HomeMy WebLinkAbout98.05-25-16 Board Item 11 Attachment - Consolidated Financial Report for 3rd Quarter Ended 3-31-16 ONLINE.pdf Orange County Sanitation District
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Table of Contents
ExecutiveSummary...................................................................................................1
Budget Review
Section 1 —Consolidated Financial Reports..........................................................................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 Treasurer's Repo rt........................................................................................1
QuarterlyCOP Repo rt.................................................................................................1
FY 2015-16 Third Quarter Financial Report
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Executive Summary
Consolidated Financial Reports
For the Third Quarter Ended
March 31, 2016
Included in this consolidated report are the following quarterly financial reports for the
period ended March 31, 2016:
• Third Quarter Budget Review:
The Consolidated Financial Reports Section provides the Directors, staff, and the
general public with a comprehensive overview of the financial results of the
Sanitation District through the third quarter ended March 31, 2016.
Contained within the Consolidated Financial Reports is the budget-to-actual
status of the Collections, Treatment and 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, 2016.
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 104.3 percent through the first three quarters of the
fiscal year, mainly due to the receipts of $174.9 million from the issuance of
Wastewater Refunding Revenue Obligations, Series 2016A. The 2016A
Obligations were used to refund a portion of Certificate of Participation Series
2009A. Excluding debt financing proceeds, total revenues slightly lag the
budget at 63.8 percent. Total revenues are projected to approximate 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 Consolidated Financial Reports Section of this report,
the net operating requirements through the third quarter of $104.5 million is
currently tracking at 70.0 percent of the $149.3 million budget. In addition,
net operating expenses have decreased $582,000 or 0.6 percent in
comparison with the same period last year. Overall, staff expects the total
operating costs to remain within budget throughout the remainder of the year.
More detailed information on District operating expenses is provided within
Section 1- Pages 1 through 3.
The total cost per million gallons is approximately $2,068.6 based on flows of
183.7 million gallons per day. This is $23.6 per million gallons, or 1.2 percent
higher 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.
Page 1
FY 2015-16 Third Quarter Review
d) The total projected capital outlay cash flow of the Capital Improvement
Program (CIP) for FY 2015-16 has been revised to $140.2 million, or 74.7
percent of the board approved cash outlay of$187.8 million. The actual cash
outlay spending through the third quarter is $106.0 million, or 56.4 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 154 basis points over the
quarter, slightly underperforming the Bank of America Merrill Lynch 1-5 year AAA
U.S. Corporate and Government Index return of 156 basis points, while the Liquid
Operating Monies Portfolio returned 17 basis over the quarter, outperforming its
benchmark, the three-month Treasury Bill index return of 10 basis points.
Chandler further notes that the Federal Open Market Committee (FOMC) left
policy rates unchanged in March, as expected. The tone of the FOMC policy
statement was largely dovish and the Committee's consensus forecast for the
year-end target federal funds rate was revised down to a level more closely
aligned with market expectations. The FOMC's median forecast now implies two
rate hikes in 2016 versus the previous forecast of four rate hikes. Fed funds
futures prices currently imply just one more rate hike this year. The FOMC also
adjusted some of their longer term forecasts, with the pace of rate hikes in 2017
and 2018 moving modestly lower. Chandler believes monetary policy continues to
be data dependent and we will be watching developments in currency market
valuations, in particular the direction of the US Dollar, to help ascertain the future
direction of the FOMC. A stable or weaker dollar will likely give the FOMC more
latitude to continue the normalization process specific to the federal funds target
rate; a stronger dollar would have the opposite impact.
Domestic economic data is generally favorable. Labor market trends continue to
improve, consumer confidence is strong, and housing trends remain healthy. In
addition, manufacturing trends seem to be improving. Payrolls have increased by
an average of 209,000 per month over the past three months. Meanwhile inflation
pressures remain contained. Fourth quarter 2015 GDP grew at a stronger than
expected annualized pace of 1.4%, following growth of 2.0% in the third quarter.
Market participants have been forecasting GDP growth of about 2.0% in the first
quarter of 2016, but some economists recently reduced their forecast.
Page 2
Executive Summary
In March, the Treasury yield curve steepened slightly, with the 2-year Treasury
yield down five basis points and the 10-year Treasury yield up three basis points.
We believe the modest decline in shorter-term yields was influenced by largely
dovish comments made by members of the FOMC during the month. Even though
inflation remains contained for now, which gives the Fed more leeway to remain
highly accommodative, Chandler believes strong labor market trends leave the
door open for the Fed to continue normalizing monetary policy this year, and that
two more 25 basis point fed funds rate hikes before year-end are possible.
Ongoing uncertainty about monetary policy and how the Fed communicates its
economic projections will likely continue to fuel financial market volatility.
Economic Outlook
The overall global economic backdrop remains precarious in Chandler's view.
Economic challenges abroad, particularly in Europe and Japan, are likely to limit
the ability of the Federal Reserve to 'normalize' monetary policy as much as they
would like. Negative interest rates in Europe and Japan will put a ceiling on how
high domestic interest rates can move. The domestic economy looks to be in
decent health with non-farm payrolls averaging 209k over the past three months
and the U-3 unemployment rate at 5.0%. Wage inflation has been dormant but the
Chandler team is closely following the U-6 unemployment rate (part-time and
marginally attached workers), most recently at 9.8%, to gauge whether wage
inflation will start to exert some influence on broader inflation metrics.
Encouragingly market based measures of inflation have moved off the lows, but
are still at values inconsistent with the Federal Reserve being 'behind the curve'
with regards to traditional monetary policy. Chandler maintains the view the
Federal Reserve will be able to increase the Federal Funds target rate two times
in 2016, but the risk is to the downside (i.e. only be able to increase one time).
Oil prices have recently firmed and positively contributed to the improved
economic outlook over the past several weeks. The influence of oil on risk assets
will dissipate assuming the volatility in the commodity market stabilizes. Over an
intermediate time horizon we would expect the lower price of oil to be a positive
influence on consumer spending, but to date the impact has been
underwhelming. Even with the recovery in the price of oil the earnings outlook for
many energy companies remains challenging. The Chandler team will continue to
focus on opportunistically adding attractively priced securities to the respective
OCSD portfolios. The spreads on very high quality corporate notes looks
expensive currently, and we are likely to focus on some of the more attractively
priced finance names in the coming quarter. Agency, Supranational, and Asset
Backed security valuations also look fair on a risk adjusted basis and the
Chandler team will continue to be opportunistic in altering the exposure of the
respective portfolios.
• 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
FY 2015-16 Third Quarter Review
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Page 4
Consolidated Financial Reports
Third Quarter Financial Report
March 31, 2016
Financial Management is pleased to present the FY 2015-16 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, 2016, 70.0 percent, or $104.5 million of the
FY 2015-16 net operating budget of $149.3 million has been expended. Net operating
expenses decreased from the same period last year by $582,000, or 0.6 percent, mainly
due to a decrease of$2.0 million in Salaries and Benefits and $96,000 in Research and
Monitoring, and an increase of $2.2 million in indirect costs allocated out to capital
projects. These reductions to net operating expenses have been partially offset by
increases of$1,845,000 in Repairs and Maintenance, $761,000 in Contractual Services,
$488,000 in Operating Materials and Supplies, $314,000 in Professional Services,
$238,000 in Utilities, $75,000 in Administrative Expenses, and $41,000 in Training and
Meetings. These and other variances that factor into this net increase in expenses are
discussed in more detail below. Overall, staff expects the total operating costs to
remain at budget throughout the remainder of the year.
Significant operating results as of March 31, 2016 include the following:
• Salaries. Wages and Benefits — Personnel costs of $68.6 million are slightly
below target at 72.3 percent of budget through the third quarter of FY 2015-16.
Although the budget is based on a 5 percent vacancy factor, staffing is 53 full-time
equivalents (FTE's), or 8.5 percent below the total 624 FTE's approved in the FY
2015-16 budget. Salary and benefit costs are $2.0 million or 2.9 percent lower than
the $70.6 million incurred in the same period last year, mainly due to the decrease in
OCERS retirement of$3.4 million. This decrease is reflective of the decrease in the
employee contribution rate as a result of the $175 million pay down on the unfunded
actuarial accrued liability over the previous two fiscal years. Net operating
personnel costs are expected to be below budget throughout the remainder of
the year.
• Administrative Expenses — Administrative Expenses totaled $1.2 million, or 76.4
percent of the $1.6 million budget through March 31. These costs are $75,000
or 6.5 percent higher at March 31 in comparison with the prior year mainly due to an
increase of $59,000 in purchases of small computer items and $27,000 in purchases
of minor furniture and fixtures, offset by a decrease of $11,000 due to the timing in
membership payments versus when these payments are due. It is anticipated that
the administrative costs will approximate budget at year-end.
Section 1 - Page 1
FY 2015-16 Third Quarter Report
• Printing and Publication Expenses — Printing and Publication Expenses totaled
$184,000, or 44.7 percent of the $412,000 budget through March 31. These
costs are $18,000 or 8.9 percent lower at March 31 in comparison with the prior
year, mainly due to the prior year purchase of aluminum prints of new core values.
It is anticipated that the printing and publication costs will be below budget at
year-end
• Training and Meetings — Training and meetings of $516,000 are below target at
49.1 percent of the $1.1 million budget. This account is lower than the
proportionate budget due to the timing and need for training throughout the year.
These costs have increased over the same period last year by $41,000 or 8.6
percent, which includes $38,000 for Emergency Operations Center (EOC) training
courses and functional exercises not incurred in the prior period. Total training and
meeting costs are anticipated to be below budget at year-end.
• Operating Materials and Supplies — Operating materials and supplies of $12.0
million is slightly below target at 69.7 percent of budget through March 31.
Operating Materials and Supplies have increased from the prior year by $488,000 or
4.3 percent, primarily due to increases in Cogen and Miscellaneous Chemicals of
$200,000, Safety Equipment of $141,000, Chemical Coagulants of $107,000, Tools
of $88,000, Other Operating Supplies of $25,000, and Gas, Diesel and Oil of
$15,000, offset by decreases in Disinfection of $92,000. The increases are mainly
brought about by a combined increase in the advance purchases for tools and
equipment, as well as increased use of activated carbon and urea due to Project J-
111 to install emissions controls on 8 engines in Central Generation. Based on
current processes, operating materials and supplies are anticipated to
approximate budget at year-end.
• Contractual Services — Contractual services is slightly below target at $16.7
million or 70.0 percent of budget through March 31. Solids Removal costs,
budgeted at $17.4 million, comprise the majority of this expense category. With an
increase of $302,000, or 2.3 percent higher than the prior year, solids removal costs
totaled $13.2 million, or 76.0 percent of budget at March 31. In addition, Other
Contractual Services increased by $680,000 due to an increase in manhole
rehabilitation projects, sewer line cleaning, and CCTV inspections, and Temporary
Services increased by $78,000 due to filling position vacancies. These increases
were somewhat offset by decreases of $149,000 in Other Waste Disposal and
$95,000 in Oxygen Plant Operation. Overall, Contractual Services is higher by
$760,000 or 4.8 percent over the same period last year. Total contractual
services costs are anticipated to approximate budget at year-end.
• Professional Services — Professional services costs totaled $2.1 million or 60.3
percent of the $3.5 million budget through March 31. Most professional service
costs, such as Audit &Accounting, Engineering, Environmental Scientific Consulting,
Software Program Consulting Services, Advocacy Efforts, 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, timing of services needed, the
Section 1 - Page 2
Consolidated Financial Reports
need for the service being re-evaluated, or utilization of internal staffing for projects.
These costs are $314,000 or 17.6 percent higher at March 31 in comparison with the
prior year mainly due to an increase in legal services and timing of services
performed. It is anticipated that the costs for this category will approximate or
be below budget at year-end.
• Research and Monitoring — Research and monitoring costs totaled $522,000, or
62.8 percent of the $831,000 budget through March 31. These costs are
$96,000, or 15.5 percent lower at March 31 in comparison with the prior year, due to
a decrease of $68,000 in Air Quality Monitoring due to the timing of emissions
testing and $28,000 in Environmental Monitoring, primarily due to prior period
installation of an electronic navigation/communication suite onboard the Nerissa
vessel. Total Research and Monitoring costs are anticipated to approximate or
be below budget at year-end.
• Repairs and Maintenance — Repair and maintenance costs totaled $10.0 million,
or 81.0 percent of the $12.3 million budget through March 31. These costs are
$1.8 million, or 22.7 percent higher at March 31 in comparison with the prior year,
mainly due to large current period repair services such as Plant 2 Cengen engine
overhaul and digester C treatment, and Plant 1 primary clarifier effluent piping, and
repairs to engine #1 and blowers #14, offset by a decrease in prior period materials
purchases, such as power packs. It is anticipated that the costs for this
category will approximate or exceed budget at year-end.
• Utilities — Utilities costs totaled $5.7 million, or 73.7 percent of the $7.8 million
budget through March 31. These costs are $238,000 or 4.3 percent higher at
March 31 in comparison with the prior year, primarily due to an increase in electricity
charges of $274,000 and water charges of $58,000 as a result of increased rates
and usage primarily related to increased activity, offset by a decrease in natural gas
charges of $120,000. 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 78.2 percent of the $1.7 million budget through March 31. Regulatory
Operating Fees comprise the majority of this expense category. These costs are
$67,000 or 10.7 percent higher at March 31 in comparison with the prior year
primarily due to the increases in annual permit fees to State Water Resources
Control Board (SWRCB) and emission fees, annual operation fees, and other
miscellaneous regulatory fees to South Coast Air Quality Management District
(SCAQMD). Miscellaneous Operating Expenses have also increased over the prior
year by $37,000, or 30.5 percent due to the increase in safety supplies. These
increases were somewhat offset by a decrease of $93,000, or 87.9 percent in
Section 1 - Page 3
FY 2015-16 Third Quarter Report
outside equipment rental due to prior period emergency truck rental. It is
anticipated that the costs will approximate budget at year-end.
• Revenues — Service Fees and Property Taxes — Through March 31, revenues
from service fees are at $180.9 million, or 61.5 percent of budget and Property
taxes are $51.3 million, or 58.0 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. An
increase of $12.1 million or 7.2 percent in service fee revenue over the prior period
is due in part to an increase in fees of 1.9 percent, timing of customer payments, a
decrease in adjustments, and a decrease of $1.3 million in user fee refunds issued
in the current period. An increase of $2.9 million or 6.1 percent in property tax
revenues over the prior period is due to an increase of approximately 2.0 percent in
property tax rates, higher construction activities and property values, and timing of
taxes collected by the County. These revenues are expected to approximate
budget at year-end.
• Revenues — Permittee User Fees — Permittee User Fees are at $8.3 million, or
61.4 percent of the $13.6 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 $941,000 or 10.2 percent lower in comparison
with the same period last year due to a decrease in the number of permittees and a
decrease in the amount of discharge from the permittees. It is estimated that the
permittee user charges will be below budget at year-end.
• Revenues — Inter District Sewer Use - SAWPA — Inter District Sewer revenues-
SAWPA are at $2.2 million, or 82.52 percent of the $2.7 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 approximate or
exceed budget at year-end.
• Revenues — Intra District Sewer Use — IRWD — Intra District Sewer revenues-
IRWD are at $3.3 million, or 130.4 percent of the $2.6 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 $1.5 million or 85.7 percent mainly due to an increase in flows
discharged from IRWD and an increase in unit costs of operation and maintenance
charges to IRWD. These revenues are expected to exceed budget at year-end.
• Revenues - Sludge Disposal- IRWD - Sludge Disposal fees-IRWD are at $7.6
million, or 84.9 percent of the $8.9 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 $1.7 million or 30.1 percent, mainly due to a
decrease of $1.7 million in prior year adjustments due to IRWD. These revenues
are expected to approximate or exceed budget at year-end.
Section 1 - Page 4
Consolidated Financial Reports
• Revenues — Capital Assessments- IRWD — Capital Assessments-IRWD are at
$1.9 million, or 83.5 percent of the $2.3 million budget. The revenues through
the third quarter are higher than the same period last year by $1.6 million or 584.6
percent mainly due to a decrease of$1.5 million in reversals from the prior period for
projects that have been accrued and placed in service during the prior 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 approximate or exceed budget at year-end.
• Revenues — Capital Facilities, Capacity Charges (CFCC) — CFCC are at $10.6
million, or 96.6 percent of the $11.0 million budget. The revenues through the
third quarter are lower than the same period last year by $1.7 million or 13.9 percent
due to lower construction activity completed and less discharge from permittees than
at this time last year. These revenues are expected to approximate or exceed
the budget at year-end.
• Revenues — Interest Earnings — Interest Earnings are at $6.6 million or 108.9
percent of the $6.1 million budget. The revenues through the third quarter are
higher than the same period last year by $1.2 million or 22.9 percent due to a higher
interest rate environment than anticipated. It is estimated that the interest
earnings will exceed the budget amount at year-end.
• Revenues — Wastehauler — Wastehauler revenues are at $531,000 or 67.2
percent of the $790,000 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 approximate budget at year-end.
• Revenues — Grant Revenue — Grant revenue is at $450,000 with no budget. This
revenue consists of a federal grant received from the United States Bureau of
Reclamation for $450,000. Grant funds were received related to the Effluent Reuse
Study for the Groundwater Replenishment System (GWRS), of which one half of the
consultant costs less grant funds received will be reimbursed by the Orange County
Water District once the study is complete. It is anticipated that grant revenue will
exceed budget at year-end.
• Revenues — CNG Sales — CNG Sales revenues are at $293,000 or 73.1 percent
of the $400,000 budget. The revenues through the third quarter are lower than the
same period last year by $15,000 or 5.0 percent. These revenues are expected to
approximate budget at year-end.
• Revenues - Other — Other revenues are at $962,000 or 160.3 percent of the
$600,000 budget. These revenues consist of charges to Sunset Beach Sanitary
District (SBSD) for treatment of flows and other miscellaneous revenues. The
revenues through the third quarter are lower than the same period last year by
$195,000 or 16.8 percent due to the sale of AQMD emission reduction credits in the
prior period for $690,000, offset by an increase in SBSD revenues and a settlement
received from the County of Orange bankruptcy filing in 1994 of $480,000 in the
current period. These revenues are expected to exceed budget at year-end.
Section 1 - Page 5
FY 2015-16 Third Quarter Report
Comparison of Third Quarter Cost per
Million Gallon Results with Budget
Last Five Years
2,200
2,100
2,000 I .- 2027 ZAN 2,0 92.M
1,900 - r, 1,8a
eai
1,907
+.9zs
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1.000
11-12 12-13 13 14 14 15 15 16
3rd Annual 3rd Annual 3rd Annual 3rd Annual 3rd Annual
Qtr 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 6.8 percent
lower than the annual budget. The FY 2015-16 third quarter is 1.2 percent higher when
compared with this year's budget. The variance from previous years is primarily due to
a decrease in flows, which are 2.6 percent lower than the same period last year. Staff
believes that overall operating costs will be below budget at year-end.
The total cost per million gallons at March 31 is $2,068.6 based on flows of 183.7
million gallons per day. This is $23.6 per million gallons, or 1.2 percent, higher than
the budgeted cost per million gallons of $2,045. There is an inverse relationship
between the amount of flows and the cost per unit of collection, treatment, and disposal.
Consequently, the higher cost per million gallons is due to flows of 183.7 million gallons
per day being 8.2 percent lower than the budgeted flow of 200 million gallons per day,
which is partially offset by net expenses being 6.7 percent less than the proportionate
budget through March 31.
More detailed information on operating revenues, costs, and related information is
provided within Section 2.
Section 1 - Page 6
Consolidated Financial Reports
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
2011 2012 2013 2014 2015
Agency SFR SFR SFR SFR SFR Notes
San Francisco $636.00 $667.92 $701.40 $ 744.83 $ 784.44
City of San Diego $608.04 $572.58 $572.58 $ 572.58 $ 572.58
Vallejo Sanitation/Flood Control District $483.12 $495.12 $507.48 $ 520.20 $ 520.20
Central Contra Costa Sanitary District $341.00 $371.00 $405.00 $ 439.00 $ 471.00
City of Los Angeles $358.66 $391.56 $409.20 $ 435.40 $ 464.04 Note 1
Sacramento County $264.00 $288.00 $312.00 $ 348.00 $ 384.00
Dublin San Ramon Services District $345.06 $355.44 $355.44 $ 372.96 $ 382.38
Union Sanitary District $304.33 $319.55 $337.76 $ 357.02 $ 377.00
East Bay MUD $287.98 $305.10 $331.10 $ 358.14 $ 355.18
City of Hayward $317.64 $327.24 $327.24 $ 337.08 $ 347.16
Orange County Sanitation District $267.00 $294.00 $308.00 $ 316.00 $ 322.00
City of Fresno $299.76 $309.00 $309.00 $ 309.00 $ 309.00
Irvine Ranch Water District $202.80 $206.40 $220.80 $ 246.00 $ 288.60 Note 2
Oro Loma Sanitary District $183.00 $189.00 $195.00 $ 200.00 $ 206.00
Los Angeles County $143.00 $149.00 $150.00 $ 151.00 $ 155.00 Note 3
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.
(3)-Data for 2013 and 2014 was revised to remove ad valorem monies that were inadvertently included.
Section 1 - Page 7
FY 2015-16 Third Quarter Report
Benchmark Study
Five-Year Cost per MG
FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15
Agency Sc.Tot. Cost/MG Cost/MG Cost/MG Cost/MG Cost/MG Notes
Central Contra Costa Sanitary District B 5 $3,929.80 $4,203.43 $4,621.84 $5,778.43 $6,280.58
Vallejo Sanitation/Flood Control District B 3 $4,536.00 $5,176.00 $5,435.00 $6,153.()0 $5,590.00
San Francisco B 3 $3,857.80 $4,778.96 $5,006.74 $5,400.28 $5,357.97 Note 1
Union Sanitary District B 3 $3,206.10 $3,267.06 $3,805.40 $3,832.47 $3,910.73
City of San Diego B 5 $3,208.48 $3,242.30 $3,340.35 $3,156.43 $3,591.69
East Bay MUD T 4 $2,000.31 $2,320.02 $2,359.40 $2,559.18 $2,727.97
Dublin San Ramon Services District B 5 $1,964.64 $2,009.57 $2,159.49 $2,506.60 $2,522.00
Sacramento County T 3 $1,591.75 $3,312.50 $2,143.16 $2,375.47 $2,494.40 Note
City of Los Angeles B 5 $1,836.00 $1,935.00 $2,062.00 $2,163.00 $2,269.00
Orange County Sanitation District B 3 $1,816.62 $1,871.47 $1,906.01 $1,935.05 $2,070.97
City of Fresno B 3 $1,263.50 $1,383.60 $1,411.89 $1,552.39 $1,628.91
Los Angeles County T 5 $1,078.00 $1,156.00 $1,008.00 $1,223.72 $1,239.40 Note 3
Legend for Service ProNded and Treatment Leael:
B-Agencyoperates both collection and treatment facilities
T-Agency proodes treatment serNces but not collection
2-Advanced primaryor primarywith some secondary treatment
3-Secondary treatment
4-Advanced secondary or secondarywith some tertiarytreatment
5-Tertarytreatment
Notes:
(1)-Beginning in Fiscal Year 2012-13,dataset represents wastewater flows from finalized publicly available audited documents.
(2)-Miles of sewers number changed in 2012 to include parallel force main pipes perthe 2011 State of the District Report.
(3)-Does not include source control or overhead costs.
Section 1 - Page 8
Consolidated Financial Reports
Capital Outlay Review:
$200,000,000
S150,000,000
S100,000,000
S50,000,000
so
3131116 Actual Projected 2015-16 2015-16 Capital
Capital Outlay Capital Outlay Outlay
$105,962,718 $140,222,500 Cashfiow Budget
$187,825,000
As depicted by the preceding chart, Capital Outlays totaled $106.0 million or 56.4
percent of the capital outlay cash flow budget for FY 2015-16 as of March 31,
2016. 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 Newport Force Main Rehabilitation which has a FY15-16 cash flow budget of $23.9
million but actual costs of only $11.9 million and the Gisler-Redhill Trunk Improvement,
which has a budget of $8.2 million but actual costs of only $277,000. Overall, the
capital outlay costs of the capital improvement program are expected to
approximate $140.2 million, or 74.7 percent of the capital outlay cash flow budget
at year-end.
More detailed information on the capital improvement program is provided within
Section 3.
Capital Assets Schedule and Debt Service Budget Review: Section 4 is the Capital
Assets Schedule and Debt Service Section. This section shows the cost value of the
Sanitation District's capital facilities at March 31, 2016, as well as the debt service costs
resulting from the need to provide funding for the construction of capital facilities.
The majority of principal payments on debt issues are due in August during the first
quarter, and in February during the third quarter of each fiscal year. As of March 31,
2016, 79.0 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.
Section 1 - Page 9
FY 2015-16 Third Quarter Report
Interest costs are expensed ratably throughout the fiscal year. Interest expense is
anticipated to approximate budget at year-end.
Self-Insurance Budget Reviews: Section 5 is the Self-Insurance Section. Through
March 31, the Self-Insurance Fund revenues totaled $1.5 million or 75.6 percent of the
budget, while expenses were $1.8 million or 70.5 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, 2016
$1 a0o
$1,300
$1,200
$1100
$1,000
$900
5600
$700
5500
$500
$400
E300
1200
E1oo
$0
E E —
z —
E
w � �Butlget �Adual
Collection,Treatment, & Disposal Expenses by Major Category
Budget and Actual (in thousands)
March 31, 2016
$70,000
$65,000
$60 000
$55,000
$50,000
$05,000
P0,000
$35,000
$30,a 0
$25,000
$20.000
$10000
$10000
$5,000
$0
y 3 N N E
✓� E P m C �m
�ButlBet �Aclual O
Section 2-Page 1
2015-16 Third Quarter Report
Divisional Contributions to Cost Per Million Gallons
For the Nine Months Ended March 31,2016
2015-16
3/31114 3/31115 Annual 3131116
Actual Actual Budget Actual
Flow In Million Gallons 54,358.30 51,846.53 73,000.00 50,512.69
Flow in Million Gallons per Day 198.39 189.22 200.00 183.68
Executive Management Department
General Management Administration $ 31.88 $ 23.53 $ 40.37 $ 30.72
Board Services 8.69 8.22 6.69 7.44
Public Affairs 7.65 8.60 15.83 13.09
Subtotal 48.22 40.35 62.89 51.25
Human Resources Department
Human Resources 48.85 55.10 64.80 56.43
Risk Management 49.86 48.85 49.02 45.35
Subtotal 98.71 103.95 113.82 101.78
Administrative Services Department
Administrative Services 9.09 9.65 8.37 8.65
Financial Management 39.17 44.50 49.72 47.50
Contracts, Purchasing,&Materials Mgmt. 58.29 62.15 60.09 62.97
Information Technology 127.01 151.12 139.58 148.83
Subtotal 233.56 267.42 257.76 267.95
Facilities Support Services Department
Facilities Support Administration 8.95 10.57 11.26 16.86
Facilities Support 6.83 5.85 - -
Equipment Rebuild 16.53 17.96 - -
Fleet Services 25.19 29.38 28.54 31.16
Collections Engineering 45.23 40.10 38.94 40.00
NPDES Source Inspection 36.86 31.97 32.93 34.45
Odor and Corrosion Control 90.22 100.61 110.91 98.08
Collection Facilities O&M 48.51 57.76 56.10 56.85
Subtotal 278.32 294.20 278.68 277.40
Engineering Department
Engineering Administration 5.99 9.89 5.57 7.17
Planning 49.13 42.94 43.84 50.28
Project Management Office 46.81 51.86 47.85 36.85
Engineering and Construction 120.92 128.20 131.18 141.09
Environmental Compliance 92.99 103.99 85.24 98.08
Subtotal 315.84 336.88 313.68 333.47
Operations&Maintenance Department
Operations&Maintenance Administration 11.43 10.49 12.11 13.11
Plant No. 1 Operations 345.64 384.50 398.93 485.55
Plant No.2 Operations 289.94 294.43 318.46 301.91
Building,Grounds&Mechanical Maintenance 182.84 203.69 - -
Instrumentation&Electrical Maintenance 201.11 209.91 - -
Plant No.1 Maintenance - - 264.27 233.26
Plant No.2 Maintenance - - 145.55 167.78
Environmental Laboratory&Ocean Monitoring 106.71 116.10 110.24 120.18
Subtotal 1,137.67 1,219.12 1,249.56 1,321.79
Total Operating Expenses 2,112.32 2,261.92 2,276.39 2,353.64
Cost Allocation (185.94) (235.29) (231.39) (285.03)
Net Operating Requirements $ 1, 226.38 $ 2,0 66.63 -f 2,0 55.00 $ 2,068.61
Section 2-Page 2
Operating Budget Review
Comparison of Expenses by Department
For the Nine Months Ended March 31,2016
2016-16
3131114 3131/15 Year to Date Budget
Department and Division Actual Actual Budget 3/31/16 Realized
Executive Management Department
General Management Administration $ 1,732,860 $ 1,220,179 $ 2,947,170 $ 1,551,933 52.66%
Board Services 472,493 426,090 488,410 375,805 76.94%
Public Affairs 415,675 445,732 1,155,850 661,151 57.20%
Subtotal 2,621,028 2,092,001 4,591,430 2,588,889 56.39%
Human Resources Department
Human Resources 2,655,630 2,856,736 4,730,090 2,850,633 60.27%
Risk Management 2,710,300 2,532,910 3,578,550 2,290,593 64.01%
Subtotal 5,365,930 5,389,646 8,308,640 5,141,226 61.88%
Administrative Services Department
Administrative Services 494,345 500,062 610,710 436,875 71.54%
Financial Management 2,129,032 2,307,149 3,629,380 2,399.205 66.11%
Contracts, Purchasing,&Materials Mgmt. 3,168,754 3,222,169 4,386,540 3,180,634 72.51%
Information Technology 6,903,862 7,835,083 10,189,160 7,517,576 73.78%
Subtotal 12,695,993 13,864,463 18,815,790 13,534,290 71.93%
Facilities Support Services Department
Facilities Support Administration 486,761 547,868 822,330 851,413 103.54%
Facilities Support 371,438 303,532 - - N/A
Equipment Rebuild 898,753 930,925 - - N/A
Fleet Services 1,369,540 1,523,297 2.083,620 1,573.934 75.54%
Collections Engineering 2,458,572 2,079,232 2,842,880 2,020,418 71.07%
NPDES Source Inspection 2,003,911 1,657,580 2,404,160 1,739,984 72.37%
Odor and Corrosion Control 4,904,150 5,216,353 8,096,320 4,954,267 61.19%
Collection Facilities O&M 2,637,060 2,994,449 4.095,100 2,871.400 70.12%
Subtotal 15,130,185 15,253,236 20,344,410 14,011.416 68.87%
Engineering Department
Engineering Administration 325,849 512,848 406,860 362,398 89.07%
Planning 2,670,700 2,226,241 3,200,230 2,539,623 79.36%
Project Management Office 2,544,325 2,688,734 3,493,120 1,861,190 53.28%
Engineering and Construction 6,573,064 6,646.556 9,576,040 7,127,049 74.43%
Environmental Compliance 5,054,855 5,391,390 6,222,510 4,954,520 79.62%
Subtotal 17,168,793 17,465,769 22,898,760 16,844,780 73.56%
Operations&Maintenance Department
Operations&Maintenance Administration 621,267 543,765 884,100 662,192 74A0%
Plant No.1 Operations 18,788,343 19,934,989 29,121,695 24,526,402 84.22%
Plant No.2 Operations 15,760,824 15,265,251 23,247,850 15,250,445 65.60%
Building,Grounds&Mechanical Maintenance 9,938,616 10,560,783 - - N/A
Instrumentation&Electrical Maintenance 10,932.195 10,883.106 - - N/A
Plant No.1 Maintenance - - 19,291,815 11,782,502 61.08%
Plant No.2 Maintenance - - 10,624,840 8,474,898 79.76%
Environmental Laboratory&Ocean Monitoring 5,800,639 6,019,195 8,055,110 6,071,382 75.37%
Subtotal 61,841.884 63,207.089 91,225,410 66,767,821 73.19%
Total Operating Expenses 114,823,813 117,272,204 166,184,440 118,888,422 71.54%
Cost Allocation (10,108,348) (12,198,701) (16,877,500) (14,397,165) 85.30%
Net Operating Requirements $ 104,715,465 $ 105,073,503 $ 149,306,940 $ 104,491,257 69.98%
Section 2-Page 3
2015-16 Third Quarter Report
Summary of Collection, Treatment, &Disposal Expenses by Major Category
For the Nine Months Ended March 31,2016
Expense Expense Increase Increase Percent
Budget Through Through (Decrease) (Decrease) Budget Remaining
Description 2015-16 3131/16 3131115 $ % Realized Budget
Salary&Wages $ 66,276,100 47,969,719 47,450,189 $ 519,530 1.09% 72.38% $ 18.306,381
Employee Benefits 28,526,300 20,601,768 23,161,716 (2,559,948) -11.05% 72.22% 7,924,532
Administrative Expenses 1,624,570 1,240,525 1,165,141 75,384 6.47% 76.36% 384,045
Printing&Publication 412,020 184,110 202,106 (17,996) -8.90% 44.68% 227,910
Training&Meetings 1,050,500 516.071 475,342 40,729 8.57% 49.13% 534,429
Operating Materials&Supplies 17,191,000 11,977,127 11,488,670 488,457 4.25% 69.67% 5,213,873
Contractual Services 23,968,480 16,694,008 15,933,325 760,683 4.77% 69.65% 7,274,472
Professional Services 3,476,580 2,097,059 1,782,916 314,143 17.62% 60.32% 1,379,521
Research&Monitoring 831,000 521.887 617,725 (95.838) -15.51% 62.80% 309,113
Repairs&Maintenance 12,332,440 9,989,533 8,144,843 1,844,690 22.65% 81.00% 2,342,907
Utilities 7,787,080 5,735,818 5,497,926 237,892 4.33% 73.66% 2,051,262
Other Materials,Supplies,
and Services 2,708,370 1,360,797 1,352,305 8,492 0.63% 50.24% 1,347,573
Net Cost Allocation (16,877,500) (14,397,165) (12,198,701) (2,198,464) 18.02% 85.30% (2,480,335)
Net Operating Requirements 149,306,940 104,491,257 105,073,503 (582,246) -0.55% 69.98% 44,815,683
Gallonage Flow(MG) 73,000.00 50,512.69 51,846.53 (1,333.84) -2.57%
Gallonage Flow(MGD) 200.00 183.68 189.22 (5.54) -2.93%
Gallonage Flow($'a/MG) $2,045.00 $2,068.61 $2,026.63 $41.98 2.07%
Section 2-Page 4
Operating Budget Review
Summary of Revenues
For the Nine Months Ended March 31, 2016
Revenue Percent Revenue Increase Increase
Budget Through Budget Remaining Through (Decrease) (Dec.)
