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HomeMy WebLinkAbout02-26-2020 Board Meeting Agenda Packet Serving: Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • www.ocsd.com Brea Buena Park February 20, 2020 Cypress Fountain Valley Fullerton NOTICE OF Garden Grove REGULAR MEETING Huntington Beach Irvine BOARD OF DIRECTORS La Habra La Palma ORANGE COUNTY SANITATION DISTRICT Los Alamitos Newport Beach Wednesday, February 26, 2020 — 6:00 P.M. Orange Administration Building Placentia 10844 Ellis Avenue Santa Ana Fountain Valley, California 92708 Seal Beach The Regular Meeting of the Board of Directors of the Orange County Stanton Sanitation District will be held at the above location, time, and date. Tustin Villa Park County of Orange Costa Mesa Sanitary District Jerk oHKe Poard Midway City Sanitary District Irvine Ranch Water District Upcoming Meetings: Yorba Linda Water District Steering Committee - Wednesday, March 25, 2020 at 5:00 p.m. Board Meeting - Wednesday, March 25, 2020 at 6:00 p.m. � o 2 1 9 1 9ol�c'Ns THE e Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. BOARD MEETING DATES March 25, 2020 April 22, 2020 May 27, 2020 June 24, 2020 July 22, 2020 August 26, 2020 September 23, 2020 October 28, 2020 November 18, 2020 December 16, 2020 January 27, 2021 February 24, 2021 *Meeting will be held on the third Wednesday of the month ORANGE COUNTY SANITATION DISTRICT Effective 02/19/2020 BOARD OF DIRECTORS Complete Roster ALTERNATE AGENCY/CITIES ACTIVE DIRECTOR DIRECTOR Anaheim Lucille Kring Denise Barnes Brea Glenn Parker Cecilia Hupp Buena Park Fred Smith Connor Traut Cypress Mariellen Yarc Stacy Berry Fountain Valley Steve Nagel Patrick Harper Fullerton Jesus J. Silva Jan Flory Garden Grove Steve Jones John O'Neill Huntington Beach Erik Peterson Lyn Semeta Irvine Christina Shea Anthony Kuo La Habra Tim Shaw Rose Espinoza La Palma Peter Kim Nitesh Patel Los Alamitos Richard Murphy Dean Grose Newport Beach Brad Avery Joy Brenner Orange Mark Murphy Kim Nichols Placentia Chad Wanke Ward Smith Santa Ana Cecilia Iglesias David Penaloza Seal Beach Sandra Massa-Lavitt Schelly Sustarsic Stanton David Shawver Carol Warren Tustin Allan Bernstein Chuck Puckett Villa Park Robert Collacott Chad Zimmerman Sanitary/Water Districts Costa Mesa Sanitary District James M. Ferryman Bob Ooten Midway City Sanitary District Andrew Nguyen Margie L. Rice Irvine Ranch Water District John Withers Douglas Reinhart Yorba Linda Water District Brooke Jones Phil Hawkins County Areas Board of Supervisors Doug Chaffee Donald P. Wagner GoJN SANITgT,/0 Q ? r c� o i H� THE ENS Orange County Sanitation District BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 - 6:00 PM Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 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 office at (714) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. AGENDA POSTING: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District's website at www.ocsd.com not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. MEETING AUDIO: An audio recording of this meeting is available within 24 hours after adjournment of the meeting. Please contact the Clerk of the Board's office at(714) 593-7433 to request the audio file. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be submitted in writing to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433/ klore@ocsd.com at least 14 days before the meeting. FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT: General Manager: Jim Herberg,jherberg@ocsd.com/(714)593-7300 Asst. General Manager: Lorenzo Tyner, Ityner@ocsd.com/ (714)593-7550 Asst. General Manager: Rob Thompson, rthompson@ocsd.com/(714)593-7310 Director of Human Resources: Celia Chandler, cchandler@ocsd.com/(714) 593-7202 Director of Engineering: Kathy Millea, kmillea@ocsd.com/ (714)593-7365 Director of Environmental Services: Lan Wiborg, Iwiborg@ocsd.com/(714) 593-7450 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 CALL TO ORDER (Board Chairman David Shawver) INVOCATION AND PLEDGE OF ALLEGIANCE Peter Kim, City of La Palma ROLL CALL (Clerk of the Board) 1. APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT 2020-902 BOARD OF DIRECTORS RECOMMENDATION: Receive and file minute excerpts of member agencies relating to appointments to the Orange County Sanitation District Board of Directors: Agency Director Alternate Director City of Fountain Valley Steve Nagel Patrick Harper City of Orange Mark Murphy Kim Nichols City of Santa Ana Cecilia Iglesias David Penaloza Board of Supervisors Doug Chaffee Donald P. Wagner Originator: Kelly Lore DECLARATION OF QUORUM 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 of general interest to the Directors. These reports are for information only and require no action by the Directors. Page 1 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 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. 2. APPROVAL OF MINUTES 2020-875 RECOMMENDATION: Approve Minutes of the Regular Meeting of the Board of Directors held January 22, 2020. Originator: Kelly Lore Attachments: Agenda Report 01-22-2020 Board Meeting Minutes RECEIVE AND FILE: 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH 2O20-904 OF JANUARY 2020 RECOMMENDATION: Receive and file the following: Report of the Investment Transactions for the month of January 2020. Originator: Lorenzo Tyner Attachments: Agenda Report Investment Transactions for the Month of January 2020 4. COMMITTEE MEETING MINUTES 2020-919 RECOMMENDATION: Receive and file the following: A. Minutes of the Operations Committee Meeting held December 4, 2019 B. Minutes of the Legislative and Public Affairs Committee held December 9, 2019 C. Minutes of the Administration Committee Meeting held December 11, 2019 D. Minutes of the Steering Committee Meeting held December 18, 2019 Originator: Kelly Lore Attachments: Agenda Report 12-04-2019 Operations Committee Minutes 12-09-2019 Legislative Committee Minutes 12-11-2019 Administration Committee Minutes 12-18-2019 Steering Committee Minutes Page 2 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 OPERATIONS COMMITTEE: 5. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE 2020-911 REPORT RECOMMENDATION: Receive and file the Capital Improvement Program Contract Performance Report for the period ending December 31, 2019. Originator: Kathy Millea Attachments: Agenda Report CIP Contract Report for Period End 12-31-19 6. WESTMINSTER BOULEVARD FORCE MAIN REPLACEMENT, 2020-912 PROJECT NO. 3-62 RECOMMENDATION: Approve a Sewer Relocation Agreement between the Orange County Sanitation District and the Midway City Sanitary District. Originator: Kathy Millea Attachments: Agenda Report Sewer Relocation Agreement (Final) 7. PLANT NO. 2 DEWATERING CENTRIFUGE SPARE ROTATING 2020-913 ASSEMBLY AND GEARBOX RECOMMENDATION: A. Approve a Sole Source Purchase Order contract for the procurement of one spare rotating assembly and gearbox for the Alfa Laval Centrifuges, Model ALDEC G3-125, for an amount not to exceed $435,756, plus applicable sales tax and shipping; and B. Approve a contingency of $43,576 (10%). Originator: Rob Thompson Attachments: Agenda Report 8. ON CALL PLANT NO. 1 & PLANT NO. 2 MEDIUM VOLTAGE CABLE 2020-914 TESTING SERVICES (MP-320) RECOMMENDATION: A. Approve a three-year service contract with Halco Service Corp. for assessment Page 3 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 and testing of Plant No.1 and Plant No. 2 medium voltage cables per Specification No. S-2019-1107BD, for a total amount not to exceed $491,655; and B. Approve a contingency of $73,748 (15%). Originator: Rob Thompson Attachments: Agenda Report S-2019-1107BD FINAL SERVICE CONTRACT 9. COOPERATIVE PROCUREMENT WITH W.W. GRAINGER 2020-915 RECOMMENDATION: Approve a Blanket Purchase Order with W.W. Grainger, Inc. for the purchase of maintenance tools and supplies, in accordance with Ordinance No. OCSD-52, Section 2.03(B): Cooperative Procurement; for the period beginning March 1, 2020 through February 28, 2021 , with two one-year renewal options, for a total amount not to exceed $275,000 per year. Originator: Rob Thompson Attachments: Agenda Report 10. PLANT NO. 1 PURCHASE OF PROGRESSIVE CAVITY PUMP 2020-916 REPLACEMENT PARTS RECOMMENDATION: A. Approve a Sole Source Purchase Order to Cortech Engineering for the purchase of eight Seepex pump rotors and one stator for the sludge thickening and dewatering facility, for a total amount not to exceed $216,210, plus applicable sales tax and shipping; and B. Approve a contingency of $21,620 (10%). Originator: Rob Thompson Attachments: Agenda Report 11. ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS, 2020-917 PROJECT NO. J-98 RECOMMENDATION: A. Approve a Professional Design Services Agreement with Brown and Caldwell to provide engineering services for the Electrical Power Distribution System Improvements, Project No. J-98, for an amount not to exceed $2,240,000; and Page 4 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 B. Approve a contingency of $224,000 (10%). Originator: Kathy Millea Attachments: Agenda Report J-98 Professional Design Services Agreement - Final PPP 02-05-2020 Project J-98 12. FLEET PURCHASE OF ONE SEDAN, SIX LIGHT-DUTY TRUCKS, AND 2020-918 THREE VANS RECOMMENDATION: A. Approve a Purchase Order to National Auto Fleet Group for the purchase of one new/unused Toyota Prius sedan, three new/unused F150 trucks, three new/unused F250 Utility Body trucks, one new/unused Transit Connect Van, and two new/unused Transit Cargo Vans using Sourcewell (formerly National Joint Powers Alliance) Cooperative Contract No. 120716-NAF, for a total amount of $357,312 plus freight; and B. Approve a contingency of $17,866 (5%). Originator: Rob Thompson Attachments: Agenda Report PPP 02-05-2020 Fleet Services Purchase ADMINISTRATION COMMITTEE: 13. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO 2020-943 THE PRE-APPROVED OEM SOLE SOURCE LIST RECOMMENDATION: A. Receive and file Orange County Sanitation District purchases made under the General Manager's authority for the period of October 1, 2019 to December 31, 2019; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2019 to December 31, 2019: • ALFA LAVAL - Parts and Repairs for Centrifuge Rotating Assembly • CHEVRON - Chevron 5200 HDAX Low Ash 40 Lubricating Oil • EMERSON/CALTROL - Fisher Valve Training for Instrumentation Technicians • FLEXIM - Flow Meters • INTERSCAN/GAS DETECTION - 2 Point H2S Monitoring Systems • PATTERSON - Pumps and Parts • SOLAR TURBINES - Generator Parts and Repairs • TRANE COMPANY - Equipment, Parts, Maintenance, Repairs, and Training Page 5 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 • TRIDENT - Actuator Parts and Repairs • TURVAC - Alignment Certification Training Originator: Lorenzo Tyner Attachments: Agenda Report 14. MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD 2020-946 ENDED DECEMBER 31, 2019 RECOMMENDATION: Receive and file the Orange County Sanitation District Mid-Year Financial Report for the period ended December 31, 2019. Originator: Lorenzo Tyner Attachments: Agenda Report Mid-Year Consolidated Financial Report for the period ended December 31, 2019 15. CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET 2020-947 CALENDAR FOR PREPARATION OF THE FISCAL YEARS 2020-21 AND 2021-22 BUDGET RECOMMENDATION: Approve the FY 2020-21 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2020-21 and 2021-22 budget. Originator: Lorenzo Tyner Attachments: Agenda Report FY 2020-21 Preliminary Budget Assumptions Budget Calendar 2020-21 PPP 02-19-2020 Admin Committee - Budget LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 16. PUBLIC AFFAIRS UPDATE FOR THE MONTHS OF DECEMBER 2019 2020-923 AND JANUARY 2020 RECOMMENDATION: Receive and file the Public Affairs Update for the months of December 2019 and January 2020. Originator: Jim Herberg Page 6 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 Attachments: Agenda Report Outreach and Media Summary December 2019 and January 2020 PPP 02-10-2020 LaPA Committee - Public Affairs Update 17. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF JANUARY 2020-924 2020 RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of January 2020. Originator: Jim Herberg Attachments: Agenda Report Federal Update - ENS Resources Federal Legislative Matrix - ENS Resources State Update - Townsend Public Affairs State Legislative Matrix - Townsend Public Affairs Coalition Letter for Bond Funding Grant Matrix PPP 02-10-2020 LaPA Committee - ENS Update PPP 02-10-2020 LaPA Committee - TPA Update STEERING COMMITTEE: 18. SINGAPORE INTERNATIONAL WATER WEEK 2020 ATTENDANCE 2020-948 RECOMMENDATION: Approve out-of-country travel to Singapore for Rob Thompson to participate in the Singapore International Water Week to present on water recycling, resource recovery, and resiliency, contingent on receipt of $2,000 in scholarship funding to offset travel costs. Originator: Rob Thompson Attachments: Agenda Report NON-CONSENT: None. INFORMATION ITEMS: None. Page 7 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 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: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. CS-1 CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - 2020-931 GOVERNMENT CODE SECTION 54956.9(D)(1) RECOMMENDATION: Convene in Closed Session: OCSD v. Mission Clay Pipe et al., Orange County Superior Court Case No. 30-2017-00942372-CU-BC-CJC Attachments: Agenda Report Memo re Mission Clay Pipe Existing Litigation CS-2 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED 2020-932 LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(4) RECOMMENDATION: Convene in Closed Session: Number of Potential Cases: 1 Initiation of litigation regarding development fees and conditions at Project OCSD Headquarters Building: City of Fountain Valley Attachments: Agenda Report Memo re Anticipated Litigation Headquaters Building CS-3 CONFERENCE WITH REAL PROPERTY NEGOTIATORS - 2020-933 GOVERNMENT CODE SECTION 54956.8 RECOMMENDATION: Convene in Closed Session: Property: 18475 Bandilier Cir. Fountain Valley, CA - APN No.156-163-15 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Lorenzo Tyner; Assistant General Manager, Rob Thompson; and Director of Page 8 of 9 BOARD OF DIRECTORS Regular Meeting Agenda Wednesday, February 26, 2020 Engineering, Kathy Millea. Negotiating parties: Sukut Real Properties II, LLC Under negotiation: Price and terms of payment Attachments: Agenda Report Memo re Real Property CS-4 CONFERENCE WITH REAL PROPERTY NEGOTIATORS - 2020-939 GOVERNMENT CODE SECTION 54956.8 RECOMMENDATION: Convene in Closed Session: Property: 7292 Slater Avenue Huntington Beach, CA - APN No. 156-163-15 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Lorenzo Tyner; and Assistant General Manager, Rob Thompson. Negotiating parties: Northington Huntington Beach Investors LLC Under negotiation: Price and terms of payment Attachments: Agenda Report Memo re Real Property (Northington) RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Board members may request staff to place an item on a future agenda. ADJOURNMENT: Adjourn the Board meeting until the Regular Meeting of the Board of Directors on March 25, 2020 at 6:00 p.m. Page 9 of 9 oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 BOARD OF DIRECTORS (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-875 Agenda Date: 2/26/2020 Agenda Item No: 2. FROM: James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: APPROVAL OF MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve Minutes of the Regular Meeting of the Board of Directors held January 22, 2020. BACKGROUND In accordance with the Board of Directors Rules of Procedure, an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. RELEVANT STANDARDS • Resolution No. OCSD 19-19 ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Minutes of the Board of Directors meeting held January 22, 2020 Orange County Sanitation District Page 1 of 1 Printed on 2/20/2020 powered by LegistarTM ORANGE COUNTY SANITATION DISTRICT MINUTES BOARD OF DIRECTORS JAN UARY 22, 2020 I y S A N l Tq T�O� 2 � Q � c TANG THE Board Room Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 BOARD OF DIRECTORS Minutes January 22, 2020 CALL TO ORDER A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Vice-Chairman John Withers on January 22, 2020 at 6:06 p.m. in the Administration Building. Director Tim Shaw delivered the invocation and led the Pledge of Allegiance. ROLL CALL AND DECLARATION OF QUORUM 1. APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT 2019-853 BOARD OF DIRECTORS Originator: Kelly Lore Clerk of the Board Kelly Lore announced that Late Communication from member agencies had been received regarding the item. WITHOUT OBJECTION AMENDED ACTION TAKEN TO: Receive and file minute excerpts of member agencies relating to appointments to the Orange County Sanitation District Board of Directors: Agency Director Alternate Director City of Anaheim Lucille Kring Denise Barnes City of Buena Park Fred Smith Connor Traut City of Irvine Christina Shea Anthony Kuo City of Los Alamitos Richard Murphy Dean Grose City of Newport Beach Brad Avery Joy Brenner City of Placentia Chad Wanke Ward Smith City of Seal Beach Sandra Massa-Lavitt Schelly Sustarsic City of Stanton David Shawver Carol Warren City of Tustin Allan Bernstein Charles Puckett Costa Mesa Sanitary District James Ferryman Bob Ooten Irvine Ranch Water District John Withers Doug Reinhart Yorba Linda Water District Brooke Jones Phil Hawkins Additional minute excerpts of member agencies were received and filed related to appointments to the Orange County Sanitation District Board of Directors as follows: Agency Director Alternate Director City of Brea Glenn Parker Cecilia Hupp City of Fountain Valley Cheryl Brothers Patrick Harper City of Fullerton Jesus J. Silva Jan Flory City of Garden Grove Steve Jones John O'Neill Page 1 of 9 BOARD OF DIRECTORS Minutes January 22, 2020 ROLL CALL AND DECLARATION OF QUORUM The Clerk of the Board declared a quorum present as follows: PRESENT: Allan Bernstein, Doug Chaffee, Robert Collacott, James Ferryman, Cecilia Iglesias, Brooke Jones, Peter Kim, Lucille Kring, Sandra Massa-Lavitt, Mark Murphy, Richard Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, Christina Shea, Jesus Silva, Fred Smith, Chad Wanke, John Withers, Mariellen Yarc, Joy Brenner (Alternate) and John O'Neill (Alternate) ABSENT: David Shawver STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Kelly Lore, Clerk of the Board; Jennifer Cabral; Raul Cuellar; Mike Dorman; Brian Engeln; Al Garcia Yolanda Herrera; Jim Kavalec; Tina Knapp; Jeff Mohr; Cindy Murra; Shahrzad Namini; Wally Ritchie; Eros Yong; and Ruth Zintzun. OTHERS PRESENT: Brad Hogin (General Counsel) PUBLIC COMMENTS: None. Clerk of the Board Kelly Lore read additional Late Communication into the record regarding a change to the term of the agreement in the recommendation for Item No. 5. SPECIAL PRESENTATIONS: None. REPORTS: Vice-Chair Withers reported that Chair Shawver is at the CASA Winter conference today representing OCSD. Vice-Chair Withers announced that an updated Board of Directors' Guide to Business Book for 2020 and a brief survey titled Proposed Informational Item Presentations for 2020 were distributed to all Board members. He asked that questions be referred to the Clerk of the Board after the meeting. Vice-Chair Withers reminded the Board that Wednesday, February 12 and Monday, February 17 are official OCSD holidays and Administrative offices would be closed; and that the Administration Committee meeting regularly scheduled for February 12 was rescheduled to February 19th. General Manager Herberg reported that he had attended the CASA Winter conference during Page 2 of 9 BOARD OF DIRECTORS Minutes January 22, 2020 the week where he presented results of the Climate Resiliency Study and discussed OCSD's approach for implementing the recommendations. Mr. Herberg also stated that his Work Plan mid-year update was included in the agenda; seven of the individual goals have already been completed; and the remainder are scheduled to be completed by June 30th. Mr. Herberg reported a correction to the quantity of biosolids generated over the last six months, in his monthly GM report. He stated that it was initially reported at 3,400 tons when it should have read 104,000 tons. He further stated that OCSD created 770 million cubic feet of biogas, 49.5 gigawatts hours of electricity, and 23.4 billion gallons of water for OCWD reuse. CONSENT CALENDAR: 2. APPROVAL OF MINUTES 2019-665 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Board of Directors held December 18, 2019. AYES: Allan Bernstein, Cheryl Brothers, Doug Chaffee, Robert Collacott, James Ferryman, Cecilia Iglesias, Brooke Jones, Peter Kim, Lucille Kring, Sandra Massa-Lavitt, Mark Murphy, Richard Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, Christina Shea, Jesus Silva, Fred Smith, Chad Wanke, John Withers, Mariellen Yarc, Joy Brenner (Alternate) and John O'Neill (Alternate) NOES: None ABSENT: David Shawver ABSTENTIONS: None RECEIVE AND FILE: 3. COMMITTEE MEETING MINUTES 2019-737 Originator: Kelly Lore WITHOUT OBJECTION ACTION TAKEN TO RECEIVE: A. Minutes of the Steering Committee Meeting held November 20, 2019 B. Minutes of the GWRS Steering Committee Meeting held October 14, 2019 4. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH 2O19-800 OF DECEMBER 2019 Originator: Lorenzo Tyner Page 3 of 9 BOARD OF DIRECTORS Minutes January 22, 2020 WITHOUT OBJECTION ACTION TAKEN TO RECEIVE: Report of the Investment Transactions for the month of December 2019. OPERATIONS COMMITTEE: 5. AWARD OF CORROSION MANAGEMENT SUPPORT SERVICES, 2019-821 SPECIFICATION NO. CS-2019-1071 BD Originator: Kathy Millea Late communication was provided by Assistant General Manager Rob Thompson which amended staff's recommendation for the terms of the item's agreement. An amended motion was made. MOVED, SECONDED, AND DULY CARRIED TO: A . Approve a Professional Consultant Services Agreement with Corrpro Companies, Inc. for Corrosion Management Support Services, Specification No. CS-2019-1071 BD, for the period of February 1, 2020 through January 31, 2021 for a total annual amount not to exceed $600,000, with four (4) one-year renewal options; and B. Approve an annual contingency of $60,000 (10%). A. Approve a Professional Consultant Services Agreement with Corrpro , 7n�Tr,r a total .,RR ,nl .,ffl G IRt RE)t tG e)(eceQ6nn 900 .With feblF (4) Gne Yeaf $60,000 o AYES: Allan Bernstein, Cheryl Brothers, Doug Chaffee, Robert Collacott, James Ferryman, Cecilia Iglesias, Brooke Jones, Peter Kim, Lucille Kring, Sandra Massa-Lavitt, Mark Murphy, Richard Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, Christina Shea, Jesus Silva, Fred Smith, Chad Wanke, John Withers, Mariellen Yarc, Joy Brenner (Alternate) and John O'Neill (Alternate) NOES: None ABSENT: David Shawver ABSTENTIONS: None ADMINISTRATION COMMITTEE: None. Page 4 of 9 BOARD OF DIRECTORS Minutes January 22, 2020 LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: None. STEERING COMMITTEE: 6. REQUEST FOR FUNDING - WASTEWATER FLOW & LOADING 2020-881 STUDY Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Approve the Orange County Sanitation District's on-going participation in the California Association of Sanitation Agencies wastewater flow and loading study and the Participating Agency Contribution Pledge of $410,676. AYES: Allan Bernstein, Cheryl Brothers, Doug Chaffee, Robert Collacott, James Ferryman, Cecilia Iglesias, Brooke Jones, Peter Kim, Lucille Kring, Sandra Massa-Lavitt, Mark Murphy, Richard Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, Christina Shea, Jesus Silva, Fred Smith, Chad Wanke, John Withers, Mariellen Yarc, Joy Brenner (Alternate) and John O'Neill (Alternate) NOES: None ABSENT: David Shawver ABSTENTIONS: None 7. GENERAL MANAGER'S FISCAL YEAR 2019-2020 WORK PLAN 2020-882 MID-YEAR UPDATE Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the General Manager's Fiscal Year 2019-2020 Work Plan Mid-Year Update and Memorandum. AYES: Allan Bernstein, Cheryl Brothers, Doug Chaffee, Robert Collacott, James Ferryman, Cecilia Iglesias, Brooke Jones, Peter Kim, Lucille Kring, Sandra Massa-Lavitt, Mark Murphy, Richard Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, Christina Shea, Jesus Silva, Fred Smith, Chad Wanke, John Withers, Mariellen Yarc, Joy Brenner (Alternate) and John O'Neill (Alternate) NOES: None ABSENT: David Shawver ABSTENTIONS: None Page 5 of 9 BOARD OF DIRECTORS Minutes January 22, 2020 NON-CONSENT: 8. HEADWORKS MODIFICATIONS AT PLANT NO. 2 FOR GWRS FINAL 2019-677 EXPANSION, PROJECT NO. P2-122 Originator: Kathy Millea Director of Engineering Kathy Millea provided a brief presentation regarding the item. MOVED, SECONDED, AND DULY CARRIED TO: A. Receive and file Bid Tabulation and Recommendation for Headworks Modifications at Plant No. 2 for GWRS Final Expansion, Project No. P2-122; B. Award a Construction Contract to Shimmick Construction Co., Inc. for Headworks Modifications at Plant No. 2 for GWRS Final Expansion, Project No. P2-122, for a total amount not to exceed $14,487,735; and C. Approve a contingency of $1,448,773 (10%). AYES: Allan Bernstein, Cheryl Brothers, Doug Chaffee, Robert Collacott, James Ferryman, Cecilia Iglesias, Brooke Jones, Peter Kim, Lucille Kring, Sandra Massa-Lavitt, Mark Murphy, Richard Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, Christina Shea, Jesus Silva, Fred Smith, Chad Wanke, John Withers, Mariellen Yarc, Joy Brenner (Alternate) and John O'Neill (Alternate) NOES: None ABSENT: David Shawver ABSTENTIONS: None 9. HEADWORKS MODIFICATIONS AT PLANT NO. 2 FOR GWRS FINAL 2019-854 EXPANSION, PROJECT NO. P2-122 Originator: Kathy Millea Director of Engineering Kathy Millea provided a brief presentation regarding the item. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Construction Services Agreement with CDM Smith Inc. to provide construction support services for Headworks Modifications at Plant No. 2 for GWRS Final Expansion, Project No. P2-122, for an amount not to exceed $2,200,000; and B. Approve a contingency of $220,000 (10%). Page 6 of 9 BOARD OF DIRECTORS Minutes January 22, 2020 AYES: Allan Bernstein, Cheryl Brothers, Doug Chaffee, Robert Collacott, James Ferryman, Cecilia Iglesias, Brooke Jones, Peter Kim, Lucille Kring, Sandra Massa-Lavitt, Mark Murphy, Richard Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, Christina Shea, Jesus Silva, Fred Smith, Chad Wanke, John Withers, Mariellen Yarc, Joy Brenner (Alternate) and John O'Neill (Alternate) NOES: None ABSENT: David Shawver ABSTENTIONS: None INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: Director Ferryman stated that his committees were dark last month, but he wanted to report that longtime employee of Costa Mesa Sanitation District Rob Harriers had recently passed away. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(d)(4) & 54956.8: The Board convened in closed session at 6:24 p.m. to discuss one item. Item No. CS-2 was not heard. Confidential minutes of the Closed Session 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. CS-1 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED 2020-873 LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(4) CONVENED IN CLOSED SESSION: Voted unanimously to: Reject the City of Fountain Valley's offer to "Rent" airspace over Ellis Avenue. Number of Potential Cases: 1 Initiation of litigation regarding development fees and conditions at Project OCSD Headquarters Building: City of Fountain Valley Page 7 of 9 BOARD OF DIRECTORS Minutes January 22, 2020 AYES: Allan Bernstein, Cheryl Brothers, Doug Chaffee, Robert Collacott, James Ferryman, Cecilia Iglesias, Brooke Jones, Peter Kim, Lucille Kring, Sandra Massa-Lavitt, Mark Murphy, Richard Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, Christina Shea, Jesus Silva, Fred Smith, Chad Wanke, John Withers, Mariellen Yarc, Joy Brenner (Alternate) and John O'Neill (Alternate) NOES: None ABSENT: David Shawver ABSTENTIONS: None CS-2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS - 2020-874 GOVERNMENT CODE SECTION 54956.8 CONVENED IN CLOSED SESSION: Property: 18475 Bandilier Cir. Fountain Valley, CA - APN No.156-163-15; Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Lorenzo Tyner; Assistant General Manager, Rob Thompson; and Director of Engineering, Kathy Millea. Negotiating parties: Sukut Real Properties II, LLC Under negotiation: Price and terms of payment RECONVENE IN REGULAR SESSION. The Board reconvened in regular session at 6:50 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin stated that in Closed Session the Board voted unanimously to reject the offer from the City of Fountain Valley to "Rent" airspace over Ellis Avenue. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. Page 8 of 9 BOARD OF DIRECTORS Minutes January 22, 2020 ADJOURNMENT: At 6:41 p.m., Vice-Chair Withers adjourned the meeting until the Regular Meeting of the Board of Directors to be held on February 26, 2020 at 6:00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board Page 9 of 9 oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 BOARD OF DIRECTORS (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-904 Agenda Date: 2/26/2020 Agenda Item No: 3. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JANUARY 2020 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the following: Report of the Investment Transactions for the month of January 2020. 