HomeMy WebLinkAbout08-22-2018 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, August 22, 2018
Regular Meeting of the 6:00 P.M.
BOARD OF DIRECTORS Board Room
` 10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
AGENDA
CALL TO ORDER
INVOCATION AND PLEDGE OF ALLEGIANCE (Ellery Deaton, City of Seal Beach)
ROLL CALL (Clerk of the Board)
DECLARATION OF QUORUM (Clerk of the Board)
PUBLIC COMMENTS: If you wish to address the Board of Directors on any item, please complete a
Speaker's Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or
notify the Clerk of the Board the item number on which you wish to speak. Speakers will be recognized by
the Chairperson and are requested to limit comments to three minutes.
SPECIAL PRESENTATIONS:
Employee Service Awards
REPORTS: The Board Chairperson and the General Manager may present verbal reports on
miscellaneous matters ofgeneral interest to the Directors. These reports are for information only and require
no action by the Directors.
CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by
the Board of Directors, after one motion,without discussion. Any items withdrawn from the Consent Calendar
for separate discussion will be considered in the regular order of business.
1. APPROVAL OF MINUTES (Clerk of the Board)
RECOMMENDATION: Approve the minutes of the Regular Meeting of the Board
of Directors held on July 25, 2018.
08/=018 OCSD Board of Directors Agenda Page 1 of 5
RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the
Board Chair.
2. COMMITTEE MINUTES (Clerk of the Board)
RECOMMENDATION: Receive and file the approved minutes of the following
meetings:
A. Steering Committee Meeting of June 27, 2018.
B. GWRS Steering Committee Meeting of April 9, 2018.
3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF
JULY 2018 (Lorenzo Tyner)
RECOMMENDATION: Receive and file the report of the Investment Transactions
for the month of July 2018.
PUBLIC HEARING:
4. COLLECTION OF SEWER SERVICE CHARGES VIA THE TAX ROLL
(Lorenzo Tyner)
RECOMMENDATION:
A. Conduct a public hearing to receive input on a report filed with the Clerk of
the Board entitled "Sewer Service Charges for Collection on Tax Rolls for
Fiscal Year 2018-19"
1. Open the public hearing
2. Receive staff report and recommendations
3. Report of written communications by Clerk of the Board
4. Public Comment
5 Close Public Hearing
6 Discussion by the Board of Directors
B. Unless there is a majority protest, adopt the report, which has the assessor's
parcel numbers and amount of charges for collection on the tax rolls;
C. Adopt Resolution No. OCSD 18-14 entitled, "A Resolution of the Board of
Directors of the Orange County Sanitation District adopting the Report
proposing to collect Sewer Service Fees on the Tax Roll for Fiscal Year
2018/2019";
D. Direct staff to file a certified copy of the adopted report and resolution with
the County Auditor-Controller; and
E. Direct staff to coordinate collection of sanitary sewer service charges on the
general Orange County tax rolls with the County Auditor-Controller,
Assessor, and Tax Collector.
08/22I2018 OCSD Board of Directors Agenda Page 2 of 5
OPERATIONS COMMITTEE:
None.
ADMINISTRATION COMMITTEE:
None.
LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE:
None.
STEERING COMMITTEE:
5. RETIREMENT OF ROBERT P. GHIRELLI ASSISTANT GENERAL MANAGER
OF THE ORANGE COUNTY SANITATION DISTRICT (Jim Herberg)
RECOMMENDATION: Adopt Resolution No. OCSD 18-13 entitled, "A Resolution
of the Board of Directors of the Orange County Sanitation District commending Dr.
Robert P. Ghirelli for his contributions and dedication to public service as Assistant
General Manager of the Orange County Sanitation District."
NON-CONSENT:
6. TREASURER'S REPORT FOR THE FOURTH QUARTER ENDED JUNE 30, 2018
(Lorenzo Tyner)
RECOMMENDATION: Receive and file the Orange County Sanitation District
Fourth Quarter Treasurer's Report for the period ended June 30, 2018.
7. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE
PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner)
RECOMMENDATION:
A. Receive and file Orange County Sanitation District purchases made under
the General Manager's authority for the period of April 1, 2018 to
June 30, 2018; and
B. Approve the following additions to the pre-approved OEM Sole Source List
for the period of April 1, 2018 to June 30, 2018:
• BEAMEX- Calibrators and communicators
• M.K. PLASTICS CORPORATION - Flex connectors for foul air fans
• PMWEB - Project management information system software support
• RBR - Electronic water quality sensors
08/=018 OCSD Board of Directors Agenda Page 3 of 5
• SIEMENS BUILDING MANAGEMENT SYSTEM (BMS) - Maintenance
Technician training for HVAC and Instrumentation departments
• TOSHIBA - HVK Circuit Breakers
8. SLATER PUMP STATION VALVE REPLACEMENTS, PROJECT NO. FE16-14
(Rob Thompson)
RECOMMENDATION:
A. Award a construction contract to PCL Construction, Inc. for the Slater Pump
Station Valve Replacements, Project No. FE16-14, for a total amount not to
exceed $459,674; and
B. Approve a contingency of$45,967 (10%).
9. GENERAL MANAGER'S COMPENSATION AND BENEFITS
(Greg Sebourn)
RECOMMENDATION: Adopt Resolution No. OCSD 18-15 entitled, "A Resolution
of the Board of Directors of the Orange County Sanitation District approving salary
increase and salary range adjustment for the General Managerfor Fiscal Year 2018
to 2019," authorizing the Board Chair to implement a base building salary increase
of 5.0%, consisting of a 2.5% salary range adjustment and a 2.5% merit increase
commencing in the first pay period of July 2018 for fiscal year 2018 to 2019. The
total salary cost increase is$13,832 for the fiscal year. Compensation and benefits
costs based on impacts to existing benefits total an amount not to exceed $17,761.
AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report
regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the
Agency's expense, per Government Code§53232.3(d).
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
ADJOURNMENT:
Adjourn the Board meeting until the Regular Meeting of the Board of Directors
on September 26, 2018 at 6:00 p.m. in memory of former Board Member Philip Anthony.
08/=018 OCSD Board of Directors Agenda Page 4 of 5
Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related
accommodations,please contact the Orange County Sanitation District Clerk of the Board's once at(714)593-7433 at least 72
hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested.
Agenda Posting: In accordance with the requirements of California Govemment Code Section 54954.2, this agenda has been
posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley,
California, and on the Sanitation Districts website at www.ocsd.com,not less than 72 hours prior to the meeting date and time
above. All public records relating to each agenda item, including any public records distributed toss than 72 hours prior to the
meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board.
Agenda Description: The agenda provides a brief general description of each Rem of business to be considered or discussed.
The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed
appropriate.
NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting,items must be submitted to the Clerk
of the Board 14 days before the meeting.
Kelly A.Lore,MIMIC
Clerk of the Board
(714)593-7433
kloretdocsd.com
For any questions on the agenda,Committee members may contact stag al:
General Manager Jim Herberg (714)593-7300 Iherberg(docsd.com
Assistant General Manager Bob Ghimili (714)593-7400 chimili(docsd.com
Assistant General Manager Rob Thompson (714)593-7310 dhompson(docsd.com
Director of Environmental Services Jim Colston (714)593-7450 colstomBocstl com
Director of Finance and Lorenzo Tyner (714)593-7550 lomer(docedeten
Administrative Services
Director of Human Resources Celia Chandler (714)593-7202 cchandlerfdocsd.com
Director of Operations&Maintenance Ed Torres 714 593-7080 etmmt, .cad..m
08/22I2018 OCSD Board of Directors Agenda Page 5 of 5
ITEM NO. 1
Orange County Sanitation District
MINUTES
BOARD MEETING
July 25, 2018
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0 712 512 01 8 Minutes of Board Meeting Page 1 of 10
ROLL CALL
A regular meeting of the Board of Directors of the Orange County Sanitation District was
called to order by Board Chairman Greg Sebourn on July 25, 2018, at 6:01 p.m., in the
Administration Building. Chair Sebourn delivered the invocation and led the Pledge of
Allegiance.
The Clerk of the Board declared a quorum present as follows:
ACTIVE DIRECTORS ALTERNATE DIRECTORS
X Gregory Sebourn, Chair Jesus Silva
X Denise Barnes Lucille Kring
X Allan Bernstein Chuck Puckett
X Robert Collacott Robbie Pitts
X Ellery Deaton Sandra Massa-Lavitt
X James M. Ferryman Bob Ooten
X Phil Hawkins Brooke Jones
X Steven Jones Kris Beard
X Peter Kim Marshall Goodman
X Charlie Nguyen Al Krippner
X Richard Murphy Warren Kusumoto
X Steve Nagel Cheryl Brothers
X Glenn Parker Cecilia Hupp
X Scott Peotter Brad Avery
X Erik Peterson Mike Posey
Tim Shaw X Michael Blazey
X David Shawver Carol Warren
X Fred Smith Virginia Vaughn
X Teresa Smith Mark Murphy
X Michelle Steel Shawn Nelson
A Sal Tinajero David Benavides
X Donald Wagner Lynn Schott
A Chad Wanke Ward Smith
A John Withers Douglas Reinhart
Mariellen Yarc X Stacy Berry
STAFF MEMBERS PRESENT: Bob Ghirelli,Assistant General Manager; Rob Thompson,
Assistant General Manager; Ed Torres, Director of Operations & Maintenance; Lorenzo
Tyner, Director of Finance & Administrative Services; Kelly Lore, Clerk of the Board;
Stephanie Barron; Jennifer Cabral; Ron Coss; Mike Dorman; Alfredo Garcia; Tina Knapp;
Mark Manzo; Laura Maravilla; Tiffany Nguyen; and Ddaze Phuong.
OTHERS PRESENT: Brad Hogin (General Counsel); and Alternate Directors Bob Ooten
CMSD and Al Krippner, MCSD.
07/25/2018 Minutes of Board Meeting Page 2 of 10
PUBLIC COMMENTS:
None.
SPECIAL PRESENTATIONS:
None.
REPORTS:
Chair Sebourn announced that the Committees will be dark in August. He then stated that
the U.S. Environmental Protection Agency is hosting an event at the Orange County Water
District on Wednesday, August 1 to announce that the Water District will be receiving a
federal Water Infrastructure loan for the expansion of GWRS. As soon as we find out more
information, the Clerk of the Board will notify you by email.
Assistant General Manager Bob Ghirelli provided the following information: OCSD
received the NACWA Platinum Award for achieving 100% water discharge permit
compliance over a consecutive five-year period. General Manager Jim Herberg is in
Boston this week where he accepted the award on behalf of OCSD during NACWA's 2018
Utility Leadership Conference.
Mr. Ghirelli announced that the U.S. Open will begin this Saturday in Huntington Beach and
while we do not expect any problems, OCSD will be fully staffed during our off shifts, just in
case.
Mr. Ghirelli informed the Board that to facilitate the relocation of the Santa Ana River
Interceptor Line in 2014, OCSD loaned the County of Orange $56.5 million pending receipt
of funds from the State Flood Control Subventions Program; and went on to say that the
County had completed full repayment this month.
In conclusion, Mr. Ghirelli stated that OCSD posted an impressive 99.4% safety training
completion for the fourth quarter of 2018, and a cumulative score of 99% for the entire
2017-18 fiscal year. He stated that the safety scorecard is an indication of OCSD's
standard commitment to ensure the safety of its employees.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED, SECONDED, AND DULY CARRIED TO: Approve the minutes of the
Regular Meeting of the Board of Directors held on June 27, 2018.
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Kim; R. Murphy; Nagel;
Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
07/25/2018 Minutes of Board Meeting Page 3 of 10
ABSTENTIONS: None
ABSENT: Jones; Tinajero; Wanke; and Withers
RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the
Board Chair.
2. COMMITTEE MINUTES (Clerk of the Board)
Received and filed the approved minutes of the following committees:
A. Steering Committee Meeting of May 23, 2018
B. Operations Committee Meetings of June 6, 2018
C. Administration Committee Meeting of June 11, 2018
D. Legislative and Public Affairs Meeting of June 13, 2018
3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF
JUNE 2018 (Lorenzo Tyner)
Received and filed the report of the Investment Transactions for the month of June
2018.
OPERATIONS COMMITTEE:
4. EXTENSION FOR FISH TRACKING STUDY SOLE SOURCE CONTRACT WITH
DR. CHRISTOPHER LOWE - CALIFORNIA STATE UNIVERSITY LONG BEACH
(Jim Colston)
MOVED, SECONDED, AND DULY CARRIED TO: Ratify and approve a contract
extension to Dr. Christopher Lowe of the California State University Long Beach for
the period July 1, 2018 through October 31, 2018 at a cost not to exceed $14,058
for a total contract cost not to exceed $214,058.
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Kim; R. Murphy; Nagel;
Nguyen; Parker; Peotter, Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Jones; Tinajero; Wanks; and Withers
5. AGREEMENTS FOR THE PURCHASE OF SODIUM HYPOCHLORITE (BLEACH
SOLUTION), SPECIFICATION NO. C-2018-939BD FOR ODOR CONTROL AND
PLANT WATER DISINFECTION IN THE TREATMENT PLANTS (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Award a Chemical Supplier Agreement to Olin Corporation, for the purchase
of bulk Sodium Hypochlorite (Bleach Solution), Specification No. C-2018-
93913D, for the period of September 1, 2018 through August 31, 2019, for a
unit price of $0.698/gallon, delivered, plus applicable sales tax, for a total
07/25/2018 Minutes of Board Meeting Page 4 0(10
estimated annual amount of $910,890 with four (4) one-year renewal
options;
B. Award a Contract Purchase Order to Waterline Technologies, Inc., for the
purchase of chemical totes of Sodium Hypochlorite, Specification No.
C-2018-939BD, for the period of September 1, 2018 through August 31,
2019, for a unit price of$1.16/gallon, delivered, plus applicable sales tax, for
a total estimated annual amount of $4,996 with four (4) one-year renewal
options; and
C. Approve a unit price contingency of 10% per year for General Manager's
Recommendation Items A and B.
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Kim; R. Murphy; Nagel;
Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Jones; Tinajero; Wanke; and Withers
6. CEQA PLAN 2017— MASTER CONTRACT NO. CEQA PLAN2017-00
(Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve Amendments to Master Contracts for annual Professional Services
Agreements with HDR Engineering, Inc.; Michael Baker International, Inc.;
Helix Environmental Planning, Inc.; ESA; AECOM Technical Services, Inc.;
and LSA Associates, Inc. for on-call CEQA Master Contract No. CEQA
PLAN2017-00 to increase the allowable individual task order limit to
$300,000, and the allowable maximum annual contract year limitation to
$600,000 as established by Purchasing Ordinance No. OCSD-52 for each
Professional Services Agreement; and
B. Authorize the General Manager to approve amendments for the remaining
annual renewals of the Master Contracts with HDR Engineering, Inc.;
Michael Baker International, Inc.; Helix Environmental Planning, Inc.; ESA;
AECOM Technical Services, Inc.; and LSA Associates, Inc.for on-call CEQA
Master Contract No. CEQA PLAN2017-00 in an amount not to exceed the
allowable maximum annual amount established in Purchasing Ordinance
No. OCSD-52 for each Professional Services Agreement.
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Kim; R. Murphy; Nagel;
Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Jones; Tinajero; Wanke; and Withers
07 252018 Minutes of Board Meeting Page 5 of 10
7. ON-CALL PLANNING STUDIES MASTER CONTRACT NO. PLAN2017-00
(Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve Amendments to Master Contracts for the annual Professional
Services Agreements with Brown and Caldwell; AECOM Technical Services,
Inc.; HDR Engineering, Inc.; Dudek; and Woodard & Curran, Inc. for on-call
Planning Studies Master Contract No. PLAN2017-00 to increase the
allowable individual task order limit to$300,000, and the allowable maximum
annual contract year limitation to $600,000 as established by Purchasing
Ordinance No. OCSD-52 for each Professional Services Agreement; and
B. Authorize the General Manager to approve amendments for the remaining
annual renewals of the Master Contracts with Brown and Caldwell; AECOM
Technical Services, Inc.; HDR Engineering, Inc.; Dudek; and Woodard &
Curran, Inc. for on-call Planning Studies Master Contract No. PLAN2017-00
in an amount not to exceed the allowable maximum annual amount
established in Purchasing Ordinance No. OCSD-52 for each Professional
Services Agreement.
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Kim; R. Murphy; Nagel;
Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Jones; Tinajero; Wanke; and Withers
ADMINISTRATION COMMITTEE:
8. ENTERPRISE DATA STORAGE UPGRADE (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Authorize a Purchase Order Contract with Nth Generation Computing for
Nimble Equipment Upgrade and Support Specification Number E-2018-
953BD for a total amount not to exceed $568,127; and
B. Approve a contingency of$56,813 (10%).
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Kim; R. Murphy; Nagel;
Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Jones; Tinajero; Wanke; and Withers
07 252018 Minutes of Board Meeting Page 6 of 10
9. VMWARE ENTERPRISE LICENSE AGREEMENT FOR SERVER AND DESKTOP
VIRTUALIZATION (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Authorize a Purchase Order Contract with Nth Generation Computing for
VMware Licenses and Support, Specification Number S-2018-954BD-R, for
a total amount not to exceed $595,272; and
B. Approve a contingency of$59,527(10%).
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Kim; R. Murphy; Nagel;
Nguyen; Parker; Peotter, Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Jones; Tinajero; Wanks; and Withers
11. 2019 BENEFITS INSURANCE RENEWAL (Celia Chandler)
MOVED, SECONDED, AND DULY CARRIED TO:
Approve the Orange County Sanitation District 2019 Benefits Insurance Renewal
for the not-to-exceed amounts specified below:
A. WORKTERRA, formerly Employee Benefit Specialists (medical, dental, and
vision plans; Health Savings Accounts [HSA]; and Employee Assistance
Program [EAP])— Not to Exceed $10,983,125;
B. Life Insurance & Disability Carrier TBD' (basic life, short- and long-term
disability)— Not to Exceed $709,394;
C. The Standard (EMT & Manager disability)— Not to Exceed $30,000; and
D. Approve a contingency of$1,172,251 (10%).
'Prudential is the Sanitation District's current carrier for life and disability insurance.
However, there may be a change in carrier for the upcoming plan year, which would
result in a decrease in insurance premiums, pending renewal negotiation results.
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Kim; R. Murphy; Nagel;
Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Jones; Tinajero; Wanke; and Withers
Director Jones reentered the meeting.
07/25/2018 Minutes of Board Meeting Page 7 of 10
Item No. 10 pulled and heard separately.
10. REVENUE REFUNDING CERTIFICATE ANTICIPATION NOTES, SERIES 2018A
(Lorenzo Tyner)
Director Peotter raised concerns and requested additional information regarding the
lack of a repayment plan for this item. Director of Finance and Administrative
Services, Lorenzo Tyner provided information regarding the refunding strategy.
RECOMMENDATION:
A. Authorize the General Manager to issue Revenue Refunding Certificate
Anticipation Notes, Series 2018A, as fixed-rate obligations maturing in
February 2022, subject to market conditions, in an amount not to exceed
$109,875,000 to replace the $109,875,000 Revenue Refunding Certificate
Anticipation Notes, Series 2016B maturing on December 15, 2018; and
B. Direct staff to provide a proposed principal repayment schedule and report
strategies for eliminating the debt.
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Jones; Kim; R. Murphy;
Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero; Wanke; and Withers
LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE:
None.
STEERING COMMITTEE:
12. LEASE AGREEMENT WITH CARL KARCHER ENTERPRISES (CKE)
PROVIDING DISTRICT PARCEL FOR CKE PARKING AND/OR RELATED
ACTIVITIES (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Approve a one year and five-
month lease agreement, beginning August 2018, with Cad Karcher Enterprises, Inc
(CKE), a California Corporation, to allow paving, striping, parking, and related
improvements by CKE within the Orange County Sanitation District's 4-foot wide
utility corridor located at 21532 South Brookhurst Street, Huntington Beach.
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Jones; Kim; R. Murphy;
Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
07/25/2018 Minutes of Board Meeting Page 8 of 10
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero; Wanks; and Withers
Late communication regarding changes to Page 7 of the Resolution in Item No. 13 were
provided by the Clerk of the Board.
13. LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE (Bob Ghirelli)
MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD
18-12 entitled, "A Resolution of the Board of Directors of Orange County Sanitation
District establishing Rules of Procedure for the Conduct of Business of the District;
and repealing Resolution No. OCSD 17-18", which will amend the rules of
procedure to provide for the appointment of a Chairperson and Vice Chairperson of
the Legislative and Public Affairs Committee by the Chairperson of the Board of
Directors.
AYES: Barnes; Bernstein; Berry (Alternate); Blazey (Alternate);
Collacott; Deaton; Ferryman; Hawkins; Jones; Kim; R. Murphy;
Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver;
F. Smith; T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero; Wanks; and Withers
NON-CONSENT:
None.
AB 1234 DISCLOSURE REPORTS:
Director Ferryman reported on that the Borders Committee meeting will be held tomorrow;
all other committees are dark.
Chair Seboum, informed the committee of his recent trip to Kauai where he learned and
found interesting their waste treatment plant with injection into the ground.
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
Director Peterson thanked Public Affairs Supervisor Jennifer Cabral and the Public Affairs
staff regarding the great public outreach that has been provided to the City.
07/25/2018 Minutes of Board Meeting Page 9 of 10
ADJOURNMENT:
At 6:16 p.m., Chair Seboum adjourned the meeting until the Regular Meeting of the Board
of Directors to be held on August 22, 2018 at 6:00 p.m.
Submitted by:
Kelly A. Lore, MMC
Clerk of the Board
07/25/2018 Minutes of Board Meeting Page 10 of 10
ITEM NO. 2
MINUTES OF THE
STEERING COMMITTEE
Orange County Sanitation District
Wednesday, June 27, 2018 at 5:00 p.m.
A regular meeting of the Steering Committee of the Orange County Sanitation
District was called to order by Boar Chairman Greg Sebourn on Wednesday,
June 27, 2018 at 5:00 p.m. in the Administration Building of the Orange County
Sanitation District.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Greg Sebourn, Board Chair Jim Herberg, General Manager
David Shawver, Board Vice-Chair Bob Ghirelli, Assistant General Manager
Ellery Deaton, Member-At-Large Rob Thompson, Assistant General
Tim Shaw, Member-At-Large Manager
Donald Wagner, Member-At-Large Ed Torres, Director of Operations &
Chad Wanke, Administration Committee Maintenance
Chair Lorenzo Tyner, Director of Finance &
John Withers, Operations Committee Administrative Services
Chair Kelly Lore, Clerk of the Board
Mike Dorman
COMMITTEE MEMBERS ABSENT: Alfredo Garcia
Tom Grant
Laurie Klinger
Tina Knapp
Rebecca Long
Mark Manzo
Laura Maravilla
Kathy Millea
Jeff Mohr
Andrew Nau
Ddaze Phuong
OTHERS PRESENT:
Brad Hogin, General Counsel
Gary Weisberg, Assistant General
Counsel
Jose Zepeda, IRWD
PUBLIC COMMENTS:
No public comments were provided.
0 82 712 01 8 Steering Committee Minutes Page 1 of 4
REPORTS:
Chair Sebourn did not provide a report.
General Manager Jim Herberg did not provide a report.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the
Regular Meeting of the Steering Committee held on May 23, 2018.
AYES: Deaton; Sebourn, Shaw; Shawver; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Wanke and Wagner
NON-CONSENT:
2. IRVINE RANCH WATER DISTRICT OUT OF AREA SERVICE FOR LOS
ALISOS ADDITION (Rob Thompson)
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board
of Directors to: Adopt Resolution No. OCSD 18-XX entitled: "A Resolution of
the Board of Directors of the Orange County Sanitation District supporting
Irvine Ranch Water District's Local Agency Formation Commission application
to expand Orange County Sanitation District's service boundary to include
Portola Hills and Baker Ranch per the May 8, 2017 Agreement with Irvine
Ranch Water District."
AYES: Deaton; Sebourn, Shaw; Shawver; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Wanke and Wagner
Director Wagner arrived at 5.05 p.m.
Director Wanke arrived at 5:06 p.m.
3. GENERAL MANAGER'S FY 2017-2018 WORK PLAN YEAR-END
UPDATE (Jim Herberg)
General Manager Herberg provided a PowerPoint presentation and a brief
update on the FY 2017-2018 Work plan.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board
of Directors to: Receive and File the General Manager's FY 2017-2018 Work
Plan Year-End Update.
O6127/2018 Steering Committee Minutes Page 2 of 4
AYES: Deaton; Sebourn, Shaw; Shawver; Wanke; Wagner
and Withers
NOES: None
ABSTENTIONS: None
ABSENT: None
4, TITLE XVI BUREAU OF RECLAMATION FUNDING OPPORTUNITY FOR
EFFLUENT REUSE PROJECT UNDER THE WATER INFRASTRUCTURE
IMPROVEMENTS FOR THE NATION (WIIN) ACT (Bob Ghirelli)
Assistant General Manager Bob Ghirelli introduced the item, provided a brief
informational presentation, and responded to questions from the Committee.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board
of Directors to: Adopt Resolution No. OCSD 18-XX entitled, "A Resolution of
the Board of Directors of the Orange County Sanitation District approving and
authorizing the grant application for the Title XVI Water Recycling Projects
under the Water Infrastructure Improvements for the Nation (WIIN) Act
including Orange County Sanitation District's Effluent Reuse Project; and the
Execution of Grant Documents with the United States Department of the
Interior, Bureau of Reclamation."
AYES: Deaton; Sebourn, Shaw; Shawver; Wanke; Wagner
and Withers
NOES: None
ABSTENTIONS: None
ABSENT: None
INFORMATION ITEMS:
None.
CLOSED SESSION:
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE
SECTION 54956.8 & 54957(b)(1):
The Committee convened in closed session at 5:14 p.m. to discuss two items. Closed
Session Item No. CS-2 was not heard. Confidential minutes of the Closed Sessions
have been prepared in accordance with the above Government Code Sections and
are maintained by the Clerk of the Board in the Official Book of Confidential Minutes
of Board and Committee Closed Session Meetings.
RECONVENED IN REGULAR SESSION:
The Committee reconvened in regular session at 5:56 p.m.
O6/27/2018 steering committee Minutes Page 3 of 4
CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED
SESSION:
General Counsel Brad Hogin did not provide a report.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
None.
ADJOURNMENT:
Chair Sebourn declared the meeting adjourned at 5:57 p.m. to the next Steering
Committee meeting to be held on Wednesday, July 25, 2018 at 5:00 p.m.
Submitted by:
4rkKe . re, MM e Board
0612712018 Steering Committee Minutes Page 4&4
MINUTES OF THE MEETING
GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE
Monday, April 9, 2018
OCWD Director Yoh called the Groundwater Replenishment System Steering Committee
meeting to order in the Boardroom at the District office. Following the Pledge of Allegiance to
the flag. the Secretary called firm role and repored a quorum.
Committee Members
Roger Yoh - Cho"
Greg Seb011rn
James Ferryman
Cathy Green
Steve Jones (Absent)
Phil Anthony (Absent)
Alternates
Donald Wagner
Phil Hawkins
Tim Shaw
Denis Bilodeau
James Vanderbilt (Absent)
Dina Nguyen (Absent)
'OCWD Director Bruce _Whitaker was in attendance.
i OCWD Staff _ OCSD Staff
l GinaAyala Jim if
r Meh
i Mehul Patel &II Dunivin Sandy Scott Roberts _Jenn�fer Cabral
1 Chnstma Fuller Assistant District Secretary
CONSENT CALENDAR
The Consent Calendar was approved upon motion by Director Sebourn., seconded by Director
Green with Director Hawkins abstaining, and canned l5-0-I 1 as follows.
Yes - Sebourn. Yoh, Ferryman, Green, Wagner
Abstain —iq,,,wkrlt3
m ..E.r:e:: ,r t4ue r:":W?r+ a9�1^3n., i r rnr d9.tanu a t'irrl.4 YaedS ,P ran teary a. 7,cNfo` t,v'he
ar}rozovad ;g
N FJ ,SRMA'M'! Nt ;i fr.+i!ir,•'+
( 1Ai(_ l *r':g i{.r� -l .Jfial_ae_)+,,_
i r ,.cr nr o4 ir. i:,ra�.rr �� i"d8 vN l r i':4e.1 i rod cir iitee hat :}CVIG':r
"id , sur"lllMe t c the Oil r:VL rio,3ni r ir i 2':�ts to it, the l;orll
r1Y I::garrt rl .l t'ng M, i cvi- eu w — ouc� 0 }nd irt� r cil inc,_YNn;
r r .y ctteiv h 5{:
VkA ( pc , ` - jif1 .
M; F tt : :ul n. IL,:Ytf . .ru.; i7J / -1. fr r ❑ _s :ah
4 r •J /':'T �r '8 xlt r! f state J I d Mr 'l „ :G * ' :3V'1il ,a. 'V''oI
rt.e. o,oducbn 842_ at ;.h;ui5- > ,04 ` elf nUo" 11 ti.geln ; ir i..f or N,'.. i uf for i
Cd1 t l .. n yr�trr.
z. Update on GWRS Final Expansion
G\NRS Program Manager Sandy Scott-Roberts reminded the Committee that OCWD has
entered into an agreement with Black & Veakch (B&V) for the design of the remaining four
GWRS Final Expansion (GWRSFE) Projects. She reported that The B&V design for the
GWRSFE Project is currently 24'/ compieto based or. the B&V agreement amount of
S5,663,000. She stated the draft Preliminary Design Report has been submitted and reviewed
by OCW D and OCS D staff and vain be finalized by the end of April 2018. tuts. Scott-Roberts
reviewed the project budget end schedule- She reported that OCSD/OC'RID applied for USBR
Title XVI grant for P2-122. the P2 Headworks Modification Project. Staff was notified in
November that the application for P2-122 received sorne of the highest ratings and will be
awarded $1,325-000 in arant funding_ She advised that staff is currently finalizing the GWRSFE
application for WiFIA which would recover approximately 49% of the projects design and
construction cost, it received. She reported that staff also applied for the State Revolving Fund
(SRF} loan for the GWRSFE Project.
5, Sunnnarv_of_G!fJRS Bellied Water and 10, '_Anniversary Outreach
Principal Communications Specialist Gina Ayala reported that the outreach program related to
the bottling of GWRS water and the commemoration of the 10th anniversary of the GWRS
began in February 2017 and concluded in March 2018. Ms. Ayala reviewed the activities,
events and media coverage that fulfilled the campaigns objectives. She reported on the
success of setting the new Guinness World records title for most recycled water in a 24 hour
period at the GWRS 10" anniversary event held on February 16, 2018.
6. Quarterly Outreach Report Januar�L- March 2018j
Ms. Ayala stated the report and media clips are included in the packet.
ADJOURNMENT
There being no further business to come before the Committee- the meeting was adjourned at
6'05 p n+.
YVVD Di cr PaO, in, Chair
BOARD OF DIRECTORS Meeting Date TOBd.Of Dk.
-- oB/zz/1B
AGENDA REPORT Item Item
3
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF
JULY 2018
GENERAL MANAGER'S RECOMMENDATION
Receive and file the report of the Investment Transactions for the month of July 2018.
BACKGROUND
The CA Government Code requires that a monthly report of investment transactions be
provided to the legislative body. Attached is the monthly report of investment transactions
for the month ended July 31, 2018.
RELEVANT STANDARDS
CA Government Code Section 53607
PRIOR COMMITTEE/BOARD ACTIONS
N/A
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following aftachment(s)is included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
Report of the Investment Transactions for the month ended July 31, 2018
Page 1 of 1
U.S. Bank
Transaction History
07/01/2018 Thru 07/31/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cast Gain/L
acnulsmorls
07/02/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 3,387,525.0000 1.000000 -3,387,525.00 3,387,525.00 0.00
07/03/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,830.6500 1.000000 -28,830.65 28,830.65 0.00
07/03/2018 31BOV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 28,643.5000 1.000000 -28,643.50 28,643.50 0.00
07/05/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 59,625.0000 1.000000 -59,625.00 59,625.00 0.00
07/05/2018 31BOV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 30,000.0000 1.000000 -30,000.00 30,000.00 0.00
07/06/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,000,000.0000 1.000000 -1,000,000.00 1,000,000.00 0.00
07/09/2018 31 WV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 55,000.0000 1.000000 -65,000.00 55,000.00 0.00
07/11/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,000,000.0000 1.000000 -5,000,000.00 5,000,000.00 0.00
07/13/2018 31 WV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 5,043,329.1700 1.000000 -5,043,329.17 5,043,329.17 0.00
07/13/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,500,000.0000 1.000000 -3,500,000.00 3,500,000.00 0.00
07/16/2018 02665WCJB PURCHASED PAR VALUE OF AMERICAN HONDA MTN 3.450% 7/14/23/BARCLAYS 845,000.0000 0.998270 4 3,538.15 843,538.15 0.00
CAPITAL INC.FIXED IN/845,000 PAR VALUE AT 99.827%
07/16/2018 313385D52 PURCHASED PAR VALUE OF F H L B DISC NTS 8/27118/NOMURA SECURITIES 5,000,000.0000 0.997783 4,988,916.67 4,988,916.67 0.00
INTERNATIONA/5,000,000 PAR VALUE AT 99.7783334%
07/16/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,032,500.0000 1.000000 -1,032,500.00 1,032,500.00 0.00
07/16/2018 31 WV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 33,705.6000 1.000000 -33,705.60 33,705.60 0.00
07/17/2018 3137EAEN5 PURCHASED PAR VALUE OF F H L M C 2.750% 6/19/23/NOMURA SECURITIES 5,000,000.0000 0.994180 4,970,900.00 4,970,900.00 0.00
INTERNATIONA/5,000,000 PAR VALUE AT 99.418%
07/18/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 128,474.8600 1.000000 -128.474.86 128,474.86 0.00
07/18/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 31,875.0000 1.000000 -31,875.00 31,875.00 0.00
07/19/2018 89113X7B4 PURCHASED PAR VALUE OF TORONTO C D 2.260%10129/18/BONY/TORONTO 1,000,000.0000 1.000000 -1,000,000.00 1,000,000.00 0.00
DOMINION SECURITII1,000,000 PAR VALUE AT 100%
07/19/2018 31 WV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 5,000.000.0000 1.000000 -5,000,000.00 5,000,000.00 0.00
07/19/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 58,055.5600 1.000000 -58,055.56 58,055.56 0.00
07/20/2018 31 WV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 14,075.0000 1.000000 -14,075.00 14,075.00 0.00
07/20/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,675.6800 1.000000 4,675.68 4,675.68 0.00
0712MO18 31BOV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 136,011.9900 1.000000 -136,011.99 136,011.99 0.00
07/23/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 198,125.0000 1.000000 -198,125.00 198,125.00 0.00
07/24/2018 06051GFD6 PURCHASED PAR VALUE OF BANK OF AMERICA CORP 2.650% 4/01/19/MLPFS 1,500,000.0000 0.999940 -1,499,910.00 1,499,910.00 0.00
INC/FIXED INCOME/1,500,000 PAR VALUE AT 99.994%
07/24/2018 94974BFU9 PURCHASED PAR VALUE OF WELLS FARGO COM MTN 2.125% 4/22/19/BARCLAYS 1,500,000.0000 0.996060 -1,494,090.00 1,494,090.00 0.00
CAPITAL INC.FIXED IN/1,500,000 PAR VALUE AT 99.606%
07/25/2018 47788EAC2 PURCHASED PAR VALUE OF JOHN DEERE OWNER 3.080%11/15/22/MLPFS 4,630,000.0000 0.999924 4,629,649.05 4,629,649.05 0.00
INC/FIXED INCOME14,630,000 PAR VALUE AT 99.99242009%
1 of 9
U.S. Bank
Transaction History
07/01/2018 Thru 07/31/2018
EMry D.t�CUSIP Id Explanation Unit� Price Net Cash Amt Cost Gain/Loss
07/25/2018 65479GAD1 PURCHASED PAR VALUE OF NISSAN AUTO 3.060% 3115/23/SG AMERICAS 3,560,000.0000 0.999968 -3,559,884.66 3,559,884.66 0.00
SECURITIES,LLC/3,560,000 PAR VALUE AT 99.99676011 %
07/25/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVF OB FD CL Z 2,300,000.0000 1.000000 -2,300,000.00 2,300,000.00 0.00
07/25/2018 31BOV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3.188.2500 1.000000 -3,188.25 3,188.25 0.00
07/26/2018 459515H96 PURCHASED PAR VALUE OF IFC DISC NTS 10/02/18 NVELLS FARGO 2,000,000.0000 0.996222 -1,992,444.44 1,992,444.44 0.00
SECURITIES,LLC/2,000,000 PAR VALUE AT 99.622222%
07/26/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 30,000,000.0000 1.000000 -30,000,000.00 30,000,000.00 0.00
07/26/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 100,000.0000 1.000000 -100,000.00 100,000.00 0.00
07/27/2018 912796NZ8 PURCHASED PAR VALUE OF U S TREASURY BILL 10/11/18/GOLDMAN SACHS 10,000,000.0000 0.995927 -9,959,266.11 9,959,266.11 0.00
8 CO.LLCA0,000,000 PAR VALUE AT 99.5926611 %
07/27/2018 31BOV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,900,000.0000 1.000000 -2,900,000.00 2,900,000.00 0.00
07/27/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVr OB FD CL Z 9,000,000.0000 1.000000 -9,000,000.00 9,000,000.00 0.00
07/30/2018 912796QA0 PURCHASED PAR VALUE OF U S TREASURY BILL 9127/18IMORGAN STANLEY 5,000,000.0000 0.996919 4,984,594.44 4,984,594.44 0.00
8 CO.LLC/5,000,000 PAR VALUE AT 99.6918888%
07/30/2018 912796QE2 PURCHASED PAR VALUE OF U S TREASURY BILL 10/25/18 HELLS FARGO 5,000,000.0000 0.995260 4,976,302.17 4,976,302.17 0.00
SECURITIES,LLC/5,000,000 PAR VALUE AT 99.5280434%
07/30/2018 91282BW97 PURCHASED PAR VALUE OF U S TREASURY NT 1.250% 3/31/19/J.P.MORGAN 5,000,000.0000 0.993086 4,965,429.69 4,965,429.69 0.00
SECURITIES LLC/5,000,000 PAR VALUE AT 99.3085938%
07/30/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 99,125.0000 1.000000 -99,125.00 99,125.00 0.00
07/31/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 27,635,000.0000 1.000000 -27,635,000.00 27,635,000.00 0,00
07/31/2018 31846V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 192,500,0000 1.000000 -192,500,00 192,500.00 0,00
TOTAL ACQUISITIONS 147,035,265.2600 -146,865,190.64 146,865 190.64 0.00
DISPOSITIONS
07/02/2018 073902CD8 MATURED PAR VALUE OF BEAR STEARNS CO INC 4.650% 7102/183,200,000 PAR -3,200,000.0000 1.000000 3,200,000.00 -3,523,520.00 -323,520.00
VALUE AT 100%
07/06/2018 06406XG65 MATURED PAR VALUE OF BNY MELLON C P 7106/181,000,000 PAR VALUE AT -1,000,000.0000 1.000000 993,840.00 -993,840.00 0.00
100%
07/11/2018 313385ZE9 MATURED PAR VALUE OF F H L B DISC NTS 7111/185,000,000 PAR VALUE AT 5,000,000.0000 1.000000 4,994,805.56 4,994,805.56 0.00
100%
07/13/2018 459515ZGO MATURED PAR VALUE OF IFC DISC NTS 7113/185,000,000 PAR VALUE AT 5,000,000.0000 1.000000 5,000,000.00 4,979,075.00 20,925.00
100%
07/13/2018 24422ESX8 MATURED PAR VALUE OF JOHN DEERE MTN 1.600% 7/13/181,500,000 PAR -1,500,000.0000 1.000000 1,500,000.00 -1,497,600.00 2,400.00
VALUE AT 100%
07/13/2018 86958JRH4 MATURED PAR VALUE OF SVENSKA HANDLSBN C D 1.545% 7113/182,000,000 PAR -2,000,000.0000 1.000000 2,000,000.00 -1,998,300.00 1,700.00
VALUE AT 100%
07/16/2018 590188JF6 MATURED PAR VALUE OF BANK OF AMERICA 6.500% 7115/18 1,000,000 PAR -1,000,000.0000 1.000000 1,000,000.00 -1,004,520.00 4,520.00
VALUE AT 100%
2 of
U.S. Bank
Transaction History
07/01/2018 Thru 07/31/2018
EMry D.t�CUSIP Id Explanation Unit� Pn.� Net Cash A.t Cost Gain/Loss
07/16/2018 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 3.427% 1/01128 JUNE FHLMC -22.4900 0.000000 22.49 -21.94 0,55
DUE 7/15118
07/16/2018 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.533% 8/15/32 -1,298.8000 0.000000 1,298.80 -1,300.16 -1.36
07/16/2018 3837H4NX9 PAID DOWN PAR VALUE OF G N M A GTD REMIC 2.43475% 2/1&30 7/16118 PRIN 8 -14.468.7000 0.000000 14,468.70 -14,468.70 0.00
INT PAYMENT
07/16/2018 43814QAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4/15/20 -108,264.5200 0.906402 108,264.52 -108,262.42 2.10
07/16/2018 47788MAC4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.360% 4/15120 -113,383.2200 0.865482 113,383.22 -113,365.37 17.85
07/16/2018 47787XAB3 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.500%10/15/19 -103,134.2500 0.951490 103,134.25 -103,133.84 0.41
07/16/2018 47788BABO PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.590% 4/15120 -50,134.4100 1.957362 50,134.41 50,130.05 4.36
07/16/2018 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1115/21 -115,940.8200 0.846390 115,940.82 -115,012.39 928.43
07/16/2018 654747ABO PAID DOWN PAR VALUE OF NISSAN AUTO 1.470% 1/15120 -96,770.7700 1.014058 96,770.77 -96,770.28 0.49
07/16/2018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z 4,988,916.6700 1.000000 4,988,916.67 4,988,916.67 0.00
07/16/2018 31846VS67 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -229,763.3600 1.000000 229,763,36 -229,763.36 0.00
07/17/2018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z 4,984,650.0000 1.000000 4,984,6%00 4,984,650.00 0.00
07/18/2018 43814RAGO PAID DOWN PAR VALUE OF HONDA AUTO 1.210%12118/20 -33,041.3100 0.000030 33,041.31 -32,678.63 362.68
07/181201843814PAB6 PAID DOWN PAR VALUE OF HONDA AUTO 1.570% 1/21/20 -82,657.5700 0.000012 82,65T57 -82,650.22 7.35
07/19/2018 313385ZN9 MATURED PAR VALUE OF F H L B DISC NTS 7119/185,000,000 PAR VALUE AT 5,000,000.0000 1.000000 4,992,688.89 4,992,688.89 0.00
100%
07/19/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,000,000.0000 1.000000 1,000,000.00 -1,000,000.00 0.00
07/20/2018 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 11#0800233.125%12/20/26 JUNE GNMA -179.5000 0.000000 179.50 -182.47 -2.97
DUE 7/20/18
07/20/2018 36225CC20 PAID DOWN PAR VALUE OF G N M A 11#0800882.625% 6/20127 JUNE GNMA -203.5900 0.000000 203.59 -208.04 -0.45
DUE 7120/18
07/20/2018 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I N803952.625% 4120130 JUNE GNMA -59.8400 0.000000 59.84 -59.30 0.54
DUE 7/20/18
07/20/2018 36225CN28 PAID DOWN PAR VALUE OF G N M A 11#0804082.625% 5120130 JUNE GNMA -1,465.9500 0.000000 1,465.95 -1,451.06 14.89
DUE 7/20/18
07/20/2018 36225DCB8 PAID DOWN PAR VALUE OF G N M A 11#0809652.750% 7120134 JUNE GNMA -2,358.8300 0.000000 2,358.83 -2,357.36 1.47
DUE 7/20/18
07/23/2018 43814TABB PAID DOWN PAR VALUE OF HONDA AUTO 1.420% 7/22/19 -135,554.2700 27.022387 135,55C27 -135,551.03 3.24
07/24/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,014,622.9100 1.000000 3,014,622.91 -3,014,622.91 0.00
07/25/2018 313385ZU3 MATURED PAR VALUE OF F H L B DISC NTS 7125/182,300,000 PAR VALUE AT -2,300,000.0000 1.000000 2,296,015.25 -2,296,015.25 0.00
100%
07/25/2018 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -11.387.4000 0.000000 11,387.40 -12,896.23 -1,508.83
07/25/2018 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 JUNE FNMA DUE -274.8300 0.000000 274.83 -290.66 -15.83
7/25/18
3 of
U.S. Bank
Transaction History
07/01/2018 Thru 07/31/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/LqAa.
07/25/2018 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9101135 JUNE FNMA DUE -2,264.3300 0.000000 2,264.33 -2,434.15 -169,82
7125118
07/252018 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400%11/01/20 JUNE FNMA -706.0200 0.000000 706.02 690.74 15.28
DUE 7/25/18
07252018 31403DJZ3 PAID DOWN PAR VALUE OFF N M A#745580 5.000% 6/01136 JUNE FNMA DUE -2,248.9100 0.000000 2,248.91 -2,417.58 -168.67
7125/18
07252018 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 JUNE FNMA -11.1800 0.000000 11.18 -12.02 -0.84
DUE 725/18
07/25/2018 31406POY8 PAID DOWN PAR VALUE OFF N M A#815971 5.000% 3101135 JUNE FNMA DUE -3,304.6400 0.000000 3,304.64 -3,552.49 -247.85
7125/18
07252018 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 3.481% 2/01/35 JUNE FNMA DUE 456.0800 0.000000 456.08 452.52 3.56
7/25/18
0725/2018 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7101/35 JUNE FNMA DUE -293.4300 0.000000 293.43 -315.44 -22.01
7125/18
07/252018 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7101/36 JUNE FNMA DUE -2.232.1100 0.000000 2,232.11 -2,399.52 .167.41
7125/18
07/25/2018 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6101129 JUNE FNMA DUE -238.2000 0.000000 238.20 -251.92 -13.72
7125/18
0725/2018 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 JUNE FNMA -569.0300 0.000000 569.03 601.80 -32.77
DUE 7/25/18
07252018 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2125141 4,166.6600 0.000000 4,166.66 4,165.36 1.30
0725/2018 78445JAA5 PAID DOWN PAR VALUE OF S L M A 3.90242% 4/25/23 -1,196.3900 476.193925 1,196.39 -1,191.54 4.85
0725201831846VS67 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,116,666.2700 1.000000 8,116,666.27 -8,116,666.27 0.00
07/26/2018 912796PR4 MATURED PAR VALUE OF U S TREASURY BILL 7/26118 30,000,000 PAR VALUE -30,000,000.0000 1.000000 29,859,074.50 -29,859,074.50 0.00
AT 100%
07/26/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,992,444.4400 1.000000 1,992,444.44 -1,992,444.44 0.00
07272018 313385ZW9 MATURED PAR VALUE OF F H L B DISC NTS 7127/182,900,000 PAR VALUE AT -2,900,000.0000 1.000000 2,894,715.00 -2,894,715.00 0.00
100%
07/27/2018 313385ZW9 MATURED PAR VALUE OF F H L B DISC NTS 7127/189,000,000 PAR VALUE AT -9,000,000.0000 1.000000 8,987,078.00 -8,987,078.00 0.00
100%
07/272018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -9,959,266.1100 1.000000 9,959,266.11 -9,959,266.11 0.00
07/30/2018 31M6VW7 SOLD UNITS OF FIRST AM BOW OB FO CL Z -9,960,896.6100 1.000000 9,960,8%.61 -9,960,896.61 0.00
07/302018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z 4,974,342.2600 1.000000 4,974,342.26 4,974,342.26 0.00
07/312018 36960MGX5 MATURED PAR VALUE OF GENERAL ELECTRIC CO C P 7/31118 1,500,000 PAR -1,500,000.0000 1.000000 1,490,267.50 -1,490,267.50 0.00
VALUE AT 100%
07/312018 912828868 MATURED PAR VALUE OF U S TREASURY NT 0.750% 7131/1826,000,000 PAR -26,000,000.0000 1.000000 26,000,000.00 -25,909,101.58 90,898.42
VALUE AT 100%
4 of
U.S. Bank
Transaction History
07/01/2018 Thru 07/31/2018
E�try D.t�CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/31/2018 31846V%7 SOLD UNITS OF FIRST AM GOVT OB FD CL Z 48,500,000,0000 1.000000 48,500,000.00 48,500,000.00 0,00
TOTAL DISPOSITIONS -194,009,856.6800 193,818,341.38 -194,031,445.14 .213,103.76
OTHER TRANSACTIONS
0710212018 073902CDB INTEREST EARNED ON BEAR STEARNS CO INC 4,650% 7102/18$1 PV ON 0,0000 0.000000 74,400.00 0.00 0,00
3200000.0000 SHARES DUE 712I2018
07/02/2018 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 28,830.65 0.00 0.00
6/30/2018 INTEREST FROM 6/1/18 TO 6130118
07/02/2018 31846VS67 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 28,643.50 0.00 0.00
6130/2018 INTEREST FROM 6/1/18 TO 6/30/18
07/02/2018 912828WS5 INTEREST EARNED ON U S TREASURY NT 1.625% 6/30/19$1 PV ON 2000000.0000 0.0000 0.000000 16,250.00 0.00 0.00
SHARES DUE 6/30/2018
07/02/2018 912828XW5 INTEREST EARNED ON U S TREASURY NT 1.750% 6/30122$1 PV ON 5000000.0000 0.0000 0.000000 43,750.00 0.00 0.00
SHARES DUE 613012018
07/02/2018 912828N30 INTEREST EARNED ON U S TREASURY NT 2.125%12/31/22$1 PV ON 0.0000 0.000000 53,125.00 0.00 0.00
5000000.0000 SHARES DUE 6/30/2018
07/05/2018 3135GOS38 INTEREST EARNED ON F N M A 2.000% 1/O5/22$1 PV ON 3000000.0000 0.0000 0.000000 30,000.00 0.00 0.00
SHARES DUE 7/5/2018
07/05/2018 404280BF5 INTEREST EARNED ON HSBC HOLDINGS PLC 2.650% 1105/22$1 PV ON 0.0000 0.000000 69,625.00 0.00 0.00
4500000.0000 SHARES DUE 7/5/2018
07/06/2018 06406XG65 INTEREST EARNED ON BNY MELLON C P 7106118$1 PV ON 1000000.0000 0.0000 0.000000 6,160.00 0.00 0.00
SHARES DUE 7/6/20181,000,000 PAR VALUE AT 100%
07/09/2018 36962G7MO INTEREST EARNED ON GENERAL ELEC CA MTN 2.200% 1I09/20$1 PV ON 0.0000 0.000000 55,000.00 0.00 0.00
5000000.0000 SHARES DUE 7/9/2018
07/11/2018 313385ZE9 INTEREST EARNED ON F H L B DISC NTS 7/11118$1 PV ON 5000000.0000 0.0000 0.000000 5,194.44 0.00 0.00
SHARES DUE 7/1112018 5,000,000 PAR VALUE AT 100%
07/12/2018 912828W UO BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 22048.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
07/12/2018 912828WUO FED BASIS OF U S TREASURY I P 5 0A25% 7/15/24 ADJUSTED BY 22048.00 UNITS 0.0000 0.000000 0.00 22,048.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
07/12/2018 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 22048.0000 22,048.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
07/12/2018 91282SWUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 22048.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
07/13/2018 24422ESX8 INTEREST EARNED ON JOHN DEERE MTN 1.600% 7/1 W18$1 PV ON 1500000.0000 0.0000 0.000000 12,000.00 0.00 0.00
SHARES DUE 7/1 312 01 8 INTEREST ON MATURITY 7/13/18
07/13/2018 86958JRH4 INTEREST EARNED ON SVENSKA HANDLSBN C D 1.545% 7113/18$1 PV ON 0.0000 0.000000 31,329.17 0.00 0.00
2000000.0000 SHARES DUE 7/13/2018 INTEREST ON MATURITY 7/1 W18
5 of9
U.S. Bank
Transaction History
07/01/2018 Thru 07/31/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/16/2018 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15/22$1 PV ON 0.0000 0.000000 10,084.25 0.00 0,00
6270000.0000 SHARES DUE 7/1512018
07/16/2018 590188JF6 INTEREST EARNED ON BANK OF AMERICA 6.500% 7/15/18$1 PV ON 0.0000 0.000000 32,500.00 0.00 0.00
1000000.0000 SHARES DUE 7/15/2018
07/16/2018 31348SWZ3 INTEREST EARNED ON F H L M C#786064 3.427% 1101/28$1 PV ON 6.0300 0.0000 0.000000 6.03 0.00 0.00
SHARES DUE 7/1 512 01 8 MAY FHLMC DUE 7/15/18
07/16/2018 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.533% 8115/32$1 PV ON 53.8100 0.0000 0.000000 53.81 0.00 Dw
SHARES DUE 7/1 512 01 8$0.00294/PV ON 18,276.20 PV DUE 7/15118
07/16/2018 3837H4NX9 INTEREST EARNED ON G N M A GTD REMIC 2.43475% D16/30$1 PV ON 31.1700 0.0000 0.000000 31.17 0.00 0.00
SHARES DUE 7/1 612 01 8$0.002151PV ON 14,468.70 PV DUE 7/16118
07/16/2018 43814OAC2 INTEREST EARNED ON HONDA AUTO 1.390% 4I15/20$1 PV ON 1187.5500 0.0000 0.000000 1,187.55 0.00 0.00
SHARES DUE 7/1512018$0.00116/PV ON 1,025,224.01 PV DUE 7/15/18
07/16/2018 47788MAC4 INTEREST EARNED ON JOHN DEERE OWNER 1.360% 4/15/20$1 PV ON 1353.2300 0.0000 0.000000 1,353.23 0.00 0.00
SHARES DUE 7/1 512 01 8$0.00113/PV ON 1,194,027.72 PV DUE 7/15118
07/16 018 47788NADO INTEREST EARNED ON JOHN DEERE OWNER 1.490% Sri 5/23$1 PV ON 1429.1600 0.0000 0.000000 1,429.16 0.00 DOD
SHARES DUE 7/1512018$0.001241PV ON 1,151,000.00 PV DUE 7/15118
07/16/2018 47787XAB3 INTEREST EARNED ON JOHN DEERE OWNER 1.500% 10/15/19$1 PV ON 670.1500 0.0000 0.000000 670.15 0.00 0.00
SHARES DUE 7/1 512 01 8$0.00125/PV ON 536,117.15 PV DUE 7/15/18
07/16/2018 47788BABO INTEREST EARNED ON JOHN DEERE OWNER 1.590% 4/15/20$1 PV ON 799.1900 0.0000 0.000000 799.19 0.00 0.00
SHARES DUE 7/1 512 01 8$0.00133/PV ON 603,158.69 PV DUE 7115/18
07/16/2018 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 1023.7500 0.0000 0.000000 1,023.75 0.00 0.00
SHARES DUE 7/1 512 01 8$0.00152/PV ON 675,000.00 PV DUE 7/15/18
07/16/2018 47788CABB INTEREST EARNED ON JOHN DEERE OWNER 2.420% 10/15/20$1 PV ON 3630.0000 Dwoo 0.000000 3,630.00 0.00 DOD
SHARES DUE 7/1512018$0.00202IPV ON 1,800,000.00 PV DUE 7/15118
07/16/2018 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18122$1 PV ON 2970.3300 0.0000 0.000000 2,970.33 0.00 0.00
SHARES DUE 7/15/2018$0.002221PV ON 1,340,000.00 PV DUE 7/15118
07/16/2018 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 1879.8600 0.0000 0.000000 1,879.86 0.00 0.00
SHARES DUE 7/1512018$0.001101PV ON 1,708,962.06 PV DUE 7/15/18
07/16/2018 654747ABO INTEREST EARNED ON NISSAN AUTO 1.470% 1/15120$1 PV ON 774.9500 0.0000 0.000000 774.95 0.00 0.00
SHARES DUE 7/1 512 01 8$0.00122/PV ON 632,612.77 PV DUE 7/15/18
07/16/2018 65477UAD2 INTEREST EARNED ON NISSAN AUTO 1.500% 9/15/21 $1 PV ON 2250.0000 0.0000 0.000000 2,250.00 0.00 DOD
SHARES DUE 7/1512018$0.001251PV ON 1,800,000.00 PV DUE 7/15118
07/1612018 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 9047.5000 0.0000 0.000000 9,047.50 0.00 0.00
SHARES DUE 7/15/2018$0.001751PV ON 5,170,000.00 PV DUE 7/15118
07/16/2018 912828WUO INTEREST EARNED ON U S TREASURY I P S 0.125% 7115/24$1 PV ON 0.0000 0.000000 6,871.48 0.00 0.00
10994360.0000 SHARES DUE 7/15/2018
07/17/2018 3137EAENS PAID ACCRUED INTEREST ON PURCHASE OF F H L M C 2.750% 6119/23 0.0000 0.000000 -13,750.00 0.00 0.00
07/18/2018 43814RAC0 INTEREST EARNED ON HONDA AUTO 1.210%12/18/20$1 PV ON 2898.9600 0.0000 0.000000 2,898.96 0.00 0.00
SHARES DUE 7/1812018$0.001011PV ON 2,875,000.00 PV DUE 7/18118
6of9
U.S. Bank
Transaction History
07/01/2018 Thru 07/31/2018
Entry Date CUSIP Id Explanation Unit� Pric,e Net Cash Arrt Cost Gain/Loss
07/18/2018 43814PAB6 INTEREST EARNED ON HONDA AUTO 1.570% 1121/20$1 PV ON 978.5200 0.0000 0.000000 978.52 0.00 0,00
SHARES DUE 7/18/2018$0.001311PV ON 747,911.78 PV DUE 7/18/18
07/18/2018 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9I20/21 $1 PV ON 4609.2500 0.0000 0.000000 4,609.25 0.00 0.00
SHARES DUE 711 812 01 8$0.00149/PV ON 3,090,000.00 PV DUE 7/18/18
07/18/2016 43814UAG4 INTEREST EARNED ON HONDA AUTO 3D10% 5118/22$1 PV ON 1710000.0000 OD000 0.000000 4,289.25 0.00 0.00
SHARES DUE 711 812 01 8
07/18/2018 4581XOCW6 INTEREST EARNED ON INTER AMER DEV BK 2.125% 1118/22$1 PV ON Dwoo 0.000000 31,875.00 0.00 Dw
3000000.0000 SHARES DUE 7/1 812 01 8
07/19/2018 313385ZN9 INTEREST EARNED ON F H L B DISC NTS 7119118$1 PV ON 5000000.0000 0.0000 0.000000 7,311.11 0.00 0.00
SHARES DUE 7/19/2018 5,000,000 PAR VALUE AT 100%
07/19/2018 3135GOT94 INTEREST EARNED ON F N M A DEB 2.375% 1/19/23$1 PV ON 5000000.0000 0.0000 0.000000 58,055.56 0.00 0.00
SHARES DUE 7/19/2018
07/20/2018 36225CAZ9 INTEREST EARNED ON G N M A 114080023 3.125% 12I20/26$1 PV ON 52.7300 OD000 0.000000 52.73 0.00 0.00
SHARES DUE 7/2 012 01 8 JUNE GNMA DUE 7/20/18
07/20/2018 36225CC20 INTEREST EARNED ON G N M A 11#080088 2.625% 6/20/27$1 PV ON 47.3000 0.0000 0.000000 47.30 0.00 Dw
SHARES DUE 7/2 012 01 8 JUNE GNMA DUE 7/20118
07/20/2018 36225CNM4 INTEREST EARNED ON G N M A 11#080395 2.625% 4/20/30$1 PV ON 17.9800 0.0000 0.000000 17.98 0.00 0.00
SHARES DUE 712 012 01 8 JUNE GNMA DUE 7/20118
07/20/2018 36225CN28 INTEREST EARNED ON G N M A 11#080408 2.625% 5/20/30$1 PV ON 144.4000 0.0000 0.000000 144.40 0.00 0.00
SHARES DUE 712 012 01 8 JUNE GNMA DUE 7120118
07/20/2018 36225DCB8 INTEREST EARNED ON G N M A 11#080965 2.750% 7/20/34$1 PV ON 145.5600 0.0000 0.000000 145.56 0.00 0.00
SHARES DUE 7/2 012 01 8 JUNE GNMA DUE 7/20/18
07/20/2018 45950KCJ7 INTEREST EARNED ON INTL FINANCE CORP 1.125% 7/20121 $1 PV ON 0.0000 0.000000 14,075.00 0.00 Dw
2500000.0000 SHARES DUE 7/2012018
07/23/2018 43814TABB INTEREST EARNED ON HONDA AUTO 1.420% 7122/19$1 PV ON 457.7200 0.0000 0.000000 457.72 0.00 0.00
SHARES DUE 7/21/2018$0.00118IPV ON 386,803.19 PV DUE 7121/18
07/23/2018 46625HKA7 INTEREST EARNED ON JPMORGAN CHASE CO 2.250% 1/23/20$1 PV ON 0.0000 0.000000 22,500.00 0.00 0.00
2000000.0000 SHARES DUE 7/23/2018
07/23/2018 90331HNL3 INTEREST EARNED ON US BANK NA MTN 2.850% 1123/23$1 PV ON 5000000.0000 0.0000 0.000000 71,250.00 0.00 0.00
SHARES DUE 7/2312018
07/23/2018 94974BGM6 INTEREST EARNED ON WELLS FARGO CO MTN 2.600% 7/22120$1 PV ON Dwoo 0.000000 65,000.00 0.00 Dw
5000000.0000 SHARES DUE 7/22/2018
07/23/2018 950001,12138 INTEREST EARNED ON WELLS FARGO MTN 2.625% 7/22/22$1 PV ON 0.0000 0.000000 39,375.00 0.00 0.00
3000000.0000 SHARES DUE 7/2212018
07/24/2018 06051GFD6 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF AMERICA CORP 2.650% 0.0000 0.000000 -12,47.08 0.00 0.00
4/01/19
07/24/2018 94974BFU9 PAID ACCRUED INTEREST ON PURCHASE OF WELLS FARGO COM MTN 2.125% 0.0000 0.000000 -8,145.83 0.00 0.00
4122/19
7 of
U.S. Bank
Transaction History
07/01/2018 Thru 07/31/2018
Entry Date CUSIP Id Explanation Unit� Pric,e Net Cash Arnt Cost Gain/Loss
07/25/2018 03215PFN4 INTEREST EARNED ON AMRESCO 3.03117% 6/25/29$1 PV ON 337.8300 0.0000 0.000000 337.83 0.00 0,00
SHARES DUE 7/2 512 01 8$0.002531PV ON 133,743.29 PV DUE 7M&rl8
07/25/2018 313385ZU3 INTEREST EARNED ON F H L B DISC NTS 7/25/18$1 PV ON 2300000.0000 0.0000 0.000000 3,984.75 0.00 0.00
SHARES DUE 7/25/2018 2,300,000 PAR VALUE AT 100%
07/25/2018 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1125/20$1 PV ON 900000.0000 0.0000 0.000000 3,188.25 0.00 0.00
SHARES DUE 7/2512018
07/25/2018 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9125/43$1 PV ON 4506.8700 0.0000 0.000000 4,506.87 0.00 D00
SHARES DUE 7/2 512 01 8$0.00542IPV ON 832,036.37 PV DUE 7/25/18
07/25/2018 31371 NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01128$1 PV ON 73.0000 0.0000 0.000000 73.00 0.00 0.00
SHARES DUE 712 512 01 8 JUNE FNMA DUE 7125/18
07/25/2018 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01135$1 PV ON 497.9500 0.0000 0.000000 497.95 0.00 0.00
SHARES DUE 712 512 01 8 JUNE FNMA DUE 7125118
07/25/2018 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400%11/01/20$1 PV ON 985.7800 0.0000 0.000000 985.78 0.00 0.00
SHARES DUE 7/2 512 01 8 JUNE FNMA DUE 7/25/18
07/25/2018 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% W01136$1 PV ON 497.6600 0.0000 0.000000 497.66 0.00 Dw
SHARES DUE 7/2 512 01 8 JUNE FNMA DUE 7/25/18
07/25/2018 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 11.6400 0.0000 0.000000 l l.64 0.00 0.00
SHARES DUE 712 512 01 8 JUNE FNMA DUE 7125/18
07/25/2018 31406POY8 INTEREST EARNED ON F N M A#815971 5.000% 3101/35$1 PV ON 841.3600 0.0000 0.000000 841.36 0.00 0.00
SHARES DUE 712 512 01 8 JUNE FNMA DUE 7125118
07/25/2018 31406XWTS INTEREST EARNED ON F N M A#823358 3.481% 2101135$1 PV ON 353.8500 0.0000 0.000000 353.85 0.00 0.00
SHARES DUE 7/2 512 01 8 JUNE FNMA DUE 7/25118
07/25M018 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01135$1 PV ON%.0800 0.0000 0.000000 96.08 0.00 Dw
SHARES DUE 7/2 512 01 8 JUNE FNMA DUE 7/25/18
07/25/2018 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01136$1 PV ON 955.5100 0.0000 0.000000 955.51 0.00 0.00
SHARES DUE 712 512 01 8 JUNE FNMA DUE 7125/18
07/25/2018 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01129$1 PV ON 49.0400 0.0000 0.000000 49.04 0.00 0.00
SHARES DUE 712 512 01 8 JUNE FNMA DUE 7125118
07/25/2018 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 80.7900 0.0000 0.000000 80.79 0.00 0.00
SHARES DUE 7/2 512 01 8 JUNE FNMA DUE 7/25/18
07/25/2018 31397OREO INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25/41 $1 PV ON 544.4600 0.0000 0.000000 544.46 0.00 Dw
SHARES DUE 7/2 512 01 8$0.002311PV ON 235,769.53 PV DUE 7/25/18
07/25/2018 45950KCMO INTEREST EARNED ON INTL BK M T N 2.250% 1125/21 $1 PV ON 2970000.0000 0.0000 0.000000 33,412.50 0.00 0.00
SHARES DUE 7/25/2018
07/25/2018 78445JAA5 INTEREST EARNED ON S L M A 3.90242% 4/25/23$1 PV ON 273.9100 SHARES 0.0000 0.000000 273.91 0.00 0.00
DUE 712 512 01 8$0.00976/PV ON 28,075.80 PV DUE 7125118
07/26/2018 459058FY4 INTEREST EARNED ON INTL BK 2.000% 1/26/22$1 PV ON 10000000.0000 0.0000 0.000000 100,000.00 0.00 0.00
SHARES DUE 7/26/2018
8 of
U.S. Bank
Transaction History
07/01/2018 Thru 07/31/2018
EMry D.t�CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/26/P018 912796PR4 INTEREST EARNED ON U S TREASURY BILL 7/26/18$1 PV ON 30000000.0000 0.0000 0.000000 140,925.50 0.00 0,00
SHARES DUE 7/26/2018 30,000,000 PAR VALUE AT 100%
07/27/2018 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 23608.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
07/27/2018 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 23608.00 UNITS 0.0000 0.000000 0.00 23,608.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
07/27/2018 313385ZW9 INTEREST EARNED ON F H L B DISC NTS 7127118$1 PV ON 2900000.0000 0.0000 0.000000 5,285.00 0.00 0.00
SHARES DUE 7/27120182,900,000 PAR VALUE AT 100%
07/27/2018 313385ZW9 INTEREST EARNED ON F H L B DISC NTS 7127118$1 PV ON 9000000.0000 0.0000 0.000000 12,922.00 0.00 0.00
SHARES DUE 7/27/2018 9,000,000 PAR VALUE AT 100%
07/27/2018 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 23608.0000 23,608.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
07/27/2018 91282SWUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 23608.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
07/30/2018 06406RAE7 INTEREST EARNED ON BANK OF NY MTN 2.950% 1129/23$1 PV ON 1500000.0000 0.0000 0.000000 22,125.00 0.00 0.00
SHARES DUE 7/29/2018
07/30/2018 46625HJR2 INTEREST EARNED ON JPMORGAN CHASE CO 2.350% 1/28/19$1 PV ON 0.0000 0.000000 11,750.00 0.00 0.00
1000000.0000 SHARES DUE 7/2812018
07/30/2018 61747WAL3 INTEREST EARNED ON MORGAN STANLEY 5.500% 7/28121 $1 PV ON 0.0000 0.000000 77,000.00 0.00 0.00
2800000.0000 SHARES DUE 7/28/2018
07/30/2018 91282BW97 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.250% 3131/19 0.0000 0.000000 -20,662.57 0.00 0.00
07/31/2018 CASH DISBURSEMENT PAID TO UNION BANK OUTGOING DOMESTIC WIRE PER 0.0000 0.000000 48,500,000.00 0.00 0.00
DIR DTD 7126/18
07/31/2018 36960MGX5 INTEREST EARNED ON GENERAL ELECTRIC CO C P 7/31/18$1 PV ON 0.0000 0.000000 9,732.50 0.00 0.00
1500000.0000 SHARES DUE 7/31/2018 1,500,000 PAR VALUE AT 100%
07/31/2018 912828568 INTEREST EARNED ON U S TREASURY NT 0.750% 7/31/18$1 PV ON 0.0000 0.000000 97,500.00 0.00 0.00
26000000.0000 SHARES DUE 7/31/2018
07/31/2018 912828N89 INTEREST EARNED ON U S TREASURY NT 1.375% 1/31121 $1 PV ON 6000000.0000 0.0000 0.000000 41,250.00 0.00 0.00
SHARES DUE 7/31/2018
07/31/2018 912828633 INTEREST EARNED ON U S TREASURY NT 1.500% 1/31/19$1 PV ON 0.0000 0.000000 82,500.00 0.00 0.00
11000000.0000 SHARES DUE 7131/2018
07/31/2018 91282BB33 INTEREST EARNED ON U S TREASURY NT 1.500% 1/31/19$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00
SHARES DUE 7/31/2018
07/31/2018 912828W W6 INTEREST EARNED ON U S TREASURY NT 1.625% 7/31/19$1 PV ON 5000000.0000 0.0000 0.000000 40,625.00 0.00 0.00
SHARES DUE 7/31/2018
07/31/2018 912828V72 INTEREST EARNED ON U S TREASURY NT 1.875% 1/31122$1 PV ON 3000000.0000 0.0000 0.000000 28,125.00 0.00 0.00
SHARES DUE 7/31/2018
TOTAL OTHER TRANSACTIONS 45,656.0000 -46,953,150.74 46,656.00 0.00
9 Of
BOARD OF DIRECTORS Meeting Date TOBE.Of Dir.
-- oB/zz/1B
AGENDA REPORT ItemNumber IemNumber
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Administrative Services
SUBJECT: COLLECTION OF SEWER SERVICE CHARGES VIA THE TAX ROLL
GENERAL MANAGER'S RECOMMENDATION
A. Conduct a public hearing to receive input on a report filed with the Clerk of the
Board entitled "Sewer Service Charges for Collection on Tax Rolls for Fiscal Year
2018-19"
1. Open the public hearing
2. Receive staff report and recommendations
3. Report of written communications by Clerk of the Board
4. Public Comment
5 Close Public Hearing
6 Discussion by the Board of Directors
B. Unless there is a majority protest, adopt the report,which has the assessor's parcel
numbers and amount of charges for collection on the tax rolls;
C. Adopt Resolution No. OCSD 18-14 entitled, "A Resolution of the Board of Directors
of the Orange County Sanitation District adopting the Report proposing to collect
Sewer Service Fees on the Tax Roll for Fiscal Year 2018/2019";
D. Direct staff to file a certified copy of the adopted report and resolution with the
County Auditor-Controller; and
E. Direct staff to coordinate collection of sanitary sewer service charges on the
general Orange County tax rolls with the County Auditor-Controller, Assessor, and
Tax Collector.
BACKGROUND
Sections 5473 and 5473.1 of the State Health and Safety Codes allow the Orange County
Sanitation District (Sanitation District) to collect the Sanitary Sewer Service Charges on
the County's Property Tax Roll. The Sanitation District has exercised this option in the
past because it has proven to be a cost-effective method of collection. To collect the
charges on the tax roll it is necessary annually to:
1. File a report with the Clerk of the Board identifying each parcel of real property
receiving the Sanitation District's services and the amount of the charge; and
2. Provide notice and conduct a public hearing on the report.
Page 1 of 2
RELEVANT STANDARDS
• Maintain a culture of improving efficiency to reduce the cost to provide the
current service level or standard
• Comply with State Health and Safety Code Sections 5473 and 5473.1
PROBLEM
The California Health and Safety Code requires a public hearing on the annual report of
charges and mechanism to collect sewer fees.
PROPOSED SOLUTION
Provide notice of and hold a public hearing on annual charges and adopt a resolution
directing the County Tax Collector-Treasurer to include local and regional sanitary sewer
service charges on the tax roll.
TIMING CONCERNS
Special Assessments are due to the County Auditor-Controller in August to be included
on the tax roll.
RAMIFICATIONS OF NOT TAKING ACTION
Sanitary sewer service charges could not be collected on the County tax roll.
PRIOR COMMITTEE/BOARD ACTIONS
Similar hearings are conducted annually to enable the Sanitation District to collect local
and regional sanitary sewer service charges via special assessments on the tax roll.
FINANCIAL CONSIDERATIONS
Collecting sanitary sewer service charges on the County tax roll is the most efficient and
cost-effective way of collecting these charges from property owners.
ATTACHMENTS
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
• Resolution No. OCSD 18-14
• "Sewer Service Charges for Collection on Tax Rolls for Fiscal Year 2018-19" filed
electronically in the Clerk of the Board's office (11,732 pages)
Page 2 of 2
RESOLUTION NO. OCSD 18-14
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT ADOPTING THE
REPORT PROPOSING TO COLLECT SEWER SERVICE
FEES ON THE TAX ROLL FOR FISCAL YEAR 2018/2019
WHEREAS, California Health and Safety Code sections 5473 et seq. authorize the
Orange County Sanitation District (Sanitation District) to adopt an ordinance by a
two-thirds vote of the Board of Directors of the Sanitation District to collect sewer service
fees on the tax roll, in the same manner and at the same time as the general taxes; and
WHEREAS, on March 28, 2018, the Board of Directors adopted Ordinance
No. OCSD-49, an ordinance establishing sanitary sewer service charges and allowing for
the collection of such sanitary sewer service charges ('Regional Sewer Fees") on the tax
roll, in the same manner, by the same persons, and at the same time as, together with,
and not separate from, its general taxes; and
WHEREAS, on May 22, 2013, the Board of Directors adopted Ordinance
No. OCSD-43, an ordinance establishing local sanitary sewer service charges for
customers receiving local sanitary sewer service in former revenue area 7 and allowing
for the collection of such local sanitary sewer service charges ("Local Sewer Fees") on
the tax roll, in the same manner, by the same persons, and at the same time as, together
with, and not separate from, its general taxes; and
WHEREAS, pursuant to California Health and Safety Code sections 5473 et seq.,
a written report (the 'Report"), a copy of which is filed electronically with the Clerk of the
Board of Directors of the Sanitation District and by this reference incorporated herein,
describing each parcel of real property subject to said Regional Sewer Fees and Local
Sewer Fees, including the amount of said charges to be imposed thereon for Fiscal Year
2018-2019; and
WHEREAS, the District has caused notice of the filing of the Report to be published
and has given notice of the hearing to consider such Report in accordance with California
Health and Safety Code section 5473.1; and
WHEREAS, the Board of Directors has heard and considered all objections and
protests to the Report and has determined and hereby finds that protests have not been
made by the owner of a majority of the separate parcels of property described in the
Report; and
WHEREAS, the Board of Directors has determined to adopt the Report and collect
the Regional Sewer Fees and the Local Sewer Fees on the tax roll, which fees shall
constitute a lien against the parcels or parcels of land described in the Report in
accordance with California Health and Safety Code sections 5473 at. seq.
837661.1 OCSD 18-14-1
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER:
Section 1: The above recitals are true and correct.
Section 2: The Report as presented is hereby adopted.
Section 3: The Clerk of the Board, or her designee, is hereby directed to file a
copy of the Report with the Orange County Auditor's Office, together with a statement
endorsed thereon over his/her signature that the Report has been adopted by the Board
of Directors of the Sanitation District and shall request that said Regional Sewer Fees
and Local Sewer Fees be entered against the respective parcels of land as they appear
on the current assessment roll pursuant to California Health and Safety Code sections
5473 et seq.
Section 4: That pursuant to California Health & Safety Code Section 5473, this
Resolution shall remain in full force and effect until amended or repealed, or until such
time as the rates of sanitary sewer service charges, as established by Ordinance Nos.
OCSD49 and OCSD43, are changed by increasing the annual rate.
Section 5: That the General Manager, or his designee, is hereby authorized and
directed to execute any necessary documents or agreements to affect the order set forth
in Section 3 herein.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
August 22, 2018.
Gregory C. Sebourn, PLS
Chairman of the Board of Directors
ATTEST:
Kelly A. Lore, MMC
Clerk of the Board
837661.1 OCSD 18-14-2
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 18-14 was passed and
adopted at a regular meeting of said Board on the 22nd day of August 2018, by the
following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of Orange County Sanitation District this 22nd day of August 2018.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
837661.1 OCSD 18-14-3
STEERING COMMITTEE Melting Dat0 TOBE.Or Dir.
08/22/18 oB/zz/1B
AGENDA REPORT ItemNumber Item Number
z s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
SUBJECT: RETIREMENT OF ROBERT P. GHIRELLI ASSISTANT GENERAL
MANAGER OF THE ORANGE COUNTY SANITATION DISTRICT
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 18-13 entitled, "A Resolution of the Board of Directors of the
Orange County Sanitation District commending Dr. Robert P. Ghirelli for his contributions
and dedication to public service as Assistant General Manager of the Orange County
Sanitation District."
BACKGROUND
After 20 years of service, Robert P. Ghirelli is completing his tenure as Assistant General
Manager of the Orange County Sanitation District (Sanitation District). In this capacity,
he reported directly to the General Manager and oversaw the day-to-day operations of
the Sanitation District's 600 employees and a $164 million annual operating budget. He
was directly responsible for managing the agency's strategic planning efforts and public
and legislative affairs.
Previously, he served as the Director of Technical Services for the Sanitation District
where his responsibilities included managing the environmental and regulatory
compliance programs, the Sanitation District's laboratory, and industrial waste control
programs.
RELEVANT STANDARDS
• Maintain collaborative and cooperative relationships with regulators, stakeholders,
and neighboring communities
• Maintain positive employer-employee relations
ATTACHMENT
The following attachment(s)is included in hard copy and may also be viewed on-line at the OCSD website
(wwwocsd.com) with the complete agenda package:
• Resolution No. OCSD 18-13
Page 1 of 1
RESOLUTION NO. OCSD 18-13
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT COMMENDING
DR. ROBERT P. GHIRELLI FOR HIS CONTRIBUTIONS AND
DEDICATION TO PUBLIC SERVICE AS ASSISTANT
GENERAL MANAGER OF THE ORANGE COUNTY
SANITATION DISTRICT
WHEREAS, Robert P. Ghirelli (Bob Ghirelli) is completing his tenure as Assistant
General Manager of the Orange County Sanitation District (OCSD), having served from
1998 through August 2018;
WHEREAS, he is a graduate of University California, Los Angeles with an
undergraduate degree in Bacteriology and a Doctorate in Environmental Science and
Engineering; and holds a master's degree in Health Science from California State
University, Northridge;
WHEREAS, Bob Ghirelli has spent his entire 40-year career in the field of public
health, environment, and water quality protection starting out in state government, then
moving to the private sector, and now at the regional government level;
WHEREAS, prior to coming to OCSD, Bob Ghirelli served as the Executive Officer
of the California Regional Water Quality Control Board, Los Angeles/Ventura Region for
13 years and oversaw a $10 million annual budget and a staff of 100 water quality
professionals responsible for issuing waste discharge permits, taking enforcement action
against violators, and monitoring water quality;
WHEREAS, Bob Ghirelli joined OCSD in 1998 as Director of Technical Services
where his responsibilities included: managing the environmental affairs and regulatory
compliance programs, environmental laboratories, and industrial waste control programs;
WHEREAS, under Bob's leadership as Director of Technical Services, OCSD
undertook and successfully completed the Huntington Beach Studies which involved
more than 5,000 samples and analyses; and negotiated a voluntary consent decree with
the U.S. Department of Justice and regulators for implementation of full secondary
treatment;
WHEREAS, in 2006, Bob Ghirelli was promoted to Assistant General Manager and
under his leadership OCSD implemented a complete restructure to streamline our
organization and administrative functions. He was tasked with overseeing and managing
OCSD's strategic planning efforts, the Public Affairs and Board Services divisions, and
assisted in overseeing the day-to-day operations of OCSD's more than 600 employees
and $164 million annual operating budget;
OCSD 18-13-1
WHEREAS, with his leadership and guidance, the initial expansion of the
Groundwater Replenishment System (GWRS) the world's largest advanced water
purification system for potable reuse has been established. The Orange County Water
District now receives 130 million gallons per day of secondary treated effluent from
OCSD, which in turn has increased GWRS water production from 70 million gallons per
day to 100 million gallons per day;
WHEREAS, through his leadership and vision at OCSD, he was directly
responsible for managing the OCSD's Legislative and Public Affairs Committee where he
was the management point person on legislative and public affairs matters working with
elected officials and senior executives at the local, state, and federal level; and
WHEREAS, Dr. Ghirelli has demonstrated determination, vision, and leadership to
OCSD and its ratepayers through the commitment of his time, professional dignity, and
devotion to the residents and businesses of Orange County.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District DOES HEREBY RESOLVE, DETERMINE AND ORDER:
That the Board of Directors and staff of the Orange County Sanitation District
express to Robert P. Ghirelli their sincere appreciation for his outstanding public service
to the citizens of Orange County, and his meritorious efforts on behalf of OCSD and its
mission of protecting public health and the environment by providing effective wastewater
collection, treatment, and recycling.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held on
August 22, 2018.
Gregory C. Sebourn, PLS James D. Herberg, PPE
Chairman of the Board General Manager
ATTEST:
Kelly A. Lore, MMC
Clerk of the Board
OCSD 18-13-2
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 18-13 was passed and
adopted at a regular meeting of said Board on the 22nd day of August 2018, by the
following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of Orange County Sanitation District this 22ntl day of August 2018.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
OCSD 18-13-3
BOARD OF DIRECTORS Meeting Date TOBd.Of Dir.
-- os/zz/Is
AGENDA REPORT Item Item
fi
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: TREASURER'S REPORT FOR THE FOURTH QUARTER ENDED
JUNE 30, 2018
GENERAL MANAGER'S RECOMMENDATION
Receive and file the Orange County Sanitation District Fourth Quarter Treasurer's Report
for the period ended June 30, 2018.
BACKGROUND
The Quarterly Treasurer's Report contains financial portfolio performance with respect to
the Orange County Sanitation District's (Sanitation District)funds. Both Long-Term and
Liquid Operating Monies Portfolios are summarized. A performance summary table can
be found on page 2 of this section. The report also contains information on the U.S. and
global economic outlook from the Sanitation District's investment manager, Chandler
Asset Management.
Quarterly Treasurer's Reports are customarily presented first to the Administration
Committee prior to being placed on the Board agenda. However, as the Administration
Committee is not scheduled in August, the Sanitation District's practice has been to
present the Fourth Quarter Treasurer's Report directly to the Board.
RELEVANT STANDARDS
• Quarterly financial reporting
ADDITIONAL INFORMATION
The Quarterly Treasurer's Report for the Fourth Quarter Ended June 30, 2018 is being
submitted in accordance with the Sanitation District's investment policy, which requires
the report be submitted to the governing body following the end of each quarter and
includes the following information:
• Performance results in comparison with the ICE BAML 3-month treasury bill index
for the liquid operating portfolio; and the ICE BAML Corp./Govt. 1-5 Year Bond
index for the long-term portfolio as identified in the investment policy; and the time-
weighted total rate of return for the portfolio for the prior three months, six months,
nine months, twelve months, and since inception compared to the Benchmark
returns for the same periods:
Page 1 of 3
Portfolio Performance Summary
Quarter Ended June 30,2018
Liquid Operating Monies(%) Long-Tenn Operating Monies(%)
Total Rate of Total Rate of
Return Benchmark Return Benchmark
3 Months 0.45 0.45 0.26 0.17
6 Months 0.80 0.81 -0.08 -0.28
9 Months 1.09 1.09 .0.31 -0.59
12 Months 1.35 1.36 0.10 -0.22
Annualized Since inception 30 Nov 2014 0.67 0.57 0.89 0.78
• A listing of individual securities held at the end of each reporting period (see the
detailed listings of each security contained within the report).
• Cost and market values of the portfolios:
Liquid Oper. Long-Term
Cost $155.4 M $464.8 M
Market Value $156.1 M $460.8 M
• Modified duration of the portfolio compared to Benchmark:
Liquid Oper. Long-Term
District Policy < 0.50 < 5.00
Benchmark 0.14 2.56
Portfolio 0.15 2.43
• Dollar change in value of the portfolio for a one-percent (1%) change in interest
rates:
Liquid Operating - $233,239
Long-Term - $11,196,294
• None of the portfolios are currently invested in reverse repurchase agreements.
• The percent of the Liquid Operating Monies portfolio maturing within 90 days:
87.6%
• Average portfolio credit quality:
Liquid Operating -AAA/Aaa
Long-Term -AA/Aa1
• Percent of portfolio with credit ratings below "A" by any rating agency, and a
description of such securities:
Liquid Portfolio- no exceptions
Long-Term Portfolio- Percent of portfolio- 0.7%
Page 2 of 3
Cost Maturity Date Moody S&P Fitch
SLMA 2008-9 A $ 27,961.89 4/25/2023 Baa3 A B
AMRESCO Residential Securities 1999-1 $ 100,432.85 6/25/2029 Not Rated A+ BBB
Morgan Stanley Note $3,200,848.00 7/28/2021 A3 BBB+ A
• All investments are in compliance with this policy and the California Government
Code, exceptfor the following Lehman Brother holdings that the Sanitation District
is pursuing collection through the bankruptcy court:
Lehman Brothers Note-Defaulted $ 600,000 par value purchased 9/19/2008
Lehman Brothers Note-Defaulted $2,000,000 par value purchased 9/18/2008
• Sufficient funds are available for the Sanitation District to meet its operating
expenditure requirements for the next six months.
CEQA
N/A
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
• Fourth Quarter Treasurer's Report for the Three Months Ended June 30, 2018
Page 3 d 3
'e?
Op
July 31, 2018
STAFF REPORT
Quarterly Treasurer's Report
For the Three Months Ended June 30, 2018
SUMMARY
Section 15.0 of the Sanitation District's Investment Policy includes quarterly reporting
requirements for the Sanitation District's two investment portfolios. These two funds, the
"Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by
Chandler Asset Management, the Sanitation District's external money manager.
The ongoing monitoring of the Sanitation District's investment program by staff and Callan
Associates, the Sanitation District's independent investment advisor, indicates that the
Sanitation District's investments are in compliance with the Sanitation District's adopted
Investment Policy and the California Government Code, and that overall performance has
tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues
are available for the Sanitation District to meet budgeted expenditures for the next six
months. The Sanitation District's portfolios do not include any reverse repurchase
agreements or derivative securities.
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
Sanitation District's portfolios, as of June 30, 2018. The Liquid Operating Monies portfolio,
with an average maturity of 55 days, consists entirely of high quality fixed income
investments consistent with the Sanitation District's investment policy.
Portfolio Performance Summary
The following table presents a performance summary of the Sanitation District's portfolios
as compared to their benchmarks for the period April 1 through June 30, 2018.
OCSD ♦ P.O.Box8127 ♦ Fountain Valley,CA 92]2M12] ♦ (716)%2-2411
Quarterly Treasurer's Report
For the Three Months Ended June 30, 2018
Page 2 of 3
Portfolio Performance summary
Quarter Ended June 30,2018
Liquid Operating Monies(%) Lang-Term Operating Monies(%)
Total Rate of Total Rate of
Realm Benchmark(" Realm BenchmimkOl
3 Months 0.45 0.45 0.26 0.17
6 Months 0.80 0.81 -0.08 -0.28
9 Months 1.09 1.09 -0.31 -0.59
12 Months 1.35 1.36 0.10 -0.22
Annualized Since inception 30 Nov 2014 0.67 0.57 0.89 0.78
Market Value 156.1 S460.8M
Average Quality 'AAATAaa" "AA'YAa1"
Current Yield(%) 1.7 2.0
Estimated Yield to Maturity(%) 2.0 2.7
Quarterly Deposits(Withdrawals) $62.5M 6.7M
Estimated Annual Income 3.0M T9.8M
(1) Benchmarks:
• Liquid Operating Portfolio: ICE BAIL 3-Month Treasury Bill Index
• Long-Term Operating Portfolio: ICE BAML Carp/Govt. 1-5 Year Band Index
Portfolio Market Values
Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the
attached bar chart.
Liquid Long-Term
Quarter Operating Operating
Ending Monies($M) Monies($M)
30 Sep.17 49.5 333.2
31 Dec.17 145.5 396.E
31 Mar.18 92.9 412.8
30 Jun.1B 156.1 460.8
The Sanitation District's Investment Account Balances as of June 30,2018
Book Balances Estimated
Investment Accounts June 30,2018 Yield(%)
State of Calif.LAIF $55,208,090 1.85
Union Bank Checking Account 1,215,139 0.25
Union Bank Overnight Sweep Account 3,537,657 1.60
Union Bank W/C Checking 75,242 0.25
Union Bank Muller Account 153,873 0.80
Chandler-Short-teml Portfolio 155,760,766 1.96
Chandler-Long-term Portfolio 458,614,890 2.68
Petty Cash 3,000 N/A
BNY Mellon OCIP Reserve 3,606,126 0.87
TOTAL $678 174 783 2.43
Debt Service Reserves w/Trustees $g : 1.75
Quarterly Treasurer's Report
For the Three Months Ended June 30, 2018
Page 3 of 3
The Sanitation District's Cost of Funds on Debt Issues as of June 30, 2018
Annual
Cost of Funds Outstanding Interest
Issue Description COP Balance Rate(%)
2009A Fixed $4,690,000 4.72
2010A Fixed 80,000,000 3.68
2010C Fixed 157,000,000 4.11
2011A Fixed 75,370,000 2.61
2012A Fixed 100,645,000 3.54
2012B Fixed 66,395,000 1.50
2014A Fixed 78,375,000 2.34
2015A Fixed 127,510,000 3.30
2016A Fixed 145,880,000 3.02
2016B Fixed 109,875,000 0.87
2017A Fixed 66.370 000 2.55
TOTAL $I 012.11(LOIN1
Weighted Avg.Cost of funds 2.89
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 LAIF
5. Asset Summary by Asset Type — Liquid Operating Portfolio
6. Asset Summary by Asset Type — Long Term Portfolio
7. Asset Summary by Asset Type — Owner Controlled Insurance Program Escrow
Account
8. Investment Listing (Yield Analysis Report)
9. Asset Detail — Consolidated
10. Custody Transaction History—Consolidated
11. Callan Quarterly Review
12. Chandler Quarterly Review
13. Rating Agency Comparisons
C/" CHANDLER
Asser
MANAGEMENT
June 30, 2018
Mr. Lorenzo Tyner
Director of Finance
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley CA 92708-7018
Dear Lorenzo,
Bond Market Recap
The Federal Open Market Committee raised the fed funds target rate by 25 basis points to a
range of 1.75%-2.00% at the June 13 meeting. The Fed also signaled there could be two more
rate hikes this year. However, we anticipate the impact of market dynamics related to a stronger
US dollar, increased deficit-related Treasury issuance, and the continued roll-off of the Fed's
balance sheet will cause financial conditions to tighten in the second half of this year and thus
slow down the pace of future rate hikes. These factors, along with ongoing concerns about
global trade, the potential for increased volatility sparked by the upcoming US midterm
elections, and a shift toward less accommodative monetary policy by the European Central
Bank, may cause the Fed to move more gradually. However, if we do not see signs of increased
financial market tightening over the next 3-4 months, we think the Fed will move forward with
two more rate hikes before year-end.
We are forecasting GDP growth of about 2.5%-3.0% in 2018, which is in line with the Fed's
forecast and the market consensus. This would equate to an increase over 2017 GDP growth of
2.3%. Overall, economic data remains favorable but predictive economic indicators suggest that
economic growth is unlikely to accelerate in the second half of the year.
The Treasury yield curve continued to flatten in June. At month-end, the 2-year Treasury yield
was up ten basis points to 2.52%, while the 10-year Treasury yield was essentially unchanged
at 2.86%. The spread between 2- and 10-year Treasury yields narrowed to just 33 basis points
at month-end. Over the past 20 years, the average spread between 2- and 10-year Treasuries
has been about 140 basis points, with a median spread of roughly 150 basis points. However,
we believe ongoing normalization of the Fed's balance sheet, along with increased issuance by
the Treasury to fund the growing fiscal deficit, will help promote a steeper yield curve in the
second half of this year.
The Treasury yield curve has flattened year-over-year. Rate hikes by the Federal Reserve have
put upward pressure on shorter-term rates, while supply and demand imbalances, technical
factors, and subdued inflation expectations have kept longer rates relatively contained. A flat
Treasury yield curve is typically an indication that market participants are concerned about the
economic outlook.
t
C/" CHANDLER
ASSET
MANAGEMENT
Consumer Prices
The Consumer Price Index (CPI) was up 2.8% year-over-year in May, up from 2.5% in April.
Core CPI (CPI less food and energy)was up 2.2% year-over-year in May, up from 2.1% in April.
The Personal Consumption Expenditures (PCE) index was up 2.3% year-over-year in May,
versus 2.0% in April. Core PCE (excluding food and energy) was up 2.0% on a year-over-year
basis in May, versus 1.8% in April. Core PCE inflation is now in line with the Fed's 2.0%target.
Retail Sales
On a year-over-year basis, retail sales were up 5.9% in May, versus up 4.8% year-over-year in
April. On a month-over-month basis, retail sales increased 0.8% in May, exceeding the
consensus forecast of 0.4%, following an upwardly revised increase of 0.4% in April.
Labor Market
The pace of hiring remained solid in June with non-farm payrolls increasing by 213,000,
modestly above the 195,000 consensus estimate. The prior two months were also revised
higher by a net 37,000. On a trailing three and six-month basis, payrolls increased by 211,000
and 215,000, respectively. The unemployment rate ticked higher by 0.2% to 4.0% and the labor
force participation rate also increased by 0.2% to 62.9% as more people entered the workforce.
A broader measure on unemployment called the U-6, which includes those who are marginally
attached to the labor force and employed part time for economic reasons, increased by 0.2% to
7.8%. The average workweek remained unchanged at 34.5 hours. Average hourly earnings
increased by 0.2%for the month and 2.7% on a year-over-year basis, a tenth lower on a month-
over-month basis and unchanged on a year-over-year basis from the prior month.
Housing Starts
Total housing starts increased 5.0% in May. Single-family starts rose 3.9% while multi-family
starts rose 7.5%.
2
C/" CHANDLER
ASSET
MANAGEMENT
TREASURYYIELDS 613012018 3/3112018 CHANGE
3 Month 1.92 1.71 0.21
2 Year 2.53 2.27 0.26
3 Year 2.62 2.38 0.24
5 Year 2.74 2.56 0.18
7 Year 2.82 2.69 0.13
10 Year 2.86 2.74 0.12
30 Year 2.99 2.97 0.02
Economy Growth Remains Positive but Unlikely to Accelerate
ECONOMIC INDICATOR Current Release Prior Release One Year Ago
Trade Balance (43.1)$Bin MAY 18 (46.1)$Bin APR 18 (45.8)$Bin MAY 17
GDP 2.0%MAR 18 2.9%DEC 17 1.2%MAR 17
Unemployment Rate 4.0%JUN 18 3.8%MAY 18 4.3%JUN 17
Prime Rate 5.0%JUN 18 4.75%MAY 18 4.25%JUN 17
CRB Index 200.39 JUN 18 202.84 MAY 18 174.78 JUN 17
Oil(West Texas Int.) $74.15 JUN 18 $67.04 MAY 18 $46.04 JUN 17
Consumer Price Index(y/o/y) 2.8%MAY 18 2.5%APR 18 1.9%MAY 17
Producer Price Indec(y/o/y) 4.1%MAY 18 2A%APR 18 2.8%MAY 17
Dollar/Euro 1.17 JUN 18 1.17 MAY 18 1.14JUN 17
Source.Bloomberg
3
C/" CHANDLER
ASSET
MANAGEMENT
Performance Attribution
Long-Term Portfolio
The portfolio outperformed during the quarter, generating a total return of 0.26% compared to
the 0.17% return for the ICE Bank of America Merrill Lynch 1-5 Year US Corporate and
Government AAA-A Index, a positive differential of 0.09%. From an asset allocation
perspective, the drivers of the positive relative performance during the quarter were
predominately the mix of securities in the Corporate allocation, which were of higher quality than
the benchmark and outperformed in the soft market. Additionally, the overweight to the Agency
sector, and the stable performance of spreads in the sector, added to the results of the portfolio.
From a maturity distribution perspective, the out of benchmark very short maturity holdings in
the portfolio added to the results during the quarter, as the securities did not experience
negative price action due to rising rates given the short maturity of the holdings.
The Chandler team added many securities to the portfolio across the Treasury, Agency, Asset
Backed, Supranational, Commercial Paper, and Corporate sectors of the market to keep the
portfolio positioning and structure consistent with Chandler objectives. The purchased
securities ranged in maturity from May 2018 to June 2023. Ten securities matured during the
period, in additional to net contributions of$46.8 million. The sector allocation remained stable.
The two largest changes were the 2.3% increase in US Corporate exposure, to 22.2% of the
portfolio, partially offset by the 1.4% decline in Commercial Paper, to 3.7% of the portfolio. The
duration of the portfolio was little changed, currently 2.43 compared to 2.41 at the end of the
prior quarter. The Chandler team anticipates moderately increasing the duration of the portfolio
in the coming quarter due to our internal outlook on monetary policy and the year to date
adjustment in interest rates.
Liquid Portfolio
The portfolio matched the return of the ICE Bank of America 3-Month Treasury Bill Index during
the quarter, generating a return of 0.45%. Multiple securities were purchased across the
Treasury, Agency, Supranational, Negotiable CD, Commercial Paper, and Corporate sectors of
the market to keep the portfolio aligned with the strategy objective. The purchased securities
ranged in maturity from May 2018 to June 2019. One security was called, eighteen matured, in
addition to a net $62.5 million contribution into the portfolio. The sector allocation evolved as
the Chandler team reinvested both the maturing securities and the new cash added to the
portfolio. The Agency sector continues to trade right on top of Treasury Bill and Notes, thus the
Treasury allocation is currently higher than the historical experience. The Chandler team will be
looking to opportunistically expand the exposure to spread product in the coming quarter. The
duration of the portfolio contracted slightly, currently 0.15 compared to 0.18 at the end of the
prior quarter. A large withdrawal is forecast for the end of July, and as the cash flow forecast of
the District evolves the Chandler team will optimize the asset allocation of the Liquidity portfolio.
4
C/" CHANDLER
Asser
MANAGEMENT
Economic Outlook
The underlying fundamentals of the US economy continue to exhibit resilience in the face of the
continued progress on the normalization of monetary policy and the escalation of several
geopolitical conflicts. Job growth remained robust in the second quarter with non-farm payrolls
averaging 211 k over the past three months. The U3 unemployment rate is close to cycle lows,
with the most recent reading at 4.0%; the U6 unemployment rate, which includes part-time and
marginally attached workers, still indicates a modest amount of labor market slack, with a
current reading of 7.8%. Inflation metrics have trended modestly higher on a year-over-year
basis but given the current dynamics in wage inflation the Chandler team is circumspect the
momentum on inflation can continue. Average hourly earnings were most recently increasing at
a 2.7% pace on a year-over-year basis; historically when the U3 unemployment is close to 4.0%
wage inflation runs closer to 3.3% to 3.5%. Commodity prices are not poised to move higher in
Chandler's judgement, and absent wage inflation the Federal Reserve is getting close to the
neutral level on the Fed Funds target. Several geopolitical events heated up during the second
quarter, including the escalating tariff dispute with China, Canada, and the European Union, the
United States withdrawing from the Iran nuclear deal and re-imposing sanctions, as well as
President Trump's summit with North Korea. The populist movement in Europe also caught
investor attention post the outcome of the elections in Italy, leading to a short-term firming in
prices of high quality fixed income sovereign debt including US Treasury's and German Bunds.
The Federal Reserve continued their path of normalizing monetary policy with their second 25
basis point increase of the year on June 13. The Federal Reserve signaled there could be two
more rate hikes this year. However, the Chandler team anticipates the impact of the stronger
US dollar, increased deficit related Treasury issuance, and the continued contraction of the
Federal Reserve's balance sheet may lead to tighter financial conditions in the second half of
2018. These factors, along with ongoing concerns about global trade, the potential for
increased volatility sparked by the upcoming US mid-term elections, and a shift towards less
accommodative monetary policy by the European Central Bank, may cause the Fed to move
more gradually. However, if we do not see signs of increased financial market tightening over
the next three to four months and/or a softening in inflation metrics, the Federal Reserve is likely
to move forward with four rate hikes in 2018.
Although the major domestic equity indices posted positive returns for the quarter, investment
grade corporate spreads underperformed and moved wider during the past three months. In
Chandler's judgment the weakness in investment grade spreads was a healthy adjustment, and
more technical as opposed to fundamental in nature, as valuations had become expensive
compared to the historical experience. Other investment grade security types, including
agency, asset backed, and mortgage backed securities, mostly moved sideways in spread. The
shape of the Treasury yield curve continued to garner investor attention, as the yield spread
between ten-year and two-year Treasury notes continued to contract, down to 0.33% on June
30 compared to 0.47% at the end of first quarter. An inverted Treasury yield curve is historically
a harbinger to an economic slowdown and/or a recession; the Chandler team will continue to
monitor the shape of the Treasury yield curve and global economic developments closely to
ensure proper portfolio positioning in the coming quarters.
5
C/" CHANDLER
ASSET
MANAGEMENT
Strategy
Strategy highlights for the Long-Term Portfolio in coming months:
• Opportunistically increase the portfolio's exposure to the Corporate sector.
o The current allocation is 23.2 %, and the Chandler team will look to expand to
25.0% or higher.
o Investment grade spreads moved wider in Q2 and we will be working to add
exposure to stable to improving credits with attractive relative valuations within
the overall Corporate allocation.
• Utilize the new issue market to expand the Asset Backed Allocation. Valuations in the
sector continue to look attractive compared to high quality alternatives.
• Exposure to the Agency and Supranational sector is likely to remain stable as the
spreads available in the sector are tight but stable. We do not anticipate a cheapening
of either sector in the coming quarter.
• The duration of the portfolio is likely to increase to be closer to the benchmark as the
current stance of monetary policy is getting close to neutral in Chandler's judgement.
Strategy highlights for the Liquidity Portfolio in coming months:
• Continue to ladder the Treasury and Agency exposure to coincide with forecasted
liquidity needs.
• Opportunistically add Corporate, Negotiable CD, and Commercial Paper exposure to the
portfolio where the additional spread compensation versus like maturity Treasury notes
is attractive.
• Maintain a dedicated exposure to the Treasury sector on an ongoing basis to ensure
ample liquidity in the portfolio at all times.
6
C/" CHANDLER
ASSET
MANAGEMENT
Compliance Issues
Cal Orange County Sanitation District Long Term
June 30,2018
COMPLIANCEPOLICY
Assets moral CdantllerAsse(Managementere in Or compliance wen stale reward win Me invesMemtpolicy
Category Scandal Comment
Treem,plivas 5,sureaxmmurt, Minimumallocationoll0% Complies'
US.Agencies 20%maxlssuer5yeamma—mmus Complies
Supmrebonal "AXsend or does bye fill 30%madman: 5 Seem max maturity USD denominated sencrumecued Complies
u H oruncoMifio
Corywate(Mtral 'A'aided or belbrlmg teion debt bye NR5RO: 30%nyokmr:5%maxu,xar; 5ynammaxmaWnt, Issued Complies
mosureouratod,o atmd and p erem esihntle U.S.or issued b de alto Inu40Nory named b tee US.
Municipal SecutlBes Wistedor Ngberbya NR8R):10•kmadmum; 5%mexiseser, 5yxersmaxmedinry Complies
As.Bacomp CM(W iski ge- 'Wrated,mismerbysiriki A .r H9Mrlsswr2tirgbya NR5R6, 20%maximum; 5%maxisswr Complies'
backed iodudl Na a noderibi's mossito
Ne,lbable COs 'A'need or betterlolg son debt bye NRSRO;ar'A-1"I MglMstmodte(m Sam,bye Ni 30% Complies
maximum;5%max Issuer Sysan maxmal
Cattlemen,of Deposit 5%maxiss or 5yearsmaxnaWnty, Sewauseltatemlimtl Complies
BankersAva A-lmtedoreuiv6NsM mmntl baNR5RO,40%maxlmumesmaxlasme180da m n¢uri Complies
lal Consu Papery A-1 rued or equivalent sibort%in spin,by a Nisti sior better lor0 deem debt Issuer by a NRSRO Issued Complies
byademsflcmgombonaryaNmdaMopentgIntee USMA AUMc$500mlllon: 25%menmm: 5%
mus on., 270 dayspreen
MupalFugBMorey Merkel Higbectretirgor•A rdli l by fw NiVi SEC egistered adviser win AVM 4500 million am Complies
Mutual Fund eglenencegma rMan5yeam;10%perom MU lFI ; 20%roolomissumou-Morey Market Mutual
Funds: 20%masuffteDiondssurflusmorey
Re urnmesse,Arguserress, 102%collatenllntlan Complies
Reaves,Repurchase Agreements 5%maximun.90 days max metal Complies
LAIF Not used by imesbnet adviser Complies
OCP Not ad by inel mull complies
A Duatlon Not to emeed 60 moral- 80%to 120%Mtle bmovmM Complies
Max Peresuer 5%af otolo(..setSu nmtloral,US.Oouemmet Agencies.issued Fad Complies
Imminent
Maxim M,Nn 5 maturity
'lM1¢rylblleMMw¢yM(II)¢xulllw wirM1 mtlun4e¢g¢eW IM1en Syearz IrcluGlry der(4)CMO¢.¢senM(17JMB5 eM me(n Ir¢e¢ury. M¢sslit.wreimorks' mIM Ins—
mesa,eud wmgiai or time N pumnae.
C/" CHANDLER
ASSET
MANAGEMENT
Orange County Sanitation District Liquid
CA I June 00,2018
COMPLIANCEPOLICY
Assetr managedby ChandlerAsset Managementam m U compliance wth Nate lawand wM fhe invesfinentpolicy
C.W,., Standard Comment
Tmaxa issues lWarmax
maW .d Minmunalbcationof10% Complies
U.S.A endes 20%maxisswr, l yearmaxmaturity Complies
SMxarearad 'AA'rated orbatler by a NRSRO; 3g%mammunm l year max mount, USD dermmireted Complles
sarvorunsecue0 insubortlinatetl obllga8ore Issued or uiwMltlorelyguamrNeed by ISRD,
FC or WOB
Corporate(MTNs) 'A'instant bor arebbrbngrermtlebrbya Ni 30%maximum;5%max Issuer, )year max Complies
mposit Issuedbyco licensed
y the USd and opemUrg wIWn We U.S.or Issued by
depositary InsYWtlxxbyaensedb I"AU.S.
Asses Backed/CMOs 5%maxeduer, lrbya NRSRO; "A'orNgM1erlasuer mUrg bye NRSRO; 20%maximum; Complles
5%maxissuer, 1 debt
Negotlabb CDs "A'rared or%madng learm me byae,r 1w or".matgbestsbrtbrm mtiy bye Complex
Ni 30er,1 eaue5%maxis uerl armaxmaUr
Certlflcates of Deposit 5%maxissuer,t yearmax maturity Secvetl/wlabemlimd Complies
Banker's Acceplarees A-1 rehear or equivalent sMrt tens ratirg by a NRSRO;40%maximum; 5%max issuer;180 Complies
dear maturity
Commendal Paper A-1 rated or equivalent srwrtterm per,by a NRSRO; 'A'or better long term debtiasuar bye Complies
NRSRO; issued bye demesne corporation organold arA operrong inner US AM AUM>
$500millon; 25%maximun; 5%na rer, 270casmaxnarturty
Mwxa Fud&Morey Market Mubal Funtl HigM1est raeng or"AM"rated bytwo NRSRCa;SEC registeredadNsereiWA1.1M>$500 Complies
million and experience greatertlan 5 years 10%per one Maisel Fund; 20%maxper issuer
on More Medcet Mutual Furols, 20%max,offtDistridssurplusmorney
Re umbassA reemenrs 102%colbteral.t.. complies
Remorse Re unh seA reemenb 5%maximum,90 days max notab Complies
LAF Not used b irwestment acheser complies
OCIP Not used b mvestmeM adl Com Iles
PmNbibed Municipal Secudries Com Iles
Prohibited MortgageSecurtes Complies
A DumBon Nobbexcead180da Maxdua8onoftl2 Com lie.
Max Perlasuer 5%of waffil exce bSu ranatlorels U.S.Gmemment Agencies,Mutual Fud Complies
Maximum Mrarity I 1 War maximum moturty complex
8
C/" CHANDLER
ASSET
MANAGEMENT
CA I OCSD Lehman Exposure
Jun•30,2016
COMPLIANCEPOLICY
Assetsmanagedby CbandlerAsset Managementarein NIIe pliancewMstatelawandwMNeinvesMentpdiey
Category Standard Comment
Treasur,lbees 5 matud Complies
Suiaenamal "AAeor better by l of3 NnS ; 30%madmen; 5%max b tears matudy, Includes ony AIDE, Complies
IBM,am IFC Per CGC
US.A males 20%max issuer' S We.mad mum maturity Complies
U.S.Coaab MTNs "A'or better kmg term parn b1of 3NRSROs; 30%maximum;5%max issuer; 5 Were max maturity Comliee
Munici elsecumes W'orN herb 1 of3NRSR0S'10 m 5%maxissuar' S maed complies
Asset BackedlCMOd "AA'or better by l of 3 NRSROs; "A"or millibar Issuer maN by l of 3 NRSROsm20%maximum; 5% Complies
VlormageLaolanl maxissuer booludim VBSOqoAstarry);5 arm max mean
NegotiableCDs "A'orbatlronilbMWa debtbylof3NRSRQ ; 'A11P1"orNgla,a1amrttmmatrDsby1of3 Complies
5W..mxmatudty
arsmaxmatud
CDsITDS 5%max issuer 5 Were max makinty, Commie.
Banker's Acceptances A-1,or equvalent highest shod tern atirg by l of 3 NRSRCS; 40%maximum; 5%max Issuer;180 Complies
days max maturity
Commercial Paper A-1,or equivalent by l d3 NRSROS; "A'orbeterbyI of3 NRSROs,iflorg ern debtissued; 25% Complies
maximum, 5%max issuer 270 dara max mabinty
Morey Market Turn! Hi hest rating by 2of 3 NRSR0,; 20%madmun;10%max issuer complies
Re umhpoaA reemeMs 102%collaeallmoon complies
Reverse Repurchase 5%maximum,90 days max maUnry, Complies
A reements
LAIF Not used by Investment adNser Complies
Am Duration Not to emeed 60 mortce - 80%to 120%of the benchmark complies
M¢wnlM1ola¢Vmilllm race Wue(cu¢Ipo....OYB)aid$ON ON lace wo,(¢unp 5 SC113])of defaultel Lerman Bm¢Holdings eel ewe purttia¢M Ey ee pwmm
manage[ Oompixal EmeIXWmb¢e.
9
C/" CHANDLER
ASSET
MANAGEMENT
Defaulted Bonds
OCSD Lehman Exposure-Account 910284
Common& k
Swoarv] ere,incopan voeinonwna 6164i ra 141 Y1.12111 W 24 atV
M.,. ..
xu1
IB C."...
515-107 h—B ee u.-0o 14NS WX I]UB.17—
5B5EeC0Y6 �Ihlll Blih,1eJ 2000,110Po 61,000.
�BB6.1141
RIMR
O.W% 1, .a0.n 0W% WUAW,I ARI NP
1 W P}B6,u6.a1He
]Or. NNs.TVYUE BLVBKCPVYS W.B]1.m
10
C/" CHANDLER
ASSET
MANAGEMENT
Ratings
Orange County Sanitation District Long Term
June 30,2018 m March 31,2018
r000%
eoco%
anom
moos:
loon%
zoco%
loom
oco%
A W NR
snazma 391zo1e
AM M A <A NR
O61=18 12.7% 0.3% 14.4% 0 M 9.0%
0N3111B 14.5% 62.5% 13.3% 0]% 89%
Wurce:a.slings
Orange County Sanitation District Liquid
June 30,2018 vs.March 31,2018
mac%
rood%
mocx
.cc%
m00%
zocox
z000%
1occ%
o co%
MM
NN M W N0.
moccoo1B •Ya1R01B
MA M A <A NR
63 M18 67.5% 28.3% S.M a.6% 0.6%
03I31I18 56.9% 35.2% 8.0% a.0% 0.0%
awr<e'.seP 1bBq<
it
C/" CHANDLER
ASSET
MANAGEMENT
OCSD Investment Program
Quarter End Portfolio Value
$600,000.000
• Liquid Operating Monias
$500,000,000 • Long-Term Operating Monies
$400,000,000
$300,000,000
$200,000,000
$100,000.000
Y '��,�i°,`'v'�o°•v sew'�eG''f�`s✓o'''`ti`m'a �eG ' 'v`2�''� ' tv�q'� i`'v✓�6'•v 'aim 611t,�44, "oO•v
HISTORICAL YIELD CURVE
4.00%
300% ------ 2$2l�_________________________
2.82% 2.74%
2.53% 2.88% 2.99°,6
2tl.92%
2.00% _____________ _______________________________
1.00% __ —�MAV 2018 ___________
�JUNE 201r
0.00%
12
GilOrange County Sanitation District Liquid Portfolio Summary
Account#10282 As of 6/3 012 01 8
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY ••
Average Duration 0.15 Beg.Values End Values Issuer %Portfolio
as of 5/31/18 as of 6130/18 Government of United States 58.3%
Average Coupon 1.72% Market Value 177,108,348 155,754,054 Federal Home Loan Bank 15.5
Average Purchase YTM 1.94% Accrued Interest 221,648 311,369 International Finance Corp 4.2%
Averse Market YTM 1.96% Total Market Value 177,329,996 156,065,422
9 Fiml American GoN Obliga0on 3.0
Average S&P/Moody Rating AAA/Aaa Income Earned 279,088 234,025 MUFG Bank Ltd/NY 2.0%
Average Final Maturity 0.15 yrs COntIWD -21,500,000 Bank of Montreal Chicago 1.9
Average Life 0.06 yrs Par 177,440,048 156,056,642 Deere&Company 1.6%
Book Value 177,115,149 155,759,219 Svenska Handelsbanken NY 1.3%
I Cost Value 176.714,696 155.426,514 87 8 Y
• - • • MATURITY DISTRIBUTION
US 100% AAq
Treasury Negotiable 87.6% (67.5%)
(583%) CD
(6.4%) 80%
us
Corporate 60%
52%)
Sulxanatlonal
5.1 %) 40%
Commercial
Paper.
(6 4%) 20%
NR
Motley it% 5.196 (06%)
Market
FuM (1 %) % 0 25 M 5 5-1 1-15 15-2 2-25 2.5.3 0.