Description 2015-16 3/31/16 Realized Budget 3131/15 $ %
Service Fees $294,182,000 $180,921.031 61.50% $113,260,969 $168,811,060 $ 12,109,971 7.17%
Permit Fees 13,555,000 8,319,237 61.37% 5,235,763 %260,644 (941,407) -10.17%
Inter District Sewer Ilse-SAWPA 2,690,000 2.219,912 82.52% 470,088 1,772,265 447,647 25.26%
Intra District Sewer Use-IRWD 2,550,570 3,325,318 130.38% (774,748) 1,790,660 1,534,658 85.70%
Sludge Disposal-IRWD 8,900,000 7.563,298 84.87% 1,346,702 5,805,375 1,747,923 30.11%
Capital Assessments-IRWD 2,293,000 1,913,680 83.46% 379,320 279,516 1,634,164 584.64%
Capital Facilities Capacity Charges 11,000,000 10.629.417 96.63% 370,583 12,348,274 (1,718.857) -13.92%
Debt Proceeds - 174,868,588 N/A (174,868,588) 388,839,964 (213,971,376) -55.03%
Property Taxes 88,527,000 51.328,807 57.98% 37,198,193 48,384,825 2,943,982 6.08%
Interest Earnings 6,064,000 6,602,933 108.89% (538,933) 5,374,154 1,228,779 22.86%
Wastehauler 790.000 530,914 67.20% 259.086 593,723 (62.809) -10.58%
Grant Revenue - 450,000 N/A (450,000) - 450,000 100.00%
CNG Sales 400.000 292,519 73.13% 107.481 307,972 (15.453) -5.02%
Rents 8 Leases 254,000 192,079 75.62% 61,921 188,448 3,631 1.93%
Other 600.000 961,537 160.26% (361,537) 1,156,266 (194,729) -16.84%
Power Sales 51000 17.703 354.06% (12,703) 11,254 6,449 57.30%
Other Sales 10,000 38,512 385.12% (28,512) 23,727 14,785 62.31%
Total Revenues $431,820,570 $ 450,165485 10425% $ (18,344,915) $644,948,127 5(194782,642) -3020%
Section 2-Page 5
2015-16 Third Quarter Report
Summary of Collection,Treatment, &Disposal Expenses by Line Item
For the Nine Months Ended March 31, 2016
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2016-10 3131116 Expensed Budget =1115 $ %
Salades.Wapes&Benefits
Salaries&Wages $ 66,276,100 $ 47,969,719 72.38% $ 18,306,381 $ 47,450,189 $ 519,5W 1.09%
Employee Benefits
Retirement 16,726,300 12,189,137 72.87% 4,537,163 15,587,735 (3,398,598) -21.81
Group Insurances 9,766,200 6,875,339 70.40% 2,890,861 6,587,651 287,688 4.37%
Tuition&Cedlfica0on Fall 154,500 112,064 72.53% 42,436 117,654 (5,590) 4]5%
Edu,degrees,Carl.&Lic. 303.300 243,756 80,3T% 59.544 224,628 19,128 8,52%
Uniform Rental 47,400 38,548 81.32% 8,852 38,429 119 0.31%
Workers'Compensation 1,478,700 1,109,028 75.00% 369,672 566,251 542,777 95.85%
Unemployment nsurance 9,200 2,424 26.35% 6,776 9,783 (7,359) -75.22%
EMT Supplemental Benefits 40,700 31,472 77.33% 9.228 29,585 1,887 6,38%
Total Benefits 28,526,300 20,601,768 72,22% 7,924,532 23,161,716 (2,559,948) -11.05%
Salal Wages&Benefits 94,802,400 68,571,487 72.33% 26.230,913 70.611,905 (2,01 -2.89%
Matt.Supply.&Services
Administrztlys Expenses
Memberships 597,840 461,636 77.22% 136,204 472,707 (11,071) -2.34%
Office Exp-Supplies 68.600 41,981 61,20% 26.619 36.255 5,726 15.79%
Postage 39,970 22,529 56.36% 17,441 27,281 (4,752) -17.42%
Books&Publications 38,400 19,604 51.05% 18,796 18,979 625 3.29%
Forms 910 231 25.38% 679 1.216 (985) -81.00%
Small Computer Items 734.000 590,491 80.45% 143,509 531,673 58,818 11.06%
Minor Furniture&Fixtures 144,850 104,053 71.84% 40,797 n,030 27,023 35.08%
Subtotal 1,624,570 1,240,525 76.36% 384,045 1,165,141 75,384 6.47%
Printing&Publication
Repro-In-House W9,680 160,912 43.53% 208,768 172,594 (11,682) -6.TT%
Printing-Outside 22,450 6,314 28.12% 16,136 17,547 (11,233) -64.02%
Notices&Ads 19,620 16,884 86.06% 2,736 11.891 4,993 41.99%
Photo Processing 270 0,00% 270 74 (74) -100.00%
Subtotal 412,020 184,110 44,68% 227,910 202,106 (1T,gad) -8.90%
Training&Meetings
Meetings 212,620 101 47.48% 111,675 W,221 10,724 11,89%
Training 837,880 415,126 49.54% 422,754 385,121 30,005 7.79%
Subtotal 1,050,500 516,071 49.13% 534,429 475,342 40,729 8.57%
Operating Mat'Is&Supplies
Chemical Coagulants 6,012,000 4,495,488 74.78% 1,516,512 4,388,820 106,668 2.43%
Odor Control 8,043,200 5,297,203 65.86% 2,745,997 5,305,244 (8,041) -0.15%
Disinfection 154,000 142,9W 92.82% 11,050 235,287 (92,337) -39.24%
Chemicals-Misc&Cogen 547,000 217,914 39,84% 329.086 18.376 199,538 1085.86%
Gasoline,Diesel&Oil 705,970 410,007 58.08% 295,963 395,276 14,731 3.73%
Tools 351,400 312,809 89.02% 38,591 224,764 88,045 39.17%
Safety ecimpinum is 469,350 472,500 100.67% (3,150) 331,865 140,635 42.38%
Solt'.Paints&Jan.Supplies 88,320 63,024 71,36% 25,296 64,821 (1,797) -2.TT%
Lab Chemicals&Supplies 647,160 437,413 67.59% 209,747 425,573 limo 2.78%
Other Operating Supplies 155,800 123,863 79.50% 31,937 98,644 25,219 25.57%
Properly Tex Fees 16,800 3,956 23.55% 12,8d4 3,956 NIA
Subtotal 17,191,000 11,977,127 69.67% 5,213,873 11,488,670 488,457 4.25%
Contractual Services
Solids Removal 17,407,000 13,224,276 75.97% 4,182,724 12,922,210 301 2.34%
Other Waste Disposal 943,220 608,228 64,48% 334.992 757,625 (149,397) -19.73%
Groundskeeping 174,000 103,959 59.75% 70,041 115,173 (11,214) -9.74%
Janitorial 478,340 333,643 69.75% 144,697 362,485 (28,842) -7.96%
Outside Lab Services 280,500 114,304 40.75% 166,196 134,232 (19,928) -14.85%
Oxygen Plant Oper 274,200 295,124 107.63% (20.924) 390,560 (95,436) -24,44%
County Service Fee 706,950 38,869 5.50% 6681081 54,270 (15,401) -28.38%
Temporary Seri t62,380 308,375 66.69% 154,005 230,734 77,641 33.65%
Security Services 582,000 305,200 52.44% 276.800 284,2(id 20,936 7.36%
Other 2,659.890 1,362,030 51,21% 1,297.860 681,772 680,258 99.78%
Subtotal 23,968,480 16,694,008 69,65% 7,274,472 15,933,325 760,683 4.77%
(Continued)
Section 2-Page 6
Operating Budget Review
Summary of Expenses by Line Item
For the Nine Months Ended March 31,2016
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2015.16 W31116 Expensed Budget 3131/15 $ %
Continued:
Professional Services
Legal 948,200 1,012,062 106.74% (63,862) 779,271 232,791 29.87%
Audit B Accounting 211,250 Saws 47.29% 111,342 127,427 (27,519) -21.60%
Engineering 720.000 184,279 25.59% 535721 77,339 106.940 138.27%
El Scientific Consulting 105,000 47,531 45.27% 57,469 130,085 (82,554) -61,16%
SofNvare Fight Consulting W8,000 187,429 60.85% 120,571 216,885 (29,456) -13.58%
Advocacy Efforts 247,000 129,475 52.42% 117,525 130,628 (1,153) -0.88%
Industrial Hygiene Services 100,000 115,480 115.48% (15.480) 51,209 64.271 125.51%
Labor Negotiation Services 60,000 - 0.00% 0,000 30,303 (30,303) -100.00%
Other ]/1,130 320,895 41.29% 45Q235 239,769 81,126 33.84%
Subtotal 3,476,580 2,091,059 60.32% 1,379.521 1,782,916 314,143 17.62%
Research&Monitoring
Environmental Monitoring 345,000 209,980 60.86% 135,020 237,606 (27,626) -11.63%
Air Quality Monitoring 85,000 11,907 14.01% 73,093 80,119 (68,212) -85.14%
Research 4011000 3001000 74.81% 101,000 3001000 0.00%
Subtotal 831,000 521,887 62.80% 309,113 617,725 (95,838) -15.51%
Repairs&Maintenance
Materials&Services 10,334.180 8,295.480 80.27% 2,038.700 6,557,654 1.737,826 26.50%
Svc.Mlc Agreements 1,998,260 1,694,053 8476% 304,207 11587,189 106,864 6.73%
Subtotal 12,332,440 9,989,533 81.00% 2,342,907 8,144,843 1,844,690 22.65%
utilities
Telephone 3851000 26S994 69.09% 119,006 232,454 33,540 14.43%
Diesel For Generators 24,160 6,986 28.92% 17,174 14,435 (7,449) -51.60%
Natural Gas 500,000 369,461 69.89% 150,533 469,668 (120,201) -25.59%
Power 6,319,500 4,656,516 73.68% 1,662,984 4,382,833 273.683 6.24%
Water 558,420 456,855 81.81% 101,565 398,536 58,319 14.63%
Subtotal 7,787,080 5,735,818 ]3.66% 2,051,262 5,497,926 237,892 4.33%
Other Operating Supplies
Outside Equip Rental 105,970 12,837 12.11% 93,133 105,771 (92,934) -87.86%
Insurance Premiums 32,000 31,386 98.08% 614 31,884 (498) -1.56%
Prop&Gen Liab Insurance 496.000 371,97 75.00% 124,003 375,003 (3,006) -0.80%
Freight 69.070 60,072 86.97% 81998 46,412 13.660 29.43%
Misc.Operating Expense 289,820 159,867 55.16% 129,953 122,520 37,347 30.48%
Regulatory Operating Fees 708,000 693,160 97.90% 14,840 626,344 66,816 10.67%
Subtotal 1,700,860 1,329.319 ]8.16% 371,541 1,307,934 21,385 1."%
General Mgr Contingency
&Reappropriations 91 0.00% 904,200 N/A
Other Non-Oper Expense
More 103,310 31,478 30.47% 71,832 44,371 (12,893) -29.06%
Subtotal 103,310 31,478 30.47% 71,02 44,371 (12,893) -29.06%
Total Materials,
Supplies&Services 71,382,040 50,316,935 70.49% 21,065,105 46,660,299 3,656,636 Taff,
Total Expenditures 166,184,440 118,88 ,422 71.54% 47,296,018 11],2]2,204 1,616,218 1.38%
Cost Allocation (16,871,500) (14,397,165) 85.30% (2,48g335) (12,198,701) (2,198,464) 18.02%
Net Operating Requirements $ 149.W6,940 $ 104,491,257 69,98% $ 44,815.683 $ 105,073,503 $ (582R46) -0.55%
Section 2-Page 7
2015-16 Third Quarter Report
Summary of Collection, Treatment,8 Disposal Expenses by Process
For the Nine Months Ended March 31,2016
Increase Increase
Actual Actual (Decrease) (Decrease)
3/31/16 3/31/15 $ %
Process:
Preliminary Treatment $ 6,674,036 $ 6,316,429 $ 357,607 5.66%
Primary Treatment 9,205,661 9,727,065 (521,404) -5.36%
Secondary Treatment 5,725,918 5,976,942 (251,024) -4.20%
Cryogenic Plant(Plant 2) 544,922 774,594 (229,672) -29.65%
Ef0uent Disposal 742,103 591,287 150,816 25.51%
Solids Handling 34,610,347 35,606,759 (996,412) -2.80%
Cogeneration 12,203,558 10,026,823 2,176,735 21.71%
Utilities 2,050,225 2,172,279 (122,054) -5.62%
Electrical Distribution 1,608,264 1,489,979 118,285 7.94%
Miscellaneous Buildings 6,606,730 5,703,947 902,783 15.83%
External Location 72,967 51,936 21,030 40.49%
Nerlssa Vessel 175,521 271,203 (95,682) -35.28%
North County Yard 39,879 1,983 37,895 1910.62%
Laboratory 9,114,751 9,392,544 (277,793) -2.96%
Collections 15,116,374 16,969,731 (1,853,357) -10.92%
Net Operating Requirements $ 104,491,257 $ 105,073,503 $ (582,246) -0.55%
Section 2-Page 8
Operating Budget Review
Staffing Trends
Full Time Equivalents
March 31, 2016
700
650 634 626 624 624 624
48 36
boa
550
500
450
6/30112 6/30113 6/30/14 6130115 3/31/16
8Actua1 8Va.a t
At March 31, 2016, the total head count was 584 employees, or a full time equivalency of 571.
Section 2-Page 9
2015-16 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, 2016
@Collections Facllldes: 19 3%
@Headreaks: 3,6%
ePlimary TreaEnent 3.0%
USecandary Treatment'. 1.9%
@Solids HandlingBOlgest0n 486%
00cean Ou9all Systems: 8 2%
GUglity Systems: 5.6%
@Process Related Special Prcecis: 0 7%
@Information Management Systems: 1.9%
@Strategic 8 Master Planning: 0.2%
/ @Water Management Projects: 1.3%
@Supp it FadlNea: 6.3%
am.. 0.3%
@Prior Veer Treatment Projects: 0.0%
@Capital Equipment Purchases: 1.1%
Total Capital Improvement Outlays-$105,962,718
l Replacement/Rehabilitation: 47%
Improved Treatment: 36%
j ❑Additional Capacity: 12%
■Support: 5%
Total Capital Improvement Outlays-$105,962,718
Section 3- Page 1
FY 2015-16 Third Quarter Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2016
2015-16 2015-16 2015-16
Cashflow, Actual at Projected
Budget 3/3112 01 6 Outlay
Collection System Improvement Projects
Collections Facilities
Santa Ana Trunk Sewer Rehab. $ 1,490,918 $ 1,645,361 $ 1,677,600
SARI Realignment 538,848 93,422 137,500
SARI Rock Stabilizers Removal 98,323 219,116 259,800
Newhope-Placentia Trunk Grade Separation Repl. 653,226 400,493 569,200
Newhope-Placentia Trunk Replacement 6,339,297 2,483,461 4,632,800
Lakeview Grade Separation Project 15,836 - 27,600
Tustin Rose OCTA Grade Separation Project 109,420 176,320 178,300
Seal Beach Pumping Station Rehabilitation 1,278,051 716,900 1,667,900
Rehabilitation of Western Regional Sewers 642,771 427,595 1,458,600
Newport Force Main Rehabilitation 23,453,907 11,629,355 12,338,300
Dover Drive Trunk Sewer Relief 716,918 1,128,070 1,128,100
District 6 Trunk Sewer Relief 4,049,977 223,935 255,700
Southwest Costa Mesa Trunk 479,304 165,327 301,100
Gisler-Redhill Trunk Improvements, Reach B 8,202,769 276,759 1,952,500
Master Facilities Engineering Projects-Collections 754,631 475,569 528,100
Master Planning Studies-Collections - 85,746 85,800
Bay Bridge Pump Station and Force Mains Rehab Study 469,725 135,080 173,700
Additional Charges to CIP Closed at 6/30/15 (73,707) (73,800)
Subtotal -Collections Facilities 49,293,921 20,208,802 27,298,800
Revenue Area 14
Newport Force Main Rehabilitation (1.88%) 449,382 259,170 272,800
Subtotal -Revenue Area 14 449,382 259,170 272,800
Total Collection System Improvement Projects 49,743,303 20,467,972 27,571,600
(Confined)
Section 3-Page 2
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2016
2015-16 2015-16 2015-16
Cashflow Actual at Projected
Budget 3/3112 01 6 Outlay
Treatment&Disposal Projects
Headworks
Headworks Rehabilitation and Expansion at Plant 1 5,907,164 1,399,941 2,092,200
Truck Line Odor Control Improvements P1 5,401,072 2,375,457 4,223,600
Subtotal-Headworks 11,308,236 3,775,398 6,315,800
Primary Treatment
Plant 1 Primary Treatment Upgrades 4,535,914 2,513,224 3,192,400
Plant 2 Primary Treatment System Rehabilitation 257,678 663,498 834,600
Primary Treatment Area Rehabilitation Study 128,777
Subtotal - Primary Treatment 4,922,369 3,176,722 4,027,000
Secondary Treatment
Activated Sludge Aeration Basin Deck Repair at P2 174,861 42,869 64,700
Oxygen Plant Demolition at Plant No. 2 2,624,473 1,930,791 2,221,300
Subtotal-Secondary Treatment 2,799,334 1,973,660 2,286,000
Solids Handling& Digestion
Digester Rehabilitation at Plant 1 5,242,131 3,421,834 4,248,900
Sludge Dewatedng and Odor Control at Plant 1 50,905,349 36,897,808 40,756,000
Digester Ferric Chloride System Rehabilitation 54,634 1,969 2,000
Solids Thickening and Processing Upgrades 4,644,432 4,261,571 5,439,100
Sludge Dewatering and Odor Control at Plant 2 6,440,708 6,966,451 11,832,100
Subtotal-Solids Handling&Digestion 67,287,254 51,549,633 62,278,100
Ocean Outfall Systems
Final Effluent Sampler and Building Area Upgrades 8,399,791 4,952,498 6,225,200
Ocean Outfall System Rehabilitation 3,546,419 1,600,985 3,479,200
Subtotal-Ocean Outfall Systems 11,946,210 6,553,483 9,704,400
Utility Systems
Cengen Cooling Water System Replacement 50,604 66,815 89,300
Cengen Emissions Control Project 7,209,612 4,358,449 5,473,500
Natural Gas Pipelines Repl at Plant No. 1 and 2 39,509 - 1,100
Plant Water System Rehabilitation at Plant No. 1 1,112,536 58,017 62,800
Plant Water System Rehabilitation at Plant No. 2 870,583 84,353 84,400
Boiler System Rehab&Scrubbers H & I Demolition at P2 333,046 164,588 220,100
Consolidated Demolition&Utility Improvements at P2 1,980,801 1,056,651 1,449,000
Plant Air System Master Plan 120,681 96,485 137,700
Subtotal-Utility Systems 11,717,372 5,885,358 7,517,900
(Confined)
Section 3-Page 3
FY 2015-16 Third Quarter Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2016
2015-16 2015-16 2015-16
Cashflow Actual at Projected
Budget 3/3112 01 6 Outlay
Process Related Special Projects
Safety Improvements at Plants Nos. 1 and 2 51,536 19,902 202,200
Corrosion Management 1,431,191 626,662 824,800
Odor Control Master Plan 403,127 128,427 301,600
Subtotal -Process Related Special Projects 1,885,854 774,991 1,328,600
Information Management Systems
Programmable Control Panel Upgrades 1,635,577 718,477 1,401,200
SCADA System and Network Upgrades 398,034 253,774 1,085,900
Strategic Information Architecture (SIA) 491,921 390,125 440,200
Internet/Intranet Development 147,884 - 25,000
Geographic Information System 646,806 250,164 280,200
Information Technology Equipment Upgrade 439,179 5,914 56,000
EAM Software and Process Implementation 995,396 28,803 38,900
PDS2D Software Replacement 140,308 21,963 42,000
Software and Computer Equipment Repl. Project 849,874 364,860 439,900
Land Records Mgmt System Project 98,849 - -
Communication Radio System Replacement 119,532 250,000
Subtotal -Information Management Systems 5,963,360 2,034,080 4,059,300
Strategic& Master Planning
Master Planning Studies 908,533 182,135 791,800
Stormwater Master Plan 131,110
Subtotal -Strategic&Master Planning 1,039,643 182,135 791,800
Water Management Projects
Effluent Reuse Study 1,206,269 1,388,497 1,657,800
Subtotal-Water Management Projects 1,206,269 1,388,497 1,657,800
Support Facilities
Master Facilities Engineering Projects- Plant 5,007,745 2,081,739 3,442,700
Master Small Capital Replacement/Rehabilitation 2,800,792 47,502 47,600
Title 24 Access Compliance&Building Rehab Project 5,196,624 3,155,758 3,905,300
South Perimeter Security and Storm Water Impr.at Pl 675,161 192,536 192,600
Headquarters Complex, Site&Security&Entrance Realign. - 132,708 252,500
Site and Security Improvements at Plant No.2 - - 900
Administrative Facilities Implementation Planning 5,083 65,470 65,500
Ongoing Small Capital Replacement/Rehabilitation 986,303 1,030,614 1,256,700
Subtotal-Support Facilities 14,671,708 6,706,327 9,163,800
(Confined)
Section 3-Page 4
CIP Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Nine Months Ended March 31, 2016
2015-16 2015-16 2015-16
Cashflow Actual at Projected
Budget 3/31/2016 Outlay
Others
Future Research Line Item 102,160 360,087 462,500
Capital Improvement Program Mgmt. Services 183,507 (6,000) (6,000)
Subtotal -Others 285,667 354,087 456,500
Additional Charges to CIP Completed at 6130115 14,971 15,000
Total Treatment and Disposal Projects 135,033,276 84,369,342 109,602,000
Capital Equipment Purchases 3,048,900 1,125,404 3,048,900
Total Collection, Treatment and Disposal Projects
and Capital Equipment Purchases $187,825,479 $105,962,718 $140,222,500
Section 3 - Page 5
FY 2015-16 Third Quarter Report
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2016
Current Total
Approved June 30,2015 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2016 Budget
Collection System Improvement Projects
Collections Facilities
Santa Ana Trunk Sewer Rehab. 7,676,000 5,016,145 1,677,600 6,693,745 982,255
Raiff and Bristol Street Sewer Extension 5,319,000 259,075 - 259,075 5,059,925
SARI Realignment 11,404,000 5,485,418 137,500 5,622,918 5,781,082
SARI Rock Stabilizers Removal 3,092,000 44,834 259,800 304,634 2,787,366
Taft Branch Improvements 1,928,000 12,083 - 12,083 1,915,917
Newhope-Placentia Trunk Grace Separation Repl. 5,966,000 3,311,872 569,200 3,881,072 2,084,928
Newhope-Placentia Trunk Replacement 104,890,000 2,210,775 4,632,800 6,843,575 98,046p25
Yoffie Linda Pumping Station Abandonment 4,158,000 - - - 4,158,000
Lakeview Grace Separation Project 330,000 68,892 27,600 96,492 233,508
Tustin Rose OCTA Grotle Separmon Project 586,000 107,087 178,300 285,387 300,613
Beach Trunk/Knolt Interceptor Sewer Relief 118,678,000 - - - 118,678,000
Seal Beach Pumping Station Rehabilitation 62,041,000 225,706 1,667,900 1,893,606 60,147,394
Rehabilitation of Western Regional Sewers 112,222,000 157,056 1,458,600 1,615,656 110,606,344
Newport Force Main Rehabilitation 62,796,800 41,928,209 12,338,300 54,266,509 8,530,291
Dover Drive Trunk Sewer Relief 14,327,000 12,906,754 1,128,100 14,034,854 292,146
Crystal Cove Pumping Station Upgrade and Rehab 10,514,000 - - - 10,514,000
Bay Bridge Pumping Station Rehabilitation 51,010,000 - - - 51,010,000
District 6 Trunk Sewer Relief 7,795,000 1,061,211 255,700 1,316,911 6,478,089
Southwest Costa Mesa Trunk 14,993,000 1,548,343 301,100 1,849,443 13,143,557
Gisler-Redhill Trunk Improvements,Reach B 28,143,000 4,101,645 1,952,500 6,054,145 22,088,855
Browning Subtrunk Sewer Relief 16,952,000 - - - 16,952,000
MacArthur Pump Station Rehabilitation 8,762,000 - - - 8,762,000
Main Street Pump Station Rehabilitation 37,892,000 - - - 37,892,000
Edinger/Bolsa Chice Trunk Improvements 5,159,000 - - - 5,159,000
Edinger Pumping Station Upgrade and Rehabilitation 8,880,000 - - - 8,880,000
Slater Avenue Pump Station Rehabilitation 9,729,000 - - - 9,729,000
Master Facilities Engineering Projects-Collections 12,192,006 886,245 528,100 1,414,345 10,777,661
Master Planning Studies-Collections - - 85,800 85,800 (85,800)
Bay Bridge Pump Station and Force Mains Rehab Study 725,000 160,334 173,700 334,034 390,966
Additional Charges to CIP Closed at 6130115 (73,800) (73,800) 73,800
Subtotal-Collections Facilities 728,159,806 79,491,684 27,298,800 106,790,484 621,369,322
Revenue Area 14:
Newport Force Main Rehabilitation(1.88%) 1,203,200 803,353 272,800 1,076,153 127,047
Subtotal-Revenue Area 14 1,203,200 803,353 272,800 1,076,153 127,047
Total Collection System Improvement Projects 729,363,006 80,295,037 27,571,600 107,866,637 621,496,369
(Continued)
Section 3-Page 6
CIP Budget Review
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2016
Current Total
Approved June 30,2015 year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2016 Budget
Treatment&Disposal Projects
Headworks
Headworks Rehabilitation and Expansion at Plant 1 235,273,000 359,971 2,092,200 2,452,171 232,820,829
Truck Line Odor Control Improvements P1 11,170,000 1,626,415 4,223,600 5,850,015 5,319,985
Subtotal-Headworks 246,443,000 1,986,386 6,315,800 8,302,186 238,140,814
Primary Treatment
Primary Scrubber Rehabilitation at Plant l 94,228,000 - - - 94,228,000
Plant 1 Primary Treatment Upgrades 10,317,000 5,344,930 3,192,400 8,537,330 1,779,670
Primary Cladfeis Rapt&Impr at Plant No.1 122,649,044 - - - 122,649,044
Plant 2 Primary Treatment System Rehabilitation 156,029,000 132,951 834,600 967,551 155,061,449
Primary Treatment Area Rehabilitation Study 1,000,000 157,161 157,161 842,839
Subtotal-Primary Treatment 384,223,044 5,635,042 4,027,000 9,662,042 374,561,002
Secondary Treatment
Activated Sludge Aeration Basin Deck Repair at P2 6,679,009 - 64,700 64,700 6,614,309
Oxygen Plant Demolition at Plant No.2 4,051,000 623,942 2,221,300 2,845,242 1,205,758
Subtotal-Secondary Treatment 10,730.009 623,942 2,286,000 2,909,942 7,820,067
Solids Handling It Digestion
Digester Rehabilitation at Plant 1 64,902,000 53,301,350 4,248,900 57,550,250 7,351,750
Sludge Dewatering and Odor Control at Plant 1 171,978,000 107,446,409 40,756,000 148,202,409 23,775,591
Digester Ferric Chloride System Rehabilitation 4,449,000 4,409,613 2,000 4,411.613 37,387
Solids Thickening and Processing Upgrades 51,150,000 41,080,729 5,439,100 46,519,829 4,630,171
Plant No.2 Digester Facilities Rehabilitabon 47,600,000 152,343 - 152,343 47,447,657
Sludge Dewatering and Odor Control at Plant 86,500,000 15,751,351 11,832,100 27,583,451 58,916,549
Subtotal-Solids Handling Digestion 426,579,000 222,141,795 62,278,100 284,419,895 142,159,105
Ocean Oudall Systems
Final Effluent Sampler and Building Area Upgrades 15,973,000 3,829,324 6,225,200 10,054,524 5,918,476
Ocean Outlet System Rehabilitation 76,000,000 505,351 3,479,200 3,984,551 72,015,449
Subtotal-Ocean Outfall Systems 91,973,000 4,334,675 9,704,400 14,039,075 77,933,925
Utility Systems
Cengen Cooling Water System Replacement 11,47],000 11,304,166 89,300 11,393,466 83,534
Cengen Emissions Control Project 24,950,000 17,184,906 5,473,500 22,658,406 2,291,594
UPS System Upgrades 7,891,000 - - - 7,891,000
Digester Gas Facilities Rehabilitation 85,870,000 - - - 85,870,000
Natural Gas Pipelines Rapt at Plant No.1 and 2 1,310,017 - 1,100 1,100 1,308,917
Electrical Power Distribution System Improvements 35,081,000 - - - 35,081,000
Plant Water System Rehabilitation at Plant No.1 8,000,000 6,054,513 62,800 6,117,313 1,882,687
(Continued)
Section 3-Page 7
FY 2015-16 Third Quarter Report
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31,2016
Current Total
Approved June 30,2015 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2016 Budget
Utility Systems(continued)
Central Generation Rehab at Plant No. 1 35,646,979 - - - 35.646,979
Plant Water System Rehabilitation at Plant No.2 5,070,000 3,621,641 84,400 3,706,041 1,363,959
Boiler System Rehab&Scrubbers H&I Demolition at P2 3,095,000 2,593,983 220,100 2,814,083 280,917
Consolidated Demolition&Utility Improvements at P2 43,984,000 1,184,290 1,449,000 2,633,290 41,350,710
Central Generation Rehab at Plant No.2 41,909,015 - - - 41,909,015
Plant Air System Master Plan 340,000 137,700 137,700 202,300
Subtotal-Utility Systems 304,624,011 41,943,499 7,517,900 49,461,399 255,162,612
Process Related Special Projects
Safety Improvements at Plants Nos.1 and 2 1,708,016 - 202,200 202,200 1,505,816
Corrosion Management 24,518,000 10,333,968 824,800 11,158,768 13,359,232
Odor Control Master Plan 1,900,000 933,582 301,600 1.235,182 664,818
Subtotal-Process Related Special Projects 28,126.016 11,267,550 1,328,600 12,596,150 15,529,866
Information Management Systems
Process SCADA Replacement 24,680,000 - - - 24,680,000
Programmable Control Panel Upgrades 3,17 ,000 706,439 1,401,200 2,107,639 1,069,361
SCADA System and Netwodr Upgrades 27,839,000 14,464 1,085,900 1,100,364 26,738,636
Strategic Information Architecture(SIA) 2,800,000 1,633,349 440,200 2,073,549 726,451
Inlemebinimnet Development 650,000 277,072 25,000 302,072 347,928
Geographic Infovnabon System 4,460,000 1,660,579 280,200 1,940,779 2,519,221
Information Technology Equipment Upgrade 4,148,000 3,205,226 56,000 3,261,226 886,774
EAM Software and Process Implementation 7,500,000 4,671,294 38,900 4,710,194 2,789,806
PDS21D Software Replacement 525,000 320,388 42,000 362,388 162,612
Software and Computer Equipment Repl.Project 6,576,000 1,790,758 439,900 2,230,658 4,345,342
Land Records Mgml System Project 600,000 373,951 - 373,951 226,049
Communication Radio System Replacement 750,000 355,645 250,000 605,645 144,355
Subtotal-Information Management Systems 83,705,000 15,009,165 4,059,300 19,068,465 64,636,535
Strategic&Master Planning
Master Planning Studies 11,803,111 - 791,800 791,800 11,011,311
Climate Change Impact Study 400,000 - - - 400,000
Stormwater Master Plan 700,000 700,000
Subtotal-Strategic&Master Planning 12,903,111 791,800 791,800 12,111,311
Water Management Projects
Effluent Reuse Study 3.250,000 521,193 1,657.800 2,178,993 1,071,007
Subtotal-Water Management Projects 3.250,000 521,193 1,657.800 2,1]8,993 1,071,007
(Continued)
Section 3-Page 8
CIP Budget Review
Summary of Capital Improvement Construction Requirements- Project Life
For the Nine Months Ended March 31, 2016
Current Total
Approved June 30,2015 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30,2016 Budget
Support Facilities
Master Facilities Engineering Projects-Plant 43,325,807 21,111,389 3,442,700 24,554,089 18,771,718
Master Small Capital Replacement/Rehabilitation 15,622,000 - 47,600 47,600 15,574,400
Title 24 Access Compliance&Building Rehab Project 17,161,000 7,267,147 3,905,300 11,172,447 5,988,553
South Perimeter Security and Storm Water Irox.at P1 5,277,000 107,327 192,600 299,927 4,977,073
Headquarters Complex,Site&Security&Entrance Realign. 168,000,000 - 252,500 252,500 167,747,500
Site and Sewnty Improvements at Plant No.2 252,000 227,170 900 228,070 23,930
Administrative Facilities Implementation Planning 800,000 716,399 65,500 781,899 18,101
Ongoing Small Capital Replacement/Rehabilitation 21,672,000 19,420,090 1,256,700 20,676,790 995,210
Subtotal-Support Facilities 272,109,807 48.849,522 9,163,800 58,013,322 214,096,485
Others
Future Research Line Item 10,440,032 1,264,527 462,500 1,727,027 8,713,005
Capital Improvement Program Mgml.Services 300,000 10,000 (6,000) 41000 296,000
Subtotal-Others 10,740,032 1,274,527 456,500 1,731.027 9,009,005
Additional Charges to CIP Completed at 6130/15 15,000 15.000 (15,000)
Total Treatment and Disposal Projects 1,875,406,030 353.587,296 109,602,000 463,189,296 1,412,216,734
Capital Equipment Purchases 13,328,984 5,178,339 3,048,900 8,227.239 5,101,745
Total Collection,Treatment and Disposal Projects
and Capital Equipment Purchases $2,618,098,020 $439,060,672 $140,222,500 $579,283,172 $2,038,814,848
Section 3-Page 9
FY 2015-16 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 31,2016
Capital Facilities Budget Review
Balance Year-to-Date Balance
07/01/15 Additions 3131116
CONSTRUCTION IN PROGRESS:
Treatment Plant $ 310,917,052 $ 85,494,746 $ 396,411,798
Collection System 81,292,173 20,467,972 101,760,145
Subtotal 392,209,225 105,962,718 498,171,943
PROPERTY, PLANT&EQUIPMENT(at cost):
Land and Property Rights 15,959,559 - 15,959,559
Collection Lines and Pump Stations 758,158,102 - 758,158,102
Treatment Facilities 2,255,777,614 - 2,255,777,614
Effluent disposal facilities 97,014,820 - 97,014,820
Solids disposal facilities 3,463,236 - 3,463,236
General and administrative facilities 227,945,470 - 227,945,470
Excess purchase price over book value on acquired assets 19,979,000 19,979,000
Subtotal 3,37&297,801 3,378,297,801
Total Property,Plant&Equipment&CIP $ 3,770.507,026 $ 105.962,718 $ 3,876469,744
Debt Service Budget Review
2015-16 Year-to-Date Remaining
Budget Payments %of Budget Budget
Principal Payments by Debt Issue:
2007A COP 255,000 255,000 100.00% -
2007B COP 6,775,000 6,775,000 100.00% -
2008BCOP 8,500,000 8,500,000 100.00% -
2009ACOP 4,050,000 4,050,000 100.00% -
2010A BABs - - N/A -
2010C BABs - - N/A -
2011ACOP 9,825,000 9,825,000 100.00% -
2012ACOP - - N/A -
2012B COP - - N/A -
2014ACOP - - N/A -
2014BCANs 7.827,411 - 0.00% 7.827,411
2015A COP - - N/A -
2016A COP N/A
Subtotal Principal Payments 37,232,411 29,405,000 78.98% 7,827,411
Interest Expense by Debt Issue:
2007A COP 4,114,227 3,087,178 75.04% 1,027,049
2007B COP 12,826,634 474,188 3.70% 12,352,446
2008E COP 389,825 219,225 56.24% 170,600
2009A COP 8,825,700 5,245,800 59.44% 3,579,900
2010A BABs 2,897,639 2,495,788 86.13% 401,851
2010C BABs 6,523,780 5,619,133 86.13% 904,647
2011ACOP 5,398,725 3.905,825 72.35% 1,492,900
2012A COP 3,735,900 2,802,000 75.00% 933,900
2012E COP 3,187,400 2,390,500 75.00% 796,900
2014A COP - 3,190,900 N/A (3,190,900)
2014B CANS 464,523 3,622,800 779.90% (3,158,277)
2015A COP 6,180,693 4,784,983 77.42% 1,395,710
2016A COP 657,800 N/A (657,800)
Subtotal Interest Expense 54,545,046 38,496,120 70.58% 15,311,016
Total Debt Service $ 91,777,457 $ 67,901,120 73.98% $ 23,138,427
Section 4- Page 1
2015-16 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 31,2016
Percent
Actual of Budget Remaining Actual
2015-16 Through Through 2015-16 Through Increase
Budget 3/31/16 3131116 Budget 3/31/15 (Decrease)
Revenues:
In-Lieu Premiums $ 496,000 $ 371,997 75.00% $ 124,003 $ 375,003 $ (3,006)
Miscellaneous Other Revenue - 16,369 N/A - 274 16,095
Service Department Allocations 20,000 4,122 20.61% 15,878 4,122 -
Total Revenues 516,000 392,488 76.06% 139,881 379,399 13,089
Expenses:
Benefits/Claims 75,000 16,133 21.51% 58,867 23,567 (7,434)
Contractual Services 200 - 0.00% 200 - -
Legal Services 50.000 105,453 210.91% (55,453) 39,856 65,597
Professional Services 2.500 0.00% 2,500
Subtotal 127,700 121,586 95.21% 6,114 63,423 58,163
Policy Premium Expense 1,530,000 870,393 56.89% 659,607 826,404 43,989
Total Expenses 1,657,700 991,979 59.84% 665,721 889,827 102,152
Excess Revenue (Expense) (1,141,700) (599,491) $ (525,840) (510,428) (89,063)
Beginning Reserves 56,141,700 56,125,511 56,802,224 (676,713)
Ending Reserves $55, 000,000 $ 55, 226 020 $ 56, 991,796 $ (765,776)
Section 5-Page 1
FY 2015-16 Third Quarter Report
Workers' Compensation Fund Budget Review
For the Nine Months Ended March 31,2016
Percent
Actual of Budget Remaining Actual
2015-16 Through Through 2015-16 Through Increase
Budget 3/31/16 3/31/16 Budget 3131115 (Decrease)
Revenues:
In-Lieu Premiums $ 1,478,700 $ 1,109,025 75.00% $ 369.675 $ 566,250 $ 542,775
Miscellaneous Other Revenue 5,000 10,280 205.60% (5,280) 9,117 1,163
Service Department Allocations - - N/A - - -
Total Revenues 1,483,700 1,119,305 75.44% 364,395 575,367 543,938
Expenses:
Benefits/Claims 525,000 506,851 96.54% 18,149 505,866 985
Contractual Services - - N/A - - -
Legal Services 130,000 151,028 116.18% (21,028) 98,521 52,507
Professional Services 75,000 46,403 61.87% 28,597 50,074 (3,671)
Subtotal 730,000 704,282 96.48% 25,718 654,461 49,821
Policy Premium Expense 225,000 145,754 64.78% 79,246 166,895 (21,141)
Total Expenses 955,000 850,036 89,01% 104,964 821,356 28,680
Excess Revenue(Expense) 528,700 269,269 $ 259,431 (245,989) 515,258
Beginning Reserves 1,471,300 1,523,264 1,771,820 (248,556)
Ending Reserves $ 2A00,000 _L 1,792.533 $ 1,525,831 $ 266,702
Section 5-Page 2
a
C�p
April 30, 2016
STAFF REPORT
Quarterly Treasurers Report
For the Three Months Ended March 31, 2016
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, 2016. The Liquid Operating
Monies portfolio, with an average maturity of 47 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, 2016.
ODSD ♦ P.O.Box8127 ♦ Fountain Valley,LA 92728-8127 • (714)%2-2411
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2016
Page 2 of 3
Portfolio Performance Summary
Quarter Ended March 31,2016
Liquid Operating Monies %) Long-Tenn Operating Monies %
Total Rate Total Rate of
of Retum Senchmarldl Return BenchmarlM
3 Months 0.17 0.07 1.54 1.56
6 Months 0.22 0.11 1.21 1.00
9 Months 0.28 0.12 1.74 1.68
12 Months 0.33 0.12 1.58 1.68
Since inception 30 Nov 2014 0.30 0.10 1.63 1.74
Market Value 63.8M 319AM
Average Quality "AAA"f'Aal" "AAYTAal"
Cument Yield(%) 0.8 1.5
Estimated Yield to Maturity(%) 0.5 1.0
Quarterly Deposits(Wilhdrawals) (68.3)M $0.0m
Estimated Annual Income $0.4M $4.5M
(1) Benchmarks:
• Liquid Operating Portfolio: 3-Month Treasury Bill Index
• Long-Teml Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index
Portfolio Market Values
Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the
attached bar chart.
Liquid Long-Term
Quarter Operating Operating
Ending Monies($M) Monies($M)
30 Jun.15 61.8 404.9
30 Sep.15 43.9 262.6
31 Dec.15 132.0 314.8
31 Mar.16 63.8 319.6
District's Investment Account Balances as of March 31,2016
Book Balances Estimated
Investment Accounts March 31,2016 Yield(%)
Slate of Calif.LAIF $ 52,379,886 0.40
Union Bank Checking Account 151,794 0.00
Union Bank Overnight Sweep Account 656,019 0.01
Union Bank W/C Checking 72,176 0.00
Chandler-Short-term Portfolio 63,681,505 0.79
Chandler-Long-term Portfolio 320,910,418 1.52
Petty Cash 3,000 N/A
BNY Mellon OCIP Reserve 3,603,416 0.25
TOTAL 2441 45R 214 1.26
Debt Service Reserves w/Trustees 2a 97f1.625 2.02
Quarterly Treasurer's Report
For the Three Months Ended March 31, 2016
Page 3 of 3
District's Cost of Funds on Debt Issues as of March 31, 2016
Annual
Costof ands Outstanding Interest
Issue Description COP Balance Raw(%)
2007A Fixed $91,885,000 4.50
2007B Fixed 7,110,000 4.71
2008B Fixed 8,815,000 2.96
2009A Fixed 13,405,000 4.72
2010A Fixed 80,000,000 3.68
2010C Fixed 157,000,000 4.11
2011A Fixed 111,465,000 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 127,510,000 3.30
2016A Fixed 145 880 000 3.02
TOTAL $1.116.050.000 2.98
Weighted Avg.Cost of Funds
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
ASSET
MANAGEMENT
March 31, 2016
Mr. Mike White, CPA
Controller
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley CA 92708-7018
Dear Mike,
Bond Market Recap
The Federal Open Market Committee (FOMC) left policy rates unchanged in March, as
expected. The tone of the FOMC policy statement was largely dovish and the Committee's
consensus forecast for the year-end target federal funds rate was revised down to a level more
closely aligned with market expectations. The FOMC's median forecast now implies two rate
hikes in 2016 versus the previous forecast of four rate hikes. Fed funds futures prices currently
imply just one more rate hike this year. The FOMC also adjusted some of their longer term
forecasts, with the pace of rate hikes in 2017 and 2018 moving modestly lower. Esther George,
the President of the Federal Reserve Bank of Kansas City was the lone dissenter at the March
meeting, preferring to see the target fed funds rate increase by 0.25%. We believe monetary
policy continues to be data dependent and we will be watching developments in currency
market valuations, in particular the direction of the US Dollar, to help ascertain the future
direction of the FOMC. A stable or weaker dollar will likely give the FOMC more latitude to
continue the normalization process specific to the federal funds target rate; a stronger dollar
would have the opposite impact.
Domestic economic data is generally favorable. Labor market trends continue to improve,
consumer confidence is strong, and housing trends remain healthy. In addition, manufacturing
trends seem to be improving. Payrolls have increased by an average of 209,000 per month over
the past three months. Meanwhile inflation pressures remain contained. Fourth quarter 2015
GDP grew at a stronger than expected annualized pace of 1.4%, following growth of 2.0% in the
third quarter. Market participants have been forecasting GDP growth of about 2.0% in the first
quarter of 2016, but some economists recently reduced their forecast.
In March, the Treasury yield curve steepened slightly, with the 2-year Treasury yield down five
basis points and the 10-year Treasury yield up three basis points. We believe the modest
decline in shorter-term yields was influenced by largely dovish comments made by members of
the FOMC during the month. Even though inflation remains contained for now, which gives the
Fed more leeway to remain highly accommodative, we believe strong labor market trends leave
the door open for the Fed to continue normalizing monetary policy this year. We believe two
more 25 basis point fed funds rate hikes before year-end are possible. Ongoing uncertainty
GAL CHANDLER
ASSET
MANAGEMENT
about monetary policy and how the Fed communicates its economic projections will likely
continue to fuel financial market volatility.
In March, the Treasury yield curve steepened slightly. However, over the past three month the
yield curve has flattened with the 2-year Treasury yield down about 33 basis points and the 10-
year Treasury yield down about 50 basis points. We believe the modest curve steepening
during March was influenced by dovish comments made by members of the FOMC in the
month.
Consumer Prices
Inflation pressures remain contained for now. The Consumer Price Index (CPI) was up just
1.0% year-over-year in February, vs. 1.4% in January. Core CPI (CPI less food and energy)
was up 2.3% in February, vs. 2.2% in January. The Personal Consumption Expenditures (PCE)
index was up 1.0% year-over-year in February, vs. up 1.3% in January. Core PCE (excluding
food and energy) was up 1.7% year-over-year in February, unchanged from January. PCE
remains below the Fed's 2.0%target.
Retail Sales
Consumer spending trends have underwhelmed but we are hopeful the impact of lower
commodity prices will begin to provide a tailwind. On a year-over-year basis, retail sales were
up 3.1% in February, vs. up 3.0% in January. On a month-over-month basis, retail sales,
excluding autos and gas, were in line with expectations in February, up 0.3%. However, retail
sales in January were revised down to a decline of 0.1% from a gain of 0.4%. Overall retail
sales, including autos and gas, were down 0.1% in February, following a disappointing 0.4%
decline in January.