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 January 31, 2020. RELEVANT STANDARDS • CA Government Code Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Report of the Investment Transactions for the Month of January 2020 Orange County Sanitation District Page 1 of 1 Printed on 2/20/2020 powered by LegistarTM U.S. Bank Transaction History January 2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss ACQUISITIONS 01/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,500,000.0000 1.000000 -7,500,000.00 7,500,000.00 0.00 01/03/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 16,711.5700 1.000000 -16,711.57 16,711.57 0.00 01/03/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 19,501.1700 1.000000 -19,501.17 19,501.17 0.00 01/06/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 89,625.0000 1.000000 -89,625.00 89,625.00 0.00 01/07/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,500,000.0000 1.000000 -7,500,000.00 7,500,000.00 0.00 01/10/2020 3135GOX24 PURCHASED PAR VALUE OF F N M A 1.625% 1/07/25/BARCLAYS CAPITAL 4,340,000.0000 0.996810 -4,326,155.40 4,326,155.40 0.00 INC.FIXED IN/4,340,000 PAR VALUE AT 99.681 % 01/10/2020 822582BG6 PURCHASED PAR VALUE OF SHELL INTERNATIONAL 2.125% 5/11/20/PERSHING 1,000,000.0000 1.001230 -1,001,230.00 1,001,230.00 0.00 LLC/1,000,000 PAR VALUE AT 100.123% 01/14/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,576.2500 1.000000 -14,576.25 14,576.25 0.00 01/14/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,200,000.0000 1.000000 -1,200,000.00 1,200,000.00 0.00 01/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 42,993.6200 1.000000 -42,993.62 42,993.62 0.00 01/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 933,363.2700 1.000000 -933,363.27 933,363.27 0.00 01/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,100,000.0000 1.000000 -1,100,000.00 1,100,000.00 0.00 01/16/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 82,875.0000 1.000000 -82,875.00 82,875.00 0.00 01/17/2020 9128281-32 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 8/31/20/NOMURA 5,000,000.0000 0.998594 -4,992,968.75 4,992,968.75 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99.859375% 01/17/2020 912828XY1 PURCHASED PAR VALUE OF U S TREASURY NT 2.500% 6/30/20/NOMURA 5,000,000.0000 1.004141 -5,020,703.13 5,020,703.13 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.4140626% 01/17/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,047,172.2100 1.000000 -5,047,172.21 5,047,172.21 0.00 01/21/2020 90331HPL1 PURCHASED PAR VALUE OF US BANK NA MTN 2.050% 1/21/25/US BANCORP 7,270,000.0000 0.997870 -7,254,514.90 7,254,514.90 0.00 INVESTMENTS INC./7,270,000 PAR VALUE AT 99.787% 01/21/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,075.0000 1.000000 -14,075.00 14,075.00 0.00 01/22/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 104,375.0000 1.000000 -104,375.00 104,375.00 0.00 01/23/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 22,366.6700 1.000000 -22,366.67 22,366.67 0.00 01/23/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 75,962.5000 1.000000 -75,962.50 75,962.50 0.00 01/23/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,000,000.0000 1.000000 -7,000,000.00 7,000,000.00 0.00 01/27/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 33,412.5000 1.000000 -33,412.50 33,412.50 0.00 01/27/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 281,251.7700 1.000000 -281,251.77 281,251.77 0.00 01/28/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 117,251.5100 1.000000 -117,251.51 117,251.51 0.00 01/29/2020 58770FAC6 PURCHASED PAR VALUE OF MERCEDES BENZ AUTO 1.840%12/15/22/MITSUBISHI 2,050,000.0000 0.999868 -2,049,729.81 2,049,729.81 0.00 UFJ SECURITIES USA/2,050,000 PAR VALUE AT 99.98682% 01/29/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 16,368.0400 1.000000 -16,368.04 16,368.04 0.00 01/29/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,500,000.0000 1.000000 -4,500,000.00 4,500,000.00 0.00 01/30/2020 9128281-32 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 8/31/20/NOMURA 5,000,000.0000 0.998789 -4,993,945.31 4,993,945.31 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99.8789062% 1 of 9 U.S. Bank Transaction History January 2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 01/30/2020 912828XH8 PURCHASED PAR VALUE OF U S TREASURY NT 1.625% 6/30/20/NOMURA 5,000,000.0000 1.000273 -5,001,367.19 5,001,367.19 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.0273438% 01/30/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 12,985,765.4700 1.000000 -12,985,765.47 12,985,765.47 0.00 01/31/2020 313384WGO PURCHASED PAR VALUE OF F H L B DISC NTS 5/01/20/BARCLAYS CAPITAL 3,000,000.0000 0.996031 -2,988,094.17 2,988,094.17 0.00 INC.FIXED IN/3,000,000 PAR VALUE AT 99.603139% 01/31/2020 912796TG4 PURCHASED PAR VALUE OF U S TREASURY BILL 2/20/20/NOMURA 2,000,000.0000 0.999161 -1,998,322.22 1,998,322.22 0.00 SECURITIES INTERNATIONA/2,000,000 PAR VALUE AT 99.916111 % 01/31/2020 912796XA2 PURCHASED PAR VALUE OF U S TREASURY BILL 3/10/20/CITIGROUP GLOBAL 2,000,000.0000 0.998351 -1,996,701.25 1,996,701.25 0.00 MARKETS INC./2,000,000 PAR VALUE AT 99.8350625% 01/31/2020 912828XY1 PURCHASED PAR VALUE OF U S TREASURY NT 2.500% 6/30/20/NOMURA 1,000,000.0000 1.003867 -1,003,867.19 1,003,867.19 0.00 SECURITIES INTERNATIONA/1,000,000 PAR VALUE AT 100.386719% 01/31/2020 9128284Y3 PURCHASED PAR VALUE OF U S TREASURY NT 2.625% 8/31/20/CITIGROUP 7,000,000.0000 1.006055 -7,042,382.81 7,042,382.81 0.00 GLOBAL MARKETS INC17,000,000 PAR VALUE AT 100.60546871 % 01/31/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,222,505.1000 1.000000 -7,222,505.10 7,222,505.10 0.00 01/31/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 33,810,017.6600 1.000000 -33,810,017.66 33,810,017.66 0.00 TOTAL ACQUISITIONS 139,390,169.3100 -139,400,151.44 139,400,151.44 0.00 DISPOSITIONS 01/02/2020 912796RT8 MATURED PAR VALUE OF U S TREASURY BILL 1/02/20 7,500,000 PAR VALUE AT -7,500,000.0000 1.000000 7,496,905.21 -7,496,905.21 0.00 100% 01/07/2020 912796WM7 MATURED PAR VALUE OF U S TREASURY BILL 1/07/20 7,500,000 PAR VALUE AT -7,500,000.0000 1.000000 7,495,320.31 -7,495,320.31 0.00 100% 01/10/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,004,712.6400 1.000000 1,004,712.64 -1,004,712.64 0.00 01/10/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,326,155.4000 1.000000 4,326,155.40 -4,326,155.40 0.00 01/14/2020 313384RU5 MATURED PAR VALUE OF F H L B DISC NTS 1/14/20 1,200,000 PAR VALUE AT -1,200,000.0000 1.000000 1,198,691.67 -1,198,691.67 0.00 100% 01/15/2020 69372AAF9 MATURED PAR VALUE OF PACCAR FINANCIAL CORP C P 1/15/20 1,100,000 PAR -1,100,000.0000 1.000000 1,094,969.03 -1,094,969.03 0.00 VALUE AT 100% 01/15/2020 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 4.677% 1/01/28 DECEMBER FHLMC -17.9700 0.000000 17.97 -17.53 0.44 DUE 1/15/20 01/15/2020 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.023% 8/15/32 -284.5000 0.000000 284.50 -284.80 -0.30 01/15/2020 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 -44,437.4000 1.529051 44,437.40 -44,434.15 3.25 01/15/2020 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -97,099.9900 0.699764 97,099.99 -97,093.01 6.98 01/15/2020 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850%12/15/21 -285,784.5400 0.237756 285,784.54 -285,771.51 13.03 01/15/2020 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 CMO FINAL -35,911.0400 0.000000 35,911.04 -35,623.47 287.57 PAYDOW N 01/15/2020 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -156,814.1100 0.433297 156,814.11 -154,382.27 2,431.84 01/15/2020 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -281,903.2300 0.241030 281,903.23 -281,877.63 25.60 01/17/2020 89233GAH9 MATURED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 1/17/20 2,000,000 PAR -2,000,000.0000 1.000000 1,961,884.44 -1,961,884.44 0.00 VALUE AT 100% 2 of 9 U.S. Bank Transaction History January 2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 01/17/2020 912828357 SOLD PAR VALUE OF U S TREASURY NT 2.000% 1/31/20/CITIGROUP GLOBAL -5,000,000.0000 1.000195 5,000,976.56 -5,001,953.13 -976.57 MARKETS INC./5,000,000 PAR VALUE AT 100.0195312% 01/17/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,045,763.2200 1.000000 8,045,763.22 -8,045,763.22 0.00 01/21/2020 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 11#080023 4.125% 12/20/26 DECEMBER GNMA -167.8500 0.000000 167.85 -170.62 -2.77 DUE 1/20/20 01/21/2020 36225CC20 PAID DOWN PAR VALUE OF G N M A 11#080088 3.875% 6/20/27 DECEMBER GNMA -147.7300 0.000000 147.73 -150.96 -3.23 DUE 1/20/20 01/21/2020 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I#080395 3.875% 4/20/30 DECEMBER GNMA -275.1700 0.000000 275.17 -272.68 2.49 DUE 1/20/20 01/21/2020 36225CN28 PAID DOWN PAR VALUE OF G N M A 11#080408 3.875% 5/20/30 DECEMBER GNMA -333.8300 0.000000 333.83 -330.44 3.39 DUE 1/20/20 01/21/2020 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I#080965 3.250% 7/20/34 DECEMBER GNMA -1,172.7100 0.000000 1,172.71 -1,171.98 0.73 DUE 1/20/20 01/21/2020 43814RACO PAID DOWN PAR VALUE OF HONDA AUTO 1.210% 12/18/20 -102,880.6700 0.000000 102,880.67 -101,751.39 1,129.28 01/21/2020 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -158,027.7000 0.000000 158,027.70 -155,521.48 2,506.22 01/21/2020 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -349,944.2700 0.000000 349,944.27 -349,921.73 22.54 01/21/2020 90331HNL3 SOLD PAR VALUE OF US BANK NA MTN 2.850% 1/23/23/STIFEL,NICOLAUS& -3,000,000.0000 1.028270 3,084,810.00 -2,988,960.00 95,850.00 CO.,INC./3,000,000 PAR VALUE AT 102.827% 01/21/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,310,003.8700 1.000000 3,310,003.87 -3,310,003.87 0.00 01/23/2020 313384SD2 MATURED PAR VALUE OF F H L B DISC NTS 1/23/20 5,000,000 PAR VALUE AT -5,000,000.0000 1.000000 4,992,586.11 -4,992,586.11 0.00 100% 01/23/2020 89114M2Z9 MATURED PAR VALUE OF TORONTO DOMINION C D 2.200% 1/23/20 2,000,000 PAR -2,000,000.0000 1.000000 2,000,000.00 -2,000,285.65 -285.65 VALUE AT 100% 01/27/2020 31398VJ98 MATURED PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 56,619.55 PAR -56,619.5500 0.710912 40,251.51 -59,830.94 -19,579.43 VALUE AT 71.09117983% 01/27/2020 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -6,518.5600 0.000000 6,518.56 -7,382.27 -863.71 01/27/2020 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 DECEMBER FNMA -166.5700 0.000000 166.57 -176.16 -9.59 DUE 1/25/20 01/27/2020 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 DECEMBER FNMA -994.8700 0.000000 994.87 -1,069.49 -74.62 DUE 1/25/20 01/27/2020 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400%11/01/20 DECEMBER FNMA -712.4400 0.000000 712.44 -697.02 15.42 DUE 1/25/20 01/27/2020 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 DECEMBER FNMA -1,265.5400 0.000000 1,265.54 -1,360.46 -94.92 DUE 1/25/20 01/27/2020 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 DECEMBER FNMA -9.1100 0.000000 9.11 -9.79 -0.68 DUE 1/25/20 01/27/2020 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 DECEMBER FNMA -9,088.8000 0.000000 9,088.80 -9,770.46 -681.66 DUE 1/25/20 01/27/2020 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4.347% 2/01/35 DECEMBER FNMA -10,840.8400 0.000000 10,840.84 -10,756.15 84.69 DUE 1/25/20 3 of 9 U.S. Bank Transaction History January 2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 01/27/2020 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 DECEMBER FNMA -79.4800 0.000000 79.48 -85.44 -5.96 DUE 1/25/20 01/27/2020 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 DECEMBER FNMA -1,999.6500 0.000000 1,999.65 -2,149.62 -149.97 DUE 1/25/20 01/27/2020 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 DECEMBER FNMA -236.5000 0.000000 236.50 -250.12 -13.62 DUE 1/25/20 01/27/2020 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 DECEMBER FNMA -217.1600 0.000000 217.16 -229.67 -12.51 DUE 1/25/20 01/27/2020 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -4,646.6700 0.000000 4,646.67 -4,645.22 1.45 01/27/2020 78445JAA5 PAID DOWN PAR VALUE OF S L M A 3.5925% 4/25/23 -570.0100 0.000000 570.01 -567.70 2.31 01/29/2020 313384SK6 MATURED PAR VALUE OF F H L B DISC NTS 1/29/20 4,500,000 PAR VALUE AT -4,500,000.0000 1.000000 4,492,175.00 -4,492,175.00 0.00 100% 01/29/2020 31398VJ98 MATURED PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20/DIRECT FROM -40,251.5100 1.000000 40,251.51 -42,534.53 -2,283.02 ISSUER/1/25/2020 MATURITY PROCEEDS 01/29/2020 31398VJ98 MATURED-REV PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 56,619.5500 0.710912 -40,251.51 59,830.94 19,579.43 01/29/2020 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 DECEMBER -172,468.8200 210.169775 172,468.82 -182,251.03 -9,782.21 PAYMENT 01/29/2020 31398VJ98 PAID DOWN-RV PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 RATE 156,100.7800 0.138540 -156,100.78 164,954.62 8,853.84 REVISION 01/29/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,012,854.8100 1.000000 2,012,854.81 -2,012,854.81 0.00 01/30/2020 912796RY7 MATURED PAR VALUE OF U S TREASURY BILL 1/30/20 21,000,000 PAR VALUE -21,000,000.0000 1.000000 20,909,107.77 -20,909,107.77 0.00 AT 100% 01/30/2020 94974BGF1 MATURED PAR VALUE OF WELLS FARGO MTN 2.150% 1/30/20 1,000,000 PAR -1,000,000.0000 1.000000 1,000,000.00 -996,600.00 3,400.00 VALUE AT 100% 01/30/2020 822582BG6 SOLD PAR VALUE OF SHELL INTERNATIONAL 2.125% 5/11/20/TD SECURITIES -1,000,000.0000 1.001070 1,001,070.00 -1,001,230.00 -160.00 (USA)/1,000,000 PAR VALUE AT 100.107% 01/31/2020 912828H52 MATURED PAR VALUE OF U S TREASURY NT 1.250% 1/31/20 13,500,000 PAR -13,500,000.0000 1.000000 13,500,000.00 -13,396,542.97 103,457.03 VALUE AT 100% 01/31/2020 912828UL2 MATURED PAR VALUE OF U S TREASURY NT 1.375% 1/31/20 5,000,000 PAR VALUE -5,000,000.0000 1.000000 5,000,000.00 -4,988,671.88 11,328.12 AT 100% 01/31/2020 912828357 MATURED PAR VALUE OF U S TREASURY NT 2.000% 1/31/20 30,000,000 PAR -30,000,000.0000 1.000000 30,000,000.00 -29,961,132.82 38,867.18 VALUE AT 100% 01/31/2020 9128281-99 SOLD PAR VALUE OF U S TREASURY NT 1.375%10/31/20/NOMURA SECURITIES -3,000,000.0000 0.998633 2,995,898.44 -2,961,572.55 34,325.89 INTERNATIONA/3,000,000 PAR VALUE AT 99.86328133% 01/31/2020 9128281-57 SOLD PAR VALUE OF U S TREASURY NT 1.750% 9/30/22/CITIGROUP GLOBAL -4,000,000.0000 1.009727 4,038,906.25 -3,948,828.12 90,078.13 MARKETS INC./4,000,000 PAR VALUE AT 100.97265625% 01/31/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -70,000,000.0000 1.000000 70,000,000.00 -70,000,000.00 0.00 01/31/2020 31846V567 SOLD 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 TOTAL DISPOSITIONS -217,608,658.4000 217,571,959.19 -217,194,662.76 377,296.43 4 of 9 U.S. Bank Transaction History January 2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss OTHER TRANSACTIONS 01/02/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 19,501.17 0.00 0.00 12/31/2019 INTEREST FROM 12/1/19 TO 12/31/19 01/02/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 16,711.57 0.00 0.00 12/31/2019 INTEREST FROM 12/1/19 TO 12/31/19 01/02/2020 912796RT8 INTEREST EARNED ON U S TREASURY BILL 1/02/20$1 PV ON 7500000.0000 0.0000 0.000000 3,094.79 0.00 0.00 SHARES DUE 1/2/2020 7,500,000 PAR VALUE AT 100% 01/06/2020 3135GOS38 INTEREST EARNED ON F N M A 2.000% 1/05/22$1 PV ON 3000000.0000 0.0000 0.000000 30,000.00 0.00 0.00 SHARES DUE 1/5/2020 01/06/2020 40428OBF5 INTEREST EARNED ON HSBC HOLDINGS PLC 2.650% 1/05/22$1 PV ON 0.0000 0.000000 59,625.00 0.00 0.00 4500000.0000 SHARES DUE 1/5/2020 01/07/2020 912796WM7 INTEREST EARNED ON U S TREASURY BILL 1/07/20$1 PV ON 7500000.0000 0.0000 0.000000 4,679.69 0.00 0.00 SHARES DUE 1/7/2020 7,500,000 PAR VALUE AT 100% 01/10/2020 822582BG6 PAID ACCRUED INTEREST ON PURCHASE OF SHELL INTERNATIONAL 2.125% 0.0000 0.000000 -3,482.64 0.00 0.00 5/11/20 01/13/2020 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-1872.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 01/13/2020 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-1872.00 UNITS 0.0000 0.000000 0.00 -1,872.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 01/13/2020 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-1872.0000 UNITS -1,872.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 01/13/2020 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-1872.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 01/14/2020 02665WCJ8 INTEREST EARNED ON AMERICAN HONDA MTN 3.450% 7/14/23$1 PV ON 0.0000 0.000000 14,576.25 0.00 0.00 845000.0000 SHARES DUE 1/14/2020 01/14/2020 313384RU5 INTEREST EARNED ON F H L B DISC NTS 1/14/20$1 PV ON 1200000.0000 0.0000 0.000000 1,308.33 0.00 0.00 SHARES DUE 1/14/2020 1,200,000 PAR VALUE AT 100% 01/15/2020 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15/22$1 PV ON 10084.2400 0.0000 0.000000 10,084.24 0.00 0.00 SHARES DUE 1/15/2020$0.00161/PV ON 6,270,000.00 PV DUE 1/15/20 01/15/2020 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4.677% 1/01/28$1 PV ON 6.9900 SHARES 0.0000 0.000000 6.99 0.00 0.00 DUE 1/15/2020 NOVEMBER FHLMC DUE 1/15/20 01/15/2020 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.023% 8/15/32$1 PV ON 22.7100 0.0000 0.000000 22.71 0.00 0.00 SHARES DUE 1/15/2020$0.00335/PV ON 6,774.15 PV DUE 1/15/20 01/15/2020 43815NABO INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22$1 PV ON 5589.1700 0.0000 0.000000 5,589.17 0.00 0.00 SHARES DUE 1/15/2020$0.00158/PV ON 3,530,000.00 PV DUE 1/15/20 01/15/2020 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 491.4500 0.0000 0.000000 491.45 0.00 0.00 SHARES DUE 1/15/2020$0.00152/PV ON 324,036.22 PV DUE 1/15/20 01/15/2020 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22$1 PV ON 5320.0000 0.0000 0.000000 5,320.00 0.00 0.00 SHARES DUE 1/15/2020$0.00190/PV ON 2,800,000.00 PV DUE 1/15/20 01/15/2020 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2467.5800 0.0000 0.000000 2,467.58 0.00 0.00 SHARES DUE 1/15/2020$0.00222/PV ON 1,113,192.86 PV DUE 1/15/20 5 of 9 U.S. Bank Transaction History January 2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 01/15/2020 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850%12/15/21 $1 PV ON 6568.4300 0.0000 0.000000 6,568.43 0.00 0.00 SHARES DUE 1/15/2020$0.00238/PV ON 2,765,654.65 PV DUE 1/15/20 01/15/2020 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22$1 PV ON 11883.6700 0.0000 0.000000 11,883.67 0.00 0.00 SHARES DUE 1/15/2020$0.00257/PV ON 4,630,000.00 PV DUE 1/15/20 01/15/2020 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 39.5000 SHARES 0.0000 0.000000 39.50 0.00 0.00 DUE 1/15/2020$0.00110/PV ON 35,911.04 PV DUE 1/15/20 01/15/2020 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21 $1 PV ON 2279.7000 0.0000 0.000000 2,279.70 0.00 0.00 SHARES DUE 1/15/2020$0.00146/PV ON 1,563,223.44 PV DUE 1/15/20 01/15/2020 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24$1 PV ON 6730.8700 0.0000 0.000000 6,730.87 0.00 0.00 SHARES DUE 1/15/2020$0.00161/PV ON 4,185,000.00 PV DUE 1/15/20 01/15/2020 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 1/15/2020$0.00255/PV ON 3,560,000.00 PV DUE 1/15/20 01/15/2020 69372AAF9 INTEREST EARNED ON PACCAR FINANCIAL CORP C P 1/15/20$1 PV ON 0.0000 0.000000 5,030.97 0.00 0.00 1100000.0000 SHARES DUE 1/15/2020 1,100,000 PAR VALUE AT 100% 01/15/2020 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15/21 $1 PV ON 6498.7200 0.0000 0.000000 6,498.72 0.00 0.00 SHARES DUE 1/15/2020$0.00236/PV ON 2,755,642.46 PV DUE 1/15/20 01/15/2020 912828WUO INTEREST EARNED ON U S TREASURY I P S 0.125% 7/15/24$1 PV ON 11268920.0000 0.0000 0.000000 7,043.08 0.00 0.00 SHARES DUE 1/15/2020 01/16/2020 78013XZU5 INTEREST EARNED ON ROYAL BANK OF MTN 2.550% 7/16/24$1 PV ON 0.0000 0.000000 82,875.00 0.00 0.00 6500000.0000 SHARES DUE 1/16/2020 01/17/2020 89233GAH9 INTEREST EARNED ON TOYOTA MOTOR CREDIT CO C P 1/17/20$1 PV ON 0.0000 0.000000 38,115.56 0.00 0.00 2000000.0000 SHARES DUE 1/17/2020 2,000,000 PAR VALUE AT 100% 01/17/2020 9128281-32 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 8/31/20 0.0000 0.000000 -26,253.43 0.00 0.00 01/17/2020 912828XY1 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.500% 6/30/20 0.0000 0.000000 -5,837.91 0.00 0.00 01/17/2020 9128283S7 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 2.000% 1/31/20 0.0000 0.000000 46,195.65 0.00 0.00 01/21/2020 3135GOT94 INTEREST EARNED ON F N M A DEB 2.375% 1/19/23$1 PV ON 5000000.0000 0.0000 0.000000 59,375.00 0.00 0.00 SHARES DUE 1/19/2020 01/21/2020 36225CAZ9 INTEREST EARNED ON G N M A I I#080023 4.125%12/20/26$1 PV ON 49.6800 0.0000 0.000000 49.68 0.00 0.00 SHARES DUE 1/20/2020 DECEMBER GNMA DUE 1/20/20 01/21/2020 36225CC20 INTEREST EARNED ON G N M A I I#080088 3.875% 6/20/27$1 PV ON 39.8000 SHARES 0.0000 0.000000 39.80 0.00 0.00 DUE 1/20/2020 DECEMBER GNMA DUE 1/20/20 01/21/2020 36225CNM4 INTEREST EARNED ON G N M A I I#080395 3.875% 4/20/30$1 PV ON 20.1000 SHARES 0.0000 0.000000 20.10 0.00 0.00 DUE 1/20/2020 DECEMBER GNMA DUE 1/20/20 01/21/2020 36225CN28 INTEREST EARNED ON G N M A I I#080408 3.875% 5/20/30$1 PV ON 150.0700 0.0000 0.000000 150.07 0.00 0.00 SHARES DUE 1/20/2020 DECEMBER GNMA DUE 1/20/20 01/21/2020 36225DCB8 INTEREST EARNED ON G N M A I I#080965 3.250% 7/20/34$1 PV ON 116.8400 0.0000 0.000000 116.84 0.00 0.00 SHARES DUE 1/20/2020 DECEMBER GNMA DUE 1/20/20 01/21/2020 43814RACO INTEREST EARNED ON HONDA AUTO 1.210%12/18/20$1 PV ON 230.9600 0.0000 0.000000 230.96 0.00 0.00 SHARES DUE 1/18/2020$0.00101/PV ON 229,048.89 PV DUE 1/18/20 6 of 9 U.S. Bank Transaction History January 2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 01/21/2020 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 2387.0100 0.0000 0.000000 2,387.01 0.00 0.00 SHARES DUE 1/18/2020$0.00149/PV ON 1,600,231.50 PV DUE 1/18/20 01/21/2020 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 8682.8100 0.0000 0.000000 8,682.81 0.00 0.00 SHARES DUE 1/18/2020$0.00229/PV ON 3,788,865.07 PV DUE 1/18/20 01/21/2020 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 1/21/2020$0.00246/PV ON 3,970,000.00 PV DUE 1/21/20 01/21/2020 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 4289.2500 0.0000 0.000000 4,289.25 0.00 0.00 SHARES DUE 1/18/2020$0.00251/PV ON 1,710,000.00 PV DUE 1/18/20 01/21/2020 4581XOCW6 INTEREST EARNED ON INTER AMER DEV BK 2.125% 1/18/22$1 PV ON 3000000.0000 0.0000 0.000000 31,875.00 0.00 0.00 SHARES DUE 1/18/2020 01/21/2020 45950KCJ7 INTEREST EARNED ON INTL FINANCE CORP 1.125% 7/20/21 $1 PV ON 2500000.0000 0.0000 0.000000 14,075.00 0.00 0.00 SHARES DUE 1/20/2020 01/21/2020 89114QC48 INTEREST EARNED ON TORONTO MTN 3.500% 7/19/23$1 PV ON 5000000.0000 0.0000 0.000000 87,500.00 0.00 0.00 SHARES DUE 1/19/2020 01/21/2020 90331HNL3 RECEIVED ACCRUED INTEREST ON SALE OF US BANK NA MTN 2.850% 1/23/23 0.0000 0.000000 42,275.00 0.00 0.00 01/22/2020 94974BGM6 INTEREST EARNED ON WELLS FARGO CO MTN 2.600% 7/22/20$1 PV ON 0.0000 0.000000 65,000.00 0.00 0.00 5000000.0000 SHARES DUE 1/22/2020 01/22/2020 95000U2B8 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 1/22/2020 01/23/2020 313384SD2 INTEREST EARNED ON F H L B DISC NTS 1/23/20$1 PV ON 5000000.0000 0.0000 0.000000 7,413.89 0.00 0.00 SHARES DUE 1/23/2020 5,000,000 PAR VALUE AT 100% 01/23/2020 46647PAUO INTEREST EARNED ON JPMORGAN CHASE CO 3.797% 7/23/24$1 PV ON 0.0000 0.000000 47,462.50 0.00 0.00 2500000.0000 SHARES DUE 1/23/2020 01/23/2020 89114M2Z9 INTEREST EARNED ON TORONTO DOMINION C D 2.200% 1/23/20$1 PV ON 0.0000 0.000000 22,366.67 0.00 0.00 2000000.0000 SHARES DUE 1/23/2020 INTEREST ON 1/23/20 MATURITY 01/23/2020 90331HNL3 INTEREST EARNED ON US BANK NA MTN 2.850% 1/23/23$1 PV ON 2000000.0000 0.0000 0.000000 28,500.00 0.00 0.00 SHARES DUE 1/23/2020 01/27/2020 03215PFN4 INTEREST EARNED ON AMRESCO 2.91416% 6/25/29$1 PV ON 289.0400 0.0000 0.000000 289.04 0.00 0.00 SHARES DUE 1/25/2020$0.00243/PV ON 119,021.64 PV DUE 1/25/20 01/27/2020 808513AT2 INTEREST EARNED ON CHARLES SCHWAB CORP 2.650% 1/25/23$1 PV ON 0.0000 0.000000 89,437.50 0.00 0.00 6750000.0000 SHARES DUE 1/25/2020 01/27/2020 3133EKWV4 INTEREST EARNED ON F F C B DEB 1.850% 7/26/24$1 PV ON 5000000.0000 0.0000 0.000000 46,250.00 0.00 0.00 SHARES DUE 1/26/2020 01/27/2020 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 142.5900 0.0000 0.000000 142.59 0.00 0.00 SHARES DUE 1/25/2020$0.00354/PV ON 56,619.55 PV DUE 1/25/20 01/27/2020 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 3632.8400 0.0000 0.000000 3,632.84 0.00 0.00 SHARES DUE 1/25/2020$0.00542/PV ON 670,678.27 PV DUE 1/25/20 01/27/2020 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 53.6700 SHARES 0.0000 0.000000 53.67 0.00 0.00 DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 7 of 9 U.S. Bank Transaction History January 2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 01/27/2020 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 383.2400 0.0000 0.000000 383.24 0.00 0.00 SHARES DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400% 11/01/20$1 PV ON 981.2400 0.0000 0.000000 981.24 0.00 0.00 SHARES DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 365.7400 0.0000 0.000000 365.74 0.00 0.00 SHARES DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 7.3100 SHARES 0.0000 0.000000 7.31 0.00 0.00 DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 608.5800 0.0000 0.000000 608.58 0.00 0.00 SHARES DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 31406XWT5 INTEREST EARNED ON F N M A#823358 4.347% 2/01/35$1 PV ON 390.9000 0.0000 0.000000 390.90 0.00 0.00 SHARES DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 73.6600 SHARES 0.0000 0.000000 73.66 0.00 0.00 DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 715.3400 0.0000 0.000000 715.34 0.00 0.00 SHARES DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 35.6900 SHARES 0.0000 0.000000 35.69 0.00 0.00 DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 57.9100 0.0000 0.000000 57.91 0.00 0.00 SHARES DUE 1/25/2020 DECEMBER FNMA DUE 1/25/20 01/27/2020 31397QREO INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 365.6900 0.0000 0.000000 365.69 0.00 0.00 SHARES DUE 1/25/2020$0.00206/PV ON 177,519.84 PV DUE 1/25/20 01/27/2020 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 1/26/2020 01/27/2020 45950KCMO INTEREST EARNED ON INTL BK M T N 2.250% 1/25/21 $1 PV ON 2970000.0000 0.0000 0.000000 33,412.50 0.00 0.00 SHARES DUE 1/25/2020 01/27/2020 78445JAA5 INTEREST EARNED ON S L M A 3.5925% 4/25/23$1 PV ON 114.6300 SHARES 0.0000 0.000000 114.63 0.00 0.00 DUE 1/25/2020$0.00898/PV ON 12,762.94 PV DUE 1/25/20 01/28/2020 61747WAL3 INTEREST EARNED ON MORGAN STANLEY 5.500% 7/28/21 $1 PV ON 2800000.0000 0.0000 0.000000 77,000.00 0.00 0.00 SHARES DUE 1/28/2020 01/29/2020 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-3120.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 01/29/2020 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-3120.00 UNITS 0.0000 0.000000 0.00 -3,120.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 01/29/2020 06406RAE7 INTEREST EARNED ON BANK OF NY MTN 2.950% 1/29/23$1 PV ON 2500000.0000 0.0000 0.000000 36,875.00 0.00 0.00 SHARES DUE 1/29/2020 01/29/2020 313384SK6 INTEREST EARNED ON F H L B DISC NTS 1/29/20$1 PV ON 4500000.0000 0.0000 0.000000 7,825.00 0.00 0.00 SHARES DUE 1/29/2020 4,500,000 PAR VALUE AT 100% 01/29/2020 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 753.5600 0.0000 0.000000 753.56 0.00 0.00 SHARES DUE 12/25/2019$0.00354/PV ON 212,720.33 PV DUE 12/25/19 8 of 9 U.S. Bank Transaction History January 2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 01/29/2020 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 753.5600 0.0000 0.000000 -753.56 0.00 0.00 SHARES DUE 12/25/2019 RATE REVISION 01/29/2020 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-3120.0000 UNITS -3,120.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 01/29/2020 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-3120.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 01/30/2020 912796RY7 INTEREST EARNED ON U S TREASURY BILL 1/30/20$1 PV ON 21000000.0000 0.0000 0.000000 90,892.23 0.00 0.00 SHARES DUE 1/30/2020 21,000,000 PAR VALUE AT 100% 01/30/2020 94974BGF1 INTEREST EARNED ON WELLS FARGO MTN 2.150% 1/30/20$1 PV ON 0.0000 0.000000 10,750.00 0.00 0.00 1000000.0000 SHARES DUE 1/30/2020 01/30/2020 9128281-32 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 8/31/20 0.0000 0.000000 -28,708.79 0.00 0.00 01/30/2020 912828XH8 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.625% 6/30/20 0.0000 0.000000 -6,696.43 0.00 0.00 01/30/2020 822582BG6 RECEIVED ACCRUED INTEREST ON SALE OF SHELL INTERNATIONAL 2.125% 5/11/20 0.0000 0.000000 4,663.19 0.00 0.00 01/31/2020 CASH DISBURSEMENT PAID TO BANC OF CALIFORNIA OUTGOING DOMESTIC WIRE 0.0000 0.000000 -70,000,000.00 0.00 0.00 PER DIR DTD 1/24/2020 01/31/2020 CASH DISBURSEMENT PAID TO BANC OF CALIFORNIA OUTGOING DOMESTIC WIRE 0.0000 0.000000 -10,000,000.00 0.00 0.00 PER DIR DTD 1/24/2020 01/31/2020 912828H52 INTEREST EARNED ON U S TREASURY NT 1.250% 1/31/20$1 PV ON 13500000.0000 0.0000 0.000000 84,375.00 0.00 0.00 SHARES DUE 1/31/2020 01/31/2020 912828UL2 INTEREST EARNED ON U S TREASURY NT 1.375% 1/31/20$1 PV ON 5000000.0000 0.0000 0.000000 34,375.00 0.00 0.00 SHARES DUE 1/31/2020 01/31/2020 912828N89 INTEREST EARNED ON U S TREASURY NT 1.375% 1/31/21 $1 PV ON 6000000.0000 0.0000 0.000000 41,250.00 0.00 0.00 SHARES DUE 1/31/2020 01/31/2020 912828V72 INTEREST EARNED ON U S TREASURY NT 1.875% 1/31/22$1 PV ON 3000000.0000 0.0000 0.000000 28,125.00 0.00 0.00 SHARES DUE 1/31/2020 01/31/2020 912828357 INTEREST EARNED ON U S TREASURY NT 2.000% 1/31/20$1 PV ON 30000000.0000 0.0000 0.000000 300,000.00 0.00 0.00 SHARES DUE 1/31/2020 01/31/2020 912828V80 INTEREST EARNED ON U S TREASURY NT 2.250% 1/31/24$1 PV ON 7500000.0000 0.0000 0.000000 84,375.00 0.00 0.00 SHARES DUE 1/31/2020 01/31/2020 912828XY1 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.500% 6/30/20 0.0000 0.000000 -2,129.12 0.00 0.00 01/31/2020 9128284Y3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.625% 8/31/20 0.0000 0.000000 -77,235.58 0.00 0.00 01/31/2020 9128281-99 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.375% 10/31/20 0.0000 0.000000 10,425.82 0.00 0.00 01/31/2020 9128281-57 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.750% 9/30/22 0.0000 0.000000 23,524.59 0.00 0.00 TOTAL OTHER TRANSACTIONS -4,992.0000 -78,171,807.75 -4,992.00 0.00 9 of 9 oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 BOARD OF DIRECTORS (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-919 Agenda Date: 2/26/2020 Agenda Item No: 4. FROM: James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: COMMITTEE MEETING MINUTES GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the following: A. Minutes of the Operations Committee Meeting held December 4, 2019 B. Minutes of the Legislative and Public Affairs Committee held December 9, 2019 C. Minutes of the Administration Committee Meeting held December 11, 2019 D. Minutes of the Steering Committee Meeting held December 18, 2019 BACKGROUND In accordance with the Board of Directors Rules of Procedure, an accurate record of each meeting will be provided to the Directors for subsequent approval at the following meeting. RELEVANT STANDARDS • Resolution No. OCSD 19-19 ADDITIONAL INFORMATION The minutes of the Committee meeting are approved at their respective Committees and brought forth to the Board of Directors for receive and file only. ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Minutes of the Monthly Committee Meetings Orange County Sanitation District Page 1 of 1 Printed on 2/20/2020 powered by LegistarTM Orange County Sanitation District Njv SAN/rgT° Wednesday, December 4, 2019 Minutes for the °°° �o,� 5:00 PM OPERATIONS COMMITTEE _: Board Room 9 Administration Building 10844 Ellis Avenue 9 = Fountain Valley, CA 92708 �rF� � (714) 593-7433 TNG 7HE CALL TO ORDER A regular meeting of the Operations Committee was called to order by Committee Chair Bob Collacott on Wednesday, December 4, 2019 at 5:01 p.m. in the Administration Building. Committee Vice-Chair Mariellen Yarc led the Flag Salute. DECLARATION OF QUORUM: A quorum was declared present, as follows: PRESENT: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver ABSENT: Allan Bernstein, Doug Chaffee, Steve Jones and John Withers STAFF PRESENT: Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering: Lan Wiborg, Director of Environmental Services; Tina Knapp, Assistant Clerk of the Board; Jennifer Cabral; Tanya Chong; Ron Coss; Raul Cuellar; Don Cutler; Mike Dorman; Justin Fenton; Dean Fisher; Lisa Frigo; Al Garcia; Ted Gerber; Jim Kavalec; Mark Kawamoto; Josh Martinez; Tom Meregillano; Jeff Mohr: Wally Ritchie; Roya Sohanaki; Don Stokes; Eros Yong; and Ruth Zintun. Others Present: Brad Hogin, General Counsel and Bob Ooten, Alternate Director (CMSD). PUBLIC COMMENTS: None. REPORTS: Assistant General Manager Rob Thompson reported that the facilities are operating well through the recent rain events. Mr. Thompson also responded to a question from the Committee regarding a recent spill in Laguna Beach. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2019-770 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Page 1 of 8 OPERATIONS COMMITTEE Minutes December 4, 2019 Approve Minutes of the Regular Meeting of the Operations Committee held November 6, 2019. AYES: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva. Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate), Steve Jones and John Withers ABSTENTIONS: None 2. CENGEN OIL FILTERS PLATFORM AT PLANT NO. 1 AND PLANT 2019-663 NO. 2, PROJECT NO. SC17-03 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: A. Receive and file Bid Tabulation and Recommendation for CenGen Oil Filters Platform at Plant No. 1 and Plant No. 2, Project No. SC17-03; B. Award a Construction Contract to Houalla Enterprises, Ltd., dba Metro Builders & Engineers Group, Ltd., for CenGen Oil Filters Platform at Plant No. 1 and Plant No. 2, Project No. SC17-03, for an amount not to exceed $134,480; and C. Approve a contingency of $13,448 (10%). AYES: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate), Steve Jones and John Withers ABSTENTIONS: None 3. PROTEIN MATRIX DEMONSTRATION STUDY AT PLANT NO. 1, 2019-724 PROJECT NO. RE18-02 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 2 of 8 OPERATIONS COMMITTEE Minutes December 4, 2019 A. Ratify the prior Sole Source Purchases to Protein Matrix LLC for the procurement of Protein Matrix Compound PM-4 for Protein Matrix Demonstration Study at Plant No. 1 , Project No, RE 18-02, for a total amount of S148,500; and B. Approve a Sole Source Purchase Order to Protein Matrix LLC for the procurement of Protein Matrix Compound PM-4 for Protein Matrix Demonstration Study at Plant No. 1 , Project No. RE18-02, for a total amount not to exceed S 150.000. AYES: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate), Steve Jones and John Withers ABSTENTIONS: None 4. AWARD OF CORROSION MANAGEMENT SUPPORT SERVICES, 2019-739 SPECIFICATION NO. CS-2019-1071 BD Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Consultant Services Agreement with Corrpro Companies, Inc. for Corrosion Management Support Services, Specification No. CS-2019-1071 BD, for the period of January 1, 2020 through December 31 , 2020, for a total annual amount not to exceed $600,000, with four (4) one-year renewal options; and B. Approve an annual contingency of $60,000 (10%). AYES: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate). Steve Jones and John Withers ABSTENTIONS: None 5. 480 VOLT CABLE REPLACEMENT AT PLANT NO. 2 HEADWORKS, 2019-706 PROJECT NO. MP-509 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Page 3 of 8 OPERATIONS COMMITTEE Minutes December 4, 2019 A. Receive and file Bid Tabulation and Recommendation for 480 Volt Cable Replacement at Plant No. 2 Headworks. Project No. MP-509: B. Award a Construction Contract to Mass. Electric Construction Co. for 480 Volt Cable Replacement at Plant No. 2, Project No. MP-509, for a total amount not to exceed $434,327; and C. Approve a contingency of S86.865 (20%). AYES: Robert Collacott, Mariellen Yarc, Brad Avery. Lucille Kring, Sandra Massa-Lavitt. Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate), Steve Jones and John Withers ABSTENTIONS: None 6. ACTIVATED SLUDGE PLANT CLARIFIER INLET GATE 2019-621 REPLACEMENT AT PLANT NO. 2, PROJECT NO. MP-638 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Receive and file Bid Tabulation and Recommendation for Activated Sludge Plant Clarifier Inlet Gate Replacement at Plant No. 2, Project No. MP-638; B. Award a Construction Contract to Innovative Construction Solutions for Activated Sludge Plant Clarifier Inlet Gate Replacement at Plant No. 2, Project No. MP- 638, for a total amount not to exceed $658,300; and C. Approve a contingency of $65,830 (10%). AYES: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate), Steve Jones and John Withers ABSTENTIONS: None 7. PLANT NO. 1 EMERGENCY GENERATOR BREAKER PURCHASE, 2019-671 PROJECT NO. MP-641 Originator: Rob Thompson MOVED, SECONDED, AND DULY CARRIED TO: Page 4 of 8 OPERATIONS COMMITTEE Minutes December 4, 2019 A. Approve a purchase order contract to Romac Supply Co., Inc. for the purchase of ten critical circuit breakers for Plant No.1 Project No. MP-641 per Specification No. E-2019-1091 BD-R (Rebid), for a total amount not to exceed $102,326, plus applicable sales tax; and B. Approve a contingency of $5,117 (5%). AYES: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring. Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate), Steve Jones and John Withers ABSTENTIONS: None NON-CONSENT: 8. AGREEMENT FOR THE PURCHASE OF LIQUID CATIONIC 2019-544 POLYMER, SPECIFICATION NO. C-2019-1087BD Originator: Rob Thompson Mr. Thompson provided a verbal overview of this item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Chemical Supplier Agreement with Polydyne. Inc. for the purchase of Cationic Polymer, Specification No. C-2019-108713D, for the period beginning February 1, 2020 through January 31 . 2021 for a unit price of $2.548 per active pound plus freight and applicable sales tax, for a total estimated annual amount of $3,866,280 with four (4) one-year renewal options: and B. Approve an annual unit price contingency of 15%. AYES: Robert Collacott, Mariellen Yarc. Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate), Steve Jones and John Withers ABSTENTIONS: None 9. SEAL BEACH PUMP STATION REPLACEMENT, PROJECT NO. 3-67 2019-626 Originator: Kathy Millea Director of Engineering Kathy Millea introduced Justin Fenton, Senior Engineer, who provided a PowerPoint presentation on this item. The presentation included an overview of the project including location and background, selection process, and Page 5 of 8 OPERATIONS COMMITTEE Minutes December 4. 2019 negotiations of project elements and design assumptions. Mr. Fenton responded to questions from the Committee regarding the water table and depth of the project. Director Avery commended staff for exhibiting neighborliness to the community and collaborating with city staff on recent projects. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Design Services Agreement with Lee & Ro, Inc. to provide engineering services for Seal Beach Pump Station Replacement, Project No. 3-67, for an amount not to exceed $5,947.850; and B. Approve a contingency of $594,785 (10%). AYES: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate), Steve Jones and John Withers ABSTENTIONS: None 10. WESTMINSTER BOULEVARD FORCE MAIN REPLACEMENT, 2019-624 PROJECT NO. 3-62 Originator: Kathy Millea Ms. Millea provided a verbal introduction of this item and indicated that the two lowest bidders on Item No. 11 were companies that have never done business with the Sanitation District. Ms. Millea further indicated that Mr. Fenton would provide a PowerPoint presentation to cover both Item Nos. 10 and 11 . The presentation covered the project loation and bid results. Director Massa-Lavitt expressed concern regarding this project as Westminster Blvd. is an alternate route to the 405 Freeway which is currently under construction. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Construction Services Agreement with Stantec Consulting. Inc. to provide construction support services for Westminster Boulevard Force Main Replacement, Project No. 3-62, for a total amount not to exceed $1,183,000; and B. Approve a contingency of $118,300 (10%). AYES: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None Page 6 of 8 OPERATIONS COMMITTEE Minutes December 4, 2019 ABSENT: Allan Bernstein, Doug Chaffee. Phil Hawkins (Alternate), Steve Jones and John Withers ABSTENTIONS: None 11. WESTMINSTER BOULEVARD FORCE MAIN REPLACEMENT, 2019-625 PROJECT NO. 3-62 Originator: Kathy Millea MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Receive and file Bid Tabulation and Recommendation for Westminster Boulevard Force Main Replacement, Project No. 3-62: B. Award a Construction Contract to Teichert Energy & Utilities Group. Inc. for Westminster Boulevard Force Main Replacement, Project No. 3-62, for a total amount not to exceed $27.743.000; and C. Approve a contingency of $2,774,300. AYES: Robert Collacott, Mariellen Yarc, Brad Avery, Lucille Kring, Sandra Massa-Lavitt, Tim Shaw, Jesus Silva, Fred Smith and David Shawver NOES: None ABSENT: Allan Bernstein, Doug Chaffee, Phil Hawkins (Alternate). Steve Jones and John Withers ABSTENTIONS: None INFORMATION ITEMS: 12. ORANGE COUNTY SANITATION DISTRICT'S PROCUREMENT PROCESS Originator: Lorenzo Tyner Assistant General Manager Lorenzo Tyner introduced Ruth Zintzun, Purchasing & Contracts Manager, who provided a PowerPoint presentation that included the Contracts, Purchasing & Materials Management Division's mission statement, an overview of the Division, rules and regulations followed, approval thresholds, procurement methods, public works construction, request for proposal/qualifications. goods and services bids, emergency procurements, and sole source procurement. Mr. Tyner responded to a question regarding auditing of and controls for processes. NO ACTION TAKEN AS ITEM WAS AN: Information Item. Page 7 of 8 OPERATIONS COMMITTEE Minutes December 4, 2019 13. ORANGE COUNTY SANITATION DISTRICT - ENVIRONMENTAL 2019-646 SERVICES Originator: Lan Wiborg Director of Environmental Services Lan Wiborg introduced Lisa Frigo, Environmental Supervisor, who provided a PowerPoint presentation that introduced the compliance group; compliance and reporting governance; an overview of the compliance area; NPDES permit - discharge monitoring reporting, water quality monitoring, and solids monitoring, air quality compliance monitoring, sanitary sewer overflow reporting and stormwater construction; future concerns and collaborations; and noncompliance risk and liabilities. Ms. Frigo handed out an article from the Sanitation District's newsletter that provided details regarding the environmental auditing program. NO ACTION TAKEN AS ITEM WAS AN.- Information Item. DEPARTMENT HEAD REPORTS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Collacott declared the meeting adjourned at 5:42 p.m. to the meeting to be held on Wednesday, February 5, 2020 at 5.00 p.m. Submitted by: I�X7�__ Tina Knapp, MMC Assistant C!er(; cf the Board - Page 8 of 8 Orange County Sanitation District JN�v'IS nNiTgr/o Monday, December 9, 2019 Minutes for the °° yo 12:00 PM LEGISLATIVE AND PUBLIC = ��p Board Room AFFAIRS COMMITTEE o Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A meeting of the Legislative and Public Affairs Committee was called to order by Committee Chair Peter Kim on Monday, December 9, 2019 at 12:01 p.m. in the Administration Building of the Orange County Sanitation District. Chair Peter Kim led the pledge of allegiance. DECLARATION OF QUORUM: A quorum was declared present, as follows: PRESENT: Peter Kim, Allan Bernstein, Lucille Kring, Erik Peterson, Christina Shea, David Shawver and John Withers ABSENT: None STAFF PRESENT: Jim Herberg, General Manager; Robert Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Kathy Millea, Director of Engineering; Kelly Lore, Clerk of the Board; Jennifer Cabral; Tanya Chong; Daisy Covarrubias; Lisa Frigo; Al Garcia; Rebecca Long; Joshua Martinez; Kelly Newell; Wally Ritchie; and Ruth Zintzun. OTHERS PRESENT: Brad Hogin, General Counsel; Eric Sapirstein, ENS Resources (via teleconference); Eric O'Donnell, Townsend Public Affairs (TPA); and Cori Williams, Townsend Public Affairs (TPA). PUBLIC COMMENTS: None. REPORTS: Chair Kim and General Manager Jim Herberg did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2019-720 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Page 1 of 4 LEGISLATIVE AND PUBLIC Minutes December 9, 2019 AFFAIRS COMMITTEE Approve Minutes of the Regular Meeting of the Legislative and Public Affairs Committee held November 4, 2019. AYES: Peter Kim, Allan Bernstein, Lucille Kring, Erik Peterson and Christina Shea NOES: None ABSENT: David Shawver and John Withers ABSTENTIONS: None Board Chairman Dave Shawver arrived at the meeting at 12:03 p.m. NON-CONSENT: 2. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF NOVEMBER 2019 2019-766 Originator: Jim Herberg Administration Manager Jennifer Cabral stated that to save time she would not be providing a report but noted that the Orange County Business Council will be in attendance at the December 18th Board meeting to present OCSD with an award. She also shared the upcoming holiday activities which will take place during the month. At the request of Chair Kim, and in an effort to reduce paper, the Committee agreed to eliminate the hard copy version of the media clips previously provided in the printed agenda packet. WITHOUT OBJECTION: Recommend to the Board of Directors to: Receive and file the Public Affairs Update for the month of November 2019. Board Vice-Chair John Withers arrived at the meeting at 12:20 p.m. 3. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF NOVEMBER 2019-779 2019 Originator: Jim Herberg Eric Sapirstein from ENS Resources provided a PowerPoint presentation regarding key legislative activities: PFAS: National Defense Authorization Act, FY 2020 Appropriations Status, and Extended NPDES permit terms. Eric O'Donnell from TPA provided a PowerPoint presentation regarding the legislation currently scheduled and a look ahead for the fiscal year 2020-2021 State budget; and Impact Fee legislation update. WITHOUT OBJECTION: Recommend to the Board of Directors to: Page 2 of 4 LEGISLATIVE AND PUBLIC Minutes December 9, 2019 AFFAIRS COMMITTEE Receive and file the Legislative Affairs Update for the month of November 2019. 4. 2020 LEGISLATIVE/REGULATORY PLAN 2019-782 Originator: Jim Herberg MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve the Orange County Sanitation District 2020 Legislative and Regulatory Plan. AYES: Peter Kim, Allan Bernstein, Lucille Kring, Erik Peterson, Christina Shea, David Shawver and John Withers NOES: None ABSENT: None ABSTENTIONS: None 5. LEGISLATIVE CONCEPTS 2019-785 Originator: Jim Herberg Cori Williams from TPA provided a PowerPoint presentation regarding the three legislative concepts for consideration and the proposed next steps needed to move forward to draft bill language and secure a bill author. At the request of General Counsel an amended motion was made. MOVED, SECONDED, AND DULY CARRIED TO: Approve Legislative Concept 2: Amend Public Contracting Code for sanitation districts to allow sanitation districts, whose service area includes a population of more than 1 million, the opportunity to utilize Job Order Contracting as a bid procurement procedure. This change should be an addition to Public Contract Code, Division 2, Part 3, Chapter 1, Article 50; and Approve only on the condition that General Counsel opines that authority under the Job Order Contracting process does not already exist currently. AYES: Peter Kim, Allan Bernstein, Lucille Kring, Erik Peterson, Christina Shea, David Shawver and John Withers NOES: None Page 3 of 4 LEGISLATIVE AND PUBLIC Minutes December 9, 2019 AFFAIRS COMMITTEE ABSENT: None ABSTENTIONS: None INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Kim adjourned the meeting to the next Legislative and Public Affairs Committee meeting on Monday, February 10, 2020 at 12:00 p.m. Sub itted by: e y A. LAre, MMC.; Cl rk oft Board Page 4 of 4 Orange County Sanitation District JNty SANIrgT/O Wednesday. December 11 , 2019 Minutes for the °° yo 5:00 PM ADMINISTRATION COMMITTEE _ A Board Room Administration Building 10844 Ellis Avenue 9 ? Fountain Valley, CA 92708 � 0—THE ENJ\Q P"V7 (714) 593-7433 Cl/N CALL TO ORDER A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Vice Chairman Richard Murphy on December 11 , 2019 at 5:03 p.m. in the Administration Building of the Orange County Sanitation District. Director Erik Peterson led the Flag Salute. DECLARATION OF QUORUM: A quorum was declared present as follows: PRESENT: Richard Murphy, Cecilia Iglesias, Mark Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson. Christina Shea, David Shawver, John Withers and Patrick Harper (Alternate) ABSENT: Chad Wanke and James Ferryman STAFF PRESENT: Jim Herberg, General Manager: Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager: Kathy Millea, Director of Engineering: Lan Wiborg. Director of Environmental Services: Kelly Lore. Clerk of the Board: Randa Abushaban: Jennifer Cabral: Ron Coss: Michelle Farmer; Rhea de Guzman; Al Garcia: Mark Kawamoto; Jackie Lagade: Laura Maravilla: Joshua Martinez: Wally Ritchie; Lisa Rothbart; Roya Sohanaki; and Ruth Zintzun. OTHERS PRESENT: Brad Hogin, General Counsel PUBLIC COMMENTS: None. REPORTS: None. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2019-787 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Page 1 of 4 ADMINISTRATION Minutes December 11, 2019 COMMITTEE Approve Minutes of the Regular Meeting of the Administration Committee held November 13, 2019. AYES: Richard Murphy, Mark Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Christina Shea, David Shawver, John Withers, Marshall Goodman (Alternate) and Patrick Harper (Alternate) NOES: None ABSENT: Chad Wanke, James Ferryman and Cecilia Iglesias ABSTENTIONS: None 2. PAYMENT OF ANNUAL NATIONAL POLLUTANT DISCHARGE AND 2019-778 ELIMINATION SYSTEM (NPDES) PERMIT FEES Originator: Lan Wiborg MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve payment of $653,081 for annual NPDES (ocean discharge) permit fees. AYES: Richard Murphy, Mark Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Christina Shea. David Shawver. John Withers. Marshall Goodman (Alternate) and Patrick Harper (Alternate) NOES: None ABSENT: Chad Wanke. James Ferryman and Cecilia Iglesias ABSTENTIONS: None NON-CONSENT: 3. INVEST AND/OR REINVEST ORANGE COUNTY SANITATION 2019-674 DISTRICT'S FUNDS AND ADOPT INVESTMENT POLICY STATEMENT Originator: Lorenzo Tyner Assistant General Manager Lorenzo Tyner introduced the item and provided a brief description of the changes. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 19-XX, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District. Authorizing the Orange County Sanitation District's Treasurer to Invest and/or Reinvest Orange County Sanitation District's Funds, Adopting the Orange County Sanitation District's Investment Policy Statement and Performance Benchmarks. and Repealing Resolution No. OCSD 18-23. Page 2 of 4 ADMINISTRATION Minutes December 11, 2019 COMMITTEE AYES: Richard Murphy, Mark Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Christina Shea, David Shawver, John Withers, Marshall Goodman (Alternate) and Patrick Harper (Alternate) NOES: None ABSENT: Chad Wanke, James Ferryman and Cecilia Iglesias ABSTENTIONS: None Director Cecilia Iglesias arrived at the meeting at 5:12 p.m. INFORMATION ITEMS: 4. ORANGE COUNTY SANITATION DISTRICT'S PROCUREMENT 2019-797 PROCESS Originator: Lorenzo Tyner Assistant General Manager Tyner introduced Ruth Zintzun, Purchasing & Contracts Manager, who provided a PowerPoint presentation that included the Contracts, Purchasing & Materials Management Division's mission statement; an overview of the Division; rules and regulations followed; approval thresholds: procurement methods; public works construction; requests for proposal/qualifications; goods and services bids; emergency procurements: and sole source procurement. RECEIVED AND FILED THE: Information Item. DEPARTMENT HEAD REPORTS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Board Chair Shawver stated that efforts were underway to reduce paper in the agenda packets. He asked that if anyone was interested in an online version to let the Clerk of the Board know. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Vice-Chair Murphy declared the meeting adjourned at 5:45 p.m. to the Regular meeting to be held on Wednesday. February 19. 2020 at 5:00 p.m. Page 3 of 4 ADMINISTRATION Minutes December 11, 2019 COMMITTEE Sub tted by: 6 Kell A. e, MMC Cler of h Board Page 4 of 4 Orange County Sanitation District vNIN SANITgr Wednesday, December 18, 2019 Minutes for the °° "0 5:00 PM STEERING COMMITTEE _ A Conference Room A Administration Building 10844 Ellis Avenue 9 ? Fountain Valley, CA 92708 (714) 593-7433 CALL TO ORDER A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Chairman David Shawver on Wednesday, December 18, 2019 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. DECLARATION OF QUORUM: A quorum was declared present, as follows.- PRESENT: David Shawver, John Withers, Robert Collacott, Chad Wanke, Glenn Parker and Tim Shaw ABSENT: Peter Kim STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Lan Wiborg, Director of Environmental Services; Kelly Lore, Clerk of the Board; Jennifer Cabral; Mike Dorman; Brian Engeln; Dean Fisher; Tom Grant; Tina Knapp; Laura Maravilla; Josh Martinez; Cory Mayne; Jeff Mohr; John Preston; Wally Ritchie; and Ruth Zintzun OTHERS PRESENT: Brad Hogin (General Counsel) PUBLIC COMMENTS: None. REPORTS: Chair Shawver stated that the Orange County Business Council will be in attendance at the Board meeting to present OCSD with the 2019 Sustainable and Green Development Award for the Food Waste Receiving Station Project. CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2019-710 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Page 1 of 4 STEERING COMMITTEE Minutes December 18, 2019 Approve Minutes of the Regular Meeting of the Steering Committee held November 20, 2019. AYES: David Shawver, John Withers, Robert Collacott, Chad Wanke, Glenn Parker and Tim Shaw NOES: None ABSENT: Peter Kim ABSTENTIONS: None NON-CONSENT: 2. MEMORANDUM OF UNDERSTANDING WITH ORANGE COUNTY 2019-809 EMPLOYEES RETIREMENT SYSTEM REGARDING PAYMENT OF UNFUNDED ACTUARIAL ACCRUED LIABILITIES Originator: Lorenzo Tyner MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 19-20 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the Execution of the Memorandum of Understanding with the Orange County Employees Retirement System establishing the terms to recognize and apply the Orange County Sanitation District's satisfaction of its Unfunded Accrued Actuarial Liability and deferred Unfunded Accrued Actuarial Liability. AYES: David Shawver, John Withers, Robert Collacott, Chad Wanke, Glenn Parker and Tim Shaw NOES: None ABSENT: Peter Kim ABSTENTIONS: None INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.8 & 54956.9(d)(4): The Committee convened in closed session at 5:05 p.m. to discuss four items. Confidential Page 2 of 4 STEERING COMMITTEE Minutes December 18, 2019 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. CS-1 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED 2019-799 LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(4) CONVENED IN CLOSED SESSION.- Number of Potential Cases: 1 Initiation of litigation regarding development fees and conditions at Project OCSD Headquarters Building: City of Fountain Valley CS-2 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED 2019-834 LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(4) CONVENED IN CLOSED SESSION.- Number of Potential Cases: 1 Claim received from Shimmick Construction pertaining to Project No. J-117B - Outfall Low Pump Station Ocean Outfall System Rehabilitation CS-3 CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED 2019-841 LITIGATION - GOVERNMENT CODE SECTION 54956.9(d)(4) CONVENED IN CLOSED SESSION: Number of Potential Cases: 1 Claim received from Terra Insurance Company pertaining to insurance requirements for Orange County Sanitation District Project No. PS17-03 - Active Fault Location Study at Plant No. 2 CS-4 CONFERENCE WITH REAL PROPERTY NEGOTIATORS - 2019-839 GOVERNMENT CODE SECTION 54956.8 CONVENED IN CLOSED SESSION: Property: 18475 Bandilier Cir. Fountain Valley, CA -APN No.156-163-15; Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Lorenzo Tyner; Assistant General Manager, Rob Thompson; and Director of Engineering, Kathy Millea. Negotiating parties: Sukut Real Properties Il, LLC Under negotiation: Price and terms of payment Page 3 of 4 STEERING COMMITTEE Minutes December 18, 2019 RECONVENE IN REGULAR SESSION. The Committee reconvened in regular session at 5:52p.m. 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. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Shawver declared the meeting adjourned at 5:53 p.m. to the next Steering Committee meeting to be held on Wednesday, January 22, 2020 at 5:00 p.m. 4el itted by: ti A. Lo VIM .; Clef k of th '3oe d Page 4 of 4 oJ�V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 OPERATIONS COMMITTEE (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-911 Agenda Date: 2/26/2020 Agenda Item No: 5. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Capital Improvement Program Contract Performance Report for the period ending December 31, 2019. BACKGROUND The Capital Improvement Program involves awarding and managing many construction and consulting contracts. In 2008, the Orange County Sanitation District (Sanitation District) Board of Directors began awarding contingencies along with construction and consulting contracts and amendments for consulting contracts up to the amount of the approved contingency. This practice reduces administrative costs, expedites resolution of project issues that arise, helps avoid Contractor delay claims, and facilitates efficient management of many contracts. The Capital Improvement Program Contract Performance Report summarizes construction and consulting contract performance and activities for the quarter ending December 31, 2019. This report is updated quarterly. RELEVANT STANDARDS • Ensure the public's money is wisely spent ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Capital Improvement Program Contract Performance Report for the period ending December 31, 2019 Orange County Sanitation District Page 1 of 1 Printed on 2/20/2020 powered by LegistarTM ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending December 31, 2019 9ojEcr/N� 7NE Ep�\Poa�,ya DATE: January 27, 2020 TO: Orange County Sanitation District Board of Directors FROM: James D. Herberg, General Manager Through: Kathy Millea, Director of Engineering This report summarizes the status, activities, and performance of public works construction contracts and consultant agreements. This report also identifies the names and status of projects being performed under master budgets for planning studies, research, small construction projects, O&M capital projects, and information technology projects. Table of Contents Part 1 — Construction Contracts page 2 Active Construction Contracts Construction Contracts Closed in Last Quarter Cumulative Change Order Rates — Closed Construction Contracts Part 2 — Engineering Services Agreements page 6 Active Engineering Services Agreements Active Task Orders by Master Agreement Part 3 - Master Budget Projects page 10 Planning Studies Status Report Research Program Status Report Small Construction Projects Program Status Report Information Technology Capital Program Status Report Operations and Maintenance Capital Program Status Report Part 4 - Supplemental Engineering Services Contract page 17 Supplemental Engineering Services Contract Status Supplemental Engineering Services Contract Labor Summary 1 "`" SA"" /°a ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending December 31, 2019 TM1,s THE E PART 1 - CONSTRUCTION CONTRACTS Table 1 lists the construction contracts active as of December 31, 2019. The graph below shows the number and total value of projects broken down plant and collections. Active Construction Contracts Plant Projects Collections Projects 20 Contracts 6 Contracts $336 million $90 million One construction contract was closed in this quarter, as listed in Table 2. 2 Capital Improvement Program Contract Performance Report for Quarter Ending 12/31/2019 Table 1-Active Construction Contracts Current Award Board Award Contract Original Current Contingency Contingency Project Contract Contractor Date Amount Change Orders Amount Contingency Contingency Used Remaining 2-41-8 SARI Rock Stabilizers Removal 2-41-8 SARI Rock Stabilizers Removal Griffith Company 09/26/2018 $2,809,082 $0 $2,809,082 10.0% 10.0% 0.0% 10.0% 2-72 Newhope-Placentia Trunk Replacement 2-72B Newhope-Placentia Trunk Replacement,Segment B OHL USA,INC. 06/15/2018 $58,242,000 $381,246 $58,623,246 6.5% 6.5% 0.7% 5.8% 3-62 Westminster Blvd Force Main Replacement 3-62 Westminster Blvd Force Main Replacement Teichert Energy&Utilities Group, 12/18/2019 $27,743,000 $0 $27,743,000 10.0% 10.0% 0.0% 10.0% Inc. 1-117 Ocean Outfall System Rehabilitation J-117B Outfall Low Flow Pump Station Shimmick Construction Co.,Inc. 12/19/2018 $90,200,000 $18,542 $90,218,542 8.0% 8.0% 0.0% 8.0% 1-126 Safety Improvements Program J-126AH Hot Surfaces Insulation P3/P2/Bay Bridge PS/Slater PS Amtek Construction 01/30/2018 $452,757 $18,677 $471,434 10.0% 10.0% 4.1% 5.9% 1-126BFG Lights,Ladder and Walkway Hazards Amtek Construction 09/26/20171 $557,759 $651 $558,410 10.0% 10.0% 1 0.1% 9.9% 1-126C NFPA 820 HVAC and Electrical Improvements MMC,Inc. 03/05/2019 $469,000 $0 $469,000 10.0% 10.0% 0.0% 10.0% J-126JK Stairs,Hatches,Walkway Hazards,Ladders,Guardrails, Olsson Construction,Inc. 10/24/2018 $3,637,601 $917 $3,638,518 10.0% 10.0% 0.0% 10.0% Roof Fall Protection 1-126PQ Ladders,Hatches,Roof Fall Protection Tharsos,Inc. 11/28/2018 $786,000 $0 $786,000 10.0% 10.0% 0.0% 10.0% J-126L Various ICIA Construction 06/06/2018 $212,700 $19,300 $232,000 10.0% 10.0% 9.1% 0.9% J-126T Insulation of E/G Exhaust Pipe Supports at Plant Nos.1 Jamison Engineering 04/17/2019 $30,500 $0 $30,500 0.0% 0.0% 0.0% 0.0% and 2 M-FE Small Construction Projects Program FE14-05 Plant No.1 Fleet Services UST Leak Remediation Engineering/Remediation 01/23/2019 $648,675 $0 $648,675 20.091 20.0% 0.0% 20.0% Resources Group,Inc. FE15-07 Secondary Treatment and Plant Water VFD Helix Electric 03/28/2018 $1,797,000 $82,440 $1,879,440 10.0% 10.0% 4.6% 5.4% Replacement at Plant 1 FE16-06 Fuel Cell Facilities Demolition MMC,Inc. 07/24/2019 $474,000 $0 $474,000 10.0% 10.0% 0.0% 10.0% W FE17-01 Carbon Canyon Pipeline Sag Repairs Mike Prlich and Sons,Inc. 10/02/2019 $510,000 $0 $510,000 10.0% 10.0% 0.0% 10.0% FE17-05 Plant 1 ICS Network Extension RP Controls 06/26/2019 $321,889 $0 $321,889 10.0% 10.0% 0.0% 10.0% FE17-06 Tustin Ave Manhole and Pipe Repair Nuline Technologies,LLC 10/24/2019 $350,000 $0 $350,000 10.0% 10.0% 0.0% 10.0% FE18-18 Portable Generator Connector at Lido Pump Station M.Brey Electric,Inc. 09/17/2019 $42,285 $0 $42,285 20.0% 20.0% 0.0% 20.0% M-FR-880 Operationally Funded(Plant 2 Maintenance) MP-248 P2 Secondary Clarifier Repairs(AS Plant) W.M.Lyles Company 06/26/2019 $3,048,000 $0 $3,048,000 10.0% 10.0% 0.0% 10.0% P3-101 Sludge Dewatering and Odor Control at Plant 1 P1-101 Sludge Dewatering and Odor Control at Plant 1 WM Lyles Company 11/28/2012 $126,908,300 $12,778,390 $139,686,690 3.0% 11.5% 10.1% 1.4% P3-125 Title 24 Access Compliance and Building Rehabilitation Project PI-115B Rehabilitation of Fleet Services Building,Building 8 and CDC Engineering&Technology 09/11/2017 $2,235,563 $61,194 $2,296,757 10.0% 10.0% 2.7% 7.3% Pavi ng Area P3-129 Return Activated Sludge Piping Replacement at Activated Sludge Plant No.1 P1-129 Return Activated Sludge Piping Replacement at Abhe&Svoboda,Inc. 07/24/2019 $6,863,092 $0 $6,863,092 10.0% 10.0% 0.0% 10.0% Activated Sludge Plant No.1 P2-110 Consolidated Demolition and Utility Improvements at Plant 2 P2-110 Consolidated Demolition and Utility Improvements at Flatiron West Inc 02/09/2017 $16,730,000 $901,017 $17,631,017 8.0% 8.0% 5.4% 2.6% Plant 2 P2-123 Return Activated Sludge Piping Replacement at Plant 2 P2-123 Return Activated Sludge Piping Replacement at Plant 2 Shimmick Construction Co.,Inc. 09/25/2019 $6,042,110 $0 $6,042,110 10.0% 10.0% 0.0% 10.0% P2-92 Sludge Dewatering and Odor Control at Plant 2 P2-92 Sludge Dewatering and Odor Control at Plant 2 Shimmick Construction Co.,Inc. 01/12/2015 $49,850,000 $2,030,417 $51,880,417 5.0% 6.0% 4.1% 1 1.9% P2-98 Primary Treatment Rehabilitation at Plant 2 P2-98B B/C-Side Primary Clarifiers Interim Repair at Plant 2 Myers&Sons Construction,LLC 01/23/2019 $8,665,000 $30,920 $8,695,920 10.09. 30.0% Total $409,626,313 $16,323,711 $425,950,024 U^used cp^t004 Op^Cmge^cV t ed °rt cuCte^ Us o/ agce Rep \^a� t,^Se(M 10. program CO�12I31I201 M t Quarter F\^apmo�t^tom co^t nee^`y gyp^ �ap�ta�% mprO�{or quarter�Or tra is C\o d d A a;d cha^ge°`de�5 $g66 8p9 10 0 Co am° ts1g9911 S ab\e 2 Date N"ard Date $asl,gp0 $g66'$o9 G\osed p9I26I201g $14 991 cpntra,tp� 10�o1I2019 $gg1,g00 tpta\ tspfcgam E\ectrica\D\Scp^^ecLsG"kA e\\x pooled(GOsa{e V\m'PrDEXmS%)s V- \ghts I- \.126\ Detect\o^ "`" SA"" /°a ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending December 31, 2019 TM1,s THE E When the Sanitation District Board awards a construction contract, a contingency is also approved which allows the General Manager to approve contract change orders up to the amount of the contingency. One of the purposes of this report is to document how that contingency is managed and how much of the contingency is utilized. A project's change order rate can only be documented when the work is complete. As such, the change order performance charts in this report are based only on projects closed since the Board began approving contingencies in 2008. The following chart shows how cumulative change order rates have changed for plant, collections, and all contracts since the contingency system was implemented. Cumulative Change Order Rates - Closed Construction Contracts 14% All 12% ` collections — Plant 10% 1 8% J 6% — I i 4% ———————— i------- 2% 0% O O O O O O O O O O O N N N N N N N N N N N N N 5 ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending December 31, 2019 9ojEcr/N� 7NE Ep�\Poa�,ya PART 2 — ENGINEERING SERVICES AGREEMENTS The Sanitation District engages engineering consultants through Professional Service Agreements (PSAs), Professional Design Services Agreements (PDSAs), Professional Construction Services Agreements (PCSAs), and Master Professional Services Agreements (Master Agreements). PDSAs are used to obtain design engineering services, and PCSAs are a subsequent agreement with the design consultant to provide support services during construction. PSAs are used for planning studies and other consultant assignments. Master Agreements are issued to a pool of pre-qualified consultants for smaller projects. On those smaller projects, the Sanitation District solicits task order proposals from three or four of the firms and awards a task order to the most qualified consultant. There are currently six sets of Master Agreements. • 2012 Master Design Agreements (expired) • 2015 Master Design Agreements (expired) • 2018 Master Design Agreements • 2017 Master Agreements for CEQA Studies • 2017 Master Agreements for Collection Planning Studies • 2017 Master Agreements for Wastewater Treatment Planning Studies The two Master Design Agreements from 2012, and 2015 have expired, meaning no new task orders can be issued under them, but previously-issued task orders remain active until completed. Task Orders are limited by Sanitation District Ordinance No. OCSD-52 $300,000 per task order. A status table for all Active Engineering Services Agreements (PDSAs and PCSAs) is attached under Table 3, and a status table for all Active Task Orders by Master Agreement is attached under Table 4 (Master Agreements). 