FI A
(3.0%) Maturity(Yrs) (26]%)%) (5.2%)
Total Rate of Return J Current Latest Year Annualized Since
As of 6/30/2018 Month 3 Months To Date 1 Yr 3 Yrs 5 Yrs 10 Yrs 11/30/2014 11/3012014
Orange County Sanitation Distdct Liquid 0.14% 0.45% 0.80% 1.35% 0.76% N/A N/A 0.67% 2.43%
ICE BAML 3-Month US Treasury Bill Index 0.17% 0.45% 0.81 % 1.36% 0.68% N/A N/A 0.57% 2.06%
Chandler Asael Management-CONFIDENTIAL Page 1 Execution Time:7W01812:31:35 AM
C/" Orange County Sanitation District Long Term Portfolio Summary
Account#10268 As of 6/3 012 01 8
PORTFOLIO CHARACTERISTICS ACCOUNTSUMMARY ••
aaaa�
Average Duration 2.43 * Beg.Values End Values Issuer %Portfolio
as of 5/31118 as of 6130/18 Government of United States 31.5%
Average Coupon 2.01 % Market Value 441,503,082 458,708,813 Federal National Mortgage Assoc 10.6%
Average Purchase YTM 2.13% Accrued Interest 1,786,424 2,104,111 Fedeml Home Loan Bank 6.6%
Averse Market YTM 2.68% Total Market Value 443,289,507 460,812,924
9 Federal Home Loan Mortgage Corp 5.8
Average S&P/Moody Rating AA/Aal Income Earned 738,494 767,561 Inter-American Dev Bank 3.7%
Average Final Maturity 2.79 yrs ContAVD 17.442,768 First American Gov[Obligation 2.3%
Average Life 2.55 yrs Par 448,390,416 466,561,727 Intl Bank Recon and Development 2.1 %
Book Value 446,584,354 464,476,996 Honda ASS 2.1 %
I Cost Value 446.892,381 464,793,372 64 7 Y
• - • • MATURITY DISTRIBUTION
MBS 25% 231% AA
(0.3%) 21.9% (61.7%)
US_Cap
US Treasury 20% n e
Far_Corp (31.5%) 168
15%
CP Negotiable CD
M MIM)F Sup ran ational 1096 •.0%��% 7,0%) 84%
3.0%(2 �p 5%
2qw°
q BBB
ciao (223%) (14A%) (0.7%)M
ASS 0-.25 25- 5 5-1 -3 2-J 0-1 a M b NR
(71%) Maturity yrs) (12]7%)%) (10.8%)
Total Rate of Return Current Latest Year Annualized Since
As of 6/30/2018 Month 3 Months To Date 1 Yr 3 Yrs Syria 10 Ym 11/30/2014 11/3012014
Orange County Sanitation District Long Tenn 0.02% 0.26% -0.08% 0.10% 0.92% N/A N/A 0.89% 3.22%
ICE BAML 15 Yr US Carp/Gout Rated AAA-A Index -0.02% 0.17% -0.28% -0.22% 0.72% N/A N/A 0.78% 2.81 %
ICE BAML US 1-5 Yr US Corp/Govt Rated AAA-BBB Indx -0.02% 0.17% -0.32% -0.16% 0.87% N/A N/A 0.90% 3.28%
Chandler Ase A Management-CONFIDENTIAL Page 1 ExecNion Time:70201012:34:46AM
Orange County Sanitation District
Investment Transactions and Balances in the
State of California Local Agency Investment Fund
June 30, 2018
Par Value Book Value Market Value Rate Yield
Balance
June 1, 2018 $46,408,090 $46,408,090 $46,408,090 1.85 1.85
Deposits:
6/14/2018 19,600,000 19,600,000 19,600,000 1.85 1.85
Total Deposits 19,600,000 19,600,000 19,600,000 1.85 1.85
Quarterly
Interest
Distribution 1.85 1.85
Withdrawals:
6/6/2018 (2,200,000) (2,200,000) (2,200,000) 1.85 1.85
6/7/2018 (3,100,000) (3,100,000) (3,100,000) 1.85 1.85
6/20/2018 (5,500,000) (5,500,000) (5,500,000) 1.85 1.85
Total Withdrawals (10,800,000) (10,800,000) (10,800,000) 1.85 1.85
Balance
June 30,2018 $55,208,090 $55,208,090 $55,208,090 1.85 1.85
H:\dept\asdQ20\Groups\GL\Common\fixed\Investment-Mellon & LAIF\FY17-18\2018-06\E LAIF Transactions
U.S. Bank
Asset Summary- Liquid
As of 6/30/2018
Industry Name Shams/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
COMMERCIAL PAPER 1 10,100,000.0000 10,019,405.33 10,058,827.00 6.46 39,421.67
FIRST AMERICAN SHORT TERM FDS 4,727,642.2000 4,727,642.20I 4,727,642.20 3.04
U. S.GOVERNMENT 60,0.0,000.0000 59,657,859.48 59,851,200.00 38.43 193,340.52
US AGY-SHORT TERM CASH EQUIV 24,255,000.0000 24,207,474.72 24,218,123.35 15.55 10,648.63
Cash Equivalents Total 99,082,642.2000 98,612,381.73 98,855,792.55 63.47 243,410.82
Fixed Income
CONSUMER DISCRETIONARY 1,500,000.0000 1,497,600.00 1,499,640.00 0961 2,040.00
FINANCE 3,619,000.0000 3,622,971.33 3,618,211.90 2.32 (4,759.43)
FIXED INCOME FUNDS OTHER 2,950,000.0000 2,941,422.57 2,943,775.50 1.89 2,352.93
INDUSTRIAL 1,700,000.0000 1,698,473.00 1,697,057.00 1.09 (1,416.00)
MATERIALS TRANSPORTATION 1,205,000.0000 1,198,513.80 1,199,324.45 0.77 810.65
SHORT TERM FUNDS 7,000,000.0000 6,991,031.01 6,995,310.00 4.49 4,278.99
SUPRANATIONAL 8,000,000.0000 7,976,112.50 7,994,655.00 5.13 18,542.50
U. S.GOVERNMENT 31,000,000.0000 30,888,007.83 30,957,000.00 19.87 68,992.17
Fixed Income Total 56,974,000.0000 56,814,132.04 56,904,973.85 36.53 90,841.81
Grand Total 156,056,642.2000 155,426,513.77 155,760,766.40 100.00 334,252.63
1 Of
U.S. Bank
Asset Summary - Long-Term
As of 6/30/2018
Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
COMMERCIAL PAPER 17,000,000.0000 16,874,183.33 16,905,320.00 3.69 31,136.67
FIRST AMERICAN SHORT TERM FDS 10,528,215.1800 10,528,215.18 10,528,215.18 2.30 -
USAGY-SHORT TERM CASH EQUIV 9,000,000.0000 8,987,078.00 8,988,300.00 1.96 1,222.00
Cash Equivalents Total 36,528,215.1800 36,389,476.51 36,421,835.18 7.94 32,358.67
Fixed Income
CONSUMER DISCRETIONARY 4,000,000,0000 4,046,640.00 3,977,160.00 0.87 (69,480.00)
CONSUMER STAPLES 3,880,000.0000 3,878,991.40 3,908,867.20 0.85 29,875.80
ENERGY 8,850,000.0000 8,856,036.90 8,661,561.50 1.89 (194,475.40)
FINANCE 55,889,000.0000 55,370,226.71 52,770,089.06 11.51 (2,600,137.65)
FOREIGN CORPORATE 4,500,000.0000 4,429,980.00 4,357,035.00 0.95 (72,945.00)
HEALTH CARE 4,000,000.0000 4,009,675.00 3,981,D40.00 0.87 (28,635.00)
INDUSTRIAL 8,160,000.0000 8,185,022.00 8,123,406.40 1.77 (61,615.60)
INFORMATION TECHNOLOGY 20,715,000.0000 20,582,924A5 20,178,517.25 4.40 (4D4,407.70)
INVESTMENT GRADE-MUNI REVENUE 4,240,000.0000 4,307,633.89 4,382,354.80 0.96 74,720.91
MTG RELATED SECURITY 36,310,852,8400 36,260,362.90 36,224,005.67 7.90 (36,357.23)
SHORT TERM FUNDS 5,825,000.0000 5,825,000.00 5,821,912.75 1.27 (3,087.25)
SUPRANATIONAL 33,005,000.0000 32,742,600.25 32,064,682.90 6.99 (677,917.35)
U. S.GOVERNMENT 137 30 .6400 135,768,348.79 133,839,361.97 29.18 (1,928,986.82)
U.S. GOVERNMENT TIPS 10,972,312,0000 10,827,592.09 10,665,635.88 2.33 (161,956.21)
US AGY- LONG TERM ISSUES 94,865,000.0000 94,552,136.40 93,237,424.60 20.33 (1,314,711.80)
Fixed Income Total 1 432,520,386.4800 429,643,171.28 422,193,054.98 92.06 (7,450,116,30)
Grand Total 469,048,601.6600 466,032,647.79 458,614,890.16 100.00 (7,417,757.63)
1 of1
s
BNY MELLON Statement PedodOOMPAISThrolgnee/30=8
Al W0282
D I ItM T A
Statement of Assets Held
6M1nx/ Wryer Prep W .vY00 Aawr n0om0
PerVY YMbeMpMn lverepe COet m. FNssmal n00me MYMYMY
UNITEfl%EO INCOME
9,BDO,ON.000 CUSP STATESTREASUNY NOTEreDND NB0NI 3,66MN2.00 S,6a0B0 O.BB%
CUSW:IT"DA062 N.N031 3.E6RN1.26 31.600.00
RATURITY DAIE:OMt0201e
RATE:O.S Area
Mo wrs Area
Teti FIXED INCOME I6N N3A0 , . 0.0%
SAM
A333.N136 31,6N.00N
CASH AND SNORT TERM
CASH BALANCE U.N000 "'Mill 0.00
OA0000 N,lif 0.00
Total CASH AND SHOW TERM N,1N.le 01.00 0.0
,is'l le ON
ACCOUNTTOTALS 3,606,121.16 6,300.% O.rl
3.6N,g31.11 31,6013.00
Total Market Vern,Plus Tell Amuse!Income 3,612,667.14
Statement of Transactions
Tmeertlm -- - pWup
Me TrelstlenDmMen Yrwee PXrrOlpel 6N DWYLMBN
No Transactions This Period
Tire Benk01 N0x York Mellon they Willza cuDSlEiariae end al011elea to praNne ServlwsaM wneln protluctl to lFe Account SubaNiBrlOe anE alliMade may DO canpen9elatl for lM1OU
servkes enE pmJucts. B
The value of secwllles set form on Me Amount Statement are delermireE by The Bank of New York Mellon for Corwrak Trust M to basis of market al ant lnlorm0tlm e
obtained by The Bank of New York Melon from unaffiliated thud Paulo,(Inclutlm0 l,d.penEenl orl.og ventlwa)("third perry prienB senroas) The Bsnkof Na York Mellon has
nor verllled such market values or lnformelgn and makes wo assurances as to he accuracy a oorredness of such market values or normal or that the market values sat tors e
on thls Aomum Statement felacl Me e01ue of the secursos that can Cat a0zed upon the sale of such movies. In Well the market values for mourthes ul forth In I
Aomum Sar meal may GINr bell the market glass and information for Me dame wourillas used by other huddles units of TM Beek of Now York Maim M its subsidiaries or
athletes based upon market prime and Information received from osartterd parry pldne soNlces uallzed by ouch other business m0s. Corporste Twat don nor compete
Its market values with those used by,or rnmdle different merlut rumors used by,Omer buelnns unite of The Beek of Now York Mellon or Its subsidiaries or Its Willaatea. The Beek
of Hew York Mellon arm of be liable lor my lose,damage or expense Inourred as a result of or arm,From or M&M to le mrket velum or Inletmeam proNtled by third body
priclnp nrvkn or th tllXarwMaa In mvkat prices w Inlorrtlellm RosMetl by other sh0 Wry PdCOM eervM:ae.
tM 2N 2
U.S. Bank
Investment Listing -Yield
As of 6/30/2018
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Cash Equivalents 02665KH67 AMERICAN HONDA FIN C P 8/06/18 0.0000% 1,500,000.0000 99.79 1,490,055.00 1,496,865.00
Cash Equivalents 06406XG65 BNY MELLON C P 7106/18 _ 0.0000% 1,000,000.0000 99.98 993,840.00 999,770.00
Cash Equivalents 21687BJO5 COOPERATIEVE CENTRALE C P 9/24/18 0.0000% 1,500,000.0000 99.48 1,482,252.50 1,492,230.00
Cash Equivalents 313385A55 F H L B DISC NITS 8103/18 0.0000% 1,300,000.0000 N/A N/A 99.83 1,297,049.72 1,297,777.00
Cash Equivalents 313385C87 F H L B DISC NITS 8/22/18 0.0000% 5,000,000.0000 N/A N/A 99.73 4,985,300.00 4,985,400.00
Cash Equivalents 313385D29 F H L B DISC NITS 8/24/18 0.0000% 2,755,000.0000 N/A N/A 99.72 2,746,900.30 2,747,203.35
Cash Equivalents 313385ZE9 F H L B DISC NITS 7111/18 0.0000% 5,000,000.0000 N/A N/A 99.95 4,994,805.56 4,997,650.00
Cash Equivalents 313385ZN9 F H L B DISC NITS 7119/18 0.0000% 5,000,000.0000 N/A N/A 99.91 4,992,688.89 4,995,600.00
Cash Equivalents 313385ZU3 F H L B DISC NITS 7/25/18 0.0000% 2,300,000.0000 N/A N/A 99.88 2,296,015.25 2,297,263.00
Cash Equivalents 313385ZW9 F H L B DISC NITS 7/27/18 0.0000% 2,900,000.0000 N/A N/A 99.87 2,894,715.00 2,896,230.00
Cash Equivalents 313385ZW9 F H L B DISC NITS 7/27/18 0.0000% 9,000,000.0000 N/A I N/A 99.87 8,987,078.00 8,988,300.00
Cash Equivalents 31846V567 FIRST AM GOUT OB FD CL Z 1.7663% 4,727,642.2000 100.00 4,727,642.20 4,727,642.20
Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 1.7663% 10,528,215.1800 100.00 10,528,215.18 10,528,215.18
Cash Equivalents 36960MGX5 GENERAL ELECTRIC CO C P 7/31/18 0.0000% 1,500,000.0000 99.83 1,490,267.50 1,497,510.00
Cash Equivalents 62479MKF9 MUFG BANK LTD NY BRAN C P 10/15/18 0.0000% 3,100,000.0000 99.33 3,075,417.00 3,079,292.00
Cash Equivalents 62479MKF9 MUFG BANK LTD NY BRAN C P 10/15/18 0.0000% 9,000,000.0000 99.33 8,937,870.00 8,939,880.00
Cash Equivalents 89233HJA3 TOYOTA MOTOR CREDIT CO C P 9/10/18 0.0000% 8,000,000.0000 99.57 7,936,313.33 7,965,440.00
Cash Equivalents 89233HJE5 TOYOTA MOTOR CREDIT CO C P 9/14/18 0.0000% 1,500,000.0000 99.54 1,487,573.33 1,493,160.00
Cash Equivalents 912796NV7 U S TREASURY BILL 9/13/18 1.8822% 30,000,000.0000 N/A N/A 99.62 29,798,784.98 29,885,700.00
Cash Equivalents 912796PR4 U S TREASURY BILL 7/26/18 1.7245% 30,000,000.0000 N/A N/A 99.89 29,859,074.50 29,965,500.00
Fixed Income 00440EAP2 ACE INA HOLDINGS 2.700% 311=3 2.7893% 2,000,000.0000 A3 A 95.80 1,937,000.00 1,935,960.00
Fixed Income 00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 2.9261% 4,169,000.0000 A3 A 98.25 4,232,453.17 4,096,209.26
Fixed Income 02587AAJ3 AMERICAN EXPRESS 1.930% 9/15/22 1.9589% 6,270,000.0000 AAA N/A 98.53 6,174,085.15 6,177,517.50
Fixed Income 02665WAH4 AMERICAN HONDA MTN 2.250% 8115119 2.2629% 4,000,000.0000 A2 A+ 99.43 4,046,640.00 3,977,160.00
Fixed Income 03215PFN4 AMRESCO 3.03117% 6/25/29 3.1922% 133,743.2900 N/A A+ 94.96 100,432.85 126,997.28
Fixed Income 037833BS8 APPLE INC 2.250% 2/23/21 2.2898% 4,000,000.0000 AA1 AA+ 98.26 4,050,840.00 3,930,440.00
Fixed Income 06371ERK5 BANK OF MONTREAL C D 1.750%11/13/18 1.7537% 2,950,000.0000 99.79 2,941,422.57 2,943,775.50
Fixed Income 06406HCW7 BANK NY MELLON MTN 2.300% 9/11/19 2.3125% 2,120,000.0000 Al A 99.46 2,142,175.20 2,108,530.80
Fixed Income 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 2.6546% 2,500,000.0000 Al A 97.94 2,504,475.00 2,448,575.00
Fixed Income 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 3.0184% 1,500,000.0000 Al A 97.74 1,486,065.00 1,466,025.00
Fixed Income 06417GXH6 BANK OF NOVA C D 1.570% 8109118 1.5708% 5,825,000.0000 99.95 5,825,000.00 5,821,912.75
Fixed Income 073902CD8 BEAR STEARNS CO INC 4.650% 7/02/18 4.6100% 3:200,000.0000 W R N/A 100.00 3,523,520.00 3,200,000.00
Fixed Income 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 3.0017% 4,000,000.0000 AA2 AA 99.94 4,131,120.00 3,997,760.00
Fixed Income 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 2.8101% 2,500,000.0000 AA2 AA 97.86 2,440,950.00 2,446,525.00
Fixed Income 097014AM6 BOEING CAPITAL CORP 2.900% 8/15/18 2.8994% 700,000.0000 A2 A 100.02 700,973.00 700,147.00
Fixed Income 166764BG4 CHEVRON CORP 2.100% 5/16/21 2.1503% 2,500,000.0000 AA2 AA- 97.66 2,485,350.00 2,441,500.00
Fixed Income 24422ESF7 JOHN DEERE MTN 1.950% 12/13/18 1.9560% 1,000,000.0000 A2 A 99.69 997,500.00 996,910.00
1 of 5
U.S. Bank
Investment Listing -Yield
As of 6/30/2018
Asset Category CUSIP Asset Short Name ! Yield Shams/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 24422ESS9 JOHN DEERE CAP MTN 2.300% 9/16/19 2.3122% 5,000,000.0000 A2 A 99.47 5,046,984.00 4,973,550.00
Fixed Income 24422ESX8 JOHN DEERE MTN 1.600% 7113118 1.6004% 1,500,000.0000 WR N/R 99.98 1,497,600.00 1,499,640.00
Fixed Income 30231 GAV4 EXXON MOBIL 2.222% 3/01/21 2.2637 61 3,000,000.0000 AAA AA, 98.16 3,016,097.40 2,944,800.00
Fixed Income 3130A7CV5 F H L B DEB 1.375% 2/18/27 1.4204% 5,365,000.0000 AAA AA+ 96.80 5,343,325.40 5,193,534.60
Fixed Income 3133782M2 F H L B DEB 1.500% 3108119 1.5076% 7,500,000.0000 AAA AA+ 99.50 7,589,190.00 7,482,125.00
Fixed Income 313379RB7 F H L B DEB 1.875% 6/11121 1.9202% 4,000,000.0000 AAA AA+ 97.65 4,030,160.00 3,905,920.00
Fixed Income 313383HU8 F H L B DEB 1.750% 6112/20 1.7789% 5,000,000.0000 AAA AA+ 98.37 5,008,950.00 4,918,650.00
Fixed Income 3133TCE95 F H L M C MLTCL MTG 3.533% 8/15/32 3.4858% 18,276.2000 101.36 18,295.33 18,523.84
Fixed Income 31348SWZ3 FH LM C#786064 3.427% 1/01/28 3.3537% 2,110.2800 N/A N/A 102.19 2,058.90 2,156.41
Fixed Income 3135GOD75 F N M A DEB 1.500% 6/22/20 1.5310% 5,000,000.0000 AAA AA+ 97.97 4,955,650.00 4,898,650.00
Fixed Income 3135GOF73 FNMA 1.500% 11/30/20 1.5412% 7,500,000.0000 AAA AA+ 97.33 7,370,726.00 7,299,525.00
Fixed Income _ 313500072 FNMA 1.125% 12/14/18 1.1301% 5,000,000.0000 N/A AA+ 99.55 4,963,950.00 4,977,400.00
Fixed Income _ 3135GOJ20 F N M A DEB 1.375% 2/26/21 1.4210% 10,000,000.0000 AAA AA- 96.77 10,040,950.00 9,676,500.00
Fixed Income 3135GOS38 FNMA 2.000% 1/0522 2.0519% 3,000,000.0000 AAA AA+ 97.47 2,994,570.00 2,924,070.00
Fixed Income 3135GOT45 FNMA 1.875% 4/0522 1.9340% 5,000,000.0000 AAA AA+ 96.95 4,972,500.00 4,847,400.00
Fixed Income 3135GOT94 FNMA DEB 2.375% 1/19/23 2.4187% 5,000,000.0000 AAA AA+ 98.19 4,910,990.00 4,909,600.00
Fixed Income 13135GOU35 FNMA 2.750% 62221 2.7476% 7,500,000.0000 AAA AA+ 100.091 7,515,225.00 7,506,675.00
Fixed Income 131371NUC7 F N M A#257179 4.500% 4/01/28 4.3105% 19,466.2800 N/A N/A 104.40 20,587.50 20,322.02
Fixed Income _ 31376KT22 F N M A#357969 5.000% 9/01/35 4.6691% 119,508.8100 N/A N/A 107.09 128,471.95 127,977.20
Fixed Income _ 3137EADM8 F H L M C MTN 1.250% 10/02/19 1.2693% 7,500,000.0000 AAA AA, 98.48 7,399,650.00 7,386,075.00
Fixed Income 3137EAEK1 F H L M C MTN 1.875% 11/17/20 1.9103% 5,000,000.0000 N/A AA+ 98.15 4,986,225.00 4,907,600.00
Fixed Income 3137EAEL9 F H L M C MTN 2.375% 2/16/21 2.3933% 7,500,000.0000 AAA AA+ 99.23 7,484,475.00 7,442,550.00
Fixed Income 3137EAEN5 F H L M C 2.750% 6119/23 2.7604% 5,000,000.0000 N/A AA+ 99.62 4,985,600.00 4,981,150.00
Fixed Income 31381PDA3 FN MA#466397 3.400% 11/01/20 3.3682% 347,921.1300 N/A N/A 100.94 340,391.91 351,205.51
Fixed Income _ 3138EG6F6 F N M A#AL0869 4.500% 6/01/29 4.3096% 13,077.6600 N/A N/A 104.42 13,830.91 13,655.56
Fixed Income 31394J Z5 F H L M C MLTCL MTG 6.500% 9/25/43 5.7503% 832,036.3700 N/A N/A 113.04 942,281.18 940,508.95
Fixed Income 31397OREO F N M A GTD REMIC 1.113% 2/25/41 2.7182% 235,769.5300 N/A N/A 101.95 235,695.86 240,362.32
Fixed Income 31398VJ98 F H L M C MLTCL MTG 4.251% 1/25/20 4.1874% 900,000.0000 N/A N/A 101.52 951,046.88 913,671.00
Fixed Income 31403DJZ3 F N M A#745580 5.000% 6/01/36 4.6681% 119,438.5000 N/A N/A 107.11 128,396.40 127,931.77
Fixed Income 31403GXF4 F N M A#748678 5.000%10/01M 4.6922% 2,792.8700 N/A N/A 106.56 3,002.34 2,976.05
Fixed Income 31406POY8 F N M A#815971 5.000% 3/01/35 4.6710% 201,925.6600 N/A N/A 107.04 217,070.11 216,147.28
Fixed Income 31406XWT5 F N M A#823358 3.481% 2/01/35 3.3182% 121,982.7200 N/A N/A 104.91 121,029.75 127,967.19
Fixed Income 31407M F N M A#826080 5.000% 7/01/35 4.6670% 23,059.8600 N/A N/A 107.14 24,789.33 24,705.41
Fixed Income 31410F4V4 F N M A#888336 5.000% 7/01/36 4.6689% 229,321.4800 N/A N/A 107.09 246,520.60 245,582.67
Fixed Income 31417YAY3 F N M A#MA0022 4.500% 4/01/29 4.3102% 21,543.5900 N/A N/A 104.40 22,784.45 22,492.37
Fixed Income 36225CAZ9 G N M A 11#080023 3.125%122026 3.0387% 20,249.8500 N/A N/A 102.84 20,584.40 20,825.15
Fixed Income 36225CC20 G N M A 1 I#080088 2.625% 6/20/27 2.5338% 21,620.7300 N/A N/A 103.80 22,093.70 22,399.08
2 of5
U.S. Bank
Investment Listing -Yield
As of 6/30/2018
Asset Category CUSIP Asset Short Name Yield Shams/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 36225CN28 G N M A 11#080408 2.625% 5/20/30 2.5368% 66,013.0100 N/A N/A 103.48 65,342.57 68,306.96
Fixed Income 36225CNM4 G N M A 11#080395 2.625% 4/20/30 2.5379% 8,221.6400 N/A N/A 103.43 8,147.11 8,503.97
Fixed Income 36225DCB8 G N M A 11#080965 2.750% 7/20/34 2.6497% 63,517.7900 N/A N/A 103.79 63,478.10 65,923.21
Fixed Income 369550BE7 GENERAL DYNAMICS 3.000% 5/11/21 3.0097% 3,160,000.0000 A2 A. 99.68 3,138,038.00 3,149,856.40
Fixed Income 36962G7MO GENERAL ELEC CA MTN 2.200% 1/09120 2.2267% 5,000,000.0000 A2 A 98.80 5,014,950.00 4,10,150.00
Fixed Income 3837H4NX9 G N M A GTD REMIC 2.585% 2/16/30 2.5763% 14,468.7000 N/A N/A 100.34 14,468.70 14,517.46
Fixed Income 404280BF5 HSBC HOLDINGS PLC 2.650% 1/05/22 2.7370% 4,500,000.0000 A2 A 96.821 4,429,980.00 4,357,035.00
Fixed Income 40428HPJ5 HSBC USA INC 2.625% 9124118 2.6247% 619,000.0000 A2 A 100.01 620,281.33 519,061.90
Fixed Income 40428HPR7 HSBC USA INC MTN 2.350% 3/05/20 2.3778% 2,500,000.0000 A2 A 98.83 2,472,287.50 2,470,800.00
Fixed Income 40428HPUO HSBC USA INC 2.000% 8107118 2.0011% 1,000,000.0000 A2 A 99.95 999,360.00 999,450.00
Fixed Income 43814PAB6 HONDA AUTO 1.570% 1/21/20 1.5765% 747,911.7800 N/A AAA 99.59 747,845.29 744,807.95
Fixed Income 43814PAC4 HONDAAUTO 1.790% 9/20/21 1.8191% 3,090,000.0000 N/A AAA 98.40 3,040,994.53 3,040,590.90
Fixed Income 438140AC2 HONDA AUTO 1.390% 4/15/20 1.3974% 1,025,224.0100 AAA N/A 99.47 1,025,204.12 1,019,769.82
Fixed Income 43814RACO HONDA AUTO 1.210%12/18/20 1.2231% 2,875,000.0000 N/A AAA 98.93 2,843,442.38 2,844,180.00
Fixed Income 43814TAB8 HONDA AUTO 1.420% 7/22/19 1.4220% 386,803.1900 AAA N/A 99.861 386,793.94 385,257.80
Fixed Income 43814UAG4 HONDAAUTO 3.010% 5/18/22 3.0063% 1,710,000.0000 N/A AAA 100.12 1,709,962.72 1,712,103.30
Fixed Income 44932HAH6 IBM CREDIT CORP 3.000% 2/06/23 3.0678% 5,670,000.0000 Al A. 97.79 5,603,254.40 5,544,636.30
Fixed Income 4581XOBR8 INTER AMER DEV BK 1.750% 8/24/18 1.7510% 1,500,000.0000 AAA AAA 99.94 1,498,672.50 1,499,115.00
Fixed Income 4581XOCS5 INTER AMERICAN DEVEL 1.875% 3/15/21 1.9184% 5,000,000.0000 AAA AAA 97.74 5,059,610.00 4,887,000.00
Fixed Income 4581XOCW6 INTER AMER DEV BK 2.125% 1/18/22 2.1707% 3,000,000.0000 AAA N/A 97.90 2,996,310.00 2,936,850.00
Fixed Income 4581XOCX4 INTER AMER DEV BK 1.625% 5/12/20 1.6530% 3,035,000.0000 AAA AAA 98.31 3,027,807.05 2,983,587.10
Fixed Income 4581XOCZ9 INTER AMER DEV BK 1.750% 9/14/22 1.8273% 6,500,000.0000 N/A N/A 95.77 6,249,655.00 6,224,920.00
Fixed Income 459058FY4 INTL BK 2.000% 12622 2.0576% 10,000,000.0000 AAA N/A 97.20 10,006,350.00 9,720,200.00
Fixed Income 45950KCA6 INTL FINANCE CORP 1.750% 9/04/18 1.7518% 1,500,000.0000 AAA AAA 99.90 1,498,365.00 1,498,440.00
Fixed Income 45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 1.1830% 2,500,000.0000 AAA AAA 95.09 2,441,600.00 2,377,350.00
Fixed Income 45950KCMO INTL BK M T N 2.250% 1/25/21 2.2770% 2,970,000.0000 AAA AAA 98.81 2,961,268.20 2,934,775.80
Fixed Income 459515ZGO IFC DISC NTS 7/13/18 0.0000% 5,000,000.0000 99.94 4,979,075.00 4,997,100.00
Fixed Income 46625HJR2 JPMORGAN CHASE CO 2.350% 1/28/19 2.3537% 1,000,000.0000 A3 A- 99.84 998,810.00 998,420.00
Fixed Income 46625HKA7 JPMORGAN CHASE CO 2.250% 1/23/20 2.2793% 2,000,000.0000 A3 A- 98.71 1,994,880.00 1,974,280.00
Fixed Income 47787XAB3 JOHN DEERE OWNER 1.500%10/15/19 1.5026% 536,117.1500 AAA N/A 99.83 536,115.01 535,205.75
Fixed Income 47788BABO JOHN DEERE OWNER 1.590% 4/15/20 1.5961% 603,158.6900 AAA N/A 99.62 603,106.28 600,866.69
Fixed Income 47788BAD6 JOHN DEERE OWNER 1.820%10/15/21 1.8468% 675,000.0000 AAA N/A 98.55 674,950.59 665,192.25
Fixed Income 47788CABB JOHN DEERE OWNER 2.420%10/15/20 2.4256% 1,800,000.0000 AAA N/A 99.77 1,796,343.75 1,795,824.00
Fixed Income 47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 2.6737% 1,340,000.0000 AAA N/A 99.49 1,339,903.65 1,333,112.40
Fixed Income 47788MAC4 JOHN DEERE OWNER 1.360% 4/15/20 1.3662% 1,194,027.7200 AAA N/A 99.55 1,193,839.78 1,188,642.65
Fixed Income 47788NADO JOHN DEERE OWNER 1.490% 5/15/23 1.5153% 1,151,000.0000 AAA N/A 98.33 1,131,936.56 1,131,789.81
Fixed Income 525ESCOY6 LEHMAN BIRTH HLD ESC 0.0000% 2,000,000.00OOI - 1,056,016.56
3 of5
U.S. Bank
Investment Listing -Yield
As of 6/30/2018
Asset Category CUSIP Asset Short Name Yield Shams/Units Moody's S&P Rating Price Cost Basis _Market Value
Fixed Income 525ESCIB7 LEHMAN BIRTH MTN ES 0.00001% 1/24/13 0.0003% 600,000.0000 N/A N/A 3.05 327,458.23 18,300.00
Fixed Income 532457BF4 ELI LILLY CO 1.950% 3115119 1.9593% 4,000,000.0000 A2 AA- 99.53 4,009,675.00 3,981,040.00
Fixed Income 590188JF6 BANK OF AMERICA 6.500% 7/15/18 6.4918% 1,000,000.0000 A3 N/R 100.131 1,004,520.00 1,001,270.00
Fixed Income 594918BP8 MICROSOFT CORP 1.550% 8/08/21 1.6164% 3,045,000.0000 AAA AAA 95.89 3,041,385.15 2,919,880.95
Fixed Income 61747WAL3 MORGAN STANLEY 5.500% 7/28/21 5.1976%1 2,800,000.0000 A3 BBB. 105.82 3,200,848.00 2,962,904.00
Fixed Income 64971M5E8 NEW YORK NY CITY 4.075% 11/01/20 3.9714% 1,400,000.0000 AA1 AAA 102.61 1,400,000.00 1,436,512.00
Fixed Income 654747ABO NISSAN AUTO 1.470% 1/15/20 1.4740% 632,612.7700 AAA N/A 99.73 632,609.54 630,917.37
Fixed Income 65477UAD2 NISSAN AUTO 1.500% 9/15/21 1.5088% 1,800,000.0000 AAA N/A 99.42 1,788,750.00 1,789,488.00
Fixed Income 65478VAD9 NISSAN AUTO 1.320% 1/15/21 1.3323%1 1,708,962.0600 AAA N/A 99.07 1,695,277.01 1,693,137.07
Fixed Income 674599CK9 OCCIDENTAL PETROLEUM 2.600% 4115/22 2.6593% 3,350,000.0000 A3 A 97.77 3,354,589.50 3,275,251.50
Fixed Income 68389XBKO ORACLE CORP 1.900% 9/15121 1.9949% 3,000,000.0000 Al AA. 95.24 2,892,240.00 2,857,250.00
Fixed Income 69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 2.6922% 1,000,000.0000 A2 A 97.50 974,940.00 975,030.00
Fixed Income 69353RFL7 PNC BANK NA 3.500% 6/08/23 3.4949% 5,000,000.0000 A2 A 100.15 4,993,318.05 5,007,250.00
Fixed Income 73358WAG9 PORT AUTH NY NJ 5.309% 12/O1/19 5.1326% 2,440,000.0000 AA3 AA. 103.44 2,507,633.89 2,523,852.80
Fixed Income 74005PBH6 PRAXAIR INC 1.250% 11/07/18 1.2559% 1,205,000.0000 A2 A 99.53 1,198,513.80 1,199,324.45
Fixed Income 747525AD5 QUALCOMM INC 2.250% 5/20/20 2.2837% 5,000,000.0000 A2 A 98.53 4,995,195.40 4,926,300.00
Fixed Income 78009N2V7 ROYAL BK CANADA C D 1.700%10/05/18 1.7029% 1,000,000.0000 99.83 996,762.00 998,300.00
Fixed Income 78012UAX3 ROYAL BK OF C D 2.320%11/27/18 2.3209% 1,000,000.0000 99.96 1,000,000.00 999,620.00
Fixed Income 78445JAA5 S L M A 3.90242% 42523 3.8293% 28,075.8000 BAA3 A 101.91 27,961.89 28,612.05
Fixed Income 83162CLJO S B A GTD DEV PART 6.340% 3/O1/21 6.1733% 39,115.3600 N/A N/A 102.70 39,115.36 40,171.47
Fixed Income 85958JRH4 SVENSKA HANDLSBN C D 1.545% 7/13118 1.5452% 2,000,000.0000 99.99 1,998,300.00 1,999,700.00
Fixed Income 89113X3W2 TORONTO DOMINION C D 2.700% 6/07/19 2.6985% 1,000,000.0000 P-1 A-1+ 100.06 1,000,000.00 1,000,570.00
Fixed Income 89113XUZ5 TORONTO DOMINION C D 2.150% 1/24/19 2.1541% 1,000,000.0000 99.81 997,312.00 998,110.00
Fixed Income 89238BAB8 TOYOTA AUTO 2.100% 10/15/20 2.1079% 5,170,000.0000 AAA AAA 99.63 5,169,471.63 5,150,664.20
Fixed Income _ 90331HNL3 US BANK NA MTN 2.850% 1/23/23 2.9107% 5,000,000.0000 Al AA. 97.92 4,981,600.00 4,895,750.00
Fixed Income _ 9128284D9 U S TREASURY NT 2.500% 3/3123 2.5253% 10,000,000.0000 AAA N/A 99.00 9,887,265.63 9,900,000.00
Fixed Income 912828833 U S TREASURY NT 1.500% 1/31/19 1.5063% 5,000,000.0000 AAA N/A 99.58 4,978,906.25 4,979,100.00
Fixed Income 912828833 U S TREASURY NT 1.500% 1/31/19 1.5063% 11,000,000.0000 AAA N/A 99.58 11,042,439.19 10,954,020.00
Fixed Income 912828F39 U S TREASURY NT 1.750% 9/30/19 1.7649% 5,800,000.0000 AAA N/A 99.15 5,873,186.87 5,751,048.00
Fixed Income 912828G61 U $TREASURY NT 1.500% 11/30/19 1.5205% 7,500,000.0000 AAA N/A 98.65 7,449,634.50 7,398,900.00
Fixed Income 912828,176 U S TREASURY NT 1.750% 3/3122 1.8099% 5,000,000.0000 AAA N/A 95.69 4,976,383.94 4,834,400.00
Fixed Income 9128281-24 U S TREASURY NT 1.875% 8/3122 1.9382% 6,000,000.0000 AAA N/A 95.74 5,987,832.60 5,804,280.00
Fixed Income 912828L57 U S TREASURY NT 1.750% 9/3022 1.8194% 13,000,000.0000 AAA N/A 95.18 12,763,554.69 12,503,920.00
Fixed Income 9128281-99 U S TREASURY NT 1.375% 10/31/20 1.4134% 10,000,000.0000 AAA N/A 97.28 9,850,311.40 9,728,100.00
Fixed Income 912828M80 U $TREASURY NT 2.000% 11/30/22 12.0607% 8,000,000.0000 AAA N/A 97.05 7,907,500.00 7,764,400.00
Fixed Income _ 912828N30 U S TREASURY NT 2.125% 12/31/22 12.1798% 5,000,000.0000 AAA N/A 97.49 4,926,562.50 4,874,400.00
Fixed Income 912828N89 U S TREASURY NT 1.375% 1/3121 1.4183% 6,000,000.0000 AAA N/A 95.95 5,895,840.41 5,816,940.00
4 of5
U.S. Bank
Investment Listing -Yield
As of 6/30/2018
Asset Category CUSIP Asset Short Name , Yield Shams/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 912828R69 U S TREASURY NT 1.625% 5/3123 1.7116% 5,000,000.0000 AAA N/A 94.94 4,757,226.56 4,746,900.00
Fused Income 912828568 U S TREASURY NT 0.750% 7/31/18 0.7506% 26,000,000.0000 AAA N/A 99.92 25,909,101.58 25,977,900.00
Fixed Income 912828SN1 U $TREASURY NT 1.500% 3/31/19 1.5086% 5,000,000.0000 AAA N/A 99.43 5,016,423.00 4,971,500.00
Fixed Income 912828T34 U S TREASURY NT 1.125% 9/3021 1.1808% 7,000,000.0000 AAA N/A 95.28 6,757,914.08 6,669,390.00
Fixed Income 912828T67 U S TREASURY NT 1.250% 10/31/21 1.3084% 6,000,000.0000 AAA N/A 95.54 5,813,691.98 5,732,340.00
Fixed Income 912828U65 U S TREASURY NT 1.750% 11/30/21 1.8032% 7,000,000.0000 AAA N/A 97.05 6,900,492.20 6,793,290.00
Fixed Income 912828V72 U $TREASURY NT 1.875% 1/3122 1.9274% 3,000,000.0000 AAA N/A 97.28 3,004,814.74 2,918,430.00
Fixed Income 912828WS5 U $TREASURY NT 1.625% 6/30/19 11.6369% 2,000,000.0000 AAA N/A 99.27 1,996,861.44 1,985,400.00
Fixed Income 912828WUO U S TREASURY I P S 0.125% 7/15/24 0.1286% 10,972,312.0000 AAA N/A 97.21 10,827,592.09 10,665,635.88
Fixed Income 912828W W U S TREASURY NT 1.625% 7/31/19 1.6384% 5,000,000.0000 AAA N/A 99.18 5,012,388.70 4,959,000.00
Fixed Income 912828XE5 U $TREASURY NT 1.500% 5/3120 1.5295% 5,000,000.0000 AAA N/A 98.07 4,966,423.00 4,903,500.00
Fixed Income 912828XW5 U S TREASURY NT 1.750% 6/3022 1.8151% 5,000,000.0000 AAA N/A 96.41 4,973,454.25 4,820,700.00
Fixed Income 913366EJ5 UNIV OF CALIFORNIA 5.035% 5/1521 4.7727%1 400,000.0000 AA3 AA. 105.50 400,000.00 421,980.00
Fixed Income 931142EK5 WALMART INC 3.400% 6/26/23 3.3749% 3,880,000.0000 AA2 AA 100.74 3,878,991.40 3,908,867.20
Fixed Income 94974BGM6 WELLS FARGO CO MTN 2.600% 722/20 2.6334% 5,000,000.0000 A2 A- 98.73 5,001,650.00 4,936,500.00
Fixed Income 95000U2B8 WELLS FARGO MTN 2.625% 72222 2.7253% 3,000,000.0000 A2 A- 96.321 2,954,520.00 2,889,540.00
Fixed Income 96121T6G8 WESTPACBKINGCO 2.060%11/01/18 2.0620% 1,000,000.0000 99.901 998,657.011 999,010.00
Total Consolidated 614,375,656.56
5 Of
U.S. Bank
Asset Detail - Consolidated
As of 6/30/2018
CUSIP Asset Short Prloe Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
02665KH67 AMERICAN HONDA FIN C P 8I06/18 99.79 1,500,000.0000 1,490,055.00 1,496,865.00 0,24 6,810.00
06406XG65 BNY MELLON CP 7/06/18 99.98 1,000,0000000 993,840.00 999,770.00 0.16 5,93000
21687BJO5 COOPERATIEVE CENTRALE C P 9/24I18 99.48 1,500,000,0000 1,482,252.50 1,492,230,00 0.24 9,977.50
313385A55 FH LB DISC NTS 8103/18 99.83 1,300,000.0000 1,297,049.72 1,297,77700 0.21 727.28
313385C87 FH LB DISC NTS 8/22118 99.73 5,000,000,0000 4,985,300.00 4,986,400,00 0.81 1,10000
313385D29 F H L B DISC NTS B/24118 99.72 2,755,000.0000 2,746,900.30 2,747,203.35 0.45 30305
313385ZE9 FH LB DISC NTS 7111/18 99.95 5,000,000,0000 41994 805 56 4,99T,650.00 0.81 2,84C44
313385ZN9 F H L B DISC NTS 7/19/18 99.91 5,000.000.0000 41992:688.89 4,995,800.00 0.81 2,911.11
3133852U3 F H L B DISC NTS T/25/18 99.88 2,300,000,0000 Z296,015.25 2,29T,263.00 0.3T 1,24LT5
313385ZW9 FH LB DISC NTS 7/27/18 99.87 2,900,000.0000 2,894,715.00 2,896,230.00 0.47 1,51500
313385ZW9 FH LB DISC NTS 7/27/18 99.87 9,000,000,0000 8,987,O78.00 8,988,300.00 1.46 1,22200
31846V567 FIRST AM GOVf OB FD CL Z 100.00 4,727,642.2000 4,727,642.20 4,727,642.20 0.77
31846V567 FIRST AM GOVf OB FD CL Z 100,00 10,528,215,1800 10,528,215.18 10,528,215,18 1.91 �-
36960MGX5 GENERAL ELECTRIC CO C P 7/31/18 99.83 1,500,000.0000 1,490,26T.50 1,497,510.00 0.24 T24250
62479MKF9 MUFG BANK LTD NY BRAN C P 10/15/18 99.33 3,100,000,0000 3,075,417.00 3,079,292,00 0.50 3,875O0
62479MKF9 MUFG BANK LTD NY BRAN C P 10115118 99.33T B000,000.0000 8,937,870.00 8,939,880.00 1.46 2,010.00
89233HJA3 TOYOTA MOTOR CREDIT CO C P 9/10118 99.57 8,000,000,0000 7,936,313.33 7,965,440.00 1.30 29,126.67
89233HJE5 TOYOTA MOTOR CREDIT CO C P 9/14/18 99.54 1,500,000.0000 1,487,573.33 1,493,160.00 0.24 5,586.67
912796NV7 US TREASURY BILL 9/1311B 99.62 30,000,000,0000 29,798,784.98 29,885,70000 4.86 86,91502
912796PR4 U S TREASURY BILL 7/26118 99.89 30,000,000.0000 29,859,074.50 29,965,500.00 4.88 106,425.50
Cash Equivalents Total 135,610,857.3800 135,001,858,2A 135,277,627.73 22.02 275,769.49
Fixed Income
00440EAP2 ACE INA HOLDINGS 2.700% 3113/23 96.80 2,000.000.0000 1,937,000.00 1,935,960.00 0.32 (1,IM0.00)
00440EAU1 ACE INA HOLDINGS 2.875%11/03122 98.25 4,169,000,0000 4,232,453.17 4,096,209,26 0.67 (136,243,91)
02587AAJ3 AMERICAN EXPRESS 1.930% 9115/22 98.53 6,270,000.0000 6,174,085.15 6,177,517.50 1.01 3,432.35
02665WAH4 AMERICAN HONDA MTN 2.250% W15119 99.43 4,000,000,0000 4,046,640.00 3,977,160,00 0,65 (69,480,00)
03215PFN4 AMRESCO 3.03117% 6125/29 94.96 133,743.2900 100,432.85 126,997.28 0.02 26,564.43
037833BS8 APPLE INC 2.250% 2123/21 98.26 4,000,000,0000 4,050,840.00 3,930,440.00 0.64 (120,400,00)
06371ERK5 BANK OF MONTREAL C D 1.750%11113/18 99.79 2,950,000.0000 2,941,422.57 2,943,775.50 0.48 2,352.93
06406HCW7 BANK NY MELLON MTN Z300% 9/11119 99.46 2,120,000,0000 2.142,175.20 2,108,530,80 0.34 (33,644.40)
06606RAA5 BANK OF NY MTN 2.600% V07122 97.94 2,500,000.0000 2,504,475.00 2,448,575.00 0.40 (55,900.00)
06406RAE7 BANK OF NY MTN 2.950% 1Y29123 97.74 1,500,000,0000 1,486,065.00 1,466,025,00 0.24 (20,040.00)
06417GXH6 BANK OF NOVA C D 1.570% 8/09/18 99.95 5,825,000.0000 5,825,000.00 5,821,912.75 0.95 (3,087 25)
O73902CDB BEAR STEARNS CO INC 4.650% 7102118 100.00 3,200,000,0000 3,523,520.00 3,200,000.00 0.52 (323,520,00)
086666BTT BERKSHIRE HATHAWAY 3.000% 6/15122 99.94 4,000,000.0000 4,131,120.00 3,99T,T60.00 0.65 (133,360.00)
08467OBR8 BERKSHIRE HATHAWAY 2.750% 3115123 97.86 2,500,000,0000 2,460,950.00 2,446,525.00 0.40 5,575.00
097014AM6 BOEING CAPITAL CORP 2.900% 8115/18 100.02 700,0000000 700,973.00 700,147.00 0.11 (826.00)
166764BG4 CHEVRON CORP 2.100% 5/16/21 97.66 2,500,000,0000 2.485,350.00 2,441,500.00 0.40 (43,850,00)
24422ESF7 JOHN DEERE MTN 1.950%12/13118 99.69 1,000,000.0000I 997,500.00 996,910.00 0.16 (590.00)
1 Of
U.S. Bank
Asset Detail - Consolidated
As of 6/30/2018
CUSIP Asset Short Name Price Shams/Units Cost Basis Market Value Percent of Total Unrealized Galn&L s
24422ESS9 JOHN DEERE CAP MTN 2.300% 9116119 99.47 5,000,000.0000 5,046,984.00 4,973,550.00 0.81 (73,434.00)
24422ESX8 JOHN DEERE MTN 1.600% 7113/18 99.98 1,500,000,0000 1,497,600.00 1,499,640.00 0.24 2,04000
30231GAV4 EXXON MOBIL 2.222% 3/01121 98.16 3,000,000.0000 3,016,09740 2,944,800.00 0.48 (71,29740)
3130A7CV5 F H L B DEB 1.375% 211 W21 96.80 5,365,000,0000 5,343,325.40 5,193,534.60 0.85 (149,790,80)
3133782M2 F H L B DEB 1.500% 3/08119 99.50 ],500,000.0000 7,589,190.00 ],462,125.00 1.21 (127,065.00)
3133]9RB] F H L B DEB 1.875% 6/11121 97.65 4,000,000.0000 4,030,160.00 3,905,920,00 0.64 (124,240,00)
313383HUB F H L B DEB 1.750% 6112/20 98.37 5,000,000.0000 5,008,950.00 4,918,650.00 0.80 (90,300.00)
3133TCE95 F H L M C MLTCL MTG 3.533% 3/15/32 101.36 18,276 2000 18,295.33 18,523,84 0.00 228.51
31348SWZ3 FHLMC#786064 3.427% 1/01128 102.19 2,110.2800 2,058.90 2,156.41 0.00 97.51
3135GOD75 F N M A DEB 1.500% 6/22/20 97.97 5,000,000,0000 4,955,650.00 4,898,650.00 0,80 (57,000,00)
3135GOF73 FNMA 1.500%11/30/20 97.33 7,500,000.0000 7370,726.00 7,299,525.00 1.19 (71,201.00)
3135GOG72 FNMA 1.125%12/14/18 99.55 5,000,000,0000 4.963,950.00 4,9]],400.00 0,81 13,450.00
3135GOJ20 F N M A DEB 1.375% 2/26121 96.]] 10,000,000.0000 10,040,950.00 9,676,500.00 1.58 (364,450.00)
3135GOS38 FNMA 2.000% 1/05122 97.47 3,000,000,0000 2,994,570.00 2,924,070,00 0.48 (70,500,00)
3135GOT45 FNMA 1.875% 4/OW22 96.95 5,000,000.0000 4,972,500.00 4,847,400.00 0.79 (125,100.00)
3135GOT94 FN MADEB 2.375% 1/19/23 98.19 5,000,000,0000 4.910,990.00 4,909,600.00 0.80 (1,390,00)
3135GOU35 FNMA 2.750% 6122/21 100.09 7,500,000.0000 7,515,225.00 7,506,6]5.00 1.22 (8,550.00)
31371NUC] FNMA#257179 4.500% 4101Y28 104.40 19,4662800 20,587.50 20,322.02 0.00 (26548)
31376KT22 FNMA#357969 5.000% 9/01/35 107.09 119,5088100 128,4]1.95 12],9]].20 0.02 (494.]5)
3137EADM8 FHLMC MTN 1.250%10/02/19 98.48 7,500,000,0000 7.399,650.00 7,386,075.00 1.20 (13,575,00)
3137EAEK1 FHLMC MTN 1.875%11/17120 98.15 5,000,000.0000 4,986,225.00 4,907,600.00 0.80 (78,625.00)
3137EAEL9 FHLMC MTN 2.375% 2116P21 99.23 7,500,000,0000 7,484,475.00 7,442,550,00 1.21 (41,925,00)
3137EAEN5 FHLMC 2.750% 6/19/23 99.62 5,000,000.0000 4,985,600.00 4,981,150.00 0.81 (4,450.00)
31381PDA3 FN MA#466397 3,400%11101/20 100.94 347,921,1300 340,391.91 351,20651 0,06 10,81360
3138EG6F6 FNMA#AL0869 4.500% 6101/29 104.42 13,0]].6600 13,830.91 13,655.5610.00 (175.35)
31394JY35 FHLMC MLTCL MTG 6.500% 9125/43 113.04 832,0363700 942,281.18 940 508 95i 0,15 (1,]]2,23)
69 31397OREO F N M A GTD REMIC 1.113% 2125/41 101.95 235,7695300 235, 5.86 240,362.32 0.04 4,66646
31398VJ9B F H L M C MLTCL MTG 4.251% 1/25120 101.52 900,0000000 951,046.88 913,671.00 0,15 (37,375.88)
31403DJZ3 F N M A#745580 5.000% 6101136 107.11 119,438.5000 128,396.40 127,931.]] 0.02 (464.63)
31403GXF4 FNMA#748678 5.000%10/01133 106.56 2,]928]00 3,002.34 2,976,05 0,00 (26,29)
31406POYO FNMA4815971 5.000% 3/01/35 107.1A 201,9256600 217,W0.11 216,14728 0.04 (922.83)
31406XWT5 FNMA#823358 3A81% 2/01/35 104.91 121,982,7200 121,029.75 127,967.19 0,02 6,937.44
3140]BXH] F N M A#826080 5.000% 7/01135 107.14 23,059.8600 24,789.33 24,705.41 0.00 (83.92)
31410F4V4 F N M A#888336 5.000% 7/01136 107.09 229,321 4800 246,520.60 245,582.67 0,04 (937,93)
3141]YAY3 FNMA#MA0022 4.500% 4/01/29 104.40 21,5435900 22,784.45 22,492.37 0.00 (292.08)
36225CAZ9 G N M A I I N80023 3.125%1220126 102.84 20,249 8500 20,584.40 20,825.151 0,00 240.75
36225CC20 GN MA I I N80088 2.625% 6120127 103.60 21,620.7300 22,093.70 22,399.08 0.00 305.38
36225CN28 G N M A 11#0804082.625% 5/20130 103.48 66,013.0100 65,342.57 68,306,96 0,01 2,964.39
36225CNM4 G N M A 11#0803952.625% 4/20/30 103.43 8,221.64001 8,14711 8,503.97 0.00 356.86
36225DCBB G N M A 11 W809652.750% 7120134 103.79 63,51]]900 63,478.10 65,923,21 0,01 2,445.11
369550BE7 GENERAL DYNAMICS 3.000% 6111/21 99.66 3,160,000.0000 3,138,038.00 3,149,856.40 0.51 11,818.40
2 of
U.S. Bank
Asset Detail - Consolidated
As of 6/30/2018
CUSP Asset Short Name Price Shams/Unks Cost Basis Market Value Percent of Total Unmallred GalnlLoss
36962G7MO GENERAL ELEC CA MTN 2.200% 1/09120 98.80 5,000,000.0000 5,014,950.00 4,940,150.00 0.80 (74,800.00)
3837H4NX9 G N M A GTD REMIC 2.585% 2116/30 100.34 14,468.7000 14,468.70 14,517,46 0.00 48.76
404280BF5 HSBC HOLDINGS PLC 2.650% 1/05/22 96.82 4,500,000.0000 4,429,980.00 4,357,035.00 0.71 (72,945.00)
40428HPJ5 HSBC USA INC 2.625% 9/24118 100.01 619,0000000 620,281.33 619,061 90 0.10 (1,219,43)
40628HPR7 HSBC USA INC MTN 2.350% 3105/20 98.83 2,500,000.0000 2,472,287.50 2,470,800.00 0.40 (1,487.50)
40428HPUO HSBC USA INC 2.000% 8107I18 99.95 1,000,0000000 999,360.00 999,460,00 0.16 100.00
43814PAB6 HONDAAUTO 1.570% 1/21120 99.59 747,911 7800 747,845.29 744,807.95 0.12 (3,037.34)
43814PAC4 HONDAAUTO 1.790% 9/20121 98.40 3,090,000,0000 3,040,994.53 3,040,590,90 0.49 (403,63)
43814OAC2 HONDAAUTO 1.390% 4115120 99.47 1,025,224.0100 1,025,204.12 1,019,]69.82 0.17 (5,434.30)
43814RAC0 HONDAAUTO 1.210%12118/20 98.93 2,875,000,0000 2,843,442.38 2,844,180,00 0.46 ]3].62
43814TAB8 HONDA AUTO 1.420% 7/22119 99.86 386,803.1900 386,793.94 386,257.80 0.06 (536.14)
43814UAG4 HONDAAUTO 3.010% 5118/22 100.12 1,710,000,0000 1.709,962.72 1,712,103,30 0.28 2,140.58
44932HAH6 IBM CREDIT CORP 3.000% V06123 9].]9 5,670,000.0000 5,603,264.40 5,544,636.30 0.90 (58,628.10)
4581XOBR8 INTER AMER DEV BK 1.750% 1124/18 99.94 1,500,000,0000 1,498,672.50 1,499,115,00 0.24 442.50
4581XOCSS INTER AMERICAN DEVEL 1.875% 3/15/21 9].]4 5,000,000.0000 5,059,610.00 4,887,000.00 0.80 (172,610.00)
4581XOCW6 INTERAMERDEVBK 2.125% 1118122 97.90 3,000,000,0000 2,996,310.00 2,936,850.00 0.48 (59,460,00)
4581XOCX4 INTER AMER DEV BK 1.625% 5112120 98.31 3 035,000 0000 3,02],807.05 2,983,58].10 0.49 (44,219.95)
4581XOCZ9 INTER AMER DEV BK 1.]50% 9/14122 95.]] 61500,000,0000 6,249,655.00 6,224,920.00 1.01 (24,735,00)
459058FY4 INTL BK 2.000% 1/26/22 97.20 10,000,000.0000 10,006,350.00 9,]20,200.00 1.58 (286,150.00)
45950KCA6 INTL FINANCE CORP 1.750% 9/04/18 99.90 1,500,000,0000 1.498,365.00 1,498,440.001 0.24 75.00
45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 95.09 2,500.000.0000 2,441,600.00 2,3]],350.00 0.39 (64,250.00)
45950KCMO INTL BK M T N 2.250% 1125Y21 98.81 2,970,000,0000 2,961,268.20 2,934,775,80 0.48 (26,492,40)
459515ZGO IFC DISC NITS 7113/18 99.94 5,000,000.0000 4,979,075.00 4,997,100.00 0.81 18,025.00
46625HJR2 JPMORGAN CHASE CO 2.350% 1128/19 99.84 1,000,0000000 998,810.00 998,420,00 0.16 (390,00)
46625HKA7 JPMORGAN CHASE CO 2.260% 1123/20 98.71 2,000,000.0000 1,994,880.00 1,974,280.00 0.32 (20,600.00)
47787XAB3 JOHN DEERE OWNER 1.500%10115/19 99.83 536,117,1500 536,115.01 535,205,75 0.09 (909,26)
4]]88BABO JOHN DEERE OWNER 1.590% 4/15120 99.62 603,158.6900 603,106.28 600,866.69 0.10 (2,239.59)
4]]88BAD6 JOHN DEERE OWNER 1.820%10115/21 98.55 675,000,0000 674,950.59 665,192.25 0.11 (9,758,34)
4]]88CAB8 JOHN DEERE OWNER 2.420%10115/20 99.]] 1,800,000.0000 1,796,343.75 1,795,824.00 0.29 (519.75)
49988CAC6 JOHN DEERE OWNER 2.660% 4/18/22 99.49 1,340,000.0000 11339,903.65 1,333,112.40 0.22 (6,791.25)
4]]88MAC4 JOHN DEERE OWNER 1.360% 4/15120 99.55 1,194,02]]200 1,193,839.78 1,188,642.65 0.19 (5,197.13)
4]]88NADO JOHN DEERE OWNER 1.490% 5115123 98.33 1,151,000,0000 1.131,936.56 1,131,789.81 0.18 (146,75)
525ESCOY6 LEHMAN BIRTH HLO ESC 2,000,000.0000 1,056,016.56 - - (1,056,016.56)
525ESCIB7 LEHMAN BIRTH MTN ES 0.00001% 1Y24/13 3.05 600,0000000 327,458.23 18,300A0 0.00 (309,158,23)
532457BF4 ELI LILLY CO 1.950% 3/15119 99.53 4,000,000.0000 4,009,675.00 3,981,040.00 0.65 (28,635.00)
590188JF6 BANK OF AMERICA 6.500% 1115/18 100.13 1,000,000,0000 1,004,520.00 1,001,270.00 0.16 (3,250,00)
594918BP8 MICROSOFT CORP 1.550% WOW21 95.89 3,045,000.0000 3,041,385.15 2,919,880.95 0.48 (121,504.20)
61]4]WAL3 MORGAN STANLEY 5.500% 7/28121 105.82 2,800,000,0000 3,200,848.00 2,962,90400 0.48 (237,944.00)
64971 M5E8 NEW YORK NY CITY 4.075%11/01120 102.61 1400,000.0000 1400,000.00 1436,512.00 0.23 36,51200
654747ABO NISSAN AUTO 1.470% 11IW20 99.73 632,612.]]00 632,609.54 630,917,37 0.10 (1,692,17)
65417UAD2 NISSANAUTO 1.600% 9/15/21 99.42 1,800,000.0000 1,788,750.00 1,789,488.00 0.29 738.00
3of5
U.S. Bank
Asset Detail - Consolidated
As of 6/30/2018
CUSIP Asset Short Name Price Shares/Unes Cost Basis Market Value Percent of Total Unreallaed GalnlLoss
65478VAD9 NISSAN AUTO 1.320% 1115/21 99.07 1,708,962.0600 1,695,277.01 1,693,137.07 0.28 (2,139.94)
674599CK9 OCCIDENTAL PETROLEUM 2.600% 4/15/22 97.99 3,350,000,0000 31354,589.50 3,276,261,50 0,53 (79,328,00)
68389MKO ORACLE CORP 1.900% 9/15121 95.24 3,000,000.0000 2,892,240.00 2,857,260.00 047 (34,980.00)
69353RFB9 PNC BANK NA WIN 2.625% 2/17/22 97.50 1,000,0000000 974,940.00 975,030,00 0.16 90.00
69353RFL7 PNC BANK NA 3.500% 6108/23 100.15 5 000,000 0000 4,993,318.05 5,007,250.00 0.82 13,931.95
73358WAG9 PORT AUTH NY NJ 5.309%12101/19 103.44 2,440,000,0000 2,507,633.89 2,523,862.80 0,41 16,22801
74005PBH6 PRAXAIR INC 1.250%11/07118 99.53 1205,000.0000 1,198,513.80 1,199,32445 020 81065
747525AD5 GUM-COMM INC 2.250% 5/20/20 98.53 5,000,000,0000 4.995,195.40 4,926,300,00 0.80 (68,895.40)
78009N2VT ROYAL BK CANADA C D 1.700%10105118 99.83 1,000,000.0000 996,762.00 998,300.00 0.16 1,538.001
78012UAX3 ROYAL BK OF CD 2.320%11/27118 99.96 1,000,0000000 1,000,000.00 999,620.00 0.16 (380,00)
78445JAA5 S L M A 3.90242% 4125/23 101.91 28,0758000 27,961.89 28,612.051 0.00 650.16
83162CUO SB A GTD DEV PART 6.340% 3/01121 102.70 39,115,3600 39,115.36 40,17147 0.01 1,056.11
86958JRH4 SVENSKA HANDLSBN C D 1.545% 7/13118 99.99 2,000,000.0000 1,998,300.00 1,999,700.00 0.33 1,400.00
89113X3W2 TORONTO DOMINION C D 2700% 6/07119 100.06 1,000,000,0000 1,000,000.00 1,000,59000 0.16 570.00
89113XUZ5 TORONTO DOMINION C D 2.150% 1/24119 99.81 1,000,0000000 997,312.00 Nal10.00 0.16 798.00
89238BAB8 TOYOTAAUTO 2.100%10115/20 99.63 5,170,000,0000 5.169,471.63 5,150,664.20 0.84 (18,807,43)
90331HNL3 US BANK NA MTN 2.850% 1123/23 97.92 5 000,000 0000 4,981,600.00 4,895,750.00 0.80 (85,850.00)
9128284D9 USTREASURY NT 2.500% 3/31/23 99.00 10,000,000,0000 9,887,265.63 9,900,000,00 1.61 12,]34.37
912828533 USTREASURY NT 1.500% 1/31119 99.58 5,000,000.0000 4,978,906.25 4,979,100.00 0.81 19375
912828B33 USTREASURY NT 1.500% 1/31119 99.58 11,000,000,0000 11,042,439.19 10,954,02000 1.78 (88,419.19)
912828F39 USTREASURY NT 1.750% 9130119 99.16 5,800,000.0000 5,873,186.87 5,751,048.00 0.94 (122,138.87)
91282BG61 USTREASURY NT 1.500%11/30/19 98.65 7,500,000,0000 7,4 %634.50 7,398,900,00 1.20 (50,134.50)
91282BJ76 USTREASURY NT 1.750% 3/31122 96.69 5,000,000.0000 4,976,383.W 4,834,400.00 0.79 (141,983.94)
912828124 U S TREASURY NT 1.875% 8/31/22 96.74 6,000,000,0000 5,987,832.60 5,804,280.00 0.94 (183,552,60)
912828157 U S TREASURY NT 1.750% 9130122 96.18 13,000,000.0000 12,763,554.69 12,503,920.001 2.04 (259,634.69)
9128281-99 USTREASURY NT 1.375%10131/20 97.28 10,000,000,0000 9,850,311.40 9,728,100.00 1.58 (122,211,40)
912828M80 USTREASURY NT 2.000%11/30/22 97.06 8,000,000.0000 7,907,500.00 7,764,400.00 1.26 (143,100.00)
9128281,30 USTREASURY NT 2.125%12131/22 97.49 5,000,000,0000 4.926,562.50 4,874,400,00 0.79 (52,162,50)
91282SN89 US TREASURY NT 1.375% 1131121 96.95 6,000,000.0000 5,895,840.41 5,816,"0.00 0.95 (78,900.41)
912828R69 USTREASURY NT 1.625% 5/31/23 94.94 5,000,000,0000 4,957,226.56 4,746,900,00 0.99 (10,326,56)
912828SM US TREASURY NT 0.750% 7/31118 99.92 26,000,000.0000 25,909,101.58 25,977,900.00 4.23 68,79842
912828SN1 U S TREASURY NT 1.500% W31119 99.43 5,000,000.0000 5,016,423.00 4,971,500,00 0.81 (44,923.00)
91282STU U S TREASURY NT 1.125% 9130121 95.28 7 000,000 0000 6,757,914.08 6,669,390.00 1.09 (88,524.08)
912828T69 USTREASURY NT 1.250%10131/21 95.54 61000,000,0000 5,813,691.98 5,732,340.00 0.93 (81,351.98)
912828U65 USTREASURY NT 1.750%11/30/21 97.05 7,000,000.0000 6,900,492.20 6,793,290.00 1.11 (107,20220)
912828V72 US TREASURY NT 1.875% 1/31122 97.28 3,000,000,0000 3,004,814.74 2,918,430,00 0.48 (86,38474)
912828WS5 US TREASURY NT 1.625% 6130119 99.27 2,000.000.0000 1,996,861.44 1,985,400.00 0.32 (11,461.44)
912828WUO USTREASURY I PS 0.125% 7115/24 97.21 10,972,312,0000 10,827,592.09 10,665,635.88 1.74 (161,956,21)
912828WW6 USTREASURY NT 1625% 7/31119 99.18 5,000,000.0000 5,012,388 TO 4,959,000.00 0.81 (53,38870)
912828XE5 U S TREASURY NT 1.500% 5131120 98.07 5,000,000,0000 4,966,423.00 4,903,500,00 0.80 (62,923.00)
912828MB U S TREASURY NT 1.750% 6/30122 96.41 5,000.000.0000 4,973,454.25 4,820,700.00I 0.78 (152,T54.25)I
4 of
U.S. Bank
Asset Detail - Consolidated
As of 6/30/2018
CUSIP Asset Short Name Price Shares/UnUs Cost Basle Market Value Percent of Total Unreallud Galn&cros
913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15/21 105.50 400,000.0000 400,000.00 421,980.00 0.07 21,980.00
931142EK5 WALMART INC 3A00% 6/26P23 100.74 3,880,000,0000 3,878,991.40 3,908,86720 0.64 29,875.80
94974BGM6 WELLS FARGO CO MTN 2.600% T/2220 98.73-1 5,000,000.0000 5,001,650.00 4,936,500.00 0.80 (65,150.00)
95000U2138 WELLS FARGO MTN 2.625% 7/22/22 96.32 3,000,000.0000 2,954,520.00 2,889,540.00 0.47 (64,980,00)
96121T6G8 WESTPACBKINGCD 2.060%11/01/18 99.90 1,000,000.0000 998,657.O1 999,010.00 0.16 352.99
Flied Income Total 489,494,386.4800 486,457,303.32 479,098,028.83 77.98 (7,359,274.4900)
Grand Total 625,105,2A3.8600 621,459,161.56 614,375,656.56 100.00 (7,083,505.00)
5 of5
U.S. Bank
Transaction History
O6/01/2018 Thru 06/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cast Gain/L
acnulsmorls
06/01/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,006,000.0000 1.000000 -1,006,000.00 1,006,000.00 0.00
06/01/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVr OB FD CL Z 64,769.8000 1.000000 -64,769.80 64,769.80 0.00
06/04/2018 590188JF6 PURCHASED PAR VALUE OF BANK OF AMERICA 6.500% 7/15/18/BONY/TORONTO 1,000,000.0000 1.004520 -1,004,520.00 1,004,520.00 0.00
DOMINION SECURITIIXNYS 1,000,000 PAR VALUE AT 100.452%
06/04/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 35,906.9300 1.000000 -35,906.93 35,906.93 0.00
06/05/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 1,000,000.0000 1.000000 -1,000,000.00 1,000,000.00 0.00
06/05/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 8,750.0000 1.000000 -8,750.00 8,750.00 0.00
06/06/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 10,000,000.0000 1.000000 -10,000,000.00 10,000,000.00 0.00
06/06/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 8,000,000.0000 1.000000 -8,000,000.00 8,000,000.00 0.00
06/08/2018 69353RFL7 PURCHASED PAR VALUE OF PNC BANK NA 3.500% 6108/23 M.P.MORGAN 2,605,000.0000 0.998860 -2,602,030,30 2,602,030.30 0.00
SECURITIES LLC/2,605,000 PAR VALUE AT 99.886%
06/11/2018 31BOV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 37,500.0000 1.000000 -37,500.00 37,500.00 0.00
06/12/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVr OB FD CL Z 43,750.0000 1.000000 43,750.00 43,750.00 0.00
06MM018 69353RFL7 PURCHASED PAR VALUE OF PNC BANK NA 3.500% 6/08/23/MORGAN STANLEY 2,395,000.0000 0.998450 -2,391,287.75 2,391,287.75 0.00
8 CO.LLC/2,395,000 PAR VALUE AT 99.845%
06/13/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 1,855,000.0000 1.000000 -1,855,000.00 1,855,000.00 0.00
06/13/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 5,847,548.0100 1.000000 -5,947,548.01 5,847,548.01 0.00
06/14/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 46,760,000.0000 1.000000 46,760,000.00 46,760,000.00 0.00
06/14/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 28,125.0000 1.000000 -28,125,00 28,125.00 0.00
06/15/2018 62479MKF9 PURCHASED PAR VALUE OF MUFG BANK LTD NY BRAN C P 10/15/18/MUFG UNION 3,100,000.0000 0.992070 -3,075,417.00 3,075,417.00 0.00
BK NA/MMI/PIMS/IPA13,100,000 PAR VALUE AT 99.207%
06/15/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,500,000.0000 1.000000 -2,500,000.00 2,500,000.00 0.00
06/15/2018 31 WV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 652,642.4500 1.000000 4 52,642.45 652,642.45 0.00
06/15/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 19,245.6600 1.000000 -19,245.66 19,245.66 0.00
06/18/2018 31 WV567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 92,738.9000 1.000000 -92,738.90 92,738.90 0.00
06/19/2018 24422ESF7 PURCHASED PAR VALUE OF JOHN DEERE MTN 1.950%12/13/18/PERSHING 1,000,000.0000 0.997500 -997,500.00 997,500.00 0.00
LLC/1,000,000 PAR VALUE AT 99.75%
06/19/2018 912796NV7 PURCHASED PAR VALUE OF U S TREASURY BILL 9/13/18/J.P.MORGAN 5,000,000.0000 0.995485 4,977,425D0 4,977,425.00 0.00
SECURITIES LLC15,000,000 PAR VALUE AT 99.5485%
06/19/2018 91282BB33 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 1/311191MORGAN 5,000,000.0000 0.995781 4,978,906.25 4,978,906.25 0D0
STANLEY 8 CO.LLC15,000,000 PAR VALUE AT 99.578125%
06/20/2018 06371 ERK5 PURCHASED PAR VALUE OF BANK OF MONTREAL C D 1.750%11/13118/CITIGROUP 1,950,000.0000 0.997517 -1,945,157.84 1,945,157.84 0.00
GLOBAL MARKETS INC./l,950,000 PAR VALUE AT 99.7516841 %
06/20/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVF OB FD CL Z 1,733.0700 1.000000 -1,733.07 1,733.07 0.00
1 of 9
U.S. Bank
Transaction History
06/01/2018 Thru 06/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
06/21/2018 313385ZE9 PURCHASED PAR VALUE OF F H L B DISC NTS 7/11118 WELLS FARGO 5,000,000.0000 0.998961 4,994,805.56 4,994,805.56 0.00
SECURITIES,LLC/5,000,000 PAR VALUE AT 99.8961112%
06/21/2018 313385ZN9 PURCHASED PAR VALUE OF F H L B DISC NTS 7/19/18 WELLS FARGO 5,000,000.0000 0.998538 4,992,688.89 4,992,688.89 0.00
SECURITIES,LLC/5,000,000 PAR VALUE AT 99.8537778%
06/21/2018 313385ASS PURCHASED PAR VALUE OF F H L B DISC NTS 8103/18 MEFFERIES 1,300,000.0000 0.997731 -1,297,049.72 1,297,049.72 0.00
LLC/1,300,000 PAR VALUE AT 99.77305538%
06/21/2018 31 MV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 138,974.0300 1.000000 -138,974.03 138,974.03 0.00
06/22(2018 313385ZU3 PURCHASED PAR VALUE OF F H L B DISC NTS 7125118/MIZUHO SECURITIES 2,300,000.0000 0.998268 -2,296,015.25 2,296,015.25 0.00
USA FXD INC/2,300,000 PAR VALUE AT 99.82675%
06/22/2018 313385ZW9 PURCHASED PAR VALUE OF F H L B DISC NTS 7/27/18/CITIGROUP GLOBAL 1,600,000.0000 0.998182 -1,597,091A1 1,597,091.11 0.00
MARKETS INC.I1,600,000 PAR VALUE AT 99.81819437%
06/22/2018 313385ZW9 PURCHASED PAR VALUE OF F H L B DISC NTS 7/27/18/MIZUHO SECURITIES 1,300,000.0000 0.998172 -1,297,623.89 1,297,623.89 0.00
USA FXD INC/1,300,000 PAR VALUE AT 99.81722231 %
06/22/2018 74005PBH6 PURCHASED PAR VALUE OF PRAXAIR INC 1.250%11/07/18/PERSHING 500,000.0000 0.994980 497,490.00 497,490.00 0.00
LLC/500,000 PAR VALUE AT 99.498%
06/22(2018 89113X3W2 PURCHASED PAR VALUE OF TORONTO DOMINION C D 2.700% 6/07119/BANK OF 1,000,000.0000 1.000000 -1,000,000.00 1,000,000.00 0.00
NEW YORK(THEuIPA/1,000,000 PAR VALUE AT 100%
06/22/2018 912796NV7 PURCHASED PAR VALUE OF U S TREASURY BILL 9113/18/J.P.MORGAN 5,000,000.0000 0.995683 4,978,416.54 4,978,416.54 0.00
SECURITIES LLC/5,000,000 PAR VALUE AT 99.5683308%
06/22/2018 31 MV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 37,500.0000 1.000000 -37,500.00 37,500.00 0.00
06/25/2018 02587AAJ3 PURCHASED PAR VALUE OF AMERICAN EXPRESS 1.930% 9/15122 IJ.P.MORGAN 3,970,000.0000 0.984531 -3,908,589.06 3,908,589.06 0.00
SECURITIES LLC13,970,000 PAR VALUE AT 98.45312494%
06/25/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 938,524.9400 1.000000 -938,524,94 938,524.94 0.00
06/25/2018 31846V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 25,650.8600 1.000000 -25,650A6 25,650,86 0.00
06/27/2018 313385087 PURCHASED PAR VALUE OF F H L B DISC NTS 8/22118/GOLDMAN SACHS 8 5,000,000,0000 0.997060 4,985,300,00 4,985,300.00 0.00
CO.LLC/5,000,000 PAR VALUE AT 99.706%
06/27/2018 931142EK5 PURCHASED PAR VALUE OF WALMART INC 3.400% 6M6/23/CITIGROUP 1,930,000.0000 0.999730 -1,929,478.90 1,929,478.90 0.00
GLOBAL MARKETS INC./1,930,000 PAR VALUE AT 99.973%
06/27/2018 931142EK5 PURCHASED PAR VALUE OF WALMART INC 3.400% 6/26/23/GOLDMAN SACHS 1,950,000.0000 0.999750 -1,949,512.50 1,949,512.50 0.00
8 CO.LLC/1,950,000 PAR VALUE AT 99.975
06/27/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 17,400,000.0000 1.000000 -17,400,000.00 17,400,000.00 0.00
06/27/2018 31BOV567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,621,008.6000 1.000000 4,621,008.60 4,621,008.60 0.00
06/28/2018 62479MKF9 PURCHASED PAR VALUE OF MUFG BANK LTD NY BRAN C P 10/15/18/MITSUBISHI 9,000,000.0000 0.993097 -8,937,870.00 8,937,870.00 0.00
UFJ SECURITIES USA/9,000,000 PAR VALUE AT 99.30966667%
06/28/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 8,000,000.0000 1.000000 -8,000,000.00 8,000,000.00 0.00
06/29/2018 02587AAJ3 PURCHASED PAR VALUE OF AMERICAN EXPRESS 1.930% 9115122/BARCLAYS 1,300,000.0000 0.985117 -1,280,652.34 1,280,652.34 0.00
CAPITAL INC.FIXED IN11,300,000 PAR VALUE AT 98.51171846%
2 of
U.S. Bank
Transaction History
06/01/2018 Thru 06/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
O6/2912018 02587AAJ3 PURCHASED PAR VALUE OF AMERICAN EXPRESS 1.930% 9115122/MITSUBISHI 1,000,000.0000 0.984844 -984,843.75 984,843.75 0,00
UFJ SECURITIES USA/1,000,000 PAR VALUE AT NAB4375%
O6/29/2018 313385ZW9 PURCHASED PAR VALUE OF F H L B DISC NTS 7/27/18/WELLS FARGO 9,000,000.0000 0.998564 -8,987,078.00 8,987,078.00 0.00
SECURITIES,LLC/9,000,000 PAR VALUE AT 99.85642222%
O6/2912018 313385D29 PURCHASED PAR VALUE OF F H L B DISC NTS 8124/18/NOMURA SECURITIES 2,755,000.0000 0.997060 -2,746,900.30 2,746,900.30 0.00
INTERNATIONA/2,755,000 PAR VALUE AT 99.706%
06/29/2018 3137EAEN5 PURCHASED PAR VALUE OF F H L M C 2.750% 6/19/23/NOMURA SECURITIES 5,000,000.0000 0.997120 4,985,600.00 4,985,600.00 0.00
INTERNATIONA/5,000,000 PAR VALUE AT 99.712%
O6/29/2018 3135GOU35 PURCHASED PAR VALUE OF F N M A 2.750% 6/22121 BONY/TORONTO 7,500,000.0000 1.002030 -7,515,225.00 7,515,225.00 0.00
DOMINION SECURITI/7,500,000 PAR VALUE AT 100.203%
O6/29/2018 43814PAC4 PURCHASED PAR VALUE OF HONDA AUTO 1.790% 9/20121 IBONY/TORONTO 3,090,000.0000 0.984141 -3,040,994.53 3,040,994.53 0.00
DOMINION SECURITI13,090,000 PAR VALUE AT 98.41406246%
06/29/201847788NADO PURCHASED PAR VALUE OF JOHN DEERE OWNER 1.490% 5/15123/CITIGROUP 1,151,000.0000 0.983438 -1,131,936.56 1,131,936.56 0.00
GLOBAL MARKETS INC.A,151,000 PAR VALUE AT 98.34374978%
O6/29/2018 68389XBKO PURCHASED PAR VALUE OF ORACLE CORP 1.900% 9/15/21 AMELLS FARGO 3,000,000.0000 0.964080 -2,892,240.00 2,892,240.00 0.00
SECURITIES,LLC/3,000,000 PAR VALUE AT 96.408%
TOTAL ACQUISITIONS 209.811.368.2500 -209.315.014.29 209,315,014.29 0.00
DISPOSITIONS
O6/01/2018 717081DWO MATURED PAR VALUE OF PFIZER INC 1,200% 6/01/181,000,000 PAR VALUE AT -1,000,000.0000 1,000000 1,000,000.00 -997,970,00 2,030,00
100%
O610412018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,019,762.5800 1.000000 1,019,762.58 -1,019,762.58 0.00
06/05/2018 06050TMC3 MATURED PAR VALUE OF BANK OF AMERICA MTN 1.750% 6/05/18 1,000,000 PAR -1,000,000.0000 1.000000 1,000,000.00 -999,110.00 890.00
VALUE AT 100%
O6/06/2018 459053XT6 MATURED PAR VALUE OF INTL BK DISC NTS 6/0611810,000,000 PAR VALUE -10,000,000.0000 1.000000 10,000,000.00 -9,977,502.77 22,497.23
AT 100
O6/06/2018 459053XT6 MATURED PAR VALUE OF INTL BK DISC NTS 610 118 8.000,000 PAR VALUE AT .8,000,000.0000 1.000000 8,000,000.00 -7,982,608.89 17.391.11
100%
O6/08/2018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z -2,602,030.3000 1.000000 2,602,030.30 -2,602,030.30 0.00
O6/13/2018 06538CFD8 MATURED PAR VALUE OF BANK OF TOKYO MITSUBIS C P 6/13/18 1,855,000 PAR -1,855,000.0000 1.000000 1,945,044,83 -1,845,044.83 0.00
VALUE AT 100%
O6/13/2018 0653BCFD8 MATURED PAR VALUE OF BANK OF TOKYO MITSUBIS C P 6/13118 8.240,000 PAR -8,240,000.0000 1.000000 8,195,778.67 -8,195,778.67 0.00
VALUE AT 100%
O6/14/2018 313385YB6 MATURED PAR VALUE OF F H L B DISC NTS 6114/1820,960,000 PAR VALUE AT -20,960,000.0000 1.000000 20,883,208.89 -20,883,208.89 0.00
100%
06/14/2018 89233HFE9 MATURED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 6/14I18 1,800,000 PAR -1,800,000.0000 1.000000 1,788,516.50 -1,788,516.50 0.00
VALUE AT 100%
O6/14/2018 912796PL7 MATURED PAR VALUE OF U S TREASURY BILL 6/14/18 24,000,000 PAR VALUE -24,000,000.0000 1.000000 23,893,024.39 -23,893,024.39 0.00
AT 100
3 of
U.S. Bank
Transaction History
06/01/2018 Thru 06/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
O6/1412018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z -21,500,000.0000 1.000000 21,500,000.00 -21,500,000.00 0,00
O6/15/2018 17275RAU6 MATURED PAR VALUE OF CISCO SYSTEMS INC 1.650% 6115/181,000,000 PAR -1,000,000.0000 1.000000 1,000,000.00 -1,000,150.00 -150.00
VALUE AT 100%
06/15/2018 459501<13X7 MATURED PAR VALUE OF INTL FINANCE CORP 0.875% 6115/182,500,000 PAR -2,500.000.0000 1.000000 2,500,000.00 -2,490,715.00 9,285.00
VALUE AT 100%
O6/15/2018 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 3.427% 1/01/28 MAY FHLMC -17.0000 0.000000 17.00 -16.59 0.41
DUE W15118
06/15/2018 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.487% 8/15/32 -920.6500 0.000000 920.65 -921.61 -0.96
06/15/2018 438140.AC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4/15/20 -112.263.2600 0.000000 112,263.26 -112,261.08 2.18
06/15/2018 47788MAC4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.360% 4/15I20 -117,106.7800 0.000000 117,106.78 -117,088.35 18.43
06/15/2018 47787XAB3 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.500%10/15/19 -112.107.2400 0.000000 112,107.24 -112,106.79 0.45
06/15/2018 47788BABO PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.590% 4/15I20 63,605.7100 0.000000 63,605.71 63,600.18 5.53
06/15/2018 65478WA31 PAID DOWN PAR VALUE OF NISSAN AUTO 1.070% 5/15/19 CMO FINAL -19.228.5100 0.000000 19,228.51 -19,227.75 0.76
PAYDOWN
O6/15/2018 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1115/21 -119,994.5400 0.000000 119,994.54 -119,033.65 960.89
O6/15/2018 654747ABO PAID DOWN PAR VALUE OF NISSAN AUTO 1.470% 1/15120 -100,236.9600 0.000000 100,236.96 -100,236.45 0.51
O6/15/2018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z -2,056,229.5000 1.000000 2,056,229.50 -2,056,229.50 0.00
O6/1812018 3837H4NX9 PAID DOWN PAR VALUE OF G N M A GTD REMIC 2.397% 2/16/30 -745.8100 0.424666 745.81 -745.81 0.00
06/181201843814PAB6 PAID DOWN PAR VALUE OF HONDA AUTO 1.570% 1/21/20 -85,399.4700 3.197284 85,399.47 -85,391.88 7.59
06/19/2018 31846VS67 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,982,954.5900 1.000000 10,982,954.59 -10,982,954.59 0.00
O6/20/2018 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 11#080023 3.125%12/20/26 MAY GNMA -180.2500 0.000000 180.25 -183.23 -2.98
DUE 6/20/18
O6/20/2018 36225CC20 PAID DOWN PAR VALUE OF G N M A 11#080088 2.625% 6120127 MAY GNMA DUE -221.5900 0.000000 221.59 -226.44 4.85
W20118
O6/20/2018 36225CNM4 PAID DOWN PAR VALUE OF G N M A 11#0803952.625% 4/20/30 MAY GNMA DUE -218.5500 0.000000 218.55 -216.57 1.98
6/20/18
O6/20/2018 36225CN28 PAID DOWN PAR VALUE OF G N M A 11#080408 2.625% 5/20130 MAY GNMA DUE 413.0400 0.000000 413.04 408.85 4.19
6I20/18
06/20/2018 36225DCBS PAID DOWN PAR VALUE OF G N M A I I N80965 2.750% 7/20134 MAY GNMA DUE -288.6700 0.000000 288.67 -288.49 0.18
6120/18
06/20/2018 31846VS67 SOLD UNITS OF FIRST AM GOUT OB FD CL Z -1,968,571.3800 1.000000 1,968,571.38 -1,968,571.38 0.00
06/21/2018 43814TABB PAID DOWN PAR VALUE OF HONDA AUTO 1.420% 7/22119 -138,352.6000 57.823272 138,352.60 -138,349.29 3.31
O6/2112018 31846VS67 SOLD UNITS OF FIRST AM GOUT OB FO CL Z -11,284,544.1700 1.000000 11,284,544.17 -11,284,544.17 0.00
06/22/2018 31846VS67 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -11,169,146.7900 1.000000 11,169,146.79 -11.169,146.79 0.00
O612212018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FO CL Z 498,271.2500 1.000000 498,271.25 498,271.25 0.00
06125/2018 808513AJ4 FULL CALL PAR VALUE OF CHARLES SCHWAB CORP 2.200% 7/25118/CALLS/ -930,000.0000 1.000000 930,000.00 -931,941.40 -1,841.40
4 of
U.S. Bank
Transaction History
06/01/2018 Thru 06/30/2018
Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt Cost Gain/Loss
O6/2512018 313WJY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -17,859.0100 0.000000 17,859.01 -20,225.33 -2,366.32
O6/25/2018 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4101/28 MAY FNMA DUE -146.7600 0.000000 14616 -155.21 -8.45
6125/18
06/25/2018 31376KT22 PAID DOWN PAR VALUE OF F N M A#357%9 5.000% 9101/35 MAY FNMA DUE -2.886.3000 0.000000 2,886.30 -3,102.77 -216.47
6125/18
O6/25/2018 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.51334%11/01/20 MAY FNMA -656.7100 0.000000 656.71 -642.50 14.21
DUE 6/25/18
06/25/2018 31403DJZ3 PAID DOWN PAR VALUE OFF N M A#745580 5.000% 6/01/36 MAY FNMA DUE -2,056.5300 0.000000 2,056.53 -2,210.77 -154.24
6125/18
O6/2512018 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 MAY FNMA DUE -11.1300 0.000000 11.13 -11.96 -0.83
6125/18
O6/252018 31406POY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3101/35 MAY FNMA DUE -7,044.9500 0.000000 7,044.95 -7,573.32 -528.37
6125/18
O6/25/2018 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 3.481% 2101/35 MAY FNMA DUE 474.2800 0.000000 474.28 470.57 3.71
6125/18
06/252018 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 MAY FNMA DUE -226.1900 0.000000 226.19 -243.15 -16.96
6125/18
0625/2018 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7101/36 MAY FNMA DUE -5,101.6200 0.000000 5,101.62 -5,484.24 -382.62
6125/18
O6/252018 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6101/29 MAY FNMA DUE -170.2900 0.000000 170.29 -180.10 -9.81
6125/18
O62512018 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01129 MAY FNMA 455.7200 0.000000 455.72 481.97 -26.25
DUE 625/18
0625/2018 31397OREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2/25/41 -2,704.9600 1,369.419759 2,704.96 -2,704.11 0.85
06/25/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,883,369.5400 1.000000 3,883,369.54 -3,883,369.54 0.00
06/27/2018 313385YO3 MATURED PAR VALUE OF F H L B DISC NTS 8,500,000 PAR VALUE AT 100% -8,500,000.0000 1.000000 8,488,232.22 -8,488,232.22 0.00
06/27/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z 4,965,300.0000 1.000000 4,985,300.00 4,985,300.00 0.00
06/28/2018 912796PM5 MATURED PAR VALUE OF U S TREASURY BILL 628118 8,000,000 PAR VALUE -8,000,000.0000 1.000000 7,987,344.44 -7,987,344.44 0.00
AT 100
06/28/2018 31846VS67 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,937,870.0000 1.000000 8,937,870.00 -8,937,870.00 0.00
O6/2912018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z -2,746,900.3000 1.000000 2,746,900.30 -2,746,900.30 0.00
06/29/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -21,861,208,8000 1.000000 21,861,208,80 -21,861,208.80 0,00
06/29/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,987,078,0000 1.000000 8,987,078.00 -8,987,078,00 0,00
TOTAL DISPOSITIONS -213,179,332.2800 212,905,482.22 -212,658,0]4.21 4],408.01
TRANSACTIONS
O6/01/2018 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0,0000 0.000000 9,854.64 0,00 0,00
5/31/2018 INTEREST FROM 5/1/18 TO 5/31/18
5 of
U.S. Bank
Transaction History
06/01/2018 Thru 06/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt C..t Gain/L...
06/01/2018 31846V567 INTEREST EARNED ON FIRST AM GOUT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 35,906.93 0.00 0,00
5/31/2018 INTEREST FROM e/1/18 TO 5/31/18
06/01/2018 717081DWO INTEREST EARNED ON PFIZER INC 1.200% 6/01118$1 PV ON 1000000.0000 0.0000 0.000000 6,000.00 0.00 0.00
SHARES DUE 6/1/2018
06/01/201873358WAG9 INTEREST EARNED ON PORT AUTH NY NJ 5.309%12/01/19$1 PV ON 0.0000 0.000000 64,769.80 0.00 0.00
2440000.0000 SHARES DUE 6/l/2018
06/04/2018 590188JF6 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF AMERICA 6.500% 7115/18 0.0000 0.000000 -25,097.22 0.00 0.00
06/05/2018 06050TMC3 INTEREST EARNED ON BANK OF AMERICA MTN 1.750% 6/05/18$1 PV ON 0.0000 0.000000 8,750.00 0.00 0.00
1000000.0000 SHARES DUE 6/5/2018 INTEREST ON MATURITY 6/5/18
O6/11/2018 313379RB7 INTEREST EARNED ON F H L B DEB 1175% 6111/21 $1 PV ON 4000000.0000 0.0000 0.000000 37,500.00 0.00 0.00
SHARES DUE 6/1112018
06/12/2018 313383HUB INTEREST EARNED ON F H L B DEB 1.750% 6112120$1 PV ON 5000000.0000 0.0000 0.000000 43,750.00 0.00 0.00
SHARES DUE 6/1212018
O6/13/2018 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 21008.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
06/13/2018 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 21008.00 UNITS 0.0000 0.000000 0.00 21,008.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
O6/13/2018 06538CFD8 INTEREST EARNED ON BANK OF TOKYO MITSUBIS C P 6/13/18$1 PV ON 0.0000 0.000000 9,955A7 0.00 0.00
1855000.0000 SHARES DUE 6113/2018 1,855,000 PAR VALUE AT 100%
06/13/2018 0653BCFD8 INTEREST EARNED ON BANK OF TOKYO MITSUBIS C P 6/13/18$1 PV ON 0.0000 0.000000 44,221.33 0.00 0.00
8240000.0000 SHARES DUE 6/13/2018 8,240,000 PAR VALUE AT 100%
06/13/2018 69353RFL7 PAID ACCRUED INTEREST ON PURCHASE OF PNC BANK NA 3.500% 6108123 0.0000 0.000000 -1,164.24 0.00 0.00
O6/13/2018 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 21008.0000 21,008.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
06/13/2018 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 21008.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
O6/14/2018 CASH DISBURSEMENT PAID TO UNION BANK OUTGOING DOMESTIC WIRE PER 0.0000 0.000000 -21,500,000.00 0.00 0.00
DIR DTD 6/14/18
06/14/2018 313385YB6 INTEREST EARNED ON F H L B DISC NTS 6/14/18$1 PV ON 20960000.0000 0.0000 0.000000 76,791.11 0.00 0.00
SHARES DUE 6/14/2018 20,960,000 PAR VALUE AT 100%
O6/14/2018 3135GOG72 INTEREST EARNED ON F N M A 1.125%12114/18$1 PV ON 5000000.0000 0.0000 0.000000 28,125.00 0.00 0.00
SHARES DUE 6/1412018
06/14/2018 89233HFE9 INTEREST EARNED ON TOYOTA MOTOR CREDIT CO C P 6/14/18$1 PV ON 0.0000 0.000000 11,483.50 0.00 0.00
1800000.0000 SHARES DUE 6/14/2018 1,800,000 PAR VALUE AT 100%
O6/14/2018 912796PL7 INTEREST EARNED ON U S TREASURY BILL 6/14/18$1 PV ON 24000000.0000 0.0000 0.000000 106,975.61 0.00 0.00
SHARES DUE 6/14/2018 24,000,000 PAR VALUE AT 100%
O6/15/2018 17275RAU6 INTEREST EARNED ON CISCO SYSTEMS INC 1.650% 6/15118$1 PV ON 0.0000 0.000000 8,250.00 0.00 0.00
1000000.0000 SHARES DUE 6/15/2018
6 Of
U.S. Bank
Transaction History
06/01/2018 Thru 06/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Anat Cost Gain/Loss
O6/1512018 313485WZ3 INTEREST EARNED ON F H L M C#786064 3.427% 1101/28$1 PV ON 6.0800 0.0000 0.000000 6.08 0.00 0,00
SHARES DUE 6/15/2018 APRIL FHLMC DUE 6115/18
06/15/2018 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.487% 8115/32$1 PV ON 55.7800 0.0000 0.000000 55.78 0.00 0.00
SHARES DUE 6/15/2018$0.002911PV ON 19,196.85 PV DUE 6/15118
O6/15/2018 43814OAC2 INTEREST EARNED ON HONDA AUTO 1.390% 4115/20$1 PV ON 1317.5900 0.0000 0.000000 1,317.59 0.00 0.00
SHARES DUE 6/1 512 01 8$0.00116/PV ON 1,137,487.27 PV DUE 6/15118
06/15/2018 459501<13X7 INTEREST EARNED ON INTL FINANCE CORP 0.875% 6/15/18$1 PV ON 0.0000 0.000000 10,937.50 0.00 0.00
2500000.0000 SHARES DUE 6/15/2018
O6/15/2018 47788MAC4 INTEREST EARNED ON JOHN DEERE OWNER 1.360% 4/15120$1 PV ON 1485.9500 0.0000 0.000000 1,485.95 0.00 0.00
SHARES DUE 6/15/2018$0.001131PV ON 1,311,134.50 PV DUE 6/15118
06/15/2018 47787XAB3 INTEREST EARNED ON JOHN DEERE OWNER 1.500% 10115/19$1 PV ON 810.2800 0.0000 0.000000 810.28 0.00 0.00
SHARES DUE 6/1 512 01 8$0.00125/PV ON 648,224.39 PV DUE 6115/18
O6/15/2018 47788BABO INTEREST EARNED ON JOHN DEERE OWNER 1.590% 4/15/20$1 PV ON 883.4600 0.0000 0.000000 883.46 0.00 0.00
SHARES DUE 6/1512018$0.00133/PV ON 666,764.40 PV DUE 6/15/18
06/152018 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 1023.7500 0.0000 0.000000 1,023.75 0.00 0.00
SHARES DUE 6/1 512 01 8$0.00152IPV ON 675,000.00 PV DUE 6/15/18
O6/15/2018 47788CABB INTEREST EARNED ON JOHN DEERE OWNER 2.420% 10/15/20$1 PV ON 3630.0000 0.0000 0.000000 3,630.00 0.00 0.00
SHARES DUE W1512018$0.00202/PV ON 1,800,000.00 PV DUE 6/15118
06/15/2018 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18122$1 PV ON 2970.3300 0.0000 0.000000 2,970.33 0.00 0.00
SHARES DUE 6/1512018$0.00 DPV ON 1,340,000.00 PV DUE 6/15118
O6/15/2018 65478WAB1 INTEREST EARNED ON NISSAN AUTO 1.070% 5/15/19$1 PV ON 19228.5100 0.0000 0.000000 17A5 0.00 0.00
SHARES DUE 6/1512018
06/15/2018 65478VAM INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 2011.8500 0.0000 0.000000 2,011.85 0.00 0.00
SHARES DUE 6/15/2018$0.001101PV ON 1,828,956.60 PV DUE 6/15118
O6/15/2018 654747ABO INTEREST EARNED ON NISSAN AUTO 1.470% 1/15120$1 PV ON 897.7400 0.0000 0.000000 897.74 0.00 0.00
SHARES DUE 6/1 512 01 8$0.001231PV ON 732,849.73 PV DUE 6/15/18
06/15/2018 65477UAD2 INTEREST EARNED ON NISSAN AUTO 1.500% 9/15/21 $1 PV ON 2250.0000 0.0000 0.000000 2,250.00 0.00 0.00
SHARES DUE 6/1512018$0.00125/PV ON 1,800,000.00 PV DUE 6/15118
O6/15/2018 89238BAB8 INTEREST EARNED ON TOVOTA AUTO 2.100%10/15/20$1 PV ON 9047.5000 0.0000 0.000000 9,047.50 0.00 0.00
SHARES DUE 6/1 512 01 8$0.00175IPV ON 5,170,000.00 PV DUE 6/15118
06/18/2018 3837H4NX9 INTEREST EARNED ON G N M A GTD REMIC 2.397% 2 16/30$1 PV ON 30.8600 0.0000 0.000000 30.86 0.00 0.00
SHARES DUE 6/1 612 01 8$0.002031PV ON 15,214.51 PV DUE 6/16118
O6/18/2018 43814RAC0 INTEREST EARNED ON HONDA AUTO 1.210%12/18/20$1 PV ON 2898.9600 0.0000 0.000000 2,898.96 0.00 0.00
SHARES DUE 6/182018$0.001011PV ON 2,875,000.00 PV DUE 6/1 V18
06/18/2018 43814PA86 INTEREST EARNED ON HONDA AUTO 1.570% 1121/20$1 PV ON 1090.2500 0.0000 0.000000 1,090.25 0.00 0.00
SHARES DUE 6/1812018$0.001311PV ON 833,311.25 PV DUE 6118/18
O6/18/2016 43814UAG4 INTEREST EARNED ON HONDA AUTO 3D10% 5118/22$1 PV ON 1710000.0000 0.0000 0.000000 2,573.55 0.00 0.00
SHARES DUE 611 812 01 8
7 of
U.S. Bank
Transaction History
06/01/2018 Thru 06/30/2018
Entry Date CUSIP Id Explanation U�it� Price Net Cash Amt Cost Gain/Loss
O6/1912018 24422ESF7 PAID ACCRUED INTEREST ON PURCHASE OF JOHN DEERE MTN 1.950%12/13/18 0.0000 0.000000 -325.00 0.00 0,00
06119/2018 91282BB33 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 1/31/19 0.0000 0.000000 -28,798.34 0.00 0.00
O6/2012018 36225CAZ9 INTEREST EARNED ON G N M A 11#080023 3.125%12/20/26$1 PV ON 53.2000 0.0000 0.000000 53.20 0.00 0.00
SHARES DUE 6/2012018 MAY GNMA DUE 6120/18
O6/20/2018 36225CC20 INTEREST EARNED ON G N M A 11#0800882.625% 6/20/27$1 PV ON 47.7800 0.0000 0.000000 47.78 0.00 0.00
SHARES DUE 6/20/2018 MAY GNMA DUE 6120118
O6/20/2018 36225CNM4 INTEREST EARNED ON G N M A 114080395 2.625% 4/20/30$1 PV ON 18.4600 0.0000 0.000000 18.46 0.00 0.00
SHARES DUE 6/20/2018 MAY GNMA DUE W20/18
O6/20/2018 36225CN28 INTEREST EARNED ON G N M A I I#080408 2.625% 5/20/30$1 PV ON 145.3100 0.0000 0.000000 145.31 0.00 0.00
SHARES DUE 6/20/2018 MAY GNMA DUE 6/20/18
O6/20/2018 36225DC68 INTEREST EARNED ON G N M A 11#080965 2.750% 7/20134$1 PV ON 146.2200 0.0000 0.000000 146.22 0.00 0.00
SHARES DUE 6/2012018 MAY GNMA DUE 6120/18
O6/20/2018 06371 ERK5 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF MONTREAL C D 1.750% 0.0000 0.000000 -23,413.54 0.00 0.00
11/13/18
O6121/2018 43814TABB INTEREST EARNED ON HONDA AUTO 1.420% 7122/19$1 PV ON 621.4300 0.0000 0.000000 621.43 0.00 0.00
SHARES DUE 6/21/2018$0.00118/PV ON 525,155.79 PV DUE 6/21118
O6/22/2018 31WGOD75 INTEREST EARNED ON F N M A DEB 1.500% 6/22120$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00
SHARES DUE 6/22/2018
O6/2212018 74005PBH6 PAID ACCRUED INTEREST ON PURCHASE OF PRAXAIR INC 1.250%11/07/18 0.0000 0.000000 -781.25 0.00 0.00
06/25/2018 03215PFN4 INTEREST EARNED ON AMRESCO 2.99637% 6/25/29$1 PV ON 333.9500 0.0000 0.000000 333.95 0.00 0.00
SHARES DUE 612 512 01 8$0.00250/PV ON 133,743.29 PV DUE 6/25/18
06/25/2018 808513AJ4 INTEREST EARNED ON CHARLES SCHWAB CORP 2.200% 7/26118$1 PV ON 0.0000 0.000000 8,524.94 0.00 0.00
930000.0000 SHARES DUE 6/25/2018
O6/25/2018 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1125/20$1 PV ON 900000.0000 0.0000 0.000000 3,188.25 0.00 0.00
SHARES DUE 6/25/2018
O6/25/2018 31371 NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 73.5500 0.0000 0.000000 73.55 0.00 0.00
SHARES DUE 6/25/2018 MAY FNMA DUE 6125/18
O6/25/2018 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01135$1 PV ON 509.9800 0.0000 0.000000 509.98 0.00 0.00
SHARES DUE 6/25/2018 MAY FNMA DUE 6125/18
06/25/2018 31381PDA3 INTEREST EARNED ON F N M A#466397 3.51334%11/01/20$1 PV ON 1020.5600 0.0000 0.000000 1,020.56 0.00 0.00
SHARES DUE 6/25/2018 MAY FNMA DUE 6125/18
O6/25/2018 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01136$1 PV ON 506.2300 0.0000 0.000000 506.23 0.00 0.00
SHARES DUE 6/2512018 MAY FNMA DUE 6125/18
06/25/2018 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 11.6800 0.0000 0.000000 11.68 0.00 0.00
SHARES DUE 6/25/2018 MAY FNMA DUE 6125/18
O6/25/2018 31406POY8 INTEREST EARNED ON F N M A#815971 5.000% W01135$1 PV ON 870.7100 0.0000 0.000000 870.71 0.00 0.00
SHARES DUE 6/25/2018 MAY FNMA DUE 6125/18
8 of9
U.S. Bank
Transaction History
06/01/2018 Thru 06/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt C..t Gain/L...
06/25/2018 31406XWT5 INTEREST EARNED ON F N M A#823358 3.481% 2/01135$1 PV ON 355.2300 0.0000 0.000000 355.23 0.00 0,00
SHARES DUE 6/2512018 MAY FNMA DUE 6125/18
06/25/2018 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01135$1 PV ON 97.0300 0.0000 0,000000 97.03 0.00 0.00
SHARES DUE 6/25/2018 MAY FNMA DUE 6125/18
O6/25/2018 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01136$1 PV ON 976.7600 0.0000 0.000000 976.76 0.00 0.00
SHARES DUE 6/25/2018 MAY FNMA DUE 6125/18
O6/25/2018 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% W01129$1 PV ON 49.6800 0.0000 0.000000 49.68 0.00 0.00
SHARES DUE 6/2512018 MAY FNMA DUE 6/25/18
06/2512018 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 82.5000 0.0000 0.000000 82.50 0.00 0.00
SHARES DUE 6/2512018 MAY FNMA DUE 6125/18
06/25/2018 31397OREO INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25/41$1 PV ON 524.5800 0.0000 0.000000 524.58 0.00 0.00
SHARES DUE 6/25/2018$0.00220IPV ON 238,474.49 PV DUE 6/25/18
O6/25/2018 02587AAJ3 PAID ACCRUED INTEREST ON PURCHASE OF AMERICAN EXPRESS 1.930% 0.0000 0.000000 -2,128.36 0.00 0.00
9115/22
06/27/2018 912828W UO BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 21736.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
O6/27/2018 CASH RECEIPT INCOMING WIRES WIRE RECD 6127118 0.0000 0.000000 17,400,000.00 0.00 0.00
O6/2712018 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 21736.00 UNITS 0.0000 0.000000 0.00 21,736.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
06/27/2018 313385YO3 INTEREST EARNED ON F H L B DISC NTS$1 PV ON 8500000.0000 SHARES DUE 0.0000 0.000000 11,767.78 0.00 0.00
6127/2018 8,500,000 PAR VALUE AT 100%
O6/27/2018 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 21736.0000 21,736.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
06/27/2018 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 21736.00 0.0000 0.000000 0.00 0.00 0.00
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
O6/28/2018 912796PMS INTEREST EARNED ON U S TREASURY BILL 6/28/18$1 PV ON 8000000.0000 0.0000 0.000000 12,655.56 0.00 0.00
SHARES DUE 6/2812018 8,000,000 PAR VALUE AT 100%
06129/2018 02587AAJ3 PAID ACCRUED INTEREST ON PURCHASE OF AMERICAN EXPRESS 1.930% 0.0000 0.000000 -750.56 0.00 0.00
9115/22
O6129/2018 02587AAJ3 PAID ACCRUED INTEREST ON PURCHASE OF AMERICAN EXPRESS 1.930% 0.0000 0.000000 -975.72 0.00 0.00
9115/22
06/29/2018 3137EAEN5 PAID ACCRUED INTEREST ON PURCHASE OF F H L M C 2.750% 6/19/23 0.0000 0.000000 -6,875.00 0.00 0.00
06/29/2018 3135GOU35 PAID ACCRUED INTEREST ON PURCHASE OF F N M A 2.750% 6/22121 0.0000 0.000000 -2,291.67 0.00 0.00
O6/29/2018 43814PAC4 PAID ACCRUED INTEREST ON PURCHASE OF HONDA AUTO 1.790% 9/20/21 0.0000 0.000000 -1,690.06 0.00 0.00
06/29/2018 477WNADO PAID ACCRUED INTEREST ON PURCHASE OF JOHN DEERE OWNER 1.490% 0.0000 0.000000 -666.94 0.00 0.00
5115/23
O6/29/2018 68389XBKO PAID ACCRUED INTEREST ON PURCHASE OF ORACLE CORP 1.900% 9115121 0.0000 0.000000 -16,466.67 0.00 0.00
TOTALOTHERTRANSACTIONS 42,744.0000 J,595,071.53 42,740.00 0.00
90f9
Callan
June 30, 2018
Orange County Sanitation District
Investment Measurement service
Quarterly Review
Inbrmatien contained herein includes comments,trade secret and pmprical Information.Neither this Report nor any specific information contained herein Is
to be used other than by the intended recipient for its intended purpose or disseminated to any other personwithout Callan s permission Certain'information
herei has been compiled by Callan and Is based on information provided by a variety of sources believed to be reliable for which Callan has not necessarily
verified the accuracy of completeness of or updated This content may consist of statements of opinion,which are made as of the date they are expressed and
are not statements of fad.This content Is for informational purposes only and should not be construed as legal or tax advice on any matter.Any decision you
make on the basis of this content is your sole responsibility.You should consult with legal and tax advisers before applying any of this Information to your
pamicular situation.Past performance is no guarantee of future results.For summer information,please see Appendix for Important Information and Disclosures.
Table of Contents
June 30, 2018
Capital Markel Review 1
Active Management Overview
Market Overview 7
Domestic Fixed Income 8
Asset Allocation
Investment Manager Asset Allocation 10
Investment Manager Retums 11
Asset Class Risk and Return 15
Manager Analysis
Chandler-Long Term Operating Fund 17
Chandler-Liquid Operating Money 21
Callan Reseamh/Education 23
Definitions 26
Disclosures 31
Callan
Orange County Sanitation District
Executive Summary for Period Ending June 30, 2018
Asset Allocation
June 30, 2018 March 31, 2018
Market Value Weiahl Net New Inv. Inv. Return Market Value Weiahl
Oomeatic FneO 1..
Lan,Tom,Cbenlin9 Fund' 460,660,959 74.70% 46,700,000 1,323,2" 412,837,715 81.64%
11r
T dFu,d 5616,9fi1,9R5 100.0% $100,200,000 $2,OW,217 5505,705j08 100.0%
Performance
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Fund" 0.29% 0.16% 0.99% 1.11% 1.39%
Chandler 0.29% 0.16% 0.99% - -
Blmtg Govt/Cred 1-5 Year Idx 0.17% (0.20%) 0.84% 1.13% 1.25%
ML1-5 Govt/Corp 0,17% (0.16%) 0,87% 1.19% 1.31%
Liquid Operating MonlesA 0.47% 1.37% 0.77% 0.51% 0.41%
Chandler 0.47% 1.37% 0.77% - -
Citiarouo&Month Treasury Bill 0.44% 1.33% 0.64% 0.39% 0.30%
Total Fund 0.33% 0.37% 0.86% 0.98% 1.20%
Target' 0.22% 0.14% 0.82% 1.03% 1.11%
'Current Quarter Target=80.0% AL 1-5 GoWCorp and 20 0%Citi 3mo T-Bills.
AA sets v m transferred in kind to Chandler on 1Vlal)14.Previous performance reflects PIMCO.
Recent Developments
During the quarter, $46.7 million was added to the Long Term Operating Fund, and $62.5
million was added to the Liquid Operating Monies.
Organizational Issues
N/A
Fixed Income Market Snapshot
On June 14 the Fed hiked the Fed Funds target by 25 bps for the second time this year and
signaled two additional increases in 2018, for a potential total of four this year. Coming into
the year, the consensus expectation was for three rate hikes so the addition of one more
reflects the Fed's belief that "...the U.S. economy is in great shape' as Fed Chairman
Jerome Powell stated. In conjunction with the Fed's actions the yield curve flattened over the
quarter, rising most in the 3-month to 3-year range. The biggest change was in the 2-year
Treasury rate which rose 25 bps to 2.52%. The 10-year Treasury settled at 2.85%, up only
11 bps for the quarter, though it crossed over the 3% threshold in late April and again in mid-
May. On the long end, the 30-year Treasury rose by only one basis point to 2.98%.
CallanOrange CountyS nitdm Distnd
The Bloomberg Aggregate Index fell a modest 0.2% in the second quarter. Credit
(Bloomberg Credit Index: -0.9%; Bloomberg Long Gov/Credit: -1.4%)was the biggest
detractor from the broad benchmark's performance as rising rates combined with
spread widening to drag down the sector. Investment grade corporate spreads
widened 14 basis points to 1.23%, their highest level since December 2016, as an
influx of corporate debt supply and increasing leverage among individual issuers
concerned investors. High yield (ML US High Yield Cash Pay Index: +1.0%) was the
best performing sector. High yield spreads did not widen as much as investment
grade and the higher coupons of these securities more than offset increases in rates
and spreads. On the back of rising inflation expectations, TIPS also performed well,
gaining 0.8% (Bloomberg U.S. TIPS Index).
Manager Performance
The Long Term Operating Fund returned 0.29% in the quarter, outperforming the ML U.S. 1-
5 Corp/Gov Index (+0.17%) and ranking 81 r percentile versus peers. The portfolio's duration
ticked up modestly to 2.43 years from 2.41 years at the end of the first quarter, but remained
below the benchmark's 2.70 year duration. The portfolio benefited from the shorter duration
bias as rates continued to rise in the second quarter. Performance relative to the benchmark
was modestly impaired by the Long Term Operating Fund's lower effective yield (2.68%
versus the benchmark's 2.84%). The portfolio had less than 30% invested in credit (22%)
and less than the permitted 20% invested in the combination of asset-backed securities
(7%), commercial mortgage backed securities (0%), and CMOs (1%) as of June 30, 2018
(see page 20).
The Liquid Operating Portfolio gained 0.43% (after fees) in the quarter, which narrowly trailed
the return of the 3-month Treasury (+0.44%). The Portfolio returned 1.22% (after fees)for the
trailing 12-months and ranked in the 27' percentile versus peers.
Cordially,
Gordon M. Weightman, CFA
Senior Vice President
2
Capital Market Review
Capital Market Overview June 30, 2018
U.S.EQUITY U.S.Equity:Quarterly Returns
U.S.equities(S&P 500:+3.4%)rose on a strong earnings
season and positive economic data. Energy was the best- Russell 30M 3.9%
performing sector(+13.5%)as oil prices trended higher after
the U.S.withdrew from the Iran nuclear accord.
Russell 1000 3.6%
Small cep(+7,8^/,)outperformed large cop(+3.6%)on trade
war fears.Large cap companies derive a big portion of
revenues from foreign markets(S&P 500 aggregate is Russell 1000 Graph 5.8%
approximately 40%)and are more negatively impacted
compared to domestically focused small cap firms. Russell 1000 Value . 1.2%
Growth(+5.8%)continued to outperform value(+1.2%)due to
strong results in Consumer Discretionary(+8.2%)and Tech S&P Soo 3.4%
(+7.1%).
The Concentration of mends within broad indices mend.rise Russell Midcap = 2.8%
concern.Excluding the performance of the FAANG stocks
(Faceti Amazon,Apple,Nelftix,Georgia),S&P 500 Russell 25M — 5.7%
performance was negative.
Russa112000 7.8%
Large Cap Trails Small Cap Amid Trade War Concerns
- Retaliatory tariffs hit the U.S.agriculture,auto,and industrial
metals sectors,among others.The ongoing decline of U.S. U.S.Equity:One-Year Returns
export market share is exacerbating the impact on large q H'
caps,which may continue to face macro headvnnds in the
coming quarters.
Russell 3000 14.8%
- Large cap(+2.9%YTD)Is significantly trailing small cap
(+7,7%YTD)as investors view small companies as more Russell 10M 14.5%
insulated against potential trade wars/looming tariffs.S&P
500 companies generate 38%of revenue overseas versus
20%for the S&P Smalli 600. Russell 1000 Growth 22.5%
- The rising dollar and concerns over the divergence between Russell 1000 Value - &8%
the strong U.S.economy and slower global growth are also
driving investors to the relative safety of smaller companies.
S&P 500 74.4%
Large Growth Continues to Dominate
- Large value trailed large growth by nearly 900 bps in the first Russell Midcap 12.3%
half of 2018(-1.7%vs.+7.3%),driven by ongoing
outperformance of the Tech sector and Tech-exposed Russell 25M — 16.2%
Consumer Discretionary companies.
Russell 2000 17.6%
Russell Sector Returns,Quarter ended June 30,2018
a Rusee111000 •Russell 2000
14.2%
10.1%if 85%
A
3.8% 2.1 EM % m 1.8% f
mb%
-1.9% -2.1%
Energy Consumer Technology Health Care Utilities Materials& Financial Producer Consumer
Discretionary Processing Services Durables Staples
Sources:FTSE Russell,Standard&Poor's
Callan
Capital Market Overview(continued) June 30, 2018
Concentration Risk Global Equity:Quarterly Returns
— FAANG stocks confine to drive an outsized proportion of
returns within equity indices. MSCI ACWI 10.5%
— Biotech represents half of the Health Care weight of the MSCI World ' 1.7%
Russell 2000 Growth(12%vs.25%),and many small growth
managers have struggled in selecting biotech names given MSCI ACWI ex USA -2.6% .
the binary outcomes of research and depth of resources
needed to do it well.
MSCI World ex USA
Amazon Effect Continues MSCI ACWI ex USA SC
— Amazon(+17%)increased in size by over 69%since last
year's Russell reconstitution with continued market share MSCI Worm ex USA SC -0.9% '
expansion in the retailing space(including food)and now
into Health Care. MSCI Europe ex UK -2.9% .
— Active large cap managers w th underweight positions to MSCI United Kingdom . 2.9%
Amazon will likely continue to lag their benchmarks given
Amazon's looming presence in large cap indices. MSCI Pacific ex Japan ' 1.8%
NON-U.SJGLOBAL EQUITY MSCI Japan -2.8% .
Non-U.S.markets ended in the red as trade war talk moved MSCI Emerging Markets -8.0% _
into action.Although initial tariffs levied by the U.S.were
targeted,retaliatory actions and supply chain disruptions MSCI China -3.5% ■
broadened their effects.
— Growth outpaced value—although no factor category MSCI Frontier Markets -15.2% —
showed significant strength.
— Cyclical sectors were hurt later in the quarter as the prospect
of slower growth led to reduced expectations. Global Equity:One-Year Returns
— The U.S.dollar was up,hurting non-U.S.returns.The sure
and British pound were hit especially hard with the rise of MSCI ACWI 10.7%
populism and Brexit turmoil.
— Emerging markets sold off significantly,led by China and MSCI World 11.1%
Latin America.
MSCI ACWI ez USA 7.3%
— Fears of increasing debt burdens and trade war effects
impacted China. MSCI World ex USA 7.0%
— Brazil was affected by slower global growth,and falling MSCI ACWI ex USA SC — 10.6%
sentiment hit energy and financials hard.
— Frontier markets were singed by Argentina(42%)on MSCI Worm ex USA SC — 11.9%
continuing political unrest,severe drought,and a devaluing
currency. MSCI Europe ex UK ■ 3.5%
— Emerging markets were among the hardest hit with Latin MSCI United Kingdom — 10.0%
America taking the brunt of the sell-off.In May,Brazil's
central bank unexpectedly left rates unchanged,while a MSCI Pacific ex Japan 8.7%
trucking strike and growing wncern about October elections
weighed on markets.The Brazilian real fell 14%in the MSCI Japan — 10.5%
quarter versus the U.S.dollar.
— China reversed a five-quarter rally on wncern surrounding MSCI Emerging Markets _ 82%
growing debt burdens,slower growth,and trade uncertainty. MSCI China — 21.2%
MSCI Frontier Markets , 1.7%
Source:MSCI
Callan
Capital Market Overview(continued) June 30, 2018
U.S.FIXED INCOME U.S.Fixed Income:Quarterly Returns
Fixed income markets grappled with multiple issues,resulting
in continued volatility.Trade conflicts due to the imposition of Blmberg Barclays Gov/Cr 1-3 Yr 0.3%
tariffs,emerging market elections,and the rising U.S.dollar
contributed to the unstable environment.
Blmberg Barclays Intern Gov/Cr 0.0%
U.S.rates rose in the second quarter and the yield curve
continued its flattening trend.
Blmbery Barclays Aggregate -0.2%
Treasury Spreads Tighten
Blmberg Barclays Long Gov/Cr -1.4% -
- The spread between the 2-year and 10-year ended at its
lowest level(33 bps)in more than 10 years.
Blmberg Barclays Universal 4.3% '
— The Bloomberg Barclays U.S.Aggregate Bond Index fell
0.2%.
CS Levemged Loans 0.8%
— Investment-grade(IG)corporates faced increased
headwinds during the quarter,dragging returns lower. Blmberg Barclays High Yield . 1.0%
Concerns over potential trade wars and rising rates
increasingly weighed on IG credit despite rising earnings and
revenues. Blmbery Barclays TIPS 0.8%
— High yield corporates(Bloomberg Barclays High Yield Index:
+1.0%)rebounded in the second quarter,pushing year-to- U.S.Fixed Income:One-Year Returns
date returns into positive territory.
— CCC-rated credits continued to outperform higher-rated
credits within high yield. Blmberg Barclays Gov/Cr 1-3 Yr 10.2%
— Earnings growth remains strong and defaults remain benign Blmberg Barclays Interm Gov/Cr -0.6% '
amid the positive economic outlook.
Yield Curve Nears Inversion Blmbery Barcays Aggregate -0.4% I
— The Fed's preferred measure of inflation,personal
consumption expenditures(PCE),is on the precipice of its Blmberg Barclays Long Gov/Cr-0.8% ,
2%target.
— The impact of increased tariffs and fiscal policy may lead to Blmberg Barclays Universal -0.3% I
even higher levels.
-
— Only the recent strength of the U.S.dollar and a drop in CS Leveraged Loans 4.7%
energy prices have curtailed the dramatic rise over the past
year. Blmberg Barclays High Yield 2.6%
— With two more hikes forecasted for this year and three more Blmbery Barclays TIPS . 2.1%
next year,the curve is inching closer to inversion.
— While not an immediate cause of recession,an inverted
curve has been a reliable signal of recession in the past. U.S.Treasury Yield Curves
.June 30,2018 March 31,2018
.June 30,2017
4%
3%
2%
1%
0%
0 5 10 15 20 25 30
Maturity(Years)
Sources:Bloomberg,Bloomberg Barclays,Credit Suisse
Callan
Capital Market Overview(continued) June 30, 2018
NON-U.S.FIXED INCOME Global Fixed Income:Quarterly Returns
Most Indices Fell In Second Quarter
— The Bloomberg Barclays Global Aggregate Bond Index Blmberg Barclays GI Aggregate -2.8% ,
dropped 2.8%.
Blmberg Barclays GI Agg(htlg) 0.2%
— The ex-US version of the Index fell even more,declining
4.8%.
Blmberg Barclays GI High Yield -2.2%
— Emerging market Indices were especially hard hit(JPM GBI-
EM Global Diversified Index:-10.4%). Blmberg Barclays GI Agg ex US 4S% ■
— For the last year,broad indices were narrowly positive but
EM Indices were lower. JPM EMBI Global Diversified
Uncertainty of Trade War May Have Biggest Impact JPM GBI-EM Global Diveaffled -10.4% _
— Announced tariffs aren't expected to have a meaningful
impact on growth:however,the extent of the costs ultimately JPM EMBI GI Div/JPM GBI-EM GI Div -7.0% -
depends on the degree to which other countries counter.
— An OECD study that looks at the far larger shock of a 10% JPM CEMBI
across-the-board increase in tariffs by the U.S.,sure zone,
and China finds that global GDP would fall by 1.4%.
— The more impactful result may be an increase in uncertainty, Global Fixed Income:One-Year Returns
which tends to precede weaker economic activity.
— These effects will take time to ultimately play out and are Blmberg Barclays GI Aggregate , 1.4%
even more difficult to cap and quantify.
Blmberg Barclays GI Agg(hdg) . 1.7%
Blmberg Barclays GI High Yield , 1.1%
Blmberg Barclays GI Agg ex US ■ 2.8%
JPM EMBI Global Diversified
JPM GBI-EM Global Diversifed -2.3% ■
JPM EMBI GI DIwJPM GBI-EM GI Div -1.9% 0
JPM CEMBI -0.4% I
Change In 10-Year Global Government Bond Yields
1018 to 2018
U.S.Treasury 12 bps
Germany -20 bps —
U.K. -1 bps _
Canada 8 bps
Japan -1 bps '
Sources:Bloomberg,Bloomberg Barclays,JP Morgan
Callan
Active Management Overview
Market Overview
Active Management vs Index Returns
Market Overview
The charts below illustrate the range of returns across managers in Callan's Separate Account database over the most
recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in
returns across those asset classes.An appropriate index is also shown for each asset class for comparison purposes.As an
example, the 0rsl 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 June 30,2018
15%
to%
138)
E 5%
s)®K 0%
(3])
(5%) (4 )�
(f0%) Large Cap Small Cap Non-US Domestic Nan-Us Real
Equity Equity Equity Fixed Income Fixed Income Estate
V. s vs vs
5&p No Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi NomUS G.A NCREIF Index
10ih Percentile 6.]8 11 A6 0.]9 0.08 (2.92) 3.93
250 Percentile 489 929 in 64) (((01014 ((4A(n 2,68
]Sih Percentile 1.91 5.fi5 (6.28� (0.28) (].O4) 0.5a
139
90ih Percentile 0.83 4.12
Index • 3,43 7,76 (1 24) (0,16) (5,11) 1.]]
Range of Separate Account Manager Returns by Asset Class
One Year Ended June 30,2018
35%
30%
25%
y� 20%
(48)
is% (51)
K to%
7 (60) (58)
5%
�
(2fi)
0%
(5%) Large Cap Small Cap Non-US Domestic Non-Us Real
Equity Equity Equity Fixed Income Fixed Income Estate
vsse vs
UP500 Russell 2000 MBOI EAFE Blmbg Aggr Bd Giti Non-USGoA NCREIF Index
10MPercantila 26.92 30.21 13.78 046 4.30 13.35
25ih Percentile 206.10 24053 10.52 0,16 3.31 10.03
Median 14.59 17.18 7.81 0.09 2.24 7.59
]Sih Percentile 10.83 1294 5.54 039 0.40 5.74
90M Percentile 7.60 9.83 4.07 0.55 low) 1.18
Callan
• 14.37 17.57 6.84 (0.40) 3.22 7.14
Callan Oratryle County sanitation Disidct
Domestic Fixed Income
Active Management Overview
U.S. rates rose in the second quarter and the yield curve continued its Flattening trend. The yield on the 10-year U.S.
Treasury note hit an infra-quarter high of 3.11% in May but closed the quarter at 2.85%, only 11 bps higher than March 31.
Concerns over mounting trade tensions and slower global growth pushed yields lower going into quarter-end. The 2-year
U.S. Treasury note closed at 2.52%, up sharply from 2.27% as of March 31 and its highest level since August 2008. The
yield curve continued to flatten and the spread between the 2-year and 10-year ended at its lowest level (33 bps) in more
than 10 years. The Fed hiked rates in June, as was widely expected, and expects two more increases in 2018. The
Bloomberg Barclays US Aggregate Bond Index returned-0.2%. Investment grade corporates underperformed Treasuries as
heavy supply and concerns over heightened M&A activity weighed on the market. TIPS outperformed as inflation
expectations climbed; the 10-year breakeven rate closed the quarter at 2.11%, up from 2.05% on 3/31. The Bloomberg
Barclays TIPS Index gained 0.8%. High yield corporates (Blomberg Barclays High Yield: +1.0%) outperformed, and
leveraged bank loans(S&P LSTA:+0.7%),which carry a floating rate coupon,also did well.
Separate Account Style Group Median Returns
for Quarter Ended June 30,2018 Blmbg Aggregate. (0.16%)
1.5% Blmbg High Yield: 1.03%
Blmbg Long Gov/Cred: (145%)
1.0%
0.]0 0.]9
0.5% ---_6.64--------------------- --
0.10
E 0.0%
(0.12) (0.18)
x (o.5%) ----------------------
(1.0%) —____-------
(1.5%) (,r4
ao%)
Defensive Intermed Co. Core Plus Extended Bank High Wald
Bond Maturity Loans
Separate Account Style Group Median Returns
for One Year Ended June 30,2018 Blmbg Aggregate: (0,40%)
8% Blmbg High Yield: 2.62%
Blmbg Long Gov/Creel (0.78%)
6%
4.86
4% --------------------------- ____---
2.]3
N
� 2%
0.]3
0.30
0%
(0.17) to 04)
(0.66)
(2%)
Defensive Interned Care Core Plus Extended Bank Hign Yield
Callan
Maturity Loans
Callan charge County sanitation Duster a
Asset Allocation
Investment Manager Asset Allocation
The table below Contrasts the distribution of assets across the Fund's investment managers as of June 30, 2018, with the
distribution as of March 31, 2018. 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
June 30,2018 March 31,2018
Market Value Weight Net New Inv. Inv.Return Market Value Weight
Domestic Fixed Income
tons Term Operating Fund' 460,860,959 74.70% 46,700,000 1.323.244 412.837.715 81.84%
Liquid Operatic Monies' 156,100,966 25.30% 62,500,000 732,972 92.889.993 18.36%
Total Fund $010,961,925 100.0% $109,200,000 $2,056,217 $505,705,708 100.0%
'Chandler replaced PIMCO during,the 4th quarter of 2014.Assets were tmnefeoed In+lnd as of 1001I2014.
Callan Omhge County Sanitation District t9
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended June 30,
2018. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first
set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class.
Returns for Periods Ended June 30,2018
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Fund^ 0.29% 0.16% 0.99% 1.11% 1.39%
Chandler 0.29% 0.16% 0.99% - -
Blmbg Govt/Cred 1-5 Year Idx 0.17% (0.20%) 0.84% 1.13% 1.25%
ML 1-5 Govt/Corp 0.17% (0.16%) 0.87% 1.19% 1.31%
Liquid Operating Monies^ 0.47% 1.37% 0.77% 0.51% 0.41%
Chandler 0.47% 1.37% 0.77% - -
Citigroup 3-Month Treasury Bill 0.44% 1.33% 0.64% 0.39% 0,30%
Total Fund 0.33% 0.37% 0.86% 0.98% 1.20%
Target* 0,22% 0.14% 0.82% 1.03% 1,11%
Current Quarter Target=80.0%MIL US Corp/Govt 1-5Y and 20.0%Citi 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan Omr,e Crmrty Sentle,Irn DlsNtl „
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended June 30,
2018. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first
set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class.
Returns for Periods Ended June 30,2018
Last Last Last
10 15 22.3/4
Years Years Years
Domestic Fixed Income
Long Term Operating Fund^ 2.43% 2.89% 4.22%
Blmbg Govt/Cred 1-5 Year Idz 2.24% 2.62% 4.03%
ML 1-5 Govt/Corp 2.28% 2.64% 4.06%
Liquid Operating Monies^ 0.48% 1.43% 2.59%
Citigroup 3-Month Treasury Bill 0.31% 1.22% 2.28%
Total Fund 2.06% 2.61% 3.97%
Target` 1.88% 2.36% 3.71%
Current Quarter Target=80.0%ML US Corp/Govt 1-5Y and 20.0%Citi 3 Mo T-Bill.
Callan
were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan 0mr,e County Sendarinn Distnd 12
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.
12/2017-
6/2018 2017 2016 2015 2014
Domestic Fixed Income
Long Term Operating Fund^ (0.02%) 1.18% 1.58% 0.85% 1.98%
Chandler (0,02%) 1.18% 1.58% 0.85% -
Blmbg Govl/Cred 1-5 Year Idx (0.33%) 1.27% 1.56% 0.97% 1.42%
ML 1-5 Govt/Com (0.32%) 1.28% 1.62% 1.05% 1.51%
Liquid Operating Monies^ 0.81% 0.91% 0.47% 0.22% 0.09%
Chandler 0.81% 0.91% 0.47% 0.22% -
Citiarouo 3-Month Treasury Bill 0.79% 0.84% 0.27% 0.03% 0.03%
Total Fund 0.19% 1.02% 1.15% 0.80% 1.73%
Target* (0.10%) 1.19% 1.35% 0.85% 1.21%
*Current Quarter Target=80.0%MIL US Corp/Gov:1-5Y and 20.0%Citi 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan 0mr,,e County Santle,Inn mistnd „
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.
2013 2012 2011 2010 2009
Domestic Fixed Income
Long Term Operating Fund^ (1.77%) 3.06% 4.59% 4.42% 5.52%
Blmbg Govt/Cred 1-5 Year Idx 0.28% 2.24% 3.14% 4.08% 4,62%
ML1-S Govt/Corp 0.32% 2.47% 3.10% 4.17% 4.88%
Liquid Operating Monies- 0.13% 0,17% 0.24% 0,25% 0,58%
Ciligroup 3-Month Treasury Bill 0.05% 0.07% 0.08% 0.13% 0.16%
Total Fund (1.49%) 2.70% 3.70% 3.68% 4.65%
Target` 0.26% 1.99% 2.49% 3.36% 3.93%
Current Quarter Target=80.0%MIL US Corp/Govl 1-5Y and 20.0%Citi 3 Mo T-Bill.
Callan
were transferred in kind to Chandler on 12/112014.Previous performance reflects PIMCO.
Callan Crarxre County Sandarinn DisNtl 14
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
14%
1,2%
1.0%
0.8%
N
K
0.6%
OA%
0.2%
0.0% 02% 0.4% Ofi% 0.8% 1.0% 1.2% 1.4%
Standard Deviation
Seven Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
1.6%
1.4%
1.2%
1.0%
0.8%
N
K
0.6%
04%
0.2%
0.0%
0.0% 02% 0.4% Ofi% 0.8% 10% 1.2% 1.4%
,.., 1,, Standard Deviation
Callan Omrr County Sandation Oisftt 15
Manager Analysis
Chandler-Long Term Operating Fund
Period Ended June 30, 2018
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 0.29%return Beginning Market Value $412,837,715
for the quarter placing it in the 81 percentile of the Callan Net New Investment $46,700,000
Defensive Fixed Income group for the quarter and in the 91 Investment Gains/(Losses) $1.323,244
percentile for the last year.
• Long Term Operating Fund's portfolio outperformed the ML Ending Market Value $460,860,959
US Corp/Govt 1-5Y by 0.12% for the quarter and
outperformed the ML US Corp/Govt 1-5Y for the year by
0.31%.
Performance vs Callan Defensive Fixed Income(Gross)
5%
4% (( )29)®Bl3 7
3%% ( 1 §5 ( 448) A )
1% 84)®Bla 3]1®BIB ])®A}a ) I®6(6 )
AB
o% e
(1%) Lest Otr Last last3 Yrs Chandler Last 5Yrs Lead]Ym Laslle Yrs alnoe9630015
Yr Inception
100 Percentile 0.80 1 A] 1.80 1.65 1.87 2.07 3.40 4A0
25M Percen111e OA8 f02 1.52 1.59 1.53 1.79 255 4.13
Median OA1 073 118 120 1.29 1.42 222 387
751h Percentile 0.32 0" 1.00 1.08 1.05 1.11 1.91 3.59
With Percentile 0.20 022 0.]8 0.69 0.93 0.ad 1.28 3.11
Long Term
Operating Fund •A 0.29 0.16 0.99 1.02 1.11 1.39 2.43 4.22
Blmbg G.Wcred
1-5 Year to. 06 O.t] (020) am 0.99 1,13 1.25 2.24 dos
ML US
CorylGoH 1-S • 0.17 (Olin 0,87 1.03 1.19 1.31 2.28 4.06
Callan Defensive Fixed Income(Gross)
Relative Return vs ML US Corp/Govt 1-SY Annualized Seven Year Risk vs Return
2.0% 4.5%
15% ___ __ __ __ __ __ 4.0%
3.5%
E1.0%
3.0%
Of
0.5% E2.5%
0,0% z.o%
9s%)
t.o%
o.s%
(1.5%) 0.0%
11 2012 2013 2014 2015 2016 2017 18 00 0.5 to 15 20 2.5 3.0 3.5
- Lang Term Operating Fund
Standard Deviation
C/'�,� 1,�
allan Orange County Sanitation District 17
Long Term Operating Fund
Return Analysis Summary
Return Analysis
The graphs below analyze the manager's return on both a risk-adjusted and unadjusted basis.The first chart illustrates the
manager's ranking over different periods versus the appropriate style group.The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager's ranking
relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12M/2014. Previous performance reflects PIMCO.
Performance vs Callan Defensive Fixed Income(Gross)
14 2fi2
�g0 (( 11 1 1
aA 2]®B 8 t�B( �1]M*Bl 2®al 2)
! A10 )
%1 12117-6f10 2017 2016 2015 2014 2013 W12 2011 2010 2000
loth Percentile 0.63 2.24 2.82 1.1) 1.50 1.20 4A6 2.)2 4.)1 13.74
25ih Pementile I.
1.76 21] 101 1.2) 0.81 2.60 2.30 4.01 8.60
Median 023 1.31 156 081 1.11 065 l8l 185 3.18 5.94
]Sth Pemen!a 0.13 0.93 1.13 0)5 0.87 040 146 165 2.]2 2.53
90h PerceMila (0.1]) 0.66 1.08 O64 0.7
3 0.29 0.9E 1.44 2A1 1.82
Long Term
Operating Fund GIA (0.02) 1.18 158 085 1,98 1]]) 305 459 4A2 5.52
elm GOWCrad
-5 Year 1& ■B (0.33) 1.27 1.56 087 1.42 0.28 2.24 3.14 4cli 4.62
ML U6
Core/Govt 15Y ♦ (0.32) 1.28 1.62 105 1.51 0.32 2.47 3.10 4.9 4.00
Cumulative and Quarterly Relative Return vs ML US Corp/Govt 1-SY
5%
4%
3%
2%
u1% - -- - - -- -- --- --- -- - --- __
of
y 0%
(2%) - -- -- -- ----- --- --- ---
(3%) - --- --- -------- --- ---
(4%) - --- --- -------- --- ---
(5%)
2008 2009 2010 2011 2012 2013 M14 2015 2016 2017 2018
Long Term Oparating Fund 0 Blmbg GnWCraJ 15 Year 1&0 Callan Defensive Fix Inc
Risk Adjusted Return Measures vs ML US Corp/Gout 1-SY
Rankings Against Callan Defensive Fixed Income(Gross)
Seven Years Ended June 30,2018
5
20
1.5
0 B((93))
0 5 A(95)
0.0
0.5)
(le) 6(95)
(1.5) Alpha Sharpe Exceaa Retum
Rat10 Redo
10h Percentlle 106 1.)9 0.88
25ih Percentile 0.79 1.489 0.67
Median 0.40 1.32 0.20
)Sth Percentile 0.21 1.06 035
901h Percentile 0.03 0.89 0.)2
Longg Term Opemtlng Fund *A ool 0.69 .09
Blmbg GovVCred1-5Year Idx ■B 0.05 0.80 m.85)
Callan Orarcg County sanitation Distinct 10
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 Callan Defensive Fixed Income
as of June 30,2018
5
4-
3- (1)♦ •(6) (18)♦ •(19) (85) (90)
p17
2 93)
1
0
(1) Avenge Effective CouPen OA
Dominion 'it. Yield Rate convexity
1 Olh Pemen1le 2.19 3.38 4.13 3.37 0.07
25th Percen0le 1.93 2.48 3.29 2.81 005
Medlan 1.]9 2.00 2.98 2.47 0.03
75th Peruenl 1.5] 1.91 2.88 2.30 001
90h Percen0le 1.1] t.fi3 2.6 2.12 (0
.06)
Long Tam
Operating Fund • 2.43 2.79 2.68 2.01 -
elmbg Gov/Cred 1-5 Yr ♦ 2.70 2.85 2.84 2.31 0 09
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
June 30,2018 vs Callan Defensive Fixed Income
��s Tray
us. n2 AAA
i
�r 144al
ci Jl� Aq •(57)
M-
w A+
rvxewe�r,ue uri A
A Weighted Average
quality Rating
cme loth Percentile M+
25m Percentile M
Median M
75th Percentile A+
901h Percentile A
0% 10% 20% 30% 60% 50% 60% 70% 80%
Long Term Operating Funtl Callan Defensive Fixatl Income Long Term
Opereting Fund • M
,,11,,M Blmbg GovlCntl 1-5 Yr Blmbg GavlCred 1-5 Yr ♦ M+
L.&3 l Onrcg County Sanitation Mond 19
Long Term Operating Fund
Portfolio Characteristics Summary
As of June 30, 2018
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 Troy US Trsy
32% 62%
CMOs
%
ABS
7% MAA
Gov Reland
22%
Other
13°0
CasM1 Gov Related
2% Tax£xempl US Muni 11%
Co,(Ind 144A) 1% Cap Td 144A)
22% i2
Long Term Operating Fund Blmbg Govt/Credit 1.5 Year
Weighted Average: Duration
Duration Distribution ■ Long Term Opemong Fund: 2.43
80% ■ Blmbg GoWC%dit 1-5 Year 2.70
o 70% ____________ ______ ______
60% -- -- 61.0
_____ ______ ______ ______ ____
d50% _________ ______ ______ ______ ______
o ag% _______ se.r-
30% ,-8____ ______ ______ ____
20% --- ------
R ------
______ ______
0%
0.3 2.3
<1 1-3 35 5-7 7-10 NO
Years Duration
aWelgh�dage: Duallty
Duality Distribution Oyerating Fund:100% WCmdit l-5 Year: AAr
80% ______ ___ ___ __ ___ __
__ ___69.1 63.3
60% _ _ ___ ___ __ ___ ___ _ ___ __ ___ __ __ ___20% n- 5.9 iP.4-12-8 —T278.9
0% 0]
APA M A BBB Be B CCC cc C D NIR
Quality Rating
Callan orange county Sanitation Dhonot 20
Chandler-Liquid Operating Money
Period Ended June 30, 2018
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 0,43% Beginning Market Value $92.867,993
return for the quarter placing it in the 28 percentile of the Net New Investment $62,500,000
Callan Money Market Funds group for the quarter and in the Investment Gains/(Losses) $732,972
27 percentile for the last year.
• Liquid Operating Money Nefs portfolio underperformed the Ending Market Value $156,100,966
Citigroup 3-Month Treasury Bill by 0.01%for the quarter and
underperformed the Citigroup 3-Month Treasury Bill for the
year by 0.11%.
Performance vs Callan Money Market Funds(Net)
2.5%
B)�2.0%
1.5%
20)�(2]
1.0%
,) 124 22) (24
0.5% 28)®(28 21)6 29
( 22)®(29 28) (25
00% Lwt Utr Last Last 3 Ym Chandler Last 5Yrs Last 7Ym LastlOYrs Sinm9p0195
Yr lncapgon
1 OT Percentile 052 146 LOS 0.97 076 049 048 245
25M Percentile 0.45 1 25 0.61 0.52 0.37 0.28 0.33 2.32
Median 0.37 104 045 0.39 0.27 0.20 0.22 2.15
75th Percentile 032 093 0,32 0,28 020 0.14 0.18 204
90T Percentile 026 062 0,22 0,19 0,13 0.10 0,13 190
Liquid Operating
Mona,Net 0
043 122 0,62 0.54 0.36 026 033 244
Ciligmup 3-Month
Treasury Bill • 0.44 1 33 0.64 0.55 0.39 0.30 0.31 2.28
Relative Returns vs Callan Money Market Funds(Net)
Citigroup 3-Month Treasury Bill Annualized Seven Year Risk vs Return
0.10% 2.0%
008% ___ __ __ __ __ __ 1.8%
0.06% ___ __ __ __ _ __ 1.6%
1.4%
E
0.02% --- -- -- - - __ E1.2%
a, 1.0%
>_ o 00% v
wr
0.8%
(0.02%) __ _ __ __ _ _ 0.6%
o.a%
(0.06%) 0.2%
a•
(0.08%)
11 2012 2013 2014 2015 2016 2017 fe 00 95 t o 15 26 25
Standard Deviation
/'�,� 1,� - Liquid OperMing Money Net
Callan Oran,e County Sanitation Oistdct 21
Liquid Operating Money Net
Return Analysis Summary
Return Analysis
The graphs below analyze the manager's return on both a risk-adjusted and unadjusted basis.The first chart illustrates the
manager's ranking over different periods versus the appropriate style group.The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager's ranking
relative to their style using various risk-adjusted return measures.
Assets were transferred in kind to Chandler on 12M/2014. Previous performance reflects PIMCC.
Performance vs Callan Money Market Funds(Net)
6%
4%
1.2%
1.0%
27
0.8% 18®2] •32
.fi%
O4% 29 26 •16
0.2% 11 12 P 47
0.0%
0.2%)
0.4%) 12117 6118 M17 2016 2015 2014 2013 M12 2011 2010 2009
101h Perwr48e 0.84 1.33 106 026 0.23 0.13 026 0.10 0.17 0.60
25th Pecentile O75 0.87 032 0.06 0.02 003 005 003 0.07 0.31
Median 0.63 0.61 0.13 0.01 0.01 0.01 0.01 0.01 0.02 0.15
75th Pecentile cs5 0.42 0.04 0.01 0.01 0.01 0.01 0.01 0.01 0.05
Mh Percer48e 041 0.25 001 000 due 0.00 000 000 ace 0.02
Liquid Operating
Money Net 01 0.73 0.76 0.32 00] (0.06) (0.02) 0.02 0.09 0A0 0.43
Citigroup 3-MorM
Treasury6111 ♦ 0.79 o" 0.27 003 0.03 0.05 0.07 0.08 0.13 0.16
Cumulative and Quarterly Relative Return vs Citigroup 3-Month Treasury Bill
0.60%
0.1%
u, 0.40% _ _ _ ___ _______ __ ___ ___
'e
d
(0.10%)
0.20%)
0s0%)
2008 2009 2010 Mill 2012 2013 2014 2015 2016 2017 2018
10 Liquid Opened,Money Net 0Callan Monay Ma�kat Funds
Risk Adjusted Return Measures vs Citigroup 3-Month Treasury BIII
Rankings Against Callan Money Market Funds(Net)
Seven Years Ended June 30,2018
15
1.0
0.5
0 0 0)
0.5)
(t6) •12e)
(1.5)
(2.0)
(25) Alpha SM1 rpe Excess Retum
RNIo Ratio
101h Percentile 0.29 0.32 IeO
25th Percentila 10.01) 0.51
Median 0.08 0.88 1.5]
75th Percentile (0.13) 1.16)) 1.84
901h Percentile (0.1]) (1.95) 2.11
/'�
Liquid Operating Money Net • M 05) (0.29) (0.92)
Callan Orange County Sandation Oistdct 2
Callan Research/Education
CALLAN
Callan INSTITUTE end Quarter 2018
Education
Research and Educational Programs
The Callan Institute provides research to update clients on the latest industry trends and carefully structured educational programs
to enhance the knowledge of industry professionals.Visit www.callan.coMlibrary to see all of our publications,and www.callan.com/blog
to view our blog"perspectives.'For more information contact Cony Walsh at 312.346.3536/institute@cellan.com.
New Research from Callan's Experts
Handle with Extreme Care: Callan's astute govemance required to meet these challenges also resulted
`_ Take on Cryptocumencies I In this paper, in better portfolio performance?At this workshop, Callan experts
�� author Marc Wood provides a brief over- described the most effective institutional fund governance practices
�� view of cryptocunencies and addresses and explored new research that connects strong plan governance
pdmarywnsiderationsforpotentlalinvestors. with performance (i.e., governance alpha), and reviewed how in.
He describes why Callan does not currently recommend our clients vestment managers fit into this framework.
allocate to cryptocunency investment strategies,and where we see
Me greatest future potential in this space. Quarterly Periodicals
Risk Parity: Silver Bullet or a Bridge Too Far? I In this chapter Private Markets Trends I This newsletter offers the latest data on
from the CFA Institute's book"Multi-Asset Strategies:The Future of activity in private equity fundr-dising, buyouts, venture capital, and
Investment Management;Callan's Greg Allen descrbes risk parry returns for this asset class,
strategies, a category of investment strategies in which capital is
Market Pulse Flipbook I A quartery market reference guide cover-
allocated across asset classes so that each contributes an equal
ing investment and fund sponsor trends in the U.S.economy,U.S.
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and non-U.S. equities and fixed Income, alternatives, and defined
China A-Shares:Key Issues for Investors to Consider l China is contribution.
opening up its securities markets to more non-Chinese institutional
Capital Market Review I This quarterly publication provides analy-
investors.In particular,expanded access to China A-shares creates
sis and a broad overview of the economy and public and private
new opportunities for investors. But investing in China presents a
market activity each quarter across a wide range of asset Gasses.
set of risks that range from the country's slowing GDP growth to
stock trading suspensions. Although China A-shares present an Active vs.PassiveReportlThisseriesofchartsmapsactiveman-
affractive opportunity, implementation is challenged by a shallow agers alongside relevant benchmarks over the last two decades.
manager universe and high fees.
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nni�iinii!lslii!!I������
Alpha I Investment committees face complex challenges oversee- nI'lit"' iii�ii'i°M1111ini�i"iiiiiiii Callan's Real Assets Consulting group
ing institutional investment funds.They must navigate myriad laws iiiiiiiiiiiiiiiiii'i" ' iiiiiiiii iiiiiiii iiii'iii identifies seven indicators rased
and regulations,select the right managers and strategies, monitor N'�, _ on spreads in real estate and fixed
their portfolios,and ensure their funds can deliver the returns needed - income mirkeL that, combined with
for their beneficiaries.Governance describes the policies and prac- an understanding of prevailing market dynamics, have helped sig-
none established to guide these decisions.What if implementing the nal when the institutional real estate market is overheated or cooled.
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
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This program familiarizes fund sponsor trustees, staff, and asset
For more Information about events, please contact Barb management advisers with basic investment theory,terminology,
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I College since 1994 was founded
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Callan V @CaIIsnLLC ID Callan
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).
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.
Rising and Declining Periods refer to the sub-asset class cycles vis-a-vis the broader asset class. This is determined by
evaluating the cumulative relative sub-asset class index performance to that of the broader asset class index. For example,
to determine the Growth Style cycle, the S&P 500 Growth Index (sub-asset class) performance is compared to that of the
S&P 500 Index(broader asset class).
Sharpe Ratio is a commonly used measure of risk-adjusted return. It is calculated by subtracting the "risk-tree" return
(usually 3 Month Treasury Bill)from the portfolio return and dividing the resulting"excess return" by the portfolio's risk level
(standard deviation).The result is a measure of return gained per unit of risk taken.
Sortino Ratio is a downside risk-adjusted measure of value-added. It measures excess return over a benchmark divided by
downside risk. The natural appeal is that it identifies value-added per unit of truly bad risk. The danger of interpretation,
however, lies in these two areas: (1)the statistical significance of the denominator,and (2) its reliance on the persistence of
skewness in return distributions.
Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their
sample mean. Standard deviation is used as an estimate of risk since it measures how wide the range of returns typically is.
The wider the typical range of returns,the higher the standard deviation of returns,and the higher the portfolio risk. If returns
are normally distributed (Is. has a bell shaped curve distribution) then approximately 2/3 of the returns would occur within
plus or minus one standard deviation from the sample mean.
Total Portfolio Risk is a measure of the volatility of the quarterly excess returns of an asset. Total risk is composed of two
measures of risk: market(non-diversifable or systematic)disk and residual(diversifiable or unsystematic) risk. The purpose
of portfolio diversifcation is to reduce the residual risk of the portfolio.
Callan
27
Risk/Reward Statistics
Tracking Error is a statistical measure of a portfolio's risk relative to an index. It reflects the standard deviation of a
portfolio's individual quarterly or monthly returns from the index's returns. Typically,the lower the Tracking Error, the more
"Index-like"the portfolio.
Traynor Ratio represents the portfolio's average excess return over a specified period divided by the beta relative to its
benchmark over that same period. This measure reflects the reward over the risk-free rate relative to the systematic risk
assumed.
Note:Alpha,Total Risk,and Residual Risk are annualized.
Callan
28
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
identity any significant sector bets.
Average Coupon-The average coupon is the market value weighted average coupon of all securities in the portfolio. The
total portfolio coupon payments per year are divided by the total portfolio par value.
Average Moody's Rating for Total Portfolio- A measure of the credit quality as determined by the individual security
ratings. The ratings for each security, from Moody's Investor Service, are compiled into a composite rating for the whole
portfolio. Quality symbols range from Aaa+ (highest investment quality-lowest credit risk)to C (lowest investment quality-
highest credit risk).
Average Option Adjusted(Effective)Convexity-Convexity is a measure of the portfolio's exposure to interest rate risk. It
is a measure of how much the duration of the portfolio will change given a change in interest rates. Generally,securities with
negative convexities are considered to be risky in that changes in interest rates will result in disadvantageous changes in
duration. When a security's duration changes it indicates that the stream of expected future cash-flows has changed,
generally having a significant impact on the value of the security. The option adjusted convexity for each security in the
portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected
stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any
put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal
prepayments.
Average Option Adjusted(Effective)Duration- Duration is one measure of the portfolio's exposure to interest rate risk.
Generally, the higher a portfolio's duration, the more that its value will change in response to interest rate changes. The
option adjusted duration for each security in the portfolio is calculated using models developed by Lehman Brothers and
Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate
scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected
sinking-fund paydowns or any expected mortgage principal prepayments.
Average Price-The average price is equal to the portfolio market value divided by the number of securities in the portfolio.
Portfolios with an average price above par will tend to generate more current income than those with an average price below
par.
Average Years to Expected Maturity- This is a measure of the market-value-weighted average of the years to expected
maturity across all of the securities in the portfolio. Expected years to maturity takes into account any put or call options
embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments.
Average Years to Stated Maturity- The average years to stated maturity is the market value weighted average time to
stated maturity for all securities in the portfolio. This measure does not take into account imbedded options, sinking fund
paydowns,or prepayments.
Current Yield-The current yield is the current annual income generated by the total portfolio market value. It is equal to the
total portfolio coupon payments per year divided by the current total portfolio market value.
Callan
29
Fixed Income Portfolio Characteristics
Duration Dispersion- Duration dispersion is the market-value weighted standard deviation of the portfolio's individual
security durations around the total portfolio duration. The higher the dispersion, the more variable the security durations
relative to the total portfolio duration ('barbellness"), and the smaller the dispersion, the more concentrated the holdings'
durations around the overall portfolio's ('bulletnessi The purpose of this statistic is to gauge the 'bulletness' or
'barbellness'of a portfolio relative to its total duration and to that of its benchmark index.
Effective Yield-The effective yield is the actual total annualized return that would be realized if all securities in the portfolio
were held to their expected maturities. Effective yield is calculated as the internal rate of return, using the current market
value and all expected future interest and principal cash flows. This measure incorporates sinking fund paydowns,expected
mortgage principal prepayments,and the exercise of any"in-the-money"imbedded put or call options.
Weighted Average Life-The weighted average life of a security is the weighted average time to payment of all remaining
principal. It is calculated by multiplying each expected future principal payment amount by the time left to the payment. This
amount is then divided by the total amount of principal remaining. Weighted average life is commonly used as a measure of
the investment life for pass-through security types for comparison to non-pass-through securities.
Callan
30
Disclosures
Callan 1
Quarterly List as of
June 30, 2018
List of Callan's Investment Manager Clients
Confidential-For Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously.We recognize that there are numerous potential conflicts of interest
encountered in the investment consulting industry and that it is our responsibility to manage those compete effectively and in the best interest of our
clients. Al Callan,we employ a robust process to Identify,manage,monitor and disclose potential conflicts on an ongoing basis.
The list below is an important component of our conflicts management and disclosure process. It identities those investment managers that pay Callan
fees for educational,consulfing,software,database or reporting products and services. We update the list quarterly because we believe that our fund
sponsor clients should from the investment managers that do business with Callan,particularly those investment manager clients that the fund sponsor
clients may be using or considering using.Please note that if an investment manager receives a product or service on a complimentary basis(e.g.
attending and educational event),they are not included in the list below.Callan is committed to ensuring that we do not consider an investment
manager's business relationship with Callan,or lack thereof,in performing evaluations for or making suggestions or recommendations to its other
clients. Please refer to Callan's ADV Part 2A for a more detailed description of the services and products that Callan makes available to investment
manager clients through our lnestutlonal Consulting Group,Independent Adviser Group and Fund Sponsor Consulting Group. Due to the complex
consumer and organizational ownership structures of many Investment management firms,parent and affiliate Mn relationships are not indicated on our
list.
Fund sponsor clients may request a copy m the most currently available list at any time.Fund sponsor clients may also request specific information
regarding the fees paid to Callan by particular fund manager clients. Per company policy,Information requests regaining fees are handled exclusively
by Callan's Compliance Department.
Acadian Asset Management LLC CleaiBridge Investments,LLC
AEGON USA Investment Management Cohen&Steers Carol Management,Inc. —
Affiliated Managers Group,Inc. Columbia Threadneedle Investments
Alcentra Columbus Circle Investors 7�
Alliamaklernstein Credit Suisse Asset Management
Allianz Global Investors Degrade,Race If Zollo,Inc.
Allianz Life Insurance Company of North America Deutsche Asset Management
American Century Investments Diamond Hill Captal Management,Inc.
Apollo Global Management Dimensional Fund Advisors LP
AOR Capital Management Doubleline
Ares Management LLC Duff&Phelps Investment Management Co.
Adel Investments,LLC EARNEST Partners,LLC
Atlanta Capital Management Co.,LLC Eaton Vance Management
Aviva Investors Americas Epoch Investment Partners,Inc.
AXA Investment Managers Fayez Samfim&Company
Baffle Gil International,LLC Federated Investors
Baird Advisors Fidelity Institutional Asset Management
Baron Capital Management,Inc. Fiem Capital Corporation
Barrow,Hanley,Mewhinney&Strauss,LLC First Eagle Investment Management,LLC
BlackRock First Hawaiian Bank Wealth Management Division
BMO Global Asset Management Fisher Investments
BNP Paribas Asset Management Franklin Templeton
BNV Mellon Asset Management Fred Alger Management,Inc.
Boston Partners GAM(USA)Inc.
Brandies Investment Partners.L.P. Global Evolution USA
Brandywine Global Investment Management,LLC GI.Ix ex Capital,L.P.
BdghtSphere Investment Group(FI(A Old Mutual Asset) GMO
Brown Brothers Harriman&Company Goldman Sachs Asset Management
Carl Investors,LLC Green Square Capital LLC
Capital Group Guggenheim Investments
Carillon Tower Advisers Gi Investment Management
CordiaArk Management,LLC Harbor Capital Group Trust
Causeway Capital Management Hartford Funds
Chartwell Investment Partners Hartford Investment Management Co.
Callan I Knowledge.Experience.Integrity. Page 1 of 2
Heitman LLC PGIM
Henderson Global Investors PGIM Fixed Income
Holebkis&Wiley Capital Management,LLC PlneBddge Investments
HSBC Global Asset Management Pioneer Investments
Income Research a Management,Inc. PNC Capital Advise ,LLC
Insight Investment Management Limited Principal Global Investors
Intech Investment Management,LLC Private Advisors,LLC
Invdeco Putnam Investments,LLC
Investec Asset Management QMA
Ivy Investments RBC Global Asset Management
J P.Morgan Regions Financial Corporation
Janus Henderson Investors Foredo Institutional Asset Management,US Inc.
Jennison Associates LLC Rockefeller&Co.,Inc.
Jensen Investment Management Rothschild Asset Management,Inc.
Jobs Peak Advisors Russell Investments
KeyCory Santander Global Facilities
Lazard Asset Management Schroder Investment Management North America Inc.
Legal&General Investment Management America Smith Graham B Co.Investment Advisors,L.P.
Lincoln National Corporation Smith Group Asset Management
LMCG Investments,LLC South Texas Money Management,Ltd,
Longview Partners Standard Life Investments Limited
Loomis,Saytes&Company,L.P. State Street Global Advisors
Lord Abbed&Company Slone Harbor Investment Partners,L.P.
Los Angeles Capital Management Sun Life Investment Management
LSV Asset Management T.Rowe Price Associates,Inc.
MacKay Shields LLC The Boston Company Asset Management,LLC
Macquarie Investment Management(MIM) The London Company
Manulrfe Asset Management The TOW Group,Inc.
McKinley Capital Management,LLC Thompson,Siegel&We l ley LLC
MPS Investment Management Thornburg Investment Management,Inc.
MidFirst Bank Tri-Star Trust Bank
Mondrian Investment Partners Limited UBS Asset Management
Montag&Caldwell,LLC VanEck
Morgan Stanley Investment Management Velanne Asset Management Ltd.
Mountain Lake Investment Management LLC Versus Capital Group
MUFG Union Bank,N.A. Victory Capital Management Inc.
Natixis Investment Managers Virlus Investment Partners,Inc.
Neuberger Barman Vontobel Asset Management,Inc.
Newton Investment Management Voya
Nikko Asset Management Co.,Ltd WCM Investment Management
Northam Trust Asset Management WEDGE Capital Management
Nuveen Investments,Inc. Wellington Management Company,LLP
OR Global Asset Management Wells Capital Management
O'Shaughnessy Asset Management,LLC Western Asset Management Company
PIE Investments Westfield Capital Management Company,LP
Pacts Investment Management Company Westwood Holdings Group
Pathway Capital Management William Blair&Company
Peregrine Capital Management,Inc.
Perkins Investment Management
Callan I Knowledge.Experience.Integrity. Page 2 of 2 June 30,2018
Investment Report
Orange County Sanitation District
Period Ending
June 30, 2018
Table of Contents
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
Gilk
SECTION 1
Economic Update
ICJJJ � Economic Update
■ As expected, the Federal Open Market Committee raised the fed funds target rate by 25 basis points to a range of
1.75%-2.00% at the June 13 meeting. Though the decision to hike the fed funds rate was widely anticipated, market
participants generally interpreted the policy statement and summary of economic projections as being more hawkish
than expected. The Fed signaled there could be a total of four rate hikes this year. However, we anticipate the impact
of market dynamics related to a stronger US dollar, increased deficit-related Treasury issuance, and the continued roll
off of the Fed's balance sheet will cause financial conditions to tighten in the second half of this year and thus slow
down the pace of future rate hikes. These factors, along with ongoing concerns about global trade, the potential for
increased volatility sparked by the upcoming US midterm elections, and a shift toward less accommodative monetary
policy by the European Central Bank, may cause the Fed to move more gradually. However, if we do not see signs of
increased financial market tightening over the next 3-4 months, we think the Fed will move forward with two more rate
hikes before year-end.
■ We are forecasting GDP growth of about 2.5%-3.0% in 2018, which is in line with the Fed's forecast and the market
consensus. This would equate to an increase over 2017 GDP growth of 2.3%. Overall, economic data remains
favorable but predictive economic indicators suggest that economic growth is unlikely to accelerate in the second half
of the year. Although the consensus estimate for second quarter GDP growth is 4.0%, economic growth is expected
to decelerate in the current and fourth quarter to 2.8% and 2.7%, respectively.
■ The Treasury yield curve continued to flatten in June. At month-end, the 2-year Treasury yield was up ten basis points
to 2.52%, while the 10-year Treasury yield was essentially unchanged at 2.86%. The spread between 2- and 10-year
Treasury yields narrowed to just 33 basis points at month-end. Over the past 20 years, the average spread between 2•
and 10-year Treasuries has been about 140 basis points, with a median spread of roughly 150 basis points. We
believe ongoing normalization of the Fed's balance sheet, along with increased issuance by the Treasury to fund the
growing fiscal deficit, will help promote a steeper yield curve in the second half of this year.
iCjjj � Employment
Nonfarm Payroll (000's) Unemployment Rate
350 12.0%
11.0% Underemployment Rate(US)
300 10 0°/ —Unemployment Rate(U3)
'n
0 250 9.0%
0
200 8.0%
o
u 150 6.0%
0 100 5.0%
f
4.0%
50
3.0%
0 2.0%
�41 `1, 1 4"a 4d. ''ta '�a �� 41a, "Oo. "�o. 1%4 60a 44, 14% `.1, 1°c 41e. �00.
16, 76, 76 )) 7p l> 7j )B ly lb. Js 16 1) 1� yj 7> )B 78
Source:US Department of Labor Source:US Department of Labor
The pace of hiring remained solid in June with non-farm payrolls increasing by 213,000, modestly above the 195,000 consensus
estimate. The prior two months were also revised higher by a net 37,000. On a trailing three and six-month basis, payrolls increased by
211,000 and 215,000, respectively. The unemployment rate ticked higher by 0.2% to 4.0% and the labor force participation rate also
increased by 0.2% to 62.9% as more people entered the workforce. A broader measure of unemployment called the U-6, which includes
those who are marginally attached to the labor farce and employed part time for economic reasons, increased by 0.2% to 7.8%. The
average workweek remained unchanged at 34.5 hours. Average hourly earnings increased by 0.2% for the month and 2.7% on a year-
over-year basis, a tenth lower on a month-over-month basis and unchanged on a year-aver-year basis from the prior month.
Inflation
Consumer Price Index (CPI) Personal Consumption Expenditures
as% (PCE)
CPI YOY%Change a.s
PCE Price Deflator YOY%Change
3.5% Core CPI VOY%Change 3.0%
PCE Core Deflator VOV%Change
2. % y 2.5%
e
CLpi 2.0°/a v 2.0
1.5%
i 1.5%
O p
1.0% 1.0%
0.5% 0.5%
0.0% 0.0%
ltl)�s 11a1,7e oan7s 41
0
^7i 11�*,� 11�a7� o%" 1a1,7e ltk79 'fah s 1$ s 'I'61,70 ,7> 4ai711 '511,u7i +a"D �.78 4ai7a
Source:US Department of Labor Source:US Department o/Labor
The Consumer Price Index(CPI) was up 2.9% year-over-year in June, up from 2.8% in May. Core CPI (CPI less food and energy) was up
2.3% year-over-year in June, up from 2.2% in May. The Personal Consumption Expenditures (PCE) index was up 2.3% year-over-year in
May, versus 2.0% in April. Core PCE (excluding food and energy) was up 2.0% on a year-over-year basis in May, versus 1.8% in April.
Core PCE inflation is now in line with the Fed's 2.0%target.
Consumer
Retail Sales YOY % Change Consumer Confidence
7.0% 135
6.0
130
125
5.0% 120
w
4.0% 115
110
O3.0% y 105
2.0% 100
95
1.0% 90
0.0% 85
°� Se'Q� 16' NO -/s 7s��"�y ��7>4f� 7>��
s s s > > > > s ys s
So..US Department of Commerce Source:The Conference Board
On a year-over-year basis, retail sales were up 6.6% in June, versus up 6.5% year-over-year in May. On a month-over-month basis, retail
sales increased 0.5% in June, in line with the consensus forecast, following an upwardly revised increase of 1.3% in May. The Consumer
Confidence Index remains strong but eased slightly to 126.4 in June from 128.8 in May. Ongoing strength in the labor market continues to
support consumer confidence and spending trends.
Economic Activity
Leading Economic Indicators (LEI) Chicago Fed National Activity Index
(CFNAI)
1.4% oso
z%
0.40
1.0% „
c 0.20
0.8% a
t o.00
0.6% c
i 0.4% e� -020
0.2% 1 V -0.ao
V Nor N
0.0% O -0.60 O✓41.7s 10A76 0�76 �a^71 ', 1%,7j Oag7j �a^7,6 �776 76 _'OO 76' Qa470 A 4?i7j 14%7j reA�� OaC1�1 4al7e 'e
Source:The Coulereuce Board Source:FWd W Reserve Bank of Chicago
The Index of Leading Economic Indicators (LEI) rose 0.5% in June, following no change in May. According to the Conference Board, the
index points to solid US economic growth. All components of the index, except building permits, were positive in June. The Conference
Board does not expect a slowdown in economic growth over the near-term. The Chicago Fed National Activity Index(CFNAI) increased to
+0.43 in June from -0.45 in May. On a 3-month moving average basis, the index increased to 0.16 in June from 0.10 in May. The CFNAI
suggests that the economy picked up in June, and points to ongoing growth.
Housing
Housing Starts S&P/CaseShiller20 City Composite Home
Price Index
1800 7.5%
Y 1600 Multi Family Housing Starts
Single Family Housing S arts 7 0%
0
1400
f 1200 u 6.5%
m w
0 1000 r
w
H 6.0%
800 e
m 600 p 5.5%
m Y
v 400
5.0
200
0 4.5
-10• -0/1 4� "ate 90 i, 4f "ate "90,
70 16. is 7> l� 7j 7> �•11 Q7e 16, 6 •lam 1) 1) 7? 19
Source:US Census Bureau Source:S&P
Total housing starts dropped 12.3% in June. Single-family starts fell 9.1% while multi-family starts fell 19.8%g. Permits also fell 2.2%g in the
month. According to the Case-Shiller 20-City home price index, home prices were up 6.6% year-aver-year in April, versus 6.7% in March.
Home price appreciation has recently softened.
Manufacturing
Institute of Supply Management Industrial Production
Purchasing Manager Index s.0%
sz
60 Expanding 4.0%
3.0%
m
56 m 2.0%
L
54 1.0%
52 p 0.0%
Y
50 -1.0%
48 -20%
Contracting
as -ao%
11�47s 12-4,s 10-117
61
1%17i ,�i 12-,47i 10447� aim e '�n,7e "%10 1%4 s 6%76 4e1,71> `t 7i 'a 1%1_7i 4101,71P
a71a "%7111
Source:Insidute/or Supply Management Source:Federal Reserve
The Institute for Supply Management (ISM) manufacturing index increased to 60.2 in June from 58.7 in May. A reading above 50.0
suggests the manufacturing sector is expanding. The Industrial Production index was up 3.8% year-over-year in June versus up 3.2% in
May. On a month-over-month basis, the index increased 0.6% in June, in line with expectations, following a downwardly revised decline of
-0.5% in May. A rebound in manufacturing, most notably motor vehicle production, drove the increase in June. Capacity Utilization was
78.0% in June, up slightly from 77.7% in May, indicating there is still excess capacity for growth.
Gross Domestic Product (GDP)
Gross Domestic Product (GDP)
6.0%
Personal Consumption Expenditures 2.2% 1.5% 2.8% 0.6% 5.0%
Gross Private Domestic Investment 0.6% 1.2% 0.8% 1.2% 4.0%
3.0
Net Exports and Imports 0.2% 0.4% -1.2% 0.0% 2,0%
1.0%
Federal Government Expenditures 0.1% 0.1% 0.2% 0.1%
0% 4
State and Local(Consumption and Gross -1 0% GDP GOG%change
Investment) -0.2% 0.0% 0.3% 0.1% -GDPVDY%Change
-20%
Total 3.1% 3.2% 2.9% 2.0% 4101, %', 4'a,; Soo 410, Soq %11 % 44, 1%4 �a� %1' yap
7 2 �? 73 79 79 7S 7S 7S �S �� �� �B
Source: US Department of Commeme Source: US Department of Commerce
First quarter GDP growth was revised down again to 2.0% from 2.2%, according to the third estimate which was below expectations due
to higher than expected inflation. Consumer spending was more subdued in the first quarter versus prior quarters but was still favorable.
GDP growth is expected to be stronger in the second quarter and second half of the year, compared with the first quarter. We expect
overall GDP growth of 2.5%-3.0%for the full year, driven by ongoing labor market strength and a tailwind from tax reform.
Bond Yields
US Treasury Note Yields US Treasury Yield Curve
4.0% 4.0%
3.5% — z-Year 3.5% Jun-18
bYear Mar-1B
3.0% — 10-veer 3.0% �Jurnt]
2.5% 2.5%
c 2.0% 9 2.0%
Y S
1.5% 1.5%
1.0% 1.0%
0.5% 0.5%
0.0% 0.0%
`fi'° Ilk,s ooQ's ', 7i �O'0. a•G i 'e 'e 70), 3°
So. :Bb .bey Source:Bloomberg
On a year-over-year basis, the Treasury yield curve has flattened. Rate hikes by the Federal Reserve have put upward pressure on
shorter-term rates, while supply and demand imbalances, technical factors, and subdued inflation expectations have kept longer rates
relatively contained. The yield curve is currently quite flat by historical standards.
C11,k
SECTION 2
Account Profile
GWI 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 ICE BAML 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.
AW Compliance
Orange County Sanitation District Long Term
y' June 30,2018
COMPLIANCEPOLICY
Assets managed by Chandler Asset Management are in full compliance talth state lawand with the investment policy
Category Standard Comment
Treasury Issues 5 years maxmaturity; Minimum allocation of 10% Complies`
U.S.Agencies 20% max issuer; 5 years max maturity Complies
Supranabonal "AA" rated or better by a NRSRO; 30%maximum; 5 years max maturity; USD denominated senior unsecured Complies
unsubordinated obligations issued or unconditionally guaranteed by IBRD IFC or IADB
Corporate(MTNs) "A" rated or better long term debt by a NRSRO; 30%maximum; 5%max issuer; 5 years max maturity, Issued Complies
by corporations organized and operating within the U.S.or issued by depository institutions licensed by the U.S.
Municipal Securities "A" rated or higher by a NRSRO; 10%maximum; 5%maxissuer; 5yearsmaxmaturity Complies
Asset Backed/CMOs/Mortgage- "AA" rated or better bya NRSRO; "A"or higher issuer rating bya NRSRO; 20% maximum; 5% max issuer Complies*
backed - (excluding ovt a enc /mbs ;5 years max maturi
Negotiable CDs "A" rated or better longterm debt by a NRSRO; or"A-1"/highest short term rating bya NRSRO; 30% Complies
maximum; 5%max issuer;5 years max maturity
Certificates of Deposit 5%maxissuer; 5 years max maturity; Secured/collateralized Complies
Bankers Acceptances A-1 rated orequivalent short term rating by aNRSRO; 40% maximum; 5% max issuer; 180 days max maturity Complies
Commercial Paper A-1 rated or equivalent short term rating bya NRSRO; "A"or better long term debt issuer bya NRSRO; Issued Complies
by a domestic corporation organized and operating in the US with AUM >$500million; 25%maximum; 5%
max issuer, 270 days max maturity
Mutual Fund & Money Market Highest rating or"AAA" rated by two NRSROs;SEC registered adviser with AUM>$500 million and Complies
Mutual Fund experience greater than 5 years; 10%per one Mutual Fund; 20%max per issuer on Money Market Mutual
Funds; 20% max of the District's surplus money
Repurchase A reements 102%collateralization Complies
Reverse Repurchase A reements 5% maximum, 90 days max maturity Complies
LAIF Not used by investment adviser Complies
OCIP Not used by investment adviser Complies
A Duration Not to exceed 60 months - 80%to 120%of the benchmark Complies
Max Per Issuer 5%of ortfolio (except Su ranationals, U.S. Government,Agencies, Mutual Fund Com lies
Maximum Maturity5 ars maximum maturityCom lies'
'The portfolio has twenty-two(22)securities with maturities greater than 5 years including four(4)CMOs, seventeen(17)MBS and one(1)treasury. All securities were Inherited from the preNous
manager and complied at time of purchase.
Cil'tJ Portfolio Characteristics
Orange County Sanitation District Long Term
6/30/2018 3131/2018
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.70 2.79 2.72
Modified Duration 2.56 2.43 2.41
Average Purchase Yield n/a 2.13% 1.96%
Average Market Yield 2.74% 2.68% 2.42%
Average Quality" AAA AA/Aa1 AA+/Aa1
Total Market Value 460,812,924 412,803,448
*ICE BAML 1-5 Yr US Corp/Govt 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, Asset Backed, Supranational, Commercial Paper, and
Corporate sectors of the market to keep the portfolio positioning and structure consistent with Chandler objectives. The
purchased securities ranged in maturity from May 2018 to June 2023. Ten securities matured during the period, in
additional to net contributions of$46.8 million, to fund the new holdings in the portfolio.
Sector Distribution
Orange County Sanitation District Long Term
June 30, 2018 March 31, 2018
ASS ASS
7.1% 5.7
US Treasury US Treasury
31.5% 31.6%
Agency Agency
22.3% 22.7%
CMO
Commercial CM
Paper 0.5%
3.7%
Foreign Commercial
Corporate Paper
US Corporate Foreign 5.1
22 2% Corporate
Money Market US Corporate 1.1
9.9
Mortgage Pass Fund FI Mortgage Pass Money Market
Supranational 2.3% Supmnational Fund FI
7.0% 03;� 7.8% Oqo� 2.7%
Negotiable CD unicipal Bonds Negotiable CD Municipal Bonds
1.3% 1.0% 1.4% 1.1%
The sector allocation remained stable. The two largest changes were the 2.3% increase in US Corporate exposure, to
22.2% of the portfolio, partially offset by the 1.4% decline in Commercial Paper, to 3.7% of the portfolio.
UIL Issuers
Orange County Sanitation District Long Term —Account #10268 As of 6/30/2018
Issue Name Investment Type % Portfolio
Government of United States US Treasury 31.46%
Federal National Mortgage Association Agency 10.24%
Federal Home Loan Bank Agency 6.63%
Federal Home Loan Mortgage Corp Agency 5.39%
Inter-American Dev Bank Supranational 3.72%
First American Govt Obligation Fund Class-Z Money Market Fund FI 2.31%
Intl Bank Recon and Development Supranational 2.13%
Honda ABS ABS 2.12%
MUFG Bank Ltd/NY Commercial Paper 1.94%
Toyota Motor Corp Commercial Paper 1.73%
Wells Fargo Corp US Corporate 1.72%
John Deere ABS ABS 1.57%
Berkshire Hathaway US Corporate 1.41%
American Express ABS ABS 1.34%
Bank of New York US Corporate 1.32%
Chubb Corporation US Corporate 1.32%
PNC Financial Services Group US Corporate 1.30%
Bank of Nova Scotia Houston Negotiable CD 1.28%
IBM Corp US Corporate 1.22%
International Finance Corp Supranational 1.16%
JP Morgan Chase&Cc US Corporate 1.14%
Toyota ABS ABS 1.12%
Deere &Company US Corporate 1.09%
General Electric Cc US Corporate 1.08%
US Bancorp US Corporate 1.08%
Qualcomm Inc US Corporate 1.07%
HSBC Holdings PLC Foreign Corporate 0.96%
Nissan ABS ABS 0.89%
Honda Motor Corporation US Corporate 0.87%
Eli Lilly&Cc US Corporate 0.87%
UIL Issuers
Orange County Sanitation District Long Term —Account #10268 As of 6/30/2018
Issue Name Investment Type % Portfolio
Apple Inc US Corporate 0.86%
Wal-Mart Stores US Corporate 0.85%
Occidental Petroleum Corporation US Corporate 0.71%
General Dynamics Corp US Corporate 0.69%
Morgan Stanley US Corporate 0.66%
Exxon Mobil Corp US Corporate 0.64%
Microsoft US Corporate 0.64%
Oracle Corp US Corporate 0.62%
Port Authority of New York and New Jersey Municipal Bonds 0.55%
HSBC Holdings PLC US Corporate 0.54%
ChevronTexaco Corp US Corporate 0.53%
Federal Home Loan Mortgage Corp CMO 0.41
New York City Transitional Finance Authority Municipal Bonds 0.31
Federal National Mortgage Association Mortgage Pass Thru 0.28%
University of California Municipal Bonds 0.09%
Federal National Mortgage Association CMO 0.05%
GNMA Mortgage Pass Thru 0.04
AMRESCO Residental Securities Corp Mortgage Pass Thru 0.03%
Small Business Administration ASS 0.01
SLIM Corp ASS 0.01
GNMA CMO 0.00%
Federal Home Loan Mortgage Corp Mortgage Pass Thru 0.00%
Total 100.00%
Quality Distribution
Orange County Sanitation District Long Term
June 30, 2018 vs. March 31, 2018
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00
AAA AA A <A vF:
•6/30/2018 •3/31/2018
AAA AA A <A NR
O6/30/18 12.7% 63.3% 14.4% 0.7% 9.0%
03/31/18 14.5% 62.5% 13.3% 0.7% 8.9%
Source:S&P Ratings
Duration Distribution
Orange County Sanitation District Long Term
Portfolio Compared to the Benchmark as of June 30, 2018
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
0-0.25 0,25-0.50 0.50-1 1 -2 2-3 3-4 4-5 5+
•Orange County Sanitation District Long Tenn •ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index
0-0.25 0.25-0.50 0.50- 1 1 -2 2- 3 3-4 4- 5 5+
Portfolio 8.4% 3.8% 10.6% 18.3% 20.5% 19.5% 16.6% 2.3%
Benchmark* 0.0% 0.0% 1.4% 33.0% 29.4% 21.8% 14.4% 0.0%
*ICE BAML 1-5 Yr US Corp/Govt Rated AAA-
A Index
The duration of the portfolio was little changed, currently 2.43 compared to 2.41 at the end of the prior quarter. The
Chandler team anticipates moderately increasing the duration of the portfolio in the coming quarter due to our internal
outlook on monetary policy and the year to date adjustment in interest rates.
GI Investment Performance
Orange County Sanitation District Long Term
Period Ending
June 30, 2018
Total Rate of Return
Annualized Since Inception
November 30,2014
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
-0.20%
-0.40%
12 months 2 years 3 years 5 years 10 years Since Inception
e Orange County Sanitation District Long Tenn
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since
IOpeptlOp
Orange County Sanitation District Long Term 0.26% 0.10% 0.15% 0.92% N/A N/A 0.89%
ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index 0.17% -0.22% -0.20% 0.72% N/A N/A 0.78%
Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes
interest earnings, realized and unrealized gains and losses in the portfolio.
UIL Compliance
CA` Orange County Sanitation District Liquid
June 30,2018
COMPLIANCE •
Assets managed by Chandler Asset Management are in full compliance wth state lawand nlih the investment policy
Category Standard Comment
Treasury Issues 1 year max maturity; Minimum allocation of 10% Complies
U.S.Agencies 20%max issuer; 1year max maturity Complies
Supranatioral "AA" rated or better by a NRSRO; 30%maximum; l year max maturity, USD denominated Complies
senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD,
IFC or IADB
Corporate (MTNs) "A" rated or better long tens debt bya NRSRO; 30% maximum;5%max issuer, 1 year max Complies
maturity; Issued bycorporations organized and operating within the U.S.or issued by
depository institutions licensed by the U.S.
Asset Backed/CMOs "AA" rated or better by a NRSRO; "A"or higher issuer rating by a NRSRO; 20%maximum; Complies
5%max issuer 1 year max maturity
Negotiable CDs "A" rated or better long term debt by a NRSRO;or"A-1"/highest short term rating by a Complies
NRSRO*, 30%maximum, 5%max issued year max maturity
Certificates of Deposit 5%max issuer; l year max maturity; Secured/collateralized Complies
Banker's Acceptances A-1 rated or equivalent short tens rating by a NRSRO; 40%maximum; 5%max issuer; 180 Complies
days max maturity
Commercial Paper A-1 rated or equivalent short term rating by a NRSRO; "A"or better long tens debt issuer by a Complies
NRSRO; Issued by a domestic corporation organized and operating in the US with AUM>
$500million; 25%maximum; 5% max issuer; 270 days max maturity
Mutual Fund & Money Market Mutual Fund Highest rating or"AAA"rated by two NRSROs;SEC registered adviser with AUM>$500 Complies
million and experience greater than 5 years; 10%per one Mutual Fund; 20%max per issuer
on Money Market Mutual Funds; 20%max of the District's surplus money
Repurchase A reements 102%collateralization Complies
Reverse Repurchase Agreements 5%maximum,90 days max maturity Complies
LAIF Not used by investmentacimser Complies
OCIP Not used by investment adviser Complies
Prohibited Municipal Securities Com lies
Prohibited Mortgage Securities Complies
Avg Duration Not to exceed 180 days; Max duration of 112 year Complies
Max Per Issuer 5%of portfolio(except Su renationals, U.S.Government,Agencies,Mutual Fund Complies
Maximum Maturity 1 year maximum maturity Complies
Cil'tJ Portfolio Characteristics
Orange County Sanitation District Liquid
6/30/2018 3/31/2018
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 0.15 0.15 0.18
Modified Duration 0.14 0.15 0.18
Average Purchase Yield n/a 1.94% 1.65%
Average Market Yield 1.80% 1.96% 1.77%
Average Quality" AAA AAA/Aaa AAA/Aa1
Total Market Value 156,065,422 92,872,260
*ICE BAML 3-Month US Treasury Bill Index
**Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.
Multiple securities were purchased across the Treasury, Agency, Supranational, Negotiable CD, Commercial Paper, and
Corporate sectors of the market to keep the portfolio aligned with the strategy objective. The purchased securities
ranged in maturity from May 2018 to June 2019. One security was called, eighteen matured, in addition to a net$62.5
million contribution into the portfolio to fund the new holdings in the portfolio.
Sector Distribution
Orange County Sanitation District Liquid
June 30, 2018 March 31, 2018
Agency Agency
15.5% 14.3%
Commercial Commercial
Paper US Treasury Paper
6.4% 40.9% 8.2%
Money Market
Fund FI
3.0%
US Treasury Negotiable CD
1 Money Market
Supranational Fund FI
5.1
20.6%
US Corporate US Corporate Negotiable CD
5.2% 12.3% Supranational 1.1%
2.7%
The sector allocation evolved as the Chandler team reinvested both the maturing securities and the new cash added to
the portfolio. The Agency sector continues to trade right on top of Treasury Bill and Notes, thus the Treasury allocation
is currently higher than the historical experience. The Chandler team will be looking to opportunistically expand the
exposure to spread product in the coming quarter.
UIL Issuers
Orange County Sanitation District Liquid —Account #10282 As of 6/30/2018
Issue Name Investment Type % Portfolio
Government of United States US Treasury 58.26%
Federal Home Loan Bank Agency 15.52%
International Finance Corp Supranational 4.17%
First American Govt Obligation Fund Class-Z Money Market Fund FI 3.03%
MUFG Bank Ltd/NY Commercial Paper 1.97%
Bank of Montreal Chicago Negotiable CD 1.91
Deere 8 Company US Corporate 1.61
Svenska Handelsbanken NY Negotiable CD 1.30%
Royal Bank of Canada Negotiable CD 1.29%
Toronto Dominion Holdings Negotiable CD 1.29%
HSBC Holdings PLC US Corporate 1.05%
Inter-American Dev Bank Supranational 0.97%
General Electric Cc Commercial Paper 0.96
Honda Motor Corporation Commercial Paper 0.96
Toyota Motor Corp Commercial Paper 0.96
Rabobank Nederland NV NY Commercial Paper 0.96
Praxair US Corporate 0.77%
Bank of America Corp US Corporate 0.66%
JP Morgan Chase&Cc US Corporate 0.65%
Westpac Banking Corp NY Negotiable CD 0.65%
Bank of New York Commercial Paper 0.64%
Boeing Company US Corporate 0.45%
Total 100.00%
Quality Distribution
Orange County Sanitation District Liquid
June 30, 2018 vs. March 31, 2018
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
1
0.00%
AAA AA A <A vF:
•6/30/2018 •3/31/2018
AAA AA A <A NR
06/30/18 67.5% 26.7% 5.2% 0.0% 0.6%
03/31/18 56.9% 35.2% 8.0% 0.0% 0.0%
Source:S&P Ratings
Duration Distribution
Orange County Sanitation District Liquid
Portfolio Compared to the Benchmark as of June 30, 2018
120.00%
100.00%
so.00%
60.00%
40.00% —
20.00%
0.00%
0-0.25 0.25-0.50 0.50- 1 1 -1.5 1.5-2 2-2.5 2.5-3 3+
•Orange County Sanitation District Liquid •ICE BAML 3-Month US Treasury Bill Index
0-0.25 0.25-0.50 0.50- 1 1 - 1.5 1.5-2 2 -2.5 2.5-3 3+
Portfolio 87.6% 7.2% 5.1% 0.0% 0.0% 0.0% 0.0% 0.0%
Benchmark* 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
*ICE SAW 3-Month US Treasury Bill Index
The duration of the portfolio contracted slightly, currently 0.15 compared to 0.18 at the end of the prior quarter. A large
withdrawal is forecast for the end of July, and as the cash flow forecast of the District evolves the Chandler team will
optimize the asset allocation of the Liquidity portfolio.
GI Investment Performance
Orange County Sanitation District Liquid
Period Ending
June 30, 2018
Total Rate of Return
Annualized Since Inception
November 30,2014
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
-F!Ili
0.00%
12 months 2 years 3 years 5 years 10 years Since Inception
e Orange County Sanitation District Liquid ICE BAML 3-Month US Treasury Bill Index
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since
Inception
Orange County Sanitation District Liquid 0.45°% 1.35% 0.96% 0.76% N/A N/A 0.67%
ICE BAML 3-Month US Treasury Bill Index 0.45% 1.36% 0.92% 0.68% N/A N/A 0.57%
Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes
interest earnings, realized and unrealized gains and losses in the portfolio.
GIL Compliance
CAI I OCSD Lehman Exposure
June 30,2018
COMPLIANCE •
Assets managed by ChandlerAsset Management are in full compliance with state lawand Wth the investment policy
Category Standard Comment
Treasu Issues 5 years maximum maturityComplies
Supranational "AA" or better by 1 of 3 NRSROs; 30% maximum; 5% max; 5 years maturity; Includes only: IADB, Complies
IBRD and IFC erCGC
U.S.Agencies 20% max issuer, 5 years maximum maturityComplies
U.S. Corporate MTNs "A" or better Ion term ratingb 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity Com lies*
Municipal Securities "A" or higher b 1 of 3 NRSROS 10% maximum; 5% max issuer 5 years maximum maturity Complies
Asset Backed/CMOs/ "AA" or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; 20% maximum; 5% Complies
Mortgage-backed max issuer(excluding MBS/ ovt agency); 5 years max maturity
Negotiable CDs "A" or better on its long term debt by 1 of 3 NRSROs ; "A1/P1" or highest short term ratings by 1 of 3 Complies
NRSROs; 30% maximum; 5% max issuer; 5 years max maturity
CDs/TDS 5% max issuer; 5 years max maturity Complies
Banker's Acceptances A-1, or equivalent highest short term rating by 1 of 3 NRSROS; 40% maximum; 5% max issuer; 180 Complies
days max maturity
Commercial Paper A-1, or equivalent by 1 of 3 NRSROS; "A" or better by 1 of 3 NRSROs, if long term debt issued; 25% Complies
maximum; 5% max issuer 270 days max maturity
Money Market Fund Highest ratin b 2of3NRSROs; 20% maximum; 10% max issuer Complies
Repurchase A reements 102% collateralization Complies
Reverse Repurchase 5% maximum, 90 days max maturity Complies
Agreements
LAIF Not used b investment adviser Complies
A Duration Not to exceed 60 months - 80%to 120%of the benchmark Com lies
Maximum Maturi 5 years maximum maturity Com lies
"Account holds $2 million face value(cusip 525ESCOY6)and$600,000 face value(cusip 525ESC1 137)of defaulted Lehman Bros Holdings that were purchased by the predous
manager. Complied at time of purchase.
CII'tj Portfolio Characteristics
OCSD Lehman Exposure
6/30/2018 3/31/2018
Portfolio Portfolio
Average Maturity (yrs) 18.32 19.60
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 104,921 129,921
CA
SECTION 3
Consolidated Information
CII'tj Portfolio Characteristics
Orange County Sanitation District Consolidated
6/30/2018 3/31/2018
Portfolio Portfolio
Average Maturity (yrs) 2.13 2.26
Modified Duration 1.85 2.00
Average Purchase Yield 2.08% 1.90%
Average Market Yield 2.50% 2.30%
Average Quality AA+/Aa1 AA+/Aa1
Total Market Value 616,983,268 505,805,628
Sector Distribution
Orange County Sanitation District Consolidated
June 30, 2018 March 31, 2018
ASS ABS
53% 4.7%
US Treasury
33.3%
US Treasury
38.2% Agency Agency
20.6% 21.1%
CMO CMO
0.3% 0.4
Commercial Commercial
Paper Paper
4.4% 5.7%
Foreign
Corporate Foreign
0.7% Corporate
Money Market 0.9/o
Fund FI US Corporate
US Corporate 2.5% 18.5% Money Market
17 9% Mortgage Pass Mortgage Pass Fund FI
Supranational Thru Suprenational Thru 5.g%
6.5% 0.3% 6.9% 0.3%
Negotiable CD Municipal Bonds Negotiable CD unicipal Bonds
2.6% 0.7% 1.4% 0.9%
CA
SECTION 4
Portfolio Holdings
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 6/30/2018
ABSPurchase D:te Cost Value Mint Price Market Value %of Pon. Moi Maturity
CUSIP Security Description ParValui Book Yi ld Book Value Min WM Accrued Int. Gain/Loss Fitch Duration
43814TAB8 Honda Aura Receivables 201]-1 A2 386,803.19 03I21I 38699 386. 5 2 Asa
1.420% DuW 1,43% 386798,97 2,56% 152,57 (540,9 ) AAA 0112
47787XA133 John Deere Owner Trust 2017-A A2 536,117.15 0ZI2212017 536,115,01 9983 535,201 0,12% Aaa/NR 1.29
1.500% Due 10/1512019 1.50% 536,116.10 2.52% 357.41 (908.87) AAA 0.17
654747AB0 Nissan Auto Receivables 2017-A A2A 632,612.77 03212017 632,609.54 9973 830,914.71 0.14% Aim/NR 1.55
1.470% Due01/152020 1,47% 632,610.99 2,57% 413.31 (1,696.28) AAA 0.24
43914PAB6 Honda Auto Receivables Owner T 17-3 A2 747,911.78 0925201] 747,845.29 99.58 744,806.41 0.16% NR I AAA 1.56
1.570% Due01212020 1.58% 747,866.95 2.63% 424.02 (3,060.53) AAA 0.39
4]]88MAC4 John Deere Owner Trust 201&A A3 1,194,02772 OMM016 1,193,839.78 99.55 1,188,642A0 0.26% AaaI NR 1.79
1.360% Due 04/152020 1.37% 1,193,946.05 2.62% ]21.]2 (6,303.65) AAA 0.36
4381401 Honda Auto Receivables 2016-2 A3 1,025,224.01 0524/2016 1,025,204.12 99.47 1,019,771.56 0.22% Aaa I NR 1.79
1.390% Due04/15/2020 1.40% 1,025,214.82 2.67% 633.36 (5,443.26) AAA 0.41
4P88BAB0 John Deere Owner Trust201]-BA2A 603,158.69 07/11/2017 603,106.28 99.62 600,869.41 0,13% Aaa/NR 1.79
1.590% Due04/152020 1.60% 603,124.48 2.59% 426.23 (2,255.07) AAA 0.38
89238BAB8 Toyota Auto Receivables Owner 2018-A A2A 5,170.000.00 012mola 5,169,471.63 99.63 5,150,658.87 1.12% Aim/AAA IN
2.100% Due10/152020 2,12% 5.169,552.38 2,62% 4.825.33 (18,893.51) NR 0.73
4]]88CAB8 John Deere Owner Tru502018-AA2 1,800,000.00 03/16201a 1,]96,343.]5 99.71 1.795,825.80 0.39% Aai IN
2A20% Due 10/152020 2.59% 1,]96,]44.38 2.73% 1,936.00 (918.58) AAA 0.78
43814RAC0 Honda Auto Receivables 20164 A3 2,875,000.00 021072018 2,843,442.38 98.93 2,844,177A3 0.62% NR/AAA 2.47
1.210% Due 121182020 2.58% 2,847,738.82 2.75% 1,256.22 (3,561.69) AAA 0.70
65418VAD9 NAROT 2016-B A3 1708,96206 0ZHM018 1,695,2]].01 99.07 1,693,130.06 0.37% Aaa I NR 2.55
1,320% Due01/15/2021 1.87% 1,69],035,78 2.74% 250.65 (3,90572) AAA 0.66
83162CLJO Small Business Administration 2001-200 39,115.36 03/062001 39,115,36 102.70 40.171.40 0,01% Asia I AA- 2.87
6.340% Due 0310112021 6.34% 39,115,36 5.56% 826.64 1,056.04 AAA 1.26
65417UAD2 NAROT 2015-A4 1,800.000.00 OV092018 1,788,750.00 99.42 1,789,484.40 0.39% Aaa/NR 3.21
1.500% Due 09/15/2021 1,86% 1789,935.11 2,63% 1.200.00 (450.71) AAA 0.52
43914PAC4 Honda Auto Receivables Owner T 17-3 A3 3,090,000.00 05282018 3,040,994.53 98.40 3,040,593.99 0.66% NR I AAA 3.23
1.790% Due09202021 2.78% 3,041,0]].66 2.88% 1,997.34 (483.67) AAA 1.48
4]]88BAD6 John Deere Owner Trust 2017-B A3 675,000.00 0]/11201] 674,950.59 98.55 665,193.60 0.14% Aaa/NR IN
1.820% Due 10/152021 1.83% 674,961.68 2.88% 546.00 (9,768.08) AAA 1.38
4A88CAC6 John Deere Owner Trust 2016-B A4 1,w,000.00 02/212018 1,339,903.65 99.49 1,333,111.03 0.29% Aaa I NR IN
2.660% Due 04/18/2022 2.68% 1,339,911.50 2.95% 1,58 A8 (6,800.47) AAA 1.05
43814UAG4 Honda Auto Receivables 2018-2 A3 1,710,000.00 05222018 1709,962,72 100.12 1,712.103.30 0.37% NRIAAA 3.88
3.010% Due0511812022 3.03% 1,709,963.54 2.97% 1,858.68 2,139.76 AAA 2.25
02581AAJ3 American Express Credit 2017-1 6,270.000.00 Various 6,174,085.16 98.53 6,1]],542.58 1.34% Asia/NR 4.21
1.930% Due 0911512022 373% 6,174,81141 3,68% 5.378.27 2.731.17 AAA 0.85
78445JAA5 SLMA 2008-9 A 28,075.80 08222008 27,961.89 101.91 28,612.06 0.01% Baa3/A 4.82
3.866% Due 04252023 3.95% 28,038.37 3.28% 201.99 573.68 B 3.34
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 6/30/2018
Purchase Date Cost Value Mkt Price Market Value %of Port. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yi a Id Book Value Mkt YTM Accrued Int, Gain/Loss Fitch Duration
47788NADO John Deere Corner Trust 2016-B A6 1,151,000.00 06/27/2018 1,131,936.56 98.33 1,131,788.66 0.25% Asp/NR 4.88
1A90% Due 05/15Y023 2.19% 1,131,957,97 2,65% 76222 (169,31) AAA 145
32,557,709.18 32,508,862.64 7.06% Aaa IAAA 2.98
Total ABS 32,783,008.53 2.M% 32,566,522.32 2.91% 25,752.14 (57,659.68) Aaa 0.91
313385 9 FHLB Discount Note 9,000,000.00 0mi)9 018 8,987,078.00 99.87 8,988,001.00 1.95% P-1/A-1+ 0.07
1.846% Due0712712018 1,87% 8,988,001.00 1,87% 0.00 0.00 F-1+ 0.07
3135GOG72 FNMA Note 5,000,000.00 12/18/2015 4,963,950.00 99.55 4.977,395.00 1.08% Ass/AA+ 0.46
1.125% Due12/14Y018 1.37% 4,996,504.78 2.13% 2,656.25 (17,109.78) AAA 0.45
3133782M2 FHLB Note 7,MO,000.00 Various 7,589,190.00 99.49 7,462,110DO 1.63% Aaa/AA+ 0.69
1.500% Due03/08W9 1.14% 7,517,870.57 2.24% 35,312.50 (55,760.67) AAA O.N
3137FADMB FHLMG Note 7,M0,000.00 Various 7,399,650.00 98.48 7,386,04500 1.61% Aaa/AA+ 126
1,250% DuelOMW019 1.61% 7,466,962.15 2.49% 23,177.08 (80,917A5) AAA 1.23
313383HU8 FHLB Note 5,000.000.00 08/13/2015 5,008,950.00 98.37 4,918,635.00 1,07% AsaI AA+ 1.95
1.750% Due0611212020 1.]1% 5,003,61267 2.61% 4,61806 (84,9]]47) NR 1.90
3135GOD75 FNMA Note 5,000,000.00 11/16/2015 4,955,650.00 97.97 4,898,660.00 1.06% Aaa/AA+ 1.98
1.500% Due 06/22/2020 170% 4,980,928,71 2,56% 1,87500 (82,268,71) AAA 1.93
3137EAEKI FHLMC Note 5,000,000.00 Various 4,986,225.00 98.15 4,9W,605D0 1.07% Aaa/AA+ 2.39
1.875% Dua 11/17=0 1.97% 4,988,863.05 2.68% 11,458.33 (81,258.05) AAA 2.30
3135GOF73 FNMA Note 7,00,000.00 Various 7,370,726.00 97.33 7,299,502.50 1.59% Aaa/AA+ 2.42
1.500% Due 11130Q020 1.87% 7,436,954.33 2.65% 9,687.50 (137,451.83) AAA 2.35
3137EAEL9 FHLMC Note 7,MO,000.00 02/ WO18 7,484,475.00 99.23 7,442,535.00 1.63% Aaa I AA+ 2.64
2.375% Due02/1612021 2.45% 7,486,249.29 2.68% 66,796.88 (43,714.29) AAA 2.51
3130A70VS FHLB Note 5,365.000.00 OV17/2016 5,343,32540 96.80 5,193.513.14 1.13% Aaa I AA+ 2.64
1.375% Due OW 021 1.46% 5,353,57546 2.64% 27.253+45 1160.062+32) AAA 2.M
3135GOJ20 FNMA Note 10.000,000.00 Various 10,040,950.00 9676 9,676,490.00 2.11% Area/AA+ IN
1.375% Due 02P26I2021 1,28% 10,023727, 4 2,64% 47.743.06 (347,237.44) AAA 2.57
313379RB7 FHLB Note 4,000,000.00 OMO3 01] 4,030,160.00 97.65 3,905,908.00 0.85% Ass/AA+ 2.95
1.875% Due06111n021 1.67% 4,023,516.06 2.71% 4,166.67 (117,608.06) AAA IM
313500035 FNMA Note 7,MO,000.00 O6/ WO18 7,515,225.00 100.09 7,M6,660D0 1.63% Aaa/AA+ IN
2.750% Due 06Y22/2021 2.68% 7,515,197.U4 2.72% 3,437.50 (8,537.04) AAA 2.M
3135GOS38 FNMA Note 3,OOO,000.00 01/30/2017 2,994,570.00 97.47 2,924,082+00 0.64% Aaa I AA+ 3.52
2.000% Due 01/0512022 2.04% 2,996,126.60 2.76% 29,333.33 (72,044.(50) AAA 3.33
3135GOT45 FNMA Note 5,000.000.00 O&=017 4,972,500.00 96.95 4,847,405.00 1,06% Aaa I AA+ In
1.875% Due 04105/2022 1.99% 4.978,926.38 2.73% 22.395+83 1131.521+38) AAA 3.58
3135GOT96 FNMA Note 5,000,000.00 Various 4,910,990.00 98.19 4,909,615.00 1.08% Area/AA+ 4.M
2.375% Due0111912023 278% 4,915,055.87 2,80% 52.118+05 (5,440+87) AAA 4.24
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 6/30/2018
Poodles.Data Cast Value Mkt Pride Market Value %of Port. MoodyuS&P Maturity
CUSIP Security Description Par Value/Units Book Yi.Id Book Value Mkt YIrM Accrued Int, Gain/Loss Fitch Duration
3137EAEN5 FHLMC Note 5,000,000.00 0612&2018 4,985,600.00 99.62 4,981,125.00 1.08% Asa I AA+ 4.97
2.750% Due O6/192023 2.81% 4,985,615,86 2,83% 7,63839 (4,490,86) AAA 4,61
103,539,214.40 102,225,286.64 22.26% Add/AA+ 230
Total Agency 103,865,000.00 1.88% 103,655,687.06 2.54% M,668.38 (1,430,400.42) Ass 2.20
31398VJ98 FHLMC FHMS KOM A2 900,000.00 11232010 951,046.88 101.52 913,671.90 0.20% Aaa/AA+ 1.57
4.251% Due01Y2512020 3,54% 908,746.97 2,96% 3.188.25 4.924.93 AAA 1.36
3837114NM GNMA Pool#2000-9 14,468.70 01242000 14,468.70 100.41 14,528.61 0.00% Asia/AA+ 11.64
2.585% Due02I162030 2.61% 14,468.70 2.13% 30.26 59.91 AAA 0.03
3133TCE95 FHLMC FSPC E3A 18,276.20 03/11/1998 18,295.33 100.00 18,276.20 0,00% Ass/AA+ 14.14
3.587% Due 08/152032 3.55% 18,284.07 1.96% 54.63 (7.87) AAA 1.42
31397OREO FNMA FNR 20113 FA 235,769.53 1MOg!O10 235,695.86 101.56 239,453.43 0.05% Aaa I AA+ 22.67
2.783% Due 02125/2041 2.79% 235,714.04 2.43% 109.35 3,739.39 AAA 0.11
313WJY35 FHLMC FSPC T58 2A 832,036.37 06/09/2011 942,281.18 112.44 935.520BF, 0,20% Asia I AA+ 25.25
6.500% Due 09/25/2043 5.40% 918,214.51 3.00% 90137 17.306.38 AAA 2.00
2,161,787.95 2,121451.03 0.46%, Asa I AA+ 14.56
Total CMO 2,000,550.80 4.27% 2,095,428.29 2.90% 4:283.86 26,022.74 Are 1.49
Commercial Paper
89233HJA3 Toyota Motor Credit Discount CP 8,000,00000 05/102018 7,936,313.33 99.54 7,963.237.78 1,73% P-1IA-1+ 0.20
2.330% Due O9/10/2018 2.38% 7.963,237.78 2.38% 0.00 0.00 NR 0.19
62479MKF9 MUFG Bank LMMY Discount CP 9,000,000.00 06282018 8,937,870.00 99.33 8,939,580.00 1.94% P-1 (A-1 0.29
2.280% Due 10/152018 2,33% 8,939,580.00 2,33% 0.00 DOD NR 0.29
16,87/,183.33 16,902,817.]8 3.6]% P-1IA-0 0.25
Total Commercial Paper 17,000,000.00 2.35-A 18,902,817.78 2.35% 0.00 0.00 NR 0.25
Foreign Corporate
40428OBF5 HSBC Holdings PLC Note 4,501000.00 Various 4,429,980,00 96.82 4,357,04400 0,96% A2/A 3.52
2,650% Du801105/2022 3,08% 4,436263,50 3,62% 58.30000 (79,219,50) AA- 3.27
4,429,98"' 4,35],044.00 0.96% A21A 3.52
Total Foreign Corporate 4,500,000.00 3.08% 4,436,263.50 3.62% 58,300.00 (79,219.50) AA- 3.27
Money Market Fund FI
31846V557 First Amended Gait Obligation MMKT Class-Z 10,641,340.18 Various 10,641,340.18 1.00 10,641,340.18 2.31% P-1 I A-1+ 0.00
1,77% 10,641,340.18 1,77% 0.00 DOD F-1 ON
10,641,340.18 10,641,340.18 2.31% Aaa IAAA 0.00
Total Money Market Fund FI 10,641,340.18 1.77% 10,641,340.18 1.77% 0.00 0.00 AA 0.00
Mortgage Pass Thru
31381 PDA3 FNMA FN 466397 347A21.12 1210112010 340,391,90 10094 351,2UAO 0.08% Aaa/AA+ 234
3400% Duell/01/2020 380% 346,14391 295% 230.01 5,06089 AAA 221
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 6/30/2018
Purchase Date Cost Value Mut Price Market Value %of Port. Mori Maturity
CUSIP Security Description Par Value/Units Book Yi 0 Id Book Value Mid YTM Accrued Inc, Gain/Loss Pitch Duration
36225CA29 GNMA Pool#G2 80023 20,249.85 OS/OS/1997 20,585.24 102.84 20,825.17 0.00% Aaa I AA+ 8.48
3.230% Due 12Y10Y1026 3.12% 20,346.75 3.29% 56.51 478.42 AAA 3.88
W225CC20 GNMA Pool#G280088 21,620.72 OW1111997 22,093.69 103.60 22,399.15 0.00% Aaa/AA+ am
2.720% Due 06Y W2027 2.58% 21,762.99 3.05% 49.01 636.16 AAA 2.72
31348SWM FHLMC PH 786064 2,110.27 o2/18/2000 2,058.89 102.19 2,156.41 0.00% Aaa I AA+ 9.51
3.447% Due 01/0112028 3.65% 2,092.74 3.64% 6.06 63.67 AAA 4.35
31371NUC7 FNMA FN 257179 19,466.27 12/OS/2011 20,587.49 104.40 20,322+09 0.00% Aaa I AA+ 9.76
4.500% Due 041012028 3.72% 20,136.93 2.97% 73.00 185.16 AAA 3.27
31417YAY3 FNMA Pool#FN MA0022 21.543.58 12/O5/2011 22,784.44 104.40 22.492.29 0.00% Aaa I AA+ 10.76
4.500% Due 04/01a029 3.76% 22,314.60 3.04% 80.79 177.69 AAA 3.39
3138EG6F6 FNMA FN AL0869 13,077.66 12105/2011 13,830.91 104.42 13,655.54 0.00% Aaa/AA+ 10.93
4.500% Due 061 3.77% 13,548.43 3.06% 11.44 107.11 AAA 3.44
03215PFN4 AMRESCO Residential Secunties 1999-1 A 133,743.29 OS/20/2011 100,432.85 98.82 132,15917 0.03% NR I A+ 10.99
3.043% Due 06Y25Y1029 6.81% 113,516.03 3.33% 67.83 18.643.74 BBB 5.71
36225CNW GNMA Poi G280395 8,221.64 03/15/2000 8,147.11 103.43 8,504+00 0.00% Aaa/AA+ 11.01
2.720% Due 04/20/2030 2.79% 8,192.23 3.18% 1864 311.77 AAA 4.32
36225CN28 GNMA Pool#G281M68 66,013.05 03/15/2000 65,342.60 103.48 68,30714 0.01% Aso/AA+ 11.90
2.720% Due 05/20/2030 2.80% 65,747.33 3.18% 149.63 2,559.81 AAA 4.35
31403GXF4 FNMA Pool#FN 748678 2,792.87 OW10/2013 3,002.34 106.56 2,976.04 0,00% Aaa I AA+ 15.27
5.000% Due 10/01/2033 4.16% 2,950.93 3.29% 1164 2511 AAA 4.10
36225DCBB GNMA Pool#G280965 63,517]8 07/19/2004 63,478.09 103.79 65,923.45 0.01% Aaa/AA+ 16.07
2.810% Due07Y10P1034 2.82% 63,496,47 2.83% 14814 2,42698 AAA 4.84
31406XWT5 FNMA Pool#FN 823358 121,982-72 01/11/2006 121,029.75 104.91 127,96T.31 0.03% Add/AA+ 16.60
3.502% Due 02101Y2035 3.57% 121,438.00 3.32% 356.02 6.529.31 AAA 4.59
31406POY8 FNMA Pool#FN 815971 201,925+67 OW10/2013 21 T,0T0.12 107.04 216,146+89 0.05% Aaa/AA+ 16.68
5.000% Due 03/01/2035 4.21% 213,596.04 3.40% 84L36 2,550.85 AAA 4.31
31407BXH7 FNMA Pool#FN 826080 23,059.87 O6/10/2013 24,789.35 107.14 24,705+40 0.01% Aaa I AA+ 17.01
5.000% Due 07M112035 4.22% 24,398.65 3.40% 96.08 306.75 AAA 4.31
31376KT22 FNMA FN 357969 119,508.80 06/1W2013 128,471.94 107.09 127,977.31 0.03% Aaa I AA+ 17.18
5.000% Due 09101/2035 422% 126462.64 3.41% 116.19 1.514.67 AAA 4.32
31403DJZ3 FNMA Pool#745580 119,438.49 06/10/2013 128,396.39 107.11 127,931.28 0.03% Ass/AA+ 17.93
5.000% Due 06101/2036 4.26% 126,454.10 3.42% 497.66 1.477.18 AAA 4.36
31410F4V4 FNMA Pool#FN BM336 229,321.50 OW10/2013 246,520.63 107.09 245,582.69 0.05% Aaa/AA+ 18.02
5.000% Due 07101Y2036 4.25% 242,804.78 3.42% 955.51 2,777.91 AAA 4.34
1,549,013.73 1,601,236.73 0.35% Aaa IAA+ 12.71
Total Mortgage Pass Thru 1,535,515.15 4.11% 1,555,403.55 3.24% 3,764A2 45,833.16 Aaa 3.%
Municipal Bonds
73358WAG9 Port Authority of NY a NJ TE-REV 2,440,000.00 Various 2.507,633.89 10344 2,523.862.80 0.55% Aa3/AA- 1.42
5,309% Due1210112019 4.97% 2449,211A8 2.82% 10,794.97 74,651.62 AA- 1.36
64971Ml New York NY TE-REV 1,400,000.00 10/27/2010 1,400,000.00 102.61 1,436,512.00 0,31% Aa1/AAA 2.34
4.075% Due11N1Y1020 4.08% 1,400,000.00 2.91% 9,508.33 36,512.00 AAA 2.21
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 6/30/2018
Purchase Date Cost Value Mdt Price Market Value %of Port. Moci Maturity
CUSIP Security D....ratio. Par Value/Units Book Yi a Id Book Value Mkt YTM Accrued Int Gain/Loss Fitch Duration
913366EJ5 Univ of California Rots Mad TE-REV 400,000.00 11/09/2010 400,000.00 105.50 421,980.00 0.09% Aa3/AA- 2.88
5,035% Due05/152021 5.04% 400,000,00 3.02% 2,573.44 21,98000 AA- 266
4,307,633.89 4,382,354.80 0.96% Aa2/AA 1.86
Total Municipal Bonds 4,240,000.00 4.68% 4,249,211.18 2.87% 22,876.74 133,10.62 AA 1.77
06417GXH6 Bank of Nova Scotia Yankee CD 5,825.000.00 OWOM017 5,825,000.00 100.00 5,825,000.00 1.28% P-1/A-1 0.11
1.570% Due08/092018 1,57% 5,825,000.00 1,57% 82.815.32 0.00 NR 0.11
5,825,000.00 5,825,000.00 1.28% Aral 0.11
Total Negotiable CD 5,825,000.00 1.57% 5,825,000.00 1.57% 82,815.32 0.00 NR 0.11
Supranational
4581XOCX4 Inter-American Dev Bank Note 3,035,001 04/05209 3D2],807.05 98.31 2,983.593.17 0.65% Ate/AAA 1.87
1 625% Due 0511212020 1,70% 3,030,649,73 2,56% 6,712.83 (47,056,56) AAA 1.82
45950KCMO International Finance Corp Note 2,970,000.00 01/102018 2,961,268.20 98.81 2,934,766.89 0.64% Aare/AAA 2.58
2.250% Due 01/252021 2.35% 2,962,519.01 2.73% 28,957.50 (27,752.12) NR 2.45
4581XOCS5 Inter-American Dev Bank Note 5,000,000.00 Various 5,059,610.00 97.74 4,886,980.00 1.07% Aaa/AAA 2.71
1.875% Due 031152021 1.68% 5,024,638.85 2.75% 27,604.17 (137,658.85) AAA 2.60
45950KCJ7 International Finance Corp Note 2,500,000.00 11mW0I6 2,441,600.00 95.09 2,377,345.00 0.52% Aaa/AAA 3.06
1.125% Due0712012021 1.64% 2,461,987.16 2.81% 12,578A3 (84,642.16) NR 2.95
4581XOCW6 Inter-Amencen Dev Bank Note 3,000.000.00 01/102017 2,996,310.00 97.90 2,936.856.00 0.64% Aaa/NR 3.56
2.125% Due0l/18/2022 2.15% 2.997,379.01 2.75% 28.864.58 (60.523.01) AAA 3.W
45901 Intl.Bank Recon&Development Note 10,000,000.00 Various 10,006,350.00 97.20 9,720,240.00 2.13% Ana/NR 3.58
2.000% Du001262022 1,99% 10,003,427.87 2,83% 86.111.12 (283,187.87) AAA 3.39
4581XOCZ9 Inter-Amercan Dev Bank Note 6,500,000.00 Various 6,249,655.00 95.77 6,224,900.50 1.36% NR/NR 4.21
1350% Due09/142022 2.65% 6,269,597.24 2.82% 33,809.02 (44,696.74) AAA 3.99
32,742,600.25 32,064,681.56 7.01% Aarl 3.28
Total Supranational 33,005,000.00 2.07% 32,750,198.87 2.77% 224,637.35 (685,517.31) Ann 3.12
US Corporate
073902CD8 Bear Stearns Note 3,200,000.00 01/15/2014 3.523,520.00 100.00 3,200.000.00 0.71% A3/NR 0.01
4,650% Due07102Y2018 225% 3,200,199,33 4,65% 73,98667 (199,33) AA- 0.01
532457BF4 Eli Lilly&CO Note 4,000,00000 Various 4,009,675.00 99.53 3,981,020.00 0,87% A2/AA- 0.71
1.950% Due031152019 1.89% 4,001,597.78 2.63% 22,966.67 (20,577.78) A 0.69
02665WA114 American Honda Finance Note 4,000,000.00 Various 4,046,640.00 99.43 3,977,172.00 0.87% A2/A+ 1.13
2,250% Due 08/15/2019 1,93% 4,013,749.40 2.77% 34,000.00 (36,577.40) NR 1.09
084061 Bank of New York Callable Note Cent 8/11/2019 2.120.000.00 0Zt102016 2,142,175.20 99.46 2.108.526.56 0,46% A7/A 1.20
2.300% Due 0911112019 1,99% 2,127,077.93 2.80% 14,898.89 (18,551.37) AA- 1.08
24422ESS9 John Deere Capital Corp Note 5,000,000.00 Various 5,046,984.00 99.47 4,973,560.00 1.09% A2/A 1.21
2.300% Due 09/162019 2,07% 5,012,977.60 2,75% 33,541.67 (39,417.60) A 1.18
36962G7MO General Biel Capital Corp Callable Note 1X 5,000,000.00 Various 5,014,950.00 98.80 4,940,155.00 1.08% A2/A 1.53
12/92019 2.13% 5,004,547.63 3.01% 52,555S5 (64,392.63) A 1.47
2.200% Due01/092020
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 6/30/2018
Purchase Date Cost Value Mid Price Market Value %of Port. Moi Maturity
CUSIP Security Description Par Value/Units Book Yi a ld Book Value Mkt YTM Accrued Mr. Gain/Loss Fitch Duration
46625HKA7 JP Morgan Chase Callable Note Cent 12/23/2019 2,000,000.00 02/06/2015 1,994,880.00 9871 1,974,274.00 0.43% A3/A- 1.57
2.250% Due 01232020 2.30% 1,998,382.11 3.10% 19,751 (24,108.11) AA- 1.51
40428HPR7 HSBC USA Inc Note 2,500,000.00 Various 2,472,287.50 98.83 2,470,802.50 01 A2/A 1.68
2.350% Due 03/052020 2.64% 2,488,382.26 3.07% 18,930.56 (17,579.76) AA- 1.62
747525AD5 Oualwmm Inc Note 5,000,000.00 05/19/2015 4,995,195.40 98.53 4,926,285.00 1.07% Al/A 1.89
2.250% Due 05/202020 2.27% 4,998,186.10 3.06% 12,812.51 (71,901.10) NR 1.83
94974BGM6 Walls Fargo Corp Note 5,000,000.00 07/16/2015 5,001,650.00 9873 4,936,510.00 1.08% A2I A- 2.06
2.600% Due 01 2,59% 5,000,679,15 3.24% 57,416.67 (64,169.15) A+ 1.97
01 Apple Inc Callable Note Cant 1/232021 4,000.000.00 05/23/2016 4,050,840,00 98.26 3,930.420.00 0.86% Aat IAA+ 2.65
2.250% Due 02123/2027 196% 4,02797245 2.94% 32.000+00 (97,552+45) NR 2.53
30231GAV4 Exxon Mobil Corp Callable Note Cont 211/2021 3,000,000.00 Various 3,016,097.40 98.16 2,944,785.01 0.64% Aria/AA+ 2.67
2.222% Due 01 2.10% 3,009,016.03 2.94% 22.220.00 (64,231.02) NR 2.55
3695501 General Dynamics Corp Note 3,160,000.00 06/08/2018 3,138,038.00 99.68 3,149,846.92 0.69% A2I A+ 2.87
3.000% Due05/112021 3.24% 3,139,059.95 3.12% 13,166.67 10.786.97 NR 2.71
166164BG4 Chevron Corp Callable Note Coat 4/15/2021 2,500,000.00 05202016 2,485,350.00 97.66 2,441,500.00 0.53% Aa2/AA- 2.88
2.100% Due05/16/2021 2.23% 2,491,534.12 2.95% 6,562.50 (50,034.12) NR 2.76
61747WAL3 Morgan Stanley Note 2,800,000.00 06/06/2014 3200,848.00 105.82 2,%2,915.20 0.66% A3/BBB. 3.08
5,500% Due 07128/2021 3,24% 2,972,869,55 3.49% 65,450.00 (9,954.35) A 2.T/
594918BP8 Microsoft Callable Note Could 718121 3,045,000.00 Various 3,041,385,15 95.89 2,919,871.82 0.64% Are/AAA 3.11
1.550% Due 08/0812021 1,57% 3,042755.07 2.94% 18,74789 1122.883+25) AA+ 2.96
68389MKO Oral Corp Callable Note Cant 8101121 3,000,000.00 0628/2018 2,892,240.00 95.24 2,857,25700 0.62% At/AA- 3.21
1.900% Due09I1512021 3.08% 2,892,423,58 3.48% 1678333 (35,166.58) A+ 3.05
06406RAA5 Bank of NV Mellon Corp Callable Note Cant 2,500,000.00 01 2,504,475.00 Bi 2,448,572.50 0.54% Al/A 3.61
2+600%2 Due ovomoz2 2.56% 2,503,216.80 3.21% 26,001 (54,644.30) AA- 3.37
zs00%
69353RFB9 PNC Bank Callable Note Cont 1/18/2022 1,000,000.00 03282018 91 97.50 975,026.00 0.21% A2/A 3.64
2.625% Due02/1]2022 3.32% 976,614.19 3.36% 9.770.83 (1,589.19) A+ 3.39
6745991 Occidental Petroleum Callable Note Cant W152022 3,350,000.00 01 3,354,589.50 97.77 3,275,24475 0.71% A3/A 3.79
2.600% Due 04/152022 2.57% 3,353,484.62 3.23% 18,387.78 (78,239.87) A 3.56
084664BP Berkshire Hathaway Note 4,000,000.00 05232017 4,131,120.00 91 3,997,740.00 0.87% Aa2/AA 3.88
3.000% Due05/152022 2.30% 4,102,150.79 3.01% 15,333.33 (104,410.79) A+ 3.62
950001 WELLS FARGO&COMPANY Note 3,000,001 Various 2,954,520.00 96.32 2,889.552.00 0.63% A2I A- 4.06
2.625% Due W/222022 2.99% 2.958,889.66 3.61% 34.781+26 169,337+66) A+ 3.76
00440EAU1 Chubb INA Holdings Inc Callable Note Cant 4,169.000.00 Various 4,232,453.17 98.25 4,096,188A2 0.89% A3/A 4.35
2 2+875% Dull 2.54% 4,224,087.95 3.33% 19,310.58 (127,899.53) A 3.88
.8/5%
90331HNL3 US Bank NA Callable Note Cant 12/ 122 5,000,000.00 01292018 4,981,600.00 97.91 4,895,740.00 1.08% All AA- 4.57
2.850% Due 01/23/2023 2,93% 4.983,128.27 3,35% 62,541.67 (87,388.27) AA- 4.18
08406RAE7 Bank of NV Mellon Corp Callable Note Cant 1,500,000.00 02262018 1,486,065.00 97.73 1,466,020.50 0.32% Al I A 4.59
12/29/2022 3.16% 1,487,019.35 3.49% 18,683.33 (20,998.85) AA- 4.19
2.950% Due 01/292023
44932HAH6 IBM Credit Corp Note 5,670,000.00 Various 5,603,264.40 9779 5,544,641.98 1.22% Ai/A+ 4.61
3.000% Due 02/062023 3.26% 5,606,621.10 3.52% 68,512.50 (61,979.12) A+ 4.20
004401 Chubb INA Holdings Inc Note 2,000,000.00 05242018 1,937,000.00 96.80 1,935,964.00 0.42% A3/A 4.70
2.700% Due 03/132023 3.42% 1,938,188.68 3.44% 16,200.00 (2,224.68) A 4.33
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 6/30/2018
Purchase Date Cost Value Min Price Market Value %of Port. Mori Maturity
CUSIP Security D....ipti.. Par ValuefUnits Book Yi a Id Book Value Mid�M Accrued lint, Gain/Loss Fitch Duration
084670BR8 Berkshire Hathaway Callable Note Cam 1/15/2023 2,500,000.00 04/20/2018 2,440,950.00 97.86 2,446,532.50 0.54% Aa21 AA 471
2.750% Due03li5Y1023 3.28% 2,443,198,26 3.24% 20,243.06 3,33424 A+ 4.34
69353RFL7 PNC Bank Callable Note Cont 5/9/2023 5,000,000.00 Various 4,993,318.05 100.14 5,007,230.00 1.09% A2/A 4.94
3.500% Due 0610M023 3.53% 4,993,392.15 3.47% 11,180.56 13.837.85 A+ 4.42
931142EK5 Wal-Mart Stores Callable Note Cent 5126/2023 3,080,000 00 Various 3,878,991.40 100.74 3,908,878.84 0.85% Aa2 I AA 4.99
3.400% Due 06/26/2023 3.41% 3,878,993.61 3.24% 1,465.78 29,885.23 AA 4.49
103,546,042.17 101,582,231.50 22.23% Al/A+ 2.98
Total US Corporate 102,894,000.00 2.60% 102,870,39547 3.20% 838,200.26 (1,288,163.97) A+ 2.75
US Treasury
912828B33 US Treasury Note 11.000,00000 Various 11,042,439,19 99,58 10,954,020.00 2.39% Aea/AA+ 0.59
1500% Due 01/31/2019 1.37% 11,008 017 81 2.22% 68,825.97 (53,997.81) AAA 0.58
912828SN1 US Treasury Note 5,00000000 12128/2016 5,016423.00 9943 4,97148500 1.08% As. AA+ 0.75
1.500% Due03131/2019 1,35% 5,005,454.35 2.27% 18,852A6 (33,969.35) AAA 0.74
912828WS5 US Treasury Note 2,000,000.00 Various 1,996,86144 99.27 1,985,390.00 043% Aaa I AA+ 1.00
1.625% Due 06/30/2019 166% 1,999,365.87 2.37% 88.31 (13,975.87) AAA 0.98
912828WW6 US Treasury Note 5,000,000.00 Various 5,012,388.70 99.18 4,958,985.00 1,08% Area/AA+ 1.08
1.625% Due 07/31/2019 1.57% 5,002,701,60 2,39% 33,891.58 (43,716sO) AAA 1.06
91282BF39 US Treasury Note 5,800,000.00 10/27/2014 5,873,186.87 99.16 5,751,059.60 1.25% Ass/AA+ 1.25
1.750% Due0913O2019 1.48% 5,818,561.30 244% 25,513.67 (67,501.70) AAA 1.22
912828G61 US Treasury Note 7,500,000.00 12119/2014 7,449,634.50 98.65 7,398,922S0 1,61% Ask,/AA+ 1.42
1.500% Due11/30Y2019 1.64% 7,485,565.98 2.47% 9,528.69 (86,643AB) AAA 1.39
91281 US Treasury Note 5,000,000.00 12121/2016 4,966,423.00 98.07 4,903,515.00 1.07% Me IAA+ 1.92
1.500% Due 05131/2020 170% 4,981,286.70 2.54% 6,352A6 (77,771.70) AAA 1.07
91281 US Treasury Note 10,000,000.00 Various 9,850,31140 97.28 9,728.120.00 2,12% Me IAA+ 2.34
1.375% Due 10131/2020 1.81% 9,903,008.32 2.58% 23.165+76 1174.888+32) AAA 2.27
912828N89 US Treasury Note 6,000,000.00 Various 5,895,840.41 96.95 5,816,952.00 1.27% Aea/AA+ 2.59
1.375% Due 01/31/2021 1,81% 5,934,971.96 2,60% 34.412.99 (118,019+96) AAA 2.50
912828TM US Treasury Note 7,000,000.00 Various 6,757,914.08 95.28 6.669,411.00 1.45% Ass IAA+ 3.25
1.125% Due09130Y2021 1.88% 6,836,225.47 2.65% 19,795.09 (166,81447) AAA 3.15
912828T67 US Treasury Note 6p00,000.00 1vlm016 5,813,691.98 95.54 5,732,346.00 1,25% Ass/AA+ 3.34
1.250% Due 10131=1 1.92% 5,872,658.15 2.66% 12,635.87 (140,312.15) AAA 3.22
91282BU65 US Treasury Note 7,000,000.00 12/2molf; 6,900,492.20 97.05 6,793,283+00 1.48% Me IAA+ 3.42
1.750% Due 11/30/2021 2.06% 6,930,892.75 2.66% 10,375.68 (137,60975) AAA 3.28
912828V72 US Treasury Note 3,000.000.00 02/29/2017 3,006,814.74 97.28 2,918,436.00 0.64% Asa I AA+ 3.59
1.875% Due01/31/2022 184% 3,003.507.96 2.67% 23.463+40 (85,071+96) AAA 3.41
912828J76 US Treasury Note 5,000,000.00 04/ tI317 4,976,383.94 96.69 4,834,375.00 1.05% Area/AA+ 3.75
1.750% Due O131Y022 1.85% 4,982,038.67 2,68% 21,994.54 (147,663+67) AAA 3.58
912828M5 US Treasury Note 5,000,000.00 07/25/2017 4,973,454.25 96.41 4,820,705.00 1.05% Ass IAA+ 4.W
1.750% Due 06130/2022 1.86% 4,978,468.45 2.70% 237.77 (157,763A5) AAA 3.83
912828124 US Treasury Note 6,000,000.00 09/27/2017 5,987,832.60 9674 5,804,298.00 1,27% Ass/AA+ 4.17
1.875% Due 08131=2 1.92% 5,989,700.34 2.71% 37,601.90 1185,402.34) AAA 3.95
Cjjj � Holdings Report
Orange County Sanitation District Long Term -Account #10268 For the Month Ending 6/30/2018
Purchase Date Cost Value Mdt Price Market Value %of Port. MoodyIS&P Maturity
CUSIP Security Description Par Value/Units Book Yi a Id Book Value Mkt YTM Accrued Int, Gain/Loss Fitch Duration
912828157 US Treasury Note 13,000,000.00 Various 12,763,554.69 96.18 12,503,868.00 273% Aaa I AA+ 4.25
1.750% Due09/30Q022 2.15% 12,789,877.75 2.71% 57,18579 (286,00975) AAA 4.04
912828M80 US Treasury Note 8,000,000.00 1MM017 7,907,500.00 97.05 7,764,376.00 1.69% Ass/AA+ 4.42
2.000% Due 11/30Q= 2.25% 7,917,109.72 2.71% 13,551.91 (152,733.72) AAA 4.18
912828N30 US Treasury Note 5,000,000.00 01/24/2018 4,926,562.50 97.49 4,074,415.00 1.06% Ass,/AA+ 4.51
2.125% Due12/31/2022 2.44% 4,932,964.33 2.72% 288.72 (58,549.33) AAA 4.25
9128284D9 US Treasury Note 10,000,000+00 Various 9,887,265.63 99.00 %W0,000.00 2.16% Aaa I AA+ 4.75
2,500% Due 03/31/2023 275% 9,891,622.01 2.73% 62,841.53 8,377.99 AAA 4.42
912828R69 US Treasury Note 5,000,000.00 05/30/2018 4,757,226.56 94.94 4,746,875.00 1.03% Aaa I AA- 4.92
1.625% Due 05/31/2023 2.67% 4761.348.12 2.73% 6.881+83 (14,473+12) AAA 4.67
912828WUO US Treasury Inflation Index Note 10,972,312.00 Various 10,858,665.66 97.21 10,665,668.82 2.32% Asa I AA+ 6.05
0.125% Due07115/2024 0.23% 10,903,380.52 0.60% 6,327.29 (237,71110) AAA 6.00
146,618,867.34 144,496,505.92 31.46% Aaa/AA+ 3.20
Total US Treasury 148,272,312.00 1.80% 146,928,728.13 2.44% 493,813.19 (2,432,222.21) Aaa 3.07
464,793,372.42 450,708,812.78 100.00% Aal/AA 2.79
TOTAL PORTFOLIO 466,561,726.66 2.14% 464,476,996.33 2.68% 2,104,111.36 (5,768,183.55) A. 2.43
TOTAL MARKET VALUE PLUS ACCRUALS 460,812,924.14
Cjjj � Holdings Report
Orange County Sanitation District Liquid -Account #10282 For the Month Ending 6/30/2018
Purchase D:te Cost Value MkIl Price Market Value %of Pon. Moody/S&P Maturity
CUSIP Security Description ParValul Book Yi Id Book Value Min Will Accrued Int. Gain/Loss Fitch Duration
Agency
313385ZE9 FHLB Discount Note 5,000,00000 0612V2018 4,994,805.56 9995 4,997,40278 320% P-1IA-1+ 003
1870% Due 07/11/2018 1,90% 4,997402,78 1,90% 000 000 F-1+ 0.03
313385ZN9 FHLB Discount Note 5,000,00000 06/21/2018 4,992,688,89 9991 4.995,300+00 3,20% P-1/A-1+ 0.05
1.880% Due WI19I2018 1.91% 4,995,300,00 1.91% 0.00 0.00 F-1+ 0.05
313385ZU3 FHLB Discount Note 2,300.000.00 06Rnl)18 2,296,015.26 99.87 2,297,102.00 1.47% P-1/A-1+ 0.07
1.890% Due O]I25Y2018 1,92% 2,297,102.00 1,92% 0.00 0,00 F-1+ 0.07
313385Z 9 FHLB Discount Note 2,900,000.00 08 ml)18 2,894,715.00 99.86 2,896,074.00 1.86% P-1/A-1+ 0.07
1.874% Due O]Y2]Y2018 1.90% 2,896,074.00 1,90% 0.00 0.00 F-1+ 0.07
313385A55 FHLB Discount Note 1,300,000.00 06 12018 1,297,049.72 99.83 1,297,735.83 0.83% P-1/A-1+ 0.09
1.900% Due08/03n018 1.93% 1,297,735.83 1.93% 0.00 0.00 F-1+ ON
313385C87 FHLB Discount Note 5p00,000.00 06/27/201 B 4,985,300.00 9973 4,986,350.00 3.20% P-1/A-1+ 0.15
1.890% Due08/22/2018 1,92% 4,986,350.00 1,92% 0.00 0.00 F-1+ 0.14
313385D29 FHLB Discount Note 2.755,00000 0612912018 2746,900.30 9972 2,747.189.58 1,76% P-1/A-1+ 0.15
1.890% Due08Y24Y2018 192% 2,747,189,58 1,92% 000 000 F-1+ 0.15
24,207,474.72 24,217,154.19 15.52% A../AAA 0.08
Total Agency 24,255,00000 1.91% 24,217,154.19 1 91% 0.00 0.00 Aaa 0.08
LCommercial Paper
06406XG65 Bank of New York Mellon Dismount GP 1000,00000 03/29/2018 993,840.00 9997 999,688.89 0.El P-1 I A-1+ 0.02
2,240% Due 07/06/2018 2.29% 999,688.89 2,29% 000 000 F-1+ 0.02
36960MGX5 General Electric Co Discount CP 1,500,000.00 IM/20/2018 1,490,267.50 99.81 1,497,137.50 0.96% P-1/A-1 ON
2.290% Due OT/31/2018 2.34% 1.497,137.50 2.34% 0.00 0.00 F-1 ON
02665KH67 American Honda Discount CP 1,500,000.00 04/20/2018 1,490,065.00 9978 1.496,685.00 0.96% P-1/A-1 0.10
2.210% Due08/O6/2018 2.26% 1,496,685.00 2.26% 0.00 0.00 F-1 0.10
89233HJE5 Toyota Motor Credit Discount CP 1,500,000.00 05/09/2018 1,487,573.33 99.51 1,492,71875 0.96% P-1/A-1+ 0.21
2.330% Due09/14Y2018 2.38% 1,492,718.75 2.38% 0.00 0.00 MR 0.21
216876JO5 Rabobank Nederland NV NV Discount CP 1,500,000.00 03/20/2018 1,482,252.50 99.46 1,491,889.58 0.96% P-1/A-1 0.24
2.290% Due09/24/2018 2.35% 1,491,889.58 2.35% 0.00 0.00 MR 0.23
62479MKF9 MUFG Bank LW/NY Dismount CP 3,100,000.00 06/14/2018 3,075,417.00 99.31 3.078,64100 1.97% P-1/A-1 0.29
2.340% Due10/15CO18 2.39% 3,078,641.00 2.39% 000 0.00 MR 0.29
10,019,405.33 10,056,760.72 6.44% P-1 IA-1 0.18
Total Commercial Paper 10,100,000.00 2.34% 10.056,760.72 2.34% 0.00 0.00 F-I+ 0.18
Money Market Fund FI
31846V567 First American Gun Obligation MMKT Clausal 4727,642.20 Various 4727,642.20 1.00 4,727,642+20 3.03% P-1/A-1+ ON
1.77% 4,727,642.20 1.77% 0.00 0.00 F-1 0.00
4,727,642.20 4,727,642.20 3.03% A"IAAA 0.00
Total Money Market Fund FI 4,727,642.20 1.T]% 4,727,642.20 1.77% 0.00 0.00 AA 0.00
Cjjj � Holdings Report
Orange County Sanitation District Liquid -Account #10282 For the Month Ending 6/30/2018
Purchase D:te Cost Value MkIt Price Market Value %of Pon. Moody/S&P Maturity
CUSIP Security Description ParValuelUnft Book Yi ld Book Value Mkt WM Accrued Int. Gain/Loss Fitch Duration
Negotiable CD
86958JRH4 Svenska Handusbanken Yankee CD 2,000,00000 05/11/2018 1998,300.00 9998 1,999,660.00 1.30% P-1IA-1+ 004
1545% Due 0711312018 2,03% 1,999,660,00 2,03% 30,299,17 000 F-1+ 0.04
78009N2V7 Royal Bank of Canada Yankee CD 1,000,00000 04/24/2018 996,762,00 9981 998,09296 0.65% P-1/A-1+ 0.27
1.700% Due 1010512018 2,40% 998,092.96 2.40% 12,655+56 0.00 F-1+ 0.26
96121T6G8 Westpac Banking Corp Yankee CD 1p00,000.00 05/25/2018 998,657.O1 99.90 998,967.58 0.65% P-1/A-1+ 0.34
2.060% Due 11/01/2018 2.35% 998,967.58 2,35% 8.640+56 0.00 F-1+ 0.34
06371ERK5 Bank of Montreal Chicago Yankee CD 2,950,000.00 Various 2,941,422.57 99.80 2,944,049.85 1.91% P-1/A-1 0.37
1.750% DuellAM018 2.38% 2,942,840.42 2.26% 36,997S2 1.209.43 F-1+ 0.37
78012UAX3 Royal Bank of Canada Yankee CD 1,000,000.00 02272018 1,000,000.00 100.00 1,000,000.00 0.65% P-1/A-1+ 0.41
2.320% Due 112T2018 2.32% 1,000,000.00 2.32% 7,926.67 0.00 F-1+ 0.41
89113XUZ5 Toronto Dominion NY Yankee CD 1,000,000.00 05/112018 997,312.00 99.78 997,817.98 0.65% NR/NR 0.57
2.150% Due0112412019 2.52% 997,817.98 2.52% 9,316.67 0.00 MR 0.56
89113X3W2 Toronto Dominion NY Yankee CD 1,000,000.00 06012018 1,000,000.00 100.00 1,000.000.00 0.64% P-1/A-1+ 0.94
2700% Due O6/OT2019 2.70% 1,000,000.00 2.70% 67500 000 F-1+ 0.92
9,932,453.58 9,938,588.37 6.44% As./AAA 0.37
Total Negotiable CD 9,950,000.00 2.35% 9,937,378.94 2,31% 106,511.55 1,209.43 Aaa 0.37
Supranational
459515ZGO IFC Discount Note 5,000,00000 04I2WW8 4,979,075,00 9994 4,996,900.00 3.20% P-1IA-1+ 0.04
1,860% Due W/132018 1.89% 4,996,900,00 1,89% 000 000 F-1+ 0.04
4581XOBR8 Inter-American Dev Bank Note 1,500,000.00 051142018 1,498,672,50 99.94 1,499,109.00 0.97% A.I AAA 0.15
1.750% Due08/24/2018 2.07% 1499275.91 2.13% 9.260+42 1166+911 AAA 0.15
45950KCA6 International Finance Corp Note 1,500,000.00 OS/142018 1,498,365.00 99.90 1,498,434.00 0.97% Aaa/AAA 0.18
1.750% Due091042a18 2.11% 1,499,042.57 2.33% 8,531.25 (608S7) MR 0.18
7,976,112.50 7,984,443.00 5.13% Aaa/AAA 0.08
Total Supranational 8.000,000.00 1.97% 7,995,21BAB 2.02% 17,991.67 (775.48) Aaa 0.08
Corporate
24422ESX8 John Deere Capital Corp Note 1,500,000.00 O2JMO18 1,497,600.00 99.98 1,499,634.00 0.97% A2/A 0.04
1.600% Due Ol/132018 2.02% 1,499,789.78 2.26% 11.200.00 (15578) A ON
590188JF6 Bank of Amenca Corp Note 1p00,000.00 OS/312018 1,004,520.00 100.13 1,001,274.00 0,66% A3I A. 0.04
6.500% Due OT/152018 2.46% 1,001,543.41 3.34% 29,972.22 (269Al) A+ 0.04
40428HPU0 HSBC USA Inc Note 1,000,000.00 OS/142018 999,360.00 99.95 999,457.00 0.65% A2/A 0.10
2.000% Due0810712018 2.27% 999,714.70 2.51% 8,000.00 (257.70) AA- 0.10
097014AM6 Boeing CepMI Corp Callable Note Cont T/15/18 700,000+00 04/10/2018 700,973.00 100.02 700,147.70 0,45% A2/A 0.13
2.900% Due08/1512018 2.35% 700,144.91 2.38% 7,668+89 2.79 A 004
40428HPJ5 HSBC USA Inc Note 619,000.00 OV132018 620,281.33 100.01 619,06438 040% A2/A 0.24
2.625% Due09/24/2018 2.28% 619,492.82 2.56% 4,378.14 (428+44) AA- 0.23
74005PBH6 Praxair Note 1,205,000.00 Various 1,198,513.80 99.53 1,199,325.66 0.77% A2/A 0.36
1.250% Due 11/072018 2.52% 1.199705.83 2.59% 2,259.38 (38049) MR 0.35
Cjjj � Holdings Report
Orange County Sanitation District Liquid -Account #10282 For the Month Ending 6/30/2018
Purchase D:te Cost Value Mdt Price Market Value %of Port. Mori Maturity
CUSIP Security Description Par Value/Units Book Yi ld Book Value Mkt YTM Accrued Int Gain/Loss Fitch Duration
24422ESF7 John Dearer Capital Corp Note 1, 00,000.00 06/18/2018 997500.00 99.69 996,908.00 0.64% A2I A 0.45
1.950% Due 12/1W018 2.47% 99766949 2.64% 975A0 (761A9) A 0.45
46625HJR2 JP Morgan Chase Note 1,000,000.00 05/032018 998,810.00 99.84 998,416.00 0.65% A31 A- 0.58
2.350% Due 01282019 2.51% 999,056.05 2.63% 9,987.50 (640.05) AA- 0.56
8,017,558.13 8,014,226.74 5.18% A21A 0.24
Total US Corporate 8,024,000.00 2.35% 8,017,116.99 2.60% 74.441.13 (2,890.25) A+ 0.22
US Treasury
912796PR4 US Treasury Bill 30,000,000.00 Various 29,859,074.50 99.88 29,962,51805 19,20% P-1/A-1+ 0.07
1.799% Due O]/262018 1.83% 29,962,518.05 1.83% 0.00 0.00 F-1+ 0.07
912828S68 US Treasury Note 26,000,000.00 Various 25,909,101.58 99.91 25,977,822.00 16.70% Aaa/AA+ 0.08
0.750% Due OT/312018 1.70% 25,979,60419 1.74% 81,339.80 (1,782.79) AAA 0.09
912796NV7 US Treasury Bill 30,000,000.00 Various 29,798r7U 98 99.62 29,885,798.47 19.15% P-1IA-1+ 0.21
1.852% Due09/13/2018 1,89% 29,885798,47 1.89% 0.00 0.00 F-1+ 0.20
912828B33 US Treasury Note 5,000,00000 06/18/2018 4,978,906,25 99.58 4,979,100A0 3,21% Aaa/AA- 0.59
1.500% Due01/312019 219% 4,980,02627 2.22% 31,284.53 (926+27) AAA 0.58
90,545,867.31 90,805,238.52 58.26% Aaa IAAA 0.15
Total US Treasury 91,000,000+00 1.83% 90,807,947.58 1.85% 112,624.33 (2,709.06) Aaa 0.15
155,426,513.77 155,754,053.74 100.00% Aaa I AAA 0.15
TOTAL PORTFOLIO 156,056,642.20 1.941A 155,759,219.10 1.96% 311,368.68 (5,165.36) Aaa 0.15
TOTAL MARKET VALUE PLUS ACCRUALS 156,065,422.42
lCjjj � Holdings Report
OCSD Lehman Exposure -Account #10284 For the Month Ending 6/30/2018
Purchase D:te Cost Value Mint Price Market Value %of Pon. Moi Maturity
CUSIP Security Description ParValuelUnits Book Yi Id Book Value Mid YTM Accrued Int. Gain/Loss Fitch Duration
Common Stock
SLHOPNTA4 Lehman Brothers, Inc Open Position Long 60,641 49 1112112014 57 842.64 042 25,621.03 24.42% NR/NR 000
Exposure
0.000% Due06/30/2018 000% 57,84280 000% 0-00 (32,22161) NR 000
57,842.64 25,621.03 24.42% NR/NR 0.00
Total Common Stock 60,641.49 0.00% 57,842.64 0.00% 0.00 (32,221.61) NR 0.00
525ESCIB7 Lehman Brothers Note-Defaultel 600,000.00 09/1912008 327,458.23 3.05 18,300.00 17.44% NR/NR 0.57
0.000% Due01/24Y2019 0.00% 327,458.23 0.00% 0.00 (309,158.23) NR 0.00
525ESCOY6 Lehman Brothers Note-Defaulted! 2,000,000.00 09/18/2006 1,056,016.56 3.05 61,000.00 58.14% NR/NR 31.33
0.000% Due 10/22/2049 0.00% 1,056,016.56 0.00% 000 (995,016.56) NR 0.00
1,383,474.79 79,300.00 75.58% NR/NR 24.23
Total US Corporate 2,600,000.00 0.00% 1,383,474.79 0.00% 0.00 (1,304,174.79) NR 0.00
1,441,317.43 104,921.03 100.00% NR/NR 18.32
TOTAL PORTFOLIO 2,660,641.49 0.00% 1,441,317.43 0.00% 0.00 (1,336,396.40) NR 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 104,921.03
Gilk
SECTION 5
Transactions
C�j't Transaction Ledger
Orange County Sanitation District Long Term -Account #10268 March 31, 2018 through June 30, 2018
Transaction Settlement A.qlDiap Interest
TYPs, Date CUSIP Quantity Security Description Price Yield Amount Pull Total Amount Gain/Loss
Purchase 04/18/2018 9128284D9 6,000,000.00 US Treasury Note 2.5%Due 03/31/2023 99.129 2.69% 5,94],]34.38 7,377.05 5,955,111.43 0.00
:
Purchase 04/24/2018 084670BR8 2,500,000.00 Berkshire Hathaway Callable Note Cent 111 W2023 97.638 3.28% 2,440,950.00 7.447.92 2,448,397.92 0.00
2,75%Due:03/15/2023
Purchase 04/2412018 459053176 8,000,000.00 Iral Bank Recon 8 Development Discount Note gg 783 1.85% 7,982,608.89 0.00 7,982,608.89 0.00
1 82%Due:06I06I2018
Purchase 04/26/2018 3135GOT94 2,000,000.00 FNMA Note 97.729 2.89% 1,954,580.00 12.270.83 1,966,850.83 0.00
2.375%Due:01/19/2023
Purchase 04/26/2018 9128284DO 4,000,000.00 US Treasury Note 98.488 2,83% 3.939,531.25 7,103.83 3,946,635.08 0.00
2.5%Due:03/3112023
Purchase 04/27/2018 459053W U4 7,500,000.00 Intl.Bank Recon 8 Development Discount Note 99.921 1.70% 7,494,050.00 0.00 7,494,050.00 0.00
1.68%Due:0511412018
Purchase 04/27/2018 459515 01 5,O00,000A0 IFC Discount Note 99.937 1.78% 4,996,840.28 0.00 4,996,840.28 0.00
1.75%Dua:05/10/2018
Purchase 05/10/2018 8923311JA3 8,000,000.00 Toyota Motor Credit Discount CP 99.204 2.38% 7,936,313.33 0.00 7,936,313.33 0.00
2.33%Dua:09/10/2018
Purchase 05/11/2018 369550BE7 3,160,000.00 Consist Dynamite Cory Note gg.305 3.24% 3,138,038.00 0.00 3,138,038.00 0.00
3%Due:05/11/2021
Purchase 05/17/2018 44932HAH6 1,005,000.00 IBM Credit Corp Note 97A11 3.40% 984,005.55 8,458.75 992,464.30 0.00
3%Due:02/0612023
Purchase 05/25/2018 912796PM5 8,000,000.00 US Treasury Bill 99.842 1.70% 7,911 0.00 7,987,344.44 0.00
1.76%Due:06/28/2018
Purchase 05/29/2018 00440EAP2 2,000,000.00 Chubb INA Holdings Inc Note 96850 3.42% 1,937,000.00 11,400.00 1,948,400.00 0.00
2.7%Due:03/13/2023
Purchase 05/30Y2018 313385VG3 8,500,000.00 FHLB Discount Note 99,862 1.81% 8.488,232.22 0.00 8,488,232.22 0.00
1.78%Due:06/27/2018
Purchase 05/30/2018 43814UAG4 1,710,001l Honda Auto Receivables 2019-2 A3 99.998 3.03% 1.709,962.72 0.00 1,709,962.72 0.00
3.01%Due:05/18/2022
Purchase 05/31/2018 912828R69 5,000,001 US Treasury Note 95.145 2.67% 4.757,226.56 0.00 4,757.226.56 0.00
1.625%Due:05/31/2023
C�j't Transaction Ledger
Orange County Sanitation District Long Term -Account #10268 March 31, 2018 through June 30, 2018
Transaction Settlement Acql Interest
Type Date CUSIP Quantity Security Description Price Yield Amount Pul Total Amount Gain/Loss
Purchase 061OW2018 69353RFL7 2,605,000.00 PNC Bank Callable Nate Cum 5/9/2023 99.886 3.53% 2,602,030.30 0.00 2,602,030.30 0.00
3.5%Due:06/08/2023
Purchase 06/13/2018 69353RFL7 2,395,000.00 PNC Bank Callable Note Cent 5M/2023 99.845 3.53% 2,391,287.76 1.164.24 2,392,451.99 0.00
3.5%Due:06/08/2023
Purchase 06/25/2018 02587AA33 3,970,000.00 American Express Credit 2017-1 98.453 3.74% 3,908,589.06 2.128.36 3,910.717.42 0.00
1.93%Due:09/15/2022
Purchase 06/27/2018 931142EK5 1,930,00il Wal-Mart Stores Callable Note Cord 5262023 99.973 3.41% 1.929,478.90 0.00 1,929.478.90 0.00
3.4%Due:06/26/2023
Purchase 06/2712018 931142EK5 1,950,000.00 Wal-Mart Stores Callable Note Cont 5262023 99.975 3.41% 1,949,512.50 0.00 1,949,512.50 0.00
3.4%Due:06/26/2023
Purchase 06/28/2018 62479MKF9 9,000,000.00 MUFG Bank LWNV Discount CP 99.310 2,33% 8.937,870.00 0.00 8,937.870.00 0.00
2.28%Due: 10/15/2018
Purchase 06292018 02587AA.3 1,300,000.00 American Express Credit 2017-1 98.512 3.69% 1,280,652.34 975.72 1,281,628.06 0.00
1.93%Due:09/15/2022
Purchase 06/29/2018 02587AAJ3 1.000,0W.W American Express Credit 2M 7-1 984g4 3.72% 984,843.75 750.56 985,594.31 0.00
1.93%Dua:09/15/2022
Purchase 06/29/2018 313385ZW9 9,000,000.00 FHLB Discount Note 99.856 1.87% 8,987,078.00 0.00 8,987,078.00 0.00
1.846%Due:07272018
Purchase 06/29/2018 313500035 7,500,000.00 FNMA Note 100.203 2.60% 7,515,225.00 2,291.67 7,517,516.67 0.00
2.75%Due:06/22/2021
Purchase 06/29/2018 3137EAEN5 5,000,000.00 FHLMC Note 99712 2.81% 4,985,600.00 6,875.00 4,992,475.00 0.00
2.75%Due:06/19/2023
Purchase 06/29/2018 43814PAC4 3,090,000.00 Honda Auto Recelvebles Owner T 17J A3 98414 2.78% 3,040,994.53 1,690.06 3,042,684.59 0.00
1.79%Due:09/20/2021
Purchase 06/29/2018 47788NAD0 1,161,000.00 John Deere Owner Trust 2016-13 A4 9g344 219% 1,131,936M 666.94 1,132,603.50 0.00
1.49%Due:05/15/2023
Purchase 06/29/2018 B8389XBK0 3,000,000.00 Oracle Corp Callable Note Cent W01121 96.408 3.08% 2,892,240.00 16,466.67 2,908,706.67 0.00
1.9%Due:09/15/2021
Subtotal 125,266,000.00 124,231,756.31 87,067.60 124,318,823.91 0.00
Security 04/30/2018 91282SWUO 49,400.00 US Treasury Inflation Index Note 100.000 49,400.00 17.91 49,417.91 0.00
Contribution 0.125%Due:07/152024
C�j't Transaction Ledger
Orange County Sanitation District Long Term -Account #10268 March 31, 2018 through June 30, 2018
Transaction S."lament Acq/Diap Interest
Type Date CUSIP Quartity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss
Security 05/31/2018 912828WUO 25,584.00 US Treasury Inflation Index Note 100.000 25,584.00 12.01 25,596.01 0.00
Contribution 0.125%Due 0711512024
Security 06/29/2018 912828WUO 42,T44.00 US Treasury Inflation Index Note 100.000 42,T44.00 24.35 42,768.35 0.00
Contribution 0.125%Due:07/15/2024
Subtotal 117,728.00 11 T,728.00 54.27 117,782.27 0.00
TOTAL ACQUISITIONS 125,383,728.00 124,349,484.31 87,121.87 12A,436,606.18 0.00
DISPOSITIONS
Maturity 04MW2018 313385VE3 4,350,000.00 FHLB Discount Note 100.000 4,350,000.00 0.00 4,350,000.00 0.00
1.7%Due:04/0612018
Maturity 04/25/2018 313385VZ6 10.000,000.00 FHLB Discount Note 100.000 10.000.000.00 0.00 10,000,000.00 0.00
1 685%Due:04/25/2018
Maturity 05/07/2018 89233HE75 8,000,000.00 Toyota Motor Credit Discount CP 99.759 8.000,000.00 0.00 8,D00,000.00 0.00
1.89%Due:0510712018
Maturity 05/10/2018 459515WQ1 5,000,000.00 IFC Discount Note 100.000 5.000,000.00 0.00 5,000.000.00 0.00
1.75%Due:0511012018
Maturity 0511412018 459053W U4 7,500,000.00 Intl.Bank Recon 8 Development Discount Note 100.000 7,500,000.00 0.00 T,500,000.00 0.00
1.68%Due:0511412018
Maturity 05/24/2018 69372BEQO 5,000,000.00 Paccar Financial Discount CP 99.553 5,000,000.00 0.00 5,000,000.00 0.00
1.85%Due:0512412018
Maturity 0610612018 45WS3XT6 8,000,00060 Intl.Bank Recon 8 Development Discount Note 100.000 8,000,000.00 0.00 8,000,000.00 0.00
1 82%Due:06/06/2018
Maturity 06/13/2018 06538CFD8 8,240,OW60 Bank of Tokyo Masubisbi NV Discount CP 2.1%Due:OW1312018 99,463 8,240,000.00 0.00 8,240,000.00 0.00
Maturity 06/27/2018 313385V03 8,500,000.00 FHLB Discount Note 100.000 8,500,000.00 0.00 8,500,000.00 0.00
1.78%Due:06/27/2018
Maturity 0612812018 912796PM5 8,000,000.00 US Treasury Bill 100.000 8,000,000DO 0.00 8,000,000.00 0.00
1.76%Due:0612812018
Subtotal 72,00,000.00 72,590,000.00 0.00 72,590,000.00 0.00
TOTAL DISPOSITIONS 75,865,505.41 75,865,505.41 144,3CL01 76,009,848.42 0.00
C�l't Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 March 31, 2018 through June 30, 2018
Transaction Settlement A.qlDi.p Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurfSold Total Amount Gain/Loss
Purchase 04/04/2018 912796NV7 10,000,000.00 US Treasury Bill 1 807%Due 09113/2018 99.187 1.85% 9,918,685.00 0.00 9,918,685.00 0.00
:
Purchase 04/11/2018 912796PL7 5,000,I)MIX) US Treasury Bill 99.711 1.65% 4,985,534.22 0.00 4,985,534.22 0.00
1.627%Due:06/14/2018
Purchase 04/12/2018 097014AMB 700.000.00 Boeing Capital Corp Callable Note Cent 7/15/18 100.139 2.35% 700,973.00 3.214.17 704,187.17 0.00
2.9%Due:08/152018
Purchase 04/192018 912796PL7 4,000,000.00 US Treasury Bill 99.743 1.68% 3.989,710.31 0.00 3,989710.31 0.00
1.654%Due:06/14/2018
Purchase 04/20/2018 02665KH67 1,500,000.00 American Honda Discount CP 99.337 2,26% 1.490,055.00 0.00 1,490,055.00 0.00
2.21%Due:0810612018
Purchase 04/20/2018 36960MGX5 1,500,000.00 General Electric Cc Discount CP 99.351 2.34% 1,490,267.50 0.00 1,490,267.50 0.00
2.29%Due:0713112018
Purchase 0412012018 45WS3XT6 5,000,0W.W Intl.Bank Recon&Development Discount Note 99.762 1.85% 4,988,119.44 0.00 4,988,119.44 0.00
1.82%Due:O 10612018
Purchase 0412012018 912796NW 10,000,000.00 US Treasury Bill 99.243 1.91% 9,924,258.44 0.00 9,924,258.44 0.00
1.868%Due:09/132018
Purchase 04/20/2018 912796PR4 10,000,000.00 US Treasury Bill 99.517 1.83% 9,951,677.83 0.00 9,951,677.83 0.00
1.793%Due:07/262018
Purchase 04/23/2018 313385VB6 10,000,000.00 FHLB Dismount Note 99756 1.72% 9,975,588.89 0.00 9,975,588.89 0.00
1.69%Due:06/14/2018
Purchase 04/23/2018 45951UG0 5,000,000.00 IFC Discount Note 99.582 1.89% 4,979,075.00 0.00 4,979,075.00 0.00
1.86%Due:07/13/2018
Purchase 04/24/2018 912796PR4 10,000,000.00 US Treasury Bill 99534 1."% 9,953,396.67 0.00 9,953,396.67 0.00
1.80,t Due:07262018
Purchase 04/25/2018 313385WP7 10,000,000.00 FHLB Discount Note 99.936 1.68% 9,993,563.89 0.00 9,993,563.89 0.00
1.655%Due:05/09/2018
Purchase 04/25/2018 313385VB6 960,000.00 FHLB Discount Note 99763 1.74% 957,720.00 0.00 957,720.00 0.00
171%Due:O6/142018
Purchase 04/25/2018 459053XT6 5,000,01XIM Intl Bank Recon&Development Discount Note 99.788 1.85% 4.989,383.33 0.00 4,989,383.33 0.00
1.82%Due:06/06/2018
C�l't Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 March 31, 2018 through June 30, 2018
Transaction Settlement Aco/Diap Interest
Type Date CUSIP Quartity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss
Purchase 04125/2018 78009N2W 1,00Q000.00 Royal Bank of Canada Yankee CD 99.676 2.40% 996,762.00 9,491.67 1,006,253.67 0.00
1.7%Due: 1010512018
Purchase 04/25/2018 912796PR4 10,000,000.00 US Treasury Bill 99.540 1.83% 9,954,000.00 0.00 9,954,000.00 0.00
1.8%Due:07/26/2018
Purchase 05M712018 46625HJR2 1,000,000.00 JP Morgan Chase Note 99.881 2.51% 998,810.00 6,462.50 1,005,272.50 0.00
2 35%Due:01/28/2019
Purchase OW09/2018 06371ERK5 1,000,000.00 Bank of Montreal Chicago Yankee CD 99.626 2.45% 996,266.73 9,985.28 1,006,230.01 0.00
1.75%Due: 11/13/2018
Purchase 05/09/2018 89233HJE5 1,500,000.00 Toyota Motor Credit Discount CP 99.172 2.38% 1,487,573.33 0.00 1,487.573.33 0.00
2.33%Due:0 /14I2018
Purchase O5/1012018 912828568 5,000,000.00 US Treasury Note 99.758 1,82% 4.987,890.63 10.255.52 4,998.146.15 0.00
0.75%Due:0713112018
Purchase 05/14Y2018 869MJRF14 2,000,000.00 Svenska Handelsbanken Yankee CD 99.915 2.03% 1,998,300.00 26,179.17 2,024,479.17 0.00
1.545%Due:07113Y2018
Purchase 05/14/2018 89113XUn 1,000,000A0 Toronto Dominion NY Yankee CD 99.731 2.52% 997,312.00 6,450.00 1,003,762.00 0.00
2.15%Dua:0112412019
Purchase 05/16/2018 40428HPU0 1,000,000.00 HSBC USA Inc Note 99.936 2.27% 999,360.00 5,500.00 1,004,860.00 0.00
2%Due:08/07QO18
Purchase 05/16/2018 45950KCA6 1,500,000.00 International Finance Corp Note 99.891 2.11% 1,498,365.00 5,250.00 1,503,615.00 0.00
115%Due:09/04/2018
Purchase 05/17/2018 4581XOBRO 1,500,000.00 Inter-American Dev Bank Note 99.912 2.07% 1,498,672.50 6,052.08 1,504,724.58 0.00
1.75%Due:08/24/2018
Purchase 05/17/2018 74005PBH6 705,000.00 Praxer Note 99.436 2.46% ]01,023.80 244]9 701,268.59 0.00
1.25%Due: 11/07/2018
Purchase 05/25/2018 96121T6G8 1,000,000.00 Westpac Banking Corp Yankee CD 99M6 2.35% 998,657.01 6,523.33 1,005,180.34 0.00
2.06%Due:11/0112018
Purchase 05131Y2018 912828568 6,000,000.00 US Treasury Note 99,816 1.84% 5,968,984.38 14,917.13 6,003,901.51 0.00
0.75%Due:07/3112018
Purchase 06/04/2018 590188JF6 1,000,000.00 Bank of America Cory Note 100.452 2.46% 1,004,520.00 25.097.22 1,029.617.22 0.00
6.5%Due:0711512018
Purchase 06/15/2018 62479MKF9 3,100,000.00 MUFG Bank Ltd/NY Discount CP 99.207 2.39% 3.075,417.00 0.00 3,075.417.00 0.00
2.34%Due:10/15/2018
C�l't Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 March 31, 2018 through June 30, 2018
Transaction Settlement Acq/Diap Interest
Type Date CUSIP op,urtity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss
Purchase 06/19/2018 24422ESF7 1,000,000.00 John Deere Capital Carp Nate 1.95%Due 1 211 312 01 8 99.750 2.47% 997,500.00 325.00 997,825.00 0.00
:
Purchase 06/19/2018 912796NW 5,000,000.00 US Treasury Bill 99549 1.92% 4,9]],425.00 0.00 4,9T],425.00 0.00
1.89%Due:09/13/2018
Purchase 06/19/2018 912828B33 5,000,000.00 US Treasury Note 99.578 2.19% 4.978,906.25 28.798.34 5,00],]04.59 0.00
15%Due:01/31/2019
Purchase 06/20/2018 06371ERK5 1,950,000.00 Bank of Montreal Chicago Yankee CD 99.752 2.34% 1,945,157.84 23,413.54 1,968.571.38 0.00
1,75%Due: 11/13/2018
Purchase OWlQO18 313385A55 1,300,000.00 FHLB Discount Note 99.773 1.93% 1,297,049.72 0.00 1,297,049.72 0.00
1.9%Due:08/03/2018
Purchase 06/21/2018 313385ZEO 5,000,000.00 FHLB Discount Note 99.896 1,90% 4.994,805.56 0.00 4,994.805.56 0.00
1.87%Due:07/11/2018
Purchase 060/2018 313385ZN9 5,000,000.00 FHLB Discount Note 99.854 1.91% 4,992,688.89 0.00 4,992,688.89 0.00
1.88%Due:07/19/2018
Purchase 06/22/2018 313385ZU3 2,300,000.00 FHLB Discount Note 99.827 1.92% 2,296,015.25 0.00 2,296,015.25 0.00
1.89%Dua:07/25/2018
Purchase 06/22/2018 313385ZW9 1,300,000.00 FHLB Discount Note 99.817 1.91% 1,297,623.89 0.00 1,297,623.89 0.00
1.88%Due:07/27/2018
Purchase 06/22/2018 313385ZW9 1,600,000.00 FHLB Discount Note 99.818 1.90% 1,597,091.11 0.00 1,597,091.11 0.00
1.87%Due:O7/2712018
Purchase 06/22/2018 74005PBH6 500,000.00 Prexair Note 99.498 2.60% 497,490.00 781.25 498,271.25 0.00
1.25%Due: 11/07/2018
Purchase 06/22/2018 89113MW2 1,000,000.00 Toronto Dominion NY Yankee CD 100.000 2.70% 1,000,000.00 0.00 1,000,000.00 0.00
2.7%Due:W/07/2019
Purchase 06/22/2018 912796NW 5,000,000.00 US Treasury Bill 99568 1.91% 4,978,416.54 0.00 4,978,416.54 0.00
1.872%Due:09/13/2018
Purchase OB/2]Y2018 313385C87 5,000,000.00 FHLB Discount Note 99706 1.92% 4,985,300.00 0.00 4,985,300.00 0.00
1.89%Due:08/22/2018
C�l't Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 March 31, 2018 through June 30, 2018
Transaction Battlement Acq/Disp Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss
Purchase 06/2912018 31M85D29 2,755,000.00 FHLB Discount Note 99]06 1.92% 2,746,90030 0.00 2,746,900.30 0.00
1.89%Due:08/2412018
Subtotal 190,670,000.00 170,052,291.25 188,920.99 170,241,212.24 0.00
TOTAL ACQUISITIONS 170,670,000.00 170,052,291.25 188,920.99 170,241,212.24 0.00
Call 0612512018 80851SAJ4 930,000.00 Charles Schwab Corp Callable Note Cont 6/25/2018 100.000 2.20% 930,000.00 8.524.94 938,524.94 -234.08
2.2%Due:07I25I2018
Subtotal 930,000.00 930,000.00 8,524.94 938,524.94 -234.08
Maturity 04/09/2018 3137EAI A W0,000.00 FHLMC Note 100.000 800,000.00 0.00 800,000.00 0.00
0.75%Due:0410912018
Maturity 04/25/2018 313385VZ6 2,500,000.00 FHLB Discount Note 100.000 2,500,000.00 0.00 2,500,000.00 0.00
1 685%Due:04/25/2018
Maturity 05109/2018 313385WP 10,000,000.00 FHLB Discount Note 100.000 10.000.000.00 0.00 10,000,000.00 0.00
1.655%Due:05/09/2018
Maturity 0511512018 084664BEO 1,000,000.00 Berkshire Hathaway Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00
5.4%Due:0511512018
Maturity 0511512018 46625HJL5 1,250,000.N JP Morgan Chase Note 100.000 1,250,000.00 0.00 1,2W,000.00 0.00
1.625%Due:0511SQ018
Maturity 0511512018 8574T`AK9 2,100,000A0 State Street Bank Note 100.000 2,100,000.00 0.00 2,100,000.00 0.00
1.35%Due:0511512018
Maturity 0511812018 M933YAGO 1,000,0m.N Merck 8 Cc Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00
1.3%Due:051IW2018
Maturity 05/24/2018 69372BE09 1,500000.W Paccar Financial Discount CP 1.85%Due:0512412018 88.553 1,500,000.00 0.00 1,500,000.00 0.00
Maturity 05/31/2018 912828VE7 8,000,000.00 US Treasury Note 100.000 8,000,000.00 0.00 8,000,000.00 0.00
1%Due:05/31/2018
Maturity 06/0112018 717081DW0 1,000,0W.W N.,Inc.Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00
1.2%Due:W10112018
Maturity 06/05/2018 06050TMC3 1,000,00060 Bank of America Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00
1.75%Due:06/05/2018
C�l't Transaction Ledger
Orange County Sanitation District Liquid -Account #10282 March 31, 2018 through June 30, 2018
Transaction S."I.pamt Acq/Diap Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss
Maturity 06106/2018 459053XT6 10,000,000.00 Ind Bank Rerun 8 Development Discount Note 1.82%Due 0610612018 100.000 10,000,000.00 0.00 10,000,000.00 0.00
'
Maturity 06I13I2018 06538CFD8 1,855,000A0 Bank of Tokyo Mbubishl NV Discount CP 99.463 1,855,000.00 0.00 1,855,000.00 0.00
2.1%Due:06/13/2018
Maturity OW1412018 313385VB6 20,960,000.00 FHLB Discount Note 100.000 20,960,000.00 0.00 20,960,000.00 0.00
1.69%Due:O6I14I2018
Maturity OW1412018 89233HFE9 1,800,000.00 Toyota Motor Credit Discount CP 99.362 1,800,000.00 0.00 1,800,000.00 0.00
1.93%Due:O6I14I2018
Maturity 06/14/2018 912796PL7 24,000,000.00 US Treasury Bill 100.000 24.000.000.00 0.00 24,000,000.00 0.00
1.554%Due:06/14/2018
Maturity 0611512018 17275RAU6 1,000,000.00 Cisco Systems Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00
1.65%Due:O6I15I2018
Maturity 0611512018 45950KBX7 2,500,000.00 International Finance Corp Note 100.000 2,500,000.00 0.00 2,500,000.00 0.00
0.875%Due:06115Y 018
Subtotal 92,265,000.00 92,265,000.00 0.00 92,265,000.00 0.00
TOTAL DISPOSITIONS 93,195.000.00 93,195,000.00 8,524.94 93,203,524.94 -234.08
IJJJ � Disclosure
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Rating Agency Comparisons
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Quality/Grade Mood '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
Moodv's - Investment Grade
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degree of investment risk. Interest payments are protected by a large or by an
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"A" - Bonds which are rated A possess many favorable investment attributes and are to
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interest are considered adequate, but elements may be present which suggest a
susceptibility to impairment sometime in the future.
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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 Retina
Debt rated "BB", "B", "CCC", "CC" and "C" is regarded as having predominantly
speculative characteristics with respect to capacity to pay interest and repay principal.
"BB" indicates the least degree of speculation and "C" the highest. While such debt will
likely have some quality and protective characteristics these are outweighed by major
uncertainties or major exposures to adverse conditions.
BB - Debt rated "BB" has less near-term vulnerability to default than other speculative
issues. However, it faces major ongoing uncertainties or exposure to adverse business,
financial, or economic conditions which could lead to inadequate capacity to meet timely
interest and principal payments. The "BB" rating category is also used for debt
subordinated to senior debt that is assigned an actual or implied "BBB" rating.
B - Debt rated "B" has a greater vulnerability to default but currently has the capacity to
meet interest payments and principal repayments. Adverse business, financial, or
economic conditions will likely impair capacity or willingness to pay interest and repay
principal. The "B" rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied "BB" or"BB" rating.
CCC - Debt rated "CCC' has a currently identifiable vulnerability to default, and is
dependent upon favorable business, financial, and economic conditions to meet timely
payment of interest and repayment of principal. In the event of adverse business,
financial, or economic conditions, it is not likely to have the capacity to pay interest and
repay principal. The "CCC' rating category is also used for debt subordinated to senior
debt that is assigned an actual or implied "B" or"B" rating.
CC - The rating "CC' typically is applied to debt subordinated to senior debt that is
assigned an actual or implied "CCC' debt rating.
C-The rating"C'typically is applied to debt subordinated to senior debt which is assigned
an actual or implied "CCC" debt rating. The "C' rating may be used to cover a situation
where a bankruptcy petition has been filed, but debt service payments are continued.
Cl -The rating "Cl" is reserved for income bonds on which no interest is being paid.
D - Debt rated "D" is in payment default. The "D" rating category is used when interest
payments or principal payments are not made on the date due even if the applicable grace
period has not expired, unless S&P believes that such payments will be made during such
grace period. The "D" rating also will be used upon the filing of a bankruptcy petition if
debt service payments are jeopardized.
Plus (+) or Minus (-) - The ratings from "AA" to "CCC' may be modified by the addition
of a plus or minus sign to show relative standing within the major rating categories.
NR-Indicates no rating has been requested,that there is insufficient information on which
to base a rating, or that S&P does not rate a particular type of obligation as a matter of
policy.
BOARD OF DIRECTORS Meeting Date TOBE.Of Dir.
-- oB/zz/1B
AGENDA REPORT Item Item
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO
THE PRE-APPROVED OEM SOLE SOURCE LIST
GENERAL MANAGER'S RECOMMENDATION
A. Receive and file Orange County Sanitation District purchases made under the
General Manager's authority for the period of April 1, 2018 to June 30, 2018; and
B. Approve the following additions to the pre-approved OEM Sole Source List for the
period of April 1, 2018 to June 30, 2018:
• BEAMEX - Calibrators and communicators
• M.K. PLASTICS CORPORATION - Flex connectors for foul air fans
• PMWEB - Project management information system software support
RBR - Electronic water quality sensors
• SIEMENS BUILDING MANAGEMENT SYSTEM (BMS) - Maintenance
Technician training for HVAC and Instrumentation departments
TOSHIBA - HVK Circuit Breakers
BACKGROUND
Staff provides the Administration Committee and the Board of Directors quarterly reports
of General Manager approved and executed purchases between $50,000 and $100,000;
maintenance and repair Services Task Orders between $50,000 and $300,000; and
additions to the pre-approved OEM Sole Source List. However, as the Administration
Committee is not scheduled for August, the Orange County Sanitation District's
(Sanitation District) practice is to present a list of purchases directly to the Board.
The list of additions to the pre-approved OEM Sole Source List displays the original
equipment manufacturers (OEM)added this quarter that require sole source procurement
to maintain, service, or replace equipment currently in operation at Sanitation District
facilities, because the parts and/or service can only be provided by the OEM or their
designated representative.
RELEVANT STANDARDS
• Quarterly financial reporting
• Ensure the public's money is wisely spent
Page 1 of 5
PRIOR COMMITTEE/BOARD ACTIONS
December 2016 - Minute Order 12(b) authorized the General Manager to ratify additions
or deletions to the OEM Sole Source list on the General Manager's quarterly approved
purchases agenda report.
ADDITIONAL INFORMATION
In accordance with the Sanitation District's purchasing policy, Ordinance No. OCSD-52,
the General Manager has authority to approve and execute purchases between $50,000
and $100,000. Below is a summary of General Manager approved purchases, in amounts
exceeding $50,000, for the fourth quarter of fiscal year 2017-18:
Vendor Name Amount Department Description/Discussion
ALMEGA Annual Emissions Testing for 8 Internal
ENVIRONMENTAL 150 Environmental Combustion Engines—SCAQMD Rule 304
&TECHNICAL $65, .00 Services Sole Source Justification 1952
SVCS Reason: Unique Product/Service
Convenience Blanket PO for Providing and
CR&R $71,600.00 Operations & Dumping 40 Yard Trash Dumpsters
Maintenance 7/1/18 to 6/30/20
GM Article 2, Section 2.2 (b) (1)
Replacement Suction Valves for Slater
CS-AMSCO $68,130.00 Operations & Pump Station
Maintenance Board Approved OEM Sole Source List
M.O. 12114/16, Item 12
ESRI Enterprise Advantage Program,
including Technical Advisors, Account
ESRI, INC $86,000.00 Administrative Planning, and Quarterly Webcasts
Services 7/1/18 to 6/30/19
Board Approved OEM Sole Source List
M.O. 12/14/16, Item 12
Convenience Blanket PO for
HOME DEPOT $75,000.00 Operations & Miscellaneous Material
Maintenance 7/1/18 to 6/30/20
GM Article 2, Section 2.2 (b) (1)
Page 2 d 5
Vendor Name Amount Department Descri tion/Discussion
INNERLINE Manhole (Closed-Circuit Television) CCTV
ENGINEERING, $91,675.00 Operations & Inspection Services
INC. Maintenance 5/1/18 to 4/30/19
Specification No. 5-2018-921 BD
Three 2018 Ford Transit Connect Vans
NATIONAL AUTO Operations & Approved CORF Budget
FLEET GROUP $86,064.90 Maintenance NJPA Contract 120716-NAF,
in accordance with Ordinance OCSD-52,
Section 2.03 (B) Cooperative Purchases
Three Hewlett Packard Enterprise Servers
NTH GENERATION 314 Administrative NASPO ValuePoint Contract
COMPUTING INC $88, .00 Services 7-15-70-34-002
Board Approved Cooperative Procurement
M.O. 2/22/17, Item 14
Renewal of Nimble Storage CS26OG
NTH GENERATION 408 Administrative Array, Software Support, and InfoSight
COMPUTING INC $59, .00 Services 6/19/18 to 6/18/19
Specification No. JM-102125
Convenience Blanket PO for Classified
ORANGE COUNTY $99000.00 Administrative and Legal Advertising
,
REGISTER Services 7/1/18 to 6/30/19
GM Article 2, Section 2.2 (b) (1)
RAINBOW Convenience Blanket PO for Providing and
DISPOSAL CO., $90,000.00 Operations & Servicing 3 Cubic Yard Dumpsters
INC. Maintenance 7/1/18 to 6/30/20
GM Article 2, Section 2.2 (b) (1)
Convenience Blanket PO for On-Site
SAFETY SHOE $7000000 Human Safety Shoe Service
, .
SERVICES Resources 7/1/18 to 6/30/19
GM Article 2, Section 2.2 (b) (1)
Page 3 d 5
Vendor Name Amount Department Descri tion/Discussion
Maintenance and Calibration Services for
SEA BIRD Environmental Oceanographic Sampling Equipment
ELECTRONICS INC $60,000.00 Services 7/1/18 to 6/30/20
Board Approved OEM Sole Source List
M.O. 12114/16, Item 12
Driveshaft Assembly Designed to
SUEZ TREATMENT $6329932 Operations & Incorporate OCSD's Gearbox
, .
SOLUTIONS, INC. Maintenance Board Approved OEM Sole Source List
M.O. 8/23/17, Item 9
THE SOCO Operations & 8,500 Gallons (Bulk Oil) of Chevron HDAX
GROUP, INC. $76,585.00 Maintenance Low Ash 40 for Plants 1 and 2
Specification No. CV-101433
Convenience Blanket PO for
THOMPSON Operations & Miscellaneous Supplies, Gaskets,
INDUSTRIAL $55,000.00 Maintenance Bearings, and Seals
SUPPLY INC 7/1/18 to 6/30/20
GM Article 2, Section 2.2 (b) (1)
U.S. POSTAL General Convenience Blanket PO for Postage
SERVICE $60,000.00 Manager's 7/1/18 to 6/30120
(HASLER) Office GM Article 2, Section 2.2 (b) (1)
UNITED PARCEL Convenience Blanket PO for UPS Pickup
SERVICE $70,000.00 Administrative and Delivery
CERRITOS CA Services 7/1/18 to 6/30/20
GM Article 2, Section 2.2 (b) (1)
Additionally, in accordance with the Sanitation District's purchasing policy, Ordinance No.
OCSD-52, the General Manager has authority to approve and execute maintenance and
repair Services Task Orders between $50,000 and $300,000. Below is a summary of
General Manager approved maintenance and repair Services Task Orders, in amounts
exceeding $50,000, for the fourth quarter of fiscal year 2017-18:
Page 4 of 5
Vendor Name Amount Department Descri tion/Discussion
JAMISON Digester L Tent Lining Removal at Plant 2
ENGINEERING $94,850.00 Engineering Task Order Bid TOB-2018-952 of
CONTRACTORS Master Service Contract S-2015-700-4
INC
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
N/A
Page 5 of 5
BOARD OF DIRECTORS heeling Dave TO Bd.
/zz/IgOf Dir.
-- og
AGENDA REPORT I em Number I em Number
g
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: SLATER PUMP STATION VALVE REPLACEMENTS, PROJECT NO.
FE16-14
GENERAL MANAGER'S RECOMMENDATION
A. Award a construction contract to PCL Construction, Inc. for the Slater Pump
Station Valve Replacements, Project No. FE16-14,for a total amount not to exceed
$459,674; and
B. Approve a contingency of$45,967 (10%).
BACKGROUND
The Slater Avenue Pump Station is located on Slater Avenue east of Goldenwest Street
and has a peak flow capacity of 29 million gallons per day. The pump station was built in
1998. The type of pumps used are subject to plugging. When a pump is clogged, clearing
a pump requires that the pump's isolation valves must be closed, the blockage removed,
and the valves reopened. If these 16 and 20-inch valves fail, which has been happening
recently, the pump is unavailable for service until the entire pump station can be shut
down to repair the valve. The pump station shutdown requires bypass pumping, which
requires running a temporary discharge pipe across Slater Avenue.
Slater Pump Station Valve Replacement, Project No. FE16-14, will replace the failing
isolation valves and install a tap to facilitate bypass pumping without impacting Slater
Avenue. The engineers estimate for the construction contract does not include the cost
of the valves, which have already been procured to avoid delays.
RELEVANT STANDARDS
• Protect Orange County Sanitation District assets
• 24/7/365 treatment plant reliability
• California Public Contract Code Section 20103.8: Award Construction Contract to
lowest responsive, responsible bidder
PROBLEM
The deteriorated condition of the suction and discharge isolation valves at Slater Pump
Station creates an unsafe environment and no longer supports safe operation of the
pumps.
Page 1 a 3
PROPOSED SOLUTION
The Slater Pump Station Valve Replacements, Project No. FE16-14, will replace the
deteriorated suction and discharge valves to provide safe isolation of the wastewater flow.
TIMING CONCERNS
The project is urgent due to the risk of a valve failure during the upcoming wet season.
RAMIFICATIONS OF NOT TAKING ACTION
Without this project, the pump station will be unavailable for service periodically to repair
the isolation valves.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The Orange County Sanitation District (Sanitation District) advertised for bids on
June 21, 2018, and four sealed bids were received on July 31, 2018. A summary of the
bids follows:
Engineer's Estimate $460,000
Bidder Amount of Bid
PCL Construction, Inc. $459,674
IQA Construction $637,000
JR Filanc $690,867
Griffith Co. $892,000
The bids were evaluated in accordance with the Sanitation District's policies and
procedures. A notice was sent to all the bidders on August 8, 2018, informing them of
the intent of Sanitation District staff to recommend award of the construction contract to
PCL Construction, Inc.
Staff recommends awarding a construction contract to the lowest responsive bidder, PCL
Construction, Inc., for Slater Pump Station Valve Replacements, Project No. FE16-14, for
a total amount not to exceed $459,674.
The difference between the engineer's estimate and low bid price is less than 1% and
staff believes that the bid was reasonable for the work involved.
Page 2 of 3
CEQA
This project is exempt from CEQA under the Class 1 categorical exemptions set forth in
California Code of Regulations Section 15301. Section 15301 (Class 1) exempts from
CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor
alteration of existing public or private structures, facilities, mechanical equipment, or
topographical features, involving negligible or no expansion of use beyond that existing
at the time of the lead agency's determination," including "(b) Existing facilities of both
investor and publicly-owned utilities used to provide electric power, natural gas,
sewerage, or other public utility services."
The project consists of maintenance replacement activities and minor alterations to allow
for the activities at the Slater Pump Station. A Notice of Exemption (NOE) was filed with
the Orange County Clerk-Recorder on November 20, 2017 for this project.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation DistricPs Purchasing
Ordinance. This item has been budgeted under the Small Construction Projects Program
(M-FE), Fiscal Years 2018-19 and 2019-20 budget, and the budget is sufficient for the
recommended action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package:
• Construction Contract
GR:dm:gc
Page 3 of 3
PART A
CONTRACT AGREEMENT
C-CA-090817
TABLE OF CONTENTS
CONTRACT AGREEMENT
SECTION - 1 GENERAL CONDITIONS..................................................................1
SECTION -2 MATERIALS AND LABOR.................................................................4
SECTION -3 PROJECT..........................................................................................4
SECTION -4 PLANS AND SPECIFICATONS ........................................................5
SECTION -5 TIME OF COMMENCEMENT AND COMPLETION ..........................5
SECTION -6 TIME IS OF THE ESSENCE .............................................................5
SECTION -7 EXCUSABLE DELAYS......................................................................6
SECTION -8 EXTRA WORK...................................................................................6
SECTION -9 CHANGES IN PROJECT...................................................................7
SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.............................................7
SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................7
SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF
FUNDS ..............................................................................................9
SECTION - 13 COMPLETION.................................................................................10
SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................10
SECTION - 15 SURETY BONDS ............................................................................12
SECTION - 16 INSURANCE....................................................................................13
SECTION - 17 RISK AND INDEMNIFICATION.......................................................22
SECTION - 18 TERMINATION................................................................................22
SECTION - 19 WARRANTY....................................................................................23
SECTION -20 ASSIGNMENT.................................................................................24
SECTION -21 RESOLUTION OF DISPUTES ........................................................24
SECTION -22 SAFETY& HEALTH ........................................................................24
SECTION -23 NOTICES.........................................................................................25
C-CA-090817
CONTRACT AGREEMENT
ORANGE COUNTY SANITATION DISTRICT
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
THIS AGREEMENT is made and entered into, to be effective, this August 22, 2018, by and
between PCL Construction, Inc., hereinafter referred to as "CONTRACTOR" and the Orange
County Sanitation District, hereinafter referred to as "OCSD".
WITNESSETH
That for and in consideration of the promises and agreements hereinafter made and exchanged,
OCSD and CONTRACTOR agree as follows:
SECTION-1 GENERAL CONDITIONS
CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the
Contract Documents as hereinafter defined, the location of the job site, and the conditions under
which the Work is to be performed have been thoroughly reviewed, and enters into this Contract
based upon CONTRACTOR's investigation of all such matters and is in no way relying upon
any opinions or representations of OCSD. It is agreed that this Contract represents the entire
agreement. It is further agreed that the Contract Documents are each incorporated into this
Contract by reference, with the same force and effect as if the same were set forth at length
herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any
and all of said Contract Documents insofar as they relate in any part or in any way, directly or
indirectly, to the Work covered by this Contract.
A. Contract Documents Order of Precedence
"Contract Documents" refers to those documents identified in the definition of"Contract
Documents" in the General Conditions—Definitions.
CONFORMED C-CA-090817
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 1 of 26
1. In the event of a conflict between one Contract Document and any of the other
Contract Documents, the provisions in the document highest in precedence shall be
controlling. The order of precedence of the Contract Documents is as follows:
a. Supplemental Agreements—the last in time being the first in precedence
b. Addenda issued prior to opening of Bids—the last in time being the first in
precedence
c. Contract Agreement
d. Permits and other regulatory requirements
e. Special Provisions
f. General Conditions (GC)
g. Notice Inviting Bids and Instruction to Bidders
h. Geotechnical Baseline Report(GBR), if attached as a Contract Document
I. Plans and Specifications—in these documents the order of precedence shall be:
i. Specifications (Divisions 01-17)
ii. Plans
H. General Requirements (GR)
iv. Standard Drawings and Typical Details
j. CONTRACTOR'S Bid
2. In the event of a conflict between terms within an individual Contract Document, the
conflict shall be resolved by applying the following principles as appears applicable:
a. Figured dimensions on the Contract Documents shall govern. Dimensions not
specified shall be as directed by the ENGINEER. Details not shown or
specified shall be the same as similar parts that are shown or specified, or as
C-CA-090817 CONFORMED
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 2 of 26
directed. Full-size details shall take precedence over scale Drawings as to
shape and details of construction. Specifications shall govern as to material
and workmanship.
b. The Contract Documents calling for the higher quality material or workmanship
shall prevail. Materials or Work described in words, which so applied, have a
well known technical or trade meaning shall be deemed to refer to such
recognized standards. In the event of any discrepancy between any Drawings
and the figures thereon, the figures shall be taken as correct.
C. Scale Drawings, full-size details, and Specifications are intended to be fully
complementary and to agree. Should any discrepancy between Contract
Documents come to the CONTRACTOR's attention, or should an error occur in
the efforts of others, which affect the Work, the CONTRACTOR shall notify the
ENGINEER, in writing, at once. In the event any doubts or questions arise with
respect to the true meaning of the Contract Documents, reference shall be
made to the ENGINEER whose written decision shall be final. If the
CONTRACTOR proceeds with the Work affected without written instructions
from the ENGINEER, the CONTRACTOR shall be fully responsible for any
resultant damage or defect.
d. Anything mentioned in the Specifications and not indicated in the Plans, or
indicated in the Plans and not mentioned in the Specifications, shall be of like
effect as if indicated and mentioned in both. In case of discrepancy in the
Plans or Specifications, the matter shall be immediately submitted to OCSD's
ENGINEER, without whose decision CONTRACTOR shall not adjust said
discrepancy save only at CONTRACTOR's own risk and expense. The
decision of the ENGINEER shall be final.
CONFORMED C-CA-090817
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 3 of 26
In all matters relating to the acceptability of material, machinery or plant equipment;
classifications of material or Work; the proper execution, progress or sequence of the
Work; and quantities interpretation of the Contract Documents, the decision of the
ENGINEER shall be final and binding, and shall be a condition precedent to any payment
under the Contract, unless otherwise ordered by the Board of Directors.
B. Definitions
Capitalized terms used in this Contract are defined in the General Conditions, Definitions.
Additional terms may be defined in the Special Provisions.
SECTION—2 MATERIALS AND LABOR
CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at
CONTRACTOR'S own expense, all labor and materials necessary, except such as are
mentioned in the Specifications to be furnished by OCSD, to construct and complete the
Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or
materials when due, OCSD may settle such claims by making demand upon the Surety to this
Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may
settle them directly and deduct the amount of payments from the Contract Price and any
amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any
laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to
deduct all of its costs and expenses incurred relating thereto, including but not limited to
administrative and legal fees.
SECTION-3 PROJECT
The Project is described as:
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
C-CA-090817 CONFORMED
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 4 of 26
SECTION -4 PLANS AND SPECIFICATONS
The Work to be done is shown in a set of Plans and Specifications entitled:
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Said Plans and Specifications and any revision, amendments and addenda thereto are attached
hereto and incorporated herein as part of this Contract and referred to by reference.
SECTION—5 TIME OF COMMENCEMENT AND COMPLETION
CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth
in the "Notice to Proceed"sent by OCSD, unless otherwise specified therein and shall diligently
prosecute the Work to completion within one hundred twenty (120)calendar days from the date
of the "Notice to Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as
set forth in Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions.
The time for completion includes fourteen (14) calendar days determined by OCSD likely to be
inclement weather when CONTRACTOR will be unable to work.
SECTION—6 TIME IS OF THE ESSENCE
Time is of the essence of this Contract. As required by the Contract Documents,
CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples,
and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in
conformance with an approved construction progress schedule. CONTRACTOR shall
coordinate the Work covered by this Contract with that of all other contractors, subcontractors
and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and
accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with
Section 5 herein. OCSD shall have the right to assert complete control of the premises on
which the Work is to be performed and shall have the right to decide the time or order in which
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the various portions of the Work shall be installed or the priority of the work of subcontractors,
and, in general, all matters representing the timely and orderly conduct of the Work of
CONTRACTOR on the premises.
SECTION—7 EXCUSABLE DELAYS
CONTRACTOR shall only be excused for any delay in the prosecution or completion of the
Project as specifically provided in General Conditions, "Extensions for Delay", and the General
Requirements, "By CONTRACTOR or Others—Unknown Utilities during Contract Work".
Extensions of time and extra compensation arising from such excusable delays will be
determined in accordance with the General Conditions, "Extension of Time for Delay" and
"Contract Price Adjustments and Payments", and extensions of time and extra compensation as
a result of incurring undisclosed utilities will be determined in accordance with General
Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work".
OCSD's decision will be conclusive on all parties to this Contract.
SECTION—8 EXTRA WORK
The Contract Price as set forth in Section 11, includes compensation for all Work performed by
CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated
representative of OCSD specifying the exact nature of the Extra Work and the amount of extra
compensation to be paid all as more particularly set forth in Section 9 hereof and the General
Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated
Changes", and "Contract Price Adjustments and Payments".
In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD
shall extend the time fixed in Section 5 for completion of the Project by the number of days, if
any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by
OCSD's ENGINEER. The decision of the ENGINEER shall be final.
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SECTION-9 CHANGES IN PROJECT
OCSD may at any time, without notice to any Surety, by Change Order, make any changes in
the Work within the general scope of the Contract Document, including but not limited to
changes:
1. In the Specifications (including Drawings and designs);
2. In the time, method or manner of performance of the Work;
3. In OCSD-furnished facilities, equipment, materials, services or site; or
4. Directing acceleration in the performance of the Work.
No change of period of performance or Contract Price, or any other change in the Contract
Documents, shall be binding until the Contract is modified by a fully executed Change Order.
All Change Orders shall be issued in accordance with the requirements set forth in the General
Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and "OWNER
Initiated Changes'.
SECTION-10 LIQUIDATED DAMAGES FOR DELAY
Liquidated Damages shall be payable in the amounts and upon the occurrence of such events
or failure to meet such requirements or deadlines as provided in the Special Provisions,
"Liquidated Damages and Incentives."
SECTION—11 CONTRACT PRICE AND METHOD OF PAYMENT
A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the
faithful performance of this Contract, subject to any additions or deductions as provided in
approved Change Orders, the sum of Four Hundred Fifty-Nine Thousand Six Hundred
Seventy-Four Hundred Dollars ($459,674) as itemized on the Attached Exhibit"A".
Upon satisfaction of the conditions precedent to payment set forth in the General
Requirements, Additional General Requirements and General Conditions (including but
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not limited to Sections entitled "Mobilization Payment Requirements" and "Payment
Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the
CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the
commencement of the job a schedule which shows:
1. A minimum of one payment to be made to the CONTRACTOR for each successive
four(4)week period as the Work progresses, and
2. The due dates for the CONTRACTOR to submit requests for payment to meet the
payment schedule.
After the initial Net Progress Payment, and provided the CONTRACTOR submits the
request for payment prior to the end of the day required to meet the payment schedule,
the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly
payment date set forth in the schedule.
Payments shall be made on demands drawn in the manner required by law, accompanied
by a certificate signed by the ENGINEER, stating that the Work for which payment is
demanded has been performed in accordance with the terms of the Contract Documents,
and that the amount stated in the certificate is due under the terms of the Contract.
Payment applications shall also be accompanied with all documentation, records, and
releases as required by the Contract, Exhibit A, Schedule of Prices, and General
Conditions, "Payment for Work—General". The Total amount of Progress Payments shall
not exceed the actual value of the Work completed as certified by OCSD's ENGINEER.
The processing of payments shall not be considered as an acceptance of any part of the
Work.
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B. As used in this Section, the following defined terms shall have the following meanings:
1. "Net Progress Payment" means a sum equal to the Progress Payment less the
Retention Amount and other qualified deductions (Liquidated Damages, stop
payment notices, etc.).
2. "Progress Payment" means a sum equal to:
a. the value of the actual Work completed since the commencement of the Work
as determined by OCSD;
b. plus the value of material suitably stored at the worksite, treatment plant or
approved storage yards subject to or under the control of OCSD since the
commencement of the Work as determined by OCSD;
C. less all previous Net Progress Payments;
d. less all amounts of previously qualified deductions;
e. less all amounts previously retained as Retention Amounts.
3. "Retention Amount"for each Progress Payment means the percentage of each
Progress Payment to be retained by OCSD to assure satisfactory completion of the
Contract. The amount to be retained from each Progress Payment shall be
determined as provided in the General Conditions—"Retained Funds; Substitution of
Securities."
SECTION—12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS
Pursuant to Public Contract Code Section 22300 at seq., the CONTRACTOR may, at its sole
expense, substitute securities as provided in General Conditions—"Retained Funds;
Substitution of Securities."
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SECTION—13 COMPLETION
Final Completion and Final Acceptance shall occur at the time and in the manner specified in the
General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A-
Schedule of Prices.
Upon receipt of all documentation, records, and releases as required by the Contract from the
CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General
Conditions.
SECTION-14 CONTRACTOR'S EMPLOYEES COMPENSATION
A. Davis-Bacon Act:
CONTRACTOR will pay and will require all Subcontractors to pay all employees on said
Project a salary or wage at least equal to the prevailing rate of per diem wages as
determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each
craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon
Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and
when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If
the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be
complied with are incorporated herein as a part of this Contract and referred to by
reference.
B. General Prevailing Rate:
OCSD has been advised by the State of California Director of Industrial Relations of its
determination of the general prevailing rate of per diem wages and the general prevailing
rate for legal holiday and overtime Work in the locality in which the Work is to be
performed for each craft or type of Work needed to execute this Contract, and copies of
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the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR
agrees that not less than said prevailing rates shall be paid to workers employed on this
public works Contract as required by Labor Code Section 1774 of the State of California.
Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of
per diem wages at its principal office and at each job site, which shall be made available to
any interested party upon request.
C. Forfeiture for Violation:
CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for
each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or
any Subcontractor under it) less than the prevailing rate of per diem wages as set by the
Director of Industrial Relations, in accordance with Sections 1770-1780 of the California
Labor Code for the Work provided for in this Contract, all in accordance with Section 1775
of the Labor Code of the State of California.
D. Apprentices:
Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding
the employment of apprentices are applicable to this Contract and the CONTRACTOR
shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00)
or more.
E. Workday:
In the performance of this Contract, not more than eight(8) hours shall constitute a day's
work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day
from any person employed by him hereunder except as provided in paragraph (B) above.
CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at sea.)of the
Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of
Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by
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CONTRACTOR or any Subcontractor for each calendar day during which any worker is
required or permitted to labor more than eight (8) hours in any one calendar day and forty
(40) hours in any one week in violation of said Article. CONTRACTOR shall keep an
accurate record showing the name and actual hours worked each calendar day and each
calendar week by each worker employed by CONTRACTOR in connection with the
Project.
F. Registration: Record of Waoes: Inspection:
CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5.
Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the
California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll
records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code
Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may
be deducted from progress payments per Section 1776.
CONTRACTOR shall comply with the job site notices posting requirements established by
the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a).
SECTION—15 SURETY BONDS
CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds
approved by OCSD's General Counsel—one in the amount of one hundred percent(100%)of
the Contract amount, to guarantee the faithful performance of the Work, and the other in the
amount of one hundred percent (100%)of the Contract amount to guarantee payment of all
claims for labor and materials furnished. As changes to the Contract occur via approved
Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to
maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds
are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the
State Insurance Commissioner to do business in California. The Performance Bond shall
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remain in full force and effect through the warranty period, as specified in Section 19 below. All
Bonds required to be submitted relating to this Contract must comply with California Code of
Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety
insurer under penalty of perjury, or the fact of execution of each Bond shall be duly
acknowledged before an officer authorized to take and certify acknowledgments, and either one
of the following conditions shall be satisfied:
A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by-
laws, or other instrument, duly certified by the proper authority and attested by the seal of
the insurer entitling or authorizing the person who executed the Bond to do so for and on
behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or
B. A copy of a valid power of attorney is attached to the Bond.
SECTION — 16 INSURANCE
CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against
claims for injuries to persons, or damages to property which may arise from or in connection
with the performance of the Work hereunder, and the results of that Work by CONTRACTOR,
its agents, representatives, employees, or Subcontractors, in amounts equal to the
requirements set forth below. CONTRACTOR shall not commence Work under this Contract
until all insurance required under this Section is obtained in a form acceptable to OCSD, nor
shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all
insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all
of the foregoing insurance coverages in force through the point at which the Work under this
Contract is fully completed and accepted by OCSD pursuant to the provisions of the General
Conditions, "Final Acceptance and Final Completion'. Furthermore, CONTRACTOR shall
maintain all of the foregoing insurance coverages in full force and effect throughout the warranty
period, commencing on the date of Final Acceptance. The requirement for carrying the
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foregoing insurance shall not derogate from the provisions for indemnification of OCSD by
CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the
obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for
and maintain in full force and effect during the life of this Contract, inclusive of all changes to the
Contract Documents made in accordance with the provisions of the General Conditions,
"Request for Change (Changes at CONTRACTOR's Request)" and/or"OWNER Initiated
Changes", the following insurance in amounts not less than the amounts specified. OCSD
reserves the right to amend the required limits of insurance commensurate with the
CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter
OCSD premises/worksite without oossessina the required insurance coveraae.
CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by
agencies from whom permits shall be obtained for the Work and any other third parties from
whom third party agreements are necessary to perform the Work (collectively, the "Third
Parties'), The Special Provisions may list such requirements and sample forms and
requirements from such Third Parties may be included in an attachment to the General
Requirements. CONTRACTOR bears the responsibility to discover and comply with all
requirements of Third Parties, including meeting specific insurance requirements, that are
necessary for the complete performance of the Work. To the extent there is a conflict between
the Third Parties' insurance requirements and those set forth by OCSD herein, the
requirement(s) providing the more protective coverage for both OSCD and the Third Parties
shall control and be purchased and maintained by CONTRACTOR.
A. Limits of Insurance
1. General Liability: Five Million Dollars ($5,000,000) per occurrence and a general
aggregate limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury
and property damage. Coverage shall include each of the following:
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a. Premises-Operations.
b. Products and Completed Operations, with limits of at least Five Million Dollars
($5,000,000) per occurrence and a general aggregate limit of Five Million
Dollars ($5,000,000)which shall be in effect at all times during the warranty
period set forth in the Warranty section herein, and as set forth in the General
Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any additional
extension or continuation of time to said warranty period that may be required
or authorized by said provisions.
C. Broad Form Property Damage, expressly including damage arising out of
explosion, collapse, or underground damage.
d. Contractual Liability, expressly including the indemnity provisions assumed
under this Contract.
e. Separation of Insured Clause, providing that coverage applies separately to
each insured, except with respect to the limits of liability.
f. Independent CONTRACTOR's Liability.
To the extent first dollar coverage, including defense of any claim, is not
available to OCSD or any other additional insured because of any SIR,
deductible, or any other form of self insurance, CONTRACTOR is obligated to
assume responsibility of insurer until the deductible, SIR or other condition of
insurer assuming its defense and/or indemnity has been satisfied.
CONTRACTOR shall be responsible to pay any deductible or SIR.
g. If a crane will be used, the General Liability insurance will be endorsed to add
Riggers Liability coverage or its equivalent to cover the usage of the crane and
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exposures with regard to the crane operators, riggers and others involved in
using the crane.
h. If divers will be used, the General Liability insurance will be endorsed to cover
marine liability or its equivalent to cover the usage of divers.
2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile
Liability Insurance on a comprehensive form covering all owned, non-owned, and
hired automobiles, trucks, and other vehicles providing the following minimum limits
of liability coverage:
Either(1)a combined single limit of Two Million Dollars ($2,000,000) and a general
aggregate limit of Two Million Dollars ($2,000,000)for bodily injury, personal injury
and property damage;
Or alternatively, (2) Two Million Dollars ($2,000,000) per person for bodily injury and
Two Million Dollars ($2,000,000) per accident for property damage.
3. Umbrella Excess Liability: The minimum limits of general liability and automobile
liability insurance required, as set forth above, shall be provided for either in a single
policy of primary insurance or a combination of policies of primary and umbrella
excess coverage. Excess liability coverage shall be issued with limits of liability
which, when combined with the primary insurance, will equal the minimum limits for
general liability and automobile liability.
4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be
maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a
form acceptable by OCSD.
5. Worker's Compensation/Employer's Liability: CONTRACTOR shall provide such
Worker's Compensation Insurance as required by the Labor Code of the State of
California, including employers liability with a minimum limit of One Million Dollars
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($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act
liability may exist, the insurance required herein shall include coverage with regard to
Jones Act claims.
Where permitted by law, CONTRACTOR hereby waives all rights of recovery by
subrogation because of deductible clauses, inadequacy of limits of any insurance
policy, limitations or exclusions of coverage, or any other reason against OCSD, its
or their officers, agents, or employees, and any other contractor or subcontractor
performing Work or rendering services on behalf of OCSD in connection with the
planning, development and construction of the Project. In all its insurance coverages
related to the Work, CONTRACTOR shall include clauses providing that each insurer
shall waive all of its rights of recovery by subrogation against OCSD, its or their
officers, agents, or employees, or any other contractor or subcontractor performing
Work or rendering services at the Project. Where permitted by law, CONTRACTOR
shall require similar written express waivers and insurance clauses from each of its
Subcontractors of every tier. A waiver of subrogation shall be effective as to any
individual or entity, even if such individual or entity (a)would otherwise have a duty
of indemnification, contractual or otherwise, (b)did not pay the insurance premium,
directly or indirectly, and (c)whether or not such individual or entity has an insurable
interest in the property damaged.
6. Pollution Liability Insurance: CONTRACTOR shall purchase and maintain insurance
for pollution liability covering bodily injury, property damage (including loss of use of
damaged property or property that has not been physically injured or destroyed),
cleanup costs, and defense costs (including costs and expenses for investigation,
defense, or settlement of claims). Coverage shall carry limits of at least Two Million
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Dollars ($2,000,000) and shall apply to sudden and non-sudden pollution conditions
(including sewage spills), both at the site or needed due to migration of pollutants
from the site, resulting from the escape or release of smoke, vapors, fumes, acids,
alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants,
contaminants or pollutants.
If CONTRACTOR provides coverage written on a claims-made basis, OCSD has the
right to approve or reject such coverage in its own discretion. If written on a claims-
made basis, the CONTRACTOR warrants that any retroactive date applicable to
coverage under the policy precedes the effective date of this Contract, and that
continuous coverage will be maintained, or an extended discovery period will be
exercised, for a period of two years beginning from the time that the Project under
this Contract is completed.
7. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums
shown in this Section, OCSD requires and shall be entitled to coverage for the higher
limits maintained by the CONTRACTOR.
B. Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by OCSD. At
the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and
employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD
guaranteeing payment of losses and related investigations, claim administration, and
defense expenses.
C. Other Insurance Provisions
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1. Each such policy of General Liability Insurance and Automobile Liability Insurance
shall be endorsed to contain, the following provisions:
a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all
public agencies from whom permits will be obtained, and their Directors,
officers, agents, and employees are hereby declared to be additional insureds
under the terms of this policy, but only with respect to the operations of
CONTRACTOR at or from any of the sites of OCSD in connection with this
Contract, or acts and omissions of the additional insured in connection with its
general supervision or inspection of said operations related to this Contract.
b. Insurance afforded by the additional insured endorsement shall apply as
primary insurance, and other insurance maintained by OCSD shall be excess
only and not contributing with insurance provided under this policy.
2. Each insurance policy required herein shall be endorsed to state that coverage shall
not be cancelled by either party, except after thirty(30) days prior written notice by
certified mail, return receipt requested, and that coverage shall not be cancelled for
non-payment of premium except after ten (10)days prior written notice by certified
mail, return receipt requested. Should there be changes in coverage or an increase
in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript
endorsement from its insurer giving 30 days prior notice of such an event to OCSD,
or to have its insurance broker/agent send to OCSD a certified letter describing the
changes in coverage and any increase in deductible or SIR amounts. The certified
letter must be sent Attention: Risk Management and shall be received not less than
twenty (20)days prior to the effective date of the change(s). The letter must be
signed by a Director or Officer of the broker/agent and must be on company
letterhead, and may be sent via e-mail in pdf format.
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3. Coverage shall not extend to any indemnity coverage for the active negligence of
any additional insured in any case where an agreement to indemnify the additional
insured would be invalid under California Civil Code Section 2782(b).
4. If required by a public agency from whom permit(s)will be obtained, each policy of
General Liability Insurance and Automobile Liability Insurance shall be endorsed to
specify by name the public agency and its legislative members, officers, agents,
CONSULTANTS, and employees, to be additional insureds.
D. Acceptability of Insurers
Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at
least Class Vill, or better, in accordance with the most current A.M. Best Rating Guide.
OCSD recognizes that State Compensation Insurance Fund has withdrawn from
participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept
State Compensation Insurance Fund for the required policy of worker's compensation
insurance, subject to OCSD's option, at any time during the term of this Contract, to
require a change in insurer upon twenty (20)days written notice. Further, OCSD will
require CONTRACTOR to substitute any insurer whose rating drops below the levels
herein specified. Said substitution shall occur within twenty (20)days of written notice to
CONTRACTOR by OCSD or its agent.
E. Verification of Coverage
CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements
affecting coverage. Said policies and endorsements shall conform to the requirements
herein stated. All certificates and endorsements are to be received and approved by
OCSD before Work commences. OCSD reserves the right to require complete, certified
copies of all required insurance policies, including endorsements, affecting the coverage
required by these Specifications at any time.
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F. Subcontractors
CONTRACTOR shall be responsible to establish insurance requirements for any
Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types
reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations
and work. OCSD and any public agency issuing permits for the Project must be named as
"Additional Insured"on any General Liability or Automobile Liability policy obtained by a
Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of
all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting
coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced
required documents.
G. Required Forms and Endorsements
1. Required ACORD Form
a. Certificate of Liability Form 25
2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are
shown, they are listed in order of preference)
In the event any of the following forms are cancelled by Insurance Services Office,
Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied.
a. Commercial General Liability Form CG-0001 10 01
b. Additional Insured Including Form CG-2010 10 01 and
Products-Completed Operations Form CG-2037 10 01
C. Waiver of Transfer of Rights of Form CG-2404 11 85; or
Recovery Against Others to Us/ Form CG-2404 10 93
Waiver of Subrogation
3. Required State Compensation Insurance Fund Endorsements
a. Waiver of Subrogation Endorsement No. 2570
b. Cancellation Notice Endorsement No. 2065
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4. Additional Required Endorsements
a. Notice of Policy Termination Manuscript Endorsement
5. Pollution Liability Endorsements
There shall be a Separation of Insured Clause or endorsement, providing that
coverage applies separately to each insured, except with respect to the limits of
liability. There shall also be an endorsement or policy language containing a waiver
of subrogation rights on the part of the insurer.
OCSD, its directors, officers, agents, CONSULTANTS and employees and all public
agencies from whom permits will be obtained as well as their directors, officers,
agents, and employees shall be included as insureds under the policy. Any
additional insured endorsement shall contain language at least as broad as the
coverage language contained in ISO form CG 20 10 11 85 or alternatively in both
CG 20 10 10 01 and CG 20 37 10 01 together.
SECTION — 17 RISK AND INDEMNIFICATION
All Work covered by this Contract done at the site of construction or in preparing or delivering
materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save,
indemnify, defend, and keep OCSD and others harmless as more specifically set forth in
General Conditions, "General Indemnification".
SECTION-18 TERMINATION
This Contract may be terminated in whole or in part in writing by OCSD in the event of
substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may
be terminated by OCSD for its convenience provided that such termination is effectuated in a
manner and upon such conditions set forth more particularly in General Conditions,
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"Termination for Default" and/or"Termination for Convenience", provided that no termination
may be effected unless proper notice is provided to CONTRACTOR at the time and in the
manner provided in said General Conditions. If termination for default or convenience is
effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be
made at the time and in the manner provided in the General Conditions, "Termination for
Default" and "Termination for Convenience".
SECTION—19 WARRANTY
The CONTRACTOR agrees to perform all Work under this Contract in accordance with the
Contract Documents, including OCSD's designs, Drawings and Specifications.
The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final
Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final
Completion" that the completed Work is free from all defects due to faulty materials, equipment
or workmanship and that it shall promptly make whatever adjustments or corrections which may
be necessary to cure any defects, including repairs of any damage to other parts of the system
resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of
observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs,
corrections or other work made necessary by such defects, OCSD may do so and charge the
CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any
corrected deficiency until the later of(1)the remainder of the original one-year warranty period;
or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and
the Payment Bond shall remain in full force and effect through the guarantee period.
The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's
CONFORMED C-CA-090817
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 23 of 26
other express or implied assurances under this Contract, including but not limited to specific
manufacturer or other extended warranties specified in the Plans and Specifications, or state
law and in no way diminish any other rights that OCSD may have against the CONTRACTOR
for faulty materials, equipment or Work.
SECTION-20 ASSIGNMENT
No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be
received hereunder, will be recognized by OCSD unless such assignment has had prior written
approval and consent of OCSD and the Surety.
SECTION—21 RESOLUTION OF DISPUTES
OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract
Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which
arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims
provisions as set forth in the General Conditions and as otherwise required by law.
SECTION—22 SAFETY & HEALTH
CONTRACTOR shall comply with all applicable safety and health requirements mandated by
federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as
well as these Contract Documents, including but not limited to the General Requirements,
Section entitled "Safety" and Exhibit B OCSD Safety Standards.
C-CA-090817 CONFORMED
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 24 of 26
SECTION-23 NOTICES
Any notice required or permitted under this Contract may be given by ordinary mail at the
address set forth below. Any party whose address changes shall notify the other party in
writing.
TO OCSD: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Clerk of the Board
Copy to: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Construction Manager
Bradley R. Hogin, Esquire
Woodruff, Spradlin & Smart
555 Anton Boulevard
Suite 1200
Costa Mesa, California 92626
TO CONTRACTOR: PCL Construction, Inc.
3750 Schaufele Avenue, Suite 270
Long Beach, CA 90808
Copy to: Mike McKinney, President
PCL Construction, Inc.
3750 Schaufele Avenue, Suite 270
Long Beach, CA 90808
CONFORMED C-CA-090817
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 25 of 26
IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the
date first hereinabove written.
CONTRACTOR: PCL Construction, Inc.
3750 Schaufele Avenue, Suite 270
Long Beach, CA 90808
By
Printed Name
Its
CONTRACTOR's State License No. 913592 (Expiration Date—4/30/2020)
OCSD: Orange County Sanitation District
By
Gregory C. Sebourn, PLS
Chair, Board of Directors
By
Kelly A. Lore
Clerk of the Board
By
Marc Dubois
Contracts, Purchasing and Materials
Management Manager
C-CA-090817 CONFORMED
PROJECT NO. FE16-14
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Page 26 of 26
EXHIBIT A
SCHEDULE OF PRICES
C-EXA-080414
TABLE OF CONTENTS
EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION.............................................................................1
EXA-2 PROGRESS PAYMENTS ..................................................................................1
EXA-3 RETENTION AND ESCROW ACCOUNTS........................................................1
EXA-4 STOP PAYMENT NOTICE.................................................................................3
EXA-5 PAYMENT TO SUBCONTRACTORS................................................................3
EXA-6 PAYMENT OF TAXES .......................................................................................3
EXA-7 FINAL PAYMENT...............................................................................................4
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT...6
ATTACHMENT 1 -CERTIFICATION FOR REQUEST FOR PAYMENT.........................7
ATTACHMENT 2-SCHEDULE OF PRICES...................................................................8
C-EXA-080414
EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION
CONTRACTOR will be paid the Contract Price according to the Schedule of
Prices, and all other applicable terms and conditions of the Contract
Documents.
EXA-2 PROGRESSPAYMENTS
Progress payments will be made in accordance with all applicable terms and
conditions of the Contract Documents, including, but not limited to:
1. Contract Agreement—Section 11 —"Contract Price and Method of
Payment;"
2. General Conditions—"Payment—General";
3. General Conditions—"Payment—Applications for Payment";
4. General Conditions—"Payment— Mobilization Payment Requirements;'
5. General Conditions—"Payment— Itemized Breakdown of Contract Lump
Sum Prices";
6. General Conditions—"Contract Price Adjustments and Payments";
7. General Conditions—"Suspension of Payments";
8. General Conditions—"OCSD's Right to Withhold Certain Amounts and
Make Application Thereof"; and
9. General Conditions—"Final Payment."
EXA-3 RETENTION AND ESCROW ACCOUNTS
A. Retention:
OCSD shall retain a percentage of each progress payment to assure
satisfactory completion of the Work. The amount to be retained from each
progress payment shall be determined as provided in General Conditions—
"Retained Funds; Substitution of Securities". In all contracts between
CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not
exceed the percentage specified in the Contract Documents.
CONFORMED C-EXA-080414
PROJECT NO.FE16-14
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Page 1 of 8
B. Substitution of Securities:
CONTRACTOR may, at its sole expense, substitute securities as provided in
General Conditions—"Retained Funds; Substitution of Securities." Payment of
Escrow Agent:
In lieu of substitution of securities as provided above, the CONTRACTOR may
request and OCSD shall make payment of retention earned directly to the
escrow agent at the expense of the CONTRACTOR. At the expense of the
CONTRACTOR, the CONTRACTOR may direct the investment of the
payments into securities consistent with Government Code §16430 and the
CONTRACTOR shall receive the interest earned on the investments upon the
same terms provided for in this article for securities deposited by the
CONTRACTOR. Upon satisfactory completion of the Contract, the
CONTRACTOR shall receive from the escrow agent all securities, interest and
payments received by the escrow agent from OCSD, pursuant to the terms of
this article. The CONTRACTOR shall pay to each Subcontractor, not later than
twenty (20)calendar days after receipt of the payment, the respective amount
of interest earned, net of costs attributed to retention withheld from each
Subcontractor, on the amount of retention withheld to ensure the performance
of the Subcontractor. The escrow agreement used by the escrow agent
pursuant to this article shall be substantially similar to the form set forth in
§22300 of the California Public Contract Code.
C. Release of Retention:
Upon Final Acceptance of the Work, the CONTRACTOR shall submit an
invoice for release of retention in accordance with the terms of the Contract.
D. Additional Deductibles:
In addition to the retentions described above, OCSD may deduct from each
progress payment any or all of the following:
1. Liquidated Damages that have occurred as of the date of the application for
progress payment;
2. Deductions from previous progress payments already paid, due to OCSD's
discovery of deficiencies in the Work or non-compliance with the
Specifications or any other requirement of the Contract;
3. Sums expended by OCSD in performing any of the CONTRACTOR'S
obligations under the Contract that the CONTRACTOR has failed to
perform, and;
4. Other sums that OCSD is entitled to recover from the CONTRACTOR
under the terms of the Contract, including without limitation insurance
deductibles and assessments.
C-EXA-080414 CONFORMED
PROJECT NO.FE16-14
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Page 2 of 8
The failure of OCSD to deduct any of the above-identified sums from a
progress payment shall not constitute a waiver of OCSD's right to such sums or
to deduct them from a later progress payment.
EXA-4 STOP PAYMENT NOTICE
In addition to other amounts properly withheld under this article or under other
provisions of the Contract, OCSD shall retain from progress payments
otherwise due the CONTRACTOR an amount equal to one hundred twenty-five
percent (125%)of the amount claimed under any stop payment notice under
Civil Code §9350 at. seq. or other lien filed against the CONTRACTOR for
labor, materials, supplies, equipment, and any other thing of value claimed to
have been furnished to and/or incorporated into the Work; or for any other
alleged contribution thereto. In addition to the foregoing and in accordance with
Civil Code§9358 OCSD may also satisfy its duty to withhold funds for stop
payment notices by refusing to release funds held in escrow pursuant to public
receipt of a release of stop payment notice executed by a stop payment notice
claimant, a stop payment notice release bond, an order of a court of competent
jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR
has resolved such claim by settlement.
EXA-5 PAYMENT TO SUBCONTRACTORS
Requirements
1. The CONTRACTOR shall pay all Subcontractors for and on account of
Work performed by such Subcontractors, not later than seven (7) days after
receipt of each progress payment as required by the California Business
and Professions Code §7108.5. Such payments to Subcontractors shall be
based on the measurements and estimates made pursuant to article
progress payments provided herein.
2. Except as specifically provided by law, the CONTRACTOR shall pay all
Subcontractors any and all retention due and owing for and on account of
Work performed by such Subcontractors not later than seven (7)days after
CONTRACTOR'S receipt of said retention proceeds from OCSD as
required by the California Public Contract Code§7107.
EXA-6 PAYMENT OF TAXES
Unless otherwise specifically provided in this Contract, the Contract Price
includes full compensation to the CONTRACTOR for all taxes. The
CONTRACTOR shall pay all federal, state, and local taxes, and duties
applicable to and assessable against any Work, including but not limited to
retail sales and use, transportation, export, import, business, and special taxes.
The CONTRACTOR shall ascertain and pay the taxes when due. The
CONTRACTOR will maintain auditable records, subject to OCSD reviews,
confirming that tax payments are current at all times.
CONFORMED C-EXA-080414
PROJECT NO.FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 3 of 8
EXA-7 FINAL PAYMENT
After Final Acceptance of the Work, as more particularly set forth in the
General Conditions, "Final Acceptance and Final Completion", and after
Resolution of the Board authorizing final payment and satisfaction of the
requirements as more particularly set forth in General Conditions—"Final
Payment", a final payment will be made as follows:
1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an
application for Final Payment to OCSD, including:
a. The proposed total amount due the CONTRACTOR, segregated by
items on the payment schedule, amendments, Change Orders, and
other bases for payment;
b. Deductions for prior progress payments;
c. Amounts retained;
d. A conditional waiver and release on final payment for each
Subcontractor(per Civil Code Section 8136);
e. A conditional waiver and release on final payment on behalf of the
CONTRACTOR (per Civil Code Section 8136);
f. List of Claims the CONTRACTOR intends to file at that time or a
statement that no Claims will be filed,
g. List of pending unsettled claims, stating claimed amounts, and copies of
any and all complaints and/or demands for arbitration received by the
CONTRACTOR; and
h. For each and every claim that resulted in litigation or arbitration which
the CONTRACTOR has settled, a conformed copy of the Request for
Dismissal with prejudice or other satisfactory evidence the arbitration is
resolved.
2. The application for Final Payment shall include complete and legally
effective releases or waivers of liens and stop payment notices satisfactory
to OCSD, arising out of or filed in connection with the Work. Prior progress
payments shall be subject to correction in OCSD's review of the application
for Final Payment. Claims filed with the application for Final Payment must
be otherwise timely under the Contract and applicable law.
3. Within a reasonable time, OCSD will review the CONTRACTOR'S
application for Final Payment. Any recommended changes or corrections
will then be forwarded to the CONTRACTOR. Within ten (10) calendar days
C-EXA-080414 CONFORMED
PROJECT NO.FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 4 of 8
after receipt of recommended changes from OCSD, the CONTRACTOR will
make the changes, or list Claims that will be filed as a result of the
changes, and shall submit the revised application for Final Payment. Upon
acceptance by OCSD, the revised application for Final Payment will
become the approved application for Final Payment.
4. If no Claims have been filed with the initial or any revised application for
Final Payment, and no Claims remain unsettled within thirty-five (35)
calendar days after Final Acceptance of the Work by OCSD, and
agreements are reached on all issues regarding the application for Final
Payment, OCSD, in exchange for an executed release, satisfactory in form
and substance to OCSD, will pay the entire sum found due on the approved
application for Final Payment, including the amount, if any, allowed on
settled Claims.
5. The release from the CONTRACTOR shall be from any and all Claims
arising under the Contract, except for Claims that with the concurrence of
OCSD are specifically reserved, and shall release and waive all unreserved
Claims against OCSD and its officers, directors, employees and authorized
representatives. The release shall be accompanied by a certification by the
CONTRACTOR that:
a. It has resolved all Subcontractors, Suppliers and other Claims that are
related to the settled Claims included in the Final Payment;
b. It has no reason to believe that any party has a valid claim against the
CONTRACTOR or OCSD which has not been communicated in writing
by the CONTRACTOR to OCSD as of the date of the certificate;
c. All warranties are in full force and effect, and;
d. The releases and the warranties shall survive Final Payment.
6. If any claims remain open, OCSD may make Final Payment subject to
resolution of those claims. OCSD may withhold from the Final Payment an
amount not to exceed one hundred fifty percent (150%) of the sum of the
amounts of the open claims, and one hundred twenty-five percent (125%)
of the amounts of open stop payment notices referred to in article entitled
stop payment notices herein.
7. The CONTRACTOR shall provide an unconditional waiver and release on
final payment from each Subcontractor and Supplier providing Work under
the Contract(per Civil Code Section 8138) and an unconditional waiver and
release on final payment on behalf of the CONTRACTOR (per Civil Code
Section 8138)within thirty (30)days of receipt of Final Payment.
CONFORMED C-EXA-080414
PROJECT NO.FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 5 of 8
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT
Notwithstanding OCSD's acceptance of the application for Final Payment and
irrespective of whether it is before or after Final Payment has been made,
OCSD shall not be precluded from subsequently showing that:
1. The true and correct amount payable for the Work is different from that
previously accepted;
2. The previously-accepted Work did not in fact conform to the Contract
requirements, or;
3. A previous payment or portion thereof for Work was improperly made.
OCSD also shall not be stopped from demanding and recovering damages
from the CONTRACTOR, as appropriate, under any of the foregoing
circumstances as permitted under the Contract or applicable law.
C-EXA-080414 CONFORMED
PROJECT NO.FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 6 of 8
ATTACHMENT 1 —CERTIFICATION FOR REQUEST FOR PAYMENT
I hereby certify under penalty of perjury as follows:
That the claim for payment is in all respects true, correct; that the services mentioned
herein were actually rendered and/or supplies delivered to OCSD in accordance with the
Contract.
I understand that it is a violation of both the federal and California False Claims Ads to
knowingly present or cause to be presented to OCSD a false claim for payment or
approval.
A claim includes a demand or request for money. It is also a violation of the False
Claims Acts to knowingly make use of a false record or statement to get a false claim
paid. The term "knowingly" includes either actual knowledge of the information,
deliberate ignorance of the truth or falsity of the information, or reckless disregard for the
truth or falsity of the information. Proof of specific intent to defraud is not necessary
under the False Claims Acts. I understand that the penalties under the Federal False
Claims Ad and State of California False Claims Act are non-exclusive, and are in
addition to any other remedies which OCSD may have either under contract or law.
I hereby further certify, to the best of my knowledge and belief, that:
1. The amounts requested are only for performance in accordance with the
Specifications, terms, and conditions of the Contract;
2. Payments to Subcontractors and Suppliers have been made from previous payments
received under the Contract, and timely payments will be made from the proceeds of
the payment covered by this certification;
3. This request for progress payments does not include any amounts which the prime
CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in
accordance with the terms and conditions of the subcontract; and
4. This certification is not to be construed as Final Acceptance of a Subcontractors
performance.
Name
Title
Dale
CONFORMED C-EXA-080414
PROJECT NO.FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 7 of 8
ATTACHMENT 2—SCHEDULE OF PRICES
See next pages from the Bid Submittal Forms (PCL Construction, Inc.)
BF-14 Schedule of Prices, Pages 1-2
C-EXA-080414 CONFORMED
PROJECT NO.FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 8 of 8
Bid Submitted By: PC.L (i�. /. C.
(Name of Firm)
BF-14 SCHEDULE OF PRICES
INSTRUCTIONS
A. General
For Unit Prices, it is understood that the following quantities are approximate only and are
solely for the purpose of estimating the comparison of Bids, and that the actual value of Work
will be computed based upon the actual quantifies in the completed Work,whether they be
more or less than those shown. CONTRACTOR'S compensation for the Work under the
Contract Documents will be computed based upon the lump sum amount of the Contract at
time of award, plus any additional or deleted costs approved by OCSD via approved Change
Orders, pursuant to the Contract Documents.
Bidder shall separately price and accurately reflect costs associated with each line item,
leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized
representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid.
Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items, which, in summary,
provides that the total price for each item shall be based on the Unit Price listed for each item
multiplied by the quantity; and the correct Total Price for each item shall be totaled to
determine the Total Amount of Bid.
All applicable costs including overhead and profit shall be reflected in the respective unit costs
and the TOTAL AMOUNT OF BID. The Bid once shall include all costs to complete the Work,
includino orofit. overhead,etc., unless otherwise specified in the Contract Documents. All
applicable sales taxes, state and/or federal and any other special taxes. Patent rights or
royalties shall be included in the prices quoted in this Bid.
B. Basis of Award
AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST
RESPONSIVE AND RESPONSIBLE BID.
Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials, equipment and
services for the construction of the Project per the Contract Documents.
BF-14 SCHEDULE OF PRICES C-BF-121817
PROJECT NO.FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
Page 1 of 2
Bid Submitted By: PG(. CeJ?.ncr_ay..J A)e.
(Name of Firm)
EXHIBIT A
SCHEDULE OF PRICES
BASE BID ITEMS (Refer to Note 1 in the Instructions):
Item Description Unit of Approx Unit Price Extended Price
No. Measurement Dty
1. Mobilization, initial progress payment for all fees, labor, materials, and
equipment required for mobilization, staging area, and Surety Bonds, and
other activities in accordance with Specifications Section 01155 Lump Sum 1
Measurement and Payment and in conformance with the Contract
Documents, for a lump sum price of:
2. Furnish all labor, materials, and equipment necessary for sheeting, shoring,
and bracing for protection of life and limb in trenches and open excavations
complete in accordance with Specifications Section 01155 Measurement Lump Sum 1 = $ 5 icoz�' 'ten
and Payment and in conformance with the Contract Documents, for a lump
sum price of:
3. Furnish all labor, materials, and equipment necessary for the completion of
the Work, except for the Work specified for in Bid Items 1, 2, and 4, in
accordance with Specifications Section 01155 Measurement and Payment Lump Sum 1 = $ y 30 1 1 Li - o0
and in conformance with the Contract Documents, for a lump sum price of:
4. This item includes all demobilization activities performed by the
CONTRACTOR including, but not limited to, moving out, submittal and
acceptance of As-Built Drawings, and final cleanup and restoration of the
staging area to its original condition prior to Final Completion, in Lump Sum 1 = $ ,� y op , o 0
accordance with Specifications Section 01155 Measurement and Payment
and in conformance with the Contract Documents, for a lump sum price of:
TOTAL AMOUNT OF BID(BASIS OF AWARD) $�r]ct �, 1 •Oo
BF-14 SCHEDULE OF PRICES C-BF-121817
PROJECT NO. FE16-14
SLATER PUMP STATION VALVE REPLACEMENTS
JPag, J2 'I
STEERING COMMITTEE Melting Dat0 TOBE.Of Dir.
BB/22118 oB/zz/18
AGENDA REPORT Item Item Number
4 9
Orange County Sanitation District
FROM: Gregory C. Sebourn, PLS, Board Chairman
SUBJECT: GENERAL MANAGER'S COMPENSATION AND BENEFITS
BOARD CHAIR'S RECOMMENDATION
Adopt Resolution No. OCSD 18-15 entitled, "A Resolution of the Board of Directors of the
Orange County Sanitation District approving salary increase and salary range adjustment
for the General Manager for Fiscal Year 2018 to 2019," authorizing the Board Chair to
implement a base building salary increase of 5.0%, consisting of a 2.5% salary range
adjustment and a 2.5% merit increase commencing in the first pay period of July 2018 for
fiscal year 2018 to 2019. The total salary cost increase is $13,832 for the fiscal year.
Compensation and benefits costs based on impacts to existing benefits total an amount
not to exceed $17,761.
BACKGROUND
The General Manager of the Orange County Sanitation District (Sanitation District) is
employed on an At-Will basis and serves at the pleasure of the Board of Directors.
According to Section 6 of the General Manager's At-Will Agreement, the "District's
Steering Committee shall meet with the General Manager in August of each year during
the term of this Agreement to review and evaluate his performance over the prior year.
The Steering Committee shall make its recommendation(s) to the Board concerning
adjustment to the compensation and/or benefits paid or provided to the General Manager,
to be effective in July of the year of the review."
The Sanitation District's Board of Directors has taken action in recent years to attract and
retain critical executive- and management-level employees, ensuring compensation and
benefits are competitive with the labor market.
The General Manager's salary market position in 2016 was extremely low when
compared to the Sanitation District's comparison agencies. Board actions in the past two
(2) years have made progress in addressing this issue. Salary market position for the
Sanitation District's General Manager was at the 71h percentile in 2016 compared with the
Sanitation District's comparison agencies. With salary increases and benefits package
additions in the recent two-year employment contract, the Sanitation District's General
Manager is currently at the 40" percentile in salary and the 661h percentile in total
compensation (salary plus benefits) in 2018.
Page 1 of 4
RELEVANT STANDARDS
• Offer competitive compensation and benefits
• Maintain positive employer-employee relations
• Cultivate a highly qualified, well-trained, and diverse workforce
• Comply with OCSD Policy (Policy 6.1 Appraisal of Performance) and the General
Manager's At-Will Employment Agreement
PROBLEM
The General Manager's current salary market position is at the 401h percentile. This could
put the Sanitation District at risk for retention of executive staff and falls below the 751h
percentile that the Sanitation District aims for as its target market position. The salary
market position could deteriorate if the Sanitation District's salary range were to remain
static while comparison agencies provide salary increases.
Also, Sanitation District executive management salary ranges increased by 2.5%for fiscal
year 2018-19, as approved in Resolution No. OCSD 16-27. Salary compaction and
alignment issues could arise in the future if the General Manager's salary range were to
remain unchanged as others increase.
PROPOSED SOLUTION
Adopt Resolution No. OCSD 18-15, entitled "A Resolution of the Board of Directors of the
Orange County Sanitation District approving salary increase and salary range adjustment
for the General Manager for Fiscal Year 2018 to 2019."
The proposed 5.0% total salary increase consists of a 2.5% salary range adjustment and
a 2.5% merit increase. This would move the General Manager's market position to the
4911 percentile in salary and the 791h percentile in total compensation.
The Sanitation District is committed to maintaining a competitive compensation market
position that attracts and retains top employment talent. It is the Sanitation District's
philosophy to compensate employees competitively and equitably, understanding the
relative market position assists with that determination.
TIMING CONCERNS
N/A
RAMIFICATIONS OF NOT TAKING ACTION
Potential retention issue of highly skilled and experienced executive staff.
Page 2 of 4
PRIOR COMMITTEE/BOARD ACTIONS
July 2018 - Steering Committee continued the annual performance evaluation of the
General Manager for fiscal year 2017 to 2018 in closed session.
June 2018 - Steering Committee conducted the annual performance evaluation of the
General Manager for fiscal year 2017 to 2018 in closed session.
July 2017 - Steering Committee conducted the annual performance evaluation of the
General Manager for fiscal year 2016 to 2017 in closed session. Resolution No. OCSD
16-29 included direction on adjustments to the compensation for fiscal year 2017 to 2018;
no further action was needed to implement.
November 2016 - Approved Resolution No. OCSD 16-29, which authorized adjustments
to the General Manager's compensation and benefits for fiscal years 2016 to 2017 and
2017 to 2018, specifically a base building salary increase and a salary range adjustment
of 8.0% in July 2016 for fiscal year 2016 to 2017 and a base building salary increase and
a salary range adjustment of 8% in July 2017 for fiscal year 2017 to 2018.
ADDITIONAL INFORMATION
The agency's accomplishments during the past year include the following:
• Approving a five-year rate plan of user fees based on a comprehensive rate study
• Completing and approving a final concept design for the Sanitation District's future
Headquarters Complex
• Receiving the NACWA Platinum Award recognizing five years with no violations of
the Ocean Discharge Permit
• Achieving successful negotiation and implementation of new agreements with
various other public agencies
• Reaffirming the Sanitation District's AAA credit ratings
• Creating a Continuity of Operations Plan to ensure operational resiliency in case
of a major disaster and/or emergency
• Implementing procedures and corrective measure to maximize laboratory
operations based on the Sanitation District's National Environmental Laboratory
Certification
• Embarking on changes to preventive maintenance and lubrication programs to
maximize equipment efficiency
• Initiating the purchasing process for a food waste receiving facility project
• Expanding external leadership in technology and policy issues
• Participating actively in regional meetings and industry events
• Improving cyber security through file sharing auditing, assigning additional
resources, and necessary equipment updates
• Improving site safety and security through audits and implementation of projects
• Revising organizational structure to support agency operations and succession
planning with two (2) Assistant General Managers
Page 3 d 4
• Streamlining recruitment through process efficiencies that shorten time-to-fill for
jobs
• Achieving significant improvement in employee engagement since 2016 survey
CEQA
N/A
FINANCIAL CONSIDERATIONS
Cost of salary increase for fiscal year 2018-2019 is $137832. Total increase to
compensation costs, including impact to existing benefits, not to exceed $17,761.
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.corn with the complete agenda package:
• Resolution No. OCSD 18-15
• General Manager's Current& Proposed Salary Schedule
• General Manager's At-Will Employment Agreement
Page 4 of 4
RESOLUTION NO. OCSD 18-15
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT APPROVING
SALARY INCREASE AND SALARY RANGE ADJUSTMENT
FOR THE GENERAL MANAGER FOR FISCAL YEAR 2018 TO
2019
WHEREAS, the General Manager provides organizational leadership, strategic
direction, and District oversight for Orange County Sanitation District (OCSD); and
WHEREAS, the General Manager serves in an at-will employment capacity, which
may be terminated at any time by the Board with or without cause; and
WHEREAS, it is OCSD's philosophy to compensate employee classifications
competitively, which currently can be achieved through alignment with the salary market;
and
WHEREAS, the July 1, 2016, At-Will Agreement with the General Manager
provides that, "District's Steering Committee shall meet with General Manager in August
of each year during the term of this Agreement to review and evaluate his performance
over the prior year. The Steering Committee shall make its recommendation(s) to the
Board concerning adjustment to the compensation and/or benefits paid or provided to
General Manager, to be effective in July of the year of review. After consideration of the
recommendation(s) of the Steering Committee, the Board shall determine and approve
the compensation, including benefits, payable to General Manager, which generally
becomes effective July of the fiscal year of the review"; and
WHEREAS, the Steering Committee commenced its review of the General
Manager's performance in June 2018, finalized its review and made its recommendation
to the Board on August 22, 2018.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER:
1. That the At-Will Agreement with the General Manager (Attached hereto as
Exhibit 1) setting forth the terms and conditions of his employment, including
a base building salary increase of five percent (5%) in the first pay period of
July 2018, consisting of 2.5% salary range adjustment and 2.5% merit
increase, and a salary range adjustment to the corresponding salary range, is
hereby approved to be effective retroactively to the first pay period of July
2018:
2. That the Board Chair, or his designee, is authorized to implement the changes to
salary range and salary items approved herein.
OCSD 18-15-1
1338105.1
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
August 22, 2018.
Gregory C. Sebourn, PLS
Board Chairman
ATTEST:
Kelly Lore, MMC
Clerk of the Board
OCSD 18-15-2
1338105.1
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 18-15 was passed and
adopted at a regular meeting of said Board on the 22nd day of August 2018, by the
following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of Orange County Sanitation District this 22"d day of August 2018.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
OCSD 18-15-3
1338105.1
General Manager Salary Schedules
July 2017 and Proposed July 2018
Orange County Sanitation District
Classification and Compensation Plan
Rates Effective July 1, 2017
GENERAL MANAGER
Pay Grade Step 1 Step 2 Step 3 Step 4 S[ep 5
EM37 Annual $ 249,543 $ 262,305 $ 275,719 $ 289,820 $ 304,641
Monthly $ 20,795 $ 21,859 $ 22,977 $ 24,152 $ 25,387
Hourly $ 119.97 $ 126.11 $ 132.56 $ 139.34 $ 146.46
Orange County Sanitation District
Classification and Compensation Plan
PROPOSED Rates Effective July 1, 2018
GENERAL MANAGER
Pay Grade Step 1 Step 2 Step 3 Step 4 Step 5
EM37 Annual $ 255,778 $ 268,861 $ 282,618 $ 297,066 $ 312,250
Monthly $ 21,315 $ 22,405 $ 23,551 $ 24,755 $ 26,021
Hourly $ 122.97 $ 129.26 $ 135.87 $ 142.82 $ 150.12
a
n=
AT-WILL EMPLOYMENT AGREEMENT
James D. Herberg
General Manager
ORANGE COUNTY SANITATION DISTRICT
THIS AT-WILL EMPLOYMENT AGREEMENT ("Agreement") is entered into, to be
effective the 121 day of July. 2018, by and between:
ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as
"District";
AND
JAMES D. HERBERG, sometimes hereinafter referred to as "General
Manager'; collectively referred to herein as ("the Parties")
RECITALS
WHEREAS, District desires to continue to employ James D. Herberg ("Mr. Herberg"),
as General Manager of District, pursuant to the terms and conditions as set forth in this
Agreement;and
WHEREAS, Mr. Herberg, by virtue of his education, training and experience, is fully
qualified to fill the position of General Manager and desires to continue to serve the District
as its General Manager, pursuant to the terms and conditions of this Agreement; and
WHEREAS, per Resolution No. OCSD 18-15 adopted on August 22, 2018 the
District's Board of Directors has approved and authorized the Board Chair to execute this
"At-Will Employment Agreement"to include a base building salary increase of 5%of his current
salary.
WHEREAS, at the beginning of negotiations of a new Employment Agreement, the
parties agreed that any salary changes agreed to would take effect retroactively to the first pay
1338031.1
1
period of July 2018, which is the first pay period in the current fiscal year.
NOW,THEREFORE,Ihe Parties hereto agree as follows:
Section 7: District hereby continues to employ Mr. Herberg to serve as General Manager
of the Orange County Sanitation District,commencing on the effective date hereof, and continuing
until termination by either Party, as provided in this Agreement.
In that capacity, Mr. Herberg agrees to perform the functions and duties of General
Manager, the administrative head of the District, as prescribed by the laws of the State of
California, and by the rules, regulations, decisions, and directions of the Board of Directors of
District (hereinafter referred to as "Board"). The General Manager's duties may involve
expenditures of time in excess of the regularly established workday or in excess of a forty-hou r
work week and may also include time outside normal office hours (including attendance at
Board and Committee meetings). General Manager is classified as an exempt employee under
the Fair Labor Standards Act ("FLSA") and shall not be entitled to any additional compensation
for hours worked in excess of forty in a work week.
Section 2: Mr. Herberg shall be employed in an "at-will" capacity serving at the sole
pleasure of the Board. Either party to this Agreement may terminate the Agreement at any time
for any reason with or without cause, and without hearing, upon 30 days' notice to the other
party. Mr. Herberg is advised and acknowledges that he has none of the termination rights of a
Regular employee of the District. Except as expressly provided herein, and as a condition of
employment, Mr. Herberg knowingly, willingly and voluntarily gives up, waives, and disclaims
any and all rights he may have, express or implied,to any notice and/or hearing before or after
termination,and/or to any continued employment with the District after termination.
As an "at-will" employee, Mr. Herberg understands that he may be subject to termination
with or without cause at the sole discretion of the Board, notwithstanding that the other
provisions of the District's Personnel Policies and Procedures Manual (hereinafter referred to as
"Manual")apply to Mr.Herberg. If the District terminates employment without cause, Mr. Herberg shall
be given a thirty (30) day Notice of Termination and severance pay in an amount equal to six (6)
months of his then current annual base salary upon Mr. Herberg's execution of a valid written release
of legal claims.
If the District terminates this Agreement(thereby terminating Mr. Herberg's employment)without
cause, and Mr. Herberg executes a valid written release of legal claims, the severance pay is
considered a cash settlement related to the termination of Mr. Herberg and waiver of legal claims and
shall be fully reimbursed to the District by Mr. Herberg if Mr. Herberg is convicted of a crime involving
an abuse of his office or position. Abuse of office or position shall have the meaning set forth in
1338031.1
2
Government Code 53243.4, as may be amended, of either(1)an abuse of public authority, including,
but not limited to, waste,fraud and violation of the law under color of authority, or(2)a crime against
public justice, including, but, not limited to, a crime described in Title 7 (commencing with Section 92
of Part 1 of the Penal Code). Mr. Herberg shall reimburse such severance pay to the District no later
than six (6) months after such conviction. If Mr. Herberg terminates his employment with 30 days'
notice, the Board shall have the right to accept his resignation effective the date notice is given. Such
decision to accept his resignation earlier shall not be considered a termination without cause and shall
not entitle Mr. Herberg to receive the severance pay noted above.
Section 3: The term of this Agreement shall commence on the effective date above and
continue for an indefinite duration, until terminated by either Party pursuant to Section 2 above, or
unless terminated or amended as provided herein.
Section 4: As compensation for the services to be performed hereunder, upon the effective
date of this Agreement, District agrees to pay General Manager an annual base salary for services
rendered of two hundred ninety thousand, two hundred twenty-two dollars ($290,222), subject to all
applicable deductions and withholdings of any and all sums required by then current state,federal or
local law, along with deductions of applicable sums the General Manager is obligated to pay because
of participation in plans and programs described in this Agreement, and paid biweekly in accordance
with the District's established accounting and payroll practices at the same time and in the same
manner as other employees of the District. No increase in salary may exceed the compensation
permitted by the applicable salary range for the classification established by duly adopted Resolution
of the Board.
Section 5: For the period of this Agreement, District shall provide Mr. Herberg with a fixed
benefit package that includes the following:
Personal Leave — accrued based on years of service for all paid hours, including
hours actually worked and hours in a paid-leave payroll status, on a biweekly
basis in accordance with the Manual. Personal leave accruals shall not exceed
four hundred forty (440) hours as of December 31 of each year. Any hours in
excess of said limit, will be paid to Mr. Herberg in January in an amount equal to
the hourly rate of compensation.
Administrative Leave -40 hours per fiscal year, granted and not eligible for
annual cash out.
• Investment Incentive Salary (IIS)- 6% of base salary applied on a biweekly fiscal
year basis, and a flat amount of one thousand two hundred fifty dollars ($1,250)
annually.
1338031.1
3
Deferred Compensation - OCSD-paid annual allocation for 2018 of $11,000
allocated on a biweekly calendar year basis.
Car Allowance—OCSD-paid annual allocation of$8,400.
Added Medical Allowance—OCSD-paid annual allocation for 2018 of six
thousand dollars ($6,000).
Mr. Herberg's benefit package shall also include benefits consistent with the Manual for:
holiday pay; medical, dental, vision and life insurance at three times base salary; long-term and
short-term disability insurance; and employee assistance program. Additionally, Mr. Herberg's
benefit package shall include executive disability insurance benefits, consistent with those
provided to OCSD managers.
These benefits shall remain in full force and effect unless and until replaced by an amendment
to this Agreement,signed by Mr. Herberg and approved by the Board,which amendment shall include
the effective date thereof.
Section a: District's Steering Committee shall meet with General Manager in August of
each year during the term of this Agreement to review and evaluate his performance over the
prior year.The Steering Committee shall make its recommendation(s) to the Board concerning
adjustment to the compensation and/or benefits paid or provided to General Manager, to be
effective in July of the year of review. After consideration of the recommendation(s) of the
Steering Committee, the Board shall determine and approve the compensation, including
benefits, payable to General Manager, which generally becomes effective July of the fiscal year
of the review. Failure of the District to review and evaluate the performance of the General
Manager pursuant to this section shall not affect the right of the District to terminate the General
Manager's employment and shall not be considered a breach of this Agreement.
Section 7: Mr. Herberg shall be a Participant Member in the Orange County Employees
Retirement System ("OCERS"). District shall pay the required employer's contribution and 0%
of Mr. Herberg's required contribution towards membership in OCERS.
Section a: District shall reimburse General Manager for all expenses paid by him and
incurred for non-personal,job-related District business that are reasonably necessary to the
General Manager's service to the District. The District agrees to either pay such expenses in
advance or to reimburse the expenses, so long as the expenses are incurred and submitted
according to the criteria established by District's budget and/or normal expense reimbursement
procedures pursuant to applicable policy Resolutions. To be eligible for reimbursement, all
expenses must be supported by documentation meeting the District's policies and requirements
and must be submitted within time limits established by the District. Such reimbursement shall
1338031.1
4
not be considered a benefit.
Section 9: During the period of this Agreement, it is agreed that General Manager shall
devote his fulltime, skills, labor and attention to said employment. At no time may General
Manager undertake outside activities consisting of consultant work, speaking engagements,
writing, lecturing, or other similar professional activities for money or other consideration without
prior approval of District's Steering Committee. However, the expenditure of reasonable amount
of time for educational, charitable, or professional activities shall not be deemed a breach of
this Agreement if those activities do not conflict or materially interfere with the services
required under this Agreement, and shall not require the prior written consent of the Steering
Committee.
This Agreement shall not be interpreted to prohibit General Manager from making
passive personal Investments or conducting private business affairs, provided those activities
are not deemed to be a conflict of interest by state law nor do they conflict or materially interfere
with the services required under this Agreement.
Section 10* The Board has the sole discretion to determine whether the District shall pay
General Manager pending an investigation into any alleged misconduct by General Manager. In
the event that the District's Board determines, in its sole discretion, that it is in the best interest
of the District for General Manager to be placed on paid administrative leave pending such an
investigation, General Manager shall fully reimburse any salary provided for that purpose if the
misconduct for which the General Manager was under investigation results in the General
Manager being convicted of a crime involving an abuse of his office or position as defined in
Section 2 of this Agreement. General Manager shall reimburse such salary to the District no
later than six months after such conviction.
Section 11, In the event that the District provides funds for the legal criminal defense of
General Manager, General Manager shall fully reimburse said funds to the District W the
General Manager is convicted of a crime involving an abuse of his/her office or position as
defined in Section 2 of this Agreement. General Manager shall reimburse such criminal legal
defense fees to the District no later than six months after such conviction.
Section 12, The terms and conditions of employment for General Manager, including
other employment benefits for the General Manager that are not specifically provided for in this
Agreement, shall be governed by the Manual, to the extent that amendments to the Manual
made after the effective date of this Agreement are not inconsistent with the provisions of this
Agreement. In the event of any such inconsistency or conflict, the provisions of this Agreement
1338031.1
shall govern.
Section 13, This Agreement supersedes any and all other prior agreements, either
oral or in writing, between the Parties hereto with respect to the employment of Mr. Herberg by
District, and contains all of the covenants and agreements between the Parties with respect to
that employment in any manner whatsoever. Each Party to this Agreement acknowledges that
no representation, inducement, promise, or agreement, orally or otherwise, has been made by
any Party, or anyone acting on behalf of any Party,which is not embodied herein, and that no
other agreement, statement, or promise not contained in this Agreement or Employment shall
be valid or binding on ether Party.
Section 14, Any notices to be given hereunder by either Party to the other shall be in
writing and may be transmitted by personal delivery, or by mail, registered or certified, postage
prepaid, with return receipt requested. Mailed notices shall be addressed to the Parties at the
addresses maintained in the personnel records of District, but each Party may change that
address by written notice in accordance with this Section. Notices delivered personally shall be
deemed communicated as of the date of actual receipt; mailed notices shall be deemed
communicated as of the date of mailing.
Section 15, Any modifications of this Agreement will be effective only if set forth in
writing and signed by the Parties.
Section 16, The failure of either Party to insist on strict compliance with any of the
terms,covenants, or conditions of this Agreement by the other Party, shall not be deemed a
waiver of that term, covenant,or condition, nor shall any waiver or relinquishment of any right or
power at any one time or times be deemed a waiver or relinquishment of that right or power for
all or any other times.
Section 17, If any provision of this Agreement is held by a court of competent jurisdiction
to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in
full force without being impaired or invalidated in any way.
Section 18, This Agreement shall be governed by and construed in accordance with
the laws of the State of California and all applicable ordinances, policies and resolutions.
Section 19, General Manager acknowledges that he has had the opportunity and has
conducted an independent review of the financial and legal effects of this Agreement. General
Manager acknowledges that he has made an independent judgment upon the financial and
legal effects of the Agreement and has not relied upon representation of the District, its elected
1338031.1
6
or appointed officers and officials, agents or employees other than those expressly set forth in
this Agreement. General Manager acknowledges that he has been advised to obtain, and has
availed himself of, legal advice with respect to the terms and provisions of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this At-Will Employment
Agreement as follows.
"DISTRICT"
ORANGE COUNTY SANITATION DISTRICT
"GENERAL MANAGER"
By:
James D. Herberg Date
APPROVED AS TO FORM: "CHAIR, BOARD OF DIRECTORS"
BRADLEY R. HOGIN
GENERAL COUNSEL
By:
Bradley R. Hogin Gregory C. Sebourn Date
1338031.1
7
ORANGE COUNTY SANITATION DISTRICT
COMMON ACRONYMS
ACWA Association of California LAFCO Local Agency Formation RWQCB Regional Water Quality
Water Agencies Commission Control Board
APWA American Public Works LOS Level Of Service SARFPA Santa Ana River Flood
Association Protection Agency
AQMD Air Quality Management MGD Million Gallons Per Day SARI Santa Ana River
District Interceptor
ASCE American Society of Civil MOU Memorandum of SARWQCB Santa Ana Regional Water
Engineers Understanding Quality Control Board
BOD Biochemical Oxygen Demand NACWA National Association of Clean SAWPA Santa Ana Watershed
Water Agencies Project Authority
California Air Resources National Environmental Supervisory Control And
CARB Board NEPA Policy Act SCADA Data Acquisition
California Association of Non-Governmental Southern California
CASA Sanitation Agencies NGOs Organizations SCAP Alliance of Publicly Owned
Treatment Works
CCTV Closed Circuit Television NPDES National Pollutant Discharge SCAQMD South Coast Air Quality
Elimination System Management District
CEQA California Environmental NWRI National Water Research SOCWA South Orange County
Quality Act Institute Wastewater Authority
CIP Capital Improvement O&M Operations&Maintenance SRF Clean Water State
Program Revolving Fund
California Regional Water Orange County Council of Sewer System
CRWQCe Quality Control Board OCCOG Governments SSMP Management Plan
CWA Clean Water Act OCHCA Orange County Health Care SSO Sanitary Sewer Overflow
Agency
California Water Environment Orange County Sanitation State Water Resources
CWEA Association OCSD District SWRCe Control Board
EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids
EMT Executive Management Team COBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load
EPA US Environmental Protection OSHA Occupational Safety and 7S5 Total Suspended Solids
Agency Health Administration
Professional Waste Discharge
FOG Fats,Oils,and Grease PCSA Consultant/Construction WDR Wastee Discharge
Services Agreement
gpd gallons per day PDSA Professional Design Services WEE Water Environment
Agreement Federation
GWRS Groundwater Replenishment POTW Publicly Owned Treatment WERE Water Environment&
System Works Reuse Foundation
ICS Incident Command System ppm pans per million WIFIA Water Infrastructure
Finance and Innovation Act
Integrated Emergency Professional Services Water Infrastructure
IERP Response Plan PSA Agreement WIIN Improvements for the
Nation Act
JPA Joint Powers Authority REP Request For Proposal WRDA Water Resources
Develo ment Act
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
ACTIVATED SLUDGE PROCESS—A secondary biological wastewater treatment process where bacteria reproduce at a high
rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater.
BENTHOS —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also
known as the benthic zone.
BIOCHEMICAL OXYGEN DEMAND (BOD)—The amount of oxygen used when organic matter undergoes decomposition by
microorganisms.Testing for BOD is done to assess the amount of organic matter in water.
BIOGAS—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used
as a fuel.
BIOSOLIDS—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process.
This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for
commercial and home gardens to improve and maintain fertile soil and stimulate plant growth.
CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes
treatment improvements,additional capacity, and projects for the support facilities.
COLIFORM BACTERIA—A group of bacteria found in the intestines of humans and other animals, but also occasionally found
elsewhere,used as indicators of sewage pollution. E.coli are the most common bacteria in wastewater.
COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary
wastewater or storm water.
CERTIFICATE OF PARTICIPATION (COP)—A type of financing where an investor purchases a share of the lease revenues of
a program rather than the bond being secured by those revenues.
CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater
contaminants.
DILUTION TO THRESHOLD (Dfr)—The dilution at which the majority of people detect the odor becomes the D/T for that air
sample.
GREENHOUSE GASES (GHG)— In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and
ozone gases that are considered the cause of global warming("greenhouse stil .
GROUNDWATER REPLENISHMENT SYSTEM(GWRS)—Ajoint water reclamation project that proactively responds to Southern
California's current and future water needs.This joint project between the Orange County Water District and the Orange County
Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply.
LEVEL OF SERVICE(LOS)—Goals to support environmental and public expectations for performance.
N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer causing agent. It has been found in the
Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment.
NATIONAL BIOSOLIDS PARTNERSHIP (NBP)—An alliance of the National Association of Clean Water Agencies and Water
Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing
and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance
and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that
lead to public acceptance.
PLUME—A visible or measurable concentration of discharge from a stationary source or fixed facility.
PUBLICLY OWNED TREATMENT WORKS(POTW)—A municipal wastewater treatment plant.
SANTA ANA RIVER INTERCEPTOR(SARI) LINE—A regional brine line designed to convey 30 million gallons per day of non-
reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal,after treatment.
SANITARY SEWER— Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined
sewers carry both wastewater and urban runoff.
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD)—Regional regulatory agency that develops plans and
regulations designed to achieve public health standards by reducing emissions from business and industry.
SECONDARY TREATMENT— Biological wastewater treatment, particularly the activated sludge process, where bacteria and
other microorganisms consume dissolved nutrients in wastewater.
SLUDGE—Untreated solid material created by the treatment of wastewater.
TOTAL SUSPENDED SOLIDS(TSS)—The amount of solids floating and in suspension in wastewater.
TRICKLING FILTER—A biological secondary treatment process in which bacteria and other microorganisms,growing as slime
on the surface of rocks or plastic media,consume nutrients in wastewater as it trickles over them.
URBAN RUNOFF—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and
oceans.
WASTEWATER—Any water that enters the sanitary sewer.
WATERSHED—A land area from which water drains to a particular water body.The Orange County Sanitation District's service
area is in the Santa Ana River Watershed.