Labor Market
The March employment report was stronger than expected. Nonfarm payrolls rose by 215,000
in March, exceeding the consensus forecast of 205,000. January and February payrolls were
revised down slightly by a net total of 1,000. The unemployment rate inched up to 5.0% from
4.9%, as the participation rate increased to 63.0% from 62.9%. A broader measure of
unemployment called the U-6, which includes those whom are marginally attached to the labor
force and employed part time for economic reasons, also ticked up to 9.8% from 9.7%. Wages
rose 0.3% in March, exceeding expectations. During the first quarter of 2016, payrolls increased
by an average of 209,000 per month, compared to the trailing six-month average of 246,000.
Overall, the March jobs report points to ongoing strength in the labor market.
Housing Starts
Total housing starts rose 5.2% on a month-over-month basis in February, exceeding
expectations. Single-family housing starts grew 7.2% while multi-family starts rose 0.8%.
Housing starts tend to be volatile on a month-to-month basis, but the underlying trend is solid
with total housing starts up 30.9% on a year-over-year basis. Overall, we believe housing
market trends remain healthy.
2
C/" CHANDLER
ASSET
MANAGEMENT
YIELDSTREASURY 1
3 Month 0.20 0.17 0.03
2 Year 0.72 1.05 (0.33)
3 Year 0.85 1.31 (0.46)
5 Year 1.21 1.76 (0.55)
7 Year 1.53 2.09 (0.56)
10 Year 1.77 2.27 (0.50)
30 Year 2.61 3.02 (0.41)
ECONOMIC INDICATOR CURRENTRELEASE PRIORRELEASEONE •
Trade Balance (47.1) $Bln FEB 16 (45.9) $Bin JAN 16 (38.6) $Bin FEB 15
GDP 1.4% DEC 15 2.0%SEP 15 2.1%DEC 14
Unemployment Rate 5.0%MAR 16 4.9% FEB 16 5.5% MAR 15
Prime Rate 3.5%MAR 16 3.5% FEB 16 3.25%MAR 15
CRB Index 170.52 MAR 16 163.21 FEB 16 211.86 MAR 15
Oil (West Texas Int.) $38.34 MAR 16 $33.75 FEB 16 $47.60 MAR 15
Consumer Price Index(y/o/y) 1.0% FEB 16 1.4%JAN 15 (0.0)% FEB 15
Producer Price Index(y/o/y) (1.9%) FEB 16 (1.2%)JAN 16 (3.2)% FEB 15
Dollar/EURO 1.14 MAR 16 1.09 FEB 16 1.07 MAR 15
3
C/" CHANDLER
ASSET
MANAGEMENT
Performance Attribution
Long-Term Portfolio
The Long-Term portfolio slightly trailed the performance of the benchmark during the quarter,
generating a return of 1.54% versus 1.56% for the Bank of America 1-5 Year AAA-A US
Corporate and Government Index. Chandler is attributing the slight underperformance of the
portfolio to the underweight in the 2-3 year portion of the curve as the yield compression at the
three year maturity point outperformed the shorter maturity (i.e. less than one year) exposure in
the portfolio. The overall mix of securities, particularly in the Corporate and Agency sectors,
positively contributed to the results. The Corporate exposure continues to focus on up-in-quality
names relative to the benchmark. Corporate spreads were very volatile intra-quarter, hitting the
widest point in February, but recovered in March to end the quarter with a minimal change
compared to year-end valuations. Agency spreads were mostly stable during the quarter, but
the overweight position relative to the benchmark positively added to the results of the portfolio.
The Chandler team purchased a broad mix of securities during the quarter in the Treasury,
Agency, Supranational, Asset Backed, Commercial Paper, and Corporate sector of the market.
Liquid Portfolio
The Liquidity Portfolio outperformed the benchmark during the quarter, generating a return of
0.17%versus 0.07%for the three-month Treasury Bill Index. The portfolio added exposure in
the Treasury, Agency, Supranational, Commercial Paper, and Corporate sectors of the market
to reinvest to upcoming liquidity needs and to counteract the shortening of the portfolio with the
passage of time. Similar to prior quarters the Chandler team continues to focus on positioning
to out-yield the benchmark after taking into account anticipated liquidity events. On a net basis
$68 million was withdrawn from the portfolio during the quarter.
4
OIL CHANDLER
ASSET
MANAGEMENT
Economic Outlook
The overall global economic backdrop remains precarious in Chandler's view. Economic
challenges abroad, particularly in Europe and Japan, are likely to limit the ability of the Federal
Reserve to 'normalize' monetary policy as much as they would like. Negative interest rates in
Europe and Japan will put a ceiling on how high domestic interest rates can move. The
domestic economy looks to be in decent health with non-farm payrolls averaging 209k over the
past three months and the U-3 unemployment rate at 5.0%. Wage inflation has been dormant
but the Chandler team is closely following the U-6 unemployment rate (part-time and marginally
attached workers), most recently at 9.8%, to gauge whether wage inflation will start to exert
some influence on broader inflation metrics. Encouragingly market based measures of inflation
have moved off the lows, but are still at values inconsistent with the Federal Reserve being
'behind the curve' with regards to traditional monetary policy. Chandler maintains the view the
Federal Reserve will be able to increase the Federal Funds target rate two times in 2016, but
the risk is to the downside (i.e. only be able to increase one time).
Oil prices have recently firmed and positively contributed to the improved economic outlook over
the past several weeks. The influence of oil on risk assets will dissipate assuming the volatility
in the commodity market stabilizes. Over an intermediate time horizon we would expect the
lower price of oil to be a positive influence on consumer spending, but to date the impact has
been underwhelming. Even with the recovery in the price of oil the earnings outlook for many
energy companies remains challenging. The Chandler team will continue to focus on
opportunistically adding attractively priced securities to the respective OCSD portfolios. The
spreads on very high quality corporate notes looks expensive currently, and we are likely to
focus on some of the more attractively priced finance names in the coming quarter. Agency,
Supranational, and Asset Backed security valuations also look fair on a risk adjusted basis and
the Chandler team will continue to be opportunistic in altering the exposure of the respective
portfolios.
Strategy
Strategy highlights for the Long-Term Portfolio in coming months:
• Extend the duration of the portfolio when the market is pricing in the possibility of a rate hike
in 2016.
• Opportunistically increase the Corporate allocation in attractively priced securities; continue
to avoid names predisposed to M&A activity and willing to sacrifice balance sheet strength
for the benefit of equity holders.
• Continue to underweight the 1-3 portion of the maturity structure and internal quantitative
models prefer a modest barbell structure relative to benchmarks.
Strategy highlights for the Liquidity Portfolio in coming months:
• Continue to ladder the Agency discount not exposure to correspond with a portion of
upcoming liquidity needs.
• Maintain a dedicated allocation to the US Treasury sector of at least 20.0%.
• After accounting for upcoming liquidity needs focus transactions on return enhancing
opportunities in Corporate notes with a maturity range between six to twelve months.
5
C/" CHANDLER
ASSET
MANAGEMENT
Compliance Issues
Orange County Sanitation District Long Term
OL March 31,2016
COMPLIANCE POLICY
Assels managed by Chandler Asset Management are in lull compliance wit,State lawand wM Me im ndimentpolicy
Category Standard Comment
Treasury issues 5 were maximum maturity Complies'
Supdunational "AA"or batter by l of3 NRSROS; 30%maximurn; 5%max 5years maturity, Complies
Includes oH . IADB IBM,and IFC per CGC
U.S.Agencies 20%max issuer, 5 years maximum maturity Complies
U.S.Corporate(MTN.) "A"or better long tern during by l of 3 NRSR0s; 30%maximum;5%max issuer, 5 Complies'
Were max maturity
Municipal Securities "A"or higher by l of3 NRSROS;10%maximum; 5%max issuer, 5 years maximum Complies"
maturity
Asset Backed/CMOs/ "AA•or better by l of3 NRSROs; W or higher issuer rating by l of3 NRSRCs; 20% Complies'
Mo a e-backed maximum; 5%max issuer(excluding MBS/ m,tagency);5 are max maturity
Negotiable CDs "A"or better on its lorg tern debt by l of3 NRSROs; 'A11P1"or highest short term Complies
mtiigs by 1 of 3 NRSRCx 30%maximum;5%max issuer; 5 Were max maksity
CDs1TD5 5%max issuer, 5yeers max maturity Complies
Banker's Acceptances A-1,or equivalent Nghest short teen sting by l of 3 NRSROS; 40%maximurn; 5% Complies
max issuer 180 days max maturity
Commercial Paper A-1,or equivalent by l of 3 NRSROS; "A"or better by l of3 NRSROs,if longterm Complies
debt issued' 25%maximum' 5%max issuer, 270 days max maturity
Moray Market Furl Highestm1Jrgby2of3NRSROs; 20%maximnn;10%maxissuer Complies
Repurchase Agmernanis 102%collaterallanon Complies
Reverse Repumhase 5%maximum,90 days max maturity Complies
Agreements
LAIF Not used by lovestmem adcser, Complies
rAug Duration Nottoexceed60mosths - (80%to120%ofthebenchmark) Complies
Maamtm Maturity, 15 years maximum maturity Complies'
9Fa panfdio ras menlyaewn(27)securities w11h maturities greater than 5 years Including one(1)ABS.has(5)CMOs,sightean(10)VBS.one(1)municipal,om(1)
canoe a and ona(u neaam, Ni secant es xem Patented kom the rammus manager and complied at lime Npamhoose.
6
C/" CHANDLER
ASSET
MANAGEMENT
C/" Orange County Sanitation District Liquid
March 31,2016
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler Asset Management are in full compliance with State lawand with the investment policy
Category Standard Comment
Treasury Issues l year maximum maturity, Minimum allocationof10% Complies
Supranational "AA"orbetterbyl of3NRSROs; 30%maximum; 5%max 1 Complies
year maturity; Includes only IADB BIRD,and IFC per CGC
U.S.Agencies 20%max issuer, l year maximum maturity Complies
U.S.Corporate(MTNs) "A"or better long term rating by 1 of 3 NRSROs;30%maximum; Complies
5%max issuer; 1 year max maturity
Asset Backed/CMOs "AA"or better by 1 of 3 NRSROs; "A"or higher issuer m1mg by 1 Complies
of 3 NRSROs; 20%maximum; 5%max issuer; 1 year max
maturity
Negotiable CDs "A"or better on its long tens debt by l of 3 NRSROs; "A1/P1"or Complies
highest short term ratings by 1 of 3 NRSROs; 30%maximum;5%
max issuer;1 year max maturity
CDs/TDS 5%max issuer; 1year max maturity Complies
Bankers Acceptances A-1,or equivalent short term rating by l of 3 NRSROS; 40% Complies
maximum; 5%max issuer;180 days max maturity
Commercial Paper A-1,or equivalent by l of 3 NRSROS; "A"or better by l of 3 Complies
NRSROs,if long tens debt issued; 25%maximum; 5%max
issuer, 270 days max maturity
Money Market Fund Highest rating by2 of3 NRSROs; 20%maximum;10%max issuer Complies
Repurchase Agreements 102%collatemli ation Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
Agreements
LAF Not used by investment adviser Complies
Prohibited Municipal Securities Complies
Prohibited Mortgage Securities Complies
Avg Duration Not to exceed 180 days; Max duration of 1/2 year Complies
Maximum Maturity 1 year maximum maturity Complies
7
C/" CHANDLER
ASSET
MANAGEMENT
C/" OCSD Lehman Exposure
March 31,2016
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler Asset Management are in full compliance wth State lawand wth the investment policy
Category Standard Comment
Treasury Issues 5 years maximum maturity Complies
Supranotional "AA"or better by of3 NRSROs; 30%mapmum; 5%max; 5 Complies
ors maturity; Includes o . IADB IBIRD,and IFC per CGC
U.S.Agencies 20%max issuer, 5 years mend um maturityCom lies
U.S.Corporate(MTNs) "A"or better long term red ng by l of 3 NRSROs; 30%maxi mum; Complies'
5%max issuer 5 years max maturity
Municipal Securities "A"or higher by 1 of 3 NRSROS;10%maximum; 5%max issuer, Complies
5 years maximum matunly
Asset Backed/CMOs/ "AA"or better by l of 3 NRSROs; War Ngher issuer rating by l Complies
Mortgage-backed of3NRSROs; 20%maximum; 5%max issuer(excluding
MBS/ ovtagency);5 ars max maturity
Negotiable CDs "A"or better on its long term debt by l of 3 NRSR0s; "A1/P1"or Complies
highest shod term ratings by 1 of 3 NRSROs; 30%mapmum;5%
max issuer, 5 years max maturity
CDs/TDS 5%max issuer 5 years max maturity Complies
Bankers Acceptances A-1,or equivalent highest short term rating by l of3 NRSROS; Complies
40%mapmum; 5%max issuer,180 days max maturity
Commercial Paper A-1,or equivalent by l of 3 NRSROS; "A"or better by of3 Complies
NRSROs,if long term debt issued; 25%mapmum; 5%max
issuer; 270 days max maturity
Money Market Fund Highest rating by2 of3 NRSROs; 20%mzpmum;l0%maxissuer Complies
Repurchase A reements 102%collateralization Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
A mements
LAIF 1 Not used by investment adviser Com lies
A Duration Notto exceed 60 months - 80%to 120%ofthe benchmark Co. lies
Maximum Maturity 5 years maximum maturity Complies
Account hdds$2 million face wlue(cusip 525ESUY6)and$e00,000 face vine(cusip 525ESC1137)of defaulted Lehman Bros Hddings the were
purchased by the previous manages Complied at time of purchase.
8
C/" CHANDLER
ASSET
MANAGEMENT
Defaulted Bonds
QI J OCSD LOOM Exp➢NN.. Holdings Report
Account nmzu Aem391M
4XOFN]M copenFWuon 13 x 2112% NRfNR
:i o
oL1, 13 0➢01 om c x400) NR�IC ➢m� n±noie
y#n]
—woa w,+xe.n xlR w.]wn] mox Xw oX.]iaom xR ew
x4 CONOMTE
111.119] .,00000 0&..S 3®,M1 BV 3RBBBW @00% NRINR OB3
3.1114 @#p55a4J NI
515ESGOW LeNn�EMMrcNCA�ONY#tl 3Im,00000 #xINI S 11 RSS��05 003w xx�540W SO NRINR 33Y
193$11➢6 (1115901➢6) NR
1,wL#3.x0 + M OAe% NRIXR IW
;f•,00&08 si,#x.ao w,w6 ry,m4zasolUP
WTALPOR]i0110 3}wp3N] XIA 1,w0.N1.w 0➢0% ry,M0.19e.e01 X0. IM
9
OIL CHANDLER
ASSET
MANAGEMENT
Ratings
Orange County Sanitation District Long Term
March 31,2016 vs. December 31,2015
two+
r0N1
oom
IOLM
AW
Op
N1I14 _. I.ml
AM M A K NR
l3ans 12.0% ]BA% 102% 3.5% 39%
12131H0 130% me% 05% 4.2% 36%
Bwm'.aaRb�p
Orange County Sanitation District Liquid
March 31,2016 vs. December 31,2015
aoax
no%
LLO1t AM M A �♦ M
]ryV18 a I.ra
AM Ah A G MR
N1110 01.3% 07.6% as% D.0% 18%
12A1H5 0]]% 23.1% e5% 0.0% D8%
swm.ear.,
10
C/" CHANDLER
ASSET
MANAGEMENT
OCSD Investment Program
Quarter End Portfolio Value
$600,000,000
Liquid Operating Monies
$500,000,000 .Long-Tenn Operdting Monies
$400.000,000
$300,000,000
$200,000,000
$100,000,000
@a'P
HISTORICAL YIELD CURVE
4.00%
MAR 2016
-FEB2016
3.00% ___ — MAR 2015 __________________________________________________________;,
2.61%
2.00% 1.77%
1.53
1.21%
1.00% 0.85%. ____________________________________________________________{
0.72%
0.38%
0
0.00%0% `—
oio 01, 001,
11
C/" Orange County Sanitation District Liquid Portfolio Summary
Account#10282 As of 3/31/2016
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY ••
0111110 Beg.Values End Values Issuer %Portfolio
Average Duration 0.27 as of 2/29116 as of 3131/16 Government of United States 40.9%
Average Coupon 0.79% Market Value 63,602,795 63,694,980
Federal Home Loan Bank 16.3%
Average Purchase YTM 0.58% Accrued Interest 146,463 96,802 Drefus Treasury MMKT FD 521 6.6%
Average Market YTM 0.46% Total Market Value 63,749,258 63,791,781
9 Intl Bank Rewn and Development 3.9%
Average S&P/Moody Rating AA+/Aal Income Earned 30,046 29,721 International Finance Corp 3.9%
Average Final Maturity 0.27 yrs COntAYD 0 Inter-American Dev Bank 3.9%
Average Life 0.22 yrs Par 63,552,571 63,639,542 Federal Home Loan Mortgage Corp 3.1 %
Book Value 63,589,896 63,669,279 Bank of Tokyo-MR UFJ 2.0%
I Cost Value 63,666,193 63.704,350 80.6%
• MATURITY DISTRIBUTION CREDIT QUALITY(S&P)
-
US
Treasury Negotiable (47.6%)
(409%) CD 63,2%
(1.6%) (✓D%
us
Comarate
(14.2%) SuprGO%
(11,8 ational
119%) 274%
Corn isroal
Paper
Paper 20%
(39%) 2.5%
PAA NR
Money Agency (41.3%) (1.6%)
Market (21.1%) %
Fu00 0-.25 35-.5 5-1 1-15 I5 2 2 2.5 3.5-3 3, A
FI Maturity(yrs) (9.5%)
(66%)
Total Rate of Return Current Latest Year Annualized Since
As of 3/31/2016 Month 3 Months To Date 1 Yr 5 Yrs 10 Yrs 11130/2014 11/3012014
Orange County Sanitation District Liquid 0.07% 0.17% 0.17% 0.33% N/A N/A N/A 0.30% 0.40%
BAML 3-Month US Treasury Bill Index 0.05% 0.07% 0.07% 0.12% N/A N/A N/A 0.10% 0.13%
Chendlar Assaf Mam,eried-CONFIDENTIAL Page1 Exec wTime:4I1820158:48:30PM
C/" Orange County Sanitation District Long Term Portfolio Summary
Account#10268 As of 3/31/2016
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY ••
Millis Beg.Values End Values Issuer %Portfolio
Average Duration 2.48 as of 2/29/16 as of 3131/16 Government of United States 32.9%
Average Coupon 1.52% Market Value 317,107,919 318,646,635
Federal Home Loan Bank 9.6%
Average Purchase YTM 1.40% Accrued Interest 1,059,205 953,775 Federal Home Loan Mortgage Corp 9.4%
Average Market YTM 1.03% Total Market Value 318,167,124 319,600,409
9 Federal National Mortgage Assoc 9.2%
Average S&P/Moody Rating AA+/Aal Income Earned 348,258 370,713 Toyota ASS 2.6%
Average Final Maturity 2.93 ym COnt/WD 33,184 Honda ASS 2.2%
Average Life 2.58 yrs Par 313,483,926 314,028,687 John Deere ASS 2.0%
Book Value 314,328,024 314,837,249 Bank of Tokyo-MR UFJ 2.0%
I Cost Value 315.237,057 315.880,392 69 9%
MBS 30% AA
(08%) u$ 26.6% (704%)
us Treasury 25%
Corporate (32.9%) L% 14A;%
BBB
3.5%)
Commercial 2�'
Paper NR
Municipal Supranational 15%Berra (47%) A
Maney 53% J83% (10.2%)
Market
5%
CMO
(1 1 %) Agency %
(26.7%) 0- 25 35-.5 5-1 1-2 2-3 3-4 d-5 b
AB$ 0%)
(7.6%) Maturity(Yrs) p20%)
Total Rate of Return Current Latest Year 111100111111- Annualized Since
As of 3/31/2016 Month 3 Months To Date 1 Yr 5 Yrs 10 Yrs 11/30/2014 11/3012014
Orange County Sanitation District Long Tenn 0.44% 1.54% 1.54% 1.58% N/A N/A N/A 1.63% 2.18%
BAML 1-5 Yr US Corporate/Gout Rated AAA-A Index 0.37% 1.56% 1.56% 1.68% N/A N/A N/A 1.74% 2.32%
BAML US 15 Yr US Corp/Govt Rated AAA-BBB Index 0.52% 1.61 % 1.61 % 1.66% N/A N/A N/A 1.72% 2.29%
Chandler Asset Mamgemele-CONFIDENTIAL Peg.1 Ex.c wTime:01320168:45:36PM
Orange County Sanitation District
Investment Transactions and Balances in the
State of California Local Agency Investment Fund
March 31, 2016
Par Value Book Value Market Value Rate Yield
Balance
March 1, 2016 $50,579,886 $50,579,886 $50,579,886 0.51 0.51
Deposits:
3/11/2016 18,300,000 18,300,000 18,300,000 0.51 0.51
Total Deposits 18,300,000 18,300,000 18,300,000 0.51 0.51
Withdrawals:
3/2/2016 (2,100,000) (2,100,000) (2,100,000) 0.51 0.51
3/3/2016 (1,800,000) (1,800,000) (1,800,000) 0.51 0.51
3/7/2016 (2,400,000) (2,400,000) (2,400,000) 0.51 0.51
3/16/2016 (2,200,000) (2,200,000) (2,200,000) 0.51 0.51
3/17/2016 (2,500,000) (2,500,000) (2,500,000) 0.51 0.51
3/24/2016 (3,400,000) (3,400,000) (3,400,000) 0.51 0.51
3/30/2016 (2,100,000) (2,100,000) (2,100,000) 0.51 0.51
Total Withdrawals (16,500,000) (16,500,000) (16,500,000) 0.51 0.51
Balance
March 31,2016 $52,379,886 $52,379,886 $52,379,886 0.51 0.51
3 Asset Summary R.P rc GL8251
sere wrrmay: us.
BNY MBLLON by Asset Type with Sectors ABermi¢Bar.Carrea.r:
Extha.,Rale:
OCS L(Q OR CHANDLER-OCSF%511102 3/31/2016 Stalos:FINAL
Net Unrealized
Cost Market Value %of Gaio/Loss
Description Base Base Total Base
CASH&CASH EQUIVALENTS
US DOLLAR
COMMERCIAL PAPER-DISCOUNT 2,P)5,000.000 2,49R689.]9 2.., 1J9 3.87% 0.00
PEDERALPARM CREDIT BANK-I YRORL09S LOI5.000.WJ 1,0]LBIL13 1,0]L811.13 L68K 0.00
FEDERAL HOME LOAN BANK-I YR OR LESS 10,385,00RARo 10,365,131.61 10,365,131.61 16.25% 0.00
FEDERAL HOME LOAN MORTGAGES-I YR OR LESS 2,Wg000." 1$90,040.00 1,91,'No.00 3.13% 0.00
SHORT TERM INVESTMENT FUNDS(US REGULATED) 6,]MpD.3W 6,]Wp]3.36 6,]Wp]3.36 10.51% 000
PENDING TRADES -2,4W,93125 -2,499,931.25 -3.92% 0.00
INTEREST 10,995,18 107,995.18 0.17% 0.00
U.S.DOLLAR 22,639p73360 20,217,209-82 20.217$0987 3149% 0.00
CASH ffi CASH EQUIVALENTS 22,639,47 .3W 20,217,209.82 20,217,209.82 31.69% 000
FIXED INCOME SECURITIES
U.S.DOLLAR
BANKING&FINANCE 6,000.000.00) 6,02R80.00 1102,030.w 9.44% -2,900.00
CAPITAL GOODS IM'000 I,W],290OR 1,W2,70IN 1.57% 4,590.00
CERTIFICATES OF DEPOSIT I'm,00R"" SS9,83R00 1 WaSRO 1.57% 430.00
FOOD BEVERAGE&TOBACCO LoPROORWJ LWG450.0) LW4$90.00 1.57% 3,18000
INSURANCE I'm,000.0.0 1,014,1]O.W I,W5,]40.W L58% -8,43000
SUPRANATIONAL ISSUES 7"A"R000'.p ],5N,125.W ],508,]W.W 11.]]% 4,575.00
US GOVERNMENTS 26,0'J0,0000]0 26,039,540.23 26,029,590.00 40.91% -9,95023
U.S.DOLLAR 43,500,000.020 43,595.13523 43.572$90.00 6931% -22,845,23
FIXED INCOME SECURITIES 43,50R000.WJ 43,595,135.23 43,572290.00 68.31% -22,84523
TOTAL ASSETS-BASE: 66,139,473.360 63,812,345.05 63,789,499.82 I0.00% 22,84523
411912016 4:4033PM EOJ 1 RoGkbe h
3 Asset Summary R.P rc GL8251
eare wrrm9y: us.
BNY MBLLON by Asset Type with Sectors ABermi¢Bar.Ca—,,:
Extha.,Rale:
OCS LONG CHANDLER-OCSF00522202 3/31/2016 Stalos:FINAL
Net Unrealized
Cost Market Value %of Gaiu/6oss
Description Bese Base Totnl Base
CASH&CASH EQUIVALENTS
IFS DOLLAR
CASH EQUIVALENTS 69.128,130 W0 81250 28,7M.13 0,01% -]6,W83]
COMMERCIAL PAPER-DISCOUNT 6,3I0.00R. 6,350.26053 6,355.2N.53 1.99% 0.00
SHORT TERM INVESTMENT FUNDS WS REGULATED) 7,157,805.120 7,157,805.12 7,157,805.12 2.24% 0.00
CASH -2,W;133.33 -2,002,133.33 -0.63% 0.00
PENDING TRADES 19.52 19.52 RWA Roo
INTEREST 990,174.51 970,174.51 R3WG R00
U.S.DOLLAR 13,595,933250 12,595,93685 12,5N,N8A8 3.91% -06,02837
CASH&CASH EQUIVALENTS 13,595931250 12,58593635 12,509,90848 391% -76,02837
USED,INCOME SECURITIES
US DOLLAR
ADS-CAR LOANS 15$57.942.490 15.24190735 15,248.60707 477% 6,6932
ABS-CREDITCARDS 2,50.000,M 2,499.121,10 2,501,72SW 0,78% 2,60390
ABS-EQUIPMENT 6,420,000M 6,421,494.09 6,416,134.60 2.01% -5,35949
ADS-HOME EQUITY 136,799.29() 103,130.73 125,57LCI R(K-A M,4407I
ASS-SMALL BUSINESS ADMINISTRATION 91,130.M 91,130.W 98,856.07 0.03% ],]2601
ADS-STUDENT LOANS 41368.M 41,200.17 4Q905.51 0.01% -294.66
BANKING&FINANCE 44.570,000,M 45,4r,153.43 43,697,731.50 13.66% -1,799,421.93
CAPITAL GOODS S.Wg00R" 5,014,95RW 5,146,80000 161% 131,850.00
FHLMC MULTICLASS 2,036,343.180 2,229.060,93 2,318,964.31 0,)2% 89,70338
FHLMC POOLS 2,583.880 452092 26]2.0] 0.WYe 151.15
FNMA POOLS 1,923,I67]50 2,015,053.39 2,IM,812.21 0.66% 89,758.0
FNMA REMIC 541,449.040 535,728.74 545,140.36 0.17% 9,41162
GNMA MULTI FAMILY POOLS 263,734.9I0 263,771.13 272$90.40 RW% 8,51927
GNMA REMIC 49,NR200 42,440.20 42,670.23 0.01% 230ID
HEALTHCARE 4.000,000," 4,Y.6I5,W 4,(92,000.00 129% 82,32500
OIL&GAS 9,51800R W 9,478.ARW 7,528,83550 235% 50,29550
SUPRANATIONAL ISSUES 15,W,000,M 15,031.420,00 15,021, W.W 4,7W. -9,820,00
TAXABLE MUNICIPALS C2A0,000,000 430,633.89 4(I]5,60.W 1.49% 468,026.11
TECHNOLOGY 7,000,000.000 ],W3,4]5.40 9,141(140.00 2.23% 138,26L60
US.TIPS IQ376,28&GX) 10,259,003.89 10,411,9U.43 3.25% 152,9]854
411912016 4:40.23PM EDT 2 WoAb—h
3 Asset Summary Rep rc GL8251
acre wrrmay: us.
BNY MBLLON by Asset Type with Sectors ABernaN Bar.Cerra ,
Extha.,RAW
OCS LONG CHANDLER-OCSFO]522202 3/31/2016 Stales:FINAL
Net Unrealized
Cost Market Value %of Gaio/Loss
Description AMIL-mmi
Par Base Base Total Base
US AGENCIES 8,1,365,000'. 84,19R991,40 85,034,76600 26.58% 800,994.60
US GOVERNMENTS 93,300000W0 93,213,391.73 94,319,829.00 29.49% 1,106,43727
WHOLE LOAN-CMO-COLLATERALIZED MTG OBLIG 4I9,950920 4]9,M8.]4 479,456.57 0.15% 492.17
U S.DOLLAR 305,102,99]]80 305,975,742.29 307,368,550.27 96.09% 1,392,80].98
FIXED INCOME SECURITIES 305,102992780 305,9]5,]42 29 307,168,55027 9609% 1,3928Som
TOTAL ASSETS-BASE: 318,698931,030 319,561,679,14 319808,45805 100.0% 1,31677961
411912016 4:40.23PM EDT 3 Wo E—h
Asset Summary Re9orc m; GL8351
eare w..may: usD
BNY MBLLON by Asset Type with Sectors Ahe.mi¢Ba.a carve ,
Extha.,Rale:
ESCROWACCOVA7-OCSH7555502 3/31/2016 late,:FINAL
Net Unrealized
Cost Market Value %of Gaiu/6oss
Description Base Base Total Base
FIXED INCOME SECURITIES
US DOLLAR
US GOVERNMENTS 3,591,000,0I0 3,60A596,33 3,SK00000 100.00% -9,5%,33
TOTAL ASSETS-BASE: 3,5N,000000 3,603,596.33 3,594A00.00 100.00% -9,596.33
411912016 4:6033PM EDT 4 Wo E—h
Yield Analysis Report ID: RAM234
Base Currency:
BNY MELLON
OCSF07511102 3/31/2016
Liquid Oper-Pi.
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 o(Acmuui Receivables - 0.00
SUMRECV -2,391,936
AGENCY
2,000,000.00 FEDERAL HOME LN BK CONS DISC N 0.26 Aaa 99.96 1,998,044 9.93 0.15
313384XJ3 MAT 05/27/2016 1,998,044 3.13
985,000.00 FEDERAL HOME LN INKS CONS DISC 0.32 Ana 99.94 982,224 4.88 0.21
313384YFO MAT 06/17/2016 982,224 1.54
2,000,000.00 FEDERAL HOME LN MTG CORP DISC 0.46 Aaa 99.92 1,998,040 9.93 0.18
313396XU2 MAT 06/06/2016 1,998,040 3.13
1,400,000.00 FEDERAL HOME LN BK CONS DISC 0.50 Aaa 99.90 1,398,530 6.95 0.28
313384ZG7 MAT 07/12/2016 1,398,530 2.19
COMMERCIAL PAPER
1,075,000.00 FEDERAL FARM CR BE CONS SYSTEM 0.53 AAA 99.87 1,071,811 5.33 0.22
313312YJ3 0.000%06/20/2016 DD 06/22/15 1,071,811 1.68
1,200,000.00 TOYOTA MTR CR CP DISC 0.59 0.59 P-1 99.80 1,197,640 5.95 0.33
89233GFP6 06/23/2016 1,197,640 1.88
1,275,000.00 BANK TOKYO-MITSUB DISC 090 0.70 P-1 99.77 1,272,050 6.32 0.33
06538BFQ1 06/24/2016 1,272,050 1.99
OTHER
6,704,493.36 DREYFUS TREAS&AGY CSH CSH MG - Aaa 6,704,473 33.32 0.08
996085247 VAR RT 12/31/2049 DD 04/09/97 6,704,473 10.51
TREASURIES AND AGENCIES 0
411912016 4:03:31PM EDT 1 Source:The Bank fNew York Mellen Communion
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
0CSFO7511102 3/31/2016
Liquid Oper-Pi.
Units Held YTM/ Current Moody's Market Total Cost %Type Option
Security ID Security Description can(BOP) Yield Quality Price Market Value %Market Adj
Rating Value Duration
2,000,000.00 FEDERAL HOME LN BE CONS DOSC N 0.29 A. 99.96 1,998,003 9.93 0.09
313384WM7 MAT 05/06/2016 1,998,003 3.13
4,000,000.00 FEDERAL HOME LN BK CONS DISC 0.60 Aaa 99.87 3,988,331 19.82 0.23
313384YN3 MAT 06/24/2016 3,988,331 6.25
Us CASK
1.00 LSD(UNITED STATES DOLLAR) - - 0 0.00 -
NA9123459 GL PAYABLES RECEIVABLES 0 0.00
TOTAL:CASH&TEMPORARY 0.66 0.12 22,609,146 100.00 0.20
20,217,210
FIXED INCOME
BANES&FDIANCE
1,000,000.00 GENERAL ELECTRIC CO 0.53 1.50 Al 100.27 1,007,290 2.30 0.28
36962G6Z2 1.500%07/12/2016 DO 07/12/13 1,002,700 L57
1,000,000.00 BERKSHHtE HATHAWAY INC 0.65 2.19 Aa2 100.57 1,014,170 2.30 0.37
08467OBB3 2.200%08/15/2016 DO 08/15/11 1,005,740 1.58
1,000,000.00 WELLS FARGO&CO 0.66 1.25 A2 100.18 1,001,870 2.29 0.30
94974BFL9 1.250%07/20/2016 DO 07/29/13 1,001,990 1.59
1,000,000.00 BANK OF NEW YORK MELLON CORP/T 0.90 2.29 Al 100.52 1,008,760 2.30 0.32
06406HBX6 2.300%07/28/2016 DO 07/28/11 1,005,170 1.58
1,000,000.00 AMERICAN HONDA FINANCE CORD 0.91 1.12 Al 100.21 1,001,660 2.30 0.51
02665WA139 1A25%10/07/2016 DO 10/10/13 1,002,130 1.57
1,000,000.00 JOHN DEERE CAPITAI,CORP 0.80 1.05 A2 100.13 1,001,070 2.29 0.52
24422ESD2 1.050%10/11/2016 DO 10/11/13 1,001,300 1.57
411912016 4:03:31PM EDT 2 Sourr M: BaNc. fNew York Meil Corporadon
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
OCSF07511102 3/31/2016
Liquid Oper-Pi.
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
1,000,000.00 US BANCORP 0.83 2.18 Al 100.85 1,009,900 2.31 0.61
91159HHB9 2.200%11/15/2016 DD 11/03/11 1,008,460 1,58
1,000,000.00 JPMORGAN CHASE&CO 1.10 1.35 A3 100.22 1,000,470 2.30 0.87
46623EJY6 1.350%02/15/2017 DD 02/18/14 1,002,200 1.57
MUSTRIALS
1,000,000.00 COCA-COLA CO/THE 0.77 1.79 Aa3 100.43 1,006,450 2.30 0.42
191216AU4 1.800%09/01/2016 DO 08/10/11 1,004,270 1.57
SUPRANATIONALS
2,500,000.00 INTERNATIONAL BANK FOR RECONST 0.24 1.00 Aaa IM.34 2,506,225 5.75 0.46
459058BS1 L000%09/15/2016 DO 08/24/11 2,508,600 3.93
2,500,000.00 INTERNATIONAL FINANCE CORP 0.54 0.50 Aaa 100.00 2,498,750 5.73 0.13
45950VCJ3 0.500%05/16/2016 DO 02/22/13 2,499,875 3.92
2,500,000.00 INTER-AMEMCAN DEVELOPMENT BAN 0.60 0.62 Asa 100.01 2,499,150 5.73 0.45
4581X0CJ5 0.625%09/12/2016 DD 09/12/14 2,500,225 3.92
TREASURIES
14,000,000.00 U S TREASURY NOTE 0.28 0.50 Ass 100.05 14,001,609 32.08 0.21
912828VG2 0.500%06/15/2016 DD 06/15/13 14,006,300 21.96
4,000,000.00 U S TREASURY NOTE 0.33 1.45 Aae 100.24 4,028,842 9.18 0.17
912828QP8 1.750%05/31/2016 DD 05/3 1/Il 4,009,480 6.29
3,000,000.00 USTREASURY NOTE 0.36 0.62 Asa IW.08 2,999,541 6.88 0.29
912828VL1 0.625%07/15/2016 DD 07/15/13 3,002,340 4.71
2,000,000.00 U S TREASURY NOTE 0.44 1.00 Ass 100.28 2,005,788 4.59 0.50
912828RJ1 1.000%09/30/2016 DD 09/30/11 2,005,620 3.14
411912016 4:03:31PM EDT 3 Soa¢ M: BaNc. fNew York Meil Corporadon
Yield Analysis Report ID: RAM234
Bare Curteacy: USD
BNY MELLON
OCSF07511102 3/31/2016
Liquid Oper-Pi.