6 Capital Improvement Program Contract Performance Report for Quarter Ending 12/31/2019 Table 3-Active Engineering Services Agreements Award Board Award Current Contract Original Current Contingency Contingency Project/Contract Type Consultant Date Amount Amendments Amount Contingency Contingency Used Remaining 2-41-8 SARI Rock Stabilizers Removal 2-41-8 SARI Rock Stabilizers Removal PCSA Michael Baker International,Inc. 09/26/2018 $215,129 $0 $215,129 10.0% 10.0% 0.0% 10.0% 2-72 Newhope-Placentia Trunk Replacement 2-72 Newhope-Placentia Trunk Replacement PCSA Lee&Ro 03/23/2016 $3,253,946 $0 $3,253,946 10.0% 10.0% 0.0% 10.0% 2-72 Newhope-Placentia Trunk Replacement PDSA Lee&Ro 10/22/2014 $8,468,232 $434,974 $8,903,206 10.0% 10.0% 5.1% 4.9% 3-62 Westminster Blvd Force Main Replacement 3-62 Westminster Blvd Force Main Replacement PCSA Stantec Consulting Services,Inc. 12/18/2019 $1,183,000 $0 $1,183,000 10.0% 10.0% 0.0% 10.0% 3-62 Westminster Blvd Force Main Replacement PDSA Stantec Consulting Services,Inc. 07/22/2015 $6,917,175 -$1,339,457 $5,577,718 10.0% 10.0% 0.0% 10.0% 3-64 Rehabilitation of Western Regional Sewers 3-64 Rehabilitation of Western Regional Sewers PDSA AECOM Technical Services,Inc. 01/27/2016 $17,639,250 $1,088,654 $18,727,904 10.0% 10.0% 6.2% 3.8% 3-67 Seal Beach Pump Station Replacement 3-67 Seal Beach Pump Station Replacement PDSA Lee&Ro 11/20/2019 $5,947,850 $0 $5,947,850 10.0% 10.0% 0.0% 10.0% 5-60 Newport Force Main Rehabilitation 5-60 Newport Force Main Rehabilitation PCSA Brown and Caldwell 04/29/2014 $2,231,925 $839,714 $3,071,639 8.0% 38.7% 37.6% 1.0% 5-67 Bay Bridge Pump Station Replacement 5-67 Bay Bridge Pump Station Replacement PDSA Arcadis US Inc. 10/25/2017 $7,137,000 $295,168 $7,432,168 10.0% 10.0% 4.1% 5.9% 6-17 District 6 Trunk Sewer Relief 6-17 District 6 Trunk Sewer Relief PCSA RMC Water&Environment 10/10/2016 $290,000 $0 $290,000 15.0% 15.0% 0.0% 15.0% 7-66 Sunflower and Red Hill Interceptor Repairs 7-66 Sunflower and Red Hill Interceptor Repairs PDSA GHD 09/25/2019 $308,712 $0 $308,712 10.0% 10.0% 0.0% 10.0% J-117 Ocean Outfall System Rehabilitation 1-117B Outfall Low Flow Pump Station PCSA Brown and Caldwell 12/19/2018 $8,563,913 $0 $8,563,913 10.0% 10.0% 0.0% 10.0% J-124 Digester Gas Facilities Rehabilitation v 1-124 Digester Gas Facilities Rehabilitation PDSA Brown and Caldwell 11/15/2017 $11,770,000 $50,000 $11,820,000 10.0% 10.0% 0.4% 9.6% J-126 Safety Improvements Program 1-126 Safety Improvements Program PDSA Arcadis 08/29/2016 $3,040,000- $0 $3,040,000 10.0% 10.0% 0.0% 10.0% J-128 Project Management Information System 1-128 Project Management Information System Other PMWeb,Inc. 05/24/2017 $1,022,500 $79,525 $1,102,025 20.0% 20.0% 7.8% 12.2% Small Construction Projects Program FE16-11 Lane Channel Crossing PSA HDR Engineering,Inc. 06/28/2017 $131,939 $0 $131,939 10.0% 10.0% 0.0% 10.0% Research Program RE17-02 Biogas Scrubber Evaluation PSA Carollo Engineers,Inc. 04/21/2017 $656,783 $0 $656,783 0.0% 0.0% 0.0% 0.0% Planning Studies Program PS15-02 Edinger Pump Station Rehabilitation Study PSA Lockwood,Andrews&Newman,Inc. 12/20/2017 $505,042 $0 $505,042 10.0% 10.0% 0.0% 10.0% PS15-06 Seismic Evaluation of Structures at Plant Nos.1 and PSA Geosyntec Consultants,Inc. 06/28/2017 $2,578,028 $132,425 $2,710,453 10.0% 10.0% 5.1% 4.9% 2 PS15-08 Collections Capacity Evaluation Study PSA RMC Water&Environment 08/24/2016 $2,802,675 $19,372 $2,822,047 10.0% 10.0% 0.7% 9.3% PS16-01 Stormwater Master Plan PSA Michael Baker International,Inc. 07/26/2017 $715,300 $54,839 $770,139 10.0% 10.0% 7.7% 2.3% PS17-03 Active Fault Location Study at Plant No.2 PSA Lettis Consultants International,Inc. 03/06/2019 $868,286 $0 $868,286 10.0% 10.0% 0.0% 10.0% PS17-08 CEQA-Facilities Master Plan PSA Dudek 02/27/2019 $812,709 $0 $812,709 10.0% 10.0% 0.0% 10.0% P1-101 Sludge Dewatering and Odor Control at Plant 1 P1-101 Sludge Dewatering and Odor Control at Plant 1 PCSA HDR Engineering,Inc. 06/28/2012 $7,140,000 $2,453,653 $9,593,653 8.0% 35.0% 34.4% 0.6% P1-105 Headworks Rehabilitation at Plant 1 P1-105 Headworks Rehabilitation at Plant 1 PDSA Carollo Engineers,Inc. OS/27/2015 $17,528,957 $7,659,692 $25,188,649 10.0% 10.0% 43.7% 0.0% P1-128 Headquarters Complex P1-128 Headquarters Complex PDSA HDR Engineering,Inc. 06/22/2016 $11,785,709 -$825,606 $10,960,103 10.0% 10.0% 0.0% 10.0% P1-128 Headquarters Complex PSA LSA Associates,Inc. 08/11/2016 $420,927 $0 $420,927 10.0% 10.0% 0.0% 10.0% P1-129 Return Activated Sludge Piping Replacement at Activated Sludge Plant No.1 P1-129 Return Activated Sludge Piping Replacement at PCSA AECOM Technical Services,Inc. 07/24/2019 $140,000 $0 $140,000 10.0% 10.0% 0.0% 10.0% Activated Sludge Plant No.1 P1-129 Return Activated Sludge Piping Replacement at PDSA AECOM Technical Services,Inc. 06/20/2017 $523,039 $27,015 $550,054 10.0% 10.0% 5.2% 4.8% Activated Sludge Plant No.1 Capital Improvement Program Contract Performance Report for Quarter Ending 12/31/2019 Table 3-Active Engineering Services Agreements Award Board Award Current Contract Original Current Contingency Contingency Project Contract Type Consultant Date Amount Amendments Amount Contingency Contingency Used Remaining P2-110 Consolidated Demolition and Utility Improvements at Plant 2 P2-110 Consolidated Demolition and Utility Improvements PCSA Stantec Consulting Services,Inc. 01/25/2017 $1,499,839 $0 $1,499,839 10.0% 10.0% 0.0% 10.0% at Plant 2 132-122 Headworks Modifications at Plant 2 for GWRS Final Expansion 132-122 Headworks Modifications at Plant 2 for GWRS Final PDSA CDM Smith Inc. 05/24/2017 $5,319,930 $0 $5,319,930 10.0% 10.0% 0.0% 10.0% Expansion P2-123 Return Activated Sludge Piping Replacement at Plant 2 132-123 Return Activated Sludge Piping Replacement at Plant PCSA SPEC Services,Inc. 09/25/2019 $252,329 $0 $252,329 10.0% 10.0% 0.0% 10.0% 2 132-123 Return Activated Sludge Piping Replacement at Plant PDSA SPEC Services,Inc. 02/15/2018 $668,217 $0 $668,217 10.0% 10.0% 0.0% 10.0% 2 132-124 Interim Food Waste Receiving Facility 132-124 Interim Food Waste Receiving Facility PDSA Kennedy/Jenks Consultants 09/05/2018 $695,000 $0 $695,000 10.0% 10.0% 0.0% 10.0% P2-92 Sludge Dewatering and Odor Control at Plant 2 132-92 Sludge Dewatering and Odor Control at Plant 2 PCSA Brown and Caldwell 12/17/2014 $4,798,328 $0 $4,798,328 10.0% 10.0% 0.0% 10.0% P2-98 Primary Treatment Rehabilitation at Plant 2 132-98 Primary Treatment Rehabilitation at Plant 2 PDSA Black&Veatch 07/27/2016 $18,141,423 $1,279,488 $19,420,911 10.0% 10.0% 7.1% 2.9% P2-98B B/C-Side Primary Clarifiers Interim Repair at Plant 2 PCSA Black&Veatch 01/23/2019 $549,534 $0 $549,534 10.0% 10.0% 0.0% 10.0% SP-152 Climate Resiliency Study SP-152 Climate Resiliency Study PSA Hazen and Sawyer 11/28/2018 $697,952 $58,694 $756,646 10.0% 10.0% 8.4% 1.6% SP-196 Process Control Systems Upgrades Study SP-196 Process Control Systems Upgrades Study I PSA IStantec Consulting Services,Inc. 03/01/20181 $1,389,866 $9,000 $1,398,866 10.0% 10.0% 0.6% 9.4% 00 Total 1 $158,610,444 $12,317,150 $170,927,594 **Original Award was$1,540,000,and later amended to$3,040,000 by Board Action Capital Improvement Program Contract Performance Report for Quarter Ending 12/31/2019 Table 4-Active Task Orders by Master Agreement Master Agreement/Project Consultant Award Date Order Value Original Task Amendments Current Task Order Value 2012 Master Professional Design Service Agreements(Expired) FE10-21 Area 02 Craig Regional Park Manhole Improvements GHD 10/8/2012 $58,440 $41,560 $100,000 2015 Master Professional Design Service Agreements(Expired) FE14-05 Plant No.1 Fleet Services UST Leak Remediation Dudek 9/1/2015 $86,116 $73,137 $159,253 PS17-02 Guidelines for Development in the Area of OCSD Facilities AECOM 8/21/2017 $93,187 $0 $93,187 2017 Master Agreements for Wastewater Treatment Planning Studies P1-101 Spill Prevention,Control,and Countermeasure Plan for Sludge Dewatering and Odor AECOM 06/27/2018 $28,216 $10,935 $39,151 Control at Plant No.1 PS18-10 Root Cause Analysis of Malfunctioning Process Units at TFSC Facility at Plant No.2 Brown and Caldwell 2/6/2019 $24,783 $0 $24,783 PS18-01 Asset Management Plan Development HDR Engineering,Inc. 04/03/2019 $274,777 $0 $274,777 PS17-10 Emergency Overflow Weirs,Wing Wall Structural and Geotechnical Investigations HDR Engineering,Inc. 05/21/2019 $260,415 $0 $260,415 PS18-05 Plant No.2 Future Site Plan Development Brown and Caldwell 05/22/2019 $122,389 $0 $122,389 2017 Master Agreements for Collection Planning Studies No Task Orders Issued to Date -- -- -- -- -- 2017 Master Agreements for CEC A Studies No Task Orders Issued to Date -- -- -- -- -- 2018 Master Professional Design Service Agreements 1-127 Natural Gas Pipelines Replacement at Plant Nos.1 and 2 Black&Veatch 1/21/2019 $271,964 $0 $271,964 FE18-19 12KV Distribution Center B and East RAS Pump Station Roof Replacement HDR Engineering,Inc. 09/16/2019 $74,771 $0 $74,771 FE18-15 Plant Boiler System Relief at Plant No.2 IDS Group,Inc. 10/22/2019 $23,299 $0 $23,299 FR2-0013 Trickling Filter Sludge Pump Room Exhaust Fan Relocation at Plant No.2 AECOM 11/6/2019 $75,120 $0 $75,120 FE18-14 Plant Water Pipeline Replacement in Kinnison,Lindstrom,and Scott Tunnels at Plant Dudek 11/6/2019 $108,308 $0 $108,308 No.2 FE18-16 Truck Loading Basement Drain Modifications at Plant No.1 GHD,Inc. 12/4/2019 $70,130 $0 $70,130 Total $1,571,915 $125,632 $1,697,547 "`" SA"" /°a ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending December 31, 2019 TM1,s THE E PART 3 — MASTER BUDGET PROJECTS The Board-adopted budget for Fiscal Years 2018-19 and 2019-20 includes master program budgets that allow staff to more quickly initiate, execute, and manage smaller projects that fit within the scope of a particular program. The projects chartered under these program budgets are referred to as sub-projects and are managed to the same standards as projects specifically listed in the adopted budget. A status table for each of these programs listing the sub-projects is attached. Master Program Title Status Table Planning Studies Program Table 5 Research Program Table 6 Small Construction Projects Program Table 7 Information Technology Capital Program Table 8 Operations & Maintenance Capital Program Table 9 10 Capital Improvement Program Contract Performance Report for Quarter Ending 12/31/2019 Table 5-Planning Studies Status Report Project Number Project Name Status Allocated Budget PS15-01 Biosolids Master Plan Closed $ 3,496,985 PS15-02 Edinger Pump Station Rehabilitation Study Active $ 971,000 PS15-06 Seismic Evaluation of Structures at Plant Nos.1 and 2 Active $ 3,860,000 P515-07 Pressurization and Odor Control Study at Newport Beach Closed $ 344,145 PS15-08 Collections Capacity Evaluation Study Active $ 3,682,000 P515-10 2017 Facilities Master Plan Active $ 3,850,000 PS16-01 Stormwater Master Plan Active $ 1,415,700 P516-02 SCE Feed Reliability Improvements Study Active $ 293,000 PS16-04 Rectangular Primary Clarifier Reliability Study at Plant No.1 Closed $ 298,389 PS17-01 Fire Flow Testing at Plant No.1 Closed $ 28,043 PS17-02 Guidelines for Development in the Area of OCSD Facilities Active $ 176,000 PS17-03 Active Fault Location Study at Plant No.2 Active $ 1,300,000 PS17-04 Office Workspace Study for Plant No 1 and 2 Closed $ 103,429 PS17-08 CECA-Facilities Master Plan Active $ 1,170,000 PS17-09 Calibration of Plant 1/Plant 2 InfoWorks Hydraulic Model Closed $ 51,996 PS17-10 Emergency Overflow Weirs,Wing Wall Structural and Geotechnical Investigations Active $ 465,000 PS18-01 Asset Management Plan Development Active $ 420,000 PS18-02 Bushard Diversion Structure Rehabilitation Study Active $ 96,000 P518-03 AS Plant Aeration Alternatives Study at Plant 2 Closed $ - PS18-04 Easements Assessment Closed $ - PS18-05 Plant No.2 Future Site Plan Development Active $ 217,000 PS18-06 Go/No-Go Lights and Signage Active $ 495,000 PS18-07 ASCE Review of CIP Program Active $ 23,680 PS18-08 Plant 2 Cen Gen Engine Exhaust Oxidizer Catalyst Cracking Root Cause Analysis Closed $ - PS18-09 Ocean Outfall Condition Assessment and Scoping Study Active $ 1,850,000 PS18-10 Root Cause Analysis of Malfunctioning Process Units at TFSC Facility at Plant No.2 Active $ 41,000 PS18-11 ETAP Model Updates for Plant Nos 1 and 2 Active $ 553,000 PS18-12 Laboratory Building Implementation Study Closed $ - PS19-01 Digester 6 Pipe Stress Analysis at Plant No.1 Active $ 45,000 PS19-02 Circular Primary Clarifier Replacement Phasing Study at Plant No 1 Active $ 53,000 Grand Total $ 25,299,367 Number of Chartered Projects 30 Board Approved Program Budget $ 28,652,000 Remaining Unallocated Budget $ 3,352,633 11 Capital Improvement Program Contract Performance Report for Quarter Ending 12/31/2019 Table 6- Research Program Status Report Project Number Project Name Status Allocated Budget RE17-01 Operational Research Technical Support FY18-19 Active $ 650,000 RE17-02 Biogas Scrubber Evaluation Active $ 865,000 RE17-03 Reliant Wet Well Wizard Test Closed $ 45,013 RE17-04 AquaNereda Aerobic Granular Sludge Process Active $ 242,000 RE17-05 Organica FCR Process Active $ 242,000 RE17-06 TWAS Pump Reliability Improvement Trials at Plant No.2 Closed $ 10,159 RE17-07 Super Oxygenation System Research at Seal Beach Pump Station Closed $ 80,000 RE18-01 Trickling Filter Bleach Test at Plant No.1 Active $ 140,000 RE18-02 Protein Matrix Demonstration Study at Plant No 1 Active $ 150,000 Grand Total $ 2,424,172 Number of Chartered Projects 9 Board Approved Program Budget $ 8,500,000 Remaining Unallocated Budget $ 6,075,828 12 Capital Improvement Program Contract Performance Report for Quarter Ending 12/31/2019 Table 7-Small Construction Projects Program Status Report Project Number Project Name Status Allocated Budget FE10-21 Area 02 Craig Regional Park Manhole Improvements Active $ 1,359,000 FE12-10 IT Server Room Cooling Improvements Closed $ 956,086 FE13-04 Plant No.2 Trickling Filter Chemical Odor Control Closed $ 4,745,752 FE14-03 Rehabilitation of Digester Mixing Pumps at P2 Digesters E,H,R,S,and T Closed $ 1,177,965 FE14-05 Plant No.1 Fleet Services UST Leak Remediation Active $ 1,487,311 FE15-01 Fullerton Creek Channel Crossing Closed $ 84,640 FE15-06 Gas Compressor Building Piping Replacement at Plant 2 Closed $ 1,605,540 FE15-07 Secondary Treatment and Plant Water VFD Replacement at Plant 1 Active $ 3,319,600 FE15-09 CenGen Hot Water Pipe Bracing at Plant 1 Closed $ 360,977 FE15-10 East Lido Force Main Rehabilitation Active $ 2,228,000 FE16-01 Big Canyon Nature Park Improvements Closed $ 29,915 FE16-02 Jamboree Sewer Realignment at Big Canyon Closed $ 54,434 FE16-05 Buried Water Valve Support Upgrades at Plant 2 Closed $ 254,836 FE16-06 Fuel Cell Facilities Demolition Active $ 900,000 FE16-08 Carbon Canyon Clay Pipe Repairs Closed $ 648,756 FE16-10 East Basin Distribution Box Repair Active $ 1,021,960 FE16-11 Lane Channel Crossing Active $ 500,000 FE16-12 Garfield Road Perimeter Security Fence Closed $ 37,410 FE16-13 Collections Infrastructure Relocation at Plant 2,Phase 1B Closed $ 93,747 FE16-14 Slater Pump Station Valve Replacements Active $ 1,050,000 FE17-01 Carbon Canyon Pipeline Sag Repairs Active $ 783,000 FE17-03 Battery Storage System at Plant No.1 Active $ 571,000 FE17-04 Storm Water Compliance Improvements at 3 Pump Stations Closed $ 8,929 FE17-05 Plant 1 ICS Network Extension Active $ 950,000 FE17-07 Fruit Street Trunk Sewer Relocation-OC Streetcar Closed $ 8,474 FE17-08 Big Canyon Trunk Sewer Realignment-BCCC Maintenance Yard Closed $ 80,735 FE18-01 Interim Relocation to 18350 Mt.Langley Active $ 665,000 FE18-02 Jamboree Sewer Transfer Closed $ 300,000 FE18-03 Building 6 Staff Consolidation Closed $ - FE18-04 Activated Sludge Basin Lighting Repair at Plant No.2 Closed $ 52,882 FE18-05 Plant Water Pipe Replacement at AS 1 at Plant No.1 Closed $ - FE18-06 CenGen Instrument Air Compressors Replacement at Plant No.1 and No.2 Active $ 1,450,000 FE18-07 Pump Station Electrical Bypass Improvements Closed $ - FE18-08 West Trunk Bypass Sewer Realignment Active $ 98,000 FE18-10 Mt Langley HVAC Replacement and Upgrades Closed $ 573,540 FE18-11 Headworks Explosive Gas Monitoring Systems at Plant No.1 and No.2 Active $ 335,000 FE18-12 Erosion Control at Santa Ana River and Hamilton Ave Active $ 245,000 FE18-13 Redhill Relief Sewer Relocation at State Route 55 Active $ 1,540,000 FE18-14 Plant Water Pipeline Replacement in Kinnison,Lindstrom,and Scott Tunnels at Active $ 1,425,000 FE18-15 Plant Boiler System Relief at Plant No.2 Active $ 180,000 FE18-16 Truck Loading Basement Drain Modifications at Plant No.1 Active $ 440,000 FE18-17 Trunkline Sampler Power Feed at Plant No 2 Active $ 160,000 FE18-18 Portable Generator Connector at Lido Pump Station Active $ 106,000 FE18-19 12KV Distribution B and East RAS Pump Station Roofing Replacement Active $ 600,000 FE18-20 Blower Building No.1 Air Compressors at Plant No.1 Active $ 1,200,000 FE19-01 Pump Station Portable Generator Connectors Active $ 1,300,000 FE19-02 Cengen Plant Water Pipe Replacement at Plant No.1 Active $ 825,000 FE19-04 Sunflower Pump Repairs at Plant No.1 Closed $ - FE19-03 Trickling Filter Sludge and Scum Pumps Replacement at Plant No.1 Active $ 700,000 FE19-05 Engineering Trailer B Car Chargers at Plant No.1 Active $ 12,000 FE19-06 EPSA Motor Cooling Improvements at Plant No.2 Closed $ - Grand Total $ 36,525,489 Total Chartered Projects 51 Board Approved Program Budget $ 53,250,000 Remaining Unallocated Budget $ 16,724,511 13 Capital Improvement Program Contract Performance Report for Quarter Ending 12/31/2019 Table 8- Information Technology Capital Program Status Report Project Number Project Name Status Allocated Budget IT16-03 Plant 2 Internet Connection Active $ 50,000 IT16-05 Plant 2 Radio Repeater Upgrade Closed $ 35,000 IT16-06 Network Equipment 2016-17 Closed $ 44,302 IT16-07 Server Replacement and Obsolescence Closed $ 337,332 IT16-08 IT Security 2016-17 Active $ 162,000 IT16-09 iPACS Enhancements Active $ 85,000 IT16-10 LIMS Compliance Improv Project Active $ 754,800 IT16-11 Business Continuity Plan Active $ 140,000 IT17-01 VMWare Active $ 800,000 IT17-02 Upgrade Active Directory Directory to 2016 Active $ 56,000 IT17-03 Upgrade ShoreTel System Server Active $ 190,000 IT17-04 PCllmprovements Closed $ 131,093 IT17-05 Conference Room Monitor Upgrade Active $ 75,686 IT17-06 Printer Obsolescence Active $ 350,000 IT17-07 Safety Management Suite Active $ 106,000 IT17-08 Perimeter Physical Security Im Closed $ 170,077 IT17-09 MYOCSD Redesign Closed $ 170,077 IT17-10 Electronic Operator Round Form Active $ 45,000 IT17-11 P2 Radio Repeater Closed $ 170,077 IT17-12 Sever/Network Power Improvements Active $ 90,000 IT17-13 Graphric Workstations for PAO Closed $ 15,000 IT17-14 Specialized Application Programing&Support Active $ 600,000 IT17-15 Data Storage Replac/Obsolescens Active $ 600,000 IT18-02 Fleet Management Information System Active $ 250,000 IT18-03 Timecard Systems Upgrade Active $ 150,000 IT18-04 Conference Rooms Audio System Replacement Active $ 90,000 IT18-05 Trusted System Document Management Active $ 100,000 IT18-06 Server Replacement and Obsolescence FY18/19-19/20 Active $ 900,000 IT18-07 Network Equipment FY18/19-19/20 Active $ 850,000 IT18-09 Records Management Information System Active $ 100,000 IT18-10 Board Services Management System Active $ 60,000 IT18-11 IT Security Budget 2018-2019 Active $ 150,000 Grand Total $ 7,827,444 Total Chartered Project 32 Board Approved Program Budget $ 10,000,000 Remaining Unallocated Budget $ 2,172,556 14 Capital Improvement Program Contract Performance Report for Quarter Ending 12/31/2019 Table 9-Operations& Maintenance Capital Program Status Report Project Number Project Name Status Allocated Budget FR00001 SALS Hidrostal Pump Active $ 212,268 FR00002 Chopper Pump at Dig P P2 Active $ 212,268 FR00008 Rag Bin Ramp Retrofit Active $ 33,038 FR00011 Westside Impeller/Line Replacement Active $ 108,368 SC16-01 Maint.Storage Area Tool Cage Active $ 12,000 SC17-01 CENGEN#1 Elevator Rehab Active $ 12,000 SC17-02 P1 CenGen Plant Water Piping Rehabilitation Active $ 250,000 SC17-03 CenGen Oil Filter Platform Active $ 260,000 SC17-04 P1 CenGen 12KV Circuit Breaker Replacement Active $ 220,000 SC17-05 Hidrostal Pump-TEFC Close Coupled Motor#2(Pump for SALS) Active $ 261,260 SC17-06 P1 Lab UPS System Replacement Active $ 290,294 SC18-01 P1 Primary Clarifier Fall Protection Improvements Active $ 50,000 SC18-02 Joint Cen Gen Oil Centrifuge Heater&Controls Rehabilitation(MP-18) Active $ 120,000 SC18-03 P1 SALS Main Duty Pump&Motor and Installation-Remaining 2(MP-524) Active $ 500,000 SC18-04 Edinger UPS Replacement(MP-444) Active $ 15,000 SC18-05 P1 Laboratory HVAC Boiler Burner Replacement At Plant No.1 Active $ 311,000 SC18-06 Pump Station Bypass Parts-Procurement(MP-426) Active $ 500,000 SC18-08 MacArthur Pump Station-FM Valve Replacement Active $ 55,109 SC18-09 Admin Bldg UPS System Replacement Active $ 185,000 SC18-10 P2 South Scrubber Complex Bleach Pump Turndown(MP-420) Active $ - SC19-01 Main Air Compressor Building Electrical Improvements at Plant No.2 Active $ 359,176 Grand Total $ 3,966,781 Total Chartered Projects 21 Board Approved Program Budget $ 15,622,000 Remaining Unallocated Budget $ 11,655,219 15 "`" SA"" /°a ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending December 31, 2019 T,M1,s THE E PART 4 — SUPPLEMENTAL ENGINEERING SERVICES CONTRACT In May 2016, the Sanitation District Board of Directors approved a $41 million professional services agreement with Jacobs Project Management Co. to provide supplemental engineering and support staff services for a four-year term with the option of three one-year renewals. The benefits of using a supplemental engineering services contract, as opposed to hiring full-time staff or limited-term employees, include rapid mobilization of highly skilled/technical staff, flexibility to change the mix of staff positions on an immediate and as-needed basis, the ability to reduce staff as workloads decrease, access to technical experts to support special tasks, and access to staff with wastewater project experience. A status table for the supplemental engineering services contract summary is attached under Table 10, and the supplemental engineering services labor summary can be found under Table 11. Table 10—Supplemental Engineering Services Contract Status Total Fees Time Contract $41,000,000 86 months (1) Actuals to Date $17,625,762 43% 41 months 48% Remaining $23,374,238 57% 45 months 52% (1)Assuming three 1-year extensions Table 11 -Supplemental Engineering Services Labor Summary This Quarter Inception to Date Labor Hours 9,557 140,542 Full Time Equivalents 21.2 21.3 Labor Costs (no expenses) $1,216,006 $18,434,879 Average Hourly Rate $127 $131 16 oJ�1V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 OPERATIONS COMMITTEE (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-912 Agenda Date: 2/26/2020 Agenda Item No: 6. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: WESTMINSTER BOULEVARD FORCE MAIN REPLACEMENT, PROJECT NO. 3-62 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve a Sewer Relocation Agreement between the Orange County Sanitation District and the Midway City Sanitary District. BACKGROUND Midway City Sanitary District (MCSD) operates and maintains sewers in the vicinity of the Orange County Sanitation District (Sanitation District) Knott trunk sewer that is located along Westminster Boulevard in the City of Westminster. MCSD discharges flow into an existing Sanitation District manhole that will be modified by Westminster Boulevard Force Main Replacement, Project No. 3-62. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM Westminster Boulevard Force Main Replacement, Project No. 3-62, is replacing the sewers along Westminster Boulevard that have reached the end of their useful lives. Construction of the sewers requires an extension of the MCSD sewers. PROPOSED SOLUTION Approve a Sewer Relocation Agreement between the Sanitation District and the MCSD to extend the existing MCSD force mains. This work is included within Westminster Boulevard Force Main Replacement, Project No. 3-62. Orange County Sanitation District Page 1 of 2 Printed on 2/20/2020 powered by LegistarTM File #: 2020-912 Agenda Date: 2/26/2020 Agenda Item No: 6. TIMING CONCERNS The Sewer Relocation Agreement must be executed prior to construction of the modified MCSD facilities. This project is scheduled to commence in February 2020 and complete in October of 2022. RAMIFICATIONS OF NOT TAKING ACTION Westminster Boulevard Force Main Replacement, Project No. 3-62, could not be completed because it would not provide a connection for the MCSD force mains. PRIOR COMMITTEE/BOARD ACTIONS December 2019 - Awarded a Construction Contract to Teichert Energy & Utilities Group, Inc. for Westminster Boulevard Force Main Replacement, Project No. 3-62, for a total amount not to exceed $27,743,000, and approved a contingency of $2,774,300. ADDITIONAL INFORMATION The Sanitation District and MCSD staff coordinated the design of this relocation as part of Westminster Boulevard Force Main Replacement, Project No. 3-62. CEQA The project is exempt from CEQA under the Class 1, 2, 3, and 4 categorical exemptions set forth in California Code of Regulations Sections 15301, 15302, 15303, and 15304, because the project involves repair, replacement, minor alteration including land, construction or reconstruction of existing utility systems involving negligible or no increase in capacity. A Notice of Exemption was filed with the OC Clerk-Recorder on January 6, 2020. FINANCIAL CONSIDERATIONS Relocation of the MCSD force main is included within the scope of Westminster Boulevard Force Main Replacement, Project No. 3-62. As the relocation is required to accommodate Sanitation District improvements, the Sanitation District is responsible for the associated costs. This item has been budgeted. (FY2019-20 Update, Appendix A, Page A-7) and the budget is sufficient for this action. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Sewer Relocation Agreement JGD:dm:gc Orange County Sanitation District Page 2 of 2 Printed on 2/20/2020 powered by LegistarTM SEWER RELOCATION AGREEMENT BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND MIDWAY CITY SANITARY DISTRICT THIS SEWER RELOCATION AGREEMENT ("Agreement"), is made and entered into on this day of , 2020 by and between the ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District ("OCSD"), and MIDWAY CITY SANITARY DISTRICT, a Sanitation District under the Sanitary District Act of 1923 ("MCSD"). OCSD and MCSD are sometimes hereinafter individually referred to as "Pat " and hereinafter collectively referred to as "Parties." RECITALS WHEREAS, OCSD is a duly organized County Sanitation District existing pursuant to the County Sanitation District Act, California Health and Safety Code section 6300, et seq. (the "Act"), providing for the ownership, operation, and maintenance of wastewater collection, treatment, and disposal facilities within Orange County, California; WHEREAS, MCSD is likewise a Sanitation District existing under the Act, providing sewer and solid waste services to the residents and businesses of the cities of Westminster and Midway, California; WHEREAS, OCSD owns, operates and maintains sewer facilities including, but not limited to, force mains and siphon outlet structures located beneath Westminster Boulevard in the Cities of Seal Beach and Westminster; WHEREAS, as part of the Western Regional Sewers Program, OCSD intends to replace and reconfigure approximately three miles of dual force mains beneath Westminster Boulevard from Seal Beach Boulevard in the City of Seal Beach to Rancho Road/Hammon Place in the City of Westminster (the "Westminster Location") because the existing sewer facilities in the Westminster Location are aging and in need of replacement(the "Project"); WHEREAS, MCSD owns, operates, and maintains certain sewer facilities beneath the Westminster Location including a force main that connects to OCSD' s sewer facilities at OCSD siphon outlet structure KNT0275-0065, which needs to be replaced, relocated and extended as a result of the Project; WHEREAS, OCSD has agreed to do the following: demolish the existing MCSD force main currently connected to OCSD's sewer facilities at OCSD siphon outlet structure KNT0275- 0065; demolish the existing MCSD manhole; construct replacement MCSD force mains consisting of two (2) concrete encased 12" PVC DR 14 pipes with restrained ductile iron fittings; construct a new MCSD manhole; construct a new concrete encased 15" VCP gravity sewer to connect the new MCSD manhole to the existing OCSD siphon outlet structure KNT0275-0060; and perform any related design, trenching, bedding, excavation, demolition, construction, and any other work necessary to properly and safely complete the foregoing (collectively, the ")Kork") in accordance with the tentative plans attached to this Agreement as Exhibit "A" (the 1 LEGAL02/39230612v8 "Tentative Plans"), as they may be modified by the Approved Plans and Specifications (as defined below); and WHEREAS, OCSD agrees to: (a) be responsible for the design, management, and construction of the Work, which includes any demolition, abandonment, removal, replacement, and/or relocation of any existing sewer facilities necessary to complete the Work; and (b) pay all costs and expenses related to the Work subject to the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the mutual promises set forth herein, the Parties hereto agree as follows: Section 1: Recitals. The Recitals above are deemed true and correct, are hereby incorporated into this Agreement by this reference, as though fully set forth herein, and each Party to this Agreement acknowledges and agrees that it is bound by the same. Section 2: Elements of Agreement. OCSD and MSCD will work cooperatively together so that the Work can be completed in a manner that minimizes the cost to and impact on the public. The specific terms and conditions governing the elements of this Agreement are set forth hereinafter. Section 3: OCSD's Specific Obligations._ A. OCSD shall (and shall cause its agents and contractors to) comply with all applicable laws, regulations, and ordinances in connection with performing the Work. B. OCSD will enter into and administer contracts for the design services needed for the Work, which includes contracting with the necessary engineering consultant(s) to accomplish the design efforts, and OCSD assumes full responsibility for the design and construction services necessary to complete the Work. C. OCSD shall promptly inform MCSD of any proposed changes to the construction contract as it relates to the Work. Copies of proposed changes to the construction contract affecting some or all of MCSD's facilities will be provided to MCSD within five (5) working days after OCSD's receipt thereof. D. OCSD will submit prepared plans and specifications for the design and construction of the Work for review, comment, and written approval by MCSD, such approval not to be unreasonably withheld, conditioned, or delayed. MCSD shall notify OCSD, in writing, of its approval or withholding of approval of the plans and specifications within ten (10) calendar days after MCSD's receipt of the proposed plans and specifications from OCSD. If MCSD does not approve such proposed plans and specifications, MCSD will in such written notice provide OCSD 2 LEGAL02/39230612v8 with a reasonably-detailed statement of its basis for denial, whereupon OCSD shall require its hired consultant to correct the plans and specifications to MCSD's reasonable satisfaction. The final plans and specifications approved in writing by MCSD shall be referred to hereinafter as the "Approved Plans and Specifications". E. OCSD shall be responsible for advertising, awarding, and administering a contract for the construction of the Work, in conformance with all applicable laws governing construction of public works by OCSD. In connection with the foregoing, OCSD will issue a public works bid package as well as administer and enter into a construction contract to perform the Work in accordance with the Approved Plans and Specifications. OCSD shall ensure that the contractor for the Work has the appropriate license from the California State License Board and that such contractor complies with the prevailing wage laws including, but not limited to, California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. ("Prevailing Wage "). Upon determination of the successful bidder, OCSD will submit such information to MCSD for their files. F. OCSD shall not accept any portion of the Work unless it has been previously inspected and approved in writing by MCSD. In connection therewith, OCSD will request, from time to time, that MCSD inspects and approves the Work or any portion thereof. Such request for inspection and approval shall be referred to herein as an"OCSD Inspection Request". G. OCSD will document and inform MCSD of the date of its final acceptance of the Work, and the date when the Notice of Completion is filed. H. OCSD shall prepare and submit, in the name of MCSD and with MCSD's prior approval and consent, any Trunk Sewer Connection Application and Permit required for MCSD to connect to OCSD's sewer facilities upon completion of the Work ("Connection Permit"). Any fees, expenses, or charges required in connection with preparing, submitting, and/or obtaining approval of the Connection Permit shall be paid by OCSD. L OCSD, its agents, and contractors shall keep the Work free from any statutory or common law liens arising out of any Work performed, materials furnished, or obligations incurred by OCSD, its agents, or contractors in connection with the Work. Section 4: MCSD's Specific Obligations. A. MCSD will provide, at MCSD's sole expense, inspection services for the Work as it deems necessary to assure compliance with the Approved Plans and Specifications, including, but not limited to, shop drawing review and 3 LEGAL02/39230612v8 material inspection. In connection therewith, OCSD shall provide MCSD inspectors uninhibited access to the area of the Project where the Work is being performed to review, check and inspect the Work, and an adequate on-site work space to perform such services, provided that MCSD has given OCSD twenty-four (24) hours advance notice of its desire to inspect the Work. By no later than two (2) working days after any such inspection, MCSD will promptly notify OCSD in writing if any portion of the Work appears not to conform to the Approved Plans and Specifications, and OCSD shall cause its contractor to correct such non- conforming Work to be consistent with the Approved Plans and Specifications. B. MCSD will respond to any OCSD Inspection Request within two (2) working days and conduct the requested inspection within three (3) working days thereafter. If MCSD fails to respond to an OCSD Inspection Request or conduct the requested inspection within the respective time periods prescribed above, or if MCSD fails to notify OCSD that any portion of the Work appears not to conform to the Approved Plans and Specifications within two (2) working days after its inspection, the Work, in its then-current condition, shall be automatically deemed approved by MCSD. C. MCSD shall return comments to OCSD on all shop drawing submittals and change order requests and respond to OCSD's requests for information within three (3) working days from receipt of such submittals by MCSD; provided, however, that MCSD shall not unreasonably withhold, condition, or delay its approval of any change order proposed by OCSD that: (i) is required to perform the Work properly and/or to comply with any entitlement, permit, or approval for the Work issued, or to be issued, by any governmental body; and (ii) does not materially and adversely affect the function of MCSD's force mains, manhole, or related systems or equipment. If MCSD fails to respond to any shop drawings or change order submitted by OCSD within such three (3) working day period, the submitted shop drawings or change order, as applicable, shall automatically be deemed approved by MCSD. This provision shall not apply to review process for the plans and specifications. Section 5: Payment for Work. OCSD shall pay 100% of the actual and necessary costs and expenses of the herein described Work. Notwithstanding the foregoing, OCSD shall not be responsible for any costs or expenses incurred by OCSD as a result of. (a) MCSD's failure to timely and fully comply with its obligations under this Agreement; (b) any change order required by MCSD that is not required to perform the Work properly, but is instead done for MCSD's convenience or to satisfy MCSD's preference; or (c) any losses, costs, damages, or liabilities arising from negligence or willful misconduct on the part of MCSD, its officers, agents, employees, or consultants. 