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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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.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 O NS AHI Tgr�Oy � 9 O y 9°r t� p •A�2~ �cr�N H ENV`�p� Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 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. amount of volatility to the portfolio's total volatility 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. -- -- Real Estate Indicators: Too Hot to June 2018 Regional Workshop Summary: Governance t.,,,., x"-tlltt oiiilt�ll Touch or Cool Enough to Handle? I 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 des and speakers presentations are available on our website: College;provides a foundation of knowledge for industry profes- www.callan.com/library/ sionals who are involved in the investment decision-making pro- Callan's October Regional Workshops will be held on October 16 cess.It was founded in 1994 to provide clients and non-clients alike in New York and October 18 in Atlanta.Please visit the Events page with basic-to intermediate-level instruction.Our next sessions are: on our website(www.callan.com/events/)for additional Information. Introduction to Investments Callan's 2019 National Conference will be held January 28-30, Chicago, October 2-3,2018 2019.Mark your calendars for this upcoming event! Atlanta, October 23-24, 2018 This program familiarizes fund sponsor trustees, staff, and asset For more Information about events, please contact Barb management advisers with basic investment theory,terminology, Gerraty:415.274.3093/gerraty@callan.com and practices. It lasts one-and-a-half days and is designed for in- dividuals who have less than two years of experience with asset. management oversight and/or support responsibilities.Tuition for the Introductory "Callan College" session is $2,350 per person. Tuition includes instruction, all materials, breakfast and lunch on each day,and dinner on the first evening with the Instructors. Customized Sessions The "Callan College" is equipped to customize a curriculum to meet the training and educational needs of a specific organization. These tailored sessions range from basic to advanced and can take place anywhere even at your office Learn more at www.callan.comievents/callan-college-intro or contact Kathleen Curdle:415.274.3029/cunnie@callan.com Education: By the Numbers 525 Attendees(on average)of the 50+ Unique pieces of research the Institutes annual National Conference Institute generates each year 3 700 Total attendees of the'Callan 1980 Year the Callan Institute I College since 1994 was founded I "Research is the foundation of all we do at Callan, and sharing our best thinking with the investment community is our way of helping to foster dialog to raise the bar across the industry." Greg Alen,CEO and CRO 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 2018 Chandler Asset Management, Inc,An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-fees and represent the client's Total Return. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ice Data Indices, LLC ("ICE'), used with permission. ICE PERMITS USE OF THE ICE INDICES AND RELATED DATA ON AN AS IS" BASIS; ICE, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM. NEITHER ICE DATA, ITS AFFILIATES OR THEIR RESPECTIVE THIRD PARTY PROVIDERS GUARANTEE THE QUALITY, ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES OR THE INDEX DATA OR ANYCOMPONENT THEREOF, AND THE INDICES AND INDEX DATA AND ALL COMPONENTS THEREOF ARE PROVIDED ON AN AS IS"BASIS AND LICENSEE'S USE IS AT LICENSEE'S OWN RISK. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY DO NOT SPONSOR, ENDORSE, OR RECOMMEND CHANDLER ASSET MANAGEMENT, OR ANY OF ITS PRODUCTS OR SERVICES. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk., the value of fixed income investments will decline as interest rates rise. Credit risk., the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk., the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Rating Agency Comparisons A summary of investment grade ratings are listed below. More complete descriptions of Moody's and Standard & Poor's ratings are included in the following pages. Quality/Grade 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 "Aaa" - Bonds rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk. Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. "Aa" - Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in Aaa securities. "A" - Bonds which are rated A possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment sometime in the future. Mae" - Bonds which are rated Baa are considered as medium grade obligations; i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well. Bonds in the 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 CONFORMED C-CA-090817 PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 5 of 26 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. C-CA-090817 CONFORMED PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 6 of 26 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 CONFORMED C-CA-090817 PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 7 of 26 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. C-CA-090817 CONFORMED PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 8 of 26 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." CONFORMED C-CA-090817 PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 9 of 26 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 C-CA-090817 CONFORMED PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 10 of 26 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 CONFORMED C-CA-090817 PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 11 of 26 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 C-CA-090817 CONFORMED PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 12 of 26 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 CONFORMED C-CA-090817 PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 13 of 26 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: C-CA-090817 CONFORMED PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 14 of 26 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 CONFORMED C-CA-090817 PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 15 of 26 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 C-CA-090817 CONFORMED PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 16 of 26 ($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 CONFORMED C-CA-090817 PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 17 of 26 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 C-CA-090817 CONFORMED PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 18 of 26 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. CONFORMED C-CA-090817 PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 19 of 26 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. C-CA-090817 CONFORMED PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 20 of 26 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 CONFORMED C-CA-090817 PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 21 of 26 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, C-CA-090817 CONFORMED PROJECT NO. FE16-14 SLATER PUMP STATION VALVE REPLACEMENTS Page 22 of 26 "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 SLATER PUMP STATION VALVE REPLACEMENTS 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 SLATER PUMP STATION VALVE REPLACEMENTS 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 SLATER PUMP STATION VALVE REPLACEMENTS 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.