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
3,000,000.00 U S TREASURY NOTE 0.45 0.89 A. 100.20 3,003,760 6.88 0.46
912828V 7 0.875%09/15/2016 DD 09/15/13 3,005,850 491
YANKEE BONDS-CORPS
1,000,000.00 COOPERATIEVE CENTRAL MSTL C/D 0.45 0.92 Aug 100.03 999,830 2.29 0.10
21684BPV0 0.716%05/06/2016 DD 05/13/14 1,000,260 1.57
TOTAL:FDLED WCOME 0." 0.95 43,595,135 100.00 0.31
43,572,290
TOTAL:Liquid Oper-Plmco 0.47 0.76 66,204,281 100.00 0.28
63,T89,500
411912016 4:03:31PM EDT 4 Soa¢ M: N of New York Meil Corporadon
Yield Analysis Report ID: RAM234
Base Currency:
BNY MELLON
OCSF07522202 3/31/2016
Long Term Open Pietro
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 o(Acmuui Receivables - 0.00
SUMRECV 970,192
COMMERCIAL PAPER
6,370,000.00 BANK TOKYO-MITSUB DISC 0,70 0.50 P-1 99.77 6,355,261 55.05 0.33
06538BFQ1 06/24/2016 6,355,261 1.99
OTHER
68,128.13 SLH PROXY LONG EXPOSURE - - 104,813 0.25 -
99WAEU30 SLHOPNTA4 28,784 0.01
7,157,805.12 DREYFUS TREAS B AGY CSH CSH MG - Aaa 7,157,805 62.00 0.08
996085247 VAR RT 12/31/2049 DD 04/09/97 7,157,805 2.24
Us CASH
1.00 USD(UNITED STATES DOLLAR) - - 0 0.00 -
NA9123459 GL PAYAHLES RECEIVABLES 0 0.00
1.00 US CASH - - 0 -19.34 -
999999USD GL PURE CASH -2,002,133 -0.63
US CASH FUNDS
0.00 BW MELLON CASH RESERVE 0.43 0.43 - 100.00 0 0.00 0.08
996087094 0.010%12/31/2049 DD 06/26/97 0 0.00
TOTAL:CASH&TEMPORARY 1.01 1.01 13,617,878 300.00 0.23
12,509,908
FIXED INCOME
AGENCIES do OTHER GOVT OBL
411912016 4:03:31PM EDT 5 Source:The Batic. fNew York Megan Communion
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
0CSF07522202 3/31/2016
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
4,000,000.00 FEDERAL NATL MTG ASSN 0.52 1.37 Aaa 100.53 4,044,200 1.30 0.62
3135GOES8 1.375%11/15/2016 DD 10/20/11 4,021,120 1.26
5,000,000.00 FEDERAL HOME LN MTG CORP 0.64 0.50 Aaa 99.89 4,991,050 1.62 0.82
3137EADU0 0.500%01/27/2017 DD 01/16/15 4,994,450 1.56
5,OOQ000.00 FEDERAL HOME LN BK CONS BD 0.68 1.00 Aaa 100.38 5,025,I00 1.63 1.18
313379M4 1.000%06/09/2017 DD 05/10/12 5,018,750 1.57
5,000,000.00 FEDERAL HOME LN MTG CORP 0.72 0.95 Aaa 100.04 4,994,250 1.62 1.28
3137EADV8 0.950%07/14/2017 DD 05/29/15 5,001,800 1.56
5,000,000.00 FEDERAL HOME LN MTG CORP 0.99 0.05 Aaa 99.97 4,967,500 1.62 1.76
3131EADN6 0.950%O1/12/2018 DD 11/21/12 4,998,250 1.56
5,000,000.00 FEDERAL HOME LN MTG CORP 0.80 0.87 Aes 100.15 4,974,100 1.62 1.91
3137EADPI 0.875%03/07/2018 DD 01/17/13 5,007,450 1.57
7,500,000.00 FEDERAL HOME LN BK CONS BD 0.80 1.36 Aes 101.10 7,544,850 2.46 1.91
31337SA43 1.375%03/09/2018 DO 02/13/12 7,582,350 2.37
5,000,000.00 FEDERAL NATL MTG ASSN 0.89 1.12 Aaa 100.63 4,963,950 1.63 2.65
3135GO092 1,125%12/14/2018 DO 11/03/15 5,031,350 1.57
7,500,000.00 FEDERAL HOME LN BK CONS BD 0.93 1.48 Aaa 101.66 7,589,190 2.47 2.87
3133182M2 1.500%03/08/2019 DO 02/06/12 7,624,200 2.38
5,000,000.00 FEDERAL NATL MTG ASSN 1.02 1.71 Aaa 102.48 5,021,500 1.66 3.35
3135GOZG1 1.950%09/12/2019 DO 09/28/14 5,124,050 1.60
7,500,000.00 FEDERAL HOME LN MTG CORP 1.12 1.24 Aaa 100.43 7,399,650 2.44 3.41
3137EAD618 1.250%10/02/2019 DD 10/02/12 7,532,325 2.35
5,000,000.00 FEDERAL NATL MTG ASSN 1.23 1.48 Aaa 101.10 4,955,650 1.64 4.09
3135GOD75 1.500%06/22/2020 DO 04/27/15 5,055,200 1.58
411912016 4:03:31PM EDT 6 Soa¢e:The Bank ofNcw Pork Meilan Corporad.n
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
0CSF07522202 3/31/2016
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
5,000,000.00 FEDERAL HOME LN BE CONS BD L25 1.72 A. 102.03 5,008,950 1.65 4.04
313383HU8 1950%06/12/2020 DO 06/03/13 5,101,250 1.59
7,500,000.00 FEDERAL NATL MTG ASSN 128 1.49 Asa 101.00 7,370,726 2.46 4.50
3135GOF73 1.500%11/30/2020 DO 10/19/15 7,575,075 2.37
5,365,000.00 FEDERAL HOME LN BK CONS BD 1.37 1.37 Aaa 100.04 5,343,325 1.74 4.73
3130A7CV5 1.375%02/18/2021 DO 02/18/16 5,367,146 1.68
BANKS&FINANCE
5,200,000.00 TOYOTA MOTOR CREDIT CORD 0.55 0.91 Aa3 100.05 5,200,000 1.69 0.13
89236TAK1 VAR RT OS/17/2016 DO OS/17/13 5,202,444 1.63
600,000.00 BANK OF AMERICA NA 1.21 1.04 Al 99.81 600,000 0.19 0.10
06050TLX8 VAR RT 05/08/2017DD05/08/14 598,878 0.19
500,000.00 WELLS FARGO BANK NA 1.22 0.90 Aug 99.61 500,000 0.16 0.20
9498W2L0 VAR RT 06/15/2017 DD 06/12/14 498,070 0.16
5,000,000.00 GENERAL ELECTRIC CO 1.40 2.14 Al 102.94 5,014,950 1.67 3.62
36962G7M0 2.200%Ol/09/2020 DO 0 1/09/15 5,146,800 1.61
5,000,000.00 JOHN DEERE CAPITAL CORP 1.57 2.25 A2 102.44 5,046,984 1.66 3.33
24422ESS9 2.300%09/16/2019 DO 09/15/14 5,122,200 1.60
2,120,000.00 BANK OF NEW YORK MELLON CORP/T 1.59 2.25 Al 102.39 2,142,175 0.70 3.31
06406HCW7 2.300%09/11/2019 DO 09/11/14 2,170,562 0.68
3,000,000.00 HSBC USA INC 1.72 1.63 A2 99.83 3,003,290 0.97 1.75
40428HPH9 1.625%O1/16/2018 DO 12/20/12 2,994,780 0.94
3,200,000.00 BEAR STEARNS COS LLC/THE 1.82 4.38 A3 106.22 3,523,520 1.10 2.13
073902CD8 4.650%07/02/2018 DO 06/25/03 3,399,136 1.06
411912016 4:03:31PM EDT 7 Soa¢ M: E¢Nc.ofNcw Pork Meilan Corporad.n
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
OCSF07522202 3/31/2016
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
600,000.00 GOLDMAN SACHS GROUP INC/THE L84 5.55 A3 109.24 692,806 0.21 1.90
38141GFG4 5A50%01/18/2018 DD 01/18/08 643,434 0,20
3,800,000.00 BANK OF AMERICA CORD 1.91 5.41 Baal 106.26 4,334,014 1.31 1.57
060505DP6 5.750%12/01/2017 DD 12/04/07 4,037,956 1.26
2,900,000.00 AMERICAN EXPRESS CO 1.92 6.38 A3 109.69 3,399,386 1.03 1.86
025816AY5 7.000%03/19/2018 DD 03/19/08 3,180,952 0.99
5,000,000.00 WELLS FARGO&CO 2.03 2.54 A2 102.33 5,001,650 1.66 4.09
94994BOM6 2.600%07/22/2020 DD 07/22/15 5,116,400 1.60
2,000,000.00 JPMORGAN CHASE&CO 2.03 2.23 A3 100.09 1,994,880 0.65 3.64
46625HKA7 2.250%01/23/2020 DD 01/23/15 2,015,820 0.63
1,250,000.00 HSBC USA INC 2.62 2.37 A2 98.98 1,222,788 0.40 3.74
40428HPR7 2.350%03/05/2020 DD 03/05/15 1,237,288 0.39
2,800,000.00 MORGAN STANLEY 2.64 4.82 A3 114.12 3,200,848 1.04 4.64
61749WAL3 5.500%07/28/2021 DD 07/28/11 3,195,472 1.00
600,000.00 ESC LEHMAN BRTH HLD ESCROW - - 7.35 368,852 0.01 -
525ESCIBT 0.000%11/24/2013 DD 01/22/08 44,100 0.01
2,000,000.00 LEHMAN BRTH HLD ESC - - 7.35 1,241,321 0.05 -
525ESCOY6 0.000%12/30/2016 DD 10/24/05 147,000 0.05
CARDS
2,500,000.00 CHASE ISSUANCE TRUST A8 AS 0.88 1.01 Ass 100.09 2,499,121 0.81 0.48
161571GC2 1.010%10/15/2018 DD 10/31/13 2,501,725 0.98
CMS
2,584,623.13 TOYOTA AUTO RECEIVABLES 2 A A3 0.93 0.67 Aaa 99.87 2,579,272 0.84 0.27
892311VIAC9 0.690%12/15/2017 DD 03/19/14 2,581,211 0.81
411912016 4:03:31PM EDT 8 Soa¢ M: BaN ofNcw Pork Mei/an Corporad.n
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
OCSF07522202 3/31/2016
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
2,761,268.83 HONDA AUTO RECEIVABLES 20 1 A3 0.93 0.67 A. 99.88 2,752,856 0.89 0.22
43813JAC9 0.670%11/21/2017 DD 02/27/14 2,758,011 0.86
2,195,000.00 TOYOTA AUTO RECEIVABLES C A2A 0.97 0.92 Aeo 99.98 2,194,824 0.01 0.40
89231TAB6 0.920%02/15/2018 DD 08/26/15 2,194,561 0.69
1,556,850.53 HONDA AUTO RECEIVABLES 202 A3 1.03 0,77 Aaa 99.84 1,555,756 0.50 0.55
43814GAC4 0.990%03/19/2018 DD 05/21/14 1,554,391 0.49
3,595,000.00 TOYOTA AUTO RECEIVABLES 2 A A3 1.05 1.12 Aaa 100.06 3,594,456 1.17 1.25
89236WAC2 1.120%02/15/2019 DD 03/04/15 3,597,229 1.12
2,565,000.00 HONDA AUTO RECEIVABLES 20 1 A2 1M8 1.01 - 99.93 2,564,744 0.83 1.06
43814NABI 1.010%06/18/2018 DD 02/25/16 2,563,205 0.80
EQUIPMENT LOANS
2,420,000.00 JOHN DEERE OWNER TRUST 20 A A3 0.00 1.36 Are 99.91 2,419,619 0.98 -
47788MAC4 1.360%04/15/2020 DO 03/02/16 2,417,895 O.76
4,000,000.00 JOHN DEERE OWNER TRUST 20 B A3 1.15 1.07 Aaa 99.96 4,001,875 1.30 0.51
477877AD6 1.070%11/15/2018 DD 09/03/14 3,998,240 L25
F"ME MAE REMIC
114,603.69 FNMA GTD REMIC P/TOT-114 A6 -19.69 0.40 Aaa 99.56 109,017 0.04 0.15
31396X3Q5 VAR RT 10/27/2037 DO 11/30/07 114,095 0.04
426,845.35 FNMA GTD REMIC P/T 11-3 FA 0.85 1.10 Aaa 100.98 426,712 0.14 0.08
31397QRE0 VAR RT 02/25/2041 DO 01/25/11 431,046 0.13
FHLMC
2,583.88 FHLMC POOL#78-6064 L60 2.69 Aaa 103.41 2,521 0.00 0.80
31348SWZ3 VAR RT 01/01/2028 DD 12/01/97 2,672 0.00
FNMA
411912016 4:03:31PM EDT 9 Soa¢e:The Ba of New York Mei/an Corporad.n
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
OCSF07522202 3/31/2016
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
365,404.85 FNMA POOL#0466397 L63 3.17 Aaa 109.30 357,497 0.13 4.10
31381PDA3 3.400%11/01/2020 DD 11/01/10 392,061 212
38,824.01 FNMA POOL#0826080 1.66 4.52 Aaa 110.68 41,736 0.01 1.90
3140713XN7 5.000%09/01/2035 DD 06/01/05 42,971 0.01
186,487.90 FNMA POOL#0823358 1.67 2.66 Aaa 104.92 185,031 0.06 0.83
31406X 5 VAR RT 02/01/2035DD04/01/05 195,298 0.06
6,021.14 FNMA POOL#0748678 1.81 4.50 Aaa 111.15 6,473 0.00 2.28
31403GXF4 5.000%10/01/2033 DD 10/01/03 6,692 0.00
208,793.70 FNMA POOL#0745580 1.85 4.51 Aaa 110.81 224,453 0.08 2.11
31403WZ3 5.000%06/01/2036 DD 05/01/06 231,358 0.09
217,383.39 FNMA POOL#0357969 1.86 4.52 Asa 110.55 233,687 0.08 1.99
31376XT22 5.000%09/01/2035 DD 09/01/05 240,322 0.08
420,542.62 FNMA POOL#0888336 L90 4.51 Aaa 110.89 452,083 0.15 2.27
3141OF4V4 5.000%07/01/2036 DD 04/01/07 466,239 0.15
388,026.33 FNMA P001,80815991 L92 4.51 Aaa 110.86 417,128 0.14 2.17
31406POY8 5.000%03/01/2035DD03/01/05 430,178 0.13
23,539.18 FNMA POOLNAL0869 L98 4.14 Aaa 108.74 24,895 0.01 2.85
3138EG6F6 4.500%06/01/2029DD09/01/11 25,596 0.01
36,618.92 FNMA POOLdOMA0022 2.01 4.14 Aaa 108.74 38,728 0.01 2.94
3141 TAY3 4.500%04/01/2029DD03/01/09 39,818 0.01
31,525.71 FNMA POOLb025/199 2.03 4.14 Aaa 108.94 33,342 0.01 3.18
31371NUC7 4.500%04/01/2028DD03/01/08 34,280 0.01
FREDDIE MAC MULTICLASS
411912016 4:03:31PM EDT 10 Soa¢e:Me DaNr. fNew York Meilan Corporad.n
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
OCSF07522202 3/31/2016
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
61,958.55 FHLMC MULTICLASS MTG E3 A 0.94 2.92 Aaa 102.84 62,023 0.02 0.67
3133ME95 VAR RT 08/15/2032 DD 12/01/97 63,718 0,02
900,000.00 FHLMC M=CLASS MTG X006 A2 1.50 3.88 NR 109.61 95I,047 0.32 3.43
31398VJ98 4.251%01/25/2020 DD 04/01/10 986,445 0.31
1,074,384.63 FHLMC M=CLASS MTG 58 2A 2.48 5.50 Aaa 118.08 1,215,991 0.41 1.91
31394JY35 6.500%09/25/2043 DD 09/01/03 1,268,601 0.40
ORMA
97,839.72 GNMA II POOL#0080965 0.96 2.05 Aaa 104.10 97,779 0.03 0.47
36225DCB8 VARRT 09/20/2034DD09/01/04 101,853 0.03
27,964.89 GNMA II POOL#0080023 1.14 2.05 Aaa 103.79 28,428 0.01 0.81
36225CA 9 VAR RT 12/20/2026 DO 12/01/96 29,026 omi
31,925.32 GNMA II POOL 4080088M L40 2.09 Aaa 102.79 32,624 0.01 0.39
36225CC20 VAR RT 06/20/2027DD06/01/99 32,810 0.01
11,326.19 GNMA II POOL#0080395 L49 2.08 Aaa 102.61 11,224 0.00 1.12
36225CNM4 VAR RT 04/20/2030DD04/01/00 11,621 0.00
94,678.85 GNMA 11 POOL 4080408X 1.54 2.08 Aaa 102.42 93,917 0.03 0.44
36225CN28 VAR RT 05/20/2030DD05/01/00 96,973 0.03
ORMA REMIC
42,440.20 GNMA GM REMIC P/T 00-9 FH 0.57 0.94 Aaa 100.54 42,440 0.01 0.06
3837H4NX9 VAR RT 02/16/2030 42,670 0.01
HOME EQUITY
3,056.00 SOUNDVIEW HOME LOAN TR OPT3 A4 L14 0.94 - 99.95 2,698 0.00 0.00
83611MOSI VARRT 11/25/2035DD09/30/05 3,055 0.00
411912016 4:03:31PM EDT 11 Soa¢ M: HaNc. fNew York Meilan Corporad.n
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
OCSF07522202 3/31/2016
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
133,743.29 AMRESCO RESIDENTA,SECURI 1 A L90 1.03 - 91.61 100,433 0.04 0.00
03215PFN4 VAR RT 06/25/2029 DO 10/20/99 122,517 0.04
INDUSTRIALS
2,000,000.00 INTEL CORD 0.87 1.34 Al 100.81 2,008,280 0.65 1.68
458140AL4 1.350%12/15/2017 DD 12/11/12 2,016,240 0.63
4,000,000.00 ELI LILLY Is CO 1.16 1.91 A2 102.30 4,009,675 1.33 2.89
532457BF4 1.950%03/15/2019 DO 02/25/14 4,092,000 128
4,000,000.00 CHEVRON CORP 1.21 1.11 Aal 99.83 3,977,200 1.30 1.65
166764AA8 1.104%12/05/2017 DO 12/05/l2 3,993,080 1.25
4,000,000.00 AMERICAN HONDA FINANCE CORD L54 2.20 Al 102.33 4,046,640 1.33 3.24
02665WAH4 2.250%08/15/2019 DD 09/09/14 4,093,240 L28
5,000,000.00 QUALCOMM INC L62 2.19 Al 102.51 4,995,195 1.66 3.93
747525AD5 2.250%05/20/2020 DO 05/20/15 5,125,500 L60
2,000,000.00 OCCIDENTAL PETROLEUM CORD L66 1.50 A3 99.70 1,986,340 0.65 1.84
674599CD5 L500%02/15/2018 DO 06/22/12 1,993,940 0.62
1,515,000.00 EX ON MOBIL CORD L84 2.18 Aaa 101.70 1,515,000 0.50 4.67
30231GAV4 2,222%03/01/2021 DO 03/03/16 1,541,816 0.48
OTHER CMO OOVT AGENCH/S
91,130.06 SBA GTD PARTN CTFS 2001-20C 1 1.32 5.84 Ana 108.48 91,130 0.03 1.66
83162CWO 6.340%03/01/2021 98,856 0.03
479,950.92 NCUA GUARANTEED NOTES TR R2 lA 1.64 1.29 Aaa 99.90 479,949 0.16 0.02
62888UAA8 VARRT 11/06/2017DDll/17/10 479,457 0.15
STUDERT
411912016 4:03:31PM EDT 12 Soa¢ M: BaN of New York Mei/an Corporad.n
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
OCSFO7522202 3/31/2016
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
41,368.00 SLM STUDENT LOAN TRUST 200 9 A 284 2.14 Aaa 98.88 41,200 0.01 0.05
78445JAA5 VAR RT 04/25/2023DD08/28/08 40,906 0,01
SUPRANATIONALS
5,000,000.00 INTERNATIONAL RNANCE CORP 0.99 1.00 Aaa 100.25 5,020,700 1.63 1.05
45950IMS8 1.000%04/24/2017 DD 04/24/12 5,012,350 1.57
5,000,000.00 INTER-AMEMCAN DEVELOPMENT BAN 0.86 1.00 Aea 100.18 5,019,550 1.62 1.29
4581XOCG1 1.000%07/14/2017 DD 04/30/14 5,009,000 1.57
5,000,000.00 INTERNATIONAL BANK FOR RECONST 1.00 1.00 Asa 100.01 4,991,170 1.62 2.17
459058EJ8 1.000%06/15/2018 DD 04/30/15 5,000,250 1.56
TIPS
0.00 US TREAS-CPI INFLAT 122 1.05 Aaa 106.87 0 0.00 3.00
912828PP9 1.125%01/15/2021 DD 01/15/11 0 0.00
10,376,288.00 US TREAS-CPI MN T 1.72 0.12 Aaa 100.34 10,259,004 3.38 5.34
912828W O 0.125%07/15/2024 DD 07/15/14 10,411,982 3.26
TREASURIBS
3,500,000.00 U S TREASURY NOTE 0A0 0.31 Asa 100.00 3,500,340 1.14 0.00
91282SD31 VAR RT 04/30/2016DD04/30/14 3,500,105 1.09
10,000,000.00 U S TREASURY NOTE 0.38 0.50 Aaa 100.05 9,998,047 3.24 0.42
91282SD64 0.500%08/31/2016 DD 08/31/14 10,004,900 3.13
11,000,000.00 U S TREASURY NOTE 0.51 0.50 Ass 100.00 10,974,972 3.57 0.66
912828G46 0.500%11/30/2016 DD 11/30/14 10,999,560 3.44
7,500,000.00 U S TREASURY NOTE 0.65 0.87 Aaa 100.24 7,500,611 2.44 1.09
912828SS0 0.895%04/30/2017 DD 04/30/12 7,517,850 2.35
411912016 4:03:31PM EDT 13 Soa¢e:The BaN of New York Mei/an Corporad.n
Yield Analysis Report ID: RAM234
Base Curteacy: UM)
BNY MELLON
OCSF07522202 3/31/2016
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
10,000,000.00 U S TREASURY NOTE 052 0.89 Aaa 100.25 9,948,784 3.25 1.61
91282SG20 0.875%11/15/2017 DO 11/15/14 10,025,000 3.13
11,000,000.00 U S TREASURY NOTE 0.85 1.47 Aaa 101.81 11,042,439 3.63 2.77
91282SB33 1.500%01/31/2019 DO 01/31/14 11,198,990 3.50
10,000,000.00 U S TREASURY NOTE 0.93 1.59 Aaa 102.23 9,984,307 3.32 3.16
912828W55 1.625%06/30/2019 DO 06/30/14 10,223,100 3.20
10,000,000.00 U S TREASURY NOTE 0.96 1.59 Asa 102.19 10,024,779 3.31 3.25
912828WW6 1.625%07/31/2019 DO 07/31/14 10,218,800 3.19
5,800,000.00 USTREASURY NOTE 0.99 1.91 Asa 102.60 5,873,187 1.93 3.41
912828F39 1.750%09/30/2019 DO 09/30/14 5,950,684 1.86
7,500,000.00 U S TREASURY NOTE L03 1.48 Aaa 101.68 7,449,635 2.47 3.56
912828061 1.500%11/30/2019 DO 11/30/14 7,626,000 2.38
5,500,000.00 USTREASURY NOTE L19 1.36 Aaa 100.80 5,424,667 1.80 4.43
9128281,99 1.375%10/31/2020 DO 10/31/15 5,544,055 1.73
1,500,000.00 U S TREASURY NOTE L22 1.37 Aaa 100.92 1,491,626 0.49 4.69
912828N89 1.375%01/31/2021 DO 0 1/31/16 1,510,785 0.47
US TAXABLE MUM BONDS
2,440,000.00 PORT A=OF NEW YORK&NEW JE 1.31 4.65 Aa3 114.28 2,507,634 0.90 3.34
73358WAG9 5.309%12/01/2019 DO 07/01/09 2,788,310 0.87
1,400,000.00 NEW YORK CITY NY TRANSITIONAL 1.90 3.92 Aal 109.50 1,400,000 0.50 4.16
64971M5E8 4.075%11/01/2020 DO 11/03/10 1,533,014 0.48
400,000.00 UNIV OF CALIFORNIA CA ROTS RED 2.21 4.43 Aaa 113.58 400,000 0.15 4.52
913366EJ5 5.035%05/15/2021 DO 11/18/10 454,336 0.14
411912016 4:03:31PM EDT 14 Soa¢e:Me DaNc.ofNcw Pork Meilan Corporad.n
Yield Analysis Report ID: RAM234
Base Curteacy: USD
BNY MELLON
OCSF07522202 3/31/2016
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
TOTAL:F=D INCOME 1.07 1.53 305,975,742 100.00 2.44
307,368,550
TOTAL:Long Term OPer-Pimco 1.07 1.52 319,593,620 100.00 2.36
319,878,459
411912016 4:03:31PM EDT 15 Source:The BaN of New York McOan Corporad.n
Yield Analysis Report ID: NAM234
Base currency:
BNY MELLON
OCSF07555502 3/31/2016
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 o(Acmuni Receivables - 0.00
SUMRECV 0
TOTAL:CASH 3:TEMPORARY 0.00 0.00 300.00
0
FIXED INCOME
TREASURIES
3,594,000.00 U S TREASURY NOTE - Aaa 3,603,596 100.00 -
9I2828SK7 0.375%03/15/2015 DD 03/15/12 3,594,000 100.00
TOTAL:FLED INCOME 0.00 0.00 3,603,596 300.00
3,594,000
TOTAL:O.C.S. Escrow Account 0.00 0.00 3,603,596 100.00
3,594,000
411912016 4:03:31PM EDT 16 Source:Ma DaNc. fNew York McMm Communion
�401 Asset Detail
BNY MELLON Acct Base Currency Code: USD
OCSD-CONSOLIDATED-OCSG00010000 As Of Date : 3/31/2016 Accounting Status: FINAL
rr Mellon Security Local Unrealized Net Unrealized
ID Security Description Shares/Par Base Price Base Cost Base Mark rc Market Value Peent of Total GainlLoss Gain/Loss Base
Grand Total 385,977,620.52 387,261,958.57 100.00 1,284.338.05
CASH S CASH EQUIVALENTS 32,803,146.67 32,727,118.30 8.45 -76,028.37
U.S.DOLLAR 32,803,146.67 32,727,118.30 8.45 -76,028.37 -76,028.37
%538BF01 BANK TOKYOMITSUB DISC fi&OISM16 6,370000.000 99]] 6.355.260.53 8.355.260.53 161 OW 0,00
%538BF01 BANK TOKYOFMITSUB DISC NW0016 1,275,003.W3 99]] 1,2]2,049]9 1,2]2049]9 0.33 0W 0%
313312YJ3 FEDERAL FARM OR BK CONS SYSTEM 0000%06I200C, 1,0]5,000.ON) 99.]0 1071811,13 1,071011,13 028 0NO 000
3133UWW FEDERAL HOME LN BK CONS DOSS N MAT M&MV2016 2,000,000.003 99.90 1,998,00306 1,995,003.06 0.62 000 000
313384XJ3 FEDERAL HOME LN BK CONS DISC N MAT 06SOSM16 2000,000.000 98.80 1,998,043.50 1,898,043.50 0.52 0.00 000
3133MYFO FEDERAL HOME LN BKS CONS DISC MAT DWI712016 985,0010D) 9972 982.22394 982.223.94 _0.25 Dw 000
313384YN3 FEDERAL HOME LN BK CONS DISC MAT 06I2M2016 4,000.00.000 9971 3,988.331.11 3,988.W1.11 1.03 0.00 000
313384ZG7 FEDERAL HOME LN BK CONS DISC MAT 07IIM016 1,404000.00) 99.90 1.39853000 1,398.530.00 035 O60 000
313358XU2 FEDERAL HOME LN MTG CORP DISC MAT 06N612016 2,000000.OW 99.90 i'MME01000 1.998.M0.00 052 0SO 000
69233GFP6 TOYOTA MTR OR CP DISC 0612312016 1,200,00V.fiW 9980 1197,600.00 1,197,64000 031 OW 000
996085247 DREYFUS TREAS&AGY CSH CSH MG VAR FIT 12C1120.. 7,157,805120 100.00 /,157,W5d2 ],15],805.12 185 0SO 000
996085247 DREYFUS TREAS&AGY CSH CSH MG VAR FIT 126112e. 6,704,473.&M 100.00 6j04,473.36 6,]M,4]3.36 1.73 Dw 000
99WAEU30 SLH PROXY LONG EXPOSURE SLHOPNTA4 68,128.ib 042 104,81250 M8:7-13 0.01 -]60283] 1A028.37
CASH _ O.CW 1.00 -2.002,133.33 -2,0Se 133.33 -0.52 0.00 000
RECEIVABLE FOR INVESTMENTS SOLD _ 0.000 1.00 17.52 17.52 0.00 0.00 000
INTEREST RECEIVABLE OOW 1.00 107.995.18 i 7WE 18 OLDS 0SO 000
INTEREST RECEIVABLE 0000 1,00 970,17451 970,17451 025 0SO 0%
PAYABLE FOR INVESTMENTS PURCHASED OOW 1.00 -2,4%,93125 2,49093125 4)65 0NO 0%
FIXED INCOME SECURITIES 353,174,473.85 354,534,840.27 91.55 1,360,366.42
U.S.DOLLAR 353,174,473.85 354,534,840.27 91.55 1,360,366.42 1,360,366.42
025818AY5 AMERICAN EXPRESS CO7.00V%0311MO18 Do 03119108 2,900,000.000 109,69 3,37.385.79 3,180.952.00 0.82 196,43379 195,433.79
02665WAB7 AMERICAN HONDA FINANCE CORP 1125%1M072016.. 1,000,000000 100,21 1.W1.6000 1,002.13100 0.26 470,00 47000
02665WAH4 AMERICAN HONDA FINANCE CORP 2250%081152019„ 4,000,000.OW 10233 4,046.610.00 4,093,240.00 1W 46,600.W 46,WOW
03215PFN4 AMRESCO RESIDENTIAL SECURI t A VAR PIT OV29202, 1337432W 9161 100g.,85 12'61686 0.03 22,081 22,054.03
M0605DM BANK OF AMERICA CORP 5.750%IM12017 Do 12104N7 3,800,000.0W 10626 4,AWSURO 4,03],965.W IIN -296,058.W -295.058.00
W050TLX8 BANK OF AMERICA NA VAR RT O&O201]DD OMW14 600,000.0W 98.81 6W,W000 590,8]B.W 0.15 -1,122.00 -1.122.00
06406HBX6 BANK OF NEW YORK MELLON CORPR 2.300%072&20.. 1,000,800.0W 100.52 1,009,760.00 106,1]O.W 0.28 35W.W -3,590.00
06406HCW7 BANK OF NEW YORK MELLON CORPR 2.300%09M 1CO., 2d20,000.0W 102.39 2.142.17520 2,1]0.582.On 0.56 28,388.80 28.38680
073902C08 BEAR STEARNS COS LLCRHE 4.650%WN212018 Do 06.. 3,200,000000 106.22 3.523.52000 3,399,136.00 0.88 -124,38400 -024,384.00
084670BB3 BERKSHIRE HATHAWAY INC 2200%OM152016 DD SAM 1,000,000000 100,57 1,014.17000 1,005.740.00 0.26 d.430.OR -843000
161571GC2 CHASE ISSUANCE TRUST AB A31010%1011512018 DD. SPUR FILM OW 10007 2,4W.121 US 2501,725Fe 0.65 2,603.W 2,60390
166764MB CHEVRON CORP 1104%lM52017 DO 1WOSM2 4,OOD000 OW 9963 3,9P,2W.00 399360re 1.0 15,880.00 15,BSOW
191216AU4 COCA COLA CO?HE 1800%09MO016 Do 08110111 1000,000.000 10043 1,006,450,00 1,004,27OW Dm -218SM -2180.00
21684BPVO COOPERATIEVE CENTRAL INSTL CID 0]16%051DRO01.. 1,000 000 000 100.03 BW,&TO.W 1,000,260.00 0.26 430.00 43000
24422ESD2 JOHN DEERE CAPITAL CORP 1.050%10I1112016 DD 101. 1,000 000 000 10013 1,001.07000 1,001,30000 0.26 230.00 23000
24422ESS9 JOHN DESIRE CAPITAL CORP 2.300%0911 W2019 DD M. 5.000,000.000 10244 5.046.9MIDD 5.122.20.0 1.32 75,216.00 75.21800
30231GAV4 EXXON MOBIL CORP2222%03N12021 Do 0393I18 1.515,000000 101]] 1,515.0)O.W 1,541,81550 040 26,81550 26,815.50
313OA7CVS FEDERAL HOME LN BK CONS 501,375%02MI2021 Do,. 0365000000 100. 5,343.32540 5,367.M6.00 1.39 23,820W 23,82060
3133782M2 FEDERAL HOME LN BK CONS So 1,500%03I082019 DO.. 7,500 000 000 101.. 7,589.190.00 7,624,200.00 197 35,010W 35,01000
31337MO FEDERAL HOME LN BK CONS So 1,375%OL0820100o- 7,600 000 000 101,10 7,544,853,00 7,582,350.00 1.95 37,5000 3;W000
313379FW4 FEDERAL HOME LN BK CONS BD 1.000%060812017 DD.. 5,000,000.Sao 100,38 5,025,100.00 5,018j5100 1.30 -6,3W.00 -635S 00
ReP�a TimnmmP:Tue Ap 19 201812:53%PM
Page 1 of 4
Asset Detail
BNY MELLON Acct Base Currency Code: USD
OCSD-CONSOLIDATED-OCSG00010000 As Of Date : 3/31/2016 Accounting Status: FINAL
Ir-
-A
Mellon Security Local Unreallutl Net Unrealized
ID Security Description Shares/Par Base Price Base Cost Base Market Value Percent of Total GainlLoss Gain/Loss Base
3133WHU0 FEDERAL HOME LN BR CONS BO 1760%WID2020 D0_ 5p00000000 10203 $.00a950 D0 5,101,2509D 132 111 GO 9230000
3133TCE95 FHLMC MULTICLABS MTG E3 AVAR RT 081192032 DD.. 61,956550 102.84 62,023.35 63,]18.1] 0.02 1,694.82 1,1ON D2
31U8S Z3 FHLMC POOL N1841064 VAR RT OW12028 DD 12/0197 2,503880 10341 2,52092 2,67207 0.00 161.15 15115
3135GOD75 FEDERAL NATL MTG ASSN 1,500%O6GG 20 DD W/P/., 5,00000000 101.10 4.255,650.00 5.0552W.W 1.31 99,550.0 W.55000
3135GOESB FEDERAL NATL MTG ASSN 1.375%111152016 DD 10/20/., 4,000,00000 100,53 4.M.290.00 4,021.120.W 1.M -23.08100 -23,080.00
3135GOF73 FEDERAL NATL MTG ASSN 1.500%11/30Y2020 DD 10/19/_ 7,500,0006W 101,00 7,370.72600 ],5]5.07500 196 204,349 OD 2W.M900
3135GOG72 FEDERAL NATL MTG ASSN 1125%1T/14GO18 DD 11ADW 50000000W 10063 4,963.95000 5,031.35100 1.30 67.400.00 61.40000
3135GOZG1 FEDERAL NATL MTG ASSN I750%09HZ/2019 DO W2&_ Dos or0OW 10248 B."F000O 5,124,135100 132 1.2,0.DO ID2,55000
313]1NUC] ENNA POOL W2571794500%O"OSI28 Do 03101108 31,525710 108.74 33,.1.53 34,zaTTI 0.01 930.53 93658
31376KT22 ENMA POOL W3579c 5.003%ORMIGW5 Do 0& 1I05 217,383.390 110.56 233,687.15 240,nI.69 ON 6,634.54 6,634.54
313]E\DM8 FEDERAL HOME LN MTG CORP 1.250%10/092019 DO 1.. 7,500,000.000 10043 7,39965000 7,532,32&DO 1.0 132,6I5.0) 132,67500
3137EADN6 FEDERAL HOME LN MTG CORP 0.750%01/12Y2018 DO 1.. 5,000.000.000 9997 4.967,50000 4,996,250.00 1.29 30,750.00 3075000
3137EI,DP1 FEDERAL HOME LN MTG CORP 0.875%OW7GOI8 DO 0. 5,000.000.000 100,15 4.974.10000 5,007.450.00 1.29 _33,350.W 33.35000
3137EADUO FEDERAL HOME LN MTG CORP 0,500%01YPY209 DD 0. 5,000,000000 99,89 4,991,05000 4,994.450.00 1.29 GAGGED 3,.0.DO
3137EADV8 FEDERAL HOME LN MTG CORP O]50%0711412017 DD O., 4000.000,000 10004 4,991.25000 5.001.000.00 1.H 7.550.00 7,55003
31381PDM ENMA POOL 014663913400%111012020 DO 11101110 365,4048W 107.30 357,49727 392,061.13 0.10 34563 AS 34.55386
3138EG6F6 ENMA P001000L08694.500%"1/20290D09N1/11 23,53EIN 108.74 24,89500 25,695.80 GOBI 78020 90080
31394JY35 FHLMC MULTICLA88 MTG 582A6.500%FSG61043 DD- 1,074,384.630 11808 1,215,WO,70 1,260,601.14 0.3t 62,610.44 52,61044
31396MM ENMA GTD REMIC PIT 07-114 A6 VAR RT lV2]I203]DD.. 114,603.691 99.56 109,016.]] 114,094.05 093 6,0]0.00 5,07808
31397OREO ENMA GTD REMIC PR 113 FA VAR RT OZQSS041 DD 0., 426.845.350 10098 426.71197 431,M5.51 0.11 4,333.54 4,333.54
31398VJN FHLMC MULTICL185 MTG KOOK AS 4.251%01GS2029 D.. 900.000.000 109,61 951.04oss 9W.445.00 0.2E 35,396.12 35.398,12
31403DJ23 FNMA POOL*07455895W0%0&0120W Do 05101106 208.)93]00 110,81 224.45323 231.3510' O.W 6.9"al 6.W4.81
31403GXF4 FNMA POOL Jq]488]85.W3%1DN12033 Do 10101103 6,021.10) 111,15 6.4]3]3 6.W232 O.W 219W 21959
31406POY8 FNMA POOLY0816W15W3%0OMWO35DDOSO1105 380626330 110,86 411128.31 430,1RW 0.11 13,04932 13,W932
314OSSVT6 ENMA PGOLare23359 VAR RT 0201MN5 Do NIOII06 186,40].9W 104.72 185,03097 195,29].59 0.0 10,266.62 10,M662
3140]BXH] ENMA POOLk06260W 5.WO%0]N1/2W5 Do 06101105 38,824.010 11068 41,73580 42,9]O.W 0.01 1,235.00 123500
3141OF4V4 ENMA POOL1b9883365.W3%37101GOW DD M101107 420542.620 110.87 452,083.32 466,238]8 0.12 14,10.46 14,15546
3141NAY3 FNMA POOLMMA00224.5W%0901O29 Do 03101109 36.618.920 108.74 W.]2898 39.818.32 0.01 1.090.24 1.0024
36225CPZ9 GNMA II PCOLpW8W23 VAR RT iL2lY20280D iLM58 2].9M.890 103,79 28.42808 29.025.W 0.01 597.54 597.54
36225CC20 GNMA II POOL WROOS8M VAR RT 06202027 DD 06101197 31,9253W 103]9 32.62369 3281131 0.01 193.82 19362
36225cN20 GNMA II POOL N08MOBX VAR RT 0512012OW DO OW100 94,67685O 102.42 93.]1].28 98,972.92 0.03 3,25584 3,25564
36225CNM4 GNMA II POOL W080395 VAR RT XGDG030 DO 04101M 11326A. 10261 11223.52 11,62146 0W 39794 39791
36226DCB8 GNMA II POOL W08MS VAR RT 07O000M DO 37ADIA4 III,839.M0 1Md0 97,T8.58 101,863.11 0.03 4,074.53 4,074,53
M962GM GENERAL ELECTRIC SO 1.500%07/1=016 DO 07/12/13 1.000,000.0W 10027 1,007,29000 1,002,70103 0.26 -0,590.0 1590.00
W962G7MO GENERAL ELECTRIC CO2.00%01/W/2020 DD 01109/15 5,000,000.0W _102.94 5,014,95000 5,146,8W.W 1.33 131,850.00 131.850.00
W141GFG4 GOLDMAN SACHS GROUP INCTHE 5.950%011113GO18.. 600,000OW 107.24 692.W6.00 643.434.00 1 0.17 49.3720 49,372.00
W37114NX9 GNMA GTD REMIC PR 00-9 FH VAR RT OV1&2030 42.N0200 100.54 42.44020 42.67023 0.01 230.U3 23003
4M26HPH9 HSSC USA INC 1625%0111612018 DO 1220I12 3000.00OOW 99,83 3,003.290.DO 2,994,78POO OT $510 ED -6510 DO
4M20HPR7 HEBC USA INC 2350%0310512020 DO ONOL15 1,250,000OW 9698 1,22218]50 1,237,287,50 0.32 14500.W 1450000
4381MACO HONDA AUTO RECEIVABLES 201 A30670%110112017_ 2,]61,21G 8. 99,88 2,752,85560 2,755,01053 071 5154.93 5,151.93
43814GAC4 HONDA AUTO RECEIVABLES 202 AS O.T0%ON1912018- 1,556 860 530 9884 1,E55,I5588 1,564,390.71 0.40 _-1,365.11 1.36617
43814NABI HONDAAUTO RECEIVABLES 201 A21.010%06118GO18- 2,565000.OW 9993 2,564I4376 2,553,204.50 ON -1,53926 -1539.26
458MDA-4 INTEL CORP 1.350%1L15Y2017 DD 1011/12 2,000,00OOW 100,81 2,0G28000 2,016,240.00 0.52 7,96100 7.96000
4581XOCG1 INTER-AMERIOANDEVELOPMENTBANI.WD%0711M20.. 5,000,000.00 100,18 5.019.550.00 S.OW.CN.W 1.29 -10.550.00 10,550.00
4581XOCJ5 INTER-AMERICAN DEVELOPMENT BAN 0625%08I12GO- 2.500,0006W 10001 2.499.15000 25W.22aOO 0.0 _1,07500 1.07500
Root TLn NI T,Q Ap 19201612:53:05 PM
Page 2 of 4
Asset Detail
BNY MELLON Acct Base Currency Code: LISD
OCSD-CONSOLIDATED-OCSG00010000 As Of Date : 3/31/2016 Accounting Status: FINAL
r
Mellon Security Local Unrealized Net Unrealimcl
ID Security Description Shares/Par Base Price Base Cost Base Market Value Percent of Total GainlLoss Gain/Loss Base
459059851 INTERNATIONAL BANK FOR RECONST I 000%09I15120. 21500 D00000 ID0.3d 2,5D5225 00 2,6m,600.03 065 237500 2,3]500
459050EJ8 INTERNATIONAL BANK FOR RECONST I.000%06115@0.. 5,001 10001 4,991,1]000 6,000,250.03 IN 900000 91080.00
4595OKBSS INTERNATIONAL FINANCE CORP I.000%04I24CO17 DD.. 5,000 000 000 10025 5,020,700.DO 6,012,353.03 IN 4,3m DO -8.350.00
4595OVCJ3 INTERNATIONAL FINANCE CORP 0.5W%Sall M016 DD, Z500,000.000 10000 2.4%,750.00 2A99,875.SO 0.65 1,125.00 1.12500
46623EJY6 JPMORGUI CHASE&CO 135M OVI 5/2017 DD 02/18,14 1,000 000 000 _100.22 1.000.47O.DO 1,002.200.00 0.28 1.730.00 1.730OD
4681 JPMORI CHASE&Do 225M 01/2312020 DD 01/23/15 2.000,000 OLD 10079 1.9 .880.DO S,015.820.00 0.52 20.91000 20.91000
4]]8]]AW JOHN DEERE OWNER TRUST 20 B A31070%111151201. 40000000. 99,96 4,00187500 39%,240,W 103 -3F.. -3,63500
4]]881MAC4 JOHN DEERE OWNER TRUST 20 A Al 1360%041151202. 2,420,00000T 9991 2,419,61909 2111,894.60 0.62 -1,72649 -1j2449
525ESWY6 LEHMAN BRTH HLD ESC000O%1Z 12016 DO 10124105 2,000,D000W 7.35 1141J21 i0 147,00103 004 -1,09432110 U,OVT2110
625ESCIB7 ESC LEHMAN BRTH HUD ESCROW0.030%11I24,2013 D.. 600,000OW 7.35 ANE's1.54 44,100.03 0.01 -324,I61.84 J24,951.84
531 ELI LILLY&001850%0311512019DD02/2614 4,000,OOOOW 10230 4,009,67500 4,092,000.00 IN 82,325.00 82,32500
6174IWPll MORGAN STANLEY 5.500%07/2812021 DD 07CAM 1 2,800,000.000 114,12 3100,84800 3.195,472.00 0.83 -5,376.00 -5,376.00
82888IJAM NCUA GUARANTEED NOTES TR R2 IA VAR RT 11106120., 479,950920 9990 479.94874 4I9A56.57 0.12 49217 -092.17
64971MI NEW YORK CITY NY TRANSITIONAL 4075%11N1I2020. 1.400,000060 109,50 1.400.00000 1.533%4.00 0.40 133,01400 133.01400
374599CD5 OCCIDENTAL PETROLEUM CORP 1,500%02115I2018 DD., 2.000,000060 9970 1988340DO 1,993,w SO 0.51 7,60000 7,6000O
73350WAG9 PORT AUDI OF NEW VOW(&NEW JE 5.30RA DRI1201- 2,HO,000OBO 114.28 2507,63389 2,780,310.00 0.72 280,676A1 280,61511
]4]525AD5 QUALCOMM INC 2250%0512012020 DD 0120115 5,000,01 10251 4,995,19540 6,125,600.W 132 130,304 DO 1ODDD460
7W6.AA5 SUM STUDENT LOAN TRUST 200 9 A VAR RT O4J26CO2.. 41,368.000 9888 41,200,17 40,905.51 0.01 -29466 2.DO
V162CLJO SBA GTD PARTN CTFS 2001-20C 16.340%0310112021 91,130.060 10848 91,130.06 98,856.07 0.03 7,726.01 7,726.01
81611MG51 SOUNDVIEWHOMELOANTROPT3A4VARRT 11CMO.. _ 3,056.000 99.95 2,697.88 3,054.56 _am 356.63 35668
89231MAC9 TOYOTA AUTO RECEIVABLES 2 AA308]0%12/151201]., 2,504,623130 99,87 2,579.272,15 2.581.211.43 0.67 1,939.28 1,93928
89231TAM TOYOTA AUTO RECEIVABLES C A2A0920%02/152018., 2195,000000 99.98 2.194823.52 2.194.56100 057 -26252 -262.52
89236TAK1 TOYOTA MOTOR CREDIT CORP VAR RT 051912016DD. 5200.000OW 100,05 520K000 DO 5202.4 ,OO 134 2.44400 2,444.DO
89236WAC2 TOYOTA AUTO RECEIVABLES 2 A A31 A 20%0&1 SCOW- 31595,000060 10006 3,W4,45544 3,59],220.%i 093 2]]246 2,12.