4 LEGAL02/39230612v8 Section 6: Final Approval of Work. Prior to MCSD's acceptance of the Work and OCSD's recordation of a Notice of Completion, MCSD shall review and provide written approval of the Work. When the Work is ready for MCSD's final inspection, OCSD shall notify MCSD of the same in writing, and MCSD shall make arrangements with OCSD to perform its final inspection of the Work within three working days following MCSD's receipt of such notice. MCSD's written approval shall only be withheld for Work not completed in accordance with the Approved Plans and Specifications. OCSD shall furnish MCSD with one set of record drawings for the completed Work and a copy of the recorded Notice of Completion. Upon MCSD's written approval, OCSD shall transfer to MCSD, and MCSD shall accept and assume ownership of and responsibility for operation, maintenance, upkeep, repair, and replacement of all improvements installed or constructed as part of the Work. OCSD shall, promptly following written request therefor from MCSD, deliver to MCSD any documents or instruments necessary to evidence or complete such transfer to MCSD. Section 7: Encroachment Permit(s). To the extent required by OCSD to perform the Work in accordance with the Approved Plans and Specifications, as determined in OCSD's sole and absolute discretion, OCSD agrees to acquire, at OCSD's sole cost and expense, any encroachment permit(s) in the name of either OCSD or MCSD, as appropriate. Notwithstanding the foregoing, OCSD shall not be responsible for the payment of any annual fees, costs or expenses required to be paid after the original acquisition of such encroachment permit(s) unless such encroachment permit(s) are in the name of OCSD. The Parties shall timely and fully cooperate with each other and shall execute such other and further documents and take such other and further actions as may be necessary or convenient to obtain any such encroachment permits. Section 8: Indemnification. A. OCSD will, and it hereby does, indemnify, defend, and hold harmless MCSD, its elected and appointed officials, officers, agents, employees, and contractors from any and all actions, suits, claims, liability, or expense for death, injury, loss, or damage to persons or property that may arise or that are claimed to have arisen during or as a result of the Work performed by or on behalf of OCSD, its officers, agents, employees, or contractors, save and except to the extent that such action, suit, claim, liability, or expense is caused by or a result of any act, omission, or negligence of MCSD, its officers, agents, employees, or contractors. B. MCSD will, and it hereby does, indemnify, defend, and hold harmless OCSD, its elected and appointed officials, officers, agents, employees, and consultants, from any and all actions, suits, claims, liability or expense for death, injury, loss, or damage to persons or property that may arise or that are claimed to have arisen as a result of any act performed by MCSD, its officers, agents, employees, or contractors, with respect to the Work including in connection with the operation, maintenance, upkeep, repair, and/or replacement of the Work, save and except to the extent that such action, suit, claim, liability, or expense is solely caused by or a result of 5 LEGAL02/39230612v8 any act, omission or negligence of OCSD, its officers, agents, employees, or contractors. Section 9. Term. This Agreement will be in full force and effect until the specified obligations of both Parties have been fulfilled or until the Parties mutually agree to terminate this Agreement in writing. Section 10: Agents. Any contractor or subcontractor performing or providing services in connection with the Work described herein on behalf of either Party will be conclusively deemed to be the servant and agent only of the Party that employed or contracted with said contractor or subcontractor, acting on behalf and within the scope of such contractor's or subcontractor's employment for said Party. Section 11: Notices. All notices or other communications required or permitted hereunder will be in writing and will be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, delivered or sent by electronic transmission, and will be deemed received upon the earlier of. (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) three (3) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by electronic transmission. Any notice, request, demand, direction, or other communication sent by electronic transmission must be confirmed within forty-eight (48) hours by letter mailed or delivered. Notices or other communications will be addressed as follows: To OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Attention: Justin Fenton, Sr. Engineer Phone: (714) 593-7386 E-mail: JFenton@ocsd.com To MCSD: Midway City Sanitary District 14451 Cedarwood Avenue Westminster, CA 92683 Attention: Ken Robbins, General Manager Phone: (714) 593-3553 E-mail: krobbins@mcsandst.com Section 12: Jurisdiction. In the event of a dispute regarding performance or interpretation of this Agreement, the venue for any action to enforce or interpret this Agreement will lie in the Superior Court of California for Orange County. Section 13: Cooperation. The Parties shall cooperate with each other to achieve the purpose of this Agreement and shall execute such other and further documents and take such other and further actions as may be necessary or convenient to fulfill their obligations described herein. The Parties further agree to use all reasonable efforts to cause the fulfillment of the conditions to the Parties' obligations hereunder and to obtain as promptly as possible all 6 LEGAL02/39230612v8 approvals from each and every third party, whether private or governmental, required in connection with the Work contemplated by this Agreement. Section 14: No Third Party Beneficiaries. This Agreement is entered into by and for MCSD and OCSD, and nothing herein is intended to establish rights or interests in individuals or entities not a party hereto. Section 15: Force Ma'el ure. Except for the payment of money, neither Party will be liable for any delays or other non-performance resulting from circumstances or causes beyond its reasonable control, including without limitation, fire or other casualty, act of God, strike or labor dispute, war or other violence, acts of third parties, or any law, order, or requirement of any governmental agency or authority. Section 16: Governing Law. This Agreement will be governed by the laws of the State of California. Section 17: Entire Agreement. This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations and agreements between the Parties pertaining to the subject matter hereof. Section 18: Waiver. A waiver of a breach of the covenants, conditions, or obligations under this Agreement by either Party will not be construed as a waiver of any succeeding breach of the same or other covenants, conditions, or obligations of this Agreement. Section 19: Modification. Alteration, change, or modification of this Agreement will be in the form of a written amendment, which will be signed by both Parties. Section 20: Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement will continue in full force and effect. Section 21: Agreement Execution and Authorization. Each of the undersigned represents and warrants that he or she is duly authorized to execute and deliver this Agreement and that such execution is binding upon the entity on whose behalf he or she is executing this Agreement. Section 22: Counterparts Deemed Original: This Agreement may be executed in one or more counterparts (including by e-mail, other electronic transmission, and/or facsimile), all parties need not be signatories to the same documents, and all counterpart signed documents shall be deemed to be one and the same original instrument. [SIGNATURES ON THE NEXT PAGE] 7 LEGAL02/39230612v8 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the day and year first above written. ORANGE COUNTY SANITATION DISTRICT APPROVED AS TO FORM: By David Shawver Date Chairperson, Board of Directors By By Alston& Bird, LLP Kelly Lore Date Special Counsel, Clerk of the Board, Board of Directors Orange County Sanitation District MIDWAY CITY SANITARY DISTRICT APPROVED AS TO FORM: By Chi Charlie Nguyen, Date President, Board of Directors By By Rutan& Tucker LLP Secretary to the Board Date Special Counsel, Midway City Sanitary District 8 LEGAL02/39230612v8 EXHIBIT "A" Tentative Plans (See attached.) 9 LEGAL02/39230612v8 1 2 3 4 5 6 7 8 9 10 — - -- ---- — A 1�� ��� SEE SHEET C5003 FOR PARTIAL PLAN X —— U (E)SIPHON INLET STRUCTURE (KNT0275-0065) _ TH-66 Ir/ — — TH-65 / _ —.— __ IPJdOPLOUTLET BEGIN EXTENSION OF ———— 1+00 — "— STRUCTURE MCSD SOUTH FM — — � "� / —� -—-ffW0275-0060) N 2224450.40 E 6020327.97 ——— _ - — — 27. 2+00 � / rH-sa —� 2$:2 CONSTRUCTION NOTES TH-63 - 3+ - _ Y. —— ——— ">„8`P /� I 0� - 31 MCSD NORTH AND SOUTH FORCE MAIN oMM TRENCHING AND BEDDING PER DETAIL C-708 TH-67 —:_ -- ON SHEET C5202. E MCSD GRAVITY SEWER -- __ B 2 - - �, TH 68 • .. ——— / _—--- 4+00 CONNECT TO EXISTING MCSD FORCE MAIN. X T_ zo // � i' 33 NEW MCSD 15"GRAVITY SEWER TO CONNECT •--r. = ��� �\ — rM = (N)MCSD NEW MCSD MANHOLE TO EXISTING OCSD -- --" STRUCTURE - SIPHON OUTLET STRUCTURE.CONCRETE ` —— _ N 2224394 34 ENCASE PER MCSD STANDARD DETAIL S-018. /� 1�� PG C1 Q Q X -- / E 6020737b4 �7 "� �l / -I-" 34 AFTER CONSTRUCTION AND COMMISSIONING OF THE NEW SOUTH MCSD FORCE MAIN, ESTMINSTER' ———�.,_ °' — _ �"� n DEMOLISH EXISTING MCSD FORCE MAIN FROM BOUL �� POINT OF CONNECTION TO KNT0275-0065. L7 31 32 — —z ty,l ————w— I d — — c®� AFTER DEMOLITION ST EXISTING MCSD FORCE p C7 — w w —_—— C W MAINS COMPLETE INSTALLATION OF NORTH SEE SHEET C5003 FOR PARTIAL PLAN W OCFCD / — — _ _ MCSD FORCE MAINS.SEE SPECIFICATION 57(E)12"�Sb' -----�Z a UTTER w — w".�/ _ \ 02050 FOR ADDITIONAL INFORMATION. C �/ — Q W o — (E)SIPHON INLET 7 _ �. /. 31 W u- °. STRUCTURE 53 L2 wW O (KNT0275-0065) .-L �� I; _ 7/�w-- --(E)4"G� —�� 1 __ �y W w� 53 PROVIDE DUCTILE IRON FITTINGS WITH 36 1+00 �� / � — L3 O // �// (E)SIPHON OUTLET RESTRAINED JOINTS CONFORMING TO BEGIN EXTENSION OF w———— _ O IPH6 &-s—w ST CTURE -�MCSD SOUTH FM w —— —_ 31 L2 � jyY / ° I —-(K0275-0060) AWWA C110,CLASS 250 AND SECTION 02597. N 2224450.40 —°p""———— w — w— 57 31 L3 �YJ` r — E 6020327.97 �M_ c°MM——— ——— 87 57 DEMOLISH EXISTING MCSD MANHOLE AND 4 31 59 / INSTALL NEW MANHOLE. 3 — px 59 DEMOLISH INTERFERING PORTIONS OF 53 EXISTING 15-INCH ABANDONED MCSD FORCE Z / ---w--_ — MAIN. X (E)MCSD GRAVITY SEWER — — — `�T^+^_ ———°° ——— I 31 L4 4+00 Q MM -- MCSD NORTH FM-LINE TABLE —— — W _ —� /mmM / / NUMBER BEARING LENGTH —za- Q — -- l---w— /D (E)COM L5 33 L1 S36°51'21"E 5.7T (E)SE M` O — owu—— — `— — OCFCD GUTT R / FORC AI M -— `"+�—— _ — ^+—_ R/W L2 S81°51'07"E 248.77' CAUTION:HIGH VOLTAGE OVERHEAD POWER % (N)MCSD X LINES.CONTRACTOR SHALL USE EXTREME CURB \ —— `i (} FM _ �-- R/W (E)TEI, CT P• N 2224394.34 L3 N68008'53"E 9.86' z CAUTION WHEN WORKING NEAR OVERHEAD --/=STRUCTURE — POWER LINES. / ��,� `-" �Q.. O `--� OC E 6020737.54 U 'PLAN i /-o =ter ——— — La s82°orls"E 148.88' m OCF D RIGHT OF W Y 0 0 15"VC PIPE MCSD SOUTH FM-LINE TABLE 0 --v PVC DR14 PIPE C NCRET ENCA E 12" C DR1 PIPE BOTH FORCE NUMBER BEARING LENGTH M PICAL E OTH FC RCE M INS) CONCRETE ENCASE AT DEPTHS L1 S36°51'21"E 5.7T m LESS THAN 3-FT Ir A A A �� T�V� V� /V /V� / L2 S81°51'07"E 260.13' U L3 N68008'53"E 9,86' IE .23 m A TEL DU T EN ASED �- L4 S82°0T18"E 148.34' b DIA 12" ¢ SLOPE .00000 25 DI .16 - 2 MCSD GRAVITY SEWER-LINE TABLE DI .12" 0.0655 0 N SLOP 0.00 ST 02+6576 d , NUMBER BEARING LENGTH DIA 12" IE2.20 STA. 4+14.1 LS N47°13'56"E 20.59' SLOPE .00000 IE 25.0 rj SLO E 0.223 2 E 25.10 IE 75 Underground Service Alert a STA.0+05.7 n N IE23.CO E 23.00 811 IE 1 .8 ISTIN OCSD DIAL: E;F 23.00 ANHO E �z HORIZ.SCALE 1" =20' �U vmxw VERT. SCALE 1" =2' 0 20 40 co U N °x 00+00 00+50 01+00 01+50 02+00 PROFILE 02+50 03+00 03+50 04+00 04+50 SCALE:1 20' m DESIGNED BY: STAHL,PATRICK-07/19 QpoFessb o�t�sneer rry WESTMINSTER BOULEVARD DRAWN BY: KLUG,VICTORIA-07/19 FORCE MAIN REPLACEMENT 3-62 Stantec ORANGE COUNTY MIDWAY CITY SANITARY DISTRICT s`o w CHECKED BY: ATKINSON,JANET-07/19 m DRAWING NO. p Q o i LINE IS 21NCHES 1 ADDENDUM#1 10/19 PJS ' AT FULL SIZE I `�yTF cmn- oe23 ' 00 SANITATION DISTRICT FORCE MAINS EXTENSION C1023 MARK DESCRIPTION DATE APPR. (IF NOT 2"-SCALE ACCORDINGLY) CF CAS r THE EMI PLAN AND PROFILE o Qo 10-16-19 1 1 33 OF 83 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 1 10 1_ /— f —w — ss --- ——w d GSCLS)PH N INLET TRUCTURE - --w_ ss-- -- —(Ej ) — _ I 96SQS PHON BARB S I w J '� I l cow_ co ------------ _--- - DE O IS EX�I S I@n- — STMINSTERD --- MANHOLE B _ BLV O� c � — _ —o _ —— _I— — - - EXTENSION F R MCSD FORCE MAINS. SEE C1023 F R ADDITIONAL / OUTLET STR CTURE INFORMATIO / _—0 —com __ __w—I_ (KNT0275-00 0) Pete / 1' � o ✓ —CEDO — — — — PARTIAL PLAN SCALER—200 C1023 t CONSTRUCT NEW MANHOLE WITH CUT EXISTING PVC FORCE MAINS AND N:2224898.79 12'FORCE MAINS AND 15"GRAVITY SEWER PROTECT IN PLACE EXISTING MANHOLE, PROVIDE DUCTILE IRON FITTINGS WITH E:2224898.79 THROUGH WALLS GRAVITY SEWER,AND SIPHON BARRELS 6016382.42 RESTRAINED JOINTS CONFORMING TO EL ±2865 AWWA RESTRAINED CLASS 250 AND SECTION 02597 CONNECT PORTION OF NEW NORTH FORCE m EL.± . . 28.49 CONSTRUCT NEW MANHOLE PER MCSD STANDARD . MAIN TO END OF EXISTING NORTH FORCE MAIN DETAIL S-OSOA.SEE SHEET C5204. DEMOLISH EXISTING o D FORCE MAINS ti X CORE THROUGH SIDE WALL OF EXISTING OCSD NEW 12 DOWNSTREAM SIPHON STRUCTURE AND CONSTRUCT M In MCSD 2,_0„ 2'0" MCSD 15"GRAVITY SEWER THROUGH SIDE WALL.USE CL Fi FORCE WEEP RING TO SEAL CONNECTION THROUGH WALL. Q MAINS EL.±25.10 SLOPE-0.06557• a — +' EL.±23.75 5'-0° N:2224876.44 ' EXISTING SIPHON BARRELS E:6016369.18 y o 2'-O" 2'_0" TO BE MODIFIED AS A PART - OF THIS PROJECT.SEE SHEET N T 20.59 L.F.15"VCP GRAVITY SEWER C5010 THROUGH C5011. z E EL.±25.20 ::•� CONNECT PORTION OF NEW a SOUTH FORCE MAIN TO END OF EXISTING SOUTH FORCE MAIN U SECTION A KNro275-ooso ^. ,..:.,...�.....:'�<:.: :....: .•... : s . _.; PLAN 1 o SCALE:112"-1'-0' SCALE:1/2-V-0" a w _a ,y U vi N 6(O w F m TO �O o U N W wpm �X O om DESIGNED BY: STAHL,PATRICK-07/19 Qp,OFEssb o�t�sneer rry WESTMINSTER BOULEVARD DRAWN BY: KLUG,VICTORIA-07/19 �K r' °s FORCE MAIN REPLACEMENT 3-62 0 o CHECKED BY: CATHCART,JIM-07/19 eo.cezasa m ORANGE COUNTY DRAWING NO. 3 (1 Stantec a MIDWAY CITY SANITARY DISTRICT Q V i LINE IS 21NCHES o O 1 ADDENDUM NO.1 10/19 PJS AT FULL SIZE I w�F cmn. oP2`r s SANITATION DISTRICT FORCE MAINS EXTENSION C5003 MARK DESCRIPTION DATE APPR. (IF NOT 2"-SCALE ACCORDINGLY) �F CA h DETAILS 0 0 10.23-19 45 OF 83 1 2 3 1 4 5 6 7 8 9 10 EXISTING P.C.C.WITH#3 REBAR NOTES: LIMITS OF ROADWAY THICKNESS VARIES FROM 6"TO 13". 1. AS SHOWN ON SHEETS C1024 THROUGH C1029,CONTRACTOR SHALL GRIND 1.5-INCHES BELOW FINISH EXISTING A.C.PAVEMENT CONTRACTOR SHALL ASSUME DEPTH EXISTING A.C.PAVEMENT SURFACE AND REPAVE WITH MEDIUM GRADE ASPHALT CONCRETE OVER REINFORCING FABRIC.SEE THICKNESSVARIES 6`To 151, VARIES IMPROVEMENT SEE NOTE I VARIES IS 13'THROUGHOUT. THICKNESS VARIES 3-TO 9° VARIES VARIES 1."MIN.SEE NOT SPECIFICATION REPAVE 2550 WITHMOR MEDIUM REQUIREMENTS. EXISTING P.C.C.WITH#3 REBAR A EXISTING COMPACTED AGGREGATE BASE THICKNESS VARIES FROM 6"TO 13'. 2. SEE SPECIFICATION 02200 FOR ADDITIONAL INFORMATION REGARDING ACCEPTABLE PIPE ZONE, rii w THICKNESS VARIES FROM 4"TO 6" w NTRA SHALL ASSUME DEPTH TRENCH ZONE AND STREET ZONE MATERIALS w z I z .�� IS 113"THROUGHOUT. N 3. IF DURING CONSTRUCTION GROUNDWATER IS IN THE TRENCH,THE ENGINEER SHALL BE NOTIFIED,AND NEW ATRACTOR BHA L P OVIDE APPROPRIATE DEWATERING TO LOWER THE WATER LEVEL A MINIMUM OF C PAVEMENT PER SPECIFICATION 02550.SEE SHEET _ NEW AC PAVEMENT PER SPECIFICATION 02550 SEE SHEET 12-INCHES BELOW THE TRENCH BOTTOM.THE BACKFILL MATERIAL SHALL BE ACCORDING TO THE x x C1024 THROUGH C1029 FOR EXISTING AC DEPTH. C1024 THROUGH- 029 FOR NEW AND EXISTING AC DEPTH UW UW SECTION 02200 OF THE SPECIFICATIONS. z z - CONTRACTOR SHALL RESTORE FULL DEPTH PLUS 21NCHES z z COMPACTED SUB BASE PER SPECIFICATION wo ¢ON (MINIMUM 101NCHES). 02200.MINIMUM 95%RELATIVE COMPACTION. ~ COMPACTED SUB BASE PER SPECIFICATION 4. CONTRACTOR SHALL PROVIDE DETECTABLE WARNING TAPE PER SECTION 02200 OF THE 02200.MINIMUM 95%RELATIVE COMPACTION. UNDISTURBED NATIVE SOIL SPECIFICATIONS. 12"MIN 5. SHORING DESIGN SHALL BE PROVIDED BY THE CONTRACTOR. UNDISTURBED NATIVE SOIL w SEE NOTE 4(TYP) w SEE NOTE 4 O as a0 12"MIN TRENCH BOTTOM RENCH BOTTOM B T f 2 FT 12"MIN F SHAP 12"MIN 12"MINING TO FIT PIPE SHAPE BEDDING TO FIT PIPE UNDISTURBED NATIVE SOIL TRENCH SECTION-CITY OF SEAL BEACH TRENCH SECTION-CITY OF WESTMINSTER TRENCH SECTION c-601 FLEXIBLE PIPE 10"DIA x1/4'PL STEEL HDPE FLANGED VENT HEAD 8 MESH(.035 WIRE)SS WITH SKIRT PIPE EXISTING 42-INCH PRESSURE CLASS 200 WIRE CLOTH TIED DUCTILE W IRON FORCE MAIN. 4X4-W1.4 X W1.4 WF TO RISER WITH 3/4" 1/2"STAINLESS STEEL BOLT OUTSIDE DIAMETER=APPROX.44.50-INCHES WIDE SS BAND CLAMP PLACE HEAD OUTSIDE AND INSIDE DIAMETER=APROX,43.50-INCHES TACK WELD TO STEEL COUPLING TACK WELD HEAD AND NUT ' m TO DISHED HEAD PER SEC NEW HDPE PIPE G ° 36-INCH DR 17 HDPE FORCE MAIN PER SECTION 025140E PER SECTION 02649. FIELD APPLIED C �_ N g w a sPEC1FICATIONS. CEMENT MORTAR M a w w F GROUTANNULAR SPACE 1L N ° PER SECTION 02514. _ 4 5"STD STEEL COUPLING q AND MALLEABLE IRON PLUG m 3/16" 2" 4'-2"xi/4"BRACKETS a a (TYP) t EQUALLY SPACED AWWA C207 CLASS D 36"STEEL CML&C WELDED 8-INCH CML&EPDXY COATED RING HDPE TO CLASS D AWWA STEEL PIPE 4, STEEL VENT LINE STEEL RING FLANGE MIN) i FINISHED GRADED O Q d NOTES: "3(-:- )E NUFACTURER. 1. DRILL THE 36"DIAMETER WELDED STEEL PIPE PIPE FLANGE TO MATCH HDPE FLANGE OPENING. LOW FRICTION SPACERS AS 8-INCH CML&C VENT PIPE RISER 2. BOLTS SHALL BE PER SPECIFICATION SECTION 02649 AND BE SUFFICIENT LENGTH TO RECOMMENDED BY MA p STOP EXTERIOR MORTAR ACCOMMODATE 2 NUTS AT EACH END. CONTRACTOR SHALL MAINTAIN NOTES: COATING 6"ABOVE GRADE 3. DRILL 36"DIAMETER WSP FLANGE FOR HDPE PIPE TO ACCOMMODATE INSETTING OF HDPE PIPE. MINIMUM 2-INCHES ANNULAR SPACE AROUND PERIMETER OF HDPE PIPE, 1.VENT HEAD ASSEMBLY TO BE GALVANIZED AFTER FABRICATION. STEEL TO HDPE CONNECTION DETAIL HANDHOLE FOR WSP iU2 SLIPLINING CROSS SECTION _ VENTILATION PIPE RISER c-7oa REV 110112 C-603 NTS TEMPORARY CONNECTION TO EXISTING TECHITE PIPE.CONTRACTOR CONTRACTOR SHALL PROVIDE TEMPORARY PLUG AS PAVEMENT RESTORATION PER DETAIL C-601 SHALL FIELD VERIFY OUTSIDE DIAMETER OF EXISTING TECHITE PIPE. NECESSARY DURING INSTALLATION OF NORTH FORCE CONNECTION SHALL BE SLEEVE TYPE DRESSER COUPLING OR EQUAL MAIN HDPE FLANGE TEMPORARY 30"DR17 HDPE FORCE MAIN EXISTING INVERTED SIPHON STRUCTURE KNT0275-0065. ADAPTOR TEMPORARY 36"X30"HDPE REDUCER MIN PROTECT IN PLACE DURING THIS PHASE OF WORK. 3"AIR VENT E _ 12" WITH VALVE 36"DR 17 NORTH FORCE MAIN. SEE PLAN AND PROFILES EXISTING 27-INCH VCP %J`?�.�;',''`�."�:,.;::%•' - - INVERTED SIPHON.PROTECT IN o CONCRETE ENCASEMENT PER DETAIL S-171 6"DRAIN WITH 250 N DEMOLISH EXISTING 15-INCH •w�-`:�,' PLACE � VCP ABANDONED MCSD LB VALVE FORCE MAIN CONSTRUCT NEW 12-INCH MCSD FORCE MAINS BOLT DIA PER AWWA PLACE 2 LAYERS OF 50-LB FABRIC ABOVE EXISTING C207 CLASS D FLANGE OCFCD CHANNEL 0 w FLANGE BACKING RING o EXISTING OCFD CHANNEL.PROTECT IN PLACE AWWA C207 CLASS D DUCTILE �j IRON BLIND FLANGE w+ EXISTING SHELF n19 4, d `° EXISTIGN 42-INCH DUCTILE IRON FORCE MAIN. w¢F ° CONTRACTOR SHALL PROTECT IN PLACE DURING =o CONSTRUCTION OF NORTH FORCE MAIN HDPE TESTING DETAIL NTS MCSD TRENCH STATION TEMPORARY NORTH FORCE MAIN CONNECTION w - - �x NTS �E DESIGNEDBY: STAHL,PATRICK-07/19 QpoFEssb o�t1 sneer rry WESTMINSTER BOULEVARD tDRAWN BY: GONZALEZ,MAURICIO-07/19 oP�K r' °s FORCE MAIN REPLACEMENT 5-62 o N CHECKED BY: CATHCART,JIM-07/19 m p - ORANGE COUNTY DRAWING NO. Stantec CIVIL Q i LINE IS 21NCHES * e.p. '''�-20 AT FULL SIZE NT 23 �� �° SANITATION DISTRICT STANDARD DETAILS - 2 C5202 IFB SET 9/19 PJS qT cM0. 0 e s 0o MARK DESCRIPTION DATE APPR. (IF NOT 2"-SCALE ACCORDINGLY) FOF OA"o EEa` 9-3-19 54 OF 83 1 2 3 4 5 6 7 8 9 10 UNDISTURBED SOIL TRENCH VARIABLE DEPENDING WID?H SOLI NCONOITSIONS AND rrI2'MIN. CONCRETE I (wp�) 6'MIN, ENCASEMENT 16""IN12-INCH MCSD FORCE MAINS(TYPICAL OF 2 (TY ) 15-INCH VCP SEWER A Y 4 BARS t T I QF' NI,1, LONG.(TYP.) 1 1 e 0' SEE NOTE 11 6"MIN 5 La•MIN SEE NOTE 9 SEE NOTE 1 T \�s-MIt. 0 UNDISTURBED SOIL SEE NOTE 10 TYPE "A" TYPE "B" ALTERNATE TRENCH SEE NOTE 3 NOTES: WALL SEE NOTE 5 qp` SEE NOTE 7 P' 11 1. FRAME AND COVER PER DRAWING NO.S-054-A. / 2-1'JOINTS CE SEE NOTE 10 SEE NOTE 12 CONCRETE (APPLICABLE TO V.C.P.ONLY) SEE NOTE 4 2. MANHOLES 72"AND LARGER SHALL HAVE CLASS"A"CONCRETE BASES W/#6 @ 12"E.W. ENCASEMEN / _Qc` 3. INSTALL NON-SKID SURFACE ON COMPLETE MANHOLE SHELF,BOTH SIDES OF MAIN CHANNEL PER THE 6"MIN / �/VARIES SEE NOTE 6 STANDARD SPECIFICATIONS. B SEE NOTE 8 --sti--s 4. PREFORMED CORNER WELD STRIP TO BE INSTALLED. T7 — ——I — 5. COMPLETE CONCRETE CHANNEL SHALL BE CONSTRUCTED WITH FORMS AND PVC LINED,WHERE PVC LINED RCP IS USED,THE CHANNEL LINING IS TO BE INSTALLED TO THE SAME DEPTH AS THE RCP LINING. --zr--Z 1 6. SIDES OF BASE TO BE EITHER FORMED OR POURED NEAT AGAINST UNDISTURBED EARTH.BASE MAYBE MIN.OETERMINED 6'MIN.J SEE NOTE 2 EITHER CIRCULAR OR RECTANGULAR. -TYPE C" BY PIPE SIZE SECTION 7. MANHOLE SHELVES TO BE SLOPED I"PER FT.TO CHANNEL. BEDDING-3/4"CRUSHED ROCK NOTES: 8. 2 WRAPS OF RAM NECK OR APPROVED EQUAL SEALANT.THE SEAL STRIPS SHALL BE PLACED ON 1.CONCRETE ENCASEMENT SHALL BE USED WHEN COVER IS UNDER 4'OR OVER 20'. SHOULDER OF GROOVE.STEPS ARE NOT ALLOWED IN ANY MANHOLE. 2.ENCASEMENT TO BE PLACED AGAINST UNDISTURBED NATURAL GROUND OR FILL coMPAcrEo TO 90x RELATIVE DENSITY. SEE NOTE 5 9. PIPE ABOVE SPRING LINE TO BE REMOVED BY SAW CUTTING,REMOVED SECTION SHALL BE THE 3.N0.4 STEEL REINFORCING BARS SHALL BE USED AS SPECIFIED, LU MANHOLE SHAFT DIAMETER. 4.TYPE OF CONCRETE ENCASEMENT TO BE USED WILL BE SHOWN ON PLANS OR AS SPECIFIED BY DISTRICT REPRESENTATIVE TO MEET UNFORSEEN FIELD z 10, 5-FT DIAMETER MANHOLE. CONDITIONS.UNLESS NOTED OTHERWISE,ENCASEMENT SHALL BE CLASS"B"CONCRETE. — 5.WHERE SLOPED TRENCHES ARE USED.WALLS WILL NOT BEGIN TO SLOPE CLOSER r 11, 5-FT DIAMETER TRAFFIC RATED MANHOLE COVER. THAN 12"FROM THE TOP OF THE PIPE. z "'wisTuws*ea,cµiFoxnwl`T 12 VERIFI'EX ST NGOSURFACE ELE RISER ILEVATION PROR TO CONSTRNG PER MANUFACTURE OUCTIONDATION.CONTRACTOR SHALL FIELD CONCRETE ENCASEMENT1�91 TYPE A, B, & C MCSD MANHOLE S-050A 3/8 a 2 1/2 DIAMOND TREAD PATERN TYPE 316 S.S.HEX BOLT W/WASHERS 3'LETTERS(TYP.) A A e 4 q D 4C S� ALIGNMENT MARK ON FRAME AND LID (2)C.I.UFT POCKET (SEE DETAIL) 27 1/2 (4) 1-DIA HOOK HOLES O 90 1 26 1 4"FRAME PAN OR 3-1'DIA,HOOK HOLES O 120 LF STAC ING LUG(3)O 12V APART.(OPTIONAL) 2" 1/2. E SECTION A-A 1 1 376 S.S.HE%.BOLTS w/WASHERS(4) 1' (OPTIONAL) MACHINE GROOVE IN LID ti _ SEAT FOR 1/4"DIA i.• CONTINUOUS 1/2' POLTISOPRENE GASKET F-5FAL DETAIL C.I. IFT PO K T D TAI NOTE: 1.COVERS SHALL BE TRAFFIC GRADE. ALL CASTINGS SHALL BE COMPLETELY PAINTED WITH 6 MILS."COAL TAR EPDXY'OR ASPHALT 0C EMULSION,AND LETTERED"MADE IN COUNTRY OF ORGIN',MARKED WITH MANUFACTURER'S m IDENTIFICATION'HEAT NO._—"."ASTM A-48",AND'CLASS 35B IRON"ON UNDERSIDE OF —0 COVER WEIGHT OF COVER SHALL BE 300 LES.MIN!,WEIGHT OF FRAME SHALL BE 275 LES.MIN.^ 'ACTUAL WEIGHTS SHALL BE BETWEEN 95-1103 MINIMUM. 2.BOLTED COVERS SHALL BE INSTALLED AT ALL INTERSECTIONS, cA swrtAKr o NA N° N o F KI" "'x"� "°""" BOLTED MANHOLE sTermaRo mxc. 0 FRAME AND COVER 5-054A ci om U N ' W cep¢ �X 2 O o m DESIGNED BY: STAHL,PATRICK-07/19 Qp,OFEssb o�t1 sANIr rry WESTMINSTER BOULEVARD DRAWN BY: KLUG,VICTORIA-07/19 "�K J r' °s FORCE MAIN REPLACEMENT 5-62 0 o CHECKED BY: CATHCART,J IM-07/19 No.cszasa m ORANGE COUNTY DRAWING NO. 3 Stantec ° MIDWAY CITY SANITARY DISTRICT Q V I LINE IS1NCHES * EVR. aa1-p o� 1 ADDENDUM N0.1 10/19 PJS I AT FU2LL SIZE I wfF Om1L OQ23 �� SANITATION DISTRICT CIVIL STANDARD DETAILS C5204 0' MARK DESCRIPTION DATE APPR. (IF NOT 2"-SCALE ACCORDINGLY) OF 0 10-23-19 56 OF 83 1 2 3 4 5 1 6 7 8 9 10 A WALL STRAIGHT WALL WALL VERT WALL BARS BAR TO LAP SHORT STRAIGHT BARS VERT WALL BARS ° DOWELS ALL 3 AND DOWELS IN THE BARS IN THE A SAME PLANE PARALLEL SAME PLANE DIRECT LAP SECTION A-A g 0 0„ STOP ALTERNATE BARS g 0" TO WALL FACE 0" PARALLOg TO WALE FACE A FLOOR SLAB 0" FLOOR SLAB ° DOUBLE-FLARE 3/4"(MAX)V-GROOVE WELD B R OR L STRAIG LAP S RAIGHT 3'CUR LAP B 2 BARS BARS BARS ALL BOTTOM BARS INDIRECT BUTT SPLICE IN THE SAME WHEN BAR HOOK S=BAR SPACING • • • :J OR j HORIZONTAL PLANE ISNOTSPECIFIED AS NOTED ON DWGS EXP JT TPROVIDE STD 90° INTERSECTING WALL BAR HOOK,SEE 5-143OR SLAB SECTION B-B SECTION B-B SECTION B-BSLAB T T T=S/2 OR41/2" B DOUBLE-FLARE FLARE-BEVEL DOUBLE-FLARE WALL WHICHEVER BEVEL-GROOVE WELD GROOVE WELD V-GROOVE WELD IS LESS(TYP) USING A PLATE USING AN ANGLE USING TWO BARS WALL OR SLAB DETAIL WELDED SPLICES FOR STANDARD FOR REINFORC�RG HEIWUHUING BARS REV 110112 S-146 •SEE DRAWINGS(#6ANDSMALLER) BAR DETAILING A TOOLED EDGES FORM TO BE BEVELED AS SHOWN fE SYMMETRICAL ABOUT AT ALL PLACES WHERE HORIZONTAL PIPE WALL PIPE WALL AND VERTICAL SURFACES INTERSECT C FLANGE FLANGE AND BOTH SURFACES ARE IN THE SAME POUR SEE NOTE 1 TOOLED EDGES WATERSTOP i (ALL EXPOSED CORNERS) S CONST WATERSTOP J ___ ____i SLAB JOINT REINFORCEMENT(TYP) REINFORCEMENT (TYP) p p __---- _ 'SLAB' . NZ _ • •> • c r r r 3/4"CHAMFER 2 (ALL EXTERIOR w FILLETS I FORMED CORNERS) m• NOT REQUIRED 4 1 BOTTOM SLAB REINFORCEMENT(TYP) T/2 Z 12"OR AS SHOWN PIPE OD ON DRAWINGS 0. D ti - SECTION SECTION THRU PIPE A SECTION NOTES: 1.SET PIPE INVERT FLUSH WITH SLAB FOOTING AT WALL PIPE FORMING DETAILS 2. DETAIL IS SIMILAR FOR RCP CONNECTION REV 110112 S 150 REV 110112 S-152 AASHTO�-20 LOADIING\G NOTES: id[!\ AA O H-20 LOADING • PIPE OUTSIDE DIAMETER _ ,\> //\ .WHERE ENCASEMENT PASSES UNDER SPREAD FOOTING OR MAT E COVER 36" FOUNDATION,USE H=20'UNO ATIES C[ ° A T STRUCTURE 2'MIN #4@9" 8" ^. 2.ALL ENCASEMENTS UNDER STRUCTURES SHALL BE SEPARATED FROM > U FOOTING 3' #4@72" A ATIES THE STRUCTURE FOUNDATIONS BY BACKFILL OR 2 LAYERS OF 40# ^� FELT UNO • • >e • n • A -b 4' • •' •° o 5' 3. WHEN ENCASEMENTS TERMINATE @ STRUCTURE,ENCASEMENT • • • • •' REINFORCING SHALL BE DOWELED INTO THE STRUCTURE > 1 ENCASEMENT UNDER 6 ¢v z • 1�,' T #4@12" z 4. CONTINUE ENCASEMENT ALONG VERTICAL RUNS OF PIPE, STRUCTURE a O N O 8' #4@9" `3 F w UNO FOR T=12"TO 16"ENCASEMENTS,PROVIDE 2 MATS OF REINF #4 CONT ON ALL FOUR SIDES OF ENCASEMENT.EXTEND VERT REINF FULL DEPTH O D 9' #4@9" 8" @+/-24"OC O m INTO 10, #4@9" 8" 4 BARS MIN HORIZ ENCASEMENT AND TERMINATE BARS WITH STD HOOKS. g w • o CL PIPE 12' #4@12" 12" OPTIONAL CJ p — — — 14' #4@72" • ^ • ^ • #5 @ 12"OC • •• Cr 16' #4@72" A A A OPTIONAL CJ FOR T=12"OR 14" U 5; # FORT=16" s s m 20' 4@s^ " T T/2 14 • • • • • w END OF CONCRETE ENCASEMENT 4 BARS MIN • > : • • pw F (UNLESS OTHERWISE NOTED ON ALL AR UND) o THE DRAWINGS) T J�P gLLEND OF ENCASEMENT BEYOND STRUCTURE T=6"OR 8"ENCASEMENT PIPE ENCASEMENT PALLAROUN ) (YP SIDES w S-171 � REV110112 X T=12"-16"ENCASEMENT m m DESIGNED BY: LIN,SIMON-03/03/2019 t+saw ty r� WESTMINSTER BOULEVARD t m DRAWN BY: NGUYEN,TRI-03/03/2019 / �S soS�`�µ ORANGE COUNTY 3-62 FORCE MAIN REPLACEMENT oN CHECKED BY: TRIEBEL,GEORGE-03/03/2019 NpS5911 Stantec ¢ GENERAL STRUCTURAL DRAWING NO. m LINE IS2INCHES SANITATION DISTRICT DETAILS - II S5006 O N 9/19 PJS r AT FULL SIZE T '?•� 91/�TUf° J' CCU e7 IFB SET P* MARK DESCRIPTION DATE APPR. (IF NOT 2"-SCALE ACCORDINGLY) 4 6A11 a E�` 0 0 osnsns 79 OF 83 oJ�1V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 OPERATIONS COMMITTEE (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-913 Agenda Date: 2/26/2020 Agenda Item No: 7. FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: PLANT NO. 2 DEWATERING CENTRIFUGE SPARE ROTATING ASSEMBLY AND GEARBOX GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Sole Source Purchase Order contract for the procurement of one spare rotating assembly and gearbox for the Alfa Laval Centrifuges, Model ALDEC G3-125, for an amount not to exceed $435,756, plus applicable sales tax and shipping; and B. Approve a contingency of $43,576 (10%). BACKGROUND Five Alfa Laval, Model ALDEC G3-125, dewatering centrifuges were installed at Plant No. 2 by Project No. P2-92. These units replaced the Belt Filter Press systems with newer dewatering technology using centrifuges, which have reduced biosolids disposal costs and improved process efficiencies by concentrating digested sludge to thicker biosolids cake. RELEVANT STANDARDS • Safe, beneficial reuse of Biosolids • Maintain a proactive asset management program • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PROBLEM There are five dewatering centrifuge units that are independent stand-alone trains. The centrifuge systems are subject to wear and tear dewatering gritty biosolids. The rotating assemblies have 32- week lead times to fabricate and replace. This results in significant potential down-time risk for these critical solids treatment process trains. No spare rotating assemblies were procured as part of the project. Orange County Sanitation District Page 1 of 2 Printed on 2/20/2020 powered by LegistarTM File #: 2020-913 Agenda Date: 2/26/2020 Agenda Item No: 7. PROPOSED SOLUTION Approve the purchase of one spare rotating assembly and gearbox for the Alfa Laval dewatering centrifuges at Plant No. 2. The procurement will result in a readily available spare for any of the five dewatering centrifuges at Plant No. 2. TIMING CONCERNS Critical Solids Dewatering equipment may potentially be unavailable for an extended period of time. RAMIFICATIONS OF NOT TAKING ACTION Failure to act increases the risk of reduced dewatering capacity and the inability to process solids and maintain permit compliance. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Orange County Sanitation District's Purchasing Ordinance. This recommendation will be funded under the Repairs and Maintenance line item for Operations and Maintenance Department (Budget Update Fiscal Year 2019-20, Page 47), and the available funding is sufficient for this action. Date of Approval Contract Amount Contingency 02/26/2020 $435,756 $43,576 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Orange County Sanitation District Page 2 of 2 Printed on 2/20/2020 powered by LegistarTM oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 OPERATIONS COMMITTEE (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-914 Agenda Date: 2/26/2020 Agenda Item No: 8. FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: ON CALL PLANT NO. 1 & PLANT NO. 2 MEDIUM VOLTAGE CABLE TESTING SERVICES (MP- 320) GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a three-year service contract with Halco Service Corp. for assessment and testing of Plant No.1 and Plant No. 2 medium voltage cables per Specification No. S-2019-1107BD, for a total amount not to exceed $491,655; and B. Approve a contingency of $73,748 (15%). BACKGROUND The Orange County Sanitation District (Sanitation District) maintains large electrical distribution systems at the treatment plants utilizing medium voltage cables. The Plant No.1 and Plant No. 2 electrical distribution systems utilize redundant 12,470 volt feeds from a Southern California Edison utility substation and the Central Generation facilities. The distribution systems supply power to multiple Power Buildings and Electrical Distribution Centers; some of which have diesel standby generators. This system also contains a mix of medium voltage vacuum circuit breakers, protective relays, load interrupter switches, and fuse protection. Performing condition-based assessments and testing of critical medium voltage feeder circuits will reduce the risk of unexpected cable failures, improve cable system reliability, and identify needed repairs or replacement of medium voltage feeder cables. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • 24/7/365 treatment plant reliability • Maintain a proactive asset management program Orange County Sanitation District Page 1 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-914 Agenda Date: 2/26/2020 Agenda Item No: 8. PROBLEM The Sanitation District does not possess the necessary equipment or expertise to perform comprehensive medium voltage cable testing. Medium voltage cable testing is recommended to identify cables that are at risk of failure. PROPOSED SOLUTION The Sanitation District recommends contracting with Halco Services Corp. as the lowest responsive and responsible bidder for on-call services to perform medium voltage feeder cable testing and assessments of Plant No.1 and Plant No. 2 medium voltage cables. TIMING CONCERNS Proceeding in a timely manner is desired to identify compromised or failing medium voltage feeder cables and prevent catastrophic failures to electrical distribution systems resulting in operational delays and to sustain a safe working environment during an emergency. RAMIFICATIONS OF NOT TAKING ACTION The inability to manage and predict cable service life could result in unpredictable forced outages. Forced outages interrupt and debilitate operational processes and increase safety risks in tunnels and vaults. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District received two sealed bids on December 23, 2019. The bids were evaluated in accordance with the Sanitation District's policies and procedures. Staff recommends awarding the service contract to the lowest, responsive, and responsible bidder, Halco Service Corp. Summary information on the bid opening is as follows: Bidder Amount of Bid Halco Service Corp $491,655 Hampton Tedder Technical Services $1,235,000 A contingency of 15% is recommended due to unforeseeable delays or operational issues resulting from complex outages impacting large process areas. CEQA N/A Orange County Sanitation District Page 2 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-914 Agenda Date: 2/26/2020 Agenda Item No: 8. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This recommendation will be funded under the Repair and Maintenance line item for Operations and Maintenance Department (Budget Update Fiscal Year 2019-20, Page 47). The available funding is sufficient for this action. Date of Approval Contract Amount Contingency 02/26/2020 $491,655 $73,748 (15%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Service Contract for S-2019-1107BD RM:iq:ab Orange County Sanitation District Page 3 of 3 Printed on 2/20/2020 powered by LegistarTM SERVICE CONTRACT ON-CALL P1 & P2 MEDIUM VOLTAGE CABLE TESTING SERVICES (MP-320) Specification No. S-2019-1107BD THIS CONTRACT is made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708 (hereinafter referred to as "OCSD") and Halco Service Corp with a principal place of business at 5773 Venice, Los Angeles, CA 90019 (hereinafter referred to as "Contractor") collectively referred to as the "Parties". WITNESSETH WHEREAS, OCSD desires to temporarily retain the services of Contractor for On-Call P1 & P2 Medium Voltage Cable Testing Services "Services" as described in Exhibit "A"; and WHEREAS, OCSD has chosen Contractor to conduct Services in accordance with Ordinance No. OCSD-52; and WHEREAS, on February 26, 2020, the Board of Directors of OCSD, by minute order, authorized execution of this Contract between OCSD and Contractor; and WHEREAS, Contractor is qualified by virtue of experience, training, and expertise to accomplish such Services, NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and the Contractor. The terms and conditions herein exclusively govern the purchase of Services as described in Exhibit "A". 1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibit "A" Scope of Work (including all Appendices) as Modified by Addendum No.1 of the Notice Inviting Bids) Exhibit "B" Bid Exhibit "C" Acknowledgement of Insurance Requirements Exhibit "D" OCSD Safety Standards Exhibit "E" Human Resources Policies Exhibit "F" Not Used 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. 1.5 The various headings in this Contract are inserted for convenience only and shall not affect Orange County Sanitation District 1 of 9 Specification No. S-2019-1107BD Version 080919 the meaning or interpretation of this Contract or any paragraph or provision hereof. 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.8 The term "hours", when used in this Contract, shall be as defined in Exhibit "A". 1.9 Contractor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under"Compensation" below. 1.10 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OCSD. 2. Compensation Compensation to be paid by OCSD to Contractor for the Services provided under this Contract shall be a total amount not exceed four hundred ninety one thousand six hundred fifty five Dollars ($491,655.00). 3. California Department of Industrial Relations(DIR) Registration and Record of Wages 3.1 To the extent Contractor's employees and/or its subcontractors who will perform Work during the design and preconstruction phases of a construction contract or perform work under a maintenance contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 et seq, Contractor and its subcontractors shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. 3.2 The Contractor and its subcontractors shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non- compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. 3.3 Pursuant to Labor Code Section 1776, the Contractor and its subcontractors shall furnish a copy of all certified payroll records to OCSD and/or general public upon request, provided the public request is made through OCSD, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement of the Department of Industrial Relations. 3.4 The Contractor and its subcontractors shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 4. Payments and Invoicin_g 4.1 OCSD shall pay, net thirty (30) days, upon receipt and approval, by OCSD's Project Manager or designee, of itemized invoices submitted for Milestones completed in accordance with Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether the Milestones have been satisfactorily completed. Orange County Sanitation District 2 of 9 Specification No. S-2019-1107BD Version 080919 4.2 Invoices shall be emailed by Contractor to OCSD Accounts Payable at APStaff(@-OCSQ.com and "INVOICE" with the Purchase Order Number and Specification No. S-2019-1107BD shall be referenced in the subject line. 5. Audit Rights Contractor agrees that, during the term of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. 6. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibit"A". Contractor shall perform said Services in accordance with generally accepted industry and professional standards. 7. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. 8. Contract Term The Services provided under this Contract shall be completed within three (3) years from the effective date of the Notice to Proceed. 9. Renewals— NOT USED. 10. Extensions The term of this Contract may be extended only by written instrument signed by both Parties. 11. Performance Time is of the essence in the performance of the provisions hereof. 12. Termination 12.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Contractor for work performed (cost and fee)to the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination. 12.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination that Contractor is not complying with the Scope of Work requirements, if the level of service is inadequate, or any other default of this Contract. 12.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor: ■ if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or ■ if Contractor sells its business; or ■ if Contractor breaches any of the terms of this Contract; or ■ if total amount of compensation exceeds the amount authorized under this Contract. 12.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Contract, whichever occurs first. Orange County Sanitation District 3 of 9 Specification No. S-2019-1107BD Version 080919 13. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "C"). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. 14. Bonds - NOT USED 15. Indemnification and Hold Harmless Provision Contractor shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Contractor's services under this Contract, or by its subcontractor(s) or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Except as to the sole active negligence of or willful misconduct of OCSD, Contractor shall indemnify, protect, defend and hold harmless OCSD, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Contractor's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor of or anyone employed by or working under Contractor. To the maximum extent permitted by law, Contractor's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Contractor agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. 16. OCSD Safety Standards OCSD requires Contractor and its subcontractor(s)to follow and ensure their employees follow all Federal, State, and local regulations as well as OCSD Safety Standards while working at OCSD locations. If during the course of the Contract it is discovered that OCSD Safety Standards do not comply with Federal, State, or local regulations, then the Contractor is required to follow the most stringent regulatory requirement at no additional cost to OCSD. Contractor and all of its employees and subcontractors, shall adhere to all applicable OCSD Safety Standards attached hereto in Exhibit "D" and the Human Resources Policies in Exhibit "E". 17. Warranties In addition to the warranties stated in Exhibit "A", the following shall apply: 17.1 Manufacturer's standard warranty shall apply. All manufacturer warranties shall commence on the date of acceptance by the OCSD Project Manager or designee of the work as complete. 17.2 Contractor's Warranty (Guarantee): If within a one (1) year period of completion of all work as specified in Exhibit "A", OCSD informs Contractor that any portion of the Services provided fails to meet the standards required under this Contract, Contractor shall, within Orange County Sanitation District 4 of 9 Specification No. S-2019-1107BD Version 080919 the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Contractor's sole expense. 18. Liquidated Damages - NOT USED 19. Force Maieure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract. 20. Frei_ght (F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 21. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; 2)it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Contractor's risk, until written instructions are received from OCSD. 22. Re_gulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 23. Environmental Compliance Contractor shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the Contractor, its subcontractors, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations. 24. Licenses, Permits, Ordinances and Regulations Contractor represents and warrants to OCSD that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to the work performed under the terms of this Contract will be paid by Contractor. 25. Applicable Laws and Regulations Contractor shall comply with all applicable Federal, State, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. 26. Contractor's Employees Compensation 26.1 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 Orange County Sanitation District 5 of 9 Specification No. S-2019-1107BD Version 080919 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. 26.2 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 same are on file in the Engineering Department. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each project site, which shall be made available to any interested party upon request. 26.3 Forfeiture For Violation—Contractor shall, as a penalty to OCSD, forfeit fifty dollars ($50.00) 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. 26.4 Apprentices—Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the Contractor shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty(20)working days or more; or if contracts of specialty contractors not bidding for work through the general or prime Contractor are two thousand dollars ($2,000.00) or more or five (5) working days or more. 26.5 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 it hereunder. Contractor shall conform to Article 3, Chapter 1, Part 7 (Section 1810 et seq.) of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of twenty-five dollars ($25.00)for each worker employed in the execution of this Contract by 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 (1) calendar day and forty (40) hours in any one (1) 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. 26.6 Record of Wages; Inspection — Contractor agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the project and agrees to require that each of its subcontractors do the same. All payroll records shall be certified as accurate by the applicable Contractor or subcontractor or its agent having authority over such matters. Contractor further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. Penalties for non-compliance with the requirements of Section 1776 may be deducted from project payments per the requirements of Section 1776. Orange County Sanitation District 6 of 9 Specification No. S-2019-1107BD Version 080919 27. South Coast Air Quality Management District's (SCAQMD) Requirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 28. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange, in the event any action is brought in connection with this Contract or the performance thereof. 29. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD's rights to seek remedies available to it for any subsequent breach. 30. Remedies In addition to other remedies available in law or equity, if the Contractor fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover" by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to "cover" as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the Contract price, together with any incidental or consequential damages. 31. Dispute Resolution 31.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 31.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two (2)arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 32. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Orange County Sanitation District 7 of 9 Specification No. S-2019-1107BD Version 080919 33. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and Forum for Enforcement, shall survive termination or expiration of this Contract. 34. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 35. Damage to OCSD's Property Any of OCSD's property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD. 36. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD. 37. Independent Contractor The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Contractor an OCSD employee. During the performance of this Contract, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act as OCSD's officers, employees, or agents. Contractor and its officers, employees, and agents shall obtain no rights to any benefits which accrue to OCSD's employees. 38. Limitations upon Subcontracting and Assignment Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 39. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor. 40. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to Contractor, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Contractor or to its successor, or for breach of any obligation for the terms of this Contract. 41. Read and Understood By signing this Contract, Contractor represents that he has read and understood the terms and conditions of the Contract. 42. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 43. Entire Contract This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. 44. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Rejection or other refusal to accept Orange County Sanitation District 8 of 9 Specification No. S-2019-1107BD Version 080919 or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OCSD: Darius Ghazi Senior Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Contractor: Lucero Soriano Halco Service Corp 5773 Venice Los Angeles, CA 90019 Each party shall provide the other party written notice of any change in address as soon as practicable. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: David John Shawver Chair, Board of Directors Dated: By: Kelly A. Lore Clerk of the Board Dated: By: Ruth Zintzun Purchasing and Contracts Manager COMPANY Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 9 of 9 Specification No. S-2019-1107BD Version 080919 oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 OPERATIONS COMMITTEE (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-915 Agenda Date: 2/26/2020 Agenda Item No: 9. FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: COOPERATIVE PROCUREMENT WITH W.W. GRAINGER GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve a Blanket Purchase Order with W.W. Grainger, Inc. for the purchase of maintenance tools and supplies, in accordance with Ordinance No. OCSD-52, Section 2.03(B): Cooperative Procurement; for the period beginning March 1, 2020 through February 28, 2021, with two one-year renewal options, for a total amount not to exceed $275,000 per year. BACKGROUND In order to properly maintain and repair Orange County Sanitation District (Sanitation District) facilities, the Operations and Maintenance Department requires miscellaneous parts and supplies which may be one-time purchases, or purchased infrequently such that it is not appropriate to stock them in the Sanitation District's warehouse. RELEVANT STANDARDS • Participate in local, state, and national cooperative purchasing programs • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PROBLEM The current Blanket Purchase Order with W.W. Grainger, Inc. (Grainger) expires February 29, 2020. Without this agreement in place, procurement of parts and supplies necessary for day-to-day repairs could be delayed and could result in higher individual procurement costs. PROPOSED SOLUTION Approve a Blanket Purchase Order with Grainger thereby allowing quick procurement and stable pricing of necessary small tools and equipment for day to day repairs. Orange County Sanitation District Page 1 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-915 Agenda Date: 2/26/2020 Agenda Item No: 9. TIMING CONCERNS The current Blanket Purchase Order contract for Grainger expires on February 29, 2020. Approval of a new contract with Grainger, proposed to start on March 1, 2020, will alleviate the burden on Purchasing and Maintenance to individually procure miscellaneous parts and supplies. RAMIFICATIONS OF NOT TAKING ACTION Increased time to procure needed parts and supplies, and potential higher costs. PRIOR COMMITTEE/BOARD ACTIONS January 2019 - Approved an increase of $35,000 to Blanket Purchase Order No. 105577-OB with W.W. Grainger, Inc. for the ratification of purchases of maintenance tools and supplies, in accordance with Ordinance No. OCSD-52, Section 2.03(B): Cooperative Procurement, for the period beginning March 1, 2018 through February 28, 2019, for a total amount not to exceed $310,000. February 2016 - Approve a Blanket Purchase Order with W.W. Grainger, Inc. for the purchase of maintenance tools and supplies, in accordance with Ordinance No. OCSD-47, Section 2.03(B): Cooperative Procurement; for the period beginning March 1, 2016 through February 28, 2017 with three one-year renewal option years, for a total amount not to exceed $275,000 per year. ADDITIONAL INFORMATION The National Association of State Procurement Officers (NASPO, formerly WSCA-NASPO) agreements are available to all State of California governmental entities (e.g. state agencies, cities, counties, special districts, school districts, universities) that expend public funds for the acquisition of both goods and services. The State of California purchases a wide variety of goods and services ranging from pencils to temporary labor under these agreements. Annual purchases total nearly $10 billion. The Procurement Division is the central purchasing authority for all State departments and local government agencies. With a massive marketplace and billions of dollars in purchasing power they are able to offer a lower procurement cost to California's state, county, city, special districts, education and other government entities through their Leveraged Procurement Agreements. Leveraged Procurement Agreements allow entities/agencies to buy directly from suppliers through existing contracts and agreements. One of these that the state offers to California governmental agencies is the National Association of State Procurement Officers for Commodities, IT Goods & Services, and Telecommunication Goods and Services. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This recommendation will be funded under the Repair and Maintenance line item for Operations and Orange County Sanitation District Page 2 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-915 Agenda Date: 2/26/2020 Agenda Item No: 9. Maintenance Department (Budget Update Fiscal Year 2019-20, Page 47). The available funding is sufficient for this action. Date of Approval Contract Amount Contingency 02/26/2020 $275,000 $0 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A RM:dh:ab Orange County Sanitation District Page 3 of 3 Printed on 2/20/2020 powered by LegistarTM oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 OPERATIONS COMMITTEE (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-916 Agenda Date: 2/26/2020 Agenda Item No: 10. FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: PLANT NO. 1 PURCHASE OF PROGRESSIVE CAVITY PUMP REPLACEMENT PARTS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Sole Source Purchase Order to Cortech Engineering for the purchase of eight Seepex pump rotors and one stator for the sludge thickening and dewatering facility, for a total amount not to exceed $216,210, plus applicable sales tax and shipping; and B. Approve a contingency of $21,620 (10%). BACKGROUND The Orange County Sanitation District (Sanitation District) sludge thickening and dewatering facility at Plant No. 1 uses thickening centrifuges that are critical to the sludge handling process. The thickening facilities handle all sludge from the primary and secondary clarifiers before being transferred to the digesters. Removing extra water from the sludge has the effect of increasing the capacity of the digester complex. All primary and secondary sludge is collected and mixed in a common wet well. This mixed sludge slurry is sent through one of three thickening trains. Each train has feed pumps, a centrifuge, and two thickened sludge transfer pumps and associated ancillary equipment to move the solids to the digestion complex. RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Maintain a proactive asset management program • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting Orange County Sanitation District Page 1 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-916 Agenda Date: 2/26/2020 Agenda Item No: 10. PROBLEM The gritty nature of primary sludge causes significant wear to the thickened sludge transfer pumps and ancillary equipment. The thickened sludge transfer pumps are experiencing reduced pumping capacity attributed to pump rotor wear. PROPOSED SOLUTION Procure replacement Seepex pump rotors and stator parts to restore system capacity to the solids handling process. TIMING CONCERNS The thickening centrifuge pumps are critical to the treatment process. Spare rotors for these progressive cavity pumps have up to a 12 week lead time from the manufacturer. Four units are required now to restore system capacity. Additionally, warehouse spare rotors are being ordered for future rebuilds to prevent this situation from reoccurring. RAMIFICATIONS OF NOT TAKING ACTION Failure to procure replacement parts will result in the reduction of treatment capacity. Additional pump degradation will severely handicap the ability for the sludge thickening facility to process necessary sludge volume and could result in having to divert sludge to Plant No. 2. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Cortech Engineering is a Board approved sole source vendor for Seepex process pumps. Seepex is the original equipment manufacturer and Cortech Engineering is the only authorized distributor within our geographical region for repair parts. A 10% contingency is requested in the event of pricing changes to due to tariffs, delays in placing the order beyond the quote validity, or other unforeseen changes. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This recommendation will be funded under the Repair and Maintenance line item for Operations and Maintenance Department (Budget Update Fiscal Year 2019-20, Page 47). The available funding is sufficient for this action. Orange County Sanitation District Page 2 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-916 Agenda Date: 2/26/2020 Agenda Item No: 10. Date of Approval Contract Amount Contingency 02/26/2020 $216,210 (Plus tax&shipping) $21,620 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A RM:jq:ab Orange County Sanitation District Page 3 of 3 Printed on 2/20/2020 powered by LegistarTM oJ�1V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 OPERATIONS COMMITTEE (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-917 Agenda Date: 2/26/2020 Agenda Item No: 11. FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS, PROJECT NO. J-98 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Professional Design Services Agreement with Brown and Caldwell to provide engineering services for the Electrical Power Distribution System Improvements, Project No. J -98, for an amount not to exceed $2,240,000; and B. Approve a contingency of $224,000 (10%). BACKGROUND The electrical distribution systems at Plant Nos. 1 and 2 are critical to ensure power supply to all plant facilities at all times. The electrical distribution system includes distribution centers, power buildings, and electrical rooms throughout the plants. These facilities use switchgears and automatic transfer switches to distribute utility, Central Generation, and standby generator power. RELEVANT STANDARDS • Comply with Government Code Section 4526: Select the "best qualified firm" and "negotiate fair and equitable fee" • 24/7/365 treatment plant reliability PROBLEM The distribution systems at Plant Nos. 1 and 2 have a number of deficiencies and in some cases pose increased arc flash potential. These deficiencies include aged and obsolete equipment that are in need of replacement. Plant No. 1 does not have an automated load shedding scheme in place. In the event of a system disturbance, such as a Southern California Edison (SCE) outage, electrical maintenance staff at Plant No. 1 are required to reconfigure the electrical system throughout the plants. If non-critical loads are not shed in time, Central Generation is unable to maintain the load and shuts down. After a shutdown, staff must manually initiate restarting of equipment in a particular sequence to avoid Orange County Sanitation District Page 1 of 5 Printed on 2/20/2020 powered by LegistarTM File #: 2020-917 Agenda Date: 2/26/2020 Agenda Item No: 11. overloading of standby generators. This is a time consuming and inefficient means of operating the electrical distribution system, particularly during emergency events such as an SCE outage where time is critical in preventing a spill. Plant No. 2 is in the process of adding an automated load-shedding system to much of the plant under a separate project. Electrical Power Distribution System Improvements, Project No. J-98, will extend the load shedding system to the remainder of Plant No. 2. PROPOSED SOLUTION Award a Professional Design Services Agreement for Electrical Power Distribution System Improvements, Project No. J-98. This will provide the design for the replacement of aged and obsolete electrical equipment, addition of automated protective relays at Plant Nos. 1 and 2, implementation of a load-shedding scheme at Plant No. 1, and extension of the load-shedding system currently being installed under the Outfall Low Flow Pump Station, Project No. J-11713. TIMING CONCERNS If the project is delayed, the electrical distribution system may suffer from reduced safety, reduced reliability, increased maintenance costs, and unexpected process facility outages with increased potential for spills. RAMIFICATIONS OF NOT TAKING ACTION Numerous small and large projects would need to be initiated to install, replace, and upgrade the various breakers, conductors, grounding systems, and load shedding system. The Plant No. 1 electrical distribution system would remain subject to a more time-consuming restoration of power due to a loss of the utility power source (SCE). PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Consultant Selection The Orange County Sanitation District (Sanitation District) requested and advertised for proposals for Electrical Power Distribution System Improvements, Project No. J-98, on August 29, 2019. The following evaluation criterion were described in the Request for Proposals and used to determine the most qualified Consultant. Criterion Weighting Project Understanding and Approach 35% Related Project Experience 25% Project Team and Staff Qualifications 40% Orange County Sanitation District Page 2 of 5 Printed on 2/20/2020 powered by LegistarTM File #: 2020-917 Agenda Date: 2/26/2020 Agenda Item No: 11. Five proposals were received on October 15, 2019 and evaluated in accordance with the evaluation process set forth in the Sanitation District's Purchasing Ordinance by a pre-selected Evaluation Team consisting of the following Sanitation District staff: two Senior Engineers (Project Manager and Project Engineer), one Engineering Manager, one Engineering Supervisor, and one Maintenance Superintendent. The Evaluation Team also included one non-voting representative from the Contracts Administration Division. The Evaluation Team scored the proposals based on the established criterion as shown in the table below: Proposer Approach and Related Team and Staff Total Score Understanding Project Qualifications (Max 100) (Max 35) Experience (Max 40) (Max 25) Brown and Caldwell 28 22 36 86 SPEC Services 26 20 32 78 Gekko Engineering 20 12 24 56 Inc. Next Stage 16 12 20 48 Engineering IDS Group, Inc. 10 8 18 36 Based on the evaluation team review, the two highest scoring firms were invited for interviews. The interviews were conducted on November 12, 2019. Following the interviews, the evaluation committee established that the highest scoring proposal was the finalist with the highest score based on both the written proposal and the interview. Based on the scoring shown below, Brown and Caldwell was selected as the most qualified consultant. Proposer Approach and Related Team and Staff Total Score Understanding Project Qualifications (Max 100) (Max 35) Experience (Max 40) (Max 25) Brown and Caldwell 27 21 33 181 SPEC Services 29 20 30 79 The selected firm's written proposal and interviews revealed a technically proficient and collaborative team, clear definition of project roles, and their level of commitment to the project. Based on the proposed team, experience, and technical understanding, it is anticipated that Brown and Caldwell will efficiently and effectively produce a biddable design package for this project. Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposals. In accordance with the Purchasing Ordinance, the fee proposal of only the highest-ranked firm was opened after approval by the Director of Engineering of the Evaluation Committee's recommendation. Orange County Sanitation District Page 3 of 5 Printed on 2/20/2020 powered by LegistarTM File #: 2020-917 Agenda Date: 2/26/2020 Agenda Item No: 11. Staff conducted negotiations with Brown and Caldwell to clarify the requirements of the Scope of Work, the assumptions used for the estimated level of effort, and the proposed approach to meet the goals and objectives for the project. The review process identified approximately 30 electrical drawings and 22 instrumentation and control drawings that were able to be removed from the project. Additionally, the hours per sheet were reduced on several of the drawings based on available information and ability to consolidate items into a reduced number of sheets. Original Fee Proposal Negotiated Fee Total Hours 15,288 13,022 Total Fee $2,561,144 $2,240,000 The Consultant's fringe and overhead costs, which factor into the billing rate, have been substantiated. The fringe and overhead costs were reduced, along with the total fee, based on a review of their audited overhead rates. The contract profit is 5.86%, which is based on an established formula based on the Sanitation District's standard design agreements. Based on the above, staff has determined that the final negotiated fee is fair and reasonable for the level of effort required for this project and recommends award of the Professional Design Services Agreement to Brown and Caldwell. Additional Engineering Resources Required: This project will also require the professional services of Schweitzer Engineering Laboratories Engineering Services (Schweitzer) to provide final design, programming, testing, commissioning, and training for a load-shedding system and electrical power system protective relays. Schweizter's professional services are required as the sole-source provider of the power monitoring relay and load shedding systems. On March 28, 2018, the Board authorized staff to sole source Schweitzer for the load-shedding system and electrical power system protective relays and authorized staff to negotiate sole source, professional services with Schweitzer (SEL). The Sanitation District is currently negotiating with Schweitzer regarding the scope of work assumptions and estimated level of effort for this project. It is anticipated that the Sanitation District will submit for a Professional Services Agreement award at the March 2020 Operations Committee meeting. CEQA The project is exempt from CEQA under the Class 1, 2, and 3 categorical exemptions set forth in California Code of Regulations Sections 15301, 15302, and 15303. These three sections exempt from CEQA projects involving repair, replacement, and or minor alteration of existing facilities that have no expansion of use or capacity, replacement of existing utilities, and installation of small new equipment. A Notice of Exemption will be filed with the OC Clerk-Recorder after the Sanitation District's Board of Directors approval of the Professional Design Services Agreement. Orange County Sanitation District Page 4 of 5 Printed on 2/20/2020 powered by LegistarT" File #: 2020-917 Agenda Date: 2/26/2020 Agenda Item No: 11. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted, (Budget Update FY19-20, Appendix A, Page A-8). The project 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: • Professional Design Services Agreement • PowerPoint Presentation - Operations Committee Meeting of February 5, 2020 TW:dm:gc Orange County Sanitation District Page 5 of 5 Printed on 2/20/2020 powered by LegistarT" PROFESSIONAL DESIGN SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 261h day of February, 2020 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT', and Brown and Caldwell, for purposes of this Agreement hereinafter referred to as "CONSULTANT'. WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT for Electrical Power Distribution System Improvements, Project No. J-98; and to provide Design services to prepare final plans and specifications, construction cost estimates, schedule, and bid documents for both 480V and 12kV electrical power distribution systems including modifications to double-ended switchgear, transformers, MCCs, breakers, and conductors; and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select a CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on February 26, 2020 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee pursuant to SANITATION DISTRICT's Purchasing Ordinance to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as Attachment"A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall perform its work in accordance with engineering standards in effect for clarity, uniformity, and completeness. CONSULTANT shall respond to PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 1 of 20 all comments, suggestions, and recommendations on the SANITATION DISTRICT's review comment sheets (i.e. DS1, DS2 and DS3). All comments shall be incorporated into the design prior to the next submittal deadline or addressed, in writing, as to why the comment has not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CAD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using the SANITATION DISTRICT CAD Manual. Conversion of CAD work from any other non-standard CAD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of thirty (30) calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. The CONSULTANT shall ensure that all plans and specifications prepared, or recommended under this Agreement allow for competitive bidding. The CONSULTANT shall design such plans or specifications so that procurement of services, labor or materials are not available from only one source, and shall not design plans and specifications around a single or specific product, piece of major equipment or machinery, a specific patented design or a proprietary process, unless required by principles of sound engineering practice and supported by a written justification that has been approved in writing by the SANITATION DISTRICT. The CONSULTANT shall submit this written justification to the SANITATION DISTRICT prior to beginning work on such plans and specifications. Whenever the CONSULTANT recommends a specific product or equipment for competitive procurement, such recommendation shall include at least two brand names of products that are capable of meeting the functional requirements applicable to the project. F. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 2 of 20 compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the SANITATION DISTRICT. This provision does not apply to information that (a)was publicly known, or otherwise known to the CONSULTANT, at the time that it was disclosed to the CONSULTANT by the SANITATION DISTRICT, (b) subsequently becomes publicly known to the CONSULTANT other than through disclosure by the SANITATION DISTRICT. G. The SANITATION DISTRICT shall furnish the CONSULTANT available studies, reports and other data pertinent to the CONSULTANT's service; obtain or authorize the CONSULTANT to obtain or provide additional reports and data as required; furnish to the CONSULTANT services of others required for the performance of the CONSULTANT's services hereunder, and the CONSULTANT shall be entitled to use and rely upon all such information and services provided by the SANITATION DISTRICT or others in performing the CONSULTANT's services under this Agreement. H. The SANITATION DISTRICT acknowledges that construction estimates, financial analyses and feasibility projections are subject to many influences including, but not limited to, price of labor and materials, unknown or latent conditions of existing equipment or structures, and time or quality of performance by third parties. The SANITATION DISTRICT acknowledges that such influences may not be precisely forecasted and are beyond the control of CONSULTANT and that actual costs incurred may vary substantially from the estimates prepared by CONSULTANT. CONSULTANT does not warrant or guarantee the accuracy of construction or development cost estimates. 2. COMPENSATION Total compensation shall be paid to CONSULTANT for services in accordance with the following provisions: A. Total Compensation Total compensation shall be in an amount not to exceed Two Million Two Hundred Forty Thousand Dollars ($2,240,000). Total compensation to CONSULTANT including burdened labor (salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s) fees and costs shall not exceed the sum set forth in Attachment"E"- Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits) actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 3 of 20 C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment"E" - Fee Proposal. D. Profit Profit for CONSULTANT and Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. As a portion of the total compensation to be paid to CONSULTANT and Subconsultants, the SANITATION DISTRICT shall pay profit for all services rendered by CONSULTANT and Subconsultants for this project according to Attachment"E" - Fee Proposal. E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment "E" - Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment "E" - Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D" -Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 2 -COMPENSATION above. G. Other Direct Costs Other Direct Costs incurred by CONSULTANT and its Contractor due to modifications in scope of work resulting from field investigations and field work required by Contract. These items may include special equipment, test equipment and tooling and other materials and services not previously identified. Refer to Attachment"D"Allowable Direct Costs for payment information. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 4 of 20 H. Reimbursable Direct Costs The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable travel and business expenses as described in this section and further described in Attachment"D" -Allowable Direct Costs to this Agreement. The reimbursement of the above-mentioned expenses will be based on an "accountable plan" as considered by Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a "per diem" component approved by IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Service Administration website at http://www.gsa.-gov/portal/category/l 04711#. The CONSULTANT shall be responsible for the most economical and practical means of management of reimbursable costs inclusive but not limited to travel, lodging and meals arrangements. The SANITATION DISTRICT shall apply the most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or"per diem" as deemed the most practical. CONSULTANT shall be responsible for returning to the SANITATION DISTRICT any excess reimbursements after the reimbursement has been paid by the SANITATION DISTRICT. Travel and travel arrangements—Any travel involving airfare, overnight stays or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT general geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging —Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment "D" -Allowable Direct Costs of this Agreement. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 5 of 20 I. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed seventy-five percent (75%) of the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to any notification requirements contained in the CONSULTANT's invoice and monthly progress report. Failure to notify the SANITATION DISTRICT that the services cannot be completed within the authorized not-to-exceed amount is a material breach of this Agreement. 3. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 4. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 11 -AUDIT PROVISIONS. B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2- COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%) of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 6 of 20 i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or ii. The percentage of the work accomplished for each project element. He may, at his discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. C. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Section 2 - COMPENSATION above. Said profit payment request shall be proportionate to the work actually accomplished to date on a per-project-element basis. In the event the SANITATION DISTRICT's Director of Engineering determines that no satisfactory progress has been made since the prior payment, or in the event of a delay in the work progress for any reason, the SANITATION DISTRICT shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this Agreement, and upon acceptance of such work by the SANITATION DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for such work, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this Agreement for such work, or prior settlement upon termination of this Agreement, and as a condition precedent thereto, CONSULTANT shall execute and deliver to the SANITATION DISTRICT a release of all claims against the SANITATION DISTRICT arising under or by virtue of this Agreement other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act(Government Code Sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a ten thousand dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 7 of 20 DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 5. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform Work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 et seq, CONSULTANT and Subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring and enforcement by the DIR. B. The CONSULTANT and Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants shall furnish a copy of all certified payroll records to SANITATION DISTRICT and/or general public upon request, provided the public request is made through SANITATION DISTRICT, the Division of Apprenticeship Standards or the Division of Labor Enforcement of the Department of Industrial Relations. D. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 6. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 8 of 20 B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below "B". Further, the SANITATION DISTRICT will require CONSULTANT to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20) days of written notice to CONSULTANT, by the SANITATION DISTRICT or its agent. iii. Coverage shall be in effect prior to the commencement of any work under this Agreement. B. General Liability The CONSULTANT shall maintain during the life of this Agreement, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: One Million Dollars ($1,000,000) per occurrence with Two Million Dollars ($2,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, products liability/completed operations (including any product manufactured or assembled), broad form property damage, contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, vicarious liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) and Riggers/On Hook Liability must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liability The minimum limits of general liability and Automotive Liability Insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 9 of 20 which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. AutomotiveNehicle liability Insurance The CONSULTANT shall maintain a policy of Automotive 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: Combined single limit of One Million Dollars ($1,000,000) or alternatively, One Million Dollars ($1,000,000) per person for bodily injury and One Million Dollars ($1,000,000) per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. E. Drone Liability Insurance If a drone will be used, drone liability insurance must be maintained by CONSULTANT in the amount of one million dollars ($1,000,000) in form acceptable to the SANITATION DISTRICT. F. Worker's Compensation Insurance The CONSULTANT shall provide such Workers'Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF° and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. G. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Three Million Dollars ($3,000,000) with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 10 of 20 In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10) days prior to the expiration of each policy term. H. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by the SANITATION DISTRICT before work commences. CONSULTANT shall provide the SANITATION DISTRICT with access to copies of its insurance certificates and amendatory endorsements affecting coverage at its regional office in Irvine, California during normal working hours. Confidential information may be redacted from said policies, provided that verification of coverage may not be redacted. Said policies and endorsements shall conform to the requirements herein stated. The following are approved forms that must be submitted as proof of coverage: • Certificate of Insurance ACORD Form 25 (5/2010) or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 or equivalent All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 11 of 20 I. Cancellation Notice 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. The Cancellation Section of ACORD Form 25 (5/2010) shall state the required thirty (30) days'written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty (30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT shall send to the SANITATION DISTRICT a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Risk Management, and shall be received by the SANITATION DISTRICT not less than thirty (30) days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. J. Primary Insurance All liability policies shall contain a Primary and Non-Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. K. Separation of Insured All liability policies shall contain a "Separation of Insureds" clause. L. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. M. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. The SANITATION DISTRICT will not invoke the option expressed in this paragraph unless it has reasonable cause to question CONSULTANT's financial strength. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 12 of 20 N. Defense Costs Liability policies (except Errors and Omissions/Professional Liability) shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. O. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. P. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. Nothing in this section, however, requires CONSULTANT in the absence of litigation to reveal its Errors and Omissions/Professional Liability limits beyond that required above in Section 7. 8. SCOPE CHANGES In the event of a change in the Scope of Work, requested by SANITATION DISTRICT, the parties hereto shall execute an amendment to this Agreement setting forth with particularity all terms of the new Agreement, including but not limited to any additional CONSULTANT's fees. 9. PROJECT TEAM AND SUBCONSULTANTS CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this Agreement, the names and full description of all Subconsultants and CONSULTANT's project team members anticipated to be used on this project by CONSULTANT. CONSULTANT shall include a description of the scope of work to be done by each Subconsultant and each CONSULTANT's project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant on a per-project-element basis, broken down as indicated in Section 2 - COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. 10. ENGINEERING REGISTRATION The CONSULTANT's personnel are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever in the performance of this Agreement requires the services of a registered engineer. Such services hereunder will be performed under the direct supervision of registered engineers. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 13 of 20 11. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3) years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will be available to assist SANITATION DISTRICT's auditor in obtaining all project related accounting records and documents, and any other financial data. 12. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to make CONSULTANT an employee of the SANITATION DISTRICT. 13. NOTICES All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 14 of 20 Notices shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Clarice Marcin, Senior Contracts Administrator Copy: Todd Waltz, Project Manager Notices shall be mailed to CONSULTANT at: Brown and Caldwell 18500 Von Karman Avenue, Suite 1100 Irvine, CA 92612 Attention: Cherylle Barrido, PE Copy: Mike Puccio, PE All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT's staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. 14. TERMINATION The SANITATION DISTRICT may terminate this Agreement at any time, without cause, upon giving thirty (30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. CONSULTANT shall be permitted to terminate this Agreement upon thirty (30) days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this Agreement, when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT and/or CONSULTANT in accordance with Section 13 - NOTICES. 15. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, computation and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by the SANITATION DISTRICT. 16. COMPLIANCE A. Labor CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 15 of 20 and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. B. Air Pollution CONSULTANT and its subconsultants and subcontractors shall comply with all applicable federal, state and local air pollution control laws and regulations. 17. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute agreements for that party. 18. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. 20. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth day of the following month and must include as a minimum: 1) current activities, 2) future activities, 3) potential items that are not included in the Scope of Work, 4) concerns and possible delays, 5) percentage of completion, and 6) budget status. 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 16 of 20 and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims") which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B) a natural disaster or other act of God, such as an earthquake; or (C) the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A) through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 17 of 20 payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 24. CONSULTANT PERFORMANCE The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT. A copy of the evaluation shall be sent to the CONSULTANT for comment. The evaluation, together with the comments, shall be retained by the SANITATION DISTRICT and may be considered in future CONSULTANT selection processes. 25. COMPLIANCE WITH SANITATION DISTRICT POLICIES AND PROCEDURES CONSULTANT shall comply with all SANITATION DISTRICT policies and procedures including the OCSD Safety Standards, as applicable, all of which may be amended from time to time. 26. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the Agreement is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the Agreement is otherwise terminated or expires in accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the CONSULTANT written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the Agreement within thirty (30) days of receipt of notice of Agreement closeout. Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 18 of 20 Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT's request for final Agreement Acceptance. 27. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 19 of 20 IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. CONSULTANT: BROWN AND CALDWELL By Date Printed Name & Title ORANGE COUNTY SANITATION DISTRICT By David John Shawver Date Board Chairman By Kelly A. Lore Date Clerk of the Board By Ruth Zintzun Date Purchasing & Contracts Manager Attachments: Attachment"A"—Scope of Work Attachment "B"— Labor Hour Matrix Attachment "C"— NOT USED Attachment"D"—Allowable Direct Costs Attachment"E" —Fee Proposal Attachment"F" —NOT USED Attachment"G"— NOT USED Attachment"H"— NOT USED Attachment "I" —Cost Matrix and Summary Attachment "J"— NOT USED Attachment "K" -NOT USED Attachment "L"—OCSD Safety Standards PDSA PROJECT NO.J-98 Revised 072619 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 20 of 20 ATTACHMENT "A" SCOPE OF WORK ATTACHMENT A SCOPE OF WORK Electrical Power Distribution System Improvements Project No. J-98 TABLE OF CONTENTS I. SUMMARY..........................................................................................................................................3 II. BACKGROUND, GENERAL PROJECT DESCRIPTION,AND PROJECT ELEMENTS.......3 BACKGROUND...........................................................................................................................3 GENERAL PROJECT DESCRIPTION....................................................................................4 DESCRIPTION OF PROJECT ELEMENTS...........................................................................4 Project Element 1 —Electrical Upgrades at Plant 1...........................................................4 Project Element 2—Electrical Upgrades at Plant 2...........................................................7 Project Element 3 —Implement Load Shedding and Arc Flash Mitigation Scheme at Plants1 and 2.................................................................................................................. 10 WORK TO BE DONE BY SEL AT PLANTS 1 AND 2.........................................................13 COORDINATION WITH OTHER PROJECTS....................................................................15 III.PROJECT SCHEDULE....................................................................................................................16 IV.PROJECT EXECUTION.................................................................................................................17 PHASE 1 —PROJECT DEVELOPMENT (Not in this scope of work).................................17 PHASE 2—PRELIMINARY DESIGN....................................................................................17 Task 2.1 —Predesign Evaluation Studies (Not in this scope).......................................... 17 Task 2.2 - Preliminary Design Production...................................................................... 17 Task2.3 -Project Management.......................................................................................26 Task2.4—Risk Management..........................................................................................30 Task 2.5 —PDR Production Workshops and Meetings...................................................31 Task2.6—Quality Control..............................................................................................35 PHASE3—DESIGN..................................................................................................................37 Task3.1 -Bid Documents...............................................................................................37 Task 3.2 - Design Support Documentation.....................................................................40 Task3.3 - Design Submittals ..........................................................................................41 Task 3.4 -Bid Support Services......................................................................................43 Task 3.5 -Project Management.......................................................................................44 Task 3.6 -Risk Management Assistance.........................................................................44 Task 3.7 -Workshops and Meetings...............................................................................45 Task3.8 -Quality Control...............................................................................................50 PHASE 4—CONSTRUCTION AND INSTALLATION SERVICES (Not in this scope of work)............................................................................................................................................50 PHASE 5—COMMISSIONING SERVICES (Not in this scope of work)............................50 PHASE 6—CLOSE OUT (Not in this scope of work).............................................................50 Sept. 2019 J-98 Design SOW (Negotiated) Page 1 of 55 V. GENERAL REQUIREMENTS........................................................................................................50 GENERAL..................................................................................................................................50 OCSD Engineering Design Guidelines and Strategic Plan.............................................50 VI.STAFF ASSISTANCE ......................................................................................................................54 EXHIBITS:..............................................................................................................................................55 Sept. 2019 J-98 Design SOW (Negotiated) Page 2 of 55 I. SUMMARY Provide professional design engineering services for the project described herein including the following: 1. A Preliminary Design Report 2. Preparation of Bid Documents II. BACKGROUND, GENERAL PROJECT DESCRIPTION, AND PROJECT ELEMENTS BACKGROUND The electrical distribution systems at Plants 1 and 2 are critical to ensure uninterrupted power supply to all plant facilities at all times. The electrical distribution system includes distribution centers, power buildings, and electrical rooms throughout the plants, which use medium- voltage and low-voltage switchgears and automatic transfer switches to distribute utility, Central Generation (Cen Gen), and standby generator power. In the event of a system disturbance like a fault or a Southern California Edison (SCE) outage, electrical maintenance staff at Plant 1 are required to reconfigure the electrical system and/or shed loads at power buildings/electrical rooms located throughout the plants. This is a time consuming and inefficient means of operating the electrical distribution system, particularly during emergency events like a SCE outage where time is critical in preventing a spill. The J-117B project at Plant 2 will install a substation LAN (local area network)-based load shedding control system that will compare electrical demand with the available supply and shed loads by tripping 12kV feeder breakers based on an operator selected priority during a load shedding event to allow Cen Gen to remain in operation. The load shedding system will be triggered on the detection of a contingency-based event (monitoring key breakers) as the primary method with under frequency used as a backup method. As part of J-117B, OCSD evaluated IEC 61850 substation LAN systems for load shedding and selected Schweitzer Engineering Laboratories (SEL) to provide a load shedding system and protective relays for J-117B and future projects. A similar system is required at Plant 1. In 2009, Project P1-97 completed the replacement of the electromechanical protective relays with SEL relays at the 12kV Service Center and Cen Gen at Plant 1. Project J-117B will also be implementing a speaker and strobe system at various electrical buildings at Plant 2 per Exhibit 12A requirements. This system would provide an early warning of planned remote operation of breakers in order to reduce the risk of any potential electrical hazards to personnel during remote operations. A similar system is required at Plant 1. Existing electrical deficiencies have been identified under J-25-4 project. These deficiencies include the addition of transient voltage surge suppressors (TVSS), addition of zigzag (high resistance) grounding transformers, and other miscellaneous upgrades. Sept. 2019 J-98 Design SOW (Negotiated) Page 3 of 55 GENERAL PROJECT DESCRIPTION Electrical distribution system improvements will be made to various areas throughout Plant 1 and Plant 2. This scope covers both 480V and 12.47kV switchgear, MCCs, transformers, breakers, conductors, status monitoring, load shedding, and arc flash mitigation. PLANT 1 This project will implement a load shedding system at Plant 1, similar to the system being implemented at Plant 2 under J-117B by SEL, add speaker and strobe system, add high resistance grounding transformers, and provide transient voltage surge suppression devices. PLANT 2 Project P2-92 relocated and replaced DC-D, B-side 12kV feeder from 12kV Service Center to Cen Gen to create a spare circuit breaker at the 12kV Service Center for DC-K. To match the expected cable useful life and longevity, this project will replace the existing A-side 12kV feeder from Cen Gen to DC-D. To increase the reliability of the Plant 2 power distribution system, a hybrid grounding system will be added to three (3) EPSA standby generators and (3) Headworks 12.47kV standby generators to reduce potential ground fault currents. Connections for a portable generator load bank will be added to the EPSA Standby Power Building and the Headworks Standby Power Building to test for compliance with NFPA 110, "Standard for Emergency and Standby Power System". This standard is currently being implemented as part of the P1-105, Headworks Rehabilitation and Expansion Project at Plant 1. Aged transformers, switchgears, and MCCs will be replaced at various power buildings with new equipment. Project J-117B will be installing an electrical SCADA system for a significant portion of the electrical system at Plant 2. To match the SCADA additions being implemented on Project J-117B, this project will add similar SCADA functionality to equipment at DC-A and at the power buildings fed by DC-A. The Substation LAN that will be installed by Project J-117B will also be extended to DC-A by this project. DESCRIPTION OF PROJECT ELEMENTS PROJECT ELEMENT 1 — ELECTRICAL UPGRADES AT PLANT 1 Required electrical upgrades for each power building/electrical room are indicated in the facility breakdown below. This list provides an overview of each electrical room/power building and shall be used to identify specific elements at each location. Sept. 2019 J-98 Design SOW (Negotiated) Page 4 of 55 1. DAF Building: Add high resistance grounded zig-zag transformers and associated Exhibit 12A monitoring points to the existing electrical Programmable Logic Controller (PLC). 2. Speaker and Strobe System: Add `Room Strobe' and `Room Speaker' equipment and associated signals to the respective electrical PLCs per Exhibit 12A to the following buildings: 0 12kV Service Center o CenGen o Blower Building 1 o Blower Building 2 o DAF Building o Power Building 5 o Power Building 6 o Power Building 7 o Power Building 8 o Power Building 9 o Steve Anderson Lift Station o Thickening and Dewatering Building (this location presently has a strobe and horn which shall be replaced with a strobe and speaker system) 3. TVSS Provide transient voltage surge suppression (TVSS) devices at the following motor control centers (MCCs) and panels. Provide monitoring status signal at the locations indicated: a. MCC-AAA i. TVSS status to Primary Basins 1-5 PLC, Drop 3, Rack 1, Slot 3, Point 8 (Register 10056). Reserved in SAT. b. MCC-OM i. TVSS status to Control Center PLC, Drop 1, Rack 2, Slot 5, Point 1 (Register 10001). Reserved in SAT. c. MCC-CB i. TVSS status to Primary Basins 1-5 PLC, Drop 2. d. MCC-CWA, and MCC-CWB i. TVSS status to City Water PLC, Drop 2, Rack 1, Slot 8, Point 16 (Register 10048). Reserved in SAT. e. MCC-SP i. TVSS status to Power Building 4 Electrical SCADA PLC, Drop 2, Rack 1, Slot 5, Point 16 (Register 10048). Reserved in SAT. Sept. 2019 J-98 Design SOW (Negotiated) Page 5 of 55 f. MCC-T and MCC-TA i. MCC-T: TVSS status to Primary Basins 6-15B PLC, Drop 8, Rack 1, Slot 3, Point 16 (Register 10336). Reserved in SAT. ii. MCC-TA: TVSS status 16-30A PLC, Drop 6, Rack 1, Slot 3, Point 16 (Register 10288). Reserved in SAT. g. MCC-U and MCC-UA i. MCC-U: TVSS status to Primary Basins 6-15B PLC, Drop 23, Rack 1, Slot 3, Point 16 (Register 10800). Reserved in SAT. ii. MCC-UA: TVSS status to Primary Basins 17-31 PLC, Drop 4, Rack 1, Slot 3, Point 16 (Register 10176). Reserved in SAT. h. MCC-VA (located at Effluent Junction Box) i. TVSS status to Plant Water PLC, Drop 7, Rack 1, Slot 3, Point 16 (Register 10176). Reserved in SAT. i. MCC-W (located at Primary Effluent Junction Box) i. TVSS status to Aeration Basin Utility PLC, Drop 18, Rack 1, Slot 3, Point 16 (Register 10864). Reserved in SAT. j. MCC-X (located at Primary Polymer Facility) i. TVSS status to Primary Basins Polymer PLC, Drop 4, Rack 1, Slot 5, Point 16 (Register 10160). Reserved in SAT. k. MCC-Z (located at WSSPS) i. TVSS status to Waste Sidestream Pump Station, Drop 2, Rack 1, Slot 6, Point X (Register 10048). Reserved in SAT. I. SWGR-6A, and 6B i. SWGR-6A: TVSS status to Power Building 6 Electrical SCADA PLC, Drop 2, Rack 1, Slot 6, Point 6 (Register 10054). Reserved in SAT. ii. SWGR-6B: TVSS status to Power Building 6 Electrical SCADA PLC, Drop 2, Rack 1, Slot 5, Point 7 (Register 10039). Reserved in SAT. m. SWGR-7A, and 7B i. SWGR-7A: TVSS status to Power Building 7 Electrical SCADA PLC, Drop 1, Rack 1, Slot 8, Point 16 (Register 10048). Reserved in SAT. ii. SWGR-7B: TVSS status to Power Building 7 Electrical SCADA PLC, Drop 1, Rack 1, Slot 9, Point 16 (Register 10064). Reserved in SAT. n. SWGR-F Bus A, and BUS B i. Bus A: TVSS status to Power Building 2 Electrical SCADA PLC, Drop 2, Rack 1, Slot 3, Point 15 (Register 10015). Reserved in SAT. ii. Bus B: TVSS status to Power Building 2 Electrical SCADA PLC, Drop 2, Rack 1, Slot 3, Point 16 (Register 10016). Reserved in SAT. o. SWGR-CGSA, CGSB i. SWGR-CGSA: TVSS status to CEN-GEN Electrical SCADA PLC, Drop 2, Rack 1, Slot 6, Point 13 (Register 10061). Reserved in SAT. Sept. 2019 J-98 Design SOW (Negotiated) Page 6 of 55 ii. SWGR-CGSB: TVSS status to CEN-GEN Electrical SCADA PLC, Drop 2, Rack 1, Slot 13, Point 11 (Register 10171). Reserved in SAT. p. SWGR-M1 i. TVSS status to DAF Electrical SCADA PLC, Drop 2, Rack 1, Slot 3, Point 7 (Register 10007). Reserved in SAT. q. SWGR-NB Bus A, and Bus B i. TVSS status to Power Building 2 Electrical SCADA PLC. Need to provide an additional 1/0 card and CableFast. r. SWGR-P1 i. TVSS status to DAF Electrical PLC, Drop 2, Rack 1, Slot 4, Point 6 (Register 10022). Reserved in SAT. PROJECT ELEMENT 2 — ELECTRICAL UPGRADES AT PLANT 2 Required electrical upgrades for each power building/electrical room are indicated in the facility breakdown below. This list provides an overview of each electrical room/power building and shall be used to identify specific elements at each location: 1. EPSA and Headworks Standby Power Buildings: o Provide a hybrid grounding system for the medium-voltage generators at EPSA and Headworks Standby Power Buildings. The new hybrid grounding system will comprise of a high resistance grounding unit at each medium voltage generator set and a low resistance grounding system located at the generator paralleling switchgear bus. o Provide a permanent load bank connection for the medium voltage generators at EPSA and Headworks Standby Power Buildings. The load bank connection will include 12kV circuit breakers (utilize an existing spare breaker at EPSA and Headworks Standby Power Buildings), 12kV feeders, 12.47kV-480V dry-type cast-coil pad-mounted transformers, 480V feeders and Cam-lok connectors located in a weatherproof enclosure. Load bank connection shall be sized to support 100% of one generator nameplate rating. 2. Distribution Center A (DC-A): o Provide SCADA monitoring and control (including conduit and wiring from equipment to new electrical PLC/RIO cabinet) per Exhibit 12A requirements for the following equipment: ■ 12kV Switchgears SWGR-DCA-A and SWGR-DCA-B (includes breaker monitoring/control and remote transfer scheme operation). Note that the existing 12kV switchgear has an automatic transfer scheme in accordance with OCSD's standards. ■ 12kV switchgear station battery charger and associated bypass switch. ■ Plant Water Pump Station 12.47kV to 480V oil-filled transformers ■ New SEL 12kV protection relays Sept. 2019 J-98 Design SOW (Negotiated) Page 7 of 55 ■ Add building in remote/local status per Exhibit 12A. ■ Add `Room Strobe' and `Room Speaker' equipment and associated signals per Exhibit 12A. o Provide new PLC/RIO cabinet for electrical SCADA. The new PLC will tie into the ICS network cabinet in DC-A that is to be installed per P2-107 documents under Contract J-117B. o This project will integrate with the J-117B design and implement the modifications. Integration primarily includes the ICS and Substation LAN network systems. Any required integration documents shall be produced by this project. 3. Power Building B (PB-B): o Replace transformers TFR-BA, BB and BC with new delta-wye, high-resistance grounded, liquid-filled substation transformers and locate outside on the west side of PB-B. Provide secondary containment. Demolish existing transformers. Existing transformers are located inside the building. o Project P2-92 demolished most of the loads from MCC-RC. Perform load calculation at SWGR-RC and SWGR-DCSL. Based on the calculations refeed MCC-RC and MCC-DW from SWGR-DCSL and demolish remaining unused switchgear, MCC, transformer, load interrupting switch, and feeders. If evaluation deems that SWGR-DCSL becomes overloaded, then size new transformer TFR-BC to support the revised loads on SWGR-RC. o Provide breaker control and monitoring for all breakers on SWGR-DCSL per Exhibit 12A. Switchgear includes an automatic transfer switch that shall be incorporated into the monitoring and control. o Add `Room Strobe' and `Room Speaker' equipment and associated signals per Exhibit 12A. o Add building in remote/local status per Exhibit 12A. o Provide all transformer alarm points per Exhibit 12A for new Transformers TFR- BA, TFR-BB, TFR-BC. o Provide electrical HMI Panel within PB-B or an alternate OCSD accepted location if space is inadequate within PB-B. o Provide a new electrical PLC panel in PB-B to wire up the new electrical SCADA points. Modify the existing PB-B process PLC panel by moving over the PB-B process PLC signals over to the digester rack, located within the same panel. Demolish the PB-B process PLC. If space is not adequate within PB-B for a new electrical PLC panel, then modify the existing process PLC panel at PB-B to accommodate new electrical PLC. 4. Power Building C (PB-C) o Replace transformer TFR-CA with new delta-wye, high-resistance grounded, liquid-filled substation transformer and locate outside. Provide secondary containment. Demolish existing transformer. Existing transformer is located inside the building. Sept. 2019 J-98 Design SOW (Negotiated) Page 8 of 55 o Replace switchgears CPB and SB with arc-resistant switchgears and re-feed all existing loads. Refer to Project Execution section of this scope of work regarding spacing and construction sequencing requirements. o Provide all Exhibit 12A signals for the new switchgears and existing ATSs. o Add `Room Strobe' and `Room Speaker' equipment and associated signals per Exhibit 12A. o Provide electrical HMI Panel within PB-C or an alternate OCSD accepted location if space is inadequate within PB-C. o Provide all transformer alarm points per Exhibit 12A. o Provide all required conduit and wiring from above monitored/controlled equipment to electrical PLC/RIO cabinet to be located in PB-C by Project J- 11713. 5. Power Building D (PB-D) o Replace transformer TFR-DA with new delta-wye, high-resistance grounded, liquid-filled substation transformer and locate outside. Provide secondary containment. Existing transformer is located inside the building. o Replace MCC-G with new arc resistant MCC and re-feed all existing loads form the new MCC. o Demolish MCC-FA and re-feed all existing loads from new MCC-G. o Replace ATS, generator breaker, and incoming normal source breaker with new ATS and breakers. Existing transfer scheme and generator start functionality shall be incorporated into the new design. o Provide all transformer, generator, breaker, ATS, and TVSS points per Exhibit 12A. 6. Distribution Center D (DC-D) o Replace Aside 12kV feeder from CEN-GEN to DC-D. 7. CABLES o SWBD-OBC Replace existing #4 conductors feeding the elevator (located in the Operations Center fed by breaker OBC413) with #1 conductors. (SLD indicates #4 conductors, with 80A CB). Replace cable and its feeder breaker to the appropriate size. 8. Sizing Evaluation and Modification o SWBD-OBC J-25-4 study identified a sizing issue with circuit breaker OBC-413 (80A feeding elevator). Replace circuit breaker to the appropriate size. o SWBD-MBB (Maintenance Building) J-25-4 study identified a sizing issue with circuit breaker MBC-403 (40A feeding Valve 322). Replace circuit breaker to the appropriate size. Sept. 2019 J-98 Design SOW (Negotiated) Page 9 of 55 o MCC-MBC J-25-4 study identified a sizing issue with circuit breaker MBC-408 (200A feeding AHU3000 Valve— 83HP). Replace circuit breaker to the appropriate size. PROJECT ELEMENT 3 — IMPLEMENT LOAD SHEDDING AND ARC FLASH MITIGATION SCHEME AT PLANTS 1 AND 2 To increase the reliability and probability of Cen Gen remaining in operation during an SCE power outage (loss of utility power source), a load shedding scheme and substation LAN will be implemented. Relay-to-relay communications will utilize the substation LAN to support communications for a "virtual-main" protection scheme to reduce arc flash levels. The scheme should be similar to the scheme utilized in Project J-117B. See Exhibit 13B for the scheme to utilize where the low voltage switchgear and its upstream source medium voltage switchgear are in close vicinity to one-another (where hard-wired trips are feasible). See Exhibit 13A for the scheme to utilize where the low voltage switchgear and its upstream source medium voltage switchgear are far away from one-another (where IEC 61850 communications are necessary over the Substation LAN network to send trip signals to one-another). The fail status (trouble alarm) of the existing SEL protection relays located in the 12kV Service Center and Cen Gen are presently being monitored per the Exhibit 12A requirements. The existing feeder breaker protection relays presently have an Ethernet cable connected to the ICS network cabinet. The protection relays associated with the main (351), tie (351A), Cen Gen feeder (311 L), and central generators (3000) utilize serial communications. Provide network communication cables to all replaced and existing protection relays as required by SEL. Exhibit 12A signals shall be added for any new protection relays to the electrical PLCs located in the associated building. A portion of the engineering services for load shedding and arc flash mitigation will be performed by SEL. The remaining portion of the engineering services to complete the design will need to be performed under this scope of work by the CONSULTANT. A summary of the modifications at the various buildings is as follows: Plant 1 • 12kV Service Center (12kV SWGR-ESC BUS A and BUS B) o Replace and upgrade certain existing intelligent electronic devices (IEDs) to achieve design requirements (identified by SEL as being the 351, 351A, 311L protection relays and RTAC). The term IEDs include protection relays, as well as other interface devices such as SEL time clocks and RTAC (real time automation controller). o Add PRP (parallel redundancy protocol) and PTP (precision time protocol) hardware to interface with existing protection relays. Details of design modifications will be provided by SEL. o Add load shed functionality (all main and feeder breakers) Sept. 2019 J-98 Design SOW (Negotiated) Page 10 of 55 o Add Auto-Synchronization via the IEC 61850 communication to the 12kV Service Center main breakers (requirements include communication between generator protection relays and the 12kV Service Center main breaker protection relays and interface with the generation controls to allow selection of synchronization at either Cen-Gen main breakers or 12kV Service Center main breakers — presently only the hardwired Cen-Gen synchronization functionality exists which will remain in the new design) o Add Potential Transformer (PT) inputs for all protection relays to enable power data collection o Add circuit breaker opened and closed status to all protection relays o Add racked-in status to all protection relays for all breakers o Add a load shed controller and HMI o Add substation LAN connectivity and hardware • CenGen Distribution Switchgear (12kV SWGR-CGS BUS A and BUS B) o Replace and upgrade certain existing IEDs to achieve design requirements (identified by SEL as being the SEL 351, 351 A, 311 L protection relays and RTAC). o Add hardware to interface with existing protection relays (PRP and PTP). Details of design modifications will be provided by SEL. o Add load shed functionality (all main and feeder breakers) o Add an HMI in the Cen Gen control room on the second floor o Add PT inputs for all relays to enable power data collection o Add circuit breaker opened and closed status to all protection relays o Add racked-in status to all protection relays for all breakers o Add substation LAN connectivity and hardware • CenGen Generator Switchgear (12kV BUS G) o Replace existing SEL 300G relays with new SEL 400G or 700G as required to achieve design requirements o Add hardware to interface with existing protection relays (PRP and PTP). o Add PT inputs for all relays to enable power data collection o Add circuit breaker opened and closed status to all protection relays o Add racked-in status to all protection relays for all breakers • Power Building 7 (480V SWGR-7-A and SWGR-7-B) o Add new SEL relays for transformer virtual main (location for relay-relay tripping via 61850 communication) o Add substation LAN connectivity and hardware • Power Building 8 (480V SWGR-TFA and SWGR-TFB) o Add new SEL relays for transformer virtual main (location for relay-relay tripping via 61850 communication) o Add substation LAN connectivity and hardware • Power Building 9 (480V SWGR-LA-A and SWGR-LA-B) o Add new SEL relays for transformer virtual main (location for relay-relay tripping via 61850 communication) o Add connectivity from the existing GE F60 protection relays to the Substation LAN network o Add substation LAN connectivity and hardware Sept. 2019 J-98 Design SOW (Negotiated) Page 11 of 55 • Blower Building 1 (4.16kV SWGR-BLOWER) o Replace electromechanical relays with SEL protection relays for the main breakers located at the 4.16kV SWGR-BLOWER. These main breaker and associated relays are located outside adjacent to their power source transformers. o Add load shed functionality for the two main breakers via the new SEL relays o Add PT inputs for the new SEL relays to enable power data collection for the main breakers o Add circuit breaker opened and closed status to the new protection relays for the main breakers o Add racked-in status to the new protection relays for the main breakers o Add substation LAN connectivity and hardware • Blower Building 2 (12kV SWGR-J-A and SWGR-J-B, 480V SWGR JB-A and SWGR JB- B) o Add new SEL relays for transformer virtual main (location for relay-relay hard- wired tripping) o Add connectivity from the existing GE Multilin and F60 protection relays to the Substation LAN network o Add substation LAN connectivity and hardware • Thickening and Dewatering Building (12kV SWGR-Q-A and SWGR-Q-B, 480V SWGR- QA-A, SWGR-QA-B, SWGR-QC-A, SWGR-QC-B) o Add new SEL relays for transformer virtual main (location for relay-relay hard- wired tripping) o Add connectivity from the existing GE Multilin protection relays to the Substation LAN network o Add a load shed controller and HMI at this location o Add substation LAN connectivity and hardware • Steve Anderson Lift Station — SALS (480V SWGR-HB-A and SWGR-HB-B) o Add new SEL relays for transformer virtual main (location for future relay-relay tripping via 61850 communication). The upstream medium voltage power source for this is from Power Building 3. A separate project (Project P1-105) will install new relays at Power Building 3. That project will provide programming for relay-relay tripping via 61850 communication. This project will install the relays and the CTs wiring at SALS. o Add substation LAN connectivity and hardware • Power Building 5 o Add substation LAN connectivity and hardware As a clarification note, new SEL relays at this location will be designed, programmed, and installed by a separate project. However, this Substation LAN addition will be part of this scope of work. • New (Future) Power Building 3 o New SEL relays will be designed, programmed, and installed by a separate project (Project P1-105). This project should account for the new Substation LAN location at Power Building 3 during the network design. • Control Center o Add an HMI in the Control Center • Electrical Maintenance Building o Add an HMI in the electrical maintenance supervisor work area Sept. 2019 J-98 Design SOW (Negotiated) Page 12 of 55 • Power Building 6 o Replace electro-mechanical relays with SEL Relays (Including Door Replacements) o Add substation LAN connectivity and hardware Plant 2 • Distribution Center A (12kV SWGR-DCA-A and SWGR-DCA-B) o Replacement of existing relays, including door replacements, with new SEL relays (location for relay-relay tripping via 61850 communication). o Add DC-A to Substation LAN ring between Headworks Standby PB and Cen- Gen. This will require a new air-blown fiber optic cable between DC-A and Cen Gen. OCSD will provide information detailing available tube cell pathway for new fiber. • Power Building B (480V SWGR-DCSL-A, SWGR-DCSL-B, and SWGR-RC) o Add new SEL relays for transformer virtual main (location for relay-relay tripping via 61850 communication) by extending relay-to-relay communications to DC-A substation LAN using a fiber optic cable and copper to fiber converters at PB-B and DC-A. o Add substation LAN connectivity and hardware • Power Building C (480V SWGR-CPB — new replacement switchgear) o Add new SEL relays for transformer virtual main (location for relay-relay tripping via 61850 communication) o Connect relays at this location to the Power Building B Substation LAN via a SEL RTAC (Real Time Automation Controller) • Power Building D (480V MCC-G — new replacement MCC) o Add new SEL relays for transformer virtual main (location for relay-relay tripping via 61850 communication) o Connect relays at this location to the Power Building B Substation LAN via a SEL RTAC (Real Time Automation Controller) WORK TO BE DONE BY SEL AT PLANTS 1 AND 2 SEL will develop the Substation LAN functional design, design the overall Substation LAN topology, program, test, and commission a fully functional load shedding system utilizing IEC- 61850 based substation LAN. The CONSULTANT will perform the detailed design for all switchgear, breaker control schemes, IEDs, and networking based on SEL's functional design. IEDs include protection relays and associated interface devices such as time clocks, controllers, redundancy boxes, etc. The system will be designed to perform relay-to-relay tripping and time synchronization using PTP protocol. The system will collect sequence of events data from all protective relays, including existing capable (GE F60, GE Multilin, SEL, etc.) relays. The substation LAN system shall be a stand-alone, redundant, dual ring topology PRP network system. SEL will be validating that this topology yields the optimal results and may modify the topology upon further evaluation early in the design phase. The proposed hardware system will be identical to that used by Project J-117B unless newer versions of the hardware have been released by SEL. Sept. 2019 J-98 Design SOW (Negotiated) Page 13 of 55 SEL will evaluate the use of existing SEL relays to implement the load shedding system at the Plant 1 12kV Service Center and Cen-Gen switchgears. Modifications and additional hardware to integrate into the load shedding system will be required. If the existing relays are lacking required features to meet the full intent of the load shedding system, then new hardware will be necessary. SEL will provide the network topological diagrams (that illustrate overall Substation LAN topology), sample network riser diagrams (providing detailed examples of cabling between each model IED to be connected and its local Substation LAN switches), and the front-end engineering report (which will evaluate existing hardware capability and provide proposed new hardware and design solutions) in the early part of the design. The level of effort for this Scope of Work includes coordination and integration with the SEL design elements. Table 1 has been provided to identify the overview of work to be done by others for the Substation LAN to help facilitate integration into the CONSULTANT's design. SEL will provide certain engineering services for the Substation LAN which shall be integrated into the CONSULTANT's design by the CONSULTANT. The CONSULTANT shall provide all detailed drawings and specifications to provide a complete set of Contract Documents. Table 1 — Overview of Work to be Done by Others for the Substation LAN Phase SEL CONSTRUCTION CONTRACTOR - Network Block Diagrams (Topological and - None. Sample Riser Diagrams) - Front-end Engineering Design (FEED) Preliminary Design/ - Functional Design Specification Design - Load Shed & Substation LAN Specification - Testing and Associated Procedures - All Required Development in the Design Phase: Programming - Including SCADA, IEDs, Controllers, and Network - All Required Development in the Construction/ - NETA Testing Commissioning Phase: Development- Including - As-built Switchgear Elevation SCADA, IEDs, Controllers, and Network Systems Drawings Construction/ - Testing and Associated Procedures - As-built Switchgear Wiring Commissioning - Training (Interconnect)drawings /Close-out - As-built 3-line Drawings - Procurement and Installation of Hardware & Services per Construction Contract Requirements Sept. 2019 J-98 Design SOW (Negotiated) Page 14 of 55 COORDINATION WITH OTHER PROJECTS The following projects may impact or require coordination with this project: • P1-105 Headworks Rehabilitation and Expansion at Plant 1. This project will rehabilitate and upgrade facilities at the Plant 1 Headworks. Facilities to be rehabilitated include the Metering and Diversion Structure, the Bar Screen Building, the Bin Loading Building, the Main Sewage Pump Station, the Grit Basins, the Primary Influent channels, the Headworks Odor Control Scrubbers, replace existing PB-3A with new power building PB-3 (including a new server room), and electrical power distribution and control systems. The project will also include demolition of the original Headworks No. 1 facilities and the unused Chlorine Building pumps project. • P1-132 Uninterruptible Power Supply Improvements at Plant 1. A new regional UPS will be installed at Power Building 8 to provide critical power to facilities at the northwest region of Plant 1. Existing UPS status and alarm signals will be modified to reflect their replacement with a power distribution unit (PDU) and automatic transfer switch at the Control Center, Power Buildings 7 and 8, and Primary Clarifiers 6-31 east and west electrical rooms. This project will also replace old electrical cables, step-down transformers, distribution and branch circuit panelboards at Buildings A, B, 5, 6, Warehouse, and Fleet Services. All work in this area requires a city of Fountain Valley permit. • P1-128 Headquarters Complex. This project will construct the new Headquarters Building on the north side of Ellis Avenue to house OCSD staff. The project includes the demolition of the HR Building, Risk Trailer, and other buildings on the Ellis and Bandilier properties. • J-117B Outfall Low Flow Pump Station. This project performs several modifications at Plant 2. This project rehabilitates the medium voltage OOBS pumps, adds new pump station facilities, adds SCADA functionality to electrical equipment, adds a new ICS (industrial control system) network, performs switchgear modifications including adding new SEL relays, adds a load shed system, adds a new Substation LAN, and other miscellaneous electrical upgrades throughout various facilities at Plant 2. • P2-98 Primary Treatment Rehabilitation at Plant 2. This project rehabilitates the Plant 2 primary clarifiers. This project also demolishes and performs addition of the associated electrical systems. The project will be constructed in several phases spread throughout several years. Sept. 2019 J-98 Design SOW (Negotiated) Page 15 of 55 III. PROJECT SCHEDULE MILESTONE DEADLINE Kickoff Meeting The kickoff meeting will be scheduled to coincide with the Preliminary Design NTP Submit draft Preliminary Design 100 workdays from the Preliminary Design NTP. Report (PDR) CONSULTANT shall establish a schedule with the OCSD PM for separately submitting working drafts of each Design Memo for OCSD review prior to completing the draft PDR. This schedule shall factor in the logical sequence for completing the memos as well as both CONSULTANT and OCSD resources OCSD Review 15 workdays from receipt of Draft PDR of draft PDR Submit final Preliminary Design 15 workdays from receipt of OCSD comments on Report Draft PDR Final Design CONSULTANT's schedule shall allow 10 working Notice to Proceed days from submittal of the final PDR to receipt of the Design Phase NTP Submit Design Submittal 1 (DS1) 80 workdays from Design Phase NTP OCSD Review 20 workdays from receipt of DS1 of DS1 Submit Design Submittal 2 (DS2) 80 workdays from receipt of OCSD comments on DS1 OCSD Review 20 workdays from receipt of DS2 of DS2 Submit Design Submittal 3 (DS3) 80 workdays from receipt of OCSD comments on DS2. OCSD Review 20 workdays from receipt of DS3 of DS3 Submit Final Design Submittal 40 workdays from receipt of OCSD comments on (FDS) DS3. CONSULTANT shall stop work upon submission of DS3, except as required to participate in OCSD meetings, until receipt of OCSD comments on DS3 OCSD Review 15 workdays from receipt of FDS of FDS Final Technical Specifications and 20 workdays from receipt of OCSD comments on Plans FDS Sept. 2019 J-98 Design SOW (Negotiated) Page 16 of 55 The time frames specified in Table 1 are used to estimate the actual milestone dates based on the assumed NTP date, as shown in Exhibit 2. OCSD will consider an alternative CONSULTANT-proposed schedule provided it is consistent with OCSD resources and schedule constraints and adds value to OCSD. IV. PROJECT EXECUTION All OCSD projects are divided into six phases. CONSULTANT shall provide engineering services for all Project Elements listed in Section II of this Scope of Work for the following Phases: • Phase 1 — Project Development (Not in this Scope of Work) • Phase 2 — Preliminary Design • Phase 3 — Design • Phase 4 — Construction (Not in this Scope of Work) • Phase 5 — Commissioning (Not in this Scope of Work) • Phase 6 — Close Out (Not in this Scope of Work) PHASE 1 — PROJECT DEVELOPMENT (NOT IN THIS SCOPE OF WORK) Not in this Scope of Work. PHASE 2 — PRELIMINARY DESIGN TASK 2.1 — PREDESIGN EVALUATION STUDIES (NOT IN THIS SCOPE) TASK 2.2 - PRELIMINARY DESIGN PRODUCTION Preliminary Design Production (PDR Production) involves the preparation of design memos, drawings, calculations, and other supporting material resulting in the Preliminary Design Report (PDR). The following requirements apply to PDR Production. • Each design memo shall be submitted as a draft, along with any relevant associated drawings for OCSD review. Except where significant revisions are required, design memos need not be resubmitted prior to the compiled draft PDR. • CONSULTANT shall schedule and execute the work so that draft design memos are produced and submitted early enough that OCSD comments can be addressed and the changes incorporated into the draft PDR. All significant equipment decisions are to be made before the start of Phase 3 - Design. Sept. 2019 J-98 Design SOW (Negotiated) Page 17 of 55 At the end of Phase 2 — Preliminary Design, major design elements should be fixed and major equipment, building footprints, and major structural elements should be well defined and established. The extent of the design and the number and type of drawings should also be established. • The design memos shall clearly document exact naming conventions to be used for all equipment covered by the design memo. • Each design memo shall identify any equipment and instruments that have fewer than three competitive suppliers. In those cases, the design memo shall recommend an appropriate procurement strategy compatible with California Law and OCSD policies. Preliminary Design Report (PDR) Contents and Organization The PDR shall be structured as outlined below, with the contents corresponding to the tasks listed in this Scope of Work. Volume 1 — Preliminary Design Report Technical Memos Executive Summary Predesign Evaluation Studies Report (not in this scope of work) Design Memos Design Memo 1 — Electrical Design Memo 2 — Instrumentation and Control / Networking /Tagging Design Memo 3 — Implementation Plan Volume 2 — Drawings General Demolition Civil Landscape (NOT USED) Structural (NOT USED) Architectural (NOT USED) Mechanical (NOT USED) Electrical Instrumentation & Control Volume 3 — Submittal Documentation Calculations Equipment Data & Catalog Cuts Decision Log Meeting Minutes The Executive Summary shall summarize the conclusions of the Memos included in the report, and specifically include a summary construction schedule and construction cost estimate. The draft PDR and final PDR shall be submitted in searchable PDF format legible on-screen and as a hard copy. The number of hard copies is indicated in Exhibit 4. The following requirements apply to the labeling and organization of the PDF submittal: Sept. 2019 J-98 Design SOW (Negotiated) Page 18 of 55 • Each design memo shall be a separate file. • Drawings shall be submitted as a single compiled file, except where the size of the file would exceed 30 MB, in which case the drawings should be separated into separate files by discipline. If the file for one discipline is more than 30 MB, the file may be divided into multiple files. In no case may drawings be submitted as separate PDF files for each drawing. The order of drawings in the PDF file shall match the list of drawings. • The PDF files shall be named to include the project number, the name of the deliverable (e.g. Draft PDR, DS2, etc.), the volume, and the particular content. The files shall also be named so that the list appears in sequential order when sorted by file name. In cases where drawings are divided into separate PDF files by discipline, a number or letter shall be included in the file name so that the files are listed in the same order as the List of Drawings. The use of special characters shall not be allowed in file names. Spaces and hyphens are acceptable, however. • These requirements do not affect the organization, naming, and submittal of native files for CAD or MS Office files specified elsewhere in this Scope of Work and OCSD Engineering Design Standards. The OCSD Project Manager may request that the CONSULTANT submit an electronic proof set of the Draft PDR and Final PDR prior to hard copy production in order to initially confirm that the submittal is ready for printing. Task 2.2.1 Design Memo 1 — Electrical Design Parameters CONSULTANT shall develop the design configuration and performance requirements of the proposed facilities including the following: • Duct bank, cable and conduit sizing and routing requirements. Evaluation shall clearly depict all relevant sections of duct banks and tunnels, including all proposed changes in elevation, entry and exit points, pull box locations, pothole locations, etc. A sample cable and conduit layout are provided as a reference for both of the different "virtual- main" protection scenarios in Exhibit 13C and Exhibit 13D. CONSULTANT shall use this as a reference and design the required amount of wires, cables, and conduits. • Recommended types and configuration of equipment, including the information required to qualify and select specific equipment for the system. • Sizing parameters, such as the capacitive charging current, size of the proposed grounding resistor, the size of the load bank, panel electrical loading, etc. In development of the design configuration, CONSULTANT shall consult extensively with OCSD's staff. Sept. 2019 J-98 Design SOW (Negotiated) Page 19 of 55 Rehabilitation Requirements CONSULTANT shall prepare detailed description of the proposed rehabilitation measures for existing equipment. The descriptions shall include, as a minimum, the following material, as applicable: • Lists of existing equipment identifying where items are to be replaced, rebuilt, or rehabilitated. • Electrical system rehabilitation and replacement measures, including location of switchgears, transient voltage surge suppressors, low and high resistance grounding units, circuit breaker monitoring and control status signals, transformer replacement, load bank and 1/0 signals etc. • Wiring terminations to existing equipment shall be field verified where using spare terminals. • Rehabilitation, replacement, and improvement of instrumentation and control facilities. Note —the Design Memo should include only a summary of instrumentation and control work. Detailed descriptions are to be included in the Instrumentation and Control Design Memo. Code Requirements Identify the following that apply to the project: • Building codes and other regulations • State and federal safety standards and regulations. Design Safety Requirements Identify all potential safety issues for Contractor, public, and OCSD staff affecting the construction of all equipment, process areas, and buildings. As a minimum, the CONSULTANT shall consider the following and provide respective recommendations: • Excavation and trenching hazards • Electrical hazards • Site access The CONSULTANT shall identify all potential safety issues affecting the operation and maintenance of all equipment, process areas, and buildings. As a minimum, the CONSULTANT shall consider the following and provide respective recommendations: • Floor openings • Floor holes • Walking-working surfaces (buildings, tunnels, and outdoor equipment areas) Sept. 2019 J-98 Design SOW (Negotiated) Page 20 of 55 • Noise • Ergonomics (including equipment operation) • Clearance and passageways (for installing devices, panels, or valves). • Barricades for protection of electrical panels • Locations of equipment that may lead to a safety issue. • Applicable safety issues and solutions included in OCSD Safety Standards. Electrical Design Guidelines CONSULTANT shall obtain and adhere to OCSD's most recent Electrical Design Guidelines on the following subjects before proceeding with the preliminary electrical design. Particular subjects of concern include the following: • Tagging procedures • Relay protection guidelines • Neutral grounding • Power cable type • Surge suppression • Electrical equipment naming conventions • Distribution equipment naming convention • Configuration of standby generator set connection to the plant system. CONSULTANT shall coordinate the electrical system design with other on-going OCSD design and construction projects affecting the project area as well as with the system requirements being developed as part of the projects listed under Coordination with Other Projects under Description of Project Elements in Section II of this Scope of Work. CONSULTANT shall provide the following: • Field data collection and verification as defined in the Engineering Design Guidelines, Chapter 10, "Report— Field Data Collection and Verification". • Preliminary Load List. This list shall show all major and auxiliary electrical loads for each voltage level. Auxiliary loads may be lumped. In addition, this list shall be used to classify the equipment for asset management. This shall designate equipment items which are classified as "run to failure" for preventative maintenance or for predictive maintenance. Sept. 2019 J-98 Design SOW (Negotiated) Page 21 of 55 Electrical Design Requirements Where existing systems (electrical, I&C, process, etc.) are modified or replaced by this project, CONSULTANT shall also provide the design to upgrade the respective existing electrical distribution systems to the version of OCSD Design Standards specