NOTE 100.0470 15,000,000.000 14,965,870.56 15,007,050.00 3.41% 41,179.44
0.500% 11/30/2016 DO 11/30/14
SEC ID:912828G46
411612015 4:51:09PM EDT $ Workbench
ft ID:
i01 Asset Detail Base cuneney: USD 13
BNY MELLON by Currency Alternate Base Currency:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL
Net Unrealized
Price Cost Market Value % of Gain/Loss
Description Base Shares Par Base Base Total Base
U S TREASURY NOTE 100,7660 7,SOQ000.000 7,449,634,50 7,557,450.00 1 72"/0 107,815.50
1.500% 11/30/2019 DD 11/30/14
SEC ID:912828G61
U S TREASURY NOTES 99.9380 10,000,000,000 9,987,924.13 9,993,800.00 2.27% 5,875.87
0.500%02/28/2017 DD 02/28/15
SEC ID:912828J35
U S TREASURY NOTE 100.0000 3,594,000.000 3,603,596.33 3,594,000.00 0.82% -9,596.33
0.375%03/15/2015 DD 03/15/12
SEC ID:9128288K7
U S TREASURY NOTE 100.0630 2,000,000.000 2,002,506.70 2,001,260.00 0.45% -1,246.70
0.375%06/15/2015 DD 06/15/12
SEC ID:9128285
US TREAS-CPI INFLAT 101.0310 3,252,608,000 3,260,050.82 3,286,142.39 0.75% 26,091.57
0.125%07/15/2022 DD 07/15/12
SEC ID:912828MO
U S TREASURY NOTE 100.0470 3,500,000.000 3,502,882.82 3,501,645.00 0.80% -1,237.82
0.250%08/15/2015 DD 08/15/12
SEC ID:912828TK6
U S TREASURY NOTE 100.1020 11,500,000.000 11,516,991.65 11,511,730.00 2.62% -5,261.65
0.375% 11/15/2U15 DD 11/15/12
SEC ID:912828TX8
U S TREASURY NOTE 100.0230 10,000,000.000 9,997,299.13 10,002,300.00 2.27% 5,000.87
0.250% 12/15/2015 DD 12/15/12
SEC ID:912828UC2
U S TREASURY NOTE 100.0470 3,500,000.000 3,503,156.26 3,501,645.00 0.80% -1,511.26
0.250%09/30/2015 DD 09/30/13
SEC ID:912828W3
U S TREASURY NOTE 101.5550 52,900,000.000 52,816,985.09 53,722,595.00 12.21% 905,609.91
1.625%06/30/2019 DD 06/30/14
SEC ID:912828WS5
US TREAS-CPI INFLATION INDEXED 99.9610 10,237,760.000 10,120,475.89 10,233,767.27 2.33% 113,291.38
0.125%07/15/2024 DD 07/15/14
SEC ID:912828WUO
U S TREASURY NOTE 101.5000 17,400,000.000 17,443,112.67 17,661,000.00 4.01% 217,887.33
1.625%07/31/2019 DD 07/31/14
SEC ID:912828W W6
UNW OF CALIFORNIA CA ROTS MED 114.1000 400,000.000 400,000.00 456,400.00 0.10% 56,400.00
5.035%05/15/2021 DD 11/18/10
SEC ID:913366EJ5
WELLS FARGO HOME EQUITY 2 M6 100.2640 9,271.380 9,201.84 9,295.86 0.00% 94.02
VAR RT 10/25/2034 DD 09/01/04
SEC ID:94980GAG6
411612015 4:51:09PM EDT 9 Workbench
rt In:
i01 Asset Detail Base cuneney: Can 13
BNY MELLON by Currency Alternate Base Currency:
Exchange Rate:
OCSD-CONSOLIDATED-OCSG00010000 3/31/2015 Status: FINAL
Bet Unrealized
Price Cost Market Value % of Gain/Loss
Description Base Shares Par Base Base Total Base
WELLS FARGO DANK NA 100,1510 6,3GG,000.000 6,297,795,00 6,309,513.00 1.43:, 11,718.00
0.050%07/20/2015 DD 07/29/13
SEC ID:94985H5F7
WELLS FARGO BANK NA 99.9050 500,000.000 500,000.00 499,525.00 OA 1% -415.00
VAR RT 06/15/2017 DO 06/12/14
SEC ID:9498W2LO
TOTAL FIXED INCOME SECURITIES 359,006,835.790 361,049,243.16 362,901,545.54 82.50% 1,852,302.38
TOTAL ASSETS U.S.DOLLAR 434,989,823.530 438,107,989.92 439,899,763.09 100.00-A 1,791,773.16
TOTAL ASSETS-BASE: 434,988,823.530 438,107,989.92 439,899,763.08 100.00% 1,791,773.16
411612015 4:51:09PM EDT 10 Workbench
Transaction Report Report ID: TE8355
BNY MELLON Base Cunene, Dan
OCSD CONSOLIDATED -OCSG00010000 3/1/2015 - 3/31/2015 Blame: FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
RECEIPTS AND DISBURSEMENT TRANSACTIONS
MISCELLANEOUS INCOME
U.B.DOLLAR
ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT
SEC ID:912828MG
SW 3/6/2015 -1,504.000 0.00 -1,504.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/9/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/10/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/11/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/12/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/13/2015 -1,472.000 0.00 -1,472.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/16/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/17/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/18/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00
OCSFC7522202 OCS LONG CHANDLER
SW 3/19/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS WHO CHANDLER
SW 3/20/2015 -1,504.000 0.00 -1,504.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/23/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/24/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/25/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00
OCSFC7522202 OCS LONG CHANDLER
SW 3/26/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/27/2015 -1,472.000 0.00 -1,472.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/30/2015 -512.000 0.00 -512.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/31/2015 -480.000 0.00 -480.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
0.00 -12,896.00 0.00 0.00 0.00 0.00
0.001 0.00 T
0.00 C 0.00 8
411612015 5:01:42PM EDT 1 'Pending Settlement Workbench
Transaction Report Report W; TS8355
BNY MELLON Base Cunene, USD
OCSD CONSOMDATED -OC8G00010000 3/1/2015 - 3/31/2015 Status: FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLATION INDEXED
SEC ID:912828WUO
SW 3/6/2015 -4,680.000 0.00 -4,680.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/9/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/10/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/11/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/12/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/13/2015 -4,680.000 0.00 -4,680.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/16/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/17/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/18/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/19/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/20/2015 -4,784,000 0.00 -4,784.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/23/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/24/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/25/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/26/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/27/2015 -4,680.000 0.00 -4,680.00 0.00 0.00 0.00 0.00
OCSM7522202 OCS LONG CHANDLER
SW 3/30/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSF7522202 OCS LONG CHANDLER
SW 3/31/2015 -1,560.000 0.00 -1,560.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
SW 3/31/2015 -8,320.000 0.00 -8,320.00 0.00 0.00 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
0.00 -48,984.00 0.00 0.00 0.00 0.00
0.001 0.00 T
0.00 C 0.00 8
TO BRING ACCOUNT INTO BALANCE WITH 03/31/15
SEC ID:912828TEO
411612015 5:01:42PM EDT 2 'Pending Settlement Workbench
Transaction Report Report ID: TE8355
BNY MELLON Base Cunene, ONO
OCSD CONSOMDATED -OCSG00030000 3/1/2015 - 3/31/2015 Statue FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
SW 3/31/2015 -2,624.000 0,00 -2,624,00 0,00 0.00 0,00 0.00
OCSF07522202 OCS LONG CHANDLER
TOTAL U.B.DOLLAR: 0.00 -64,504.00 0.00 0.00 0.00 0.00
0.001 0.00 T
0.00 C 0.00 S
TOTAL MISCELLANEOUS INCOME: 0.00 -64,504.00 0.00 0.00 0.00 Moo
0.001 0.00 T
0.00 c 0.00 S
TOTAL RECEIPTS AND DISBURSEMENT 0.00 -64,504.00 0.00 0.00 0.00 0.00
TRANSACTIONS: 0.001 0.00 T
0.00 C 0.00 S
PURCHASES
CASH 8a CASH EQUIVALENTS
U.S.DOLLAR
BANK OF NEW YOM CASH RESERVE 0,063% 12/31/2049 DO 10/30/08
SEC ID:99WAH408
B 3/2/2015 35,505.110 -35,505.11 35,505.11 0.00 -35,505.11 0.00 0.00
3/2/2015
OCSF07522202 OCS LONG CHANDLER
BNY MELLON CASH RESERVE 0.010% 12/31/2049 DD 06/26/97
SEC ID:996087094
B 3/16/2015 2,826.220 -2,826.22 2,826.22 0.00 -2,826.22 0.00 0.00
3/16/2015
OCSF07522202 OCS LONG CHANDLER
DREYFUS TREAS 8:AGY CSH CSH MG VAR RT 12/31/2M9 DO 04/09/97
SEC ID:996085247
B 3/2/2015 136,959.200 -136,959.20 136,959.20 0.00 -136,959.20 0.00 0.00
3/2/2015
OCSM7522202 OCS LONG CHANDLER
B 3/3/2015 35,640.660 -35,640.66 35,640.66 0.00 -35,640.66 0.00 0.00
3/3/2015
OCSF07522202 OCS LONG CHANDLER
B 3/4/2015 3,528.000 -3,528.00 3,528.00 0.00 -3,528.00 0.00 0.00
3/4/2015
OCSM7511102 OCS LIQ OP CHANDLER
B 3/6/2015 3.360 -3.36 3.36 0.00 -3.36 0.00 0.00
3/6/2015
OCSF07522202 OCS LONG CHANDLER
B 3/9/2015 2,000,000.000 -2,000,000.00 2,000,000.00 0.00 -2,000,000.00 0.00 0.00
3/9/2015
OCSF07511102 OCS LIQ OP CHANDLER
411612015 5:01:42PM EDT 3 'Pending Settlement Workbench
Transaction Report Report ID: T48355
BNY MELLON Base Cunene, USD
OCSD CONSOLIDATED -OCS000010000 3/1/2015 - 3/31/2015 Statue FRIAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
S 3/9/2015 82,589.990 -82,589.99 82,589.99 0,00 -82,589.99 0.00 0.00
3/9/2015
OCSF07522202 OCS LONG CHANDLER
H 3/11/2015 13,125.000 -13,125.00 13,125.00 0.00 -13,125.00 0.00 0.00
3/11/2015
OCSF09511102 OCS UQ OP CHANDLER
B 3/11/2015 23,800,000.000 -23,800,000.00 23,800,000.00 0.00 -23,800,000.00 0.00 0.00
3/11/2015
OCSF7522202 OCS LONG CHANDLER
H 3/12/2015 43,750.000 -43,750.00 43,750.00 0.00 -43,750.00 0.00 0.00
3/12/2015
OCSM7522202 OCS LONG CHANDLER
B 3/16/2015 2,622,472.500 -2,622,472.50 2,622,472.50 0.00 -2,622,472.50 0.00 0.00
3/16/2015
OCSF07511102 OCS UQ OP CHANDLER
B 3/16/2015 3,543,056.270 -3,543,056.27 3,543,056.27 0.00 -3,543,056.27 0.00 0.00
3/16/2015
OCSM7522202 OCS LONG CHANDLER
B 3/19/2015 101,500.000 -101,500.00 101,500.00 0.00 -101,500.00 0.00 0.00
3/19/2015
OCSF07522202 OCS LONG CHANDLER
E 3/20/2015 638,934.380 -638,934.38 638,934.38 0.00 -638,934.38 0.00 0.00
3/20/2015
OCSF00511102 OCS UQ OP CHANDLER
H 3/23/2015 20,000.000 -20,000.00 20,000.00 0.00 -20,000.00 0.00 0.00
3/23/2015
OCSF09511102 OCS LIQ OP CHANDLER
B 3/23/2015 5,757.560 -5,757.56 5,757.56 0.00 -5,757.56 0.00 0.00
3/23/2015
OCSF07522202 OCS LONG CHANDLER
B 3/24/2015 3,278,956.890 -3,278,956.89 3,278,956.89 0.00 -3,278,956.89 0.00 0.00
3/24/2015
OCSM7522202 OCS LONG CHANDLER
D 3/25/2015 120,114.230 -120,114.23 120,114.23 0.00 -120,114.23 0.00 0.00
3/25/2015
OCSF07522202 OCS LONG CHANDLER
H 3/27/2015 1,178.310 -1,178.31 1,178.31 0.00 -1,178.31 0.00 0.00
3/27/2015
OCSM7522202 OCS LONG CHANDLER
B 3/30/2015 395,949.380 -395,949.38 395,949.38 0.00 -395,949.38 0.00 0.00
3/30/2015
OCSM7511102 OCS UQ OP CHANDLER
E 3/30/2015 41,631.010 -41,63101 41,631.01 0.00 -41,631.01 0.00 0.00
3/30/2015
OCSF07522202 OCS LONG CHANDLER
411612015 5:01:42PM EDT 4 'Pending Settlement Workbench
Transaction Report Report ID: TX8355
PINY MELLON Base Cunene, USD
OCSD CONSOLIDATED -OC8G00010000 3/1/2015 - 3/31/2015 Smrus: FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
B 3/31/2015 4,375.000 -4,375,00 4,375,00 0.00 -4,375.00 0,00 0,00
3/31/2015
OCSF00511102 OCS LIQ OP CHANDLER
-36,889,521.74 36,889,521.74 0.00 -36,889,521.74 0.00 0.00
0.001 0.00 T
0.00 C 0.00 S
FEDERAL HOME LN MTG CORP DISC 0,000%08/28/2015 DD 08/28/14
SEC ID:313396KM
B 3/3/2015 2,000,000.000 -1,998,833.12 1,998,833.12 0.00 -1,998,833.12 0.00 0,00
3/3/2015
OCSM7511102 OCS LIQ OP CHANDLER
FEDERAL HOME LN MTG CORP DISC 0.000%09/11/2015 DD 09/11/201
SEC ID:313396LP6
B 3/20/2015 10,000,000,000 -9,993,194.40 9,993,194.40 0.00 -9,993,194.40 0.00 0.00
3/20/2015
OCSM522202 OCS LONG CHANDLER
FEDERAL HOME LN MTG CORP DISC MAT 07/23/2015
SEC ID:31339WM6
B 3/12/2015 1,000,000.000 -999,904.44 999,904.44 0.00 -999,904.44 0.00 0.00
3/12/2015
OCSF09511102 OCS LIQ OP CHANDLER
FEDERAL NATL MTG ASSN DISC 0.000%09/01/2015 DD 9/08/2014
SEC ID:313588LDS
B 3/11/2015 10,000,000.000 -9,994,233.30 9,994,233.30 0.00 -9,994,233.30 0.00 0.00
3/12/2015
OCSM7522202 OCS LONG CHANDLER
TOTAL SETTLED U.S.DOLLAR: -59,913,818.33 59,913,818.33 0.00 -59,913,818.33 0.00 nco
0.001 0.00 T
0.00 C 0.00 S
TOTAL SETTLED CASH Is CASH -59,913,818.33 59,913,818.33 0.00 -59,913,818.33 0.00 0.00
EQUIVALENTS: 0.001 0.00 T
0.00 C 0.00 8
FIXED INCOME SECURrIMS
U.S.DOLLAR
AMERICAN HONDA FINANCE CORP 2.250%08/15/2019 DO 09/09/14
SEC ID:02665WAH4
B 3/13/2015 2,000,000.000 -2,019,540.00 2,019,540.00 0.00 -2,019,540.00 0.00 0.00
3/18/2015
OCSF07522202 OCS LONG CHANDLER
GE EQUIPMENT TRANSPORTATI 1 A3 1.280%02/25/2019 DD 03/04/15
SEC ID:36164EAC9
411612015 5:01:42PM EDT 5 'Pending Settlement Workbench
Transaction Report Report ID: TES355
BNY MELLON Base Cunene, USD
OCSD CONSOLIDATED -OCSQOOOI0000 3/1/2015 - 3/31/2015 Blame: FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
FC 2/24/2015 2,955,000.000 -2,954,564.14 0,00 0.00 -2,954,564.14 0,00 0,00
3/4/2015
OCSF07522202 OCS LONG CHANDLER
GENERAL ELECTRIC CAPITAL CORP 2.200%01/09/2020 DD 01/09/15
SEC ID:36962G9MO
B 3/11/2015 4,000,000.000 -4,015,560.00 4,015,560.00 0.00 -4,015,560.00 0.00 0.00
3/16/2015
OCSF07522202 OCS LONG CHANDLER
INTERNATIONAL FINANCE CORP 1.000%04/2412017 DD 04/24/12
SEC ID:45950EBS8
B 3/16/2015 5,000,000.000 -5,020,700.00 5,020,700.00 0.00 -5,020,700.00 0.00 0.00
3/17/2015
OCSM7522202 OCS LONG CHANDLER
JPMORGAN CHASE&CO 1.125%02/26/2016 DD 02/26/13
SEC ID:46623EJU4
B 3/20/2015 1,000,000.000 -1,002,380.00 1,002,380.00 0.00 -1,002,380.00 0.00 0.00
3/25/2015
OCSF00511102 OCS LIQ OP CHANDLER
TOYOTA AUTO RECENABLES 2 A A3 1.120%02/15/2019 DD 03/04/15
SEC ID:89236WAC2
PC 2/24/2015 3,595,000.000 -3,594,456.44 0.00 0.00 -3,594,456.44 0.00 0.00
3/4/2015
OCSF07522202 OCS LONG CHANDLER
U S TREASURY NOTES 0.500%02/28/2017 DD 02/28/15
SEC ID:912828J35
B 3/30/2015 10,000,000.000 -9,987,924A3 9,987,924A3 OAO -9,987,924A3 0.00 0.00
3/31/2015
OCSM7522202 OCS LONG CHANDLER
TOTAL SETTLED U.B.DOLLAR: .28,595,124.71 22,046,104.13 0.00 -28,595,124.71 0.00 0.00
0.001 0.00 T
0.00 C 0.00 S
TOTAL SETTLED FIEED INCOME -28,595,124.71 22,046j1 .13 0.00 .28,595,124.71 0.00 0.00
SECURITIES: 0.001 0.00 T
0.00 C 0.00 S
TOTAL SETTLED PURCHASES: -88,508,943.04 81,959,922.46 0.00 -88,508,943.04 0.00 0.00
0.001 0.00 T
0.00 C 0.00 S
SALES
CASH&CASH EQUIVALENTS
U.S. DOLLAR
411612015 5:01:42PM EDT 6 'Pending Settlement Workbench
Transaction Report Report ID: TE8355
BNY MELLON Base Cunene, USD
OCSD CONSOLIDATED -OCSG00010000 3/1/2015 - 3/31/2015 Status: FRIAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
BANK OF NEW YORK CASH RESERVE 0.063% 12/31/2049 DD 10/30/08
SEC ID:99WAH408
S 3/3/2015 -35,505.110 35,505.11 -35,505.11 0,00 35,505.11 0.00 0,00
3/3/2015
OCSM7522202 OCS LONG CHANDLER
BNY MELLON CASH RESERVE 0.010% 12/31/2049 DD 06/26/97
SEC ID:996087094
S 3/17/2015 -2,826.220 2,826.22 -2,826.22 0.00 2,826.22 0.00 0.00
3/17/2015
OCSM7522202 OCS LONG CHANDLER
DRIAWS TREAS&AGY CSH CSH MG VAR RP 12/31/2049 DD 04/09/97
SEC ID:996085247
S 3/3/2015 -1,998,813.100 1,998,813.10 -1,998,813.10 0.00 1,998,813.10 0.00 0.00
3/3/2015
OCSM511102 OCS UQ OP CHANDLER
S 3/4/2015 -6,549,020.580 6,549,020.59 -6,549,020.58 0.00 6,549,020.59 0.00 0.00
3/4/2015
OCSF07522202 OCS LONG CHANDLER
S 3/12/2015 -999,704.440 999,704.44 -999,704.44 0.00 999,704.44 0.00 0.00
3/12/2015
OCSFU7511102 OCS LIQ OP CHANDLER
S 3/13/2015 -9,994,233.300 9,994,233.30 -9,994,233.30 0.00 9,994,233.30 0.00 0.00
3/13/2015
OCSF07522202 OCS LONG CHANDLER
S 3/17/2015 -5,037,734.890 5,037,734.89 -5,037,734.89 0.00 5,037,734.89 0.00 0.00
3/17/2015
OCSM7522202 OCS LONG CHANDLER
S 3/18/2015 -2,023,665.000 2,023,665.00 -2,023,665.00 0.00 2,023,665.00 0.00 0.00
3/18/2015
OCSF07522202 OCS LONG CHANDLER
S 3/20/2015 -9,989,677.690 9,989,677.69 -9,989,677.69 0.00 9,989,677.69 0.00 0.00
3/20/2015
OCSM7522202 OCS LONG CHANDLER
S 3/25/2015 -1,003,286.250 1,003,286.25 -1,003,286.25 0.00 1,003,286.25 0.00 0.00
3/25/2015
OCSM7511102 OCS LIQ OP CHANDLER
S 3/31/2015 -9,941,396.090 9,941,386.09 -9,941,386.09 0.00 9,941,386.09 0.00 0.00
3/31/2015
OCSM7522202 OCS LONG CHANDLER
47,537,521.34 -47,537,521.34 0.00 47,537,521.34 0.00 nco
0.001 0.00 T
0.00 C 0.00 8
TOTAL SETTLED U.S.DOLLAR: 47,575,852.67 -47,575,852.67 0.00 47,575,852.67 0.00 0.00
0.001 0.00 T
0.00 C 0.00 S
411612015 5:01:42PM EDT 7 'Pending Settlement Workbench
Transaction Report Report ID: TX8355
BNY MELLON Base Cunene, USD
OCSD CONSOLIDATED -OCSG00010000 3/1/2015 - 3/31/2015 Statue FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
TOTAL SETTLED CASH is CASH 47,575,852.67 -47,575,852.67 0.00 47,575,852.67 0.00 0.00
EQUIVALENTS: 0.001 0.00 T
0.00 C 0.00 8
FIXED INCOME SECURITIES
U.B.DOLLAR
BAY AREA CA TOLL AUTH TOLL BRI 6.993%04/01/2030 DD 09/01/10
SEC ID:072024WS
S 3/19/2015 -1,300,000.000 1,665,443.00 -1,300,000.00 365,443.00 1,665,443.00 0.00 0.00
3/24/2015 365,443.001 0.00 T
OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S
NEW YORE NY 5.698%03/01/2027 DO 03/30/10
SEC ID:64966=0
S 3/19/2015 -1,300,000.000 1,566,344.00 -1,373,502.00 192,842.00 1,566,344.00 0.00 0.00
3/24/2015 192,842.001 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
TOTAL SETTLED U.S.DOLLAR: 3,231,787.00 .2,673,502.00 558,285.00 3,231,787.00 0.00 0.00
558,285.00 I (LOU T
0.00 C 0.00 S
TOTAL SETTLED FIXED INCOME 3,231,787.00 -2,673,50aW 558,285.00 3,231,787.00 0.00 0.00
SECURITIES: 558,285.00 I 0.00 T
0.00 C (LOU 8
TOTAL SETTLED SALES: 50,807,639.67 -50,249,354.67 558,285.00 50,807,639.67 0.00 0.00
558,285.00 I 0.00 T
0.00 C 0.00 S
PRHlCIPA.PAYMENTS
FDCED INCOME SECURITIES
U.B.DOLLAR
FHLMC POOL#98-6064 VAR RT 01/01/2028 DD 12/01/97
SEC ID:31348SWZ3
PC 2/1/2015 -15.470 15.49 0.00 0.00 15.49 0.00 0.00
3/16/2015
OCSM7522202 OCS LONG CHANDLER
PD 3/1/2015 -15.510 15.51 -15.13 0.38 0.00 0.00 0.00
3/1/2015 0.381 0.00 T
OCSF00522202 OCS LONG CHANDLER 0.00 C 0.00 S
15.47 O.OD MOD 15.47 0.00 O.OD
O.OD I 0.00 T
0.00 C 0.00 S
411612015 5:01:42PM EDT 8 'Pending Settlement Workbench
Transaction Report Report ID: TX8355
BNY MELLON Base Cunene, USD
OCSD CONSOLIDATED -OCSG00010000 3/1/2015 - 3/31/2015 Status: FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
FHLMC MULTICLASS MTG 582A 6,500%09/25/2043 DO 09/01/03
SEC ID:31394 35
PD 3/1/2015 -5,910.240 5,910.24 -6,693,35 -783.11 5,910,24 0.00 0.00
3/25/2015 -783.111 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C O.00 S
FHLMC MULTICLASS MTG E3 A VAR RT OS/15/2032 DO 12/01/97
SEC ID:3133ME95
PD 2/1/2015 -2,610.450 2,610.45 -2,613A8 -2.73 2,610A5 0.00 0.00
3/16/2015 -2.731 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
FNMA POOL#0257179 4.500%04/01/2028 DO 03/01/08
SEC ID:31371NUC7
PD 3/1/2015 -252.320 252.32 -266.85 -14.53 252.32 0.00 0.00
3/25/2015 -14.531 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
FNMA POOL#03579695.000%09/01/2035DD09/01/05
SEC ID:31376E722
PD 3/1/2015 -8,509.510 8,509.51 -9,147.72 -638.21 8,509.51 0.00 0.00
3/25/2015 -638.211 0.00 T
OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S
FNMA POOL804663973.400%11/01/202ODD11/01/10
SEC ID:31381PDM
PD 3/1/2015 -704.220 704.22 -688.98 15.24 704.22 0.00 0.00
3/25/2015 15.241 0.00 T
OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S
FNMA POOL#0745580 5.000%06/01/2036 DO 05/01/06
SEC ID:31403WM
PD 3/1/2015 -6,246.080 6,246.08 -6,714.54 -468.46 6,246.08 0.00 0.00
3/25/2015 -468.461 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
FNMA POOL#0748678 5.000%10/01/2033 DO 10/01/03
SEC ID:31403GXF4
PD 3/1/2015 -22.030 22.03 -23.68 -1.65 22.03 0.00 0.00
3/25/2015 -1.651 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C O.aa S
FNMA POOL#0815971 5000%03/01/2035 DO 03/01/05
SEC ID:31406PQYB
PD 3/1/2015 -15,312.030 15,312.03 -16,460.43 -1,148.40 15,312.03 0.00 0.00
3/25/2015 -1,148.401 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C O.00 S
FNMA POOL#0823358 VAR RT 02/01/2035 DD 04/01/05
SEC ID:31406X 5
PD 3/1/2015 -792.040 792.04 -785.85 6.19 792.04 0.00 0.00
3/25/2015 6.191 0.00 T
OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S
FNMA POOL#0826080 5.000%07/01/2035DD06/01/05
SEC ID:31407BXH7
411612015 5:01:42PM EDT 9 'Pending Settlement Workbench
Transaction Report Report ID: TSB355
PINY MELLON Base Cunene, USD
OCSD CONSOLIDATED -OCS000010000 3/1/2015 - 3/31/2015 Statue FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
PD 3/l/2015 -910,850 710.85 -764.16 -53,31 710.85 0,00 0.00
3/25/2015 -53.311 0.00 T
OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S
FNMA POOL#0888336 5.000%07/01/2036 DD 04/01/07
SEC ID:31410174V4
PD 3/1/2015 -16,530.680 16,530.68 -17,990.48 -1,239.80 16,530.68 0.00 0.00
3/25/2015 -1,239.801 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C O.00 S
FNMA POOL#OAL08694.500%06/01/2029DD09/01/11
SEC ID:3138EG6F6
PD 3/1/2015 -646.210 646.21 -683.43 -37.22 646.21 0.00 0.00
3/25/2015 -37.221 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C O.00 S
FNMA POOL#OMA0022 4.500%04/01/2029 DD 03/01/09
SEC ID:3141TYAY3
PD 3/1/2015 -1,557,290 1,557.29 -1,646.99 -89.70 1,557.29 0.00 0.00
3/25/2015 -89.901 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
FNMA GM REMIC P/T 09-114 A6 VAR RT 10/27/2037 DO 11/30/07
SEC ID:31396X3Q5
PD 2/28/2015 -1,120.600 1,120.60 -1,065.97 54.63 1,120.60 0.00 0.00
3/27/2015 54.631 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
FNMA GTD REMIC P/T 11-3 FA VAR RT 02/25/2041 DD 01/25/11
SEC ID:31397QRM
PD 3/25/2015 -14,046.120 14,046.12 -14,041.73 4.39 14,046.12 0.00 0.00
3/25/2015 4.391 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
GNMA GTD REMIC P/T 00-9 FH VAR RT 02/16/2030
SEC ID:3839H4NX9
PD 3/16/2015 -1,788.440 1,988.44 -1,988.44 0.00 1,988.44 0.00 0.00
3/16/2015
OCSM7522202 OCS LONG CHANDLER
GNMA lI POOL#0080023 VAR RT 12/20/2026 DO 12/01/96
SEC ID:36225CA 9
PD 3/l/2015 -195.750 195.75 -198.99 -3.24 195.75 0.00 0.00
3/20/2015 -3.241 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
GNMA R POOL#0080395 VAR RT 04/20/2030 DO 04/01/00
SEC ID:36225CNM4
PD 3/1/2015 -65.180 65.18 -64.59 0.59 65.18 0.00 0.00
3/20/2015 0.591 0.00 T
OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S
GNMA R POOL#0080965 VAR RT 07/20/2034 DO 07/01/04
SEC ID:36225DCB8
411612015 5:01:42PM EDT 10 'Pending Settlement Workbench
Transaction Report Report ID: TX8355
BNY MELLON Base Cunene, USD
OCSD CONSOLIDATED -OC8G00010000 3/1/2015 - 3/31/2015 Statue FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
PD 3/l/2015 -1,161.410 1,16141 -1,160,68 0,73 1,16141 0,00 0.00
3/20/2015 0.731 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
GNMA lI POOL#080088M VAR RT 06/20/2027 DD 06/01/97
SEC ID:36225CC20
PD 3/1/2015 -298.830 298.83 -305.37 -6.54 298.83 0.00 0.00
3/20/2015 -6.541 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
GNMA lI POOL#080408X VAR RT 05/20/2030 DO 05/01/00
SEC ID:36225CN28
PD 3/1/2015 -1,359.540 1,359.54 -1,345.73 13.81 1,359.54 0.00 0.00
3/20/2015 13.811 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
NCUA GUARANTEED NOTES TR Cl Al 1.600% 10/29/2020 DD 11/10/10
SEC ID:62888XAA2
FC 2/27/2015 -35,087.300 35,087.30 0.00 0.00 35,087.30 0.00 0.00
3/2/2015
OCSF07522202 OCS LONG CHANDLER
PD 3/27/2015 -41,259.990 41,259.99 -41,366.36 -106.37 41,259.99 0.00 0.00
3/27/2015 -106.371 0.00 T
OCSM7522202 OCS LONG CHANDLER 0.00 C 0.00 S
76,347.29 .41,366.36 -106.37 76,347.29 0.00 0.00
-106.371 0.00 T
0.00 C 0.00 S
NCUA GUARANTEED NOTES TR R2 IA VAR RT 11/06/2017 DO 11/17/10
SEC ID:62888UAA8
PDC 1/5/2015 10,901.190 -10,901.19 10,901.14 -0.05 -10,901.19 0.00 0.00
1/8/2015 -0.051 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
PO 1/5/2015 -10,904.550 10,904.55 -10,904.50 0.05 10,904.55 0.00 0.00
1/8/2015 0.051 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
PD 3/5/2015 -8,853.320 8,853.32 -8,853.28 0.04 8,853.32 0.00 0.00
3/9/2015 0.041 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
8,856.68 -8,856.64 0." 8,856.68 0.00 0.00
0.041 0.00 T
O.DD C 0.00 S
SEA GM PARTN CTFS 2001-20C 1 6.340%03101/2021
SEC ID:83162CWO
PD 3/1/2015 -23,382.060 23,382.06 -23,382.06 0.00 23,382.06 0.00 0.00
3/2/2015
OCSF07522202 OCS LONG CHANDLER
SOUNDVIEW HOME LOAN TR OPTS A4 VAR RT 11/25/2035 DD 09/30/05
SEC ID:83611MGS1
411612015 5:01:42PM EDT l i 'Pending Settlement Workbench
Transaction Report Report ID: TXS355
PINY MELLON Base Cunene, USD
OCSD CONSOMDATED -OCSG00010000 3/1/2015 - 3/31/2015 Blame: FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
PD 3/25/2015 -13,407.960 13,40796 -11,836.72 1,571,24 13,40796 0,00 0.00
3/25/2015 1,571.241 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
WELLS FARGO HOME EQUITY 2 AI6 VAR RT 10/25/2034 DD 09/01/04
SEC ID:94980GAG6
PD 3/1/2015 -15,927.050 15,927.05 -15,807.60 119.45 15,927.05 0.00 0.00
3/25/2015 119.451 0.00 T
OCSF07522202 OCS LONG CHANDLER 0.00 C 0.00 S
TOTAL SETTLED U.S.DOLLAR: 217,776.33 -185,480.52 -2,806.96 217,776.33 0.00 0.00
-2,SO6.96 1 0.00 T
0.00 C 0.00 S
TOTAL SETTLED FIXED INCOME 217,776.33 -185,480.52 -2,806.96 217,776.33 0.00 0.00
SECURITIES: -2,906.96 1 0.00 T
coo 0.00E
TOTAL SETTLED PRINCIPAL PAYMENTS: 217,776.33 .185,480.52 -2,806.96 217,776.33 0.00 0.00
-2,806.96 1 0.00 T
0.00 C o.00 S
MATURITIES
CASH&CASH EQUIVALENTS
U.B.DOLLAR
EXXON CORP DISC 03/16/2015
SEC ID:30229BQG5
MT 3/16/2015 -7,500,000.000 7,499,062.50 -7,499,062.50 0.00 7,499,062.50 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
FEDERAL HOME LN MM CORP DISC 0.000%03/11/20I5 DO 03/I1/14
SEC ID:313396CX9
MT 3/11/2015 -23,800,000.000 23,994,929.64 -23,794,929.64 0.00 23,994,929.64 0.00 0.00
OCSF07522202 OCS LONG CHANDLER
FEDERAL HOME LN MM CORP DISC MAT 03/09/2015
SEC ID:313396CV3
MT 3/9/2015 -2,000,000.000 1,999,813.34 -1,999,813.34 0.00 1,999,813.34 0.00 0.00
OCSM7511102 OCS LIQ OP CHANDLER
TOTAL U.S.DOLLAR: 33,293,603.48 -33,293,603.48 0.00 33,293,603.48 0.00 0.01
0.001 0.00 T
0.00 c 0.00 S
TOTAL CASH 8:CASH EQUIVALENTS: 33,293,603.48 -33,293,603.49 0.00 33,293,603.48 0.00 0.00
0.001 0.00 T
0.00 C 0.00 S
411612015 5:01:42PM EDT 12 'Pending Settlement Workbench
Transaction Report Report ID: TX8355
BNY MELLON Base Cunene, DSO
WED CONSOLIDATED -0C8G00030000 3/1/2015 - 3/31/2015 Status: FINAL
Trade Date Investment Investment Settle Date Currency Currency
Tran Effective Date Amount Cost Gain/Loss Amount Cost Gain/Loss
Code Settle Date Shares/Par Base Base Base Base Base Base
FIXED INCOME SECURITIES
U.S.DOLLAR
FEDERAL NATL MTG ASSN 0.375%03/16/2015 DD 02/06/12
SEC ID:3135GOHG1
MT 3/16/2015 -2,000,000.000 2,000,000.00 -2,001,040.00 -1,040.00 2,000,000.00 0.00 0.00
0CSF07511102 OCS UQ OP CHANDLER -1,040.001 0.00 T
0.00 C 0.00 S
JPMORGAN CHASE&CO 1.875%03/20/2015 DO 03/21/12
SEC ID:46623EJP5
MT 3/20/2015 -633,000.000 633,000.00 -640,292.16 -7,292.16 633,000.00 0.00 0.00
0CSF07511102 OCS UQ OP CHANDLER -7,292.161 0.00 T
0.0o C 0.00 S
PRAXAIR INC 4.625%03/30/2015 DD 03/07/08
SEC ID:74005PAR5
MT 3/30/2015 -387,000.000 387,000.00 -401,539.59 -14,539.59 387,000.00 0.00 0.00
0CSF07511102 OCS LIQ OP CHANDLER -14,539.59 1 0.00 T
0.00 C O.00 S
UNGEDHEALTH GROUP INC 4.875%03/15/2015 DD 03/07/05
SEC ID:91324PAM4
MT 3/15/2015 -604,000.000 604,000.00 -626,967.92 -22,967.92 604,000.00 0.00 0.00
0CSF07511102 OCS UQ OP CHANDLER -22,967.92 1 0.00 T
0.00 C 0.00 S
TOTAL U.S. DOLLAR: 3,624,000W -3,669,839.67 -45,839.67 3,624,000.00 0.00 0.00
-45,839.67 I 0.00 T
0.00 c 0.00 S
TOTAL=D INCOME SECURITIES: 3,624,000.00 -3,669,839.67 -45,839.67 3,624,000.00 0.00 0.00
-45,839.67 I 0.00 T
0.00 C 0.00 8
TOTAL MATURITIES: 36,917,603.48 -36,963,443.15 45,839.67 36,917,603.48 0.00 0.00
-45,839.671 0.00 T
0.00 C 0.00 8
GRAND TOTAL ACTIVITY: -565,923.56 -5,502,859.88 509,638.37 -565,923.56 0.00 0.00
509,638.37 I 0.00 T
0.00 C 0.00 8
411612015 5:01:42PM EDT 13 'Pending Settlement Workbench
Callan
March 31,2015
Orange County Sanitation District
Investment Measurement Service
Quarterly Review
The following report was prepared by Callan Associates Inc. ('CAI") using 'information from sources that include the following: fund truetee(s); fund
custodian(s);investment humeri CAI computer software;CAI Investment manager and fund sponsor database;third party data vendors;and other outside
sources as directed by the client.CAI assumes no responsibility for the accuracy or completeness of the Iformadon provided,or methodologies employed by
any information providers external to CAI.Reasonable care has been taken to assure the accuracy of the CAI database and computer software.Callan does
not provide advice regarding, nor shall Callan be responsible for, the purchase, sale, hedge or holding of individual secum es, including, without limitation
securities of the client(i.e.,company stock)or derivadves In the client's accounts.In preparing the follh ing report,CAI has not reviewed the naks of individual
security holdings m the conformity of individual security holdings with the client's Investinent policies and guidelines,nor has it assumed any responsibility to do
so.Advice pertaining to the minus of individual securities and derivatives should be discussed with a third party secunties expert Copyright 2015 by Callan
ASBoaates Inc.
Table of Contents
March 31, 2015
Capital Market Review 1
Active Management Overview
Market Overview 9
Domestic Fixed Income 10
Asset Allocation
Investment Manager Asset Allocation 12
Investment Manager Returns 13
Asset Class Risk and Return 17
Manager Analysis
Chandler-Long Term Operating Fund 19
Chandler-Liquid Operating Money 23
Callan Research/Education 25
Definitions 30
Disclosures 35
Callan
Orange County Sanitation District
Executive Summary for Period Ending March 31, 2015
Asset Allocation
March 31, 2015
Market Value Weight
Domestic Fixed Income
Long Tenn Operating Fund' 386,837,796 88.66%
Total Fund $436,299,024 100.0%
Performance
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Fund^ 0.75% 2.02% 1.22% 2.33% 2.98%
Chandler 0.75% - - - -
Barclays Govt/Cred 1-5 Year ldx 0.96% 1.99% 1.45% 2.18% 2.69%
ML1-5 Govt/Corp 1.00% 2.08% 1.56% 2.25% 2.74%
Liquid Operating Monies^ 0.06% 0.14% 0.14% 0.17% 0.43%
Chandler 0.06% - - - -
Citicrouo3-Month Treasury Bill 0.01% 0.03% 0.05% 0.07% 0.23%
Total Fund 0.67% 1.79% 1.09% 1.97% 2.54%
Target' 0.80% 1.66% 1.25% 1.81% 2.23%
Current Quarter Target=80.0%ML 1.5 QovOCoip and 20.0%3mo T-Bills.
AAssets were transfemn!in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Recent Developments
During the quarter, $58.0 million was withdrawn from the total portfolio. $50.5 million came
from the Long Term Operating Fund and $7.5 million from the Liquid Operating Monies.
Chandler Asset Management started managing the Long Term Operating Fund and Liquid
Operating Monies on 12/1/14.
Orga n izati onal Issues
N/A
Manager Performance
Interest rate volatility increased during the first quarter as investors speculated over the
timing of the Fed's widely expected interest rate hike while the ECB announced its asset
purchase program, which is intended to stimulate growth and combat deflation. The 10-year
U.S. Treasury note began the calendar year at 2.17%, hit an intra-quarter low of 1.68% on
Callan o,a�9e�umvsaniWfionNsMd
Ppn128,2015
January 30', and then a peak of 2.24% on March 6th before closing the quarter at 1.94%,
which is 23 bps lower than at year-end. The 30-year Treasury bond hit an all-time low in
January of 2.35% and closed the quarter at 2.54%. The yield curve shifted downward and
the Barclays Aggregate index returned 1.6%. Investment grade credit performed well during
the quarter(Barclays Credit Index: +2.2%)as investors absorbed record issuance.
The Long Tenn Operating Portfolio returned 0.75% in the 1" quarter, underperforming the
ML 1-5 Govt/Corp Index (+1.00%) and ranking 26' percentile versus peers. Securities were
transferred in-kind from PIMCO to Chandler in December of 2014. Chandler is tasked with
re-positioning the portfolio in a manner they believe to be consistent with OCSD's objectives.
This has resulted in some legacy securities being sold, making a decision to allow some
legacy securities to mature, and in some cases consider legacy securities as core holdings of
the portfolio. The portfolio is still transitioning making it difficult to assess their relative
performance. The Portfolio had less than 30% invested in credit and less than the permitted
20% invested in the combination of asset-backed securities, mortgages, and CMOs as of
March 31, 2015 (see page 22).
The Liquid Operating Portfolio returned 0.02% (after fees) in the quarter, which was ahead of
the return of the 3-Month Treasury Bill (+0.01%). Interest rates remain very low on the short
end of the yield curve. The Portfolio returned -0.01% (after fees)for the trailing year.
Gordon M. Weightman, CFA
Vice President
2
Capital Market Review
CALL AN
Callan INSTITUTE INVIES MNTS
CMR
Preview
First Quarter 2015
This "Preview" contains excerpts from the upcoming Capital Broad Market Quarterly Returns
Market Review (CMR) newsletter, which will be published at
the end of the month. U.S.Equity(Russell 3000) —+1.80%
Non-U.S.Equily(MSCI ACWI ex USA) — +3.59%
Subdued Returns U.S.Fixed(Barclays Aggregate) +1.61%
4,M% — Non-U.S.Fixed(CM Non-U.S.)
U.S. EQUITY I Lauren Mathias, CFA Cash(90-Day T-BIIIs) o.00%
Sources:6amlays,Cirigroup,Merrill Lynch,MSCI,%sselllm dnom Group
The first quarter's ups and downs resulted in only a slight net
increase for U.S. equities as represented by the S&P 500
Index (+0.95%). The U.S. economy made some progress—a New Year's Rally
drop in gasoline prices fueled consumer spending,an increase
in jobs decreased unemployment (5.5%), and fourth-quarter U.S. FIXED INCOME I Nathan Wong, CFA
GDP growth was confirmed at a modest 2.2%, albeit down
The yield On the 10-year U.S. Treasury note declined for the
from a 5.0% pace in the third quarter. Despite this, Fed Chair
fifth straight quarter as divergent central bank policies around
Janet Yellen remained conservative in her plan to raise interest
the globe began to take hold. Long Treasuries again outper-
Continued on pg.z formed intermediate Treasuries as rates dropped. High yield
The Waiting Game Continued on pg.4
NON-U.S. EQUITY I Matt Lai
How Low Can You Go?
Markets across the globe shook off a historic oil slump to kick NON.U.S. FIXED INCOME I Kyle Fekete
off the year in the black. Individual countries largely advanced
in local terms, though pockets of economic unrest left a sharp Currency effects and declining yield curves defined the world's
sting in isolated markets. Foreign investors await the arrival bond markets. U.S. dollar-denominated and dollar-hedged
of the elusive "recovery" that only the U.S. enjoys for now. securities outperformed their local currency-denominated
Market volatility in January and March could not stop a largely counterparts. The Citi Non-U.S. World Government Bond
ascendant February forthe MSCIACWI ex USA Index,which Index (Hedged) increased 2.25%, beating its unhedged
advanced 3.59% in the first quarter.A shuffle in Health Care equivalent (Citi Non-U.S. World Government Bond Index:
sent stocks soaring(+10.63%);Utilities(-4.53%)and commod- -4.36%) by 6.61%. European bonds rallied in the wake of
ities-burdened Energy(-4.04%)were the only drag on non-U.S. the ECB's quantitative easing announcement. However, the
sectors. Crude oil stayed low,ending March under$50/barel. auro's 11% decline against the U.S. dollar offset gains in
Continued on pg.3 Continued on pg.5
Knowledge. Experience. Integrity.
U.S. Equity: Subdued Returns Quarterly Performance of Select Sectors
Continued from pg. 1
•Russell 1000 •Russell 2000
rates, indicating it will be a slow process. The strengthening 15%:
U.S. dollar challenged large multinationals while quantitative 12%,
easing in Europe helped bolster economic growth abroad. s%: 7.9%
6%'
Though the broad U.S. equity market delivered subdued 3%' z.o% 1a%
0.9%
returns, areas of strength persisted. Growth did much better o%
IIIIIIIIIN
than value with the outperformance of momentum and quality
factors and the underperformance of dividend yields.In the first -6%' ' ' ' 4.1%
quarter,investors preferred high beta,high growth,and smaller Health care Telecomm Financials utili9es
market capitalization companies. Volatility declined and as a Source:Russell Investment Soup
result market participants took on more risk.
Growth sectors such as Health Care and Technology trumped Large cap stocks trailed this quarter (Russell 1000 Index:
value sectors including Financials, Telecommunications, and +1.59%) and growth trounced value (Russell 1000 Growth
Utilities. Energy stocks were weak again on the heels of vola- Index: +3.84%; Russell 1000 Value Index: -0.72%). Small
tile oil prices. For active investment managers,sector position- (Russell 2000 Index: +4,32%)and mid cap(Russell Mid Cap
ing away from defensive areas and into cyclicals paid off. A Index: +3.95%)stocks reclaimed their performance advantage
preference for smaller, higher-growth and higher-beta stocks and small cap growth retained its lead on value. Small cap
provided an additional tailwind. growth now beats small cap value in all annualized time periods
of less than 10 years; beyond that value is on top. Micro cap
Rolling One-Year Relative Returns (vs. Russell 1000) could not maintain its strong fourth-quarter performance but still
posted a positive return(Russell Microcap Index: +3.14%).
•Russell 1000 Gro.Nh •Russell 1000 Value •Russell 1000
30% Small and large cap sectors exhibited much different quarterly
results. Large cap Utilities declined substantially while Health
2096 Care—which was a positive contributor to both market ceps—
was much stronger in small cap.Utilities companies were pun-
ished as the expectations for rising interest rates continued.
0% Atil Merger and acquisition activity was prevalent in the Health
Care sector and smaller cap companies benefitted. Energy
-1n%----- - ------------------- was the only sector in which both small and large cap declined;
-20%________ __________________ _ _ _ _ weakening oil prices hurt oil services and exploration and pro-
duction companies.Though large cap trailed small cap overall
-30%1,1"I"'I"'I""•"i•• I" „I , 1. ,I.. I" ^ "'I, I•..I 'I"9"'1^9I for the quarter, longer-term returns (one, three, and five years
9596 97 98 99 00 0102I "�0304 05 06 07 08 09 10 11 12 13 1415
Source:Russell lnvestmenlGroup annualized)show large cap outpacing small.
2 I Callan
Non-U.S. Equity: The Waiting Game Rolling One-Year Relative Returns(vs.MSCI EAFE U.S. Dollar)
Continued from pg. 1
•MSCI Pacific •MSCI Europe a MSCI EAFE
The developed MSCI World ex USA Index (+3.83%) beat 40%
the MSCI Emerging Markets Index (+2.28%)for the second 30% _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
consecutive quarter. MSCI ACWI ex USA Growth (+4.89%) 20% - - - - - - - - - - - - - - - - - - - - - - - - -
_ _ _ _ _ _ _ _
stocks far outpaced MSCI ACWI ex USA Value (+2.24%) 10% _ _ _ _ _ _ _ _ _ _ _
counterparts once again. Small cap stocks provided a healthy o%
boost (MSCI ACWI ex USA Small Cap: +4.01%). Canada -10%
(-6.04%) continued to smart from the oil slump and ended up -20%
as the largest drag on the developed world outside the U.S. -30% _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
969697 Gup 00010203 p ul 060607 ui put 10 /11213 pull
9598 W 95 99 00 O1 02 03 04 OS OB 0] OS OB 10 11 12 13 1415
Europe supplied one of 2015's earliest economic headlines Source:MSCI
after a€1.1 trillion stimulus plan was unveiled to thwart defla-
tion and reignite growth in the region (MSCI Europe Index: bucking two quarters of contraction. Only Japan's Energy
+3.45%). E.U. unemployment continued its marginal slide to names slid into the red (-0.66%), while consumer stocks
9.8% in February (from 9.9% at 2014's end), and the sum's soared (Consumer Discretionary: +10.52%; Consumer
11% fall against the U.S. dollar saw retail soar (Consumer Staples: +16.43%). However, inflation continued to notch
Discretionary: +821%). Advances in Health Care research downward and unemployment rates remained volatile.
boosted Denmarkto the fore of the developed world (+15.82%). Singapore dipped 1.91%.
The U.K. (-0.96%) and Spain (-0.57%) were the only drags
on the region, hampered mostly by a strong dollar and weak EM Asia (+5.26%) carried the broad emerging category.
Utilities (European Utilities: -8.51%). The focus shifts to the Accelerating infrastructure projects and a raised GDP growth
U.K.'s parliamentary elections in May and to ongoing E.U.talks forecast(+6.7% in 2015)sent the Philippines(+10.18%)to first
with emerging Greece(more below). place. China advanced 8.12% on solid Information Technology
performance (+32.32%) and robust factory activity in March.
Keeping with the previous quarter, the MSCI Pacific Index China's picture was slightly marred by ever-increasing hous-
trumped Europewith a strong gain of 7.61%.Japan(+10.21%) ing vacancies as well as an anticipated GDP growth rate of 7%
led the region, as fourth-quarter 2014 GDP grew 1.5% this year, continuing a worrisome decline. Russia (+18.61%)
rebounded from a crushing fourth quarter as oil prices stabilized.
Regional Quarterly Performance (U.S.Dollar)
At the other end, Greece fell furthest (-29.32%) as Alexis
MSCI Japan 10.21% Tsipras's anti-austerity Syriza party swept the nation's January
MSCI Mild ex USA 3.93%
elections. Soaring debt coupled with troubled talks with E.U.
-
leadership cast further doubt on its future with the euro zone.
MSCI ACWI ex USA -3,59%
Significant unrest over President Dims Rousseffs involvement
MSCI Europe - 3,45% in the Petrobas scandal hurt Brazil (-14.57%), mirroring a res-
MSCI Pacific ex Japan -3.13% five EM Latin America(-9.49%).The MSCI Frontier Markets
MSCI Emerging Markets _2.29% Index(-2.93%)echoed the burden of the strong dollar.
Source:MSCI
Knowledge. Experience. Integrity. I 3
U.S. Fixed Income: New Year's Rally
Continued from pg. 1
credit spreads compressed more than investment grade credit an all-time record,as companies took advantage of the low rate
spreads, which were largely unchanged during the quarter. environment. On a duration-adjusted basis, Financials outper-
The Barclays Aggregate Index climbed 1.61%. formed Industrials and Utilities. Although MBS gained 1.06%,
volatility in the 10-year U.S. Treasury led to MBS underpertor-
At the end of March, more dovish comments from the Fed on mance of 50 bps against like-duration U.S. Treasuries. High
raising the federal funds rate drove yields lower across the yield bonds performed well as investors continued to search for
curve.The 2-to 30-year spread tightened from 2.08%at year- yield.The Barclays Corporate High Yield Index rose 2.52%.
end to 1.98%. The short end of the curve declined the least
with the two-year yield ending 11 bps lower. Returns increased
moving farther out along the curve.The 30-year Treasury yield Fixed Income Index Quarterly Returns
dropped 22 bps over the quarter and gained 5.05%.
Absolute Return
Inflation-protected securities gained 1.4% as measured by Send.,Aggregate I— _
Barclays Treasury
the Barclays TIPS Index. The 10-year break-even inflation Barclays Agencies ttrA
rate ended the quarter at 1.76%, a marginal increase from Barclays cMas
the end of 2014. Barclaiii
Barclays MBS
Corporate credit returns were strong across the rating spectrum. Bardays credit ilex
Barclays Gory.High Yield 2.52%
The Barclays Corporate Index returned 2.32%. Corporate 0% 1% 2% 3%
issuance came at a blistering pace in the first quarter, setting Source:Barclays
Historical 10-Year Yields U.S.Treasury Yield Curves
•USAO-Year Treasury Yield 010-Year TIPS YIeld *Sreakeyan Inflation Rate • March 31,2015 GDooduber31,2014 •MaIeh31,2014
5%
6%
5% 4%
4% ——————— --————
---------------
3%__________ 3% _______________ ___________.
_ __ _ _ ______ ___
2%�__ _ _ _ _ _ _
// 2% _ _ _ _ __ _ _ _______________-
1%---------- ____ ------------
0% 1%
OS Ofi 07 OB 09 15 10 11 12 13 16 15 0%
Scurce:Bloomberg 0 5 10 15 20 25 30
Maturity(Yours)
Scurce:Bloomberg
4 I Callan
Non-U.S. Fixed Income: How Low...? Emerging Spreads Over Developed (By Region)
Continued from pg. 1
•Emeging Amence, •Emerging EMEA(indse,Middle Eaµii OEm Ming Asla
unhedged portfolios. The ECB announced on March 9th that 600 aps
it would purchase€l.1 trillion over the next 18 months,includ-
ing sovereign and corporate bonds, in order to avert deflation
and encourage lending. Rates around the globe continued 400 bps ___ _ _
their descent in spite of record low yields in many countries.
German 10-year bunds, the euro zone's proxy for sovereign 200 bpe
debt, declined 36 bps to end the quarter at 0.18%-1.76%
below comparable U.S. Treasuries. The bond-buying pro-
gram also spurred demand for peripheral bonds; Italian 0b, ' ' ' ' ' '
10 it 12 13 14 15
and Spanish 10-year bond yields declined 68 and 71 bps, Spume:Bamiaya
respectively.The threat of a 'Grexit"weighed on investor risk
sentiment, but a last-minute agreement on a bridging loan
provided a short-term resolution. Greek debt finished the 10-Year Global Government Bond Yields
quarter yielding 11.6%.
•U.S.Treasury •Germmry ill •Cenaas •Japan
The Commonwealth provided investors with attractive spreads 6%
relative to other developed markets. The U.K. 10-year yield 5% - - - - - - - - - - - - - - - - - - - - - - - - - -
ended the quarter at 1.58% and the Bank of England held 4% _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
rates at a record low for the sixth consecutive year.Australia's a% - -------- -
benchmark 10-year yield ended at 2.32%; the yield spread
2%_ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - -
above Treasuries has declined from 100 bps in the middle of
last year to only 40 bps as of quarter end. With the goal of 1% - - - - - - - - - - - - - - - - - - - - - - - - - -
spurring growth, Australia out its lending rate to a record low OKI I . . . I . . . i i . . . 11
in February as the country's currency slid 7% against the U.S. 05 06 07 03 09 m 11 12 13 14 15
dollar.The Canadian 10-year yield finished at 1.36%.
Change In 10-Year Ylelda from 4Q74 to1Q15
-
The Bank of Japan maintained the status quo with near-zero -25 bps U S.Treasury
-
interest rates and continued debt purchases as revised fourth-
IS bps Germany
-
quarter economic growth figures were too low to avoid contreo- -13 bps U.K.
Lion.The Japanese 10-year yield increased 8 bps to 0.41%. 43 bps - Canada
Japan _a bps
-5011 -0Obps -30bps -20bps -10bps Obps 10bps
Within the emerging markets, the dollar-denominated JPM Soama.Bippmbe,y
EMBI Global Diversified Index gained 2.01%, while the
local currency JPM GBI-EM Global Diversified Index plum-
meted3.96%due to overall weakness against the greenback. down more than 40% year-over-year. Fellow BRIC country
Russian bonds recovered despite downgrades from Moody's Brazil experienced a deteriorating credit outlook. The coun-
and Standard & Poor's at the beginning of the year. Russia's try's local currency bonds fell 15%, hurt by a potential down-
local currency-denominated bonds gained 15% but are still grade and a currency that slid 17%versus the U.S.dollar.
Knowledge. Experience. Integrity. 5
This"Preview"contains excerpts from the upcoming Capital Market Review(CMR)newsletter,which will
be published at the end of the month.The CMR is a quarterly macroeconomic indicator newsletter that
provides thoughtful insights on the economy and recent performance in the equity,fixed income,alterna-
tives, international, real estate,and other capital markets.
If you have any questions or comments,please email institute@callan.com.
Editor-in-Chief—Karen Witham
Performance Data—Alpay Soyoguz, CFA;Adam Mills
Publication Layout—Nicole Silva
About Callan
Callan was founded as an employee-owned investment consulting farm in 1973. Ever since, we have
empowered institutional clients with creative, customized investment solutions that are uniquely backed
by proprietary research,exclusive data,ongoing education,and decision support.Today,Callan advises
on more than$1.8 trillion in total assets,which makes us among the largest independently owned invest-
ment consulting firms in the U.S. We use a client-focused consulting model to serve public and private
pension plan sponsors,endowments,foundations,operating funds,smaller investment consulting firms,
investment managers,and financial intermediaries. For more information,please visit www.callan.com.
About the Callan Investments Institute
The Callan Investments Institute, established in 1980, is a source of continuing education for those in
the institutional investment community.The Institute conducts conferences and workshops and provides
published research,surveys,and newsletters.The Institute strives to present the most timely and relevant
research and education available so our clients and our associates stay abreast of important trends in the
investments industry.
®2015 Callan Associates Inc.
Certain information herein has been compiled by Callan and is based on information provided by a variety of sources believed to
he reliable for which Callan has not necessarily verified the accuracy or completeness of or updated.This report Is for Informational
purposes only and should not be cons Wed as legal or tax ativlce on any matter.Any Investment decision you make on the basis of
this report is your sole responsibility You should consult with legal and tax wall before applying any of this Information to your
particular situation.Reference in this report to any product,service or entity should not be construed as a recommendation,approval,
of illation or endorsement of such product,service or entity by Callan.Past performance is no guarantee of future results.This report
may consist of statements of opinion,which are made as of the date they are expressed and are not statements of fed.The Callan
Investments Institute(the"Institute")Is,and will be,the sole owner and copyright holder of all material prepared or developed by the
Institute.No parry has the right to reproduce,revise,resell,disseminate extil ly disseminate to subsidiaries or parents,or post on
'internal said sites any part of any materal prepared or developed by the Institute,without the Institule's permission.Institute clients
only have nine right to utilize such material internally in their business.
6 Callan
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
domestic equity manager database.
Range of Separate Account Manager Returns by Asset Class
One Quarter Ended March 31,2015
8%
6%
58)
4%
�
Ps) (33)
E 2% (57)
o
o%
(2%)
(4%) (73)
(6%) Domestic Non-US Domestic Non-US Real Cash
Equity Equity Fixed Income Fixed Income Estate Equivalents
S&P Soo MSCI EAFE Barclays Aggr Ed cut Non-US Gov NCREIF Index 3 Mon T-Bills
10th Percentile 661 6.54 3.10 �143) 3.86 0.48
25th Percentile 501 5.96 2.28 3.20 3.23 01.35
Median 301 5.05 1.69 3.89 2.54 0.20
75th Percentile 1.14 4.11 1.35 4.43 1.58 0.06
90th Percenole (025) 3.28 0]2 4.58 0.84 0.03
Index ♦ 095 4.88 1.61 (4.36) 3.04 0.00
Range of Separate Account Manager Returns by Asset Class
One Year Ended March 31, 2015
30%
25%
20%
m 150% (3
5)A (53)
1
5% (341�
0%
(5%)
(to%) (6f17
(15%) Domestic Non-US Domestic Non-US Real Cash
Equity Equity Fixed Income Fixed Income Estate Equivalents
vs vs vs vs
S&P 500 MSCI EAFE Barclays Aggr Ed Citi Non-US Gov NCREIF Index 3 Mon T-Bills
10th Percentile 16.55 3.74 9.17 (148) 2240 1.11
25th Percentile 13.87 1.74 6.00 (5.36 1]BB 0.81
Median 11.08 0.13 4.29 (896 1305 0.55
75th Percenole T.81 ((1.75) 2.61 is 43 9,50 0.23
such Percentile 3]9 (4.01) 1.26 (9.92 892 0.09
Index ♦ 12.73 (0.92) 5.72 (9.82) 12,14 0.03
Callan Orange County Sanitation District B
Domestic Fixed Income
Active Management Overview
Interest rate volatility increased in the list quarter of 2015 as investors speculated over the timing of the Fed's widely
expected interest rate hike while the European Central Bank announced a massive asset purchase program to stimulate
growth and combat deflation. In the U.S., data suggested that the recovery was losing momentum given headwinds from a
harsh winter, a strong dollar and weak global demand. The Barclays U.S. Aggregate Index returned 1.61% for the quarter.
Within the Aggregate Index, corporates outperformed like-duration U.S. Treasuries by a modest 27 bps as investors easily
absorbed record new issuance. The Mortgage sector returned 1.06%, underperforming US Treasuries, and was the worst
performing sector in the Barclays Aggregate. High yield rebounded from a poor 4th quarter with many of the higher quality
energy names bouncing back.The Barclays High Yield Index was up 2.52%for the quarter.
Longer duration managers outperformed intermediate and short duration strategies in the list quarter as interest rates
dropped.The yield curve continued to flatten with long bond yields falling more than short-term yields. The median Extended
Maturity manager returned 3.25% while the median Intermediate manager posted a 1.43% return and the median Defensive
manager returned 0.66%.
Barclays Universal. 1.73%
Barclays Aggregate: 1.51%
BarclaSeparate Account Style Group Median Returns Bardays Mortgagelt 1.06%
for Quarter Ended March 31, 2015 Barclays High Yield: 2.52%
Barclays US TIPS. 1.42%
5%
4%
3.25%
3% ——————————————————————— ——————————————
E 262%
c
d
of 2%
1.43% L53%
8%
0.85%
0.35%
0%
Active Defensive Interned Core Core Extended Active Mortgage High
Cash Bond Plus Maturity Duration Backed Yield
Barclays Universal: 5.32%
Barclays Aggregate: 5.72%
Separate Account Style Group Median Returns Barclays Mortgage: 5.53%
for One Year Ended March 31,2015 Barclays High Yield: 2.00%
Barclays US TIPS: 3.11%
20%
15% ----------------------- 15.22%
--------------
E
3 10% ----------------------- ______________
f
5.al 5.70% 5.84%
5% ——————————————
3.73% 3.g3%
2.48%
1.40%
0.7Sir
0%
Active Defensive Interned Core Core Extended Active Mortgage High
Cash Bond Plus Maturity Duration Backed Yield
Callan Orange County Sanitation District t0
Asset Allocation
Investment Manager Asset Allocation
The table below contrasts the distribution of assets across the Fund's investment managers as of March 31, 2015, with the
distribution as of December 31,2014.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
March 31,2015 December 31,2014
Market Value Weiaht Net New Inv. Inv. Return Market Value Welahl
Domestic Fixed Income
Long Tema Operating Fund' W6.83],]96 88.66% (50,500,000) 3.297,853 434,039,944 88.40%
Licuid OperaintoMonies' 49,461,228 11. 4 ] 1 56929628 11,60%
Total Fund $438,299,024 100.0% $(58,000,000) $3,329,452 $490,969,572 100u%
'Chandler replaced PIMCO during the 4U Quarter of 2014,Assets were transferred in-kind as of 12MIM014.
Callan Orange County Sanitation District 12
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended March 31,
2015. 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 March 31,2015
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Fund^ 0.75% 2.02% 1.22% 2.33% 2.98%
Chandler 0.75% - - - -
Barclays Govt/Cred 1-5 Year Idx 0.96% 1.99% 1.45% 2.18% 2.69%
ML 1-5 Govt/Corp 1.00% 2.08% 1.56% 2.25% 2.74%
Liquid Operating MoniesA 0.06% 0.14% 0.14% 0.17% 0.43%
Chandler 0.06% - - - -
CitiarouD 3-Month Treasury Bill 0.01% 0.03% 0.05% 0.07% 0.23%
Total Fund 0.67% 1.79% 1.09% 1.97% 2.54%
Target* 0.80% 1.66% 1.25% 1.81% 2.23%
"Current Quarter Target=80.0% ML 1-5 Govt/Corp and 20.0%3mo T-Bills.
AAssets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Callan orange County 5annation Distract is
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended March 31,
2015. 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 March 31,2015
Last Last Last
10 15 19.1/2
Years Years Years
Domestic Fixed Income
Long Term Operating Fund^ 3.81% 4.41% 4.79%
Barclays Govt/Cred 1-5 Year Idx 3.53% 4.28% 4.58%
ML 1-5 Govt/Corp 3.56% 4.27% 4.61%
Liquid Operating Monies^ 1.66% 2.13% 2.91%
CitiarouD 3-Month Treasury Bill 1.41% 1.82% 2.57%
Total Fund 3.42% 4.05% 4.51%
Target' 3.13% 3.78% 4.21%
"Current Quarter Target=80.0% ML 1-5 Govt/Corp and 20.0%3mo T-Bills.
AAssets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Callan orange County 5annation Distnot 14
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.
12/2014-
3/2015 2014 2013 2012 2011
Domestic Fixed Income
Long Term Operating FundA 0.75% 1.98% (1.77%) 3.06% 4.59%
Chandler 0.75% - - - -
Barclays Govt/Cred 1-5 Year Idx 0.96% 1.42% 0.28% 2.24% 3.14%
MIL 1-5 Govt/Corp 1.00% 1.51% 0.32% 2.47% 3.10%
Liquid Operating Monie0 0.06% 0.09% 0.13% 0.17% 0.24%
Chandler 0.06% - - - -
Citigroup3-Month Treasury Bill 0.01% 0.03% 0.05% 0.07% 0.08%
Total Fund 0.67% 1.73% (1.49%) 2.70% 3.70%
Target* 0.80% 1.21% 0.26% 1.99% 2.49%
"Current Quarter Target=80.0% MIL 1-5 Govt/Corp and 20.0%3mo T-Bills.
AAssets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Callan orange County 5annation piav ct is
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.
2010 2009 2008 2007 2006
Domestic Fixed Income
Long Term Operating FundA 4.42% 5.52% 5.37% 7.21% 4.41%
Barclays Govt/Cred 1-5 Year Idx 4.08% 4.62% 5.12% 7.27% 4.22%
MIL 1-5 Govt/Corp 4.17% 4.88% 4.65% 7.27% 4.26%
Liquid Operating MoniesA 0.25% 0.58% 2.40% 5.25% 5.05%
Citigroup 3-Month Treasury Bill 0.13% 0.16% 1.80% 4.74% 4.76%
Total Fund 3.68% 4.65% 4.61% 6.84% 4.60%
Target* 3.36% 3.93% 4.08% 6.76% 4.36%
"Current Quarter Target=80.0% MIL 1-5 Govt/Corp and 20.0%3mo T-Bills.
AAssets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Callan orange County 5annation piav ct to
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
3.0%
2.5%
•
2.0%
E
E
N
K
0.5%
e>ss!w�
0.0%
0.0% 0.2% 0.4% 0.a% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.6% 2.2%
Standard Deviation
Seven Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
3.0%
2.5% �:Mt
2.0%
E
E
0 1.5%
N
K
0.5%
0.0%
0.0% 0.2% 0.4% oe% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.6% 2.2%
Standard Deviation
Callan orange County sanitation DiWd 1
Manager Analysis
Long Term Operating Fund
Period Ended March 31, 2015
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 Quarterly Asset Growth
• Long Term Operating Fund's portfolio posted a 0.75%return Beginning Market Value $434,039,944
for the quarter placing it in the 25 percentile of the CAI Net New Investment $-50,500,000
Defensive Fixed-Inc Style group for the quarter and in the 6
percentile for the last year. Investment Gains/(Losses) $3,297,853
• Long Term Operating Fund's portfolio underperformed the Ending Market Value $386,837,796
ML 1-5 GovUCorp by 0.26% for the quarter and
underperformed the ML 1-5 Govt/Corp for the year by
0.05%.
Performance vs CAI Defensive Fixed-Inc Style(Gross(
6%
5% A((4
AB(6 2
3) B(2 1
4% 1
( )25)"812 )
3% 7$9)®813 3
2% (5)�y�-IBS6 1 15)�8�1 1
® 1 22)®B(3 1
1% P)I A2 ) AS )
0% Last Quarter Las[ Last 3 Yean Last 5 Years Last 7 Years Last 10 Years Last 15 Years Last 19-1Q
Year Years
101h Percentile 0.93 1.99 2.01 2.68 3.46 3.73 4.38 4,68
25th Percentile 0.75 1.60 1.50 2.04 2.85 3.55 4.17 4,56
Median 0.66 1.40 1.28 1.84 2.36 3.24 3.86 4,28
75th Percentile 0.58 1.23 0.96 1.41 2.01 2.90 3.62 4,05
901h Percentile 0.53 1.03 0.83 1.22 1.72 2.71 3.38 3.95
Long Term
Operating Fund •A 0.75 2.02 1.22 2.33 2.98 3.81 4.41 4.79
Barclays G.W(tre5
1-5 Year Mx •B 0.96 1.99 1.45 2.18 2.69 3.53 4.28 4,58
ML 1-5 Gov0Corp ♦ 1.00 2.08 1.56 2.25 2.74 3.56 4,27 4,61
CAI Defensive Fixed-Inc Style(Gross(
Relative Return vs ML 1-5 Govt/Corp Annualized Seven Year Risk vs Return
2.0% 4.0%
1.5% _ __ ____________
3.5%
••
m 1.0%
� 3.0% •
0.5% _ cis
. .
N 2.5%
0.0% %
m 2.0%
K (0.5%) __ __________
(1.0%) _ __ __________ _ __ 1.5%
(1.5%) 1.0%
M08 2009 2010 2011 2012 2013 2014 15 0 1 2 3 4 5 6
Long Term cleating Fund Standard Deviation
Callan Orange County sanitation District 19
Long Term Operating Fund
Return Analysis Summary
Return Analysis
The graphs below analyze the managers 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 two charts illustrate the managers
ranking relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12/112014. Previous performance reflects PIMCO.
Performance vs CAI Defensive Fixed-Inc Style(Gross)
20%
15% B A ]®A 14+LB 1E eE&A( V®B( 2)' A! p)50A(
0% 0 )
(5%)
(10%) 1W14 W15 2014 2013 M12 2011 2010 2009 2008 2007 2006
101M1 Percentile 0.93 1.58 1.20 4.46 2.]2 4.69 13.]4 6.63 ].03 s.11
25th Pementile 0.]5 1.28 0.80 2.60 2.28 4.01 8.60 5.64 6.88 4.84
Marian 0.66 1.11 0.65 1.81 1.8] 3.18 5.91 3.75 6.39 4.61
75tM1 Percentile 0.58 0.88 0.41 1.46 1.65 2.73 2.53 (0.1]) 5.66 4.46
801M1 Percentile 0.53 0.]0 0.31 0.82 1.44 2.42 1.82 (34] 3.75 4.32
Long Term
Operating Fund •A 0.75 1.98 (1.77) 3.06 4.59 4.42 5.52 5.37 T21 4.41
Barcays GOWCred
15 Year ldx ■B 0.96 1.42 0.28 2.24 3.14 4.08 4.62 5.12 T27 4.22
ML 1-5
GOWCOT ♦ 1.00 1.51 0.32 2.47 3.10 4.17 4.88 4.65 T27 4.26
Cumulative and Quarterly Relative Return vs ML 1.5 GoWCorp
6%
4%
N
C
J 2%
N
K
gr 0%
(2%)
K
(6%)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 15
10 Long Tenn Operating Fund ■Bamlays G Cned 1a Year Idx 0 CAI Defensive F-1 style
Risk Adjusted Return Measures vs ML 1.5 GoWCorp
Rankings Against CAI Defensive Fixed-Inc Style(Gross)
Seven Years Ended March 31,2015
6 ® ( 1 22.0
.5
3 fA(95) 10 �A(]]
( A16
BRO
(2) Alpha A98 T=or (15� m Intor ,ion sM1arpe Excess Return
RMio Ratio Ratio Ratio
10th Perwntile 1.1] 4.93 101h Percentile 1.1] 1]3 0.28
251h Perwntile 0.86 3.74 251M1 Percentile 0.81 1.59 0.04
Median 0.45 3.19 Median 0.55 1.37 (0.35
75th Perwntile 0.17 2.74 751h Percentle 0.20 1.14 to
90tM1 Perwntile 0.00 2.48 901M1 Percentile Oul 0.99 (0.89
Long Term Long Term
Operating Fund •A (0.39) 2.16 Opemtmg Fund eA (0.43) 1.12 0.23
Barclays GOWCreo Barclays GoWCred
1-5 Year Idx e8 (0.15) 2.33 1-5 Year lox eB (0.62) 1.29 (0.17)
Callan Orange County sanitation Distiot 20
Long Term Operating Fund
Bond Characteristics Analysis Summary
Portfolio Characteristics
This graph Compares the managers 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 CAI Defensive Fixed-Inc Style
as of March 31,2015
4.9
3.s
3.o a(4)
2.5 (2) A •(3) (7)
8)
2.0
1.5 (85)
1.0 (48) pe
0.5
0.0
(0.5)
(1.0) Average Effective Coupon CA
Dundon Lift Yield Rats Convexly
loth Percentile 2.27 2.48 3.20 3.45 0.12
25th Percentile 1.89 2.17 1.63 2.76 0.05
Medan 1.78 1.93 1.07 1.91 0.02
75[h Percentile 1.51 1.75 0.91 1.69 0.00
90th Percentile 0.92 1.57 0]7 1.03 (0.22)
Long Term
Operating Fund • 2.56 3.13 - 1.32 -
BamlaysGoWCredl-5Ye ♦ 2.67 2.79 1.08 2.26 0.06
Sector Allocation and Quality Ratings
The first graph compares the managers sector allocation with the average allocation across all the members of the
manager's style.The second graph compares the managers weighted average quality rating with the range of quality ratings
for the style.
Sector Allocation Quality Ratings
March 31,2015 vs CAI Defensive Fixed-Inc Style
> Tray
US Thu, '�oE AAq
sr.e%
-------------- �
US RMBS % E AAt (38)
Cory(US$tlenam) z% (38) ♦
�� AA
US ABS %
AA-
Other A,
US Muni
A
Cash l>%
A- welgM1led Ave rage
US CMBS ex5% Oualiy Raeng
oe% tOth Percentile AAA
US CMOs 25th Percentile AAA
Median AA
75th Percentile AA-
GovRel(U6$tlenam) 154% 801h Percentile A
0% 10% 20% 30% 40% 50% 60% 70% 80% Long Term
OperLong Fund • AAa
0 Long Term Opemting Furl 0 Barclays
0 Barcays GOWCred 15 CAI Dehnslve Fixed-Inc Style Ye GOWCrsd 1-5 Ye ♦ M+
Callan Orange County Sanitation Disaict 21
Long Term Operating Fund
Portfolio Characteristics Summary
As of March 31, 2015
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
US Tray US Trsy
48% 60%
US CMOs
Omer %
8%uni
US M
3% USRMBS
US AB!P44W
17% GRel U $tlenom)
Cash Cars(US$ %2% Cam Us5denom) USCMBS 25%
17% 1%
Long Term Operating Fund Barclays Govt/Credit 1-5 Year
Duration Distribution weighted Average: Duration
50% Long Tenn Operveng Fund: 2.58
O Barclays GoWCmdit 1-5 Year. 2.BT
p40% ---- ----- ---- ---- -----
---- -------- 4% 35.9%
0 34.4%
d 30% ____ 29.8% ___ __2g.
`o
20% ———— ---tn --
---- ---- —————
15.4
d 5.8%
%
0% o.a% o.a% 0.9% 0.0% 0.0% 0.0% 0.0% 0.0%
< 0-1 1-2 2-3 15 5-7 7-10 >10
Years Duration
Quality Distribution weghold Average: Quality
100% Long Tenn Operafing Fund: AA+
O Barclays GOWCmdit 1-5 Year: AA+
p80% .eft--------- ——— --- --- --- --- ---
mex
ti 50% J
L
4c%
0pA 0.0%
AAA As A Osgas o.o as Box avCCC CCox C o.oxD.ox WR
Quality Rating
Callan Orange County Sanitation Diauhs 22
Liquid Operating Money Net
Period Ended March 31, 2015
Investment Philosophy
Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Quarterly Summary and Highlights Quarterly Asset Growth
• Liquid Operating Money Net's portfolio posted a 0.02% Beginning Market Value $56,929,628
return for the quarter placing it in the 13 percentile of the MF Net New Investment $-7,500,000
- Money Markel Funds Database group for the quarter and
in the 98 percentile for the last year. Investment Gains/(Losses) $31,600
• Liquid Operating Money Net's portfolio outperformed the Ending Market Value $49,461,228
Citigroup 3-Month Treasury Bill by 0.02%for the quarter and
underperformed the Citigroup 3-Month Treasury Bill for the
year by 0.04%.
Performance vs MF-Money Market Funds Database(Net)
3.5%
3.0%
(12
2.5% 3y)®
1.5% 43)®(25
30)
1.0%
0.5%
6)®128
0.0%
(0.5%) Last Quarter Last Last 3 Yean Last 5 Years Last 7 Years Last 10 Years Laat 15 Years Last 19d1g
Year Years
101h Percentile orm 0.08 0.10 0.11 0.42 1.64 2.00 2.78
25th Percentile 0.01 0.02 0.02 0.03 0.30 1.51 1.85 2.0
Median 0.00 0.01 0.01 0.01 0.22 1.38 1.70 2.48
75th Percentile 0.00 0.00 0.01 0.01 0.15 1.26 1.56 2.35
90th Pecentile 0.00 0.00 0.00 0.00 0.10 1.14 1.39 2.18
Liquid Operating
Money Net • 0.02 (0.01) nion 0.02 0.28 1.51 1.98 2.75
Citigroup 3-Month
Treasury Bill ♦ 0.01 0.03 0.05 0.07 0.23 1.41 1.82 2.57
Relative Returns vs Cumulative Returns vs
Citigroup 3-Month Treasury Bill Citigroup 3-Month Treasury Bill
0.14% 0.70%
L, d Operating Money Net
0. 2 re
c - Money Market Ftls DB
x 0.08% K 0.40%
E m
0.06%
Di -K N
.� 0.02% ------------ -- 0.10% -- --
to
to 0.00% 0.00%
-- -- ---- --
(0.0616) (0.30%)
M08 2009 2010 2011 2012 2013 2014 15 2008 2009 2010 2011 2012 2013 2014 15
Liquid Operating Money Net
Callan Orange County Sanitation Distrid 23
Liquid Operating Money Net
Return Analysis Summary
Return Analysis
The graphs below analyze the managers 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 two charts illustrate the managers
ranking relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12/112014. Previous performance reflects PIMCO.
Performance vs MF-Money Market Funds Database(Net)
6%
5% 50®18 27p�15
4%
3%
2% 60®38
1% 11 14
0%
(1%) lwl&W15 2014 2013 M12 2011 2010 2009 "as 2007 2006
101h Percentile 0.04 0.07 0.09 0.19 0.08 0.15 0.53 2.78 5.22 4.95
25th Percentile 0.01 0.02 0.02 0.03 0.03 0.05 0.29 2.46 5.01 4.79
Median 0.00 0.01 0.01 0.01 Oct 0.01 0.12 2.03 4.73 4.53
75th Percentile 0.00 0.00 0.00 0.00 0.00 0.01 0.03 1.46 4.39 4.23
901h Percentile 0.00 0.00 0.00 0.00 0.00 0.00 0.01 1.08 IN 3.87
Liquid Operating
Money Net • 0.02 (0.06) (0.02) 0.02 0.09 0.10 0.43 2.25 5.09 4.89
Citigroup 3-Month
Treasuryaill ♦ 0.01 0.03 0.05 0.07 0.08 0.13 0.16 1.80 4.74 4.76
Cumulative and Quarterly Relative Return vs Citigroup 3-Month Treasury Bill
2.0%
1.6%
N
E 1.0%
0.5%
N
> 0.0%
(1.0%)- --- ---- ---------- ---- ----- ---- ---- --7-t
(1.5%)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 15
10 Liquid Opem9ng Money Net Money Market Fde Da
Risk Adjusted Return Measures vs Citigroup 3-Month Treasury Bill
Rankings Against MF-Money Market Funds Database(Net)
Seven Years Ended March 31,2015
0.25 1.5
0.20 1.0
0.15 0.50i.010
0.05 (30) 2] 0.0
0.00 0.5)
(0.05) (i.o)
(0.10)
0.5)
(0.20) Alpha Traynor (2 0) Information Sharpe Execss Return
Ratio Ratio Rage Ratio
10b Percentile 0.19 0.14 101h Percentile 0.86 0.37 0.87
25th Percentile 0.07 0.03 25th Percentile 0.45 0.10 0.43
Median 0.00) (((0.N) Median (0.05 0.13) (0.10
75ih Percentlle 0.08) (0.10) ]5th Percen4le (1.19 0.53) (L2]
90b Perceud 0.12 I 90Th Percentile (1.59 0.95) (1.53
Liquid Operating Liquid Operating
Mon..,Net a 0.05 0.03 Money Net a 0.51 0.08 o.55
Cana' 1 Orange County 3anilation Deaict 21
Callen Research/Education
CALLAN
INVE
Callan INSTTUMENTS FIRST DTR 2015
Education
Research and Educational Programs
The Callan Investments Institute provides research that keeps clients updated on the latest industry trends while
helping them loam through carefully structured educational programs. Below are the Institute's recent publica-
tions—all of which can be found at www.callan.com/research.
White Papers
®® 2015 Capital Market Projections Charticle
Callan's latest charticle offers a high-level view into how we generate our cap market projection
ddff numbers. These projections incorporate advanced quantitative modeling as well as qualitative
feedback and the economic expertise of Callan's consulting professionals. Our 2015 numbers
- reflect our optimism for the economy,for inflation,and for the capital markets.
Global Equity Benchmark Review:Year-end 9/3 012 01 4
This report compares the coverage, characteristics, and risk and return data of more than 40
global equity indices from FTSE, MSCI, and Russell alongside Callan's active manager style
groups.Statistics include:portfolio characteristics,sector and country weights,style analysis and
-- Z-scores,risk and retum,etc.
Countdown to a Better DC Plan
Citing results from Callan's annual DC Trends Survey,we explore plan sponsor adoption of PPA
- provisions to see how they have benefited, where they have met challenges, and where they
could do more. We also offer seven takeaways to help sponsors better position their plans in
_=- 2015 as we approach the decade mark for this legislation.
■® Emerging Managers:Small Firms with Big Ideas
=-
In this interview, Callan's Uvan Tsang and Lauren Mathias discuss trends and issues in the
emerging manager arena.(Also see our related video:"Manager Trends:Emerging Managers
and Minority,Women,and Disabled-owned Firms.")
Quarterly Publications
DC Observer&Callan DC IndexTM:A quarterly newsletter that offers Callan's observations on a variety of topics per-
taining to the defined contribution industry. Each issue is updated with the latest Callan DC IndW- returns.
Capital Market Review: A quarterly macroeconomic indicator newsletter that provides thoughtful insights on the
economy as well as recent performance in the equity,fixed income, alternatives, international, real estate,and other
capital markets.
Hedge Fund Monitor.Aquarterly newsletter that provides a current view of hedge fund industry trends and detailed
quartedy performance commentary.
Private Markets Trends:A seasonal newsletter that discusses the market environment,recent events,performance,
and other issues involving private equity.
Quarterly Data:The Market Pulse reference guide covers the U.S.economy and investment trends in domestic and
international equities and fixed income, and altema0ves. Our Inside Callan's Database report provides performance
information gathered from Callan's proprietary database,allowing you to compare your funds with your peers.
RealAssets Reporter:Arecurring newsletter that offers Callan's data and insights on real estate and other real asset
investment topics.
Surveys
2015 Defined contribution Survey
This annual survey presents findings from the past year, such as:Around 10% of DC plan
i sponsors replaced their target date fund/balanced manager in 2014;Plans that offer potentially
lower-cost investment vehicles, such as a collective trust, notably increased in 2014; In 2015
the high priorities for sponsors include participant communication,fund/manager due diligence,
compliance,and plan fees.
ESG Interest and Implementation Survey
_ -— Callan conducted a brief survey to assess the status of ESG, including responsible and
- _ sustainable investment strategies and SRI, in the U.S. institutional market. We col-
lected responses from 211 U.S. funds representing approximately $1.4 trillion in assets.
2014 Investment Management Fee Survey
This survey captures institutional investment management fee payment practices and trends.
_ We supplemented survey data(from 72 fund sponsors,$859 billion in assets and 211 invest-
- -- ment managers, $15 trillion in AUM)with information from Callan's proprietary databases to
establish the trends observed in this report. Callan conducted similar surveys in 2004, 2006,
2009,and 2011.
Callan Callan Investments Institute
Events
Did you miss out on a Callan conference or workshop? If so, you can catch up on what you missed by reading our
"Event Summaries"and downloading the actual presentation slides from our website.Our most recent programs:
�, ■_ The 2015 National Conference Summary features a synopsis of our speakers: Bowles &
Simpson, Maddy Dychtwald,Gary Locke,Daniel Pink,and the 2015 Capital Markets Panel,
The Summary also reviews our four workshops:retirement in America,active share,DC plan
_ fee landscape, and endowments/foundations. Slide-decks of the conference workshops are
also available on our website.
_ Our October 2014 Regional Workshop, The Education of Beta, discussed the growing
popularity of alternative index strategies.We covered the origins and theories behind these
indices, investor implementation choices, and an overview of the smart beta industry fo-
cusing on the range of products and future trends. This workshop summary write-up will
give you a great synopsis of what our three presenters(Andy Iseri,Jay Kloepfer,and Mike
Swinney)covered.
Upcoming Educational Programs
Please join us at our June 2015 Regional Workshops where we will discuss how recent and pending regulatory and
legislative developments are shaping the DC landscape,and how plan sponsors approach their plans.We will show
the current environment's impact on usage and implementation of everything from target date funds, alternative
investments,company stock,etc.Learn what the future may hold for participants as well as the industry,as sponsor
position their plans in light of these fiduciary challenges.
Fiduciary Tidal Wave: Navigating DC's Uncharted Waters
Facilitators:
Rod Bare, Chicago Fund Sponsor Consulting
Lori Lucas, CFA, Defined Contribution Consulting
Uvan Tsang, CFA, San Francisco Fund Sponsor Consulting
Joined by Callan's Chicago/Denver/San Francisco Office Consultants
June 17,2015 in Chicago
June 18,2015 in San Francisco
Workshop is from 9am to 1lam
Our research can be found at www.callan.com/research or feel free to contact us for hard copies.
For more information about research or educational events, please contact Ray Combs or Gina Falsetto
at institute@callan.com or 415-974-5060.
Callan Callan Investments Institute
Callan COLLEGE" l FIRST OTR 2015
Education
The Center for Investment Training Educational Sessions
This educational forum offers basic-to-intermediate level instruction on all components of the investment manage-
ment process.The"Callan College"courses cover topics that are key to understanding your responsibilities,the roles
of everyone involved in this process,how the process works, and how to incorporate these strategies and concepts
into an investment program. Listed below are the 2015 dales.
An Introduction to Investments
July 21-22,2015 In San Francisco
October 27-28,2015 in Chicago
This one-and-one-half-day session is designed for individuals who have less than two years'experience with institu-
tional asset management oversight and/or support responsibilities.The session will familiarize fund sponsor trustees,
staff,and asset management advisors with basic investment theory,terminology, and practices.
Participants in the introductory session will gain a basic understanding of the different types of institutional fords,
including a description of their objectives and investment session structures.The session includes:
• A description of the different parties involved in the investment management process, including their roles and
responsibilities
• A brief outline of the types and characteristics of different plans(e.g.,defined benefit,defined contribution,
endowments,foundations,operating fords)
• An introduction to fiduciary issues as they pertain to fund management and oversight
• An overview of capital market theory,characteristics of various asset classes,and the processes by which
fiduciaries implement their investment sessions
Tuition for the Introductory"Callan College"session is$2,350 per person.Tuition includes instruction, all materials,
breakfast and lunch on each day,and dinner on the first evening with the instructors.
Customized Sessions
A unique feature of the"Callan College"is its ability to educate on a specialized level through its customized sessions.
These sessions are tailored to meet the training and educational needs of the participants,whether you are a plan spon-
sor or you provide services to institutional tax-exempt plans. Past customized"Callan College"sessions have covered
topics such as:custody,industry trends,sales and marketing,client service,international,fixed income,and managing
the RFP process. Instruction can be tailored to be basic or advanced.
For more information please contact Kathleen Coal at 415.274.3029 or cunnie@callan.com.
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 managers 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.
Callan
31
Risk/Reward Statistics
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 (is. 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-diversifable 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.
Traynor 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.
Callan
32
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 Slated 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.
Callan
33
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.
Callan
34
Disclosures
Callan
Quarterly List as of
March 31, 2015
List of Managers That Do Business with Callan Associates Inc.
Confidential—For Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe
our fund sponsor o ients should have a clear understanding of the investment management organizations that do business with our firth. As of 03/31115.
Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of the following business
units. Institutional Consulting Group, Independent Adviser Group and Fund Sponsor Consulting. Given the complex corporate and organivational
ownership structures of investment management firs,parent and affiliate firm relationships are not listed here. The client list below may Include names
of parent companies who allow their affiliates to use some of the services included in their client contract mg,educational services including published
research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately contract with Callan. Per strict policy these
manager relationships do not affect the outcome or process by which any of Callan's services are conducted.
Fund sponsor clients may request a copy of this list at any time. Fund sponsor clients may also request specific Information regarding the fees paid to
Callan by the managers employed by their fund.Per company policy,Information requests regarding fees are handled exclusively by Callan's
Compliance Department.
Clients should also be aware that Callan maintains an asset management division,the Trust Advisory Group(TAG).TAG specializes in the design,
implementation and on-going management of multi-manager ponrolios for institutional investors.Please refer to Callan's ADV Part 2A far a complete
listing of TAG's portfolios.We are happy to provide clients with more specific information regarding TAG,including detail on the portfolios it
oversees. Per company policy these requests are handled by TAG's senior management.
Manager Name Educational Services Consulting Services
1607 Capital Partners,LLC Y
Aberdeen Asset Management Y Y
Acadian Asset Management,Inc. Y
Advisory Research EMIL. i L
Affiliated Managers Group Y
AllianceBernstein '7
Aliens Global Investors U.S.LLC Y Y
Allianz Life Insurance Company of North America R Y
Altrinsic Global Advisors,LLC Y
American Century Investment Management Y
Analytic Investors Y
Apollo Global Management Y
AQR Capital Management Y
Ares Management Y
Ariel Investments Y
Aristotle Capital Management
Aronson+Johnson+Ortiz Y
Artisan Holdings
Atlanta Capital Management Co.,L.L.C. Y Y
Aviva Investors
AXA Rosenberg Investment Management Y
Babson Capital Management LLC Y —
Baillie Gifford International LLC Y Y
Baird Advisors Y
Bank of America Y
Baring Asset Management Y —
Baron Capital Management Y
Blackpock Y
BMO Asset Management Y
BNP Parities Investment Panners Y
BNY Mellon Asset Management Y Y
Boston Company Asset Management,LLC(The) Y
Tan I Knowledge.Experience. Integrity. 3/31/15
List of Managers That Do Business with Callan Associates Inc.(continued)
Confidential—For Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe
our fund sponsor clients should have a clear understanding of Me investment management organizations that do business with our firm. As of 03131/15,
Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of the following business
units: Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consulting. Given the complex corporate and organizational
ownership structures of investment management fines,parent and affiliate firm relationships are not listed here. The client list below may include names
of parent companies who allow their affiliates to use some of the services included in their client contrad(eg,educational services including published
research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately contract with Callan. Per strict policy these
manager relationships do not affect the outcome or process by which any of Callan's services are conducted.
Fund sponsor clients may request a copy of this list at anytime. Fund sponsor clients may also request specific information regarding the fees paid to
Callan by the managers employed by their fund.Per company Policy,information requests regarding fees are handled exclusively by Callan's
Compliance Department.
Clients should also be aware that Callan maintains an asset management division,Me Trust Advisory Group(TAG).TAG specializes in the design,
Implementation and on-going management of multi-manager portfolios for institutional investors.Please refer to Callan's ADV Pan 2A for a complete
listing of TAG's portfolios.We are happy to provide clients with more specific information regarding TAG,including detail on the portfolios it
oversees. Per company policy these requests are handled by TAG's senior management.
Manager Name Educational Services Consulting Services
Boston Partners Y Y
Bmndes Investment Partners,L.P. Y Y
Brandywine Global Investment Management,LLC Y
Brown Brothers Harriman&Company Y
Cadence Capital Management Y
Capital Group Y
CastleArk Management,LLC Y
Causeway Capital Management Y
Central Plains Advisors, Inc. Y
Charlwell Investment Partners
Cles Bridge Investments,LLC(&a ClearBddge Advisors) Y
Cohen&Steers Y—
Columbia Management Investment Advisors,LLC Y Y
Columbus Circle Investors Y—
Corbin Capital Partners Y
Cornerstone Investment Partners,LLC
Cramer Rosenthal McGlymm LLC Y
Crawford Investment Council
Credit Suisse Asset Management Y
Crestline Investors
Cutwater Asset Management Y
DS Advisors
DE Shaw Investment Management LLC Y
Delaware Investments
DePrince,Race&Zollo,Inc. Y Y
Deutsche Asset &Wealth Management
Diamond Hill Investments Y
Donald Smith&Co.,Inc.
DSM Capital Partners Y
Duff&Phelps Investment Mgmt.
Eagle Asset Management,Inc. Y
EARNEST Partners,LLC
Eaton Vance Management Y Y
Epoch Investment Partners
Fayez Samfim&Company Y
Federated Investors
Fir Tree Partners Y
First Eagle Investment Management
First State Investments Y
Fisher Investments
Franklin Templeton Y Y
Fred Alger Management Co.,Inc.
Callan I Knowledge.Experience. Integrity. 3131/15
List of Managers That Do Business with Callan Associates Inc.(continued)
Confidential—For Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe
our fund sponsor clients should have a clear understanding of Me investment management organizations that do business with our firm. As of 03131/15,
Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of the following business
units: Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consulting. Given the complex corporate and organizational
ownership structures of investment management fines,parent and affiliate firm relatonships are not listed here. The client list below may include names
of parent companies who allow their affiliates to use some of the services included in their client contrad(eg,educational services including published
research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately contract with Callan. Per strict policy these
manager relationships do not affect the outcome or process by which any of Callan's services are conducted.
Fund sponsor clients may request a copy of this list at anytime. Fund sponsor clients may also request specific information regarding the fees paid to
Callan by the managers employed by their fund.Per company Policy,information requests regarding fees are handled exclusively by Callan's
Compliance Department.
Clients should also be aware that Callan maintains an asset management division,Me Trust Advisory Group(TAG).TAG specializes in the design,
Implementation and on-going management of multi-manager portfolios for institutional investors.Please refer to Callan's ADV Pan 2A for a complete
listing of TAG's portfolios.We are happy to provide clients with more specific information regarding TAG,including detail on the portfolios it
oversees. Per company policy these requests are handled by TAG's senior management.
Manager Name Educational Services Consulting Services
Fuller&Thaler Asset Management V
GAM(USA)Inc. V
Garcia Hamilton &Associates V
GE Asset Management I- V
Geneva Capital Management V
Goldman Sachs Asset Management I- _ Y
Grand-Jean Capital Management V V
GMO(Ma Grantham,Mayo,Van Ofterloo&Co.,LLC)
Great Lakes Advisors, Inc. V
The Guardian Life Insurance Company of America
Guggenheim Investments Asset Management like Security Global) V
The Hampshire Companies
Harbor Capital V
Hartford Funds
Hartford Investment Management Co. V V
Heightman Capital Management Corporation
Henderson Global Investors V V
Hotchkis&Wiley
HSBC Global Asset Management V
Income Research&Management
Insight Investment Management V
Institutional Capital LLC
INTECH Investment Management V
Invesco
Investec Asset Management V
Jacobs Levy Equity Management Y
Janus Capital Group(*a Janus Capital Management,LLC) V V
Jensen Investment Management y
J.M.Hartwell V
J.P.Morgan Asset Management V
KeyCorp V
Lazard Asset Management V
Lee Murder Capital Group V
Legal&General Investment Management America
Lincoln National Corporation V
Logan Circle Partners,L.P. I-
The London Company V
Longview Partners �r J
Loomis,Sayles&Company,L.P. V V
Lord Abbeft&Company i
Los Angeles Capital Management V
LSV Asset Management
Callan I Knowledge.Experience. Integrity. 3131/15
List of Managers That Do Business with Callan Associates Inc.(continued)
Confidential—For Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe
our fund sponsor clients should have a clear understanding of Me investment management organizations that do business with our firm. As of 03131/15,
Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of the following business
units: Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consulting. Given the complex corporate and organizational
ownership structures of investment management fines,parent and affiliate firm relationships are not listed here. The client list below may include names
of parent companies who allow their affiliates to use some of the services included in their client examined(eg,educational services including published
research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately contract with Callan. Per strict policy these
manager relationships do not affect the outcome or process by which any of Callan's services are conducted.
Fund sponsor clients may request a copy of this list at anytime. Fund sponsor clients may also request specific information regarding the fees paid to
Callan by the managers employed by their fund.Per company Policy,information requests regarding fees are handled exclusively by Callan's
Compliance Department.
Clients should also be aware that Callan maintains an asset management division,Me Trust Advisory Group(TAG).TAG specializes in the design,
Implementation and on-going management of multi-manager portfolios for institutional investors.Please refer to Callan's ADV Pan 2A for a complete
listing of TAG's portfolios.We are happy to provide clients with more specific information regarding TAG,including detail on the portfolios it
oversees. Per company policy these requests are handled by TAG's senior management.
Manager Name Educational Services Consulting Services
Lyrical Partners V
MacKay Shields LLC V V
Man Investments V
Manulffe Asset Management V
Martin Cume V
Marvin&Palmer Associates, Inc. — V
MFS Investment Management V V
MidFimt Bank V
Mondrian Investment Partners Limited V y
Montag&Caldwell,Inc. V
Morgan Stanley Alternative Investment Partners V
Morgan Stanley Investment Management V
Mount Lucas Management LP V
Mountain Lake Investment Management LLC V
MUFG Union Bank,N.A. y
Neuberger Berman,LLC(fka,Lehman Brothers) V
Newton Capital Management V
Northern Lights Capital Group
Northern Trust Global Investment Services V V
Nuveen Investments Institutional Services Group LLC
Old Mutual Asset Management V V
OppenheimerFunds,Inc.
Pacific Investment Management Company V
Palisade Capital Management LLC
Paradigm Asset Management V
Parametric Portfolio Associates
Peregrine Capital Management,Inc. V Y
Philadelphia International Advisers,LP
PineBridge Investments(formerly AIG) V
Pinnacle Asset Management
Pioneer Investment Management, Inc. V
PNC Capital Advisers(fka Allegiant Asset Mgmp
Polen Capital Management V
Principal Financial Group
Principal Global Investors V Y
Private Advisers
Prudential Fixed Income Management V
Prudential Investment Management,Inc.
Putnam Investments,LLC V V
Pyremis Global Advisers
Rainier Investment Management V
RISC Global Asset Management(U.S.)Inc
Callan I Knowledge.Experience. Integrity. 3131/15
List of Managers That Do Business with Callan Associates Inc.(continued)
Confidential—For Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we believe
our fund sponsor clients should have a clear understanding of Me investment management organizations that do business with our firm. As of 03131/15,
Callan provided educational,consulting,software,database,or reporting services to this list of managers through one or more of the following business
units: Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consulting. Given the complex corporate and organizational
ownership structures of investment management fines,parent and affiliate firm relationships are not listed here. The client list below may include names
of parent companies who allow their affiliates to use some of the services included in their client contract(eg,educational services including published
research and attendance at conferences and workshops).Affiliates will not be listed if they don't separately contract with Callan. Per strict policy these
manager relationships do not affect the outcome or process by which any of Callan's services are conducted.
Fund sponsor clients may request a copy of this list at anytime. Fund sponsor clients may also request specific information regarding the fees paid to
Callan by the managers employed by their fund.Per company Policy,information requests regarding fees are handled exclusively by Callan's
Compliance Department.
Clients should also be aware that Callan maintains an asset management division,Me Trust Advisory Group(TAG).TAG specializes in the design,
Implementation and on-going management of multi-manager portfolios for institutional investors.Please refer to Callan's ADV Pan 2A for a complete
listing of TAG's portfolios.We are happy to provide clients with more specific information regarding TAG,including detail on the portfolios it
oversees. Per company policy these requests are handled by TAG's senior management.
Manager Name Educational Services Consulting Services
Research Affiliates V
Regions Financial Corporation V
RCM V
Rothschild Asset Management,Inc. V V
IRS Investments V
Russell Investment Management V
Sankaty Advisors,LLC V
Santander Global Facilities V
Schroder Investment Management North America Inc. V y
Scout Investments
SEI Investments y
SEI%Investment Advisors,Inc.
Select Equity Group V
Smith Affiliated Capital Corporation
Smith Graham and Company y
Smith Group Asset Management V
Standard Life Investments V
Standish(fka,Standish Mellon Asset Management)
State Street Global Advisers V
Stone Harbor Investment Partners,L.P.
Systematic Financial Management V
T.Rowe Price Associates,Inc.
Tapir,Caudle&Habacht V
TCW Asset Management Company
Thompson,Siegel&Walmsley LLC V
UBS
USAA Real Estate Company V
Van Eck
Victory Capital Management Inc. V
Vontobel Asset Management y
Voya Investment Management V V
Vulcan Value Partners,LLC
Waddell&Reed Asset Management Group V Y
WCM Investment Management
WEDGE Capital Management y
Wellington Management Company,LLP
Wells Capital Management V
Western Asset Management Company
William Blair&Co.,Inc. V V
Callan I Knowledge.Experience. Integrity. 3131/15
Investment Report
Orange County Sanitation District
Period Ending
March 31 , 2015
6225 Lusk Boulevard I San Diego, CA 92121 1 Phone :00
Cal'tj Table of Contents
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 1
Economic Update
CAI Economic Update
■ Job growth was weaker than expected in March with nonfarm payrolls up 126,000, well below the
consensus forecast of 245,000. The unemployment rate was unchanged at 5.5%, though the labor
participation rate declined to 62.7% from 62.8%. Wages rose 0.3% (higher than expected).
Unfavorable weather and the strong dollar were likely factors for weak job growth in March. Overall,
there is still excess slack in the labor market. Growth in the manufacturing sector has also softened.
We believe the strong U.S. dollar and sluggish economic growth abroad has dampened U.S.
manufacturing trends. U.S. consumer confidence remains strong, but consumer spending trends have
underwhelmed. Housing data remains volatile but the overall trajectory seems positive. There have
been pockets of weakness in recent economic data, but some of the factors for this weakness may
be transitory(such as unfavorable weather and the West Coast port delays).
■ The Federal Open Market Committee (FOMC) left policy rates unchanged at its March 17-18
meeting, without any dissenting votes. The Committee noted economic activity moderated and the
inflation rate declined further. The word "patient' (with regard to the timing of a potential future rate
hike) was removed from the policy statement but the Committee indicated a rate hike at the next
FOMC meeting in April is unlikely. The Fed left the door open for a possible rate hike in June, but we
believe the first rate hike is likely to occur later in the second half of this year. Notably, the Fed expects
to see further improvement in the labor market before it starts to raise rates, which implies the Fed
remains dissatisfied with current employment conditions. The Committee also needs to be confident
inflation will move back to its 2% target, before they raise rates. With inflation low, we believe the Fed
faces no urgencyto begin raising rates. Even though the Committee removed the word "patient"from
its policy statement, we believe the Fed's overall message was somewhat dovish, which makes a
June rate hike unlikely, in our view. We believe ongoing uncertainty about the timing of the Federal
Reserve's first interest rate hike will likely continue to fuel market volatility.
• The yield curve flattened in March. Domestic economic data has recently softened, and the timing of
the first fed funds rate hike remains unclear. Meanwhile, the European Central Bank continues to
execute its bond-buying program and other global central banks are pursuing highly accommodative
monetary policies.
CAI Employment
Nonfarm Payroll (000's) Unemployment Rate
450 6.0%
400 7.5%
350
300 7 0%
a 250 6.5%
bIV 14
0 200
6.0%
150
100 5.5%
50
5.0%
Source:U.S.CCpart toilebor
Nonfarm payrolls rose by 126,000 in March, well below the consensus forecast of 245,000. February and
January payrolls were also revised down a net 69,000. Private payrolls rose by 129,000 in March, while
government jobs declined by 3,000. The unemployment rate was unchanged at 5.5%. The labor participation
edged down to 62.7% in February from 62.8%. Wages rose 0.3% (higher than expected), following a 0.1%
increase in February. On a year-over-year basis, wages rose 2.1% in March versus 2.0% in February. Job
growth in weather-sensitive sectors such as construction, and leisure & hospitality, were much weaker in March
than in previous months, which suggests unfavorable weather had a significant impact on the overall March
nonfarm payroll figure. There was also a sharp decline in manufacturing payrolls in March which may be
attributable to the strong U.S. dollar.
CAI Consumer
Retail Sales Y-O-Y % Change Consumer Credit
6.0% 30
5.0% 25
e
4.0% o_ 20
3.0% mw 15
2. 0 0% C f
13
0% 5
2ij� 9J� Q.j� ¢.j� )p 1�A 2A9 AijA GijA GAF )p' JL' Zjs �A3 ''✓j3 `f'j3 ij3 `p'ju' )mil ijA y'jA $'jA i�A `8'jA Awl �j5
3 3 9 A 3 A
Source:U S�epartn,ent p�Gammerce Swm F decal Reserve
In February, retail sales rose 1.7% on a year-over-year basis, following a 3.6% gain in January. On a month-
over-month basis, retail sales declined 0.6% in February (below the consensus forecast for a 0.3% increase)
after declining 0.8% in January. Gasoline sales actually rebounded in February after plunging in the prior
month. However, auto sales declined 2.5% in February after a 0.5% increase in January. Retail sales have
been weaker than expected over the past few months,which is surprising since consumer confidence remains
strong. Unfavorable weather may have contributed to the disappointing February retail sales report. Consumer
credit rose by $11.6 billion in January (below expectations of $15.0 billion) versus a gain of $17.9 billion in
December. Revolving credit(credit cards)expanded by$1.1 billion in January,following a $6.2 billion increase
in December. Nonrevolving credit(student and auto loans)increased by$12.7 billion in January.
CAI Broad Measures
Single-Family Housing Starts Leading Economic Indicators
800 1.2%
700 1.0%
600 0.8%
500 0.6%
M
0400 0.6%
e
300 0.2%
200 0.0%
100 -0.2%
Source.US Dep 'M of Carurrerce Sourte:The Conrerenw Board
Housing data remains volatile. Single-family housing starts fell 14.9% in February after declining 3.9% in
January. Overall housing starts (including single- and multi-family) dropped 17.0% in February, well below
expectations. Unfavorable weather may have contributed to the sharp drop in housing starts in February. The
index of Leading Economic Indicators (LEI) rose 0.2% in February following a gain of 0.2% in January. Growth
of the LEI index has moderated in recent months, but the index remains indicative of modest economic growth.
CMS Manufacturing
Institute of Supply Management Capacity Utilization
Purchasing Manager Index
50.0 80.0%
EKPandin8 79.5%
57.5
55.0 79.0%
52.5 79.5%
50.0 78.0%
47.5 Contracting 77.5%
45.0 77.0%
Sources:Ins Jule hr Supply Management Soule:FeEerel Reserve
During March, the ISM manufacturing index declined to 51.5 from 52.9 in February. The March
reading continued to signal ongoing expansion (albeit less robust expansion) in the manufacturing
sector. A reading above 50.0 is viewed as expansionary in the manufacturing sector,while a reading
below 50.0 suggests contraction. Capacity utilization, which is production divided by capacity,
declined to 78.9% in February from 79.1% in January. The capacity utilization rate is lower than the
long-run average of 80.1% (1972-2014).
CAI Inflation
CPI Y-O-Y % Change Core CPI Y-O-Y % Change
2.5% 2.5%
2.0%
2.0%
1.5%
0% 1.5%
0.5%
0.0%
-0.5% 0.5%
2� Pik 4i� a" >p �2 L� Fib Bid Qi� Jp 1L Z� Z� Fib 9i� 8,i� 1p 12 L� �� S/j Bid )p J2 Z�
u'
S me:US Oeoa nf&Lsbor
In February, overall Consumer Price Index (CPI) inflation was flat on a year-over-year basis after being down
0.1% in January. Headline inflation has fallen sharpy in recent months due to a precipitous decline in energy
prices. The year-over-year Core CPI (CPI less food and energy) increased slightly to 1.7% in February from
1.6% in January.
CAI Gross Domestic Product
GDP Quarterly % Change
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
Sourte: U.S Oepa nt&Commre
Real annualized GDP growth for the fourth quarter of 2014 was 2.2% (unchanged from the second estimate)
compared to 5.0% in the third quarter.
CAI Interest Rates
Yield on the Two-Year Note
March 2013 through March 2015
0.70%
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
W7 Sij �-' 0ij
u' 3 u' 3
Sauice:Bbombery
The yield on the two-year Treasury note decreased in March. Domestic economic data has recently softened,
and the timing of the first fed funds rate hike remains unclear. Meanwhile, the European Central Bank
continues to execute its bond-buying program and other global central banks are pursuing highly
accommodative monetary policies.
CAI Yield Curves
December 31, 2014 and March 31, 2015
—1=1114 �3/J1I15
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
d o 70 "'O
Sourm:Blaorr,Geig
During the past three months, the yield curve flattened. Concerns about weak global economic growth kept
downward pressure on longer US Treasury yields, even as the Fed signaled the possibility of a fed funds rate
hike this year.
� S'
Account Profile
CAI Objectives
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.
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 Bank of America Merrill Lynch 1-5 Year Corporate
Government Rated AAA—A Index.
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.
CAI Compliance
C/N Orange County Sanitation District Long Term
March 31,2015
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler Asset Management are in Full compliance win Slate lawand a th the investmempolicy
Category Standard Comment
Treasurylssues 5yeam maximum maturity Does net comply-
Suprenational "AA"or better by of 3 NRSROx 30%mabmum; 5%max, 5 Complies
are maturity; Includes onbc ADS.IBRD and IFC per CGC
U.S.Agendas 20%max issuer, 5 years maximum maturity Complies
U.S.Corporate(MTNs) "A"or better long term rating by 1 of 3 NRSROs; 30%maxmun; Does rot comply'
5%max issuer; 5 We.max maturity
Maid pal Securities "A"orhigherbylof3NRSROS;10%mabmum; 5%maxissuer; Doesnotcompy
5yeambrooddrumbratunly
Asset Backed/CMOs/ "AA"or better by of 3 NRSROs; "A"or higher issuer rating by l Doeslotcomply`
Mortgage-backed of3NRSROs; 20%mabmum; 5%maxissuer(excluding
MBS/ oNagency);5 are max maturity
Negotiable CDs "A"or better on its long term debt by l of 3 NRSROs; "Al/P1"or Complies
highest short term ratings by 1 of 3 NRSROs; 30%maximum;5%
max issuers were max maturity
CDs/TDS 5%max issuer; 5were max maturity Complies
Bankers Acceptances A-1,or equivalent highest start term mtirg by l of 3 NRSROS; Complies
40%mabmum' 5%max issuer-180 days maxinaturity
Commercial Paper A-0,or equivalent by l of 3 NRSROS; "A"or better by l of 3 Complies
NRSROs,if long tern debt issued; 25%maximum; 5%max
issuer, 270 days max maturity
Money Market Fund Highestmtiigby2of3NRSROs; 20%maximun;110%maxissuer Complies
Repurchase Agreements 102%collaterelimtion Complies
Reverse Repumhase 5%maximum,90 days max maturity Complies
Agreements
LAIF Not used by investment adviser Complies
Avg Duration Notw exceed 60 montiis - (80%to 120%of the bencimada) Complies
Maximum Maturity 5 years maximum maturity Does not comply/
-The pwrdio has thidl(30)securities wtlh malunties greater than 5 years including Mo(2)ABS,Nrea(3)CMOs,iwenty4hrse(23)MBS,fire
(5)municipals,three(3)censorious and two(2)t easunes. All offhand seaunfies ware inhented fiom the pressom manager.
"Thee are Iwo O)ABs,three(3)CMO and all marty,threa(23)MBS pxltlons MM maturities over 5 years. AddXlomd1 ,SVHE(CU51P
03611MGS1)is rated A+/A respectively by S&P and Ftich.--IM Pnlicy requires AAorldoer by at least one NRSRO, nmesecurtiesxere
InMnted film predlwe mereger.
CAI Account Profile
Portfolio Characteristics
Orange County Sanitation District Long Term
03/31/2015 12/31/2014
Benchmark* Portfolio Portfolio
Average Maturity(yrs) 2.72 3.13 2.67
Modified Duration 2.58 2.56 2.12
Average Purchase Yield n/a 1.20 % 0.95 %
Average Market Yield 0.93 % 0.91 % 0 82 %
Average Quality** AAA AA+/Aa1 AA+/Aa1
Total Market Value 386,427,669 433,591,892
BAML 1-5 Yr US Coiporate/Gov Rated AAA-A Index
Benchmark is a blendetl rating of 5&P,Moody's,and Fitch.PartfOho is S&P and Mootlys respectively.
Many securities were purchased across the Treasury, Agency, Asset Backed, Commercial Paper, and Corporate sectors of the
market to continue the process of repositioning the portfolio to be more consistent with the 1-5 year benchmark. Eight securities
were sold and fifteen matured to facilitate the additions to the portfolio. In late January$50.5 million was withdrawn from the
portfolio.
CAI Sector Distribution
Orange County Sanitation District Long Term
March 31, 2015 December 31, 2014
us
Municipal
c"Porate
Bonds
16.9% 3.8% US
SUProre1.3% \ Money s / HO 8%re0e
3%
Market
Municipal FuM
Bonds FI
2.8%
Money MBS
Market 1.3%
Fund
MBS/' — - Commemial
1.4% Paper
8.2%
cornmerolal us US
paper Treasury cM0 - Treasury
4.3% 47.7% 0.6% 38.1%
cM0
0.6%
Agency
Agency 27.7%
17.5%
AB3 ABS
5.9% 0.1%
The sector allocation evolved as the Chandler team worked to reposition the portfolio. The Treasury, Asset Backed, and Corporate
allocations all increased by 9.6%, 5.1%, and 5.8%to 47.7%, 16.9%, and 5.9% of the portfolio, respectively. The Agency allocation
declined by 10.2% to 17.5% of the portfolio, primarily due to the large number of maturing discount notes.
CAI Issuers
C/" Orange County Sanitation District Long Term Issuer Report
Account k10268 As M W3112015
Government of Un9M States USTreasury 47.74%
FMeral l lome Lane Mortgage Corp Agency 6.47%
1'Meral National Mortgage A.Iation Agency 6.44%
FMenl Home Loan(lank Agency 4.55%
Bank of Arredra Corp US Corporate 2.12%
Toyaa ABS ABS 1.97%
Bank of Tokyo-Mit UFJ Commercial Paper 1.94%
PNC Financial SeMces Group Commercial Paper 1.81%
Wells Fargo Corp US Corporate 1.76%
Drefus Tenancy MMKT FD 521 Money Market Fund FI 1.75%
JP Morgan Chase&Co US Corporate 1.43%
Toyaa Motor Co, US Corporate 1.35%
General Electric Co US Corporate 1.31%
International Fromm Corp Supranational 1.30%
Eli Lilly&Co US Corporate 1.05%
ChevmnTmm Corp US Corporate L04%
John Deere ABS ABS 1.04%
JP Morgan ABS ABS L04%
Hotels ABS ABS 1.03%
Morgan Stanley US Corporate 1.03%
Amedcen Express Credo US Corporate 0.87%
FMeral National Mortgage Assodation MBS 0.85%
HSBC USA Cory US Corporate 0.78%
General Electric ABS ABS 0.77%
Pon Authmky of New York and New Jersey mouripal Bonds 0.73%
Blink St Toll Highway Authority Municipal Bond 0.71%
Goldman Sachs lnc. US Corporate 0.69%
Hotels Mdor Cterration US Corporate 0.53%
Intel Cory US Corporate 0.52%
0midemal Pewleum Corporation US Corporate 0.52%
Toyym More,Corp Commercial Paper 0.52%
Philip Morris US Corporate 0.48%
Massachusetts St Pon Authority Municipal Bonds 0.42%
CAI Issuers Continued
C'" Orange County Sanitation District Long Term Issuer Report
Account#10268 As of 3/312015
New York City Transitional Finance AmhorIt, Municipal Bonds 0.40%
Texas State Transportation Commision Municipal Bonds 0.37%
Amgen Inc US Corporate 0.36%
Federal Home Loan Mortgage Cop MBS 0.35%
Deere&Cmnpany US Corporate 0.32%
Sure"Property Gmup Inc US Corporate 0.28%
Federal Home Loan Mortgage Corp CMU 0.28%
Southern Company US Corporate 0.26%
NCUA Guaraniood Nuts CMO 0.22%
APLAC Inc US Corporate 0.13%
University ofCallfornla Municipal Bonds 0.12%
GNMA MBS 0.10%
Cltigmup Inc US Corporate 0.05%
Federal National Mortgage Amoclatlon CMO 0.05%
Soundvlew Home Equity Loan Trust MBS 0.04%
Small Business Administration ABS 0.04%
AMRESCO Resldemal Securities Corp MBS 0.03%
SLM Corp ABS 0.01%
Wells Fargo Home Equity Trust MBS 0.00%
Total 100.00%
Quality Distribution
Orange County Sanitation District Long Term
March 31, 2015 vs. December 31, 2014
100.0%
90.o x
eo.o x
70.o x
ao.o x
50.o X
r0.o x
30.0%
20.0 z
m.o x
o.o%
F;.4 A4 4 to NR
3131/15 12/31114
AAA AA A <A NR
3131115 10.7 % 76.4 % 9.1 % 0.9 % 3.0%
12/31/14 20.1 % 71.4 % 6.9 % 0.8 % 0.8%
Source:S&P RaOnga
Cilki Duration Distribution
Orange County Sanitation District Long Term
Portfolio Compared to the Benchmark as of March 31, 2015
35.0•r,
30.0%
25.0%
20.0
15.0
10.0
5.0
0.0
0-0,25 0.25-0.50 0.50-1 1-2 2-3 3-4 4-5 5•
Portfolio Benchmark'
0-0.25 0.25-0.50 0.50-1 1 -2 2-3 3-4 4-5 5+
Portfolio 12.4% 10.6% 6.6% 17.0% 15.4% 4.1 % 28.3% 5.6%
Benchmark' 0.7% 0.2% 4.2% 31.2% 27.3% 21.9% 14.5% 0.0%
SAW 1-5 Vr US Comomte/Gov Rated AAA-A Index
The duration of the portfolio extended to 2.56 compared to 2.12 at the end of the prior quarter. The Chandler team anticipates
interest rate volatility will remain elevated in 2015 somewhat offset by the stronger dollar and global flight to US based assets,
mitigating the overall rise in interest rates. The Federal Reserve is unlikely to raise rates in the first half of 2015.
CAI Investment Performance
Orange County Sanitation District Long Term
Period Ending
March 31, 2015
Total Rate of Return
Since Inception
November 30,2014
1.00
0.80%
0.60
0.40
0.20%
0,00
3 months Since Inception
Orange County Sanitation District Lag Term BAML 1-5 Yr US Corpaate/Govt Rated AAA-A index
Latest 3 months Since Inception
Orange County Sanitation District Long Term 0.82% 0,59%
BAML 1-5 Yr US Corporate/Govt Rated AAA-A Index 0.96% 0.63%
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.
CAI Compliance
C/" Orange County Sanitation District Liquid
March 31,2015
COMPLIANCE •
Assets managed by ChandlerAsset Management are in full compliance vith State lawand vith the investmentpolicy
Category Standard Comment
Treasury Issues l year maximum maturity; Minimum allocation of 10% ;Complies
plies
Supranational "AA"or better by of NRSROs; 30%maximum; 5%max; 1
ar maturi Includes on . IADB IBRD and IFC er CGC
U.S.A encies 20%max issuer 1 ar maximum maWri leU.S.Corporate(MTNs) "A"or better long term rating by l of 3 NRSROs;30%maximum; plies
5%max issuer; 1 year max maturity
Asset Backed/CMOs "AA"or better by l of 3 NRSROs; "A"or higher issuer rating by l Complies
of NRSROs; 20%maximum; 5%max issuer, 1year max
maturity
Negotiable CDs "A"or better on its long term debt by 1 of 3 NRSROs; "At/P1"or Complies
highest short term ratings by 1 of 3 NRSROs; 30%maximum;5%
max issuerl year max maturity
CDs/TDS 5%max issuer; 1 year max maturity Com lies
Bankers Acceptances A-1,or equivalent highest short tens rating by l of 3 NRSROS; Complies
40%maximum; 5%max issuer,180 days max maturity
Commercial Paper A-1,or equivalent by 1 of 3 NRSROS; "A"or better by l of 3 Complies
NRSROs,if long term debt issued; 25%maximum; 5%max
issuer, 270 days max maturity
Money Market Fund Highest rating by 2 of 3 NRSROs; 20%maximum; 10%max issuer Complies
Repurchase A reements 102%collateralization Com lies
Reverse Repurchase 5%maximum,90 days max maturity Complies
Agreements
LAIF Not wed by investment addser Complies
Prohibited Municipal Securities Complies
Prohibited Mortgage Securities Complies
Avq Duration Not to exceed 180 days; Max duration of 1/2 year Complies
Maximum Maturity 1 year maximum maturity Complies
CAI Account Profile
Portfolio Characteristics
Orange County Sanitation District Liquid
03/31/2015 12/31/2014
Benchmark* Portfolio Portfolio
Average Maturity(yrs) 0.14 0.35 0.27
Modified Duration 0.14 0.34 0.27
Average Purchase Yield n/a 0.21 % 0.17 %
Average Market Yield 0.02 % 0.19 % 0.24 %
Average Quality** AAA AA+/Aa1 AA+/Aa1
Total Market Value 49,461,032 56,923,342
BAML 3-Month US Treasury Bill Index
Benchmad,is a blended rating of S&P,Moody's,and Fitch.PartfOho is S&P and Moodys respectively.
Multiple securities were purchased across the Treasury, Agency, Commercial Paper, and Corporate sectors of the market to keep
the portfolio structure and duration in line with Chandler objectives for the strategy. No securities were sold and twenty three
matured to facilitate the additions to the portfolio. In late January$7.5 million was withdrawn from the portfolio.
CAI Sector Distribution
Orange County Sanitation District Liquid
March 31, 2015 December 31, 2014
Camercial commercial
Paper = Paler
5.0% 4.4%
Money
us A9e y nc Market
Corporate Fun
16.3% 59U% -- FI
7.9%
3,4% \\C
4 a rate
34%
16.5%
us us
Treasury Treasury
26.3% 11.3%
The two largest changes to the sector allocation were the 15.0% increase to the Treasury sector, to 26.3% of the portfolio, offset by
the 14.6% decline in the Agency sector,to 43.4% of the portfolio. The sector allocation will continue to evolve based on the short-
term cash flow needs of the District.
CAI Issuers
OROrange County Sanitation District Liquid Issuer Report
Account 010282 AS a!N3112015
Government ol'Unlled Slaw, UST....uy 26.32%
Federal National Mortgage Association Agency 12.19%
Federal I lome Loan Mortgage Corp Agency 11.94%
Federal Hmne burn Bank Agency 11.16%
Dmfus Tmasory MMKT FD 521 Money Markel Ford FT 8,94%
Federal Farm Credit Bank Agency 8,15%
Caterpillar Inc US Corporate 4.06%
Deem&Company US Corporate 2.04%
General Marine Co US Corporate 2.04%
Charles Schwab CorpRhe US Corporate 2.03%
JP Morgan Chase&Co US Corporate 2.03%
Coulee Wimia.mle Corpomdon US Corporate 2103%
IBM Corp US Corporate 2.03%
Bank of Tokyo-Mit UP] Commercial Paper 2.02%
Toyota Motor Corp Commercial Paper 2.02%
PNC Financial Services Group Commercial Paper 1.01%
Total 100.001
Quality Distribution
Orange County Sanitation District Liquid
March 31, 2015 vs. December 31, 2014
100.0%
g0.o x
eo.o x
70.o x
ao.o x
50.o X
r0.o x
30.0 x
20.0 z
m.o x
o.o x
PaA A4 4 to NR
3131/15 12/31114
AAA AA A <A NR
3131115 17.0 % 70.8 % 12.2 % 0.0 % 0.0%
12/31/14 9.5% 75.6 % 14.9 % 0.0 % 0.0%
Source:S&P RaOnga
C& Duration Distribution
Orange County Sanitation District Liquid
March 31, 2015 vs. December 31, 2014
30.0 x
70.0 7.
60.0 z
500
400z
30.07.
20.07.
10.07.
0.0
0-025 0.25-0.50 0.50-1 1-1.5 1.5-2 2-2.5 25-3 3.
3/31/15 12G1/14
0-0.25 0.25.0.50 0.50.1 1 .1.5 1.5.2 2.2.5 2.5.3 3+
3131115 39.1 % 38.5 % 22.4% 0.0% 0.0% 0.0 % 0.0% 0.0%
12/31114 62.9% 17.6 % 19.5% 0.0% 0.0% 0.0 % 0.0% 0.0%
The duration of the portfolio extended to 0.34 versus 0.27 at the end of the prior quarter. The Chandler team will look to continue to
extend the duration of the portfolio in the coming quarter to improve the total return opportunity for the strategy.
CAI Investment Performance
Orange County Sanitation District Liquid
Period Ending
March 31, 2015
Total Rate of Return
Since Inception
November 30,2014
0.08%
0.06
0.04
0.02
0.00
3 months Since Inception
Orange County Sanitation District Liquid BAML 3-Month US Treasury Bill Index
Latest 3 months Since Inception
Orange County Sanitation District Liquid 0.07% 0.07%
BAML 3-Month US Treasury Bill Index 0.00% 0.00%
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.
CAI Compliance
CAS OCSD Lehman Exposure
March 31,2015
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler Asset Management are in full compliance wth State/awand wth the investment policy
Category Standard Comment
Treasury Issues 5 years maximum maturity Complies
Supranational "AA"or better by of NRSROs; 30%maximum; 5%max; 5 Complies
years maturity; Includes only: IADB,IBRD,and IFC per CGC
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; Does not comply"
5%max issuer 5 years max maturity
Municipal Securities "A"or higher by l of 3 NRSROS; 10%maximum; 5%max Issuer; Complies
5 were maximum maturity
Asset Backed/CMOs/ "AA"or better by 1 of 3 NRSROs; "A"or higher issuer rating by 1 Complies
Mortgage-backed of 3 NRSROs; 20%maximum; 5%max issuer(excluding
MBS/ ovtagency);5 ars max maturity
Negotiable CDs "A"or befteron its long term debt by l of 3 NRSROs; "A1/Pl"or Complies
highest short term ratings by 1 of 3 NRSROs; 30%maximum;5%
max issuer, 5 were max maturity
CDs/TDS 5%max issuer; S were max maturity Complies
Banker's Acceptances A-1,or equivalent highest short term rating by l of 3 NRSROS; Complies
40%maximum; 5%max issuer;180 days max maturity
Commercial Paper A-1,or equivalent by of 3 NRSROS; "A"or better by l of 3 Complies
NRSROs,if long tern debt issued; 25%maximum; 5%max
issuer; 270 days max maturity
Money Market Fund Highest rating by2 of 3 NRSROs; 20%maximun;10%max issuer Complies
Repurchase A reements 102%collatemlization Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
Agreements
LAIF Not used bv Investment adviser !Complies
Atig Duration I Not to exceed 60 months - 80%to 120%of the benchmark Complies;
Maximum Maturity 5 years maximum maturity Does not comply'
`Account horde$2 million face value(cusip 525ESCAV6)and$600.000 face value(cusip 525ESC161)of defaulted Lehman ems Holdings that were
purchased by the pateme,manager.
CAI Account Profile
Portfolio Characteristics
OCSD Lehman Exposure
03/3112015 12/31/2014
Portfolio Portfolio
Average Maturity (yrs) 22.71 23.63
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 295,283 368,283
SECTION 3
-- Consolidated Information
CAI Account Profile
Portfolio Characteristics
Orange County Sanitation District Consolidated
03/3112015 12/31/2014
Portfolio Portfolio
Average Maturity (yrs) 2.83 2.41
Modified Duration 2.30 1.90
Average Purchase Yield 1.08 % 0.85%
Average Market Yield 0.83 % 0.76%
Average Quality" AA+/Aal AA+/Aal
Total Market Value 436,183,984 490,883,518
C�" I Sector Distribution
Orange County Sanitation District Consolidated
March 31, 2015 December 31, 2014
u5 Money
Corporate Market
18.g% Ford _ Municipal
Suprenational FI Bows
2% 3.4%
Municipal MBS,
Bonds 1.1 %
2.4%
Marley Common u5
Market Stock
[--
Fund 0.0% Corporate
12.6%
MBS
1.2% Commercial
Common Paper
Stock 1.8%
0.0% u5 us
C..rcial Treasury CMO Treasury
Paper 45.3% 0.5% 35.0%
4A%
CMO
0.5% Agency
31.2%
Agan"
20A%
ADS ADS
0.0%
52%
SECTION 4
,r
Portfolio Holdings
C/" Orange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/15
Purchase Da:e Cost Va!ue MUd Price Market Value %of Pod. Moody1S&P Maturity
CUSIP Security Description Par Value/Units Book Yi.d Book Va us, Mkt YTM Accrued Int. GainfLoss Fifth Duration
ABS
161571FL3 Chase CHAFF Pool 42012-A5 4,000,000.00 01/07/2015 4,001,406.25 100.05 4,001,972.00 1.04% NR/AAA 2.38
0,59%Due 8115/2017 0.57% 4,001,288.81 0.45% 1,048S9 683.19 AAA 0.35
43813JAC9 Hcnda Auto Receivables 2014-1 A3 4,000,000.00 01/22/2015 3,987,812.50 99.87 3,994,988.00 1.03% Aaa I NR 2.65
0.67%Due 11121/2017 0.90% 3,988,936.42 0.78% 744.44 6.051.58 AAA 1.20
89231MAC9 Toyota Auto Receivables Owner 2014-A 4,000,000.00 01/21/2015 3,991,718.75 99.94 3,997,672.00 1D3% Aaa/AAA 2.71
0.67%Due 12115/2017 0.90% 3,992,464.29 0.72% 1,191.11 5,207.71 NR 1.17
477877AD6 John Deere Owner Trust 2014-B A3 4,000,000.00 02/04/2015 4,001,875.00 100.19 4,007.524.00 1.04% Aaa I NR 3.0
107%Due 11/15/2018 1.05% 4,001,780.32 0.96% 1,902.22 5,743.68 AAA 1.71
89236WAC2 Toyota Auto Receivables Owner 2015-A 3,595,000.00 02/24/2015 3,594,456.44 100.32 3,606,464.46 0.93% Aaa/AAA 3.88
1.12%Due 2/15/2019 1.13% 3,594,470.55 0.96% 3.019.80 11.993.91 NR 1.94
36164EAC9 GE Equipment Transportation 2015-1 A3 2,955,000.00 02/24/2015 2,954,564.14 100.14 2,959,178.37 0.77% Aaa/AAA 3.91
1.28%Due 2/25/2019 1.29% 2,954,575.35 1.22% 2,836.80 4.603.02 NR 2.13
83162CUO Small Business Administration 2001-20C 155,329.59 03/06/2001 155,329.59 106.58 165.IWE06 0.04% Aaa/AA- 5.92
6.34%Do.311/2021 6.34% 155,329.59 4.19% 820.66 10,214.47 AAA 2.97
78445JAA5 SLMA 2008-9A 48,439.32 08/22Y2008 48,242.79 102.54 49,668.81 0.01 % Aaa/AA+ 8.07
1.756%Due 4125/2023 1.85% 48,384.21 1.07% 155.95 1,284.60 AAA 0.15
22,735,405.46 22,783,011.70 5.90% Aaa/AAA 3.18
Total ABS 22,753,768.91 0.99% 22,737,229.54 0.85% 11,719.87 45,782.16 As. 1.38
31358BEK7 FNMA Discount Note 9,800,000.00 11117/2014 9,796,146.69 100.00 9,799,612.08 2.54% Aaa I AA+ 0.04
Due4/16/2015 0.10% 9,799,612.08 0.10% 0.00 0.00 AAA 0.04
313384FA2 FHLB Discount Note 10,000,000.00 01/30/2015 9,998,053.60 99.99 9,999,358.33 2.59% Aaa/AA+ 0.08
0.08%Due 511/2015 0.08% 9,999,358+33 0.08% 0.00 0.00 AAA 0.08
31358BLD5 FNMA Discount Note 10,000,000.00 03/11/2015 9,994,233.30 99.95 9,994,899.97 2.59% Ass/AA+ 0.42
CA2%Due 911/2015 D12% 9,994,899.97 D12% 0.00 0.00 AAA 0.42
313396LP6 FHLMC Discount Note 10,000,000.00 03/20/2015 9,993,194+40 99.94 9,993,661+07 2.59% P-1/A-1+ 0.45
0.14%Due 9111/2015 0.14% 9,993,661.07 0.14% 0.00 0.00 F-1+ D,15
3137EADU0 FHLMC Note 5.000,000.00 01/16/2015 4,991,050.00 99.83 4,991,395.00 1.29% Aaa/AA+ 1.83
0.5%Due 112712017 0.59% 4,991,911.04 0.60% 5,208.33 (516.04) AAA 1.81
3137FADN6 FHLMC Note 5,000,000.00 0112MO15 4,987,500.00 99.82 4,991.150.00 1.29% Asia/AA+ 2.79
0.75%Do.111MOIB 0.97% 4,969,452.40 0.81 % 8,229.17 21,697.60 AAA 2.74
3137FADP1 FHLMC Note 5,000,000.00 01/13/2015 4,974,100.00 99.84 4,991,965.00 1.29% Aaa I AA+ 2.94
0.875%Due 317/2018 1.04% 4,975,837.20 0.93% 2.916.67 16.127.80 AAA 2.89
313378A43 FHLB Note 7,500,000.00 02111/2015 7,544,850.00 101.22 7,591,830.00 1.97% Aaa I AA+ 2.94
1.375%Due 319/2018 1.18% 7,542,929.57 0.95% 6,302.08 48,9D0.43 AAA 2.87
Chandler Asset Management-CONFIDENTIAL Execution Time:411312 01 5 1:53:00 PM 35
OROrange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/15
Purchase Da:e Cost Vat MId Price Market Value %of Pod. MoodyISSP Maturity
CUSIP Security Description Par Value/Units Book Yi.d Book Va us, Mkt YTM Accrued Int. GainfLoss Fitch Duration
AGENCY
3135GOZG1 FNMA Note 5,000,000.00 12/15/2014 5,021,50D00 101.60 5,080,195oo 1.32% Aaa/AA+ 445
1.75%Due 911 W2019 1.66% 5,020,181,12 1.38% 4,618D6 60,011.58 AAA 4.27
67,280,627.99 67,434,066.45 17.46% Aaa/AA- 1.37
Total Agency 67,300,000.00 0.51% 67,287,845.08 0.45% 27,274.31 146,221.37 Aaa 1.34
CMO
62888UAA8 NOVA Guaranteed Note CMO 2010-R2 613,262.91 11/10/2010 613,260,12 100.26 614,864.75 0,16% Aaa I AA+ 2.61
D549%Due 11/6/2017 0.00% 613,26D12 0.41 % 231.36 1,604.63 NR 0.08
31398VJN FHLMC FHMS K006 A2 900,000.00 11/23/2010 951,046.88 110.73 996,5BO.80 0.26% Aaa/AA+ 4.82
4.251%Due 1125/2020 3.02% 926,866+78 1.79% 637.65 69,714.02 AAA 4.23
62888XAA2 NCUA Guaranteed Notes CM0201 D-Cl 237,007.68 11/0912010 237,618.72 100.11 237.266.26 0.06% NR/AA+ 5.59
1.6%Due 10129/2020 1.48% 237,007.68 1.51 % 21.07 258.58 AAA 1.09
3133TCE95 FHLMC FSPC E3A 86,124.40 03111/1998 86,214+48 104.61 90,098+18 0.02% Aaa/AA- 17.39
2.918%Due 8/15/2032 2.89% 86,170.01 0.50% 209.43 3.928.17 AAA 2.28
31396X305 FNMA FNR 2007-114 A6 198,879.40 01/10/2008 189,184D3 98.72 196,343.29 DOE% Pas/AA+ 22.59
0.378%Due 10/27/2037 0,72% 191,530.78 0,49% 8.35 4,812.51 AAA 1.25
2,077,324.23 2,135,153.28 0.55% Aaa/AA+ 6.43
Total CMO 2,035,274.39 1.72% 2,054,835.37 1.19% 1,107.86 80,317.91 Aaa 2.33
COMMERCIAL PAPER
06538CTV3 Bank of Tokyo Mitsubishi NY Discount 7,500,000.00 01/3012015 7,490,937.53 99.93 7,494,622.93 1.94% P-1/A-1 0.25
CP D29% 7,494,622.93 0.29% 0.00 0.00 F-1 0.25
0.29%Due 6/29/2015
6934910W22 PNC Bank Discount CP 7,000,000.00 12/10/2014 6,980,419.44 99.84 6,988.621.11 1.81 % P-1/A-1 0.42
0.38%Due 9IM015 0.39% 6,988,621.11 0.39% 0.00 0.00 F-1 0.42
89233HW42 Toyota Motor Credit Discount CP 2,000,000.00 02/2512015 1,997,255.56 99.89 1,997,746.67 0.52% P-1/A-1+ 0.43
0.26%Due 9/4/2015 0.26% 1,997,746.67 0.26% 0.00 0.00 F-1 0.43
16,468,612.53 16,480,990.71 4.26% P-1/A-1 0.34
Total Commercial Paper 16,500,000.00 0.33% 16,480,990.71 0.33% 0.00 0.00 F4 0.34
MBS
31381PDA3 FNMA FN 466397 372,547.84 12/01/2010 364,48568 10144 400,260,18 0,10% Aaa I AA+ 5.59
34%Due 11/1/2020 3.80% 367,99978 194% 246,30 32.260,40 AAA 4.84
36225CAZ9 GNMA Pco1#G280023 31,325.39 08/08/1997 31,844.22 103.31 32,362.17 0.01 % Ass/AA+ 11.73
1.625%Due 12/20/2026 1.52% 31,532.80 1.15% 42.42 829.37 AAA 4.49
36225CC20 GNMA PcoM G280088 37,469.40 08/11/1997 38,289.06 103.97 38,958.62 0.01 % Asia/AA+ 12.23
2%Due 6/20/2027 1.86% 37,805.29 1.23% 62.45 1.153.33 AAA 4.85
31348SWZ3 FHLMC PH 786064 2,798.37 0211WOOO 2,730.22 103.70 2,901.83 0.00% Aaa 1 AA+ 12.76
2.262%Due 1/1/2028 2.45% 2,767.17 1.70% 5.27 134.66 AAA 0.78
Chandler Asset Management-CONFIDENTIAL Execution Time:4113C0151:5300 PM 36
C/" Orange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/15
Purchase Da:e Cost Vat Mld Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yi.d Book Va us, Mkt YTM Accrued Int. GainfLoss Filch Duration
MISS
31371NUC7 FNMA FN 257179 50,075.59 12/05/2011 52,959S3 109.03 54,599.17 not % Asa I AA+ 13.01
4.5%Due 4I1/2028 3.72% 52,375.72 1.33% 187.78 2,223,45 AAA 3.01
31417YAY3 FNMA Pool#FN MA0022 50,188.43 12/05/2011 53,079.15 108.95 54,680.75 0.01 % Asa/AA- 14.01
4.5%Due 4/1/2029 3.76% 52,527.53 1.43% 188.21 2.153.22 AAA 2.97
313BEG6F6 FNMA FN AL0869 31,508.45 12/05/2011 33,323.28 108.97 34.335.73 0.01 % Aaa/AA+ 14.18
4.5%Due 611/2029 3.77% 32,980.28 1.80% 27.57 1,355.45 AAA 3.36
03215PFN4 AMRESCO Residential Securities 1999-1 133,743.20 05/20/2011 100,432.78 92.77 124.072.23 0.03% NR/AA+ 14.25
A 4.58% 107,531.47 2.19% 29.01 16,540.76 BBB 6.98
1A 16%Due 6/25/2029
3837H4NX9 GNMA P.1020DIN9 58,506.92 01/24/2000 58,506.92 100.64 58.881.95 0.02% Aaa/AA+ 14.89
0.677%Due 2116/2030 0.68% 58,506.92 0.34% 32.91 375.03 AAA 0.03
36225CNM4 GNMA Pooh G2 80395 13,674.32 03/15/2000 13,550.38 103.81 14,195.09 0.00% Aaa/AA+ 15.07
1.625%Due 4/20/2030 1AS% 13,611.S4 1.22% 18.52 583.15 AAA 5.96
36225CN28 GNMA P.I#G280408 112,934.48 03/15/2000 111,787.50 103.79 117,219+55 0.03% Asa/AA- 15.15
1.625%Due 51 1.69% 112,355.60 1.17% 152.93 4,863.95 AAA 5.41
31403GXF4 FNMA Pool#FN 748678 7,075.56 06/10/2013 7,606.23 111.07 7,858.53 0.00% Aaa/AA+ 18.52
5%Due 10/112033 4.16% 7,561.31 1.30% 29.48 297.22 AAA 3.23
36225DCBB GNMA P.I#G2 SONS 114,762.74 07/19/2004 114,691.03 103.48 118,751.89 0.03% Aaa/AA+ 19.32
1.625%Due 7120/2034 1.63% 114.716.45 1.18% 155.41 4,035.44 AAA 6.02
94980GAG6 Wells Fargo Home Equity Trust 9,271.38 09/13/2011 9,201.84 100.45 9,312.64 0.00% Aaa/AAA 19.58
5%Due 10125/20M 5.13% 9,212.50 3.13% 7.73 100.14 AAA 0.40
31406XWT5 FNMA Pool#FN 823358 237,564.34 01/11/2006 235,708.37 106.80 253,712.78 0.07% Ater/AA+ 19.85
2.247%Due 2/1/2035 2.30% 236,295.63 1.70% 444.84 17.417.15 AAA 0.83
31406POY8 FNMA Pool#FN 815971 533,541.45 05/10/2013 573,557.06 111.28 593.720.12 0.15% Aaa/AA+ 19.93
5%Due 3/112035 4.21 % 570,390+87 1.54% 2,223+09 23,329.25 AAA 3.33
31407BXH7 FNMA Pool#FN 826080 50,500.16 06/10/2013 54,287.67 111.29 56,203.09 0.01 % Aaa/AA+ 20.27
5%Due 7/112035 4.22% 53,992.55 1.56% 210.42 2,210.54 AAA 3.35
31376KT22 FNMA FN 357969 288,675.23 06/10/2013 310,325+88 111.21 321,022+16 0.08% Aaa I AA+ 20.44
5%Due 9/1/2035 4.22% 308,651.79 1.51 % 280.66 12.370.37 AAA 3.27
83611MG51 Soundview Home Equity Loan Tr.2005- 171,460.97 09/13/2011 151,367A9 99A3 169,960.69 0.04% NR/A+ 20.67
OPT3 A4 1,54% 154,310.12 2,28% 15.86 15,650.57 A 0.47
0.476%Due 11I25/2035
31403DJZ3 FNMA Pool#745580 272,698.86 06/10/2013 293,151.26 111.23 303,322.67 DES% Ater/AA+ 21.19
5%Due 6/1/2036 4.26% 291,621.67 1.57% 1,136.25 11.701.00 AAA 3.36
31410F4V4 FNMA Pool#FN 888336 551,845.38 06/10/2013 593,233.79 111.20 613,654.82 0.16% Aaa/AA+ 21.27
5%Due 7/112036 4.25% 590,149+52 1.56% 2,299+36 23,505.30 AAA 3.35
31397QREO FNMA FNR 2011-3 FA 575,734.17 12/20/2010 575,554.26 101.43 583.967.17 0.15% Ass/AA+ 25.93
0.854%Due 2125/2041 0.85% 575,579.22 0.46% 81.92 8,387.95 AAA 0.09
Chandler Asset Management-CONFIDENTIAL Execution Tlme'.4/13C0151:53:00 PM 37
OROrange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/15
Purchase Da:e Cost Vat MId Price Market Value %of Pod. MoodyISSP Maturity
CUSIP Security Description Par Value/Units Book Yi.d Book Va he Mkt YTM Accrued Int. Gairli-ores Fitch Duration
MBS
313MJY35 FHLMC FSPC T-582A 1,177,398.65 06/09/2011 1,333,403A5 114A3 1,353,184.27 0.35% Aso/AA+ 28.51
6.5%Due 9125/2043 5.40% 1,315,05232 3.35% 1,275.52 38,131.55 AAA 4.73
5,113,078.25 5,317,138.10 1.38% Aaa/AA- 21.37
Total MBS 4,885,301.28 3.75% 5,097,528.85 1.93% 9,153.91 219,609.25 Aaa 3.40
MONEY MARKET FUND FI
261908107 Dreyfus Short-Intermediate Gov Treasury 6,753,476.96 Various 6,753,47696 1.00 6,753,476,96 1,75% Ass/AAA 0.00
Cash Management Fd521 0.01 % 6,753,476.96 0.01 % goo 0.00 AAA 0.00
6,70,476.96 6,753,476.96 1.75% Pas/AAA 0.00
Total Money Market Fund FI 6,753,476.96 0.01% 6,753,476.96 0.01 % 0.00 0.00 An 0.00
MUNICIPAL BONDS
73358WAG9 Port Authority of NY B NJ TE-REV 2,440,000.00 Various 2,507,633.89 114.08 2,783,649.60 0.73% Aa3/AA- 4.67
5.309%Due 1211/2019 4.97% 2,470,31868 2,12% 43,179,87 313,330,92 AA- 4.12
64971MSE8 New Yodc NY TE-REV 1,400,000.00 10127/2010 1,400,000.00 109.40 1,531,628.00 0.40% Aa1/AAA 5.59
4,075%Due 1111/2020 4.08% 1,400,000.00 2.27% 23.770.83 131.628.00 AAA 4.95
913366EJ5 Univ of California Rgts Med TE-REV 400,000.00 11109/2010 400,000.00 114.63 458,508.00 0.12% Aa31 AA- 6.13
5.035%Due 5/15/2021 5.04% 400,000.00 2.45% 7,608.44 58.508.00 NR 5.25
452252FJ3 Illinois ST Toll Hwy Authority TE-REV 2,500,000.00 06/29/2009 2,464,750.00 108.90 2,722.575.00 0.71 % Aaa/AA. 8.76
5.293%Due 1/1/2024 5.43% 2,478,720.87 4.07% 33,081.25 243,854.13 AA- 3.41
88283LHT6 Texas Transportation Comm.TE-REV 1,200,000.00 07/27/2010 1,200,000.00 118.16 1,417.872.00 0.37% Me/AAA 11.01
5.028%Due 411/2026 S03% 1,200,000.00 3.W% 30,16B.00 217.872.00 NR 7.85
575898GS8 Mass ST Pod Aulh Rev TE-REV 1,300,000.00 06/09/2011 1,300,000.00 122.48 1,592,188.00 0.42% A3/A 16.26
6.202%Due 711/2031 6.20% 1,300,000.00 4.27% 20,156.50 292.188.00 A- 8.93
9,272,383.89 10,506,420.60 2.76% Aa3/AA 8.54
Total Municipal Bonds 9,2A0,000.00 5.14% 9,249,039.55 3.12% 157,964.89 1,257,391.05 AA- 5.34
SUPRANATIONAL
45950KBS8 International Finance Corp Note 5,000,000.00 03/16/2015 5,020,70000 100,38 5,018,985,00 1,30% Add/AAA 2.07
1%Due 4/24/2017 0.80% 5,020,29623 0.81 % 21,805.56 (1,31123) NR 2.03
5,020,700.00 5,018,985.00 1.30% Aaa/AAA 2.07
Total Supranational 5,000,000.00 0.80% 5,020,296.23 0.81 % 21,805.56 (1,311.23) NR 2.03
US CORPORATE
61747YCE3 Morgan Stanley Note 700,000.00 Various 737,361 00 10033 702,307,20 0.19% Baa21 A- 0.08
6%Due 4/2812015 3.79% 701,085.32 1.56% 17,850.00 1,221.88 A 0.07
949851-151`7 Wells Fargo Bank Note 6,300,000.00 07122/2013 6,297,795.00 100.15 6,309,513.00 1.64% Aa31 AA- 0.30
0.75%Due 7/2W2015 0.77% 6,299,663.59 0.25% 9,318.75 9,849.41 AA- 0.30
Chandler Asset Management-CONFIDENTIAL Execution Tlme'.4M3C0151:53:00 PM 38
OROrange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31115
Purchase Da:e Cost Va!ue MkA Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yi.d Book Vs us Mkt YTM Accrued Int. GainfLoss, Fitch Duration
US CORPORATE
001055AE2 Afar,Inc Note 500,000.00 08/04/2010 499,630.00 101.02 505,078.50 0.13% A3/A 0.38
3.45%Due 81152015 3.47% 499,972S3 0.71 % 2,2NA7 5,105,97 A. 0.37
842587CGO Southern CO Note 1,000,000.00 09/M010 999,810.00 100.79 1,007,934.00 0.26% Baal IA- 0.46
2.375%Due 9115/2015 2.38% W9,982.60 0.63% 1,055.56 7.951.40 A 0.45
1729670GO Citigroup Inc Note 200,000.00 0820/2013 198,352.00 100.28 200,554.20 DOS% Baa2I A. 0.79
1.25%Due 11152016 1.60% 199,455.69 0.90% 527.78 1,098.51 A 0.78
38141GEG5 Goldman Sachs Group Inc Note 2,000,000.00 01/042011 1,895,068.00 99.97 1,999.468.00 0.52% Baal IA- 0.98
0.715%Due 312MO16 1.76% 1,980,349.39 0.74% 396.97 19,118.61 A 0.23
89236TAK1 Toyota Motor Credit Corp Note 5,200,000.00 05/142013 5,200,000.00 100.25 5,213,223.60 1.35% Ae3/AA- 1.13
0.547%Due 51172016 0.55% 5,200,000.00 0.32% 3.316.65 13,223.60 A 0.13
06050TL%8 Bank of America Note 600,000.00 05/012014 600,000.00 99.83 598,977.60 0.16% A2/A 2.11
0.676%Due 5182017 0.68% 600,000.00 0.76% 596.78 (1,022.40) NR 0.10
94988J2L0 Wells Fargo Bank Callable Note only 500,000.00 06/052014 500,000.00 99.90 499.524.50 0.13% Aa3/AA. 2.21
6/1512016 0.53% W0,000.00 0.57% 117.92 (475.50) AA- 0.21
0.531%Due 6115/2017
060505DP6 Bank of America Corp Note 3,800,000.00 01/152014 4,334,014.00 110D4 4,181,330.00 1.10% Baa21 A. 2.67
5.75%Due 12112017 1,95% 4,169,265.00 1,87% 72,833.33 12,065.00 A 2.45
166764AA8 Chevron Corp.Callable Note Cont 4,000,000.00 12/042014 3,977,200.00 100.09 4,003,540.00 1.04% Aai/AA 2.68
11/5117 1.30% 3,979,559.34 1.07% 14,229.33 23,980.66 NR 2.55
1.104%Due 12/5/2017
458140AL4 Intel Corp Note 2,000,000.00 01/262015 2,008,280.00 100.50 2,010.082.00 0.52% Al I A+ 2.71
1.35%Due 121152017 1.20% 2,007,791+55 1.16% 7,950.00 2,290,45 A. 2.64
4W28HPH9 HSBC USA Inc Note 3,000,000.00 Various 3.003,290.00 100.00 3,000.075.00 0.78% A2/A 2.80
1.625%Due 11162018 1.59% 3,003,081.84 1.62% 10.156.25 (3,006.84) AA. 2.71
38141GFG4 Goldman Sachs Group Inc Note 600,000.00 Various 692,806+00 111.35 668,083+80 0.17% Baal IA- 2.81
5.95%Due 1118/2018 2.72% 650,237.38 1.77% 7,239.17 17.846.42 A 2.58
674599CD5 Occidental Petroleum Callable Note Cant 2,000,000.00 01/062015 1,981S340.00 99.88 1,997,550.00 0.52% A2/A 2.88
1/15118 1,73% 1,987,328.63 1,54% 3,833.33 10,221.37 A 2.72
1.5%Due 2/152018
02581MYS American Express Credit Note 2.900,000.00 Various 3,377,385.79 115.53 3,350,428.00 D87% A3/BBB- 2.97
7%Due 3/19/2018 4.28% 3,099,572.58 1.62% 6,766.66 250,855.42 A. 2.72
718172AA7 Philip Moms Intl Inc Note 1,600,000.00 08/232010 1,854,144.00 112.98 1,807.652.80 0.48% A2/A 3.13
5.65%Due 51162018 3.30% 1,702,829.19 1.39% 33,900.00 104,a23.61 A 2.85
073902CD8 Bear Steams Note 3,200,000.00 01/152014 3,523,520.00 108.91 3,485.212.80 0.91 % A3/NR 3.26
4.65%Due 71M018 2.25% 3,436,809.46 1.81 % 36,7B6.67 48,403.34 A+ 3.01
590189JN9 Merrill Lynch&Co Inc Debenture 2,800,000.00 Various 3,417,664+00 116.04 3,249,083+60 0.86% Baa2I A- 3.63
6.875%Due 111152018 2.87% 3,171,181.73 2.24% 72,722.23 77.901.87 A 3.19
532457BF4 Eli Lilly&Co Note 4,000,000.00 Various 4,009,675.00 101.71 4,068.360.00 1.05% A2/AA- 3.96
1.95%Due 3/152019 1.89% 4,008,977+40 1.50% 3,466+67 59,382.60 A 3.80
02665WAH4 American Honda Finance Note 2,000,000.00 03/132015 2,019,540.00 101.70 2,034.024.00 0.53% At I A+ 4.38
2.25%Due 81152019 2.02% 2,019,37D19 1.84% 5,750.00 14,653.81 NR 4.14
Chandler Asset Management-CONFIDENTIAL Execution Time:W13120151:53:00 PM 39
OROrange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31115
Purchase Da:. Cost Va!ue MId Price Market Value %of Pod. MoodyISSP Maturity
CUSIP Security Description Par Value/Units Book Yi.d Book Va us Mkt YTM Accrued Int. Gairri-oas Fitch Duration
US CORPORATE
24L122ESS9 John Deere Capital Corp Note 1,200,000.00 12/04/2014 1,204,956.00 102A0 1,225,21 Sol) 0.32% A2/A 4.47
2.3%Due 9116/2019 2.21 % 1,204,63 Sl 1.81 % 1,150DO 20,583.49 NR 4.22
36962G7MO General Electric Capital Corp Callable 5,000,000.00 Various 5,014,950.00 101.10 5,055,170.00 1.31 % Al/AA+ 4.78
Note Cant 12/9/2019 2.13% 6,014,833.40 1.95% 25,055.55 40.336.60 NR 4.42
2.2%Due 119/2020
46625HKA7 JP Morgan Chase Callable Note Cant 2,000,000.00 02/06/2015 1,994,880.00 100.21 2,004,284.00 0.52% A3/A 4.82
12/2312019 2.30% 1,995,018.84 2.20% 8.500.00 9.265.16 A+ 4.45
2.25%Due 1/23/2020
031162BD1 Amgen Inc Note 1,300,000.00 Various 1,318,052.00 105.46 1,371,020.30 0.36% Beal/A 5.51
3.45%Due 1011/2020 3.23% 1,313,500.23 2.38% 22.425.00 57,520.07 BBB 4.93
828807CF2 Simon Property Gmup Callable Note 1,000,000.00 08109/2010 996,050.00 110.69 1,106,889.00 0.29% A2/A 5.92
Cant 12/1/2020 4.42% 997,782.87 2.35% 3,645.83 109.106.13 A 5.04
4.375%Due 311/2021
61747WAL3 Morgan Stanley Note 2,800,000.00 0610612014 3,200,848.00 116.01 3,248,184.80 0.85% Baa2/A- 6.33
5.5%Do.7128/2021 3.24% 3,155,590.97 2.73% 26,950.00 92,593.83 A 5.39
64,861,610.79 64,902,768.70 16.90% A21A+ 2.99
Total US Corporate 62,200,000.00 2.02% 63,897,874.23 1.45% 398,744.60 1,004,894.47 A 2.63
US TREASURY
912828TXB US Treasury Note 7,500,000.00 12/15/2014 7,510,572.00 100.10 7,507,620.00 1.95% Ads I AA+ 0.63
0.375%Due 11/15/2015 0,22% 7,507,216+81 0.21 % 10,643+99 403.19 AAA 0.62
912828UC2 US Treasury Note 10,000,000.00 12/19=14 9,997,299.13 100.02 10,002,360.00 2.59% Add/AA+ 0.71
0.25%Due 1DI5/2015 D28% 9,998,053.56 D22% 7,348.90 4,286.44 AAA 0.71
912828B41 US Treasury Note 7,500,000.00 01/13/2015 7,512,915.75 100.13 7,509,375.00 1.94% Ass/AA+ 0.84
0.375%Due 1131/2016 0.21 % 7,510,312.31 0.23% 4,661.60 (937.31) AAA 0.84
91282BD31 US Treasury Note 3,500,000.00 0528/2014 3,500,340.41 100.01 3,500,294.00 0.91 % Aaa I AA+ 1.08
2.069%Due 4130/2016 2.07% 3.500,191.81 2.07% 11,903.84 102.19 AAA 0.08
91282BD64 US Treasury Note 19,600,000.00 09/OB/2014 19,596,171.88 100.13 19,624.500.00 5.08% Ads/AA+ 1.42
0.5%Due 8/31/2016 0.51 % 19,597,253+51 0.41 % 8,521+74 27,246.49 AAA 1.41
912828,346 US Treasury Note 15,000,000.00 Various 14.965,870.56 100.05 15,007.035.00 3.89% Ass/AA+ 1.67
0.5%Due 11130/2016 0.62% 14,970,911.71 0.47% 25.137.36 36,123.29 AAA 1.66
91282BJ35 US Treasury Note 10,000,000.00 03/30/2015 9,987,924+13 99.94 9,993,750+00 2.59% Aaa I AA+ 1.92
0.5%Due 2128/2017 0.56% 9,987,941.38 0.53% 4,367.83 5.808.62 AAA 1.90
912828020 US Treasury Note 12,500,000.00 Various 12,435,979.37 100.27 12,533,200.00 3.25% Aaa/AA+ 2.0
0.875%Due 11/15/2017 1.05% 12,442,322.70 0.77% 41,393.30 90,877.30 AAA 2.58
912828WS5 US Treasury Note 52,900,000.00 Various 52,816,985.09 101.55 53,722,436.30 13.96% Add/AA+ 4.25
1.625%Due 6/30/2019 1J66% 52,828,531D4 1.25% 216,093.58 893,905.26 AAA 4.08
912828V4VJ6 US Treasury Note 17,400,000.00 Various 17,443,112.67 101.50 17,661,000.00 4.58% Ass I AA- 4.34
1.625%Due 7131/2019 1.57% 17,437,653.76 1.27% 46,864.84 223,346.24 AAA 4.17
91282BF39 US Treasury Note 5,800,000.00 10127/2014 5,873,186+87 101.91 5,910,559+60 1.53% Aaa I AA+ 4.50
135%Due 9/30/2019 1.48% 5,866,877A6 1.31 % 27T33 43,681.94 AAA 4.32
Chandler Asset Management-CONFIDENTIAL Execution Time:411312 01 5 1:53:00 PM 40
OROrange County Sanitation District Long Term Holdings Report
Account#10268 As of 3/31/15
Purchase Da:e Cost Vat Mld Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yi.d Book Va as, Mkt YTM Accrued Int. GainfLoss Fitch Duration
US TREASURY j
91282BG61 US Treasury Note 7,500,000.00 12/19/2014 7,449,634.50 10077 7,557,420.00 1.97% Aaa I AA+ 4.67
1.5%Due 11/30/2019 1.64% 7,452,426.38 1.33% 37,706D4 104,993.62 AAA 4.47
912828TEO US Treasury Inflation Index Note 3,252,608.00 Various 3,259,934.55 101.03 3,286,148.90 0.85% Aaa/AA. 7.30
0.125%Due 7/15/2022 0.10% 3,259,690.91 -0.02% 853.59 26.557.99 AAA 7.26
912828MO US Treasury Inflation Index Note 10,237,760.00 Various 10,122,585A1 99.96 10,233,767.27 2e5% Aaa/AA- 9.30
0.125%Due 7/15/2024 0,24% 10,130,311.99 0,13% 2,686.71 103,455.28 AAA 9.57
182,472,512.02 184,049,M8.07 47.74% Ass/AA+ 3.88
Total US Treasury 182,690,368.00 1.04% 182,489,595.53 0.82% 418,440.45 1,559,850.54 Also 3.24
382,055,732.12 385,381,457.57 100.00% Aai/AA+ 3.13
TOTAL PORTFOLIO 379,359,189.54 1.20% 381,068,712.05 0.91 % 1,046,211.45 4,312,745.52 Aaa 2.56
TOTAL MARKET VALUE PLUS ACCRUED 386,427,669.02
Chandler Asset moral-CONFIDENTIAL Execution Time:W13/20151:53:00 PM 41
OROrange County Sanitation District Liquid Holdings Report
Account#10282 As of 3/31/15
Purchase Data Cost Va!ue Mld Price Market Value %of Pod. MoodyISSP Maturity
CUSIP Security Description Par Value/Units Book Yield Book Va us Mkt YTM Accrued Int. Guall-ores, Rhein Duration
AGENCY
313396DU4 FHLMC Discount Note 900,000.00 10/21/2014 899,71825 100.00 900,000DO IS2% Aaa 1 AA+ 0.00
Due 4/1/2015 0.07% 900,000.0o 0.07% DOO 0.00 AAA 0.00
313384EJ4 FHLB Discount Note 2,000,000.00 02/09/2015 1,999,783.34 100.00 1,999,953.33 4.04% Aaa/AA- 0.04
0.06%Due 411 5201 5 Dw% 1,999,963.33 0.06% 0.00 0.00 AAA 0.04
3137EADDB FHLMC Note 2,000,000.00 12/19/2014 2,002,184.00 100.02 2,000.376.00 4D5% Asa/AA+ DOS
0.5%Due 41172015 0.16% 2,000,301.24 0.08% 4,555.56 74.76 AAA 0.04
3135GOKM4 FNMA Note 2,000,000.00 12/192014 2,002,740.00 100.06 2,001.218.00 4.05% Ann/AA+ 0.16
0.5%Due 5127/2015 0.18% 2,000,983.59 0.11 % 3,444.44 23Al AAA 0.16
3133EAR03 FFCB Note 2,000,000.00 12/19/2014 2,003,400.00 100.08 2,001,614.00 4.05% Aaa I AA+ 0.23
0.5%Due 6QM015 0.16% 2,001,542.08 0.15% 2,722.22 71.92 AAA 0.23
3135GOLN1 FNMA Note 2,000,000.00 12/19/2014 2,003,408.00 100.09 2,001,752.00 4.05% Anus/AA+ 0.25
0.5%Due 7/2/2015 0.18% 2,001,633.00 0.15% 2,472.22 119.00 AAA 0.25
313396JM6 FHLMC Discount Note 1,000,000.00 0311MO15 999,704.44 99.97 999,748.89 2.02% P-1/A-1+ 0.31
0.08%Due 7123/2015 0.08% 999,748+89 0.08% 0.00 0.00 NR 0.31
313396K25 FHLMC Discount Note 2,000,000.00 03/03/2015 1,998,833.12 99.95 1,999,023.23 4.04% P-1/A-1+ 0.41
D11%Due 81282015 0.12% 1,999,023.23 D12% 0.00 0.00 F-1+ 0.41
313370J135 FHLB Note 1,500,000.00 12/262014 1,515,240+00 100.67 1,510,080+00 3.06% Aaa I AA- 0.45
1.75%Due 91112015 Dw% 1,50%703.59 0.24% 1,458.33 376.41 AAA 0."
3139BA3T7 FNMA Callable Note 1X M12011 2,000,000.00 1224/2014 2,025,660.00 100.85 2,016,934.00 4.08% Aaa IM+ 0.48
2%Due 92112015 0.25% 2,016,502.53 0.21 % 1,111.11 431,17 AM 0.47
31331J2S1 FFCB Note 2,000,000.00 1212MO14 2,021,180.00 100.77 2,015.432.00 4.10% Ann/M+ 0.0
1.5%Due 111162015 0.29% 2,015,062.80 0.26% 11,250.00 369.20 AM 0.62
31338OL96 FHLB Note 2,000,000.00 12/242014 2,003,320.00 100.17 2,003,474.00 4.06% Aaa I M+ 0.64
0.5%Due 111202015 0.32% 2,002,351.25 0.23% 3,638.89 1,122.75 AM 0.0
21,475,171.15 21,449,605.45 43.43% Asa/AA+ 0.32
Total Agency 21,400,000.00 0.19% 21,448,805.53 0.15% 30,652.77 2,799.92 Ata 0.31
COMMERCIAL PAPER
06538CTV3 Bank of Tokyo Mitsubishi NY Discount 1,000,000.00 02202015 999,02D00 99s3 999,307.78 2D2% P-1/A-1 0.25
CP 0,28% 999,307.78 0,28% 0.00 0.00 F-1 0.25
0.28%Due 61292015
89233HVB7 Toyota Motor Credit Discount CP 1,000,000.00 021092015 998,627.50 99.90 999,010.00 2.02% P-1/A-1+ Dw
0.27%Due 8/11/2015 0.27% 999,010.00 0.27% 0.00 0.00 F-1 0.36
69349M22 PNC Bank Discount CP 500,000.00 12/102014 498,601.39 99A4 499,187.22 1.01 % P-1/A-1 0.42
0.38%Due 9/22015 0.39% 499,187+22 0.39% 0.00 0.00 F-1 0.42
2,496,2A8.89 2,497,505.00 5.05% P-1/A-1 0.33
Total Commercial Paper 2,500,000.00 0.30% 2,497,505.00 0.30% 0.00 0.00 F-1 0.33
Chandler Asset Management-CONFIDENTIAL Execution Time'.4113C0151:53:34 PM 42
OROrange County Sanitation District Liquid Holdings Report
Account#10282 As of 3/31/15
Purchase Data Cost Va!ue MId Price Market Value %of Pod. Moody1S&P Maturity
CUSIP Security Description Par Value/Units Book Yield Book Va us Mkt YTM Accrued Int. G�irfl-.aa Fitch Duration
MONEY MARKET FUND FI
261908107 Dreyfus Short-Intermediate Gov Treasury 4,424,183.84 Various 4,424,183S4 1.00 4,424,183S4 8A4% Aaa/AAA 0.00
Cash Management Fd521 0.01 % 4,424,183.84 0.01 % 0.00 0.00 AAA 0.00
4,424,183.84 4,424,183.84 6.94% Aaa/AAA 0.00
Total Money Market Fund III 4,424,183.84 0.01% 4,424,183.84 0.01% 0.00 0.00 Ass 0.00
US CORPORATE
459200HD6 IBM Corp Note 1,000,000.00 12/222014 1,001,88000 10004 1,000,400,00 203% Aa3/Aar 0.11
D75%Due 5/11/2015 0.25% 1,000,552S4 0.39% 2,916A7 (152.9,1) A. 0.11
149121509 Caterpillar Finance Sery Corp Note 1,000,000.00 12I22/2014 1,003,340.00 100.15 1,001,482.00 2.03% A2/A 0.16
1.1%Due 5129/2015 0.31 % 1,001,257.92 0.16% 3,727.78 224.08 A 0.16
149123BY6 Caterpillar Inc.Note 1,000,000.00 12/22/2014 1,003,280.00 100.16 1,001,630.00 2.03% A2/A 0.24
D95%Due 612WO15 D29% 1,001,549.89 D26% 2,506.94 80.11 A 0.24
36962G5Z3 General Electric Capital Corp Notes 1,000,000.00 12/22/2014 1,005,820.00 100.30 1,003,034.00 2.04% Al/AA+ 0.25
1.625%Due 71M015 0.50% 1,002,848.09 0.42% 4,017.36 185.91 NR 0.25
24422ERV3 John Deere Capital Carp Note 1.008,000.00 12/22/2014 1,009,340.64 100.13 1,009,321.49 2D4% A2/A 0.43
0.7%Due 9/4/2015 0.51 % 1,008,829.92 0.39% 529.20 491.57 NR 0.42
808513AH8 Charles Schwab Corp Note 1,000,000.00 12/29/2014 1,002,700.00 100.23 1,002.276.00 2.03% A2/A 0.68
0.85%Due 1214/2015 0.56% 1,001,984.82 0.51 % 2,762.50 291.18 A 0.67
22160KAD7 Costco Wholesale Corp Note 1,000,000.00 12/29/2014 1,001,340.00 100.13 1,001,324.00 2.03% AlIA+ 0.69
0.65%Due 12/7/2015 0.51 % 1,000,988.20 0.46% 2,058.33 335.80 A+ 0.68
46623FJU4 JP Morgan Chase Note 1,000,000.00 03120/2015 1,002,380.00 100.24 1,002,415.00 2.03% A3/A 0.91
1.125%Due 2/26/2016 0.86% 1,002,330.71 0.86% 1,093.75 84.29 A+ 0.90
8,030,080.64 8,021,882.49 16.26% A21A+ 0.43
Total US Corporate 8,008,000.00 0.47% 8,020,342.49 0.43% 19,612.53 1,540.00 A 0.43
US TREASURY
912828SZ4 US Treasury Note 2,000,000.00 12/31/2014 2,002,506.70 100.06 2,001,250.00 4.05% Ass/AA+ 0.21
0.375%Due 6/15/2015 0,10% 2,001,146.36 0.08% 2,204.67 103,64 AAA 0.21
912828TK6 US Treasury Note 3,500,000.00 01/2312015 3,502,882.82 100.05 3,501,641.50 7.08% Aaa/AA+ 0.38
0.25%Due 8/15/2015 0.10% 3,501,950.56 0.13% 1.087.71 (309.06) AAA 0.38
912828VY3 US Treasury Note 3,500,000.00 01116/2015 3,503,156.26 100.05 3,501,641.50 7.08% Aaa I AA+ 0.50
0.25%Due 9/30/2015 0.12% 3,502,270.51 0.16% 23.91 (629.01) AAA 0.50
912828TX8 US Treasury Note 4,000,000.00 02/13/2015 4,006,419.65 100A0 4,004,064.00 8.11 % Aaa/AA+ 0.63
0375%Due 11/15/2015 016% 4,00540103 021 % 5,676.80 (1,337.03) AAA 062
13,D14,965.43 13,008,597.00 26.32% Aaa/AA+ 0.46
Total US Treasury 13,000,000.00 0.12% 13,010,768.46 0.15% 8,993.09 (2,171.46) Aaa 0.46
49,440,649.95 49,401,773.78 100.00% Art IAA+ 0.35
TOTAL PORTFOLIO 49,332,183.84 0.21 % 49,399,605+32 0.19% 59,258.39 2,168.46 Aaa 0.34
Chandler Asset Marapemenl-CONFIDENTIAL Execution Time:4/13C0151:53:34 PM 43
TOTAL MARKET VALUE PLUS ACCRUED 49,461,032.17
Chandler Asset Management-CONFIDENTIAL Execmmn rime:4M3C0151:53:30 PM 44
OROCSD Lehman Exposure Holdings Report
Account#1021114 As of 3/31/15
Purchase Da:e Cost Vat MId Price Market Value %of Pod. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yie d Book Va he Mkt YTM Accrued Int. GainfLoss Finch Duration
COMMON STOCK
SLIFOPNTA4 Lehman Brothers,Inc Open Position 104,812.50 11/21/2014 104,812SO 042 44,283,28 1500% NR/NR 0.00
Long Exposure 000% 104,812.50 000% 0,00 (60,529.22) NR 0.00
Due 3/31/2015
104,812.50 44,283.28 15.00% NR/NR 0.00
Total Common Stock 104,812.50 NIA 104,812.50 0.00% 0.00 (60,529.22) NR 0.00
US CORPORATE
525ESCIB7 Lehman Brothers Note-Defaulted 600,000.00 09/1912008 406,604.83 9.75 58,500.00 19.81 % NR/NR 0.82
Due 1/24/2016 0.00% 406,604A3 0.00% 0.00 (348,104.83) NR Dw
525ESCOV6 Lehman Brothers Note-Defaulted 2,000,000.00 09/18/2008 1,366,718.96 9.63 192,500.00 65.19% NR/NR 34.59
Due 10/22/2049 0.00% 1,366,718.96 0.00% 0.00 (1,174,218.96) NR 0.00
1,773,323.79 251,000.00 85.00% NR/NR 26.72
Total US Corporate 2,600,000.00 NIA 1,773,323.79 0.00% 0.00 (1,522,323.79) NR 0.00
1,878,136.29 295,283.28 100.00% NR/NR 22.71
TOTAL PORTFOLIO 2,704,812.50 NIA 1,878,136.29 0.00% 0.00 (1,582,853.01) NR 0.00
TOTAL MARKET VALUE PLUS ACCRUED 295,283.28
Chandler Asset Management-CONFIDENTIAL Execution The,4/13C0151:35 29 PM 45
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 Aal AA+ AA+
Aa2 AA AA
Aa3 AA- AA-
Upper Medium Grade Al A+ A+
A2 A A
A3 A- A-
Medium Grade Baal BBB+ BBB+
Baa2 BBB BBB
Baa3 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 As 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.
Mae" - 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 Bee are also assigned "1", "2", or "S' based on the strength of
the issue within each category. Accordingly, "At" would be the strongest group of A
securities and "AY would be the weakest A securities.
Be, B, Caa, Ca, and C - Bonds that possess one of these ratings provide questionable
protection of interest and principal ("Be" 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 Retina
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.
nm
April 30, 2015
STAFF REPORT
Certificates of Participation (COP) Quarterly Report
for the Period Ended March 31, 2015
Summary
The District 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 the
District:
In May 2007, the District issued $95.18 million of fixed rate COPS, Series 2007A
refunding a portion of the Series 2003 fixed rate debt. The true interest cost for the
issue is 4.5 percent.
In December 2007, the District issued $300 million of fixed rate COPs, Series 2007B at
a true interest cost of 4.71 percent for the issue.
In September 2008, the District issued $27.8 million of fixed rate COPs, Series 2008B
refunding the Series 1993 variable rate debt. The true interest cost for the issue is 2.96
percent.
In May 2009, the District issued $200 million of fixed rate COPS, Series 2009A at a true
interest cost of 4.72 percent for the issue.
In May 2010, the District issued $80.0 million of fixed rate BABs, Series 2010A at a true
interest cost of 3.68 percent for the issue.
In December 2010, the District issued $157.0 million of fixed rate BABs, Series 2010C
at a true interest cost of 4.11 percent for the issue.
In October 2011, the District 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.
OCSD 4 P.0.0=8147 ♦ rcun%In Valley,C 92720-0127 • (714)902-V11
Quarterly COP Report
For the Three Months Ended March 31, 2015
Page 2 of 2
In March 2012, the District 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, the District issued $66.395 million of fixed rate COPs, Series 2012E
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 the
District.
In August 2014, the District issued $85.090 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 October 2014, the District issued $120.850 million of fixed rate CANs, Series 2014B,
refunding the Series 2013A CANs. The true interest cost for the issue is 0.41 percent.
In February 2015, the District issued $127.510 million of fixed rate COPS. Series 2015A,
refunding $152,990,000 of the Series 2007B debt. The true interest cost for the issue is
3.30 percent.
Additional Information
The graph entitled, "OCSD COP Rate History Report,"shows the various fixed interest
rates of the District's eleven debt issues.
Attachments
1. Graph - OCSD COP Rate History Report
PRpnletl by Finance,41232015,102E AM
OCSD COP RATE HISTORY REPORT
MARCH 2O15
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This Page Intentionally Left Blank
ORANGE COUNTY SANITATION DISTRICT
FINANCIAL MANAGEMENT DIVISION
10844 Ellis Avenue
Fountain Valley, California 92708-7018
714.962.2411
www.oGsewers.com
03/31/15
ADMINISTRATION COMMITTEE MeedngDate TOBe.orDir.
0
5
/13115 OS/27/15
AGENDA REPORT Item Number Item Number
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance &Administrative Services
SUBJECT: 2015-16 OPERATIONAL INSURANCE RENEWALS
GENERAL MANAGER'S RECOMMENDATION
Approve not-to-exceed numbers as follows, with the understanding that the Sanitation
District's insurance broker will continue to negotiate with insurers to seek the lowest
possible premiums prior to the expiration date of the current major insurance policies:
A. Excess liability insurance - $403,662.
B. Excess workers compensation insurance - a rate of $0.3805 per $100 of payroll
(estimated premium at$240,000).
C. Property and Boiler & Machinery combined - $705,186.
D. Earthquake insurance - $88,587.
SUMMARY
The Sanitation District budget provides funds for the renewal of the following four major
insurances for District operations:
1) Excess General Liability Insurance
2) Excess Workers' Compensation
3) All-Risk Property and Flood insurance
4) Boiler& Machinery insurance
These insurance policies expire each June 30, and the Sanitation District's insurance
broker works with staff to procure renewals at the best rates available. The Committee
in the past has asked that the insurance broker present not-to-exceed numbers in May
rather than in June, so that the Committee is not presented with numbers at the very
last minute. This year an affordable earthquake insurance quote is also presented, and
money was included in the budget.
The insurance broker's letter and not-to-exceed rates are attached, along with the
informational Agenda Report presented to the Committee in March 2015.
PRIOR COMMITTEE/BOARD ACTIONS
June 2014 - The Board approved renewal of the above policies (other than earthquake
insurance, for which no quote was presented) for the period July 1, 2014 through June
30, 2015.
Page 1 of 2
ADDITIONAL INFORMATION
N/A
ATTACHMENT
The following attachment(a) maybe viewed on-line at the OCSD website (mm w.ocsd.com) with the
complete agenda package:
• Alliant's letter dated April 30, 2015 with not-to-exceed rates
• Administration Committee Agenda report March 11, 2015
Page 2 of 2
44/liant
DRIVER SPECIALTY GROUP
April 30, 2015
Mr. Randall Kleinman
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
2015-2016 Insurance Pricing—"Not to Exceed" Indications
Dear Randy:
Attached please find the requested "not to exceed" 2015-16 premium estimates worksheet for
OCSD's major property Rod casualty July 1 insurance renewals. As in prior years, it is too early
in the marketing process to provide firm renewal proposals, but we do expect to have finalized
numbers by the end of May. In addition to the estimates at the same retention and limit options,
we are also providing estimates with higher retention/deductible options which have been
requested. Brief commentary is provided here on each line of coverage Rod then other questions
that have arisen over the course of our discussion are discussed.
This year we are budgeting no change to the property insurance rate as although the property
market is improving, we want to be conservative in providing a "not to exceed" number. Given
that reported values are up 2%, this translates to a 2% premium change over last year. The
current program consists of over 15 insurance carriers participating in a layered and quota share
arrangement. All markets,plus others, we being asked to provide their best terms.
The Liability program is expected to renew, conservatively, with nothing more than a 5%
premium increase, so we are using this as a "not to exceed" number over last year's cost. The
liability program currently consists of three carriers providing a $40MM limit with $500,000
retention. You will recall that last year OCSD opted to increase its retention from $250,000 to
$500,000 and use the savings realized to increase the limit from $30MM to $40MM. This year
the program is being shopped to three lead carriers and over fifteen excess carriers to gamer the
best coverage and pricing terms. We are confident that the final cost will be within this figure.
As mentioned at the March Administration Committee meeting, we continue to feel price
pressure in the Excess Workers' Compensation arena as there has been little improvement in the
expectations of the costs of caring for injured workers in the coming years. This year, the
CSAC-EIA Excess Worker's Compensation program rates are increasing some 12% overall for
the public utility class based on their actuarial projections of ultimate losses incurred in the
forthcoming year. While this seems dramatic, we believe that the final quote from the EIA will
remain competitive with the open market. Coupled with the reported decrease in payroll, we are
expecting an 8%dollar change in premium over the prior year. As we have previously discussed,
we are in the market obtaining alternative quotations for the workers compensation program, and
expect to receive a response from five other providers.
Alliant Insurance Services,Inc. • 100 Pine Sheet, 10 Floor•San Francisco,CA 94111
PEoeE(415)403-1400•w .allian6ns asrrae corn•License No.OC36861
A4/liant
DRIVER SPECIALTY GROUP
This year the District has asked us to obtain quotations for earthquake coverage for seven key
buildings located at both Plants 1 and 2. You will recall that we have had multiple discussions
regarding the cost and possible ways to structure earthquake coverage over the years. The
District has also looked at different ways to insure the exposure, including options with different
limits, deductibles and trigger points. The latest quote, based on the desired structure of
coverage of fewer structures at a higher minimum deductible is a reasonable approach, and has
proved to reduce the initial quotes that were in excess of$1,000,000 to $88,587. This quote is
for the selected structures using a$25MM policy limit at a 5n/a/$5MM min. deductible level.
As respects premium estimates with higher retention options, the attachment details our cost
estimates for each major line of coverage at various retention/deductible levels. The key benefit
of a higher retention (deductible) is a lower premium, and a secondary benefit is usually greater
claims control. The detriment is the assumption of increased financial risk. Most entities
attempt to set their retentions at a level which optimizes their risk taking ability. For the District,
we believe that it has the financial capacity to absorb its current risk taking level, and probably
could afford to take more risk. It should be noted that the District historically has taken
significant risk in that no earthquake insurance was purchased on its physical plants, which
would be considered meaningful in the context of an overall"insurable risk"discussion.
To set an ideal retention level for each line of cover, an entity will usually engage an actuary, its
broker, or rely on internal resources to perform an analysis of historical loss levels at various
insurance attachment points. This analysis would naturally compare expected premium savings
at various attachment levels with ultimately a judgment being made as to whether the savings for
taking a higher retention are enough to offset the expected losses that will occur. The attached
document provides the needed premium estimates to perform the analysis. In the past, the
District has adjusted its retention levels by line of coverages when it was advantageous to do so.
Finally, the District has asked us to pursue multi-yew policies. In the public entity space, the
availability of such policies has been few and far between. In our marketing process, while
obtaining the most competitive rates, we do attempt to build carrier stability into the program,
and thereby try to obtain the benefits of longer term relationships. However, as the market is
dynamic, it is unknown exactly year to year which market will be the most advantageous for any
particular client. For this renewal, we are asking all of the markets approached if there is any
premium benefit to lock-in a multi-year deal.
We look forward to discussing the programs with you in more detail at your convenience.
Ve truly
i
Dennis Mul eeney
Senior Vice President
(415)403-1421 direct
dmulaueenevnalliant.com
Alliant Insurance Services,Inc. • 100 Pine Sheet, 10 Floor•San Francisco,CA 94111
Panne(415)403-1400•w .allian6nsurancexotn•License No.OC36861
OCSD 2015 Premium Estimates
Dollar Percent
Excess Liability 2014 2015 Change Change
1 st Excess- Security National
Limit 10,000,000 10,000,000 - -
SIR 500k/500k 500k/500k - -
Premium 234,000 245,700 11,700 5%
2nd Excess- Starr
Limit 20,000,000 20,000,000
Premium 115,090 120,845 5,755 5%
3rd Excess- Great American
Limit 10,000,000 10,000,000 - -
Premium 35,350 37,117.50 1,768 5%
Self Insured Retention 500,000 500,000.00 0% 0%
Total Limit 40,000,000 40,000,000 0% 0%
Total Premium 384,440 403,662 19,222 5%
Dollar Percent
Excess Workers'Comp 2014 2015 Change Change
Payroll 65,431,701 63,083,100 (2,348,601) 4%
Limit Statutory Statutory
Rate Per$100 0.3401 0.3805 0.04 12%
SIR 750,000 750,000 - 0%
Premium 222,527 240,000 17,473 8%
Dollar Percent
Property- Boiler&Machinery 2014 2015 Change Change
Values 1,864,845,724 1,904,048,692 39,202,968 20/
Rate Per$100 0.038 0.038 - 0%
Premium 705,186 720,010 1 14,824 2%
Subtotal Premium-Major Lines
Overall 1,312,153 1,363,672 51,519 4%
Dollar Percent
Property- Earthquake Option 2014 2015 Change Change
Values - 61,216,088 n/a n/a
Rate Per$100 - 0.145 n/a n/a
Premium(Incl T&F) - 88,587 n/a n/a
Total Premium-Major Lines, Including Earthquake
Overall 1,312,153 1,452,259 140,106 11%
OCSD 2015 Premium Estimates-Higher Retention Options
Excess Workers'Comp
Option 1 - Exp. Option 2 Option 3
Self Insured Retention 750,000 1,000,000 1,506,000
Payroll 63,083,100 63,083,100 63,093,100
Limit Statutory Statutory Statutory
Rate Per$100 0.3805 0.3091 0.2235
Premium 240,000 195,000 141,000
Premium Change From Option 1: (45,000) (99,000)
Rate Change From Option 1: -19% -41%
SIR Change From Option 1: 33% 100%
Property 2015
Option 1 - Exp. Option 2 Option 3
Deductible 250,000 500,000 1,000,000
TN 1,864,845,724 1,864,845,724 1,864,845,724
Rate Per$100 0.0378 0.0359 0.0343
Premium 705,186 670,186 640,186
Premium Change From Option 1: (35,000) (65,000)
Rate Change From Option 1: -5% -9%
Deductible Change From Option 1: 100% 300%
General, Auto,EPLI Liability
Option 1 - Exp. Option 2 Option 3
Self Insured Retention 500k/500k 750k/750k 1M/1M
Limit 40,000,000 40,000,000 40,000,000
Retention 500,000 750,000 1,000,000
Premium 403,662 376,100 362,975
Premium Change From Option 1: (27,563) (40,688)
SIR Change From Option 1: 50% 100%
ATTACHMENT
ADMINISTRATION COMMITTEE NeebngDate To ad.ofDir.
03,11,15 --
AGENDA REPORT Item Number Item Number
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance &Administrative Services
SUBJECT: STATUS OF 2015-16 INSURANCE RENEWALS
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Historically, the Administration Committee has asked for status updates regarding the
renewals of major insurance policies each year. The Risk Management Division and
the Sanitation District's operational insurance broker begin the process of renewal each
January, and final quotes are typically received in June shortly before the beginning of
the new fiscal year.
The Sanitation District budget provides funds for the renewal of the following four major
insurances for District operations:
1) Excess General Liability Insurance
2) Excess Workers' Compensation
3) All-Risk Property and Flood insurance
4) Boiler& Machinery insurance
PRIOR COMMITTEE/BOARD ACTIONS
June 2014 - The Board approved renewal of the above four policies for the period
July 1, 2014 through June 30, 2015.
ADDITIONAL INFORMATION
1) Excess General Liability Insurance Program
The Sanitation District's Excess General Liability Insurance Program is currently
provided through the California Municipal Excess Liability Program (CAMEL) and its
sister program, the Alliant National Municipal Liability Program (ANML). The
Sanitation District has participated in the CAMEL program since FY 1996-97.
Page 1 of 3
ATTACHMENT
ADDITIONAL INFORMATION (cont'd)
This program currently provides the Sanitation District with a $40 million policy of
comprehensive coverage for municipal liability, bodily injury and property damage,
and personal injury. The program was structured to also include Employment
Practices, and Public Officials Errors & Omissions coverage. The $40 million
coverage has a self-insured deductible of $500,000. Since 1997, the Employment
Practices portion of coverage has been enhanced from a $2 million sub-limit to the
full policy limit.
The actual insurance coverage currently consists of three separate layers. The first
layer is the "Basic" $10 million program with self-insured retention of $500,000. The
second layer consists of $20 million of coverage in excess of the first layer of $10
million. The third layer is $10 million of coverage in excess of the second layer.
The premium for 2014-15 for the three layers was $384,440.
2) Excess Workers' Compensation Insurance
The Excess Workers' Compensation insurance coverage is with the California State
Association of Counties Excess Insurance Authority (CSAC EIA). The Sanitation
District has participated in this program or its predecessor since 2003. Excess
Workers' Compensation Program currently provides so-called "Statutory" (unlimited)
coverage with a self-insured retention (SIR), or deductible, of$750,000.
The use of Excess Workers' Compensation Insurance dates back to the late 1980's.
At that time, the Fiscal Policy Committee approved an SIR, or deductible, of
$250,OOO, for such coverage.
Due to the hardening of the workers' compensation market, this deductible was
raised to $500,000 beginning in FY 2002-03 through a policy with Employers
Reinsurance Corporation (ERC) that provided coverage at the time of $25 million
with a self-insured retention (SIR), or deductible of$500,000.
Some additional risk may be associated with the CSAC EIA joint powers authority in
that a premium surcharge can be assessed to individual members if an unusually
large number of losses were to occur outside of the actuarial evaluation estimates.
However, historically the CSAC EIA premiums for excess workers compensation
have been so much less than competing quotes available to the Sanitation District
that even if there were a surcharge, the cost might still continue to be cheaper.
The renewal of the Excess Workers' Compensation Insurance for the period July 1,
2014 through June 30, 2015 was at an estimated premium of$222,527 based on the
estimated 2014-15 payroll. Since the premium itself is based on final payroll, the
Sanitation District will not know the exact final premium until the year is over.
Page 2 of 3
ATTACHMENT
ADDITIONAL INFORMATION (cont'd)
3) All-Risk Property and Flood Insurance
The All-Risk Property and Flood Insurance Program (Property Insurance) provides
for comprehensive coverage for much of the Sanitation District's real and personal
property regarding virtually all perils including fire, flood, and business interruption.
The Sanitation District previously carried earthquake insurance as part of its
Property Insurance, but in the last few years earthquake insurance has been
impossible to obtain or not cost-effective. The Sanitation District asks its insurance
broker each year to survey the market to see if rates have changed.
Current Property Insurance limits are $1 billion for most perils other than flood and
earthquakes, and $300 million for flood, with many sub-limits for various situations.
In order to reach $1 billion in limits, the broker had to arrange for more than a dozen
different insurers. The SIR is $250,000 per occurrence for most types of losses.
Since the late 1990's, the Property Insurance has been with a nationwide joint
purchase property insurance program called Public Entity Property Insurance
Program (PEPIP), one of the world's largest property programs. It is important to
note that this joint purchase property insurance program offers the purchasing power
of numerous large public entities without the pooling or sharing of coverage or
losses.
The renewal of All-Risk Property and Flood Insurance for the period July 1, 2014
through June 30, 2015 was at a premium of$682,006.
4) Boiler& Machinery Insurance
The Boiler & Machinery insurance program provides comprehensive coverage for
loss caused by machinery breakdown and explosion of steam boilers or other
covered process equipment, including damage to the equipment itself and damage
to other property caused by covered accident.
The current Boiler & Machinery insurance program provides coverage ($100 million
per occurrence with deductibles ranging from $25,000 to $350,000) for losses
caused by covered machinery breakdown (e.g., motors, steam turbines, digesters,
co-gen engines). Damages to the equipment, as well as damages to other property
and improvements caused by the machinery breakdown, are covered by the boiler&
machinery insurance. This program augments the Sanitation District's all-risk
property insurance that covers perils such as fire and flood.
The renewal of the Boiler & Machinery Insurance Program for the period July 1,
2014 through June 30, 2015 was at $23,180.
Page 3 of 3
ADMINISTRATION COMMITTEE Neebng Date To ad.of Dir.
05,13,15 --
AGENDA REPORT Item Number Item Number
6
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: CAPITAL IMPROVEMENT PROGRAM (CIP) UPDATE FOR FY2015/16
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Staff will present the Capital Improvement Program validation results to be included in
the upcoming FY2015/16 Budget Update recommendation.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET/PURCHASING ORDINANCE COMPLIANCE
N/A
ATTACHMENT
The following attachment(s) maybe viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
N/A
KM:sa:gc
Page 1 of 1
ADMINISTRATION COMMITTEE Meebng Date To ad.ofDir.
05,13,15 --
AGENDA REPORT Item Number Item Numbe
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: INFORMATIONAL PRESENTATION ON THE 2015-16 BUDGET
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
Staff will provide an overview of the 2015-16 Budget Update, including District revenues,
Capital Improvement and Operating expenditures and long-term liabilities.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET/PURCHASING ORDINANCE COMPLIANCE
N/A
Page 1 &1
ORANGE COUNTY SANITATION DISTRICT
Agenda
Terminology Glossary
Glossary of Terms and Abbreviations
AQMD Air Quality Management District
ASCE American Society of Civil Engineers
BOD Biochemical Oxygen Demand
CARB California Air Resources Board
CASA California Association of Sanitation Agencies
CCTV Closed Circuit Television
CEQA California Environmental Quality Act
CRWQCB California Regional Water Quality Control Board
CWA Clean Water Act
CWEA California Water Environment Association
EIR Environmental Impact Report
EMT Executive Management Team
EPA U.S. Environmental Protection Agency
FOG Fats, Oils, and Grease
FSSD Facilities Support Services Department
gpd Gallons per day
GWR System Groundwater Replenishment System (also called GWRS)
ICS Incident Command System
IERP Integrated Emergency Control Plan
LOS Level of Service
MGD Million gallons per day
NACWA National Association of Clean Water Agencies
NPDES National Pollutant Discharge Elimination System
NWRI National Water Research Institute
O&M Operations and Maintenance
OCCOG Orange County Council of Governments
OCHCA Orange County Health Care Agency
OCSD Orange County Sanitation District
OCWD Orange County Water District
GOBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
POTW Publicly Owned Treatment Works
ppm Parts per million
RFP Request For Proposal
RWQCB Regional Water Quality Control Board
SARFPA Santa Ana River Flood Protection Agency
Glossary of Terms and Abbreviations
SARI Santa Ana River Inceptor
SARWQCB Santa Ana Regional Water Quality Control Board
SAWPA Santa Ana Watershed Project Authority
SCADA Supervisory Control and Data Acquisition system
SCAP Southern California Alliance of Publicly Owned Treatment Works
SCAQMD South Coast Air Quality Management District
SOCWA South Orange County Wastewater Authority
SSMP Sanitary Sewer Management Plan
SSO Sanitary Sewer Overflow
SWRCB State Water Resources Control Board
TDS Total Dissolved Solids
TMDL Total Maximum Daily Load
TSS Total Suspended Solids
WDR Waste Discharge Requirements
WEF Water Environment Federation
WERF Water Environment Research Foundation
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 know as the benthic zone.
Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes
decomposition by microorganisms. Testing for BOO is done to assess the amount of organic matter in
water.
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
farm land 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.
Glossary of Terms and Abbreviations
Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic
wastewater contaminants.
Dilution to Threshold (D!f) — the dilution at which the majority of the people detect the odor
becomes the DrT for that air sample.
Greenhouse gases — 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 (GWR) System — 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 the Orange County Sanitation District provides 70 million gallons a
day of drinking quality water to replenish the local groundwater supply.
Levels of Service (LOS)—Goals to support environmental and public expectations for performance.
NDMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been
found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide
with extra ultra-violet treatment.
National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water
Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S.
Environmental Protection Agency (EPA). NBP is committed to developing and advancing
environmentally sound and sustainable biosolids management practices that go beyond regulatory
compliance and promote public participation in order to enhance the credibility of local agency
biosolids programs and improved communications that lead to public acceptance.
Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility.
Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant.
Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million
gallons per day (MGD) 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. Combined sewers carry both wastewater and urban run-off.
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.
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.
Glossary of Terms and Abbreviations
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.