V159HHB9 US BANCORP 2.2DO%1 Ill DOW 6 Do I IMN11 1,000,000000 10085 1,009,90000 1,OOBpEO.W 0.26 -ip4000 4440.DO
912828BM U S TREASURY NOTE 1.503%011312019 DD 01/31/14 11,000,0000L0 10181 11,042,439.19 11,1%,WO.W 2.89 156,550.81 156,55O81
91282SD31 U S TREASURY NOTE VAR RT 04COCO16 DD 04I30I14 3,500,000.000 10000 3,SW,34041 3,500,1%.SO 0.% -211,41 13111
912828D84 UBTREASURY NOTE 0.5W%OBI3112018 DD 08131/14 10.000,000000 10005 9.998.0468] 10.004.9W.W 2.59 6.053.13 8.853.13
912828F39 U S TREASURY NOTE 1.750%0903012019 DD 09130114 5,800,00000 10260 5,873.186,87 5.950.684.W 454 ]]A97.13 ]],497,13
A2828G20 U S TREASURY NOTE 0.876%fl/15201]DD 1 V1 W14 10000,000 LOD 10025 9,940.]83.50 10.025.CW.W 2.59 76,21650 76,216.50
912828G19 U S TREASURY NOTE 011113012016 DD 11130114 111000,000 OD, 100.00 10,97T9]1]4 10,999560.00 2SO 24,58826 24,58E 26
91282BG61 U S TREASURY NOTE 1503%1113012019 DD 11130114 7,50D,D000. 10168 7,449,631.50 7,626W3.03 1.97 17636550 176,36550
91282899 U S TREASURY NOTE 1.375%1013RJO0 DD 1 W3111 5 5,500,DOLL. 10080 6,424,66DI37 6,544,055.03 1.43 119,388.13 119388.13
912820N89 U S TREASURY NOTE 1.375%0113112021 DD 01/31/16 1,500,000.ODD 10072 1,491,626.12 1,510,]&5.N 0.39 19,1mas 19,15888
91282SOP8 U S TREASURY NOTE 1.750%OSOHC016 DD 0&31/11 4,000 000 000 10024 4,02S.&L 53 4,009,480.00 1.N -19.361.53 -19,361.53
912828RJ1 U S TREASURY NOTE 1.000%090302018 DD 09/30/11 2.000,000.000 10028 2.005.78795 2.005.620.00 0.52 -167.95 -161.95
91281 U S TREASURY NOTE 0375%015 DO 03115112 3594000000 10000 3,603.596.33 3.594.003,00 093 9596.33 9,596.33
912828SSO U S TREASURY NOTE 0.875%04I302017 DD N/30112 TWO 000 ROD 10024 7,500.61106 ].51].850.00 TOO 17,23094 17,238.
912828VG2 USTREASURY NOTE TMI 0611WO16 DD 06115/13 14,000000000 10005 14,13140 14,008,300.00 182 4,69060 4,6906O
912828VL1 U S TREASURY NOTE 0.625%0711612016 DD 07115113 31000,DUO 0. 10008 2 MI,.13D 3,002,31 0.70 2,]98 0 2,798.90
912820VW7' U S TREASURY NOTE 0.075%OWlMG16 DD 09115113 3,000 000 000 10020 3,003,96005 3,006,ADS.W _ 0.70 2,01 2,08995
912828WS6 U S TREASURY NOTE 1.625%OMM019 DD 06130114 10,000 000 000 102.23 9,884,30220 10,223,100.00 2.64 238,782.80 230,99280
912829WUC US TREAS-CPI INFIAT Od 25%07/1512024 DD 07/15/14 10,376 288 000 100,34 10,259.0389 10p11,982.43 2.69 152,97854 152.978,N
912828MO U S TREASURY NOTE 1.625%O7Sla U9 DD 07/31114 10.000,000.000 102,19 10.024.77,40 10,218.8W.W 2N 191022.60 194.02280
9133WEJS UNIV OF CALIFORNIA CA NETS MED 505%05MMO21.. 400,000000 113,58 400,00000 454.336W 0.12 54,33600 5T33600
Re�11Tlrtasdmp:I.Ap 19 Is Vs OS PM
Page 3 of 4
Asset Detail
BNY MELLON Acct Base Currency Code: USD
OCSD-CONSOLIDATED-OCSG00010000 As Of Date : 3/31/2016 Accounting Status: FINAL
r
Mellon Security Local Unrealized Net Unrealimcl
ID Security Description Shares/Par Base Price Base Cost Base Market Value Percent of Total GainlLoss Gain/Loss Base
90976BFL9 WELLS FARGO A CO 1260%07l20/2016 DO 07MI3 t,000,0000W 10018 1,0016]000 t001,T/000 026 -Ir,11 -lrprp
9<97413GM6 WELLS FARGO&CO 2.600%071=2020 DO 07/2N15 5,000,000000 102.33 5,001,650.00 5,116,40000 1,32 11C,M000 114 750 00
949881210 WELLS FARGO BANK NA VAR FT O&IM017 DO OBIT NIL 500,00000 9961 5W,W000 498,07000 0.13 1,930" -1"20l`G
ft0ft Ti—n mETue Ap19M1612S305PM
Page 4 Of 4
Transaction Report
BNY MELLON
OCSD-CONSOLIDATED-OCSG00010000
,m Contract
Effective Trade Data Base Investment Base Investment Settle Base
Date Settle Shares)Par Amount Amount Base Gain/Loss Amount
Date
GRAND TOTAL -5,095,752.83 230,713.05 54,639.83 -2,596,620.35
CORPORATE ACTIONS 17,766.09 .19,766.09 0.00 17,766.09
17,766.09 -17,766.09 0.00 17,766.09
U.S.DOLLAR 17,766.09 -17,766.09 0.00 17,766.09
525ESCIB7 ESC LEHMAN RUH HIM ESCROW 0000%11/2412013 DO 01Y12/O8 =112016 4112016 care 000 5,111 C6 4,11106 000
525ESCOY6 LEHMAN BIRTH HUD ESC 0000%1 213 012 016 DD 10/24105 W3112016 N3112016 raw 0.00 -13,65503 -13,65603 000
525ESCHR LIQUIDATION ESC LEHMAN BIRTH HLD ESCROW - 16 OOW 4,111.06 0.00 4,111.06 4,11106
52MSCOYS LIQUIDATION LEHMAN BRTH HLD ESC 3131/2018 0000 13.655.03 O.W 13.68503 13,65503
MATURITIES 10,990,735.84 -10,937,633.84 53,102.00 10,990,135.84
CASH 8 CASH EQUIVALENTS _ 6,990,735.84 -6,990,735.84 0.00 6,990,735.84
U.S.DOLLAR 6,990,735.84 H6,990,135.84 0.00 6,00.735.84
21637ACA9 COOPERAT CENT DISC 0311012016 311012016 31100016 -1000000.OW 998,754.17 -998,754.17 000 998.754.17
313SMUW7 FEDERAL HOME UN BK CONS DISC MAT 03QRG016 3QW2016 MM016 -1000,000.000 2,996,380.00 2996.380.00 000 2.996,380.00
89233GCM6 TOYOTA MTR OR CP DISC OW2112016 312112016 W2112016 -3,000,000000 2,995,601.67 2,995,60187 000 2.935,60187
FIXED INCOME SECURITIES 4,000,000.00 -3.946,898.00 S3,102.00 4,000,000.00
U.S.DOLLAR 4,000,000.00 -3,946,898.00 0.102.00 4,000.000.00
38141GEG5 GOLDMAN MOOS GROUP INC/IHE VAR RT 03GV2016 DO O122/06 W22GO16 N221R016 2,000,OCOOW 2,000,CW.W -1,895,068.00 104,93300 2,W0,W000
43TOTBAP] HOME DEPOT INO?HE 6400%OM112016 DD 031Z405 31112016 311I2016 -t,000,000.00o 1,000.00000 -1,032,590.00 32,59000 1,000000.00
857477AHB STATE STREET CORP3875%0=712016 DO 0WT/11 NY2016 3RI2016 -laaaa0.000 1,000.00000 -1,019.240.00 19.24000 1.000,000.00
PRINCIPAL PAYMENTS 860,100.43 -858,772.79 1,310.16 860,082.91
FIXED INCOME SECURITIES 860,100.43 -858,772.79 1,310.16 860,082.91
U.S.DOLLAR 860,100.43 -058,772.79 1,310.16 860,082.91
31348SWZ3 FHLMC POOL#78a064VARRT 010ffi028DDIZAHA] V112016 21112016 -17.480 17A8 0.00 0.00 1748
3130SWM FHLMC POOL#766064VARRT 0lA[lG028DD1=lN7 W112016 31112016 -17,520 17.52 -17.09 043 0.00
3133TCE95 FHLMCMULTIC-ASSMTGE3AVARRT O&1M032D040119T WO016 2112016 -1,859.850 1,059.05 -1.861.80 -195 1,859.85
31371NUC7 FNMA POOL#02571794,500%OK1=8 DO UNDI 6 3111mle 31112016 -273750 27375 38952 -1577 27375
31376KM FNMA POOL#015.000%09/OV2035 DO QUTA5 W1/2016 3I112016 -10,052.010 10,052.01 -10180591 _ -75390 10,05201
31361PDA3 FNMA POOL#0403973400%e11/0V2020 DID 11N1/10 311/2016 31112016 41.GL0 RI GRI. 14,76 GQre
31403DJZ3 FNMA POOL#0T455805000%ON01/2036 DO 0ENDIM T1/2016 31112016 4,865]90 4,855.79 £,219.97 _ 3641e 4.85579
31403GXF4 FNMA POOL#0T486T85000%IOM11033 DO 100103 V1/2016 W112016 -26270 26.27 -28.24 -197 26.27
314MMY8 FNMA POOL#08159715.000%0WIM35 DO 03A0105 W1/2016 31112016 -5,169170 5169.2T 5,GS3.97 387]0 5,169.27
31406XWT5 FNMA POOL#0823358 VAR RT OW112035 DO 04105 W112016 31112016 -686SW 684.56 -679.21 5.35 6M 56
31401 FNMA POOL#GBR0805000%WN1G035 DO 06ALM W1/2016 31112016 1,497.70 1,497]4 -1.610.W -112.33 1.49774
3141OF4V4 FNMA POOL#08883385000%OTAOQ035 DO WNINT 311COLK, 31112016 -7,241730 T,24173 -T.]Q486 513,13 7,24173
3130EG6F6 FNMA POOLWAL06694,SW%O6N12029DDOW1111 311,2016 31112016 457510 457.51 4". -26.35 41711
3141TYAY3 FNMA POOL#OMA00224500%04NV2029 DO MIM 31V2016 31112016 -1360870 1,XGS7 -144Z11 -]a 61 1Cc87
31396X305 FNMA DID REMIC Pa01-114 A6 VAR RT IWV1037 DO 11MMAT' 312512016 312512016 -6,964910 6,XHEl 1,625.37 339.54 6,.'a
31397OREO FNMA GTD REMIC P?11-3 FA VPR U 02G12041 DD 01/2oll 31292016 312512016 -8,670.170 8,670.17 _4,667A6 271 667O.17
3837HNX9 GNMA GTD REMIC Pa PAR PH VAR RT 0216RW0 W1WAL6 311612016 -1,365.480 1,30.48 -1,361 0.00 1,35548
361 GNMAIIPOOLMM023VARRT 12GQ2026DD1Z0196 311IM16 31112016 -221.600 221.60 -22517 -3.67 221.60
36225CNM4 GNMA II POOL WOW395 VAR RT 042O2030 DO G0100 311/2016 31V2016 -257,810 257.81 -255.47 234 257,81
36225DCB8 GNMA II POOL W090965 VAR AT 07120120M DD OTAYM 311IN16 31112016 -802740 80274 802. 0.50 802.
36225CC20 GNMA II POOL#080088M VAR RT 06201DD 061 W1I2018 31112016 -242.170 242.17 -247.47 -530 A217
Rein Id DOSES Report Tlmnlemn P-Ap 19201612:4435 PM Page l of
Transaction Report
BNY MELLON
OCSD-CONSOLIDATED-OCSG00010000
No Contract
Effective Trade Data Base Investment Base Investment Settle Base
Date Settle Shares/Par Date Amount Amount Base Gain/Loss Amount
36225CN28 GNMA II POOL 11000408X VAR RT 0$202030 DO OSNINO 3I112016 3I1I2016 -3925590 3a-- -3B0512 3987 392559
d3813JAC9 HONDA AUTO RECEIVABLES 201 AS 0.67M 11/21IM17 DD 02 114 V2112016 312112016 -348,583320 348,583.32 -347,621.23 1,06209 348.583.32
43814GAG4 HONDA AUTO RECEIVABLES 202 A30]]O%OV19Y2018 DO 0.V21/14 Vl W2016 311812016 -141,90L760 141,907]6 -141,807,98 99.78 141.90].]6
628UUW NCUAGUARANTEEDNOTESTRR2IAVARRT 11NL201]DD11/1]/10 s52018 31512016 4,214.360 8,214.36 4,214.32 004 8,214.36
83162CUO SBAGTDPARTNCTFS2001-20C16.340%03N1Y2021 I 311/2016 31112016 -11,272.10 11,272.10 11.272.10 0,00 11,272.10
83611MGSI SOUNDVIEW HOME LOANTR OPIRA4VARRT lU25Y2035DD09/3N05 3252016 W25/2016 -12.424410 12.42441 -10.988A2 105599 12,4M 41
89231MAC9 TOYOT,ALTO RECEIVPBlES 2 A A30670%UY152017 DO 03MW14 W1512016 W1N016 -281,043.6W 281,04360 -280,461.75 .1 B5 28164360
PURCHASES _ -25,368,752.26 20,433,663.17 0.00 -22,869,602.26
CASH&CASH EQUIVALENTS -14,446,587.05 14,446,587.05 0.00 -14,446,587.05
U.S.DOLLAR -14,446,587.05 14,446,587.05 0.00 -14,446,507.05
996087094 SHY MELLON CASH RESERVE 0010%12KHM49 DO 08/2897 311512016 W152016 9]5]20 -97572 97572 000 -97572
996087094 SHY MELLON CASH RESERVE 0010%12131S2049 DD 010265] W1812016 WlMO16 1,655140 -165514 1.655.14 000 -1655.14
995087094 BNY MELLON CASH RESERVE 0010%121310049 DD OW265] 312512016 3252016 ]0,1]5]10 -70,17571 ]0,1]91 000 JOT 75]i
996085247 DREYFUS TREASB AGY CSH CSH MG VAR RT 1MIA049 DO 04109197 V1/2016 31112016 1636000 CAR -1,036,000.on l'am'03.03 000 -1,03600000
996085247 DREYFUS TREASB AGY CSH CSH MG VAR RT 12/312049 DD 04109197 V112016 31112016 14R&250 _ -1451825 14,618.25 000 -14.518.25
996085247 DREYFUS TREASB AGY CSH CSH MG VAR RT 122120,19 DO MAH097 NY2016 3RI2016 1,014,375.000 -1,014,375.0) 1,014,375.00 0 _00 1,014,375.00
996065247 DREYFUS TREAS B AGY CSH CSH MG VAR RT 1MM049 DO 04N9IW WM16 3RI2016 36,562.500 -36.56250 3 ,5 Uso 000 36,562.50
996085247 DREYFUS TREAS B AGY CSH CSH MG VAR RT 1MH3 019 Do DU09I97 TSO016 =12016 64.821.68D -64,821.68 64821.69 000 84821.68
996085247 DREYFUS THEM 8 AGY CSH CSH MG VAR RT IMH3 049 Do NSM197 3hV2016 3M12016 51,562,500 -51,562 SO 51.562.S 000 -51,552.50
998065247 DREYFUS THEM B AGY CSH CSH MG VAR RT I2/312049 DO 0409AU W1012016 W102016 11000,000.060 -1,000000.00 11000,000,00 0.00 -1,000.00000
996085247 DREYFUS TREAS B AGY CSH CSH MG VAR RT lZOlA049 DO NINNY W1112016 3I112016 24380000 -2438000 24,20003 000 -24,38000
9960852d7 DREYFUS TREASB AGY CSH CSH MG VAR RT I2SIS049 DO Od109197 _ N1412016 31140016 43,]60.080 d3,750.00 43,760.00 000 _ 43,750.00
996NS247 DREYFUS TREASB AGY OSH CSH MG VAR RT I2/312049 Do 04108197 NUV2016 31152016 25,625080 -25,62500 25,625.03 000 -25.625.00
996065247 DREYFUS TREASB AGY CSH CSH MG VAR RT 12212M9 DO DVOW97 WIW2016 311512016 334,392.640 -334,392.54 334,392.54 0.00 3 .392.54
996085247 DREYFUS TREASB AGY CSH CSH MG VAR RT 1213MG49 DO DUDS97 WIW2016 311MO16 ME 971090 -565.97109 565.971.09 000 565,9]1.09
996085247 DREYFUS TREASB AGY CGH CSH MG VAR RT I2/312049 DO DU09197 _ W1812016 WIM016 142,99].800 -142997.80 142.997.80 000 -142,997.60
996085247 DREYFUS TREAS B AGY CSH CSH MG VAR RT 12KLO049 Do 04109197 312112016 3212016 3,459 340 120 _-3459,340.12 3,45%J40.12 000 _3,459340.12
99605247 DREYFUS THEM B AGY CSH CSH MG VAR RT I2OHI.9 DO 04N9197 312212016 JL2212016 2,005 235 030 -2,005,23503 2005,23603 0.00 -2,005,2MJ3
996085247 DREYFUS TREASB AGY CSH CSH MG VAR RT 12131/2049 OR U109197 312812016 312812016 70,1]5]10 -ID,1T571 70,17571 0a0 _ -7O1791
996065247 DREYFUS TREASB AGY CSH CSH MG VAR RT I2QV2049 DD Od109197 _ W28I2816 312812016 3,000,000000 -3,000,000.00 3,000,003.00 000 _JMCVJF.00
996WS247 DREYFUS TREASB AGY OSH CSH MG VAR RT 121312049 DD Od10819] V2912016 312912016 ],02].PO ].02].P ],@].1] 000 -].02L 17
9960652Q DREYFUSTREASBAGYCSHCSHMGVPRRT 12212M9DDeV0:.] W3112016 31312016 1a 000.OW -10.000.00 10,OW.W 0.00 -10,000.00
12049 DO DUD .7 996035247 DREYFUS TREASB AGY CSH CSH MG VAR RT 1213 _ W3112016 3UM% 68,516.00 .68,51609 68.516.09 000 86,516.09
3133842G] FEDERAL HOME UN BK CONS DISC MAT 07/1L016 =9/2016 MM016 1,400 000 000 1,398,530.00 1,398,530.00 000 _1.398,530.00
FIXED INCOME SECURITIES -10,922,165.21 5,987,076.12 0.00 -8,423,015.21
U.S.DOLLAR -10,922,165.21 5,987,076.12 0.00 -8,423,015.21
30231 SAW EXXON MOBIL CORPORATION 2,222%OW112021 DD 03N3/16 V29I2016 31312016 1,515,000000 -1,515,000A0 0.W 000 -1,515.000.00
4581XOCJ5 INTER AMERICAN DEVELOPMENT BAN 0625%OW12Y20160DMlXl4 W29/2018 3202016 2,00,000000 -2499,150.00 2A99,150.00 000 000
459059EJ0 INTERNATIONAL BANK FOR RECONST 1000%08115I2018DD M/30/15 W29/2018 3202016 2004000000 -1,996,300.00 1.996.300.00 000 -1.998,300.00
4]]89MA04 JOHN DEERE OWNER TRUST 20 AM 1,360%W/15Y20200D 03/02/16 2/2W2016 3212016 2.420.000000 -2419,61909 000 000 _2.419,619.09
46623EJY6 JPMORGANCHASE8COl M0%0VlW0PDO 02/18/14 W2612016 M12018 1.000,000000 -1,000,47000 000 000 -TOM ,47000
91282BN09 U$TREASURY NOTE 1,376%01/31/2021 DDO1/31/16 W1512016 WlWO16 11500,000000 -1,491,62612 1,491,626.12 000 4,49162612
RECEIPTS AND DISBURSEMENT TRANSACTIONS 0.00 15,392.00 0A0 OLD
MISCELLANEOUS INCOME 0.00 15,392.00 0.00 0.00
RPoa1M TX8355 Reba T—Slam,T Q Ap 19201612A,:S PM Page 2 of
Transaction Report
BNY MELLON
OCSD-CONSOLIDATED-OCSG00010000
No contract
Effective Trade,Data Base Investment Base Investment Settle Base
Date Settle Shares?Par Amount Amount Base Gain/Loss Amount
Data
U.S.DOLLAR 0.00 15,392.00 0.00 0.00
912828WV0 ILB INFLATION ADJUSTMENTS US TREAS-GPI INFLAT 31112016 AMOO16 -1,29600D 0.80 -1,248.00 0.00 0.00
912828MO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 31V2016 M12016 520000 0.0 520.00 0.00 0.00
912828MO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 31W2016 3/ONS 624.000 ow 624.00 000 000
912828WUO ITS INFLATION ADJUSTMENTS US TREASCPI INFLAT 31412016 3140016 1.664.000 OW 1,684.00 000 0.00
91282SWUO ITS INFLATION ADJUSTMENTS US TREASCPI INFIAT 31712016 302016 52000) am SZOO) 0.00 0.00
A2B28W00 ITS INFLATION ADJUSTMENTS VS TREAS-CPI INFLAT A.016 318I2016 520W3 OW 54. 000 000
912UBWUO ITS INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 31W2016 3I912016 626003 am 62003 1DO 000
912828WUO ILB INFLATION ADJUSTMENTS US TREAS CPI INFLAT 311012016 WIM016 520.003 ON 520.00 0.DO 0.00
912828MO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 31110016 NIISO16 1,864." ON 1,&m.00 0.00 0.00
912USMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 31140016 3114SO16 520.000 O.N 520.00 0.00 0.00
9128280A.0 ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 3%512016 NIM016 624.000 O.N 624.00 0.00 0.00
912UIRUO ITS INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 311612016 311602018 520AN ON 520.N 000 0.00
912828WUO ITS INFLATION ADJUSTMENTS US TREASCPI INFLAT 311712016 3/17f10% 520000 O.N 520.00 000 ODD
912WBMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 311812016 W182016 520 DOO OW 54M 000 000
912USMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 312112016 WHOO16 1,664.00) Dun lOum'N 0DO 000
912828MO ILB INFLATION ADJUSTMENTS US TREAS CPI INFLAT 312212016 MWO16 624AN 0.00 624.00 0.00 0.00
912USMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 3123OG16 3Y13Y1016 520.000 one 520.00 0.00 0.00
912USMO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 3124W16 =4OO16 520.000 O.N 520.00 0.00 0.00
9128ZIMUO ILB INFLATION ADJUSTMENTS US TREASCPI INFLAT 312WO16 312W2016 1,664.000 O.N 1.66COO 0.00 0.00
912UBWUO ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 312812016 W2&2016 624 AD ON 6.00 0.00 0.00
912828W00 ILB INFLATION ADJUSTMENT$US TREASWII NFIAT 312912016 ...is 520.000 O.N 5 J.D 000 0D0
912B28W00 ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 313012016 Y30/201fi 520003 ON 52000 000 000
912UBWUO ILB INFLATION ADJUSTMENTS US TREAS-CPI INFLAT 313112016 31J1rz01fi 626003 ON L.DO 0D0 0D0
SALES 8,404,397.07 .8,404,169.40 227.67 8,404,397.07
CASH&CASH EQUIVALENTS 6,404,560.02 .6,404,560.02 0,00 6,404,560.02
U.S.DOLLAR 6,404,560.02 -6,404,560.02 0.00 6,404,560.02
98808]094 BNY MELLON CASH RESERVE 0010%1213112049 DO 06126se 3116OD16 311612016 -8]5]20 8]5]2 9]5]2 1DO 9]5]2
996087094 BNY MELLON CASH RESERVE 0.010%1213112049 DD W26197 312112016 31211206 -1,665.140 1,655.14 -1655,14 ODD 1.655,14
996087094 BNY MELLON CASH RESERVE 0.010%120N12049 DD 06126so 312&2016 3/2&2016 -70175.710 70,175.71 70,1]5]1 0.00 70,175.71
996NS247 DREYFUS TREAS&AGY CSH DEN MG VAR RT I2/31/2049 DID 0410907 WXM16 31212016 -1,000,567.310 _1,000,557.31 -1.000,567.31 0.00 1,ND567.31
996085247 DREYFUS TREAS&AGY CSH CSH MG VAR RT I2/31/2049 DD 04N919] 312Y2016 3I212016 -2,41].856.140 2,41].656.14 2.417.656.14 0.00 2.417,656.14
N 996524] DREYFUS TREAD&AGY CSH CSH MG VAR RT 12/31/2049 DD 04N819] 1313Y2016 S312016 1515,000.000 1,515,000.00 1,515,00),0) O.DO 1.515,000.DO
996065247 DREYFUSTRI&AGY CSH CSH MG VAR RT lWlaO49 Do NAHW97 L2912016 31 EW% -1,398.530.000 1,398,530.On 1,398.530.00 000 1.3N.530.00
FIXED INCOME SECURITIES _ 1,999,837.05 -1,999,609.38 227.67 1,999,837.05
U.S.DOLLAR 1,999,837.05 -1,999,609.38 227.67 1,999,837.05
912828D64 U S TREASURY NOTE 0,500%=31=16 ED M1/14 WISOO16 NIM016 -2,000000.000 1,999,837.05 -1,999.609.36 22].8] 1.99105
teem Id TX8356 Repol TI-emn Tue Ap 19201612:4435 PM Page 3of3
Callan
March 31, 2016
Orange County Sanitation District
Investment Measurement Service
Quarterly Review
The retired, repod waa prepared by Callan Avocie irs Inc. (.CAI") using information from sources that include the following: fund bustee ed; fund
wamdlan(s)I Investment mangerO;CAI computer software;CAI investment manager and fund sponsor database;mind party data vendors;and other outside
sources as directed by the client CAI assumes no responsibility for the amumm,or mmpleteness of the information provider,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
net provide advice regarded nor shall Callan be responsible for,the purchase, sale, hedge or holding of individual securities, including,without limitation
cud,les of me client(i.e. company stack)or derivatives in the clients accounts.In preparing the following roped,CAI has not reviewed the risks of individual
security holdings or the conformity of individual seventy holdings with the clients Investment policies and guidelines,nor has it assumed any responsibility to do
c.Advice pedaining to me mebis of individual securities and derivatives should be discussed with a third party securities expert.Copyright 2016 by Callan
Associates Inc.
Table of Contents
March 31, 2016
Capital Markel Review 1
Active Management Overview
Market Overview 8
Domestic Fixed Income 9
Asset Allocation
Investment Manager Asset Allocation 11
Investment Manager Retums 12
Asset Class Risk and Return 16
Manager Analysis
Chandler-Long Term Operating Fund 18
Chandler-Liquid Operating Money 22
Callan Research/Education 24
Definitions 27
Disclosures 32
Callan
Orange County Sanitation District
Executive Summary for Period Ending March 31, 2016
Asset Allocation
March 31, 2016
Market Value Weight Net New Inv
Dameatic Flxed I..
Long Tema Opemting Fund' 319.878.459 8337% 0
Linuld0randina r.Mores'
Tool Foal 6383,667,959 100.0% 6(68,300,000)
Performance
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating FundA 1.56% 1.66% 0.81% 1,94% 2.84%
Chandler 1.56% 1.66% - - -
Barclays Goat/Cred 1-5 Year Idx 1.61% 1.62% 1.34% 1.88% 2.54%
ML1-5 Govt/Corp 1,61% 1.66% 1,39% 1.95% 2.66%
Liquid Operating MoniesA 0.16% 0.32% 0A8°% 0.18% 0.23%
Chandler 0,16% 0.32% - - -
Citiamuo3-Month Treasury Bill 005% 008% 005% 006% 008%
Total Fund 1.23% 1.36% 0.70% 1.64% 2.39%
Target' 1,30% 1.34% 1.12% 1,57% 2,14%
'Current Quarter Target=80.0%Ni 1-5 GoWCorp and 20.0%3mo T-Bills.
"Assets ware mrslaned in kind to Chandler on 1 211 12014.Previous performance re69cla PIMCO.
Recent Developments
During the quarter, $68.3 million was withdrawn from the total portfolio. The entire withdrawal
came from the Liquid Operating Monies.
Organizational Issues
N/A
Manager Performance
U.S. Treasuries posted their best first calendar quarter return since 2008 as yields dropped
nearly 50 bps from year-end in a volatile quarter marked by heightened uncertainty over
global economic growth. The risk-off sentiment propelled the Barclays Aggregate Index to a
gain of 3.0%. The 10-year U.S. Treasury note began the quarter at 2.24% and fell to end the
quarter at 1.78%. The 30-year Treasury bond, which started the quarter at 2.98%, fell less
and ended the quarter at 2.61%. This activity was spurred by indications by the Federal
Reserve that they will move Cautiously on further rate hikes, noting slower global growth and
financial risks. Government securities performed roughly in-line with the broader market
(Barclays Government Index: +3.1%) while investment grade credit advanced 3.9%
Callan O,engeUuntyS nitdm Dhind
Apn120.2016
(Barclays Credit Index). Inflation protected securities (Barclays US TIPS Index) posted a
solid return of 4.5% for the quarter. High yield bonds also generated positive performance,
gaining 3.2% (ML High Yield CP Index).
The Long Term Operating Portfolio was up 1.56% in the quarter, slightly underperforming the
MIL 1-5 Govt/Corp Index (+1.61%) and ranking in the 0 percentile versus peers. Securities
were transferred in-kind from PIMCO to Chandler in December of 2014. Since assuming this
portfolio in late 2014 Chandler has been re-positioning the portfolio in a manner they believe
to be consistent with OCSD's objectives. The Portfolio had less than 30% invested in credit
and less than the permitted 20% invested in the combination of asset-backed securities,
commercial mortgage backed securities, and CMOs as of March 31, 2016 (see page 21).
The Liquid Operating Portfolio returned 0.12% (after fees) in the quarter, which was higher
than the return of the 3-Month Treasury Bill (+0.05e/). Throughout the quarter, interest rates
on Treasuries with maturities longer than 3 months declined, while the very short end of the
yield curve rose slightly. The Portfolio returned 0.17% (after fees)for the trailing year.
Gordon M. Weightman, CFA
Vice President
2
Capital Market Review
CALLAN
INVES
Callan INST TUTENTS
CMR
Preview
First Quarter 2016
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.Equly(Russell 3000)E 0.97%
-028%I NOo-US.Equity(MSCI ACWI ex USA)
Tale of Two Halves U.S.Fixed(endow Aggregele) 303%
Non-US.Ronal(Cil Non-US)—9.10%
U.S. EQUITY I Lauren Mathias,CFA Cash(9o-1)ay Loins)I0.07%
So—B11d,Gltlg,MCMII Lynch NMI,Fussell Inw..Gmup
The first quarter of 2016 was a tale of two halves:the S&P 500
Index declined in the first half only to reverse Course and post
a positive quarterly return(+1.34%). Large cap Companies held More T-Bills, Please
their lead over small cap,but in the trend of reversals value over-
took growth in all capitalizations.(Russell 1000 Index: +1.16% U.S. FIXED INCOME I Irina Sushch
and Russell 2000 Index: -1.52%; Russell 1000 Value Index:
+1.64%and Russell 1000 Growth Intlex:+0.74%). Yields plummeted during a volatile first quarter. A dovish
Fed fostered uncertainty over global economic growth. The
Barclays Aggregate Index gained 3.03% and the Barclays
Continued on pg.2 Corporate High Yield Index was up 3.35%.
Continued on pg.4
Mr. Draghi's Wild Ride A Dole of Doves
NON.U.S. EQUITY I Kevin Nagy NON-U.S. FIXED INCOME I Kyle Fekete
Non-U.S. equity markets endured a rocky January and Sovereign debt rallied in the first quarter,driven by risk-on sen-
February but rallied in March to finish at a modest loss(MSCI timent and the impact of the U.S. dollar's relative weakness.
ACWI ex USA Index: -0.26%). Emerging markets (MSCI The Clti Non-U.S. World Government Bond Index jumped
Emerging Markets Intlex:+5.75%)did better than their devel- 9.10% (+4.16% on a hedged basis). The hard currency JPM
oped Counterparts(MSCI World ex USA:-1.95%). EMBI Global Diversified Index rose 5.04% while the local
Currency JPM GBI-EM Global Diversified soared 11.02%.
Continued on pg.3 Continued on pg.5
Knowledge.Experience.Integrity.
U.S. Equity: Tale of Two Halves Quarterly Performance of Select Sectors
Continued from pg. 1
•Rnzzeiii eon •Rnssenz 00n
Though the S&P 500 Index ended in positive territory, dur-
ing the quarter performance dipped 10%.This is the first time
since the Great Depression that the S&P fell to this depth only
oaoi
to rebound and end in the black. January was a disappoint-
ing month as economic concerns lingered from 2015. But in '
February and March, U.S. manufacturing activity grew, U.S.
fourth-quarter 2015 GDP was revised to 1.4%from 1.0%, the
labor force participation rate expanded to 63% (from 62.4%), Utilities Materlais& Financial Hal are
Processing Services
and the U.S. economy added 215,000 jobs in March alone.
Global concems around the price of oil abated as the crude oil sooice:knicaii mvesvoem Groan
spot price ended the quarter at $38/barrel after bottoming at
$26/barrel in mid-February. Investor sentiment rose in tandem Rolling One-Year Relative Returns (vs. Russell 1000)
to these positive developments. Despite some improvement, OtRuase111000Grown 9eneea111000vaiae •Rvs.e111000
the U.S.Federal Reserve stated global economic and financial
30
developments continued to pose risks, and thus maintained
the target range for the federal funds rate at 0.25 4 0.50%. 20%
Growth lost its lead over Value. The difference was most sig-
10%_ _ _ _
nificant within small cap(Russell 2000 Growth Index:-4.68% %
and Russell 2000 Value Index: +1.70). Micro and small
cap companies declined while mid and large cap advanced -10%- - - - - -------------- - - - - - '
(Russell Microcap Index: -5.43%, Russell 2000 Index:
-1.52%, and Russell Midcap Index: +2.24%, Russell 1000
Index:+1.18%). -30%rP^i���r��i^�rv�i���rv�r^i...lv'i ..P..r^rv.rv.i...P..r^P....
9697 98 99 00 01 02 03 of 05 06 01 08 09 10 it 12 13 16 1516
Sector performance over the quarter also revealed reversals. source:knell irwa:vnam Groan
Cyclical areas like Energy, Industrials, and Materials added
value, and the interest rate-sensitive Utilities sector expanded, The U.S.equity market had a tumultuous start to the year, but
but typically defensive Health Care trailed. Not only did sectors found itself in positive territory by quarter end.This tale of two
turnabout,so did factors—valuation metrics such as price/book halves made it challenging for active management, with just
and yield outpaced growth metrics such as projected-EPS 19%of large cap funds outperforming the S&P 500 Index dur-
growth and price momentum.Volatility of stocks,as measured ing the quarter.
by the daily VIX, increased during February's pullback, end-
ing the quarter near average levels.Correlations remained well
above long-term averages and spreads between stock returns
were below average(both based on the S&P 500 universi
difficult environment for stock-picking strategies.
2 1 Callan
Non-U.S. Equity: Mr. Draghi's Wild Ride Rolling One-Year Relative Returns
Continued from pg. 1 (vs.MSCI Word ex USA,USD hedged)
e MSCI Padfic a MSCI Europe a MSCI Wpdd ex USA
Non-U.S. equity markets fought through a horrible January 40%
to post a modest loss for the quarter (MSCI ACWI ex USA 30"
Index: -0.26%). Falling oil prices, concems about global ece- -
nomic growth, and declining corporate profits prompted the f0% -- - - - - - - ----- -- -
January sell-off as many investors switched to a"risk-off foot- °%
ing.Announcements of further European Central Bank(ECB) -fast --- - - - - - --------- --.
monetary stimulus and a modest rebound in commodities -20%
prices helped kick start a comeback in February and March, -30%
but were not enough to drive the broader non-U.S.indices into 40%I'I"9" "' "' "' "' "' "9" "'I"'I"'I"'I"'I"'I"'I"'I"'I"9'
989] 98 99 0a at 02 a3 96 05 Ce 0] W 09 fa 11 12 13 16 1518
the black. Source:MSCI
Emerging markets outperformed developed markets with the
MSCI Emerging Markets Index(+5.75%)handily surpassing worst performer; its Financial sector lost 25.84%due to Italian
the MSCI World ex USA Index (-1.95%). Small cap stocks banks carrying massive amounts of non-performing loans on
rode the rally further than large cap and posted a slight posi- their balance sheets.
live return, due to strong performance in the Utilities sector
(MSCI ACWI ex USA Small Cap Index: +0.68%). Sector Southeast Asia and the Pacific(MSCI Pacific Index: -3.79%)
results were mixed: Energy(+9,97%)and Materials(+7,26%) underperformed Europe and other broad benchmarks. Japan
were strongest while Health Care and Financials retreated (-6.52%)battled with tepid economic growth and large losses in
(-7.17%and-4.85%, respectively). the banking sector.The Financial sector was hit especially hard,
losing 13.58%. Exporters also struggled due to the strengthen-
European stocks were unable to complete their rebound ing yen. Things were less gloomy in the rest of the region with
despite further rate cuts and bond purchases by the ECB New Zealand (+11.60%), Singapore (+5.05%), and Australia
(MSCI Europe Index: -2.51%). The banking sector was hurt (+2.10%)beneffting from a commodities rally.
by slashed interest rates. Health Care also struggled,dropping
7.45% amid renewed political tension over rising drug prices. China(-4.80%)continued to struggle due toconcems over slow-
The Netherlands(+3.35%)was the top performer in Europe due ing growth and ineffective monetary policy. In an effort to sus-
to strong domestic performance from Energy (+15.73%) and fain the economy's growth, Chinese authorities implemented
Consumer Discretionary (+12.32%). Italy (-11.66%) was the selective capital controls to slow asset withdrawals and cut
the required reserve ratio. Consumer Discretionary (-10.75%),
Regional Quarterly Performance (U.S.Dollar) Financials(-9.68%),and Health Care(6.65%)were three sig-
nificant detractors. In keeping with the rest of the world, surg-
MSCIEmrtgingMada,ft 5.75% ing commodity prices buoyed Energy (6.75%) and Materials
Mau Padfic ex Japan_1.81% (7.26%). Latin America was the big winner of the first quarter
4.26%' MSCI ACWI ex USA as Brazil, Colombia, Chile, and Peru (+28.58%, +22.49%,
nss%— MSCI Wodd ex USA +13.25%,and+27.02%)made the MSCI Latin America Index
-2.51% MSCI Europa
the top-performing regional index at+19.23%.The recovery in
-
commodity prices and the prospect of political change boosted
-s.sz% - Mscl Japan the Brazilian real to appreciate 12%against the dollar.
Source'.MSCI
Knowledge.Experience.Integrity. 1 3
U.S. Fixed Income: More T-Bills, Please interest rates,underperformed like-duration Treasuries by nearly
Continued from pg. 1 100 bps; Industrials,buoyed by a rebound in commodity prices,
outperformed by 70 bps.
Yields fell nearly 50 bps from year end during a volatile first
quarter. The yield Curve flattened further in markets abundant High yield corporate bonds rebounded from severe underper-
with uncertainty over global economic growth.Investment grade formance in January and early February (down 5% through
credit, mortgage-backed (MBS), commercial mortgage-backed February 11) to finish in the black. The Barclays Corporate
(CMBS), and high yield spreads all tightened, while asset- High Yield Index was up 3.35%, outpacing Treasuries by 77
backed spreads widened. The Barclays Aggregate Index bps. Including an upsurge in issuance in the last few weeks of
gained 3.03%. the quarter, new high yield issuance was $35.9 billion-60%
lower than one year ago.
Following December's federal funds rate hike, the Federal
Reserve took on a neutral outlook.The Fed stated that financial
Historical 10-Year Yields
and economic conditions are less favorable than they had been
in December. The U.S. economy expenenced modest growth •U.s.10-Year Treeeuryreld 010-wir TIPS Yield •Breakeeen Inflation Rate
despite improving employment and housing numbers.Fed chair s%
Janet Yellen stated that the U.S. economy would have to get S%
much worse before the Fed would consider the use of negative
4%_ _ _ _ _ ______________ _ _ _ _ _ _ _ _ -
interest rates(six other central banks have implemented nega-
tive interest rates). The 10-year U.S.Treasury yield tumbled to a%- - - - - -- --- - ----- --- - -
1.77%. The breakeven inflation rate (the difference between z%_ _ _ _ _ __
nominal and real yields)on 10-year Treasuries ticked up 1.63% 1%- - - - - - -
as TIPS fell 55 bps, in line with their nominal counterparts.
o%
Sectors in the Barclays Aggregate posted positive returns -1%10' I '%' I '08' 10'g. . .
10' I 'It. . .12. . .1a I u 1s is
across the board. CMBS outperformed like-duration Treasuries Souma:Bloomberg
by 0.58%and rose 3.61%for the quarter.Credit was the highest
returning sector(+3.92%),but only beat like-duration Treasuries
by 0.18%. MBS was the only sector to trail like-duration U.S.Treasury held Curves
Treasuries (down by 0.38%), yet still rose 1.98%. Investment •Mamb 31,2016 •oecemter 31,zo15 •March 31,2m5
grade Financials,hurt by worries over persistent low or negative s%
Fixed Income Index Quarterly Returns 4%
AMolub Return
Bamlays Aggregate - 3.03%
Barclays Treasury- 3.20%
Bardays Agencies- 3.04%
BarclayeCMBS 3.61X
BamlaYSABS -1.N% 1%
Barclays MBS - 1.99%
Barclays Credit 3.92% 0%
Barclays Corp.High Yleld -3.35% 0 5 10
15 20 25 30
Meant,O'earel
Source.Barclays Soulce:Bloomberg
4 1 Callan
Non-U.S. Fixed Income: A Dole of Doves Emerging Spreads Over Developed (By Region)
Continued from pg. 1 e EmergingAmarice5 a Enraging EMEAi.m .Hiae Ea Mae a EmmingAsia
a
The U.S. dollar weakened versus most currencies during the
quarter, providing a tailwind to unhedged foreign bond returns. 6% _
The yen gained 7% versus the dollar as investors sought its
safe-haven status amid market turbulence in China and con- 4% _ _ _ ___ ____
cams over the health of the European banking sector.The Sure
was also stronger versus the dollar(+5%). In March, the ECB 2%
Continued its accomodative stance, slashing interest rates and
increasing asset purchases.For the first time,the ECB included 0% ' i ' ' ' i ' i '
11 12 13 14 15 16
non-bank investment grade corporate bonds in its asset pur-
chase program.Interest rates fell across developed markets,fur-
ther bolstering returns.The Citi Non-U.S.World Government
Bond Index was up 9.10%(+4.16%hedged)while the Barclays 10-Year Global Government Bond Yields
Global Aggregate rose 5.90%(+3.28%hedged).
•US.Treasury •Germanry •U.K. •Canada •Japan
6%
On an unhedged basis, returns approached 10% for many
5%
countries, including Japan which was up almost 12% on the
4%
back of falling rates combined with yen strength.Yield on the
a%_ _ _ _ _ _ _
Japanese 10-year bond reached negative territory after a sur-
prise move by the Bank of Japan (BoJ)in January to adopt a 2%
negative interest rate policy, indicating bond investors would 1%- - - - - - - - - - - - -- -------have to pay-to-own before adjusting for inflation.The BoJ owns 0%
approximately athird ofoutstanding Japanese bonds as a result -1%i . . . . . . i . . . . . . . . . . . . . . i . . . . . . i . . . i
of its quantitative easing program. Regulations require the 06 W ae 09 10 11 12 13 14 1s 16
nation's banks, insurers,and pension funds to tarty Japanese change in 10-Year Yields from 4015 to 1016
bonds on their balance sheets. -a.%% U.S.Treasury
4.48% Ga..,
The unhedged U.K. gilt advanced 2.66%, hampered by the .0.55% U.K.
pound's 3%fall. Worries over a potential Brexit put pressure 4.17%- Canada
on the currency. Yield on the 10-year U.K. gilt declined more .0.2e%-Japan
than 50 bps, hitting an all-time low early in the quarter. The
Bank of England elected to maintain its relaxed monetary pol- souma:Bloomberg
icy for the seventh straight year,citing weak growth and global
market turmoil.
the local currency JPM GBI-EM Global Diversified soared
Emerging market bonds rebounded. In late February and 11.02%, bolstered by the dollar's relative weakness.Brazil led
March,commodity prices stabilized,risk appetite returned,and both indices as investors cheered the prospect of an impeach-
confidence in the Chinese renminbi stabilized. The hard cur- ment of President Dilma Rousseff, hoping a new government
rency JPM EMBI Global Diversified Index rose 5.04%while could bring better days for the beleaguered country.
Knowledge.Experience.Integrity. 1 5
Active Management Overview
Market Overview
Active Management vs Index Returns
Market Overview
The charts below illustrate the range of returns across managers in Callan's Separate Account database over the most
recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in
returns across those asset classes.An appropriate index is also shown for each asset class for comparison purposes.As an
example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter.
The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the
Large Cap Equity manager database.
Range of Separate Account Manager Returns by Asset Class
One Quarter Ended March 31,2016
15%
0%
5% 71 E (47)ionni (62)
(61)
(5%) 6)
(11%) large Cap Small Cap Non-Us Domestic Nan-US Real
Equity Equity Equity Fixed Income Fixed Income Estate
s vs
SSP 500 Russell 2000 MSCIEAFE Bamlaya Aggr Bd Citi NomUS Gov1 NCREIF Index
10ih Percentile 1.85 175 0.64 3.40 9.74 3.72
25M Peruntlle 0.95 190 (070) 3.20 929 3,18
Metlian ((0.19 063 ((246) 3,01 871 2,42
]SM Percentile (3.39 ].1A (9.9] 2�84 0.5
(0.11)901h Percentile
Index • 1.35 (1,62) (301) 3,03 9.10 2.21
Range of Separate Account Manager Returns by Asset Class
One Year Ended March 31,2016
30%
20%
c
10% (1) 58)
0% 18 63
K
(10%) (68)0 (71)®
(20%)
(so%) urge Cep Small Cap NomUS Domestic Non-US Real
Equity Equity Equity Fixed Income Fixed Income Estate
UPW Russell 2000 MSCIEAFE Barclays Aggr Bd Giti Non USGod NCREIF Index
10ih Percentile 3.09 (1.]8 (2.2]I 2.66 ].00 21.54
25ih Percentile 0.92 4.4] (6.29 2.48 8.53 i6.]5
Median rose) (((].22 (((6.23))) 2.11 5.38 13.40
]5N Percentile (5.28� 87.15 (10.63) 1.30 (1.52) 7.69 90M Percentile
Index • 1.78 (8.18) (8.27) 1.96 ].]4 11.84
CallanOrange County sanitation Distnct 6
Domestic Fixed Income
Active Management Overview
This will be available soon.
Barclays Universal: 3.07%
Barclays Aggregate: 3.03%
Barclays or 3.47
Separate Account Style Group Median Returns Barclys Mortgage: .90%%
for Quarter Ended March 31,2016 Barclays High Yield: 3.35%
10% Barclays US TIPS: 4.46%
8%
7.08
6% ______________________ _____________
m
0
01 2.11
2� 2.65
2% _________
1.01
0.40
0%
Active Defensive Intended Go. Core Eaters ed Bank Mortgage High
Cash Bond PIPS MdWlty Loans Backed Yield
Barclays Universal: 1.75%
Barclays Aggregate: 1.75%
Barclays GcvtaCrMad,agedit 2.43%
Separate Account Style Group Median Returns Barclays Modgage: z.43%
for One Year Ended March 31,2016 Barclays High Yield: (3,69%)
4% Barclays US TIPS: 1.51%
3%
2.40
2.11 2.11
2% _________ ____
26 1.35
1% _____ ________ _____
O.T1
0.36
E 0.05
2 0%
m
rc
(2%) __________________________________
(3%)
72-81f
(4%)
Active Defensive Interned Care Core Extink ed Bank Modge a High
Cash Bond Plua Maturity Loans Ballad Yield
Callan Orange County Sandation Dil g
Asset Allocation
Investment Manager Asset Allocation
The table below contrasts the distribution of assets across the Fund's investment managers as of March 31, 2016, with the
distribution as of December 31,2015.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 31,2016 December 31,2015
Market Value Weight Net New Inv. Inv.Return Market Value Weight
Domesllc Meted Income
Long Term Operating Fund' 319,878,459 83,37% 0 4.905.686 314,972.772 70A7%
liquid Ooeratina Monies' 63,789,500 16.63% (68.300.000) 127,370 131.962.130 29.53%
Total Fund $383,667,959 100.0% V08.3001000) 95.0331056 8446,9M902 100.0%
'Chandler replaced PIMCO during the 4th quarter 02014.Assets were trelleterred In+lnd as of 1001I2014.
Callan Coerce county Sandation District „
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended March 31,
2016. Negative retums 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 31,2016
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating FundA 1.56% 1.66% 0.81% 1.94% 2.84%
Chandler 1.56% 1.66% - -
Barclays Govl/Cred 1-5 Year Idx 1.61% 1.62% 1.34% 1.88% 2.54%
MIL 1-5 Govt/Corp 1.61% 1.66% 1.39% 1.95% 2.66%
Liquid Operating MoniesA 0.16% 0.32% 0.18% 0.18% 0.23%
Chandler 0.16% 0.32% - - -
Citiarouo 3-Month Treasury Bill 0.05% 0.08% 0.05% 0.06% 0.08%
Total Fund 1.23% 1.36% 0.70% 1.64% 2.39%
Target' 1.30% 1,34% 1.12% 1,57% 2,14%
'Current Quarter Target=80.0%ML 1-5 Govt/Corp and 20.0%3mo T-Bills.
^As�.sets were transferred in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Callan Onan,County Sandaann Distnd 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,
2016. Negative retums 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 31,2016
Last Last Last
10 15 20.1/2
Years Years Years
Domestic Fixed Income
Long Term Operating FundA 3.66% 3.83% 4.64%
Barclays Govi/Cred 1-5 Year Idx 3.47% 3.67% 4.44%
ML 1-5 Govt/Corp 3.49% 3.67% 4.47%
Liquid Operating Monies^ 1,33% 1.70% 2,78%
Citigrouo 3-Month Treasury Bill 1.07% 1.43% 2.45%
Total Fund 3.23% 3.48% 4.36%
Target* 3.01% 3.22% 4.06%
Current Quarter Target=80.0%ML 1-5 Govt/Corp and 20.0%3mo T-Bills.
^Assets were transferred in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Callan Onar,County Sandatlnn mistnd ,3
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.
12/2015-
3/2016 2015 2014 2013 2012
Domestic Fixed Income
Long Term Operating Fund^ 1.56% 0.85% 1.98% (1.77%) 3.06%
Chandler 1.56% 0.85% - - -
Barclays GovUCred 1-5 Year Idx 1.61% 0.97% 1.42% 0.28% 2.24%
ML1-5 GovUCorp 1.61% 1.05% 1.51% 0.32% 2.47%
Liquid Operating Monies^ 0.16% 0.22% 0.09% 0.13% 0.17%
Chandler 0,16% 0,22% - -
Ciliarouo 3-Month Treasury Bill 0.05% 0.03% 0.03% 0.05% 0.07%
Total Fund 1.23% 0.80% 1.73% (1.49%) 2.70%
Target* 1.30% 0.85% 1.21% 0.26% 1.99%
*Current Quarter Target=80.0%MIL 1-5 Govt/Corp and 20.0%3mo T-Bills.
^Assets were transferred in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Callan Orenaa Cnmrty Sandatlnn DlsNtl ,4
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.
2011 2010 2009 2008 2007
Domestic Fixed Income
Long Term Operating Fund^ 4.59% 4.42% 5.52% 5.37% 7.21%
Barclays GovVCred 1-5 Year Idx 3.14% 4.08% 4.62% 5,12% 7,27%
ML1-5 Govt/Corp 3.10% 4.17% 4.88% 4.65% 7.27%
Liquid Operating Monies- 0,24% 0.25% 0.58% 2,40% 5,25%
Cilioroup 3-Month Treasury Bill 0.08% 0.13% 0.16% 1.80% 4.74%
Total Fund 3.70% 3.68% 4.65% 4.61% 6.84%
Target` 2.49% 3.36% 3.93% 4.08% 6.76%
Current Quarter Target=80.0%MIL 1-5 Govt/Corp and 20.0%3mo T-Bills.
^Assets were transferred in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO.
Callan Orenge County SandatlnnDlsNct ,s
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%
'®
z5%
2.0%
1.5%
N
K
1.0%
0.5%
0.0%
0.0% 0.2% 0.4% 0.6% 0.8% 10% 1.2% 1.4% 1.6% 1.8%
Standard Deviation
Seven Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
3.0%
z5%
2.0%
1.5%
N
K
1.0%
0.5%
00% r
0A% 0.2% 0.4% 06% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8%
Standard Deviation
Callan Onr� County Senda,InnolsNtl 16
Manager Analysis
Chandler-Long Term Operating Fund
Period Ended March 31, 2016
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/l/2014.Previous performance reflects PIMCO.
Quarterly Summary and Highlights Quarterly Asset Growth
• Long Term Operating Fund's portfolio posted a 1.56%return Beginning Market Value $314,972,772
for the quarter placing it in the 4 percentile of the CAI Net New Investment $0
Defensive Fixed-Inc Style group for the quarter and in the 8 Investment Gains/(Losses) $4,905,686
percentile for the last year.
• Long Term Operating Fund's portfolio underperformed the Ending Market Value $319.878,459
ML 1-5 GoWCorp by 0.05% for the quarter and
underperformed the ML 1-5 GoWCorp for the year by
0.00%.
Performance vs CAI Defensive Fixed-Inc Style(Gross)
6%
5%
28113
( )26)"A
3% (( (( (( 1 )38)♦ t 6(4 )
2% P)LnA(4 (8)�B(9 (41�N(1 19) B12 2 1®612 3
1% M )
0% Lasl Dtr Load Chandler Last 3 Yrs Load 5Ym Last 7Ym LiatlOYrs Laa420.51(rs
Yin Inception
10m Percentile 1.50 1.60 2.01 1.49 2.34 4.08 3.82 4.65
25m Percentile 1.25 140 1,76 1.32 1.82 3.08 3.50 448
Median 1.01 126 1,60 1.16 1.59 232 3.13 4,14
75m Percentile 0.95 1.14 1,38 1.00 1.22 1.75 2.83 40[
9001 Percentile 069 103 1,30 0.88 1.11 1.52 257 362
Long Term
Operating Fund *A 1.56 1As 1,93 0.81 1.94 2.84 3.66 464
Barclara Gov Irred
1-5 Year Mx •B 1.61 162 2,07 1.34 1.88 2.54 3.47 444
ML 1-5 GovgGmp ♦ 1.61 166 2,14 1.39 1.95 2.66 349 447
CAI Defensive Fixed-Inc Style(Gross)
Relative Return vs ML 1-5 GoWCorp Annualized Seven Year Risk vs Return
2.0% 55%
4.5%
E t.o% _ __ _ __ __ __ __ 4.0%
05% _ _is 1 __ __ E3s%
Of
e 0 3.0%
0.0% Isl 2.5%
W pi iq--- --- - 2.0%
1.5%
(1.0%) _ __ __U__
III
__ 1.0%
0.5%
2009 2010 2011 2012 2013 2014 2015 16 00 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Long Term Operating Fund Standard Deviation
Callan Orange County Sangetion District [8
Long Term Operating Fund
Return Analysis Summary
Return Analysis
The graphs below analyze the manager's return on both a risk-adjusted and unadjusted basis.The first chart illustrates the
manager's ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last two charts illustrate the manager's
ranking relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12M/2014. Previous performance reflects PIMCO.
Performance vs CAI Defensive Fixed-Inc Style(Gross)
20%
15% ( 5y ( ( 1 1 )
15% 3 B B ] NA 14��811J�B(1N ®Bl �9 Bl 015 Al 7
(5%)
(10%) 1211S 3/10 M15 2014 2013 2012 2011 2010 2009 2008 2007
100 Percentile 1.50 1.10 1.50 1.20 446 272 4.J1 1374 6.63 ].03
25th Percentile 1.205 1.03 1.2J 0.80 2.60 2.28 4.02 860 5
.64 6.83
Median 1.01 0.90 1.11 065 1.81 187 3A9 591 3s8 645
75th Pemer4ile 0.95 0.76 08J 041 146 165 2J2 253 0.9) 5.66
900 Percentile 0.89 om 0.70 031 0.92 1.44 2.41 1.82 34J) 3.75
Long Tenn
Opemung Fund *A 1,56 085 198 (117) 3.06 4.59 442 552 5.37 7.21
Barclays GoWCred
1-5 Year ldx eB 1.61 0.97 1.42 028 2.24 3.14 4.08 4.62 5.12 ].2]
ML1-5
GOWCOT ♦ 1.61 1.05 1.51 032 2.47 3.10 4.17 4.88 4,65 ].2]
Cumulative and Quarterly Relative Return vs MIL 1-5 GoWCorp
6%
4%
2%
K 0%
m
(4%)
G%)
(8%)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 16
10 Long Term Operating FmM 0 Barclays GOWCaad 1E Year Idx CAI Defensive F-1 We
Risk Adjusted Return Measures vs ML 1-5 Gov1/Corp
Rankings Against CAI Defensive Fixed-Inc Style(Gross)
Seven Years Ended March 31,2016
5 :g
3 1:5
B((951 0
2 A110 )
0 {0.0 A 1 •6(64
A107 S
(1) Alpha Treyrwr 2"0 Informalon Sharpe Excess Return
RN10 Fe ie RMie Ratio
1 on Percentile 0.83 3.71 loth Percentile 1.35 2.08 0.77
25th Percentile 0.59 3.29 25th Percentile 0.98 1 94 0.32
Median 0.34 307 Median 065 180 (0.54)
75th Percentile 0.21 203 J5th Percentile 0.W 163 122
son Percentile 0.04 2.61 90M Percentile goo 1.47 1.40
Long Term tong Term
Operating Fund •A (040) 2.22 Operating Fund •A (0.46) 1.36 0.20
Barclays GoWCred said.,GOWCrad
1-5 Year Idx ■B ge5) 249 1-5 Year Idx e B (0.45) 1.68 (0 92)
Callan orange County SarRation District 19
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 31,2016
5
3.0 (5)
♦ �(10)
2.5 •(7)
(21)
2.0
1.5 9) (46) E87)
1.0
0.5
00 Avenge EReoeve Loupon OA
Duration Ur. Yield Rate convoxlty
101h Pemenfile 2.20 2.54 2.53 2.86 0.09
25th Percentile 1.88 2.06 1.75 2.1g 005
Median 1.80 1.as 1.37 2.00 0.03
TSth Percenfile i.64 1.90 1.15 1.6T 002
901h Pemen0le 1.52 1.60 0.95 1.42 0.01
Long Tam
Operating Fund • 2.48 2.58 1.40 1.52 -
Bamlaya G.WCrad 1-5 Yr ♦ 2.73 2.87 1.27 2.24 OID
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 manager's weighted average quality rating with the range of quality ratings
for the style.
Sector Allocation Quality Ratings
March 31,2016 > vs At Defensive Fixed-Inc Style
Toe Tray
US Tr, m�
z------ m.e __- AM
RMBS >
��m
Cora(land 144A) M. (24)
(27)
ABS AA
Other AA
caah
A-
Tax-Exempt US Muni
CMOs A Weighted Average
Quality Rating
Was 10tu Percentile PAA
25th Percentle M.
Median M
Gov Related 95th Percentile M-
gOmPemantlle A4
0% 10% 20% 30% 60% 50% 60% 20% 80% Long Term
Long Term Operating Fund CAI Defenarva Fuetl-Inc Syla Operating Fund • M.
Sundays Govi Cred 1-5 Yr Bentleyyss
Callan
1-5 Yr ♦ M*
Callan Orange County Sarmation Distda 20
Long Term Operating Fund
Portfolio Characteristics Summary
As of March 31, 2016
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 Tray
33% 59%
CMBS
Other A11111111111W
1%
J%
Cash
2%
ABS /8% RMBS
Tax-Examyyt US Muni 27%
2% \ 40'. 13%
v Related
Corp lzt%l I"A) Corp l2J%l"A)
CMOs
1%
Long Term Operating Fund Barclays GoWCredit 1.5 Year
WeigMetl Average: Duration
Duration Distribution Long Term Operating Fund 2A8
50% ■ Bardays GoWC%dit 1-5 Year: 2.70
0
E
a 30%
`o u.z
a
g%
o<U o.a 0 1'a 1-2 2-3 3-5 5-7 on n0
7-10 u nNOno
Years Duration
W elgMed Average: Duality
Quality Distribution L.,Term Operating Fund AAe
100% ■ Bard.,GoWCredi11-5 Year: AAe
p80% ______ ___ ___ __ ___ ___ ___ __ ___ ___
a
eas
d 50% _ L ___ ___ __ ___ ___ ___ __
o ___ __
40% _ ___ _
`. zg%
o%
APA M A BBB a.aBe.a oo Bo.o aCCC o.occ.o a.a Ca.a o.o Do.o NIRa
Quality Rating
Callan Oran,a County Sanitation Disadd 21
Chandler-Liquid Operating Money
Period Ended March 31, 2016
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 0,12% Beginning Market Value $131.962,130
return for the quarter placing it in the 8 percentile of the MF- Net New Investment $-68,300,000
Money Market Funds Database group for the quarter and in
the 13 percentile for the last year. Investment Gains/(Losses) $127,370
• Liquid Operating Money Net's portfolio outperformed the Ending Market Value $63,789,500
Citigroup 3-Month Treasury Bill by 0.07%for the quarter and
outperformed the Citigroup 3-Month Treasury Bill for the
year by 0.09%.
Performance vs MF-Money Market Funds Database(Net)
2.5% (13
39)�
2.0%
1.5%
1.0%
0)®125
0.5%
0.0% (B) PS (13 2 (13 18 1]
(0.5%) Last QW Last Chandler Last 3 Yrs Last 5Yrs Last 7Yrs LastlOYrs Lest20.8Yrs
Yr Inception
ION'
0T Percentile 0.10 021 0.20 0,11 0,11 0.14 129 265
25M Percentile 0.05 008 0.07 0.04 0.03 0.0s 1.17 251
Median 0.01 002 0.02 0.01 0.01 0.02 1.07 2.37
75M Pemantlls 000 001 ool 0,01 0,01 0.01 096 224
9011,Percentile 000 000 000 0,00 0,00 am O87 209
Liquid Operating
Money Net • 0.12 O.11 0.15 0.03 0.03 0.08 LP 262
Cidgmup 3-Month
Treasury Bill ♦ 0.05 008 0.07 0.05 0.08 0.08 1.07 2.45
Relative Returns vs MF-Money Markel Funds Database(Net)
Citigroup 3-Month Treasury BIII Annualized Seven Year Risk vs Return
0.10% 3.5%
008% - -- -- -- -- -- -- 3.0%
006% 2.5%
E
= 004% 2.0%
m 0.02% = 1.s%
m 0.00% 0%
d
(0a4%) _ __ __ __ __ __ __ 0.0%
(006%) (0.5%)
2009 2010 2011 2012 2013 2014 2015 ie (0.5) 00 as 10 15 20 25 3.0
■Liquid operating Money Nat Standard Deviation
Callan Orsnryle County Sandation DisNct
Liquid Operating Money Net
Return Analysis Summary
Return Analysis
The graphs below analyze the manager's return on both a risk-adjusted and unadjusted basis.The first chart illustrates the
manager's ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last two charts illustrate the manager's
ranking relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12M/2014. Previous performance reflects PIMCO.
Performance vs MF-Money Market Funds Database(Net)
6%
5% 5o 18
4%
KI
3%
2% 60®38
1%
0%
(1%) 121153116 T015 2014 2013 2012 2011 2010 2009 2008 2007
101h Percentlle 0.10 012 007 009 0.19 008 OA5 053 2.78 5.22
25th Percerble 0.85 004 002 0c2 0.03 003 005 029 246 5.01
Median 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.12 2.03 4.73
75th Percentlle 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.03 146 4.39
90h Percentlle 0.00 0.00 000 0.00 0.00 000 OW 001 1.08 3.99
Liquid Operating
Money Net 01 0.12 0.07 (0.06) (002) 0.02 0.09 0.10 0.43 2.25 5.09
Citi9rwp 3-MorM
Treasury6111 ♦ 0.05 0.03 0.03 005 0.07 ON 0.13 0.16 1.80 4.74
Cumulative and Quarterly Relative Return vs Citigroup 3-Month Treasury Bill
of 0.5%
e
- 0.0%-
d
(1.0%)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 16
10 Liquid Operating Money Net 0Money Market Fda OB
Risk Adjusted Return Measures vs Citigroup 3-Month Treasury BIII
Rankings Against MF-Money Market Funds Database(Net)
Seven Years Ended March 31,2016
0.05 10
0.06 0
0.04 •(T) (10)
0 oz 20)
0.00 (30)
(g. )
(0.04) •135) (40)
(0.06) (50)
(0.08) Alpha Traynor (60) Information Sharpe Excess Return
Red. Redo Retie Red.
10M Percentile 0.05 001 10th Percentlle 088 054 105
2Ni Percentile 002 005 25th Percentile 064 11.33 084
Metlien 0.05 0.06 Metlian 1.B4 5.12 2.29
151h Percentile 0 OS 0.08 75th Percentile 2.13 (20.03 2.55
99th Percentlle 0.08 (006) 96th PerceMile (229) (WA3) 2]5
Liquid Operating Liquid Operating
Money NO • (OW) 0.04 Money Net 01 (0.70) (0.29) 0.06
Callan Orange County Sendation Doffid 21
Callen Research/Education
CALLAN
INVESTMENTS
Callan INSTITUTE list Quarter 2016
Education
Research and Educational Programs
The Callan Investments Institute provides research that updates clients on the latest industry trends while helping them learn through
carefully structured educational programs.Visit www.callan.com/research to see all of our publications,or for more information con.
tact Anna West at 415.974.5060/institute@callan.com.
Recent Research
-- 2016 DC Survey&Key Findings Callan's Global Equity Benchmark Review This annual report examines
0 2016 DC Trends Survey highlights plan FTSE, MSCI, Russell, and S&P indices alongside Callan Active
0—_- sponsors' key themes from 2015 and ex- Manager Style Groups.
sew'
r-=-" pectations for 2016;the Key Findings sum-
Hedge Fund Monitor,4th Quarter 2015 Our cover story,"David
manze the Survey.
versus Goliath:Sizing Up the Odds,"compares the respective ad-
Periodic Table & Periodic Table Collection Depicts annual in. vantages and challenges of smaller and larger hedge funds.
vestment returns for 10 major asset classes, ranked from best to
The Renaissance of Stable Value In this paper, we Seek to
worst.The Collection includes 10 additional variations.
answer questions about stable value funds,and how they have
Spotlight:Six Key Themes Callan reflects on some of the ongo- evolved since the financial crisis.
ing trends within institutional investing and considers how they may
Real Assets Reporter,Winter/Spring 2016 In
develop in the coming year. -.
this issue, we look at implementing diversified
Inside Callan's Database,4th Quarter 2015 This report graphs .. real asset portfolios,focusing on a process that
performance and risk data from Callan's proprietary database - helps evaluate financial and operational risks.
alongside relevant market indices.
U.S.Equity Benchmark Review This annual report compares
Capital Market Review,4th Quarter 2015 Insights on the econo- CRSP, Russell, and S&P index metrics alongside Callan Active
my and recent performance in equities,fixed income,alternatives, Manager Style Groups.
real estate,and more.
DC Observer,4th Quarter 2015 Cover story:In-Plan Annuities:
Market Pulse Flipbook,4th Quarter 2015 A quarterly reference The Stuff That Dreams Are Made Of7
guide covering investment and fund sponsor trends in the U.S.
The Costs of Closing: Nuclear Decommissioning Trusts In
economy,the capital markets,and defined contribution.
this video,Julia Moriarty discusses hedging costs,the Impact of
October Regional Workshop Summary We reviewed real license extension,and more.
assets and the implementation implications of building out a
Private Markets Trends,Winter 2016 Gary Robertson summa-
robust real assets allocation in portfolios.
dzes the market environment, recent events, performance, and
Capital Market Projections This charticle summarizes key fig. other issues involving private equity.
ures from Callan's 2016 capital market projections.
The Center for Investment Training
Events Educational Sessions
Miss out on a Callan conference or workshop? Event summa- The Center for Investment Training, better known as the"Callan
des and speakers' presentations are available on our website: College;provides a foundation of knowledge for industry profes-
https://w ..cellan.com/education/Cll/ sionals who are involved in the investment decision-making pro.
Our next Regional Workshop,June 28 in Atlanta and June 29 cess.It"a founded in 1994 to provide clients and non-clients alike
in San Francisco,will consist of two separate one-hour presen- with basic to intermediate-level instruction.Our next session is:
tations given by our specialists.This year,we look at the impact Introduction to Investments
the Pension Protection Act has had on defined benefit and de- San Francisco, CA,July 19-20, 2016
fined contribution retirement plans a decade after its enactment, Chicago,IL, October 16-19, 2016
and look ahead to the next 10 years. This session familiarizes fund sponsor trustees, staff, and asset
Save the date for our fall Regional Workshop, October 25 in management advisors with basic investment theory.terminology,
New York and October 26 in Chicago,and our National Confer- and practices. It lasts one-and-a-half days and is designed for in-
ence,January 23-25,2017,at the Palace Hotel in San Francisco. dividuals who have less than two years of experience with asset-
management oversight and/or support responsibilities.Tuition for
For more information about events,please contact Barb Get- the Introductory "Callan College" session is $2,350 per person.
rely:415.974.50601 institute@callan.com Tuition includes instruction, all materials, breakfast and lunch on
each day,and dinner on the first evening with the instructors.
Customized Sessions
The 'Callan College" is equipped to customize a curriculum to
meet the training and educational needs of a specific organization.
These tailored sessions range from basic to advanced and can
take place anywhereeven at your office.
Learn more at https:ihw .callan.com/education/collage/or
contact Kathleen Cu nnie:415.274.3029/can nie@callan.com
Education: By the Numbers
500 Attendees(on average)of the 50+ Unique pieces of research the
Institutes annual National Conference Institute generates each year
300 Total attendees of the'Callan 1980 Year the Callan Investments
p College since 1994 Institute was founded
"We think the best way to learn something is to teach it.
Entrusting client education to our consultants and specialists
ensures that they have a total command of their subject
matter. This is one reason why education and research have
been cornerstones of our firm for more than 40 years:'
Ron Peyton,Chairman and CEO
Callan 9 @CallanAssoc ®Callan Associates
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 riscraward
tradeoff for diverging from the index when the index is mandated to be the"riskless"market position.
Information Ratio measures the managers 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
28
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 retum" by the portfolio's risk level
(standard deviation).The result is a measure of return gained per unit of risk taken.
Sortino Ratio is a downside risk-adjusted measure of value-added. It measures excess return over a benchmark divided by
downside risk. The natural appeal is that it identifies value-added per unit of truly bad risk. The danger of interpretation,
however, lies in these two areas: (1)the statistical significance of the denominator,and (2)its reliance on the persistence of
skewness in return distributions.
Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their
sample mean. Standard deviation is used as an estimate of risk since it measures how wide the range of returns typically is.
The wider the typical range of returns,the higher the standard deviation of returns,and the higher the portfolio risk. If returns
are normally distributed (ie. has a bell shaped curve distribution) then approximately W of the returns would occur within
plus or minus one standard deviation from the sample mean.
Total Portfolio Risk is a measure of the volatility of the quarterly excess returns of an asset. Total risk is composed of two
measures of risk: market(non-diversifiable or systematic)risk and residual(diversifiable or unsystematic)risk. The purpose
of portfolio diversification is to reduce the residual risk of the portfolio.
Tracking Error is a statistical measure of a portfolio's risk relative to an index. It reflects the standard deviation of a
portfolio's individual quarterly or monthly returns from the index's returns. Typically,the lower the Tracking Error, the more
"Index-like"the portfolio.
Traynor Ratio represents the portfolio's average excess return over a specked 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
29
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-
highesl 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-tows take into account any put or call options embedded in the security, any expected
sinking-fund paydowns or any expected mortgage principal prepayments.
Average Price-The average price is equal to the portfolio market value divided by the number of securities in the portfolio.
Portfolios with an average price above par will tend to generate more current income than those with an average price below
par.
Average Years to Expected Maturity-This is a measure of the market-value-weighted average of the years to expected
maturity across all of the securities in the portfolio. Expected years to maturity takes into account any put or call options
embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments.
Average Years to Stated Maturity- The average years to stated maturity is the market value weighted average time to
stated maturity for all securities in the portfolio. This measure does not take into account imbedded options, sinking fund
paydowns,or prepayments.
Current Yield-The current yield is the current annual income generated by the total portfolio market value. It is equal to the
total portfolio coupon payments per year divided by the current total portfolio market value.
Callan
30
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 portfolios ('bulletness"). The purpose of this statistic is to gauge the "bullelness" 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
31
Disclosures
Callan l
Quarterly List as of
March 31, 2016
List of Callan's Investment Manager Clients
Confidential—For Callan Client use Only
Callan takes its fltluciary and disclosure responsibili ies to clients very seriously.We recognize that there are numerous potential conflicts of interest
encountered in the investment consulting industry and NM it is our responsibility to manage those conflicts effectively and in the best interest of our
clients. At Callan,we employ a robust process to Identify,manage,monitor and disclose potential conflicts on an on-going basis.
The list below Is an Important component of our conflicts management and disclosure process. It identifies those investment managers that pay Callan
fees for educational,consulting,software,database or repoNng products and services. We update the list quartedy because we believe that our fund
sponsor clients should know the investment managers that do business with Callan,particularly those investment manager clients that the fund sponsor
clients may be using or considering using.Please rater to Callan's ADV Part 2A for a more detailed description of the services and products that Callan
makes available to investment manager clients through our Institutional Consulting Group,Independent Adviser Group and Fund Sponsor Consulting
Group. Due to the complex corporate and organizational ownership structures of many investment management firths,parent and afiliats firth
relationships are not indicated on our list.
Fund sponsor clients may request a copy of the most currently available list at any time.Fund sponsor clients may also request spedfic information
regarding the fees paid to Callan by particular fund manager clients. Per company policy.information requests regarding fees are handled exclusively
by Callan'a Compliance Department.
Manager Name Manager Name
13D Management Brown Brothers Harman&Company
1607 Capital Partners,LLC Gambier Investors,LLC
Aberdeen Asset Management PLC Capital Group
Acadian Asset Management LLC Cal Management,LLC
AEGON USA Investment Management Causeway Capital Management '
Affiliated Managers Group,Inc. Charles Schwab Investment Management
AllianceBernstein Chartwell Investment Partners —
Allianz Global Investors ClearBridge Investments,LLC
Alders,Life Insurance Company of North America Cohen&Steers Capital Management,Inc. —
Alph ri Investment Services Columbia Management Investment Advisers,LLC
American Century Investment Management Columbus Circle Investors
Amundi Smith Breeden LLC Corbin Capital Partners,L.P.
Analytic Investors Cornerstone Capital Management
Angelo,Gordon&Co. Cramer Rosenthal McGlynn,LLC
Apollo Global Management Crawford Investment Counsel,Inc.
AOR Capital Management Credit Suisse Asset Management
Ares Management LLC Crestiine Investors,Inc.
Adel Investments,LLC DE Shaw Investment Management,LLC
Aristotle Capital Management,LLC Delaware Investments
Artisan Holdings Di ince,Race&Zollo,Inc.
Atlanta Capital Management Co.,LLC Deutsche Asset Management
Aviva Investors Americas Diamond Hill Investments
AXA Investment Managers Duff&Phelps Investment Mgmt.Co.
Babson Capital Management Eagle Asset Management,Inc.
Baillie Gifford Overseas Limited EARNEST Partners,LLC
Baird Advisors Eaton Vance Management
Bank of America Epoch Investment Partners,Inc.
Baring Asset Management Fayez Samfim&Company
Baron Capital Management,Inc. Federated Investors
Bartow,Hanley,Mewhinney&Strauss,LLC Fidelity Institutional Asset Management
BlackReck Fie.Capital Global Asset Management
BMO Asset Management,Corp. First Eagle Investment Management,LLC
BNP Paribas Investment Partners First Hawaiian Bank
BNV Mellon Asset Management Fisher Investments
Boston Partners Fort Washington Investment Advisors,Inc.
grandma Investment Partners,L.P. Franklin Templeton Institutional
Brandywine Global Investment Management,LLC Fred Alger Management.Inc.
Callan I Knowledge.Experience.Integrity. Page 1 of 2
Manager Name Manager Name
Fuller&Thaler Asset Management,Inc. Opus Capital Management Inc.
GAM(USA)Inc. Pacific Investment Management Company
GE Asset Management Parametric Portfolio Associates
GMO Peregrine Capital Management,Inc.
Goldman Sachs Asset Management PGIM
Grand-Jean Capital Management PineBndge Investments
Guggenheim Investments Pinnacle Asset Management L P.
Guggenheim Real Estate LLC Pioneer Investments
GW&K Investment Management PNC Capital Advisors,LLC
Harbor Capital Group Trust Poll Capital Management
Hartford Funds Principal Global Investors
Hartford Investment Management Co. Private Advisors,LLC
Henderson Global Investors Putnam Investments,LLC
Hotchkis&Wiley Capital Management,LLC QMA(Quantitative Management A�
HSBC Global Asset Management BBC Global Asset Management
Income Research a Management,Inc. Regions Financial Corporation
Insight Investment Management Limited RidgeWorth Capital Management,Inc.
Institutional Capital LLC Rockefeller&Co.,Inc.
INTECH Investment Management,LLC Rothschild Asset Management,Inc.
Invesco Russell Investments
Investec Asset Management Santander Global Facilities
Janus Capital Management,LLC Schroder Investment Management North America Inc.
Jensen Investment Management Scout Investments
J.P.Morgan Asset Management SEI Investments
KeyCorp Seminole Advisory Services,LLC
Lazed!Asset Management Smith,Graham&Co.Investment Advisors,L.P.
Legal&General Investment Management America Smith Group Asset Management
Lincoln National Corporation Standard Life Investments Limited
LMCG Investments,LLC Standish
Longview Partners Seats Street Global Advisors
Loomis,Bayles&Company,L.P. Stone Harbor Investment Partners,L.P.
Lord Abbett It Company Systematic Financial Management
Los Angeles Capital Management T.Rowe Price Associates,Inc.
LSV Asset Management Tapir,Canida&Habacht
MacKay Shields LLC The Boston Company Asset Management,LLC
Man Investments Inc. The Hartford
Manulife Asset Management The London Company
Martin Come Inc. The TCW Group,Inc.
Mellon Capital Management Tri-Star Trust Bank
MFS Investment Management UBS Asset Management
MidFirst Bank Van Eck Global
Mondrian Investment Partners Limited Versus Capital Group
Montag&Caldwell LLC Victory Capital Management Inc.
Morgan Stanley Investment Management Vontobel Asset Management,Inc.
Mountain Lake Investment Management LLC Voya Investment Management hka ING)
MUFG Union Bank,N.A. Waddell&Reed Asset Management Group
Neuberger Berman WCM Investment Management
Newton Capital Management WEDGE Capital Management
Nicholas Investment Partners Wellington Management Company,LLP
Nikko Asset Management Co.,Ltd. Wells Capital Management
Northern Trust Asset Management Western Asset Management Company
Nuveen Investments,Inc. William Blair&Company
OR Global Asset Management
Old Mutual Asset Management
Callan I Knowledge.Experience.Integrity. Page 2 of 2
Investment Report
Orange County Sanitation District
Period Ending
March 31, 2016
Diego, CA 92121 1 Phone :0
R I Table of Contents
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 1
Economic Update
011 Economic Update
■ The Federal Open Market Committee (FOMC) left policy rates unchanged in March. The minutes from the March
FOMC meeting highlighted the debate among policymakers about the appropriate pace of monetary policy
normalization.Two Fed members (including the lone dissenter among voting members, Esther George) were pushing
for a 25 basis point rate hike at the March meeting. Meanwhile, other Fed members expressed concern about raising
rates too quickly. Several policymakers expressed the view that economic and financial conditions abroad posed risks
to the US economy and labor market. Some officials suggested that a rate hike in April might signal a sense of
urgency that was not appropriate, while others thought that a rate hike in April might be warranted. Meanwhile
policymakers also discussed whether inflation was approaching a normal pace or if it remained too weak. Based on
our view of the overall economy and our interpretation of recent comments made by members of the Fed, we believe
a fed funds rate hike at the upcoming April 26-27 FOMC meeting is unlikely. However, we believe the door remains
open for a 25 basis point hike in June, and potentially another 25 basis point hike at the end of this year.
■ Domestic economic data is generally favorable. Labor market trends continue to improve, consumer confidence is
strong, and housing trends remain healthy. In addition, manufacturing trends seem to be improving. Payrolls have
increased by an average of 209,000 per month over the past three months. Meanwhile, inflation pressures remain
contained. Fourth quarter 2015 GDP grew at a stronger than expected annualized pace of 1.4%, following growth of
2.0%in the third quarter. Market participants are forecasting GDP growth of about 1.2% in the first quarter of 2016.
■ In March, the Treasury yield curve steepened slightly, with the 2-year Treasury yield down five basis points and the 10-
year Treasury yield up three basis points. We believe the modest decline in shorter-term yields was influenced by
largely dovish comments made by members of the FOMC during the month. Even though inflation remains contained
for now, which gives the Fed more leeway to remain highly accommodative, we believe strong labor market trends
leave the door open for the Fed to continue normalizing monetary policy this year. We believe two more 25 basis point
fed funds rate hikes before year-end are possible. Ongoing uncertainty about monetary policy and how the Fed
communicates its economic projections will likely continue to fuel financial market volatility.
CiIII Employment
Nonfarm Payroll (000's) Unemployment Rate
350 15.0%
14.0% —UM—ployment Rab(U6)
3W 13.0% —Unempbyment Rate(W)
w 12.0%
8 250
11.0%
200 u 10.0%
c
c 150 � 9.0%
V 8.0%
i
0 iDD V 7.0%
50 6.0%
5.0%
0 4.0%
44,>a % ID,'c
>a
Scu :USUe da nfof Labw Soule:USCepaN t&LaGr
The March employment report was stronger than expected. Nonfarm payrolls rose by 215,000 in March, exceeding the consensus
forecast of 205,000. January and February payrolls were revised down slightly by a net total of 1,000. The unemployment rate inched up
to 5.0%from 4.9%,as the participation rate increased to 63.0%from 62.9%. A broader measure of unemployment called the U-6, which
includes those whom are marginally attached to the labor force and employed part time for economic reasons, also ticked up to 9.8%
from 9.7%. Wages rose 0.3% in March, exceeding expectations. During the first quarter of 2016, payrolls increased by an average of
209,000 per month, compared to the trailing six-month average of 246,000. Overall, the March jobs report paints to ongoing strength in
the labor market.
llll�
OR I Consumer
Retail Sales YOY % Change Consumer Confidence
6.0% 110
5.0% 105
m 4.0% 100
r
u > 95
3.0%
9u 90
�j 2.0% -
c 85
1.0% ik" 80
0.0% 75
y4 �p q4 410,
^'
J4 'i" Q J4 % �` 42'JS ��1.Js �S OBCL'S /. 1
44A Js �R /94 04 iI.s�9�s41 /�S ' b4'�i/.6
Source: 76
US Department d Com . Source:Federal Reserve
Retail sales trends remain undenvhelming. On a year-over-year basis, retail sales were only up 1.7% in March, down from 3.7% in
February. Excluding gas, retail sales were up 3.3% in March, down from 5.4% in February. Retail sales decline 0.3%on a month-over-
month basis in March, below expectations for a 0.1% increase. Meanwhile, the consumer confidence index increased to 96.2 in March
from 94.0 in February. We believe ongoing improvement in the labor market and low gas prices should eventually provide a tailwind to
consumer spending.
s
ORS Economic Activity
Leading Economic Indicators (LEI) Chicago Fed National Activity Index
1 2% (CFNAI)
oso
1.0% 0.40
0.8% 0.30 A-A
u
0.6% 0.20
i
� 0.4% < 0.10
0
n 0.00
.2%
m -0.10
0.0
-Q20
-0.2% -a30
-0.4% ,L q, 440
�k �h %a +�L, @S, 44h �a
7s 110
74 7Y ly 71, 76 76 I6 76 76
Source:the COMerence Bo M Sourrz.'Fe0 l Reserve Bank o/Chicago
The index of Leading Economic Indicators (LEI) rose 0.1% in February, following a 0.2%decline in January. On a year-over-year basis,
the LEI was up 2.3% in February vs. up 2.1% in January. The index points to modest economic growth with little chance of an economic
downturn in the near-term. The Chicago Fed National Activity Index (CFNAI) 3-month moving average improved to -0.07 in February
from -0.12 in January. Overall, this index is indicative of below-average economic activity. A reading below-0.70 on a 3-month moving
average basis has historically corresponded with the onset of a recession;fortunately the CFNAI remains safely above that level.
CillI Housing
Housing Starts S&P/CaseShiller20 City Composite Home
1400 4.0% Price Index
•Mull FaMly Houalrp 5@M
1266 •Single Family Wu®np5hrb 12.0%
°u 1000 10.0%
g m
800 a 8.0%
L
F- U
600 a 6.0%
eu >
c 400 of 4.0%
U
200 2.0%
f
p y 0.0% �Ay,
9S, yah Kok 95. "4�y �G9. Kok 65. 11
"•) �4l CIII 1R•) �•) "4J 41) ^)
74 IV �r �A 7S 7S �S �S 7SR A 4 S S S S S
Souse:us Census Bureau S—u S&P
Total housing starts rose 5.2% on a month-over-month basis in February, exceeding expectations. Single-family housing starts grew
7.2% while multi-family starts rose 0.8%. Housing starts tend to be volatile on a month-to-month basis, but the underlying trend is solid
with total housing starts up 30.9% on a year-over-year basis. Overall, we believe housing market trends remain healthy. Meanwhile,
home pricing has remained firm. According to the Case-Shiller 20-City home price index, home prices remained up 5.7% year-over-
year in January.
iiiiia
C1111 Manufacturing
Institute of Supply Management Purchasing Capacity Utilization
Manager Index 80.0%
so
Expanding 79.5%
58 An 79.0%
8.5%
56
78.0%
X 77.5%
77.0%
52 8 76.5%
6.0%
50 CenlraNing 75.5%
48 75.0%
74.5%
46 74.0%
41,IV 'iJ.7A 'Ain �84� `x.7s �xl.7s ^Ale O`�.`I& le y9,�A il,4 79 Oaq�A �S ��7$ �"o 7e E
Scarce:le difule lar Supply Management Source:FeEeml Reserve
The Institute for Supply Management(ISM)manufacturing index rose to 51.8 in March from 49.5 in February, which puts the index above
the 50.0 breakeven level for the first time since last fall. The ISM new orders index surged roughly 7 points to 58.3 in March. Overall,the
ISM manufacturing report suggests that trends in the manufacturing sector are improving. Notably, a reading above 43.1 over a period
of time is generally indicative of overall economic expansion, based on the historical relationship between the index and GDP growth.
Meanwhile, capacity utilization, which is production divided by capacity, declined to 74.8% in March from 75.3% in February. The
capacity utilization rate is much lower than the long-run average of 80.0% (1972-2015), suggesting there is still excess capacity in the
industrial sector.
�jjjj Gross Domestic Product (GDP)
Com,Ponents of GDP 3/15 6/is 9/is 12/15 Gross Domestic Product(GDP)
5.0%
Personal consumption Expenditures 1.2% 2.4% 2.0% 1.7%
4.0%
Gross Private Domestic Investment 1.4% 0.9% -0.1% -0.2% 3.0%
2.0
Net Exportspar and Imparts -1.9% 0.2% -0.3% -0.1%
0%
Federal Government Expenditures 0.1% 0.0% 0.0% 0.2% 0.0%
StateaM Local(Consumption and Gross -'.0% =GDP WQ%Lh"e
Inves[mea) -0.1% 0.5% 0.3% -0.1% GDP YQY%cnarge
-20% p� Q �s� .s� Q w�
Total 0.7% 3.9% 2.0% 1.4% "per 0 "Qo"A,ok'�2�Ok�0 011�%IV %QV%keO,1s
Source: USDepart of or Commerce source: US CepaNnent of Comnn2e
Fourth quarter GDP growth was revised up again to 1.4% from the second estimate of 1.0%. The initial estimate was 0.7%.A boost to
personal consumption expenditures was the primary source of the most recent upward revision. Market participants are forecasting
GDP growth of about 1.2% in the first quarter of 2016.
Chill Inflation
Consumer Price Index (CPI) Personal Consumption Expenditures
3.0% 3.0% (PCE)
CPI YOY%Change
2.5% Oeflator—Can CPI YOY%CM1ange 25% -PCE Core—PCE e rela YOY%CM1ange
w YOY%CM1e,ge
0 2.0% 0 2.0%
° O1
s 1.5% 1.5%
U
Y1.0% 1.0%
0.5% }
0.5%
0.0% 0.0%
-0.5% -45%
Ql �h �Ok Q5. h �Ok �1.
�4 �6
Source:US Department of Lab Source:US Department of Labor
Inflation pressures remain contained for now. The Consumer Price Index (CPI) was up just 0.9% year-over-year in March, vs. 1.0%in
February. Core CPI (CPI less food and energy) was up just 2.2% year-over-year in March, vs. 2.3% in February. The Personal
Consumption Expenditures (PCE) index was up 1.0% year-over-year in February, vs. up 1.3% in January. Core PCE (excluding food
and energy)was up 1.7%year-over-year in February, unchanged from January. PCE remains below the Fed's 2.0%target.
0111 Bond Yields
US Treasury Note Yields US Treasury Yield Curve
3.0% 3.5%
2-Year Mar-18
svaar 2.5% 3.0% �0ec-u
� m-year
�Marv15
2.0 2.5%
%
X X 2.0%
v_ 1.5% a
Y 5: 1.5%
1.0%
0.5%
0.5%
0.0% 0.0%
y0,�6 d 6q 2 y S l 70 3p^
l�4 �IA �41 �IV 4S �4S ��S �S � -0
Source:S mbe Soure BlmnNierg
During the first quarter, the yield curve flattened with the 2-year Treasury yield down about 33 basis points and the 10-year Treasury
yield down about 50 basis points. Over much of the past year,financial market volatility has been elevated due to weak global economic
growth, declining commodity prices, and divergent global central bank monetary policy. These concerns will likely continue to fuel
financial market volatility over the medium-term.
IIIIIIIII�
S=
Account Profile
`,1
0111 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.
Cjjjj Compliance
C/" Orange County Sanitation District Long Term
March 31,2016
COMPLIANCE •
Assets managed by Chandler Asset Management are in full compliance wth State lawand wilt the investment policy
Comment
Treasury Issues 5 years maximum maturity Complies*
Supmnational "AA"or better by l of NRSROs; 30%mapmum; 5%max; 5years maturity, Complies
Includes only: IADB IBRD and IFC per CGC
U.S.Agencies 20%maxissuer; 5yearsmaxlmummaturity Complies
U.S.Corporate(MTNs) "A"or better long term rating by 1 of 3 NRSROs; 30%maximum;5%max issuer; 5 Complies*
years max maturity
Municipal Securities W'or higher by l of 3 NRSROS;10%maximum; 5%max issuer; 5years maximum Complies*
maturity
Asset Backed/CMOs/ "AA"or better by l of 3 NRSROs; "A"or higher issuer rating by l of 3 NRSROs; 20% Complies*
Mortgage-backed maximum; 5%max issuer(excluding MBS/ ovtagency);5 ars max maturity
Negotiable CDs "A"or better on its long term debt by l of NRSROs; "A1/P1"or highest short term Complies
retings by of 3 NRSROs; 30%maximum;5%max issuer; 5 years max maturity
CDs/TDS 5%max issuer; 5years max maturity Complies
Bankers Acceptances A-1,or equivalent Nghest shortterm rating by l of 3 NRSROS; 40%maAmirn; 5% Complies
max issuer,180 days max matunty
Commercial Paper A-1,or equivalent by 1 of 3 NRSROS; "A"or better by 1 of 3 NRSROs,if long term Complies
debt issued; 25%maxim un' 5%max issuer 270 days max maturity
Money Market Fund Highest rating by 2 of 3 NRSROs; 20%maximum; 10%max issuer Complies
Repurchase Agreements 102%collatemlization Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
A reements
LAIF Not used by investment adviser Complies
Avg Duration Not to exceed 60 months - (80%to 120%of the benchmark) Complies
Maxi mum Maturity 5 years maximum maturity Complies*
'The portfolio has twentysevan(27)securities with mantles greater than 5 years including one(1)ABS,Ave(5)CMOs,algMeen(18)MBS,one(1)municipal,one(1)
corporate and one(1)treasury. All securities were inherited from the prsmws manager and complietl at time of purchase.
11% Account Profile
Portfolio Characteristics
Orange County Sanitation District Long Term
03/31/2016 12/31/2015
Benchmark` Portfolio Portfolio
Average Maturity(yrs) 2.71 2.93 2.87
Modified Duration 2.59 2.48 2.42
Average Purchase Yield n/a 1.40 % 1.30
Average Market Yield 1.07 % 1.03 % 1.32 %
Average Quality— AAA AA+/Aar AA+/Aa1
Total Market Value 319,600,409 314,764,605
'BAML 1-5 Yr US CorporatelGovt Rated AAA-A Index
Benchmark is a blended rating of S&P,Moody's,and Fitch.Portfolio is S&P and Moody's respectively.
Multiple securities were purchased across the Treasury, Agency, Supranational, Asset Backed, Commercial Paper, and
Corporate sectors of the market to keep the portfolio structure and duration in-line with Chandler objectives. The
purchased securities ranged in maturity from June 2016 to March 2021. One security was sold and four matured to help
facilitate the additions to the portfolio.
Sector Distribution
Orange County Sanitation District Long Term
March 31, 2016 December 31, 2015
Comrertlal us
Pep- us Cu19.8°e MBS
2.0% Carpoma
21.2% 0.8
Commemial
Munklpal Paper—
Ba s 2.6%
1.5%
Municipal
Morey MBS Balls
Markel 0.8% 1.5%
FuM
FI Ma
1.6% Markel
Fund
CMO FI
1.1% US /
Treasury cMo Treasury 35
32.9% 1.1% 35.4%
B%A a BS
6.0 0%%
Supmnational Supranational
Agenpy 47% A 4.1 %
enc
26.19 A Y
23.9%
The sector allocation was relatively stable. Some of the larger changes include the 2.8% increase in the Agency
allocation to 26.7% of the portfolio, partially offset by the 2.5% decline in the Treasury allocation, to 32.9% of the
portfolio.
Issuers
C/" Orange County Saniuldon District Long Term Issuer Report
Accountp10268 Asnl&312016
Government of United Stares US Treasury 32.85%
Federal Home Loan Bank Agency 9.62%
Federal Home Loan Mortgage Corp Agency 8.64%
Federal National Mortgage Association Agency SA2%
Toyota ABS ADS 2.62%
Honda ABS ABS 2.15%
John Deere ABS ABS 2.01%
Bank ofTokyo-Mit UFJ Commercial Paper 1.99%
Wells Fargo Corp US Corporate 1.76%
1P Morgan Chase&Co US Corporate 1.71%
Toyota Motor Corp US Carpram 1.63%
General Electric Cc US Corporate 1.62%
Qualcomm Inc US Corporate 1.62%
Drefus Treasury MMKT FD 521 Money Market Fund FI 1.61%
Deere&Company US Corporate 1.60%
Imematioml Finance Corp Supranatienal 1.59%
Into.American Dew Bank Summational 1.57%
Intl Bank Raeon and Development Summational 1.57%
Bank ofAmerica Corp US Corpora IA7%
HSBC USA Corp US Corporate 1.33%
Honda Motor Corporation US Corporate L28%
Eli Lilly&Cc US Corporate 1.28%
Chs,.Texaco Corp US Corporate 1.25%
Morgan Stanley US Corporate 1.01%
American Express Credit US Corporate 1.00%
Pon Authority of New York and New Jersey Municipal Bonds 0.38%
JP Morgan ADS ADS 0.78%
Federal Home Loon Mortgage Corp CMO 0.73%
Bonk ofNcw York US Corpormc 0.68%
Federal National Mortgage Association MBS 0.66%
Intel Corp US Corporate 0.63%
Occidental Petroleum Corporation US Corporate 0.63%
New York City Transitional Finance Authority Municipal Bonds OAS%
KI Issuers Continued
OROrange County Sanitation District Long Term Issuer Report
Account#10268 As of 3/31/2018
Exxon Mobil Corp US Cotpomte 0.48%
Goldman Sachs loc. US Coryomm 010%
Federal National Mongage Association CMO 0.17%
NCUA Guaraateed Notes CMO 0.15%
University ofCalifomia Municipal Bond 0.14%
GNMA MBS 0.09%
AMRESCO Residental Securities Corp MBS 0.04%
Small Business Administration ABS 0.03%
GNMA CMO 0.01%
SLM Corp ABS 0.01%
Soundview Home Equity Loan Trust MBS 0.00%
Federal Home Loan Mortgage Corp MBS 0.00%
Total 100.00%
Quality Distribution
Orange County Sanitation District Long Term
March 31, 2016 vs. December 31, 2015
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
qqA AA A <A NR
3131116 12131115
AAA AA A <A NR
3131/16 12.0% 70.4% 10.2% 3.5% 3.9%
12/31/15 13.8% 69.9% 8.5% 4.2% 3.6%
Source:S&P Ratings
Duration Distribution
Orange County Sanitation District Long Term
March 31, 2016 vs. December 31, 2015
25.0%
20.0%
15.0%
10.0%
5.0%
ul I I Ar--1
0-0.25 025-0.50 0.50-1 1-2 2-3 3-4 4-5 5-
3I31=18 W 1=31=15
0-0.25 0.25-0.50 0.50-1 1 -2 2-3 3-4 4-5 5+
3/31116 7.0% 5.5% 9.7% 24.4 % 12.2 % 24.2% 13.8% 3.3%
12131115 13.8% 1.2% 11.1 % 20.9% 13.8% 23.4% 12.2% 3.6%
Duration Distribution
Orange County Sanitation District Long Term
Portfolio Compared to the Benchmark as of March 31, 2016
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
0-0.25 025-0.50 0.50-1 1-2 2-3 3-4 4-5 5+
= Powdio 11 BnadnarR•
0-0.25 0.25-0.50 0.50-1 1 -2 2-3 3-4 4-5 5+
Portfolio 7.0% 5.5% 9.7% 24.4% 12.2% 24.2% 13.8% 3.3%
Benchmark' 0.9% 0.1 % 4.1 % 30.7% 27.0% 22.5% 14.6% 0.0%
BAML 1-5 Vr US CorporatelGov Rated AAA-A Index
The duration of the portfolio modestly extended, currently 2.48 versus 2.42 at the end of the prior reporting period. The
Chandler team anticipates keeping the duration of the portfolio close to the benchmark in the coming quarter as global
economic uncertainty and central bank policy abroad is likely to keep any move higher in US interest rates contained.
,`,Jjj Investment Performance
Orange County Sanitation District Long Term
Period Ending
March 31, 2016
Total Rate of Return
Annualized Since Inception
November 30,2014
2.00%
1.50%
1.00%
0.50%
0.00%
12 months 2years 3years 5years 10 years Since Inception
Orange County Sanitation Datict Lang Term = BAML 1-5 Yr US Corperste/Govt Rated AAA-A Index
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since Inception
Orange County Sanitation District Long Term 1.54% 1.58% N/A N/A N/A N/A 1.63%
BAML 1-5 Yr US Corporatei Rated AAA-A Index 1.56% 1.68% N/A N/A N/A N/A 1.74%
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 lasses in the portfolio.
Compliance
OROrange County Sanitation District Liquid
March 31,2016
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler Asset Management are in full compliance with State lawand wth the investment policy
Category Standard Comment
Treasury Issues 1 year maximum maturity Minimum allocation of 10% Complies
Supranational "AA"or better by l of 3 NRSROs; 30%maximum; 5%max; 1 Complies
war maturity; Includes only, IADB BIRD,and IFC per CGC
U.S.Agencies 20%max issuer, l year maximum maturity Complies
U.S.Corporate(MTNs) "A"or better long tern rating by 1 of 3 NRSROs;30%mapmum; Complies
5%max issuer 1 war max maturty
Asset Backed/CMOs "AA"or better by l of 3 NRSROs; "A"or higher issuer rating by l Complies
of NRSROs; 20%maximun; 5%max issuer, 1year max
maturity
Negotiable CDs "A"or better on its long term debt by I of NRSROs; "A1/P1"or Complies
highest short tern ratings by 1 of 3 NRSROs; 30%maximum;5%
max issuerl war max maturity
CDs/TDS 5%max issuer, l year max maturity Complies
Bankers Acceptances A-1,or equivalent shod term rating by l of 3 NRSROS; 40% Complies
maximum; 5%max issuer'180 days max maturity
Commercial Paper A-1,or equivalent by l of 3 NRSROS; "A"or better by l of Complies
NRSROs,if long tens debt issued; 25%maximum; 5%max
issuer, 270 days max maturity
Money Market Fund Highest rating by 2 of NRSROs; 20%maximum;10%max issuer Complies
Repurchase Agreements 102%collateraliation Complies
Reverse Repurchase 5%maximum,90 days max maturity Complies
Agreements
LAIF Not used by investment adviser Complies
Prohibited Municipal Securities Complies
Prohibited Mortgage Securities Complies
Avg Duration Not to exceed 180 days; Max duration of 1/2 year Complies
Maximum Maturity 1 year maximum maturity Complies
11% Account Profile
Portfolio Characteristics
Orange County Sanitation District Liquid
03/31/2016 12/31/2015
Benchmark` Portfolio Portfolio
Average Maturity(yrs) 0.13 0.27 0.21
Modified Duration 0.13 0.27 0.21
Average Purchase Yield n/a 0.58 % 0.38
Average Market Yield 0.14 % 0.46 % 0.41 %
Average Quality— AAA AA+/Aar AAA/Aai
Total Market Value 63,791,781 131,961,724
'BAML 3-Month US Treasury Bill Index
Benchmark is a blended rating&S&P,Moodys,and Fitch.POMolio is S&P and Moody's respectively.
Many securities were purchased across the Treasury, Agency, Supranational, Commercial Paper, and Corporate sectors
of the market to redeploy proceeds generated in the account versus upcoming forecasted liquidity needs. Multiple
securities matured as well to help facilitate the$68 million withdrawn from the portfolio during the reporting period.
��" Sector Distribution
Orange County Sanitation District Liquid
March 31, 2016 December 31, 2015
N,ane`I Commerci�
US N�ark et 'Pew
Corporate Rmtl 6.4%
14.2% FI
98
US
Corporate
Commercial S We%
Paper Treasury
39% 409°0 t,
US
Treasury
31.1%
Money /
Market negotiable Agency
Fun CD 393%
F1 1.8% . negatiabk
fi.6%
CD
/ 08%
Agency Supranational
21.1% 11.6% Supranabonal
1.9%
The sector allocation changed materially primarily driven by the large cash outflows experienced during the quarter.
Some of the large changes include the 9.8%and 9.9% increase in the Treasury and Supranational allocations, offset by
the 18.2%decline in the Agency allocation.
Issuers
C." Orange County Sanitation District Liquid Issuer Report
Account#10282 As of 313112016
Govemment of United States US Treasury 40.98%
Federal Home Loan Bank Agency 1627%
Drefus Treasury MMKT FD 521 Money Market Fund Fl 659%
Intl Bank Boom and Development Supranational 3.93%
International Finance Corp Supranational 3.93%
Inter-American Dev Bank Suprenmional 3.92%
Federal Home Loan Mortgage Corp Agency 3.13%
Bank of Tokyo-Mit UFJ Commercial Paper 2.00%
Toyota Motor Corp Commercial Paper 1.98%
Federal Farm Credit Bank Agency 1.69%
US Bancorp US Corporate 1.59%
Bank of New York US Corporate IS8%
Berkshire Hathaway US Corporate 158%
Honda Motor Corporation US Corporate IS8%
Deere&Company US Corparme 158%
General Electric Co US Corpomte 1.58%
Coca We Co. US Corporate 158%
Wells Fargo Corp US Corporate 157%
JP Morgan Chase&Cc US Corporate 1.57%
Rabobank Nederland NY NY Negotiable CD 157%
Total 100.00%
Quality Distribution
Orange County Sanitation District Liquid
March 31, 2016 vs. December 31, 2015
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
qqA AA A <A NR
3131116 12131115
AAA AA A <A NR
3/31116 41.3% 47.6% 9.5% 0.0% 1.6%
12/31/15 67.7% 23.1 % 8.5% 0.0% 0.8%
Source:S&P Ratings
Duration Distribution
Orange County Sanitation District Liquid
March 31, 2016 vs. December 31, 2015
80 0,
60.0%
40.0%
20.0%
0.0%-]
0-0.25 025-0.50 0.50-1 1-1.5 1.5-2 2-2.5 2.5-3 3-
31 IM16 = 12M 2015
0-0.25 0.25-0.50 0.50-1 1 -1.5 1.5-2 2-2.5 2.5-3 3+
3/31116 63.2% 30.5% 6.3% 0.0% 0.0% 0.0% 0.0% 0.0%
12131/15 69.9% 19.4% 10.7% 0.0% 0.0% 0.0% 0.0% 0.0%
Duration Distribution
Orange County Sanitation District Liquid
Portfolio Compared to the Benchmark as of March 31, 2016
120.0%
100.0%
60.0%
60.0%
404%
20.0%
0-0.25 0.25-0.50 0.50-1 1-1.5 1.6-2 2-2.5 2.5-3 Y
Patblb wil BenoMnerk'
0-0.25 0.25-0.50 0.50-1 1 -1.5 1.5-2 2-2.5 2.5-3 3+
Portfolio 63.2% 30.5% 6.3% 0.0% 0.0% 0.0% 0.0% 0.0%
Benchmark' 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
`BAML 3-Month US Treasury Bill Index
The duration of the portfolio extended modestly, currently 0.27 versus 0.21 at the end of the prior reporting period.
,`,Jjj Investment Performance
Orange County Sanitation District Liquid
Period Ending
March 31, 2016
Total Rate of Return
Annualized Since Inception
November 30,2014
0.35%
0.30%
0.25%
0.20%
0.15%
0.10%-
0.05%
0.00%
12 months 2 years 3 years 5 years 10 years Since Inception
Orange County Sanitation District Liquid BAML 3Monih US Treasury Bill Index
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since Inception
Orange County Sanitation District Liquid 0.17% 0.33% N/A N/A N/A N/A 0.30%
BAML 3-Month US Treasury Bill Index 0.07% 0.12% N/A N/A N/A N/A 0.10%
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 lasses in the portfolio.
Compliance
C/" OCSD Lehman Exposure
March 31,2016
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by ChandlerAsset Management are in full compliance auto State lawand rvth the investmentpolicy
Category Standard Comment
Treasury issues 5 years maximum maturity Complies
Supmnational "AA'or better by l of 3 NRSROs; 30%mapmum; 5%max; 5 Complies
are matiri ; Includes on . IADB IBRD,and IFC per CDC
U.S.Agencies 20%max issuer, 5 we.maximum maturity Complies
U.S.Corporate(Ml "A"or better long term rating by l of 3 NRSROs; 30%maximum; Complies"
5%maxlss1er 5yearaman,matunty
Municipal Securities "A"or higher by l of 3 NRSROS;10%maximum; 5%max Issuer, Complies
5 years maximum maturity
Asset Backed/CMOs/ "AA"or better by l of 3 Nil "A"or higher issuer rati rig by l Complies
Mortgage-backed of NRSROs; 20%maximum; 5%max issuer(excluding
MBS/ ovta en ;5 years max maturty
Negotiable CDs "A"or better on its long term debt by l of 3 NRSROs; "A1/P1"or Complies
highest shalt tens ratings by 1 of 3 NRSROs; 30%maximum;5%
max issuer, 5 years max maturity
CDs/TDS 5%max issuer, 5 years max maturty Complies
Barkers 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 l of 3 NRSROS; "A"or better by of Complies
NRSROs,if long tens 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%collatemlidation Complies
Reverse Repurchase 5%maximum,90 days max maturity, Complies
Agreements
LAIF Not wed by investment adviser Complies
Avq Duration Not to exceed 60 months - 80%to 120%of the benchmark Complies
Maximum Maturity 5 years maximum maturity Complies
'Accaunt holds E2 million ace value(cued 525ESMY6)and Werra)face clue(cusip 525ESG187)of defaulted Lehman gone Holdings that were
purchased by the weHous manager. Complied at time of Wmhase.
11% Account Profile
Portfolio Characteristics
OCSD Lehman Exposure
03131/2016 12131/2015
Portfolio Portfolio
Average Maturity(yrs) 19.28 21.60
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 136,292 170,034
Portfolio is S&P and Mows respectively.
SECTION 3
Consolidated Information
11% Account Profile
Portfolio Characteristics
Orange County Sanitation District Consolidated
03/31/2016 12131/2015
Portfolio Portfolio
Average Maturity(yrs) 2.49 2.09
Modified Duration 2.11 1.77
Average Purchase Yield 1.26 % 1.02 %
Average Market Yield 0.93 % 1.05 %
Average Quality— AA+/Aa1 AA+/Aa1
Total Market Value 383,528,483 446,896,363
Portfolio is S&P and Mows respectively.
Sector Distribution
Orange County Sanitation District Consolidated
March 31, 2016 December 31, 2015
us Commercial us
Coryonde, MBS Paper Corporate
20.1% - OJ% 3]%\ -17.1%
Commercial '
Paper Municipal - MBS
2.3% US Bonds 0.8%
Treasury 1.0%
Municipal/ T %
Bonds Money
1.3% Mallet u5
Fund Treasury
Money C Negotiable FI/8.2 FI UA%
Mate
Fund
Ft 0.3%
CIAO l NegoSable
0.8% CD
CIAO /// / 0.2%
0A% Common
Stock / Comrran
00% ABS Stock
ABS i C3% 0.0%
6.3%
Suprana8onai
Agency 5.9% 26 %84 Suprona8awl
25.7% 4% 3.8%
SECTION 4
Portfolio Holdings
C," Orange County Sanitation District Long Term Holdings Report
Account 010268 As of 3/31/16
Purchase Da:d Cost Va:ue Mid Price Market Value %of Pod. MoodyIS&P Maturity
CUSP Security Description Par Value/Units Book Yie Book Va Mkt YTM Accrued Ind. Gain/Loss Fitch Duration
ABS A 111111
43813JAC9 Honda Auto Receivables 2014-1 A3 2,761,268.83 01/22/2015 2,752,855.60 99.88 2,758,005.01 0.86% Aaa INR 1.64
0.67%Due 11/21/2017 0.90% 2,758,068.41 0.97% 513.90 (63.40) AAA 0.40
89231 MAC9 Toyota Auto Receivables Owner 2014-A 2,584,623.14 01/21/2015 2,579,272.16 99.87 2,581,214.02 0.81 % Aaa IAAA 1.71
0.67%Due 1211512017 0.90% 2,582,466.44 1.00% 769.64 (1,252.42) NR 0.40
89231TAB6 Toyota Auto Receivables Owner 2015-C 2,195,000.00 0811812015 2,194,823.52 99.98 2,194,563.19 0.69% Aaa IAAA 1.88
0.92%Due 2/15/2018 0.93% 2,194,866.27 0.96% 897.51 (303.08) NR 0.47
43814GAC4 Honda Auto Receivables 20142 A3 1,556,850.60 04/06/2015 1,555,755.95 99.84 1,554,397.00 0.49% Aaa I AAA 1.97
0.77%Due 311912018 0.83% 1,556,261.83 1.04% 432.89 (1,864.83) NR 0.58
43814NAB1 Honda Auto Receivables 2016-1 A2 2,565,000.00 02116IN16 2,564,743.76 99.93 2,563,214.76 0.80% NR/AAA 2.22
1.01%Due 6/18/2018 1.02% 2.564,754.69 1.09% 935.51 (1,539.93) AAA 0.89
161571GC2 Chase CHAT Pool#2013-AB 2,500,000.00 01/07/2016 2.499,121.10 100.07 2,501,720.00 0.78% Aaa IAAA 2.54
1.01%Due 10/15/2018 1.03% 2,499,190.92 0.88% 1,122.22 2,529.08 AAA 0.52
4778nAD6 John Dears Owner Trust 2014B A3 4,000,000.00 02IN12015 4,001,875.00 Sees 3,998,256.00 1.25% Aaa/NR 2.63
1.07%Due 1111512018 1.05% 4,001,100.87 1.13% 1,90222 (2,844.87) AAA 0.79
89236WAC2 Toyota Auto Receivables Owner 201 SA 3,595,000.00 0212412015 3,594,456.44 100.06 3,597,239.69 1.13% Aaa IAAA 2.88
1.12%Do.2/15/2019 1.13% 3,594,654.92 1.07% 1,789.51 2,584.77 NR 1.12
4778SMAC4 John Deere Owner Trust 201&A A3 2,420,000.00 02/23/2016 2,419,619.09 99.91 2,417,899.44 0.76% Aaa/NR 4.04
1.36%Due 411512020 1.37% 2,419,626.68 1.41% 1,462.76 (1,727.24) AAA 2.09
83162CUO Small Business Administration 2001-20C 91,130.06 031M12001 91,130.06 107.90 98,324.78 0.03% Aaa/AA- 4.92
6.34%Due 3/V2021 am% 91,130.06 3.60% 481.47 9,19412 AAA 2.53
78445JAA5 SLMA 2008-9A 41,368.03 W/22/2008 41,200.20 Well 40,905.49 0.01 °% Ann/AA. 7.07
2.121%Due 4/25/2023 2.22% 41,339S3 2.44% 163.32 (433.84) AAA 0.02
24,294,852.86 24,305,739.38 7.61 is Aaa I AAA 2.45
Total ABS 24,310,240.66 1.05% 24,303,460.42 1.08% 10,470.95 2,278.96 Aaa 0.83
AGENCY
3135GOES8 FNMA Note 4,000,000.00 06/11/2015 4,044,200.00 100.53 4,021,136.00 1.26% Ass/AA+ 0.63
1.375%Due 11/15/2016 0.60% 4,019,305.75 0.52% 20,777.70 1,830.25 AAA 0.62
3137EADUO FHLMC Note 5,000,000.00 0111612015 4,991,050.00 99.89 4,994,455.00 1.56% Aaa/AA- 0.83
0.5%Due 112712017 0.59% 4,996,349.66 0.64% 4,444.44 (1,894.66) AAA 0.82
313379FW4 FHLB Note 5,000,000.00 O /U/2015 5,025,100.00 100.37 5,018,725.00 1.5B% Aaa/AA+ 1.19
1%Due 6/9/2017 0.75% 5,014,622.01 0.68% 15,555.56 4,102.99 AAA 1.18
3137EADV8 FHLMC Note 5,000,000.00 W12512015 4,994,250.00 100.04 5,001,790.00 1.57% Aaa/AA+ 1.29
0.75%Due]H412017 0.81 % 4,986,399.53 0.72% 8,020.83 5,390.47 AAA 1.28
3137EADN6 FHLMC Note 5,000,000.00 0112312015 4.967,500.00 99.96 4,998,225A0 1.57% Aaa/AA+ 1.79
0.75%Due 1/12/2018 0.97% 4,980,445.93 0.77% 8,229.17 17,779.07 AAA 1.76
3137EADP1 FHLMC Note 5,000,000.00 01/13/2015 4,974,100.00 1HAS 5,007,470.00 1.57% Aaa/AA+ 1.93
0.875%Due 3/712018 1.04% 4,984,094.51 0.80% 2,916.67 23,375.49 AAA 1.91
313378A43 FHLB Note 7,500,000.00 02111IN15 7,544,850.00 101.10 7,582,350.00 2.37% Ass/AA- 1.94
1.375%Due 319I2018 1.18% 7.528,286.31 0.80% 6,302.08 54,063.69 AAA 1.91
Chandler Asset Management-CONFIDENTIAL 37
C," Orange County Sanitation District Long Term Holdings Report
Account 010268 As of 3/31/16
Purchase Da Cost Va:uv Mid Price Market Value %of Pod. MoodyIS&P Maturity
CUSP Security Description Par Value/Units Book Yie Book Va Mkt YTM Accrued Ind. Gain/Loss Fitch Duration
AGENCY
•
3135GOG72 FNMA Note 5,000,000.00 12/18/2015 4,963,950.00 100.63 5,031,335.00 1.58% Ann/AA+ 2.71
1.125%Due 12114/2018 1.37% 4,967,326.58 OS9% 16,718.75 64,008.42 AAA 2.65
3133782M2 FHLB Note 7,500,000.00 Various 7,589,190.00 101.66 7,624,215.00 2.39% Aaa/AA+ 2.94
1.5%Due&&2019 1.14% 7,576,557.53 0.93% 7,187.50 47,657.47 AAA 2.87
3135GUG1 FNMA Note 5,000,000.00 1211512014 5.021,500.00 102.48 5,124,030.00 1.60% Aaa/AA+ 3.45
1.75%Due 911212019 1.66% 5,015,637A9 1.02% 4,618.06 108,392.61 AAA 3.34
3137EADMB FHLMC Note 7,500,000.00 Various 7,399,650.00 lm.43 7,532,287.50 2.37% Aaa/AA+ 3.51
1.25%Due 101212019 1.61 % 7,407,739.27 1.12% 46,614.50 124,548.23 AAA 3.40
313383HU8 FHLB Note 5,000,000.00 M1131N15 5,008,950.00 102.03 5,101,255.00 1.60Is Ase/AA- 4.20
1.75%Due 6/12/2020 1.71 % 5.007,991.98 1.25% 26,493.06 93,499.02 NR 4.02
3135GOD75 FNMA Note 5,000,000.00 11/16/2016 4,956,660.00 101.10 5,055,215.00 1.59% Aaa/AA+ 4.23
1.6%Due 6/22/2020 1.70% 4,959,242.38 1.23% 20,625.00 95,972.62 AAA 4.07
3135GOR3 FNMA Note 7,500,000.00 Various 7,370,726.00 101.00 7,575,052.50 2.38% Aaa/AA+ 4.67
1.5%Due IIIN/2020 1,87% 7,378,335A2 1.28% 37,812.50 196,717.08 AAA 4.47
313OA9CV5 FHLB Note 5,365,000.00 0211712016 5,343,325AO 100.04 5,367,140.64 1.68% Aaa/M+ 4.89
1.375%Due 211&2021 1.46% 5,343,835.63 1.37% 8,811.27 23,305.11 AAA 4.70
84,193,991.40 85,034,681.64 26.0% Aaa 1 AA+ 2.79
Total Agency 84,365,000.00 1.26% K175,955.88 0.95% 235,127.25 858,725.76 Aaa 2.70
CMQ
6288BUM8 NCUA Guaranteed Note CMC,2010-R2 479,950.17 11/10/2010 479,947.99 99.90 479,455.82 0.15% Ann I M+ 1.60
0.804%Due 11/6/2017 0.00% 479,947.99 0.88% 270.05 (492.17) NR 0.08
31398VJ98 FHLMC FHMS K006 A2 900,000.00 1112312010 951,046.88 109.61 986,446.80 0.31 % Aaa/AA+ 3.82
4,251%Do.1/25/2020 3,02% 921,279.71 1.48% 637.65 65,167.09 AAA 3.39
3837MNX9 GNMA PooI#2000-9 42,440.13 0112412000 42,440.13 100.35 42,587.82 0.01 % Aaa/AA+ 13.89
0.94%Due 211612030 0.94% 42,440.13 0.72% 33.06 147.69 AAA 0.03
3133TCE95 FHLMC FSPC E3A 61,969.65 03/11/1998 62,023S5 104.27 64,605.91 0.02% Aaa/AA+ 16.39
2.976%Due 811512032 2.94% 61,989.47 1.37% 153.66 2,616.44 AAA 1.99
31396X305 FNMA FNR 2007-114 A6 114,603.69 0111012008 109,016.77 89.56 114,094.39 0.04% Asa/AA+ 21.59
0.635%Due 1012712037 0.98% 110,557.05 0.85% 8.09 3,537.34 AAA 0.60
31397QREO FNMA FNR 2011-3 FA 426,845.37 12/20/2010 426,711.99 100.83 430,379.65 0.13% Aaa/AA+ 24.92
1.115%Due 2125/2041 1.11 % 426,734.94 0.90% 79.32 3,644.71 AAA 0.08
313WY35 FHLMC FSPC T-582A 1,074,384.63 MIN12011 1,216,740.57 117.71 1,264,668.89 040% Ass/M+ 27.50
6.5%Due 912512043 5,40% 1.195,576.13 2.72% 1,163.92 69,092,76 AM 4.62
3,287,927.68 3,382,239.28 1.06% AaaIM+ 16.01
Total CMO 3,100,182.54 3.10% 3,238,525,42 1]5% 2,345.75 143.713,86 Aaa 2.80
Chandler Asset Men,enanl-CONFIDENTIAL 38
OROrange County Sanitation District Long Term Holdings Report
Account 010268 As of 3/31/16
Purchase Do:d Cost Va:uv Mut Price Market Value %of Pod. MoodyIS&P Maturity
CUSP Security Description Par Value/Units Book Yie Book Va Mkt Y`W Accrued Int. Gain/Loss Fitch Duration
COMMERCIAL PAPER
06538BFQ1 Bank of Tokyo Mitsubishi NV Discount 6,370,000.00 02/25/2016 6,355,260.53 99.84 6,359,595.E 1.99% P-1 /A-1 0.23
CP 0.71 % 6,359,595,67 071% 0.00 0.00 F-1 0.23
07%Due 6/24/2016
6,355,260.53 6,359,595.67 1.99% P-1/A-1 0.23
Total Commercial Paper 6,370,000.00 0.71% 6,359,595.67 0.71% 0.00 0.00 F-1 0.23
MBB
31381PDA3 FNMA FN 466397 365,44.83 12/01/2010 357,497,25 107.29 392,060.38 0.12% Ass IAA+ 4.59
34%Due 11/112020 3.80% 361743.91 168% 241.E 30,31647 AAA 4.09
36225CAZ9 GNMA Pool#G280023 27,964.95 08/08/1997 28,428A2 103.79 29,025.77 0.01 % Ann/AA. 10.73
1.625%Due 12I =026 1.52% 28,134.28 1.71% 37.87 891A9 AAA 4.90
36225CC20 GNMA Pool#G280088 31,925.39 06/11/1997 32,62375 102.79 32,817.39 0.01 % Aaa/AA+ 11.23
2%Due 612012027 1.86% 32,188+09 1.50% 53.21 629.29 AAA 3.44
3134BSWL3 FHLMC FH 786064 2,601.76 021181MO 2,538+40 103.41 2,69055 0.00% Aaa/AA+ 11.76
2.757%Due 1/112028 2.95% 2,575.03 2.32% 5.98 115.52 AAA 0.72
31371NUC7 FNMA FN 257179 31,525.75 12/05/2011 33,341.57 108.74 34,280.22 0.01 % Aaa/AA+ 12.01
4.5%Due 4/1/2028 3.72% 32,86Z23 1.67% 118.22 1,417.99 AAA 3.28
3141NAV3 FNMA P.I#FN MA0022 36,618.90 1210512011 38,728+06 108.74 39,810.37 0.01 % Aaa/AA+ 13.01
4.5%Due 4l1/2029 3,76% 38,203+44 1.77% 137.32 1,614.93 AAA 3.39
3138EG6F6 FNMA FN AL0869 23,539.21 1210512011 24,895.03 108.74 25,595.88 0.01 % Aaa/AA+ 13.18
4.5%Due WIM29 3.77% 24,561.02 1.79% 20.60 1,034.86 AAA 3.26
03215PFN4 AMRESCO Residential Secunt es 1999-1 133,743.29 05/20/2011 100,432.86 85.68 114,585.90 0.04% NR I AA+ 13.24
A 4.88% 109,376.81 2.83% 35.76 5,209.09 BBB 10.82
1.375%Due 612512029
36225CNM4 GNMA Pool#G280395 11,326.18 0311512000 11,223.51 102.61 11,621.48 0.00% Aaa/AA+ 14.06
1.75%Due 412012030 1.81 % 11,277.94 1.51% 16.52 343.54 AAA 4.06
36225CN28 GNMA Pool#G280408 94,670.87 03/15/2000 93,71T.30 102.42 96,973.13 0.03% Aaa/AA+ 14.15
1.75%Due 512012030 1.81 % 94,225.70 1.43% 138.07 2,747.43 AAA 3.60
31403GXF4 FNMA Pool#FN 748678 6,021.13 0611012013 6,47272 111.15 6,692.32 0.00% Aee/AA+ 17.52
5%Due 10/1/2033 4.16% 6,412.10 1.64% 25.09 280.22 AAA 3.45
36225DCBB GNMA Pool#G280965 97,839.72 07/19/2004 97,778.58 104.10 101,853.11 0.03% Aaa/AA+ 18.32
1.875%Due 712012OU 1.88% 97,80Z30 1.52% 152.87 4,050.81 AAA 4.50
31406XWT5 FNMA P.I#FN 8233M 186,487.88 0111112006 185,030+95 104.72 195,296.82 0.06% Aaa/AA+ 18.85
2.535%Due 211/2035 2.59% 185,542.25 2.34% 393.96 9754.57 AAA 076
31406PQV8 FNMA Pool#FN 815971 388,026.34 W/1012013 417,128.32 110.86 430,179.58 0.14% Aaa/AA+ 18.93
5%Due 311/2035 4.21 % 413,477.22 1.94% 1,616.78 16,702.36 AAA 3.61
31407BXH7 FNMA Pool#FN 826080 38,824.04 N/1U/2013 41,735.84 110.0 42,970.95 0.01 % Aaa/AA+ 19.26
5%Do.7/112035 4.22% 41,376+09 1.94% 161.77 1,594.86 AAA 3.62
Chandler Asset Men,ensed-CONFIDENTIAL 39
C," Orange County Sanitation District Long Term Holdings Report
Account 010268 As of 3/31/16
Purchase Do:d Cost Va:ue Mid Price Market Value %of Pod. Moaull Maturity
CUSP Security Description Par Value/Units Book Yie Book Va Mkt YTM Accrued Ind. Gain/Loss Fitch Duration
MBS
31376KT22 FNMA FN 357969 217383.43 06/10/2013 233,687.19 110.55 240,321.73 0.08% Ann/AA+ 19.43
5%Due 9/1/2035 4.22% 231,688.30 L94% 211.35 8,633.43 AAA 3.62
83611MG81 Soundview Home Equity Loan Tr.2005- 3,055.98 09/1W011 2,697.86 9939 3,052.77 0.00% NR/AAA 19.67
OFT-3 A4 1.81 % 2,765+13 3.16% o, 287.64 A 0.05
0.735%Due 11n5n035
31403DJZ3 FNMA Paul#745580 208,793.70 06110/2013 224,463.23 110.81 231,357.83 0.07% Ass AA+ 20.18
5%Due 611/2036 4.26% 222,596.27 1S6% 869.97 8,761.56 AAA 3.64
3141 OF4V4 FNMA Pool#FN 888336 420 542.62 W11012013 452,083+32 110.87 466,239.20 0.15% Aaa/AA- 20.27
5%Due 7I112036 4.25% 448,35(1 195% 1,752.26 17,882.70 AAA 3.63
2,384,493.85 2,497p33.37 0.78% Aaa I AA+ 16.15
Total MBS 2,326,303.96 3.78% 2,385,164.61 1,92% 5,989.61 112,268.76 Aaa 3.83
MONEY MARKET FUND FI
261908107 Dreyfus Short-Intermediate Gov Treasury 5,155,671 79 Various 5.155,67179 1.00 5,155,671 79 1.61 % Aaa I AAA 000
Cash Management Full 0,18% 5,155,671,79 0.18% 0.00 0,00 AAA 000
5,155,671.79 5,155,671.79 1.61 % Aaa I AAA 0.00
Total Money Market Fund FI 5,155,671.79 0.18% 5,155,671.79 0.18% 0.00 0.00 Aaa 0.00
MUNICIPAL BONDS
7335BWAG9 Port Anthony of NY&NJ TE-REV 2,440,000.00 Varous 2,507,633.89 113.23 2,762,738.80 0.88% Aa3/AA- 3.67
5.309%Due 12I1/2019 4.97% 2,463,810.38 1.58% 43,179.87 291 AA- 3.32
6497IM5E8 New Yak NY TE-REV 1,400,000W 10/2A2010 1,400,000.00 108.83 1,523,634.00 0.48% As1/AAA 4.59
4.075%Due 11/1/2020 4.08% 1,400,000.00 2.05% 23,770.83 123,634.00 AAA 4.14
913366EJ5 Univ of California Fill Mad TE-REV 400,000.00 1110912010 400,000.00 113.91 455,644.00 0.14% Aa3/AA- 5.13
5.035%Due 511512021 5.04% 400,000.00 2A5% 7,606.44 55,644.00 NR 4.50
4,307,633.89 4,742,016.80 1.51 % Aa21 AA 4.11
Total Municipal Bonds 4,240,000.00 4.68% 4,263,810+38 1.79% 74,559.14 478,206+42 AA 3.70
SUPRANATIONAL
4595OKBS8 International Finance Carp Note 5,000,000.00 03/16/2015 5,020,700,00 100.25 5,012,355.00 1.58% Aaa I AAA 107
1%Do.4/24/2017 0.80% 5,010,444.21 0]]% 21,805.56 1,910.79 NR 1.05
4581XOCGI Inter-American Dev Bank Note 5,000,000.00 0612212015 5,019,550.00 100.18 5,009,020.00 1.57% Aaa 1 AAA 1.29
1%Due 7114/2017 0.81 % 5,012,192.75 0.86% 10,694.44 (3,172.75) AAA 1.27
4590MEJB Intl.Bank Recon&Development Note 5,000,000.00 Various 4,991,170+00 100.00 5,000,235.00 1,57% Aaa I AAA 2.21
1%Due 6/15/2018 1.07% 4.992,693.01 1.00% 14,722.22 7,WS9 AAA 2.9
15.031,420.00 15,021,610.00 4.71 % Aaa I AAA 1.52
Total Supranatlonal 15,000,000.00 0.89% 15,015,329.97 0.87% 47,222.22 6,280.03 Aaa 1.50
Chandler Asset Management-CONFIDENTIAL 40
OROrange County Sanitation District Long Term Holdings Report
Account 010268 As of 3/31/16
Purchase Da:d Cost Vs:uv Mkt Price Market Value %of Pod. MoodyIS&P Maturity
CUSP Security Description Par Value/Units Book Yle Book Vs Mkt Y7M Accrued Ind. Gain/Loss Fitch Duration
US CORPORATE
89236TAKI Toyota Motor Credit Corp Note 5,200,000.00 05/14/2013 5,200,000.00 100.05 5,202,438.80 1.63% Aa3/AA- 0.13
0.909%Due 5/17/2016 0.91 % 5,200,000.00 0.54% 5,779.74 2,438.80 A 0.13
06050TLX8 Bank of America Note 600,000.00 0&0112014 600,000.00 99.81 598,878.60 0.19% Al/A 1.10
1.041%Due 51812017 IN% 600,000.00 1.21% 919.55 (1,121.40) NR 0.10
94988021-0 Wells Fargo Bank Callable Note Cary 500,000.00 0610512014 500,000.00 RSWI 498,071.00 0.16% Aa2/AA- 1.21
6/1&2016 0.90% 500,000.00 1.23% 200.43 F,929A0) AA 0.21
0.902%Due 6115/2017
060505DP6 Bank of America Corp Note 3,800,000.00 0111&2014 4,334,014.00 106.26 4,037,959.80 1.29% Beat/BBB- 1.67
5.75%Due 12/i/2017 1.95% 4,030,648.60 1.91% 72,833.33 7,311.20 A 1.57
166764AA8 Chevron Corp Callable Note Cant 4,000,000.00 1210412014 3,977,200.00 99.83 3,993,072.00 1.25% Ant/AA- 1.68
111&17 1.30% 3,987,201.10 1.21% 14,229.33 6,870.90 NR 1.57
IAA%Due 1215/2017
458140AL4 Intel Corp Note 2,000,000.00 0112612015 2,008,280.00 100.81 2,016,248.00 0.63% At/A+ 1.71
1.35%Due 12/15/2017 1.20% 2.004,908.13 0.87% 7,950.00 11,339.87 A+ 1.68
40428HP119 HSBC USA Inc Note 3,000,000.00 Various 3,003,290.00 Sam 2,994792.W 0.94% A21 A 1.80
1.625%Due 1/16/2018 1.59% 3,001,977.08 1.72% 10,1%.25 (7,185.08) AA- 1.75
38141GFG4 Goldman Sachs Group Inc Note 600,OW.W Various 692,806.00 107.24 643,434.60 0.20% A3I BBB+ 1.80
5.95%Due 111812018 2.73% 632,263.89 1.83% 7,239.17 11,170+71 A 1.70
674599CD5 Occidental Petroleum Callable Note Cout 2,000,000.00 01/06/2015 1.986,340.00 99.70 1,993,966.00 0.63% A3/A 1.88
1/1&18 1.73% 1,991,741.31 1.67% 3,833.33 2,206.69 A 1.76
1.5%Due 2/11Y2018
025816AYS American Express Credit Note 2,900,OW.W Various 3,377,385 79 109.69 3,180,946.W 1.00% A31 BBB+ 1.97
7%Due 3/1912018 4,28% 3,032,127,00 1.95% 6,766.66 148,819.20 A 1.85
073902CD8 Bear Stearns Note 3,200,000.00 0111512014 3,523,520,00 1W.22 3,399,142.40 1.08% A31NR 2.25
4.65%Due 712/2018 2.25% 3,363,853.01 1.82% 36,786.67 35,289.39 A+ 2.13
532457BF4 Eli Lilly B Co Note 4,000,000.00 Various 4,009,675.00 102.30 4,092,004.00 1.28% A2/AA- 2.96
1.95%Due 3/1512019 1.89% 4,006,701+96 1.16% 3,466.67 85,302.04 A 2.87
02665WAH4 American Honda Finance Note 4,000,000.00 Various 4,046,640.00 102.33 4,093,224.00 1.28% At/A+ 3.38
2.25%Due 8/15/2019 1.93% 4,041,281.73 1.56% 11,500.00 51,942.27 NR 3.23
08406HCW/ Bank of New York Callable Note Cont 2,120,000.00 0211012016 2,142,175.20 102.38 2,170,555.64 0.68% Al[A 3.46
&11/2019 1.99% 2,141,390.70 L57% 2,706.89 29,164.94 AA- &23
2.3%Due 9/11/2019
24422ESS9 John Deere Capital Cory Note 5,000,00oW Various 5,046,984.00 102.44 5,122,205.00 1.60% A2I A 3.46
2.3%Due 9/16/2019 2.07% 5.037,083.06 1.57% 4,791.67 85,121.94 NR 3.32
36962G7MO General Electric Capital Cap Callable 6,000,000.00 Various 5,014,950.00 102.94 5,146,790.00 1.62% At 1AA+ 3.78
Note 1X 1MI2019 2.13% 5,011,661.88 1.38% 25,055.55 135,128.12 NR &53
2.2%Due 1/9/2020
46625HKA9 JP Morgan Chase Callable Note Cant 2,000,000.00 0210612015 1,994,880.00 100.79 2,015,820.00 0.63% A3/A- 3.82
12/23/2019 2.30% 1,996,065.87 2.03% 8,5W.W 19,764.13 A+ 3.56
2.25%Due 112312020
4042811PR7 HSBC USA Inc Note 1,250,OW.00 0210&2016 1222,787.50 98.98 1,237,288.75 0.39% A2/A 3.93
2.35%Due 315/2020 2.92% 1,223,722.07 2.62% 2,121.53 13,566.68 AA- 3.72
Chandler Asset Management-CONFIDENTIAL 41
C," Orange County Sanitation District Long Term Holdings Report
Account 010268 As of 3/31/16
Purchase Da:d Cost Va:uv Mid Price Market Value %of Pod. MoodyIS&P Maturity
CUSP Security Description Par Value/Units Book Yie Book Va Mkt YTM Accrued Ind. Gain/Loss Fitch Duration
US CORPORATE
•
747525AD5 Oualcomm Inc Note 5,000,000.00 05/19/2015 4,995,195.40 102.51 5,125,510.00 1.62% Al/A+ 4.14
2.25%Due 5/20/2020 2.27% 4,996,024.69 L62% 40,937.51 129,485.31 NR 3.91
94974BGM6 Wells Fargo Corp Note 5,000,000.00 07/162015 5,001,650.00 102.33 5,116,405.00 1.61Is A2/A 4.31
2.6%Due 712212020 2.59% 5,001,420+61 2.03% 24,916.67 114,984.39 AA- 4.05
30231 GAV4 Exxon Mobil Corp Callable Note Cant 1,515,000.00 02IN12016 1.515,000.00 101]] 1,541,818.53 0.48% Aas IAAA 4.92
2/1/2021 2.22% 1,516,000.00 1.84% 2,618.26 26,818.63 AAA 4.64
2.222%Due 3/1/2021
61747WAL3 Morgan Stanley Note 2,800,000.00 MIN12014 3,200,848.00 114.12 3,195,48320 1.01 % A3I BBB- 5.33
5.5%Due]12812021 3.24% 3,099,250.58 2.64% 26,950,00 96,232.62 A 4.64
67,393,620.89 67,416,033.52 21.19% At/A+ 2.88
Total US Corporate 65,485,000.00 2.08% 66,414,313.27 1.59% 320,261.21 1,001,720.25 A+ 2.69
US TREASURY
91282BD31 US Treasury Note 3,500,000.00 05128/2014 3.500,34041 100.00 3,500,112.00 1.10% Ass IAA+ 0.08
0,374%Due 4130/2016 0,37% 3,500,014,08 034% 2,183.04 97,92 AAA 0.08
912828DM US Treasury Note 10,000,000.00 09/08/2014 9,998,046.87 100.05 10,004,880.00 3.13% Ann/AA+ 0.42
0.5%Due 8/31/2016 0.51 % 9,999,588.81 0.38% 4,347.83 5,291.19 AAA 0.42
912828G46 US Treasury Note 11,000,000.00 Various 10,974,971.75 100.00 10,999,571.00 3.45% Aaa/AA+ 0.67
0.5%Due II/M12016 0.62% 10,991,488+46 0.51% 18,483.60 8082.54 AAA 0.66
912828SS0 US Treasury Note 7,500,000.00 121UI2015 7,500,611.06 100.24 7,517,872.50 2.36% Aaa/AA+ 1.08
0.875%Due 413012017 0.87% 7,500,487.36 0.66% 27,584.13 17,385.14 AAA 1.07
912828WO US Treasury Note 10,000,000.00 Various 9,948,783.50 100.25 10,025,000.00 3.15% Aaa/AA+ 1.63
0.875%Due 11/15Y2017 1.05% 9,971,468.09 0.72% 33,173.08 53,531.91 AAA 1.60
9128281333 US Treasury Note 11,000,000.00 Various 11,042,439.19 101.81 11,198.946.00 3.51 % Aaa/AA+ 2.84
1.5%Dua MI3 019 1.37% 11.038,777]2 0.85% 27,651.10 160A68.28 AAA 2.77
912828WS5 US Treasury Note 10,000,000.00 Various 9.984,307.21 102.23 10,223,050.00 3.21 % Aaa/AA+ 3.26
1.625%Due 6/30/2019 1.66% 9,989,677.90 0.93% 41,071.43 233,372A0 AAA 3.15
912828WW6 US Treasury Note 10,000,0com Various 10,024,777.40 102.19 10,218,7SOAO 3.21 % Aaa/AA+ 3.33
1.625%Due 713112019 1.57% 10,016,633.60 0.96% 27,232.15 202,116+40 AAA 3.24
912828F39 US Treasury Note 5,800,000.00 1012712014 5.873,186.87 102.60 5,950,666.60 1.86% Aaa/AA+ 3.50
1.75%Due 9/30/2019 1.48% 5,851,979.78 0.99% 277.33 98,686.82 AAA 3.39
91282BG61 US Treasury Note 7,500,000.00 12/19/2014 7,449,634.50 101.68 7,625,9]].50 2.40% Aaa/AA+ 3.67
1.5%Due 1113012019 1.64% 7,462,644.66 1.03% 37,807.30 163,332.84 AAA 3.55
912828L99 US Treasury Note 5,500,000.00 Various 5,421,666.87 100.80 5,544,044.00 1.74% Ass/AA+ 4.59
1.375%Due 10131Q020 1.67% 5.429,685.18 1.19% 31,787.43 114,358.82 AAA 4.41
91282BN89 US Treasury Note 1,500,000.00 ONIY2016 1.491,626.12 100.72 1,510,782.00 0.47% Aaa/AA+ 4.84
1.375%Due 1/31/2021 1.49% 1,491,701.31 1.22% 3,456.39 19,080.69 AAA 4.66
Chandler Asset Menegemera-CONFIDENTIAL 42
C," Orange County Sanitation District Long Term Holdings Report
Account 010268 As of 3/31/16
Purchase Da:d Cost Va:uv Mkt Price Market Value %of Pod. MoodyIS&P Maturity
CUSP Security Description Par Value/Units Book Yie Book Va Mkt YTM Accrued Int. Gain/Loss Fitch Duration
US TREASURY
91282SWUO US Treasury Inflation Index Note 10,376,288.00 Various 10,262,12724 100.34 10,411,961.68 3.26% Add/AA- 8.30
0.125%Due 7/15/2024 0.24% 10,281,274.36 0.08% 2,743.73 130,687.32 AAA 8.25
103,475,518.99 104,731,613.28 32.85% Aaa I AA+ 2.90
Total US Treasury 103,676,288.00 1.08% 103,525,421.31 0.71H 257,798.62 1,206,191.97 Ater 2.83
315,880,391.90 318,646,634.73 100.00% Aal IAA+ 2.93
TOTAL PORTFOLIO 314,028,686.95 1.40% 314,837,248.72 1.03% 953,774.75 3,809,386.01 Aaa 2.48
TOTAL MARKET VALUE PLUS ACCRUED 319,600,409A8
Chandler Asset Mer,emeM-CONFIDENTIAL 43
C," Orange County Sanitation District Liquid Holdings Report
Account 010282 As of 3/31/16
Purchase Do:d Cost Va:ue Mid Price Market Value %of Pod. MoodyIS&P Maturity
CUSP Security Description Par Value/Units Book Yie Book Va Mkt Y7M Accrued Ind. Gain/Loss Fitch Duration
AGENCY
313384WM7 FHLB Discount Note 2,000,000.00 02/05/2016 1,998,003.06 99.96 1,999,231.95 3.13% P-1/A-1+ 0.10
0.395%Due 516/2016 0.40% 1,999,231.95 0A0% 0.00 0.00 F-1+ 0.10
313384XJ3 FHLB Discount Note 2,000,000.00 0212612016 1,998,043.50 99.94 1,998,796.00 3.13% P-1IA-1+ 0.16
0.387%Due 512712016 0.39% 1,998,796+00 0.39% 0.00 0.00 F-1+ 0.16
313396XU2 FHLMC Discount Note 2,000,000.00 02IN12016 1,998,040.00 99.93 1,998,680.00 3.13% P-1/A-1+ 0.18
0.36%Due 6/6/2016 0.37% 1,998,680.00 0.37% 0.00 0.00 F-1+ 0.18
3133MYFO FHLB Discount Note 985,000.00 12/22/2015 982,223.94 Was 983,799.12 1.54% P-1/A-1+ 0.21
0.57%Due 611712016 1.14% 983,799.12 1.14% 1,575.18 0.00 F-1+ 0.21
313312YJ3 FFCB Discount Note 1,075,000.00 12=12015 1,071,811.13 99.87 1,073,590.55 1.69% P-1IA-1+ 0.22
0.59%Due 6/20/2016 1.18% 1.073,590.55 1.18% 1,779.42 0.00 F-1+ 0.22
313384YN3 FHLB Discount Note 4,000,000.00 12/29/2015 3,988,331.11 Was 3,994,493.33 6.26% P-1 IA-1+ 0.23
0.69%Due 612412016 0.60% 3,994,493.33 OsO% 0.00 0.00 F-1+ 0.23
313384ZG7 FHLB Discount Note 1,400,000.00 0312912016 1,398,530.00 99.90 1,398,572.00 2.19% P-1IA-1+ 0.28
0.36%Due 7H2/2016 0,37% 1.398,572.00 0.37% 0.00 0.00 F-1+ 0.28
13,434,982.74 13,M7,162.95 21.09% P-1/A-1+ 0.20
Total Agency 13,460,000.00 0.57% 13,447,162.95 O.ST% 3,35,110 0.00 F-1+ 0.20
COMMERCIAL PAPER
89233GFP6 Toyota Motor Credit Discount CP 1,200,000,00 02/24/2016 1,197,640,00 99.86 1,198,367,67 1.88% P-1IA-1+ 0.23
0.59%Due 6/23/2016 0,60% 1,198,367,67 O60% 0.00 0,00 NR 0.23
06538BF01 Bank 0 Tokyo Mitsubishi NY Discount 1,275,000.00 02/25/2016 1,272,049.79 99.84 1,272,917.50 2.00% P-1/A-1 0.23
CP 0.71 % 1,272,917.50 011% 0.00 0.00 F-1 0.23
0.7%Due 6/24/2016
2,469,689.79 2,471,285.17 3.87% P-1/A-0 0.23
Total Commercial Paper 2,475,000.00 0.66% 2,471,285.17 0.66% 0.00 0.00 F-1 0.23
MONEY MARKET FUND FI
261908107 Dreyfus Short-Intermediate Gov Treasury 4204,542.11 Various 4,204,542,11 1.00 4204542.11 6.59% Asa I AAA 000
Cash Management Fd521 0,18% 4,204,542.11 0.18% 0,00 0.00 AAA 00o
4,204,542.11 4,204,542.11 6.59% Aaa I AAA 0.00
Total Money Market Fund FI 4,204,542.11 0.18% 4,204,542,11 0,18% 0.00 0.00 Are 0.00
NEGOTIABLE CD
216UBPVO RabOBank Nederland NV NY Negotiable 1,000,000.00 12/22/2015 999,830.00 100.00 999,955.93 1.57% Aa2/NR 010
DD 0,76% 999,955,93 016% 2,884.90 0.00 NR 0A0
0.716%Due 5I612016
999,830.00 999,955.93 1.57% Aa2I NR 0.10
Total Negotiable CD 1,000,000.00 0J6% 999,955.93 0.76% 2,884.90 0.00 NR 0.10
Chandler Asset Mene9emenl-CONFIDENTIAL 44
C," Orange County Sanitation District Liquid Holdings Report
Account 010282 As of 3/31/16
Purchase Da Cost Va Mid Price Market Value %of Pod. Moaull Maturity
CUSIP Security Description Par Value/Units Book Yie Book Va Mkt YlrM Accrued Ind. Gain/Loss Fitch Duration
SUPRANATIONAL 11111
45950VCJ3 International Finance Corp Note 2,500,000.00 12/29/2015 2,498,750.00 99.99 2,499,862.50 3.93% Add/AAA 0.13
0.5%Due 5/16/2016 0.63% 2,499,592.39 0.54% 4,687.50 270.11 AAA 0.12
4581XOCJ5 Inter-American Dev Bank Note 2,500,000.00 03I29I2016 2,499,150.00 100.01 2,500,221.50 3.92% Aaa IAAA 0.45
0.625%Due 911212016 0.70% 2,499,160.24 0.60% 824.65 1,067.26 AAA 0.45
459058BS1 Ind.Bank Farad B Development Note 2,500,000.00 0210512016 2.506,225.00 101 2,508,607.50 3.93% Aaa/AAA 0.46
1%Do.9/15/2016 0.59% 2,504,725.34 0.24% 1,111.11 3,882.16 AAA 0.46
7,504,125.00 7,508,697.60 11.78% Aaa/AAA 0.35
Total Supranational 7,500,000.00 a."% 7,503,477.97 0.46% 6,623.26 5,219.53 Aaa 0.34
US CORPORATE
36962G6Z2 General Electric Capital Corp Note 1,000,000.00 08/26/2015 1,007,290.00 100.27 1,002,699.00 1.58% Al I AA, 0.28
1.5%Due]/12/2016 0.65% 1,002,353.10 0.53% 3,291.67 345AID NR 0.28
94974BFL9 Walls Fargo Corp Note 1,000,000.00 1212112015 1,001,870.00 100.18 1,001,773.00 1.57% A2IA 0.30
1.25%Due 712012016 0,92% 1,000,984.21 0.66% 2,465.28 788.79 AA- 0.30
06406HBX6 Bank of New York Note 1,000,000.00 1212112015 1.008,760.00 100.52 1,005,170.00 1.58% Al/A 0.33
2.3%Due]/28/2016 0.82% 1,004,763.50 0.70% 4,025.00 406.60 AA- 0.32
08467013133 Berkshire Hathaway Note 1,000,000.00 06I26I2015 1,014,170.00 100.57 1,005,739.00 1.58% Ae2/AA 0.38
2.2%Due 8/15R016 0.71 % 1,005,506+06 0.65% 2,811.11 232.94 A+ 0.37
191216AU4 Coca Cola Company Note 1,000,000A0 1212112015 1,006,450,00 100.43 1,004,267.00 1.58% Aa3/AA- 0.42
1.8%Dua 9112016 0.85% 1.003,916,07 0.77% 1,500.00 350.93 A+ 0.42
02665WAB7 American Honda Finance Note 1,000,000.00 12/21/2015 1,001,660.00 100.21 1,002,130.00 1.58% At/A+ 0.52
1.125%Due 1ON12016 0.91 % 1,001,089.38 031% 5,437.50 1,040.62 NR 0.51
24422ESD2 John Deere Capital Corp Note 1,000,000.00 1212112015 1,001,070+00 100.13 1,001,297.00 1.58% A21 A 0.53
1.05%Due 10/11/2016 0.91% 1,000,707.23 0.80% 4,958.33 589.77 NR 0.52
91159HHB9 US Bancorp Callable Note Cont 1,000,000.00 1212112015 1.009,900.00 100.85 1,008,461.00 1.59% At/A+ 0.63
10/14/2016 0.96% 1.006,577.63 0.83% 8,311.11 1,883.37 AA 0.61
2.2%Due 1111 512 01 6
46623EJY6 JP Morgan Chase Note 1,000,000.00 02I26I2016 1,000,470.00 100.22 1,002,200.00 1.57% A3/A- 0.88
1.35%Due 211512017 1.30% 1.000 42971 1 10% 7 725.00 1770.29 A+ 0.86
9,051,640.00 9,033,736.00 14.22% At I A+ 0.47
Total US Corporate 9,000,000.00 0.89% 9,026,326,89 0]5% 34,525.00 7,409,11 AA- 0.47
US TREASURY JL
912828QPB US Treasury Note 4,000,000.00 Various 4.028,841+53 100.24 4,009,488.00 6.32% Aaa/AA- 0.17
1.75%Due 5/31/2016 0.32% 4,00&333.24 0.32% 23,524.60 15416 AAA 0.17
912828VG2 US Treasury Note 14,000,000.00 Various 14,001,609.40 1D0.D4 14,006,286.00 21.99% Aaa/AA+ 0.21
0.6%Due 6/15/2016 0.49% 14,000,704.07 0.28% 20,655.74 6,581.93 AAA 0.21
912828VL1 US Treasury Note 3,000,000.00 12/15/2015 2,999,541.30 100.06 3,002,343.00 4.71 % Atul 0.29
0.625%Due 7/1512016 0.65% 2,999,772.81 0.36% 3,9%.35 2,570.19 AAA 0.29
91281 US Treasury Note 3,000,000.00 12/16/2015 3.003,760.05 100.20 3,005,859.00 4.71 % Aaa/AA+ 0.46
0.875%Due 9/15I2016 0.71% 3,002,291.71 046% 1,212.64 3,567.29 AAA 0.46
Chandler Aseet Menegemem-CONFIDENTIAL 45
OROrange County Sanitation District Liquid Holdings Report
Account 010282 As of 3/31/16
Purchase Do:d Cost Va:uv Mid Price Market Value %of Pod. MoodyIS&P Maturity
CUSP Security Description Par Value/Units Book Yie Book Va Mkt YTM Accrued Ind. Gain/Loss Fitch Duration
US TREASURY
912828RJ1 US Treasury Note 2,000,000.00 02/04/2016 2,005,78795 100.28 2,005,624.00 3.14% Ann/AA- 0.50
1%Due 9/30/2016 0.55% 2,004,426.08 044% 54.64 1,197,92 AAA 0.50
26,039,540.23 26,029,600.00 40.88% Aaa I AAt 0.26
Total US Treasury 26,000,000.00 0.50% 26,016,527.91 0.33% 49,413.97 13,072.09 As. 0.26
63,704,349.87 63,69g999.66 100.00% P-2I A-1 0.27
TOTAL PORTFOLIO 63,639,542.11 0.58% 63,669,278.93 0.46% 96,801.73 25,700.73 F-1+ 0.27
TOTAL MARKET VALUE PLUS ACCRUED 63,791,791.39
Chandler Asset Management-CONFIDENTIAL 46
C," OCSD Lehman Exposure Holdings Report
Account#10284 As of 3/31/16
Purchase Do Cost Va lue Mid Price Market Value %of Pod. MoodyIS&P Maturity
CUSP Security Description Par Value/Units Book Yen Book V. Mkt YTM Accrued Int. Gain/Loss Fitch Duration
COMMON STOCK
SLHOPNTA4 Lehman Brothers,Inc Open Position 68,128.13 11/21/2014 68,128.13 0.42 28,184.13 21.12% NR/NR 0.00
Long Exposure 0.00% 68,128.13 0.00% 0.00 (39,344.00) NR 0.00
Due W3112016
68,120.13 28,784.13 21.12% NR/NR 0.00
Total Common Stock 68,128.13 NIA 68,128.13 0.00% 0.00 (39,34•t.00) NR 0.00
US CORPORATE
525ESC167 Lehman Brothers Note-Defaulted 600,000,00 09/19/2008 368,851,84 5.00 29,988.00 22.00% NRINR 082
Due 112412017 0.00% 368,851.84 000% 0.00 (338,863.84) NR 000
525ESCOV6 Lehman Brothers Note-Defaulted 2,000,000,00 09/18/2008 1,193,511M6 3.88 77,52(1 56.88% NR/NR 3358
Due 10/2212049 0.00% 1,193,511.06 0.00% 0.00 (1,115,991.06) NR 0.00
1,562,362.90 107,508.00 78.88% NR/NR 24.44
Total US Corporate 2,600,000.00 NIA 1,562,362.90 0.00% 0.00 (1,454,854.90) NR 0.00
1,630,491.03 136,292.13 100.00% NR/NR 19.28
TOTAL PORTFOLIO 2,668,128.13 NIA 1,630,491.03 0.00% 0.00 (1,494,198.90) NR 0.00
TOTAL MARKET VALUE PLUS ACCRUED 136,292.13
Chandler Asset Mene9emem-CONFIDENTIAL 47
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 Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection may not
be as large as in Aaa securities or fluctuation of protective elements may be of greater
amplitude or there may be other elements present which make the long-term risks appear
somewhat larger than in Aaa securities.
"A" - Bonds which are rated A possess many favorable investment attributes and are to
be considered as upper medium grade obligations. Factors giving security to principal and
interest are considered adequate, but elements may be present which suggest a
susceptibility to impairment sometime in the future.
Mae" - Bonds which are rated Bea 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 As, 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 Ratina
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.
2015-16 Third Quarter Review
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a
C�p
April 30, 2016
STAFF REPORT
Certificates of Participation (COP) Quarterly Report
for the Period Ended March 31, 2016
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 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.
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.
ODSD ♦ P.O.Box B127 ♦ Fountain Valley,LA 9272B-B127 • (714)%2-2411
Quarterly COP Report
For the Three Months Ended March 31, 2016
Page 2 of 2
In August 2012, the District issued $66.395 million of fixed rate COPs, Series 2012B
refunding the Series 2000 variable rate debt. The true interest cost for the issue is 1.50
percent.
With the issuance of Series 201213, 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 2007E debt. The true interest cost for the issue is
3.30 percent.
On March 30, 2016, the District issued $145.880 million of fixed rate COPs, Series
2016A, refunding a portion of the Series 2009A fixed rate debt. The true interest cost
for the issue is 3.02 percent.
Additional Information
The graph entitled, "OCSD COP Rate History Report,' shows the various fixed interest
rates of the District's twelve debt issues.
Attachments
1. Graph - OCSD COP Rate History Report
Prepared by Finance,4/25/2016,1:18 PM
OCSD COP RATE HISTORY REPORT
MARCH 2O16
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2015-16 Third Quarter Review
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ORANGE COUNTY SANITATION DISTRICT
FINANCIAL MANAGEMENT DIVISION
10844 Ellis Avenue
Fountain Valley, California 92708-7018
714.962.2411
www.ocsewers.com
03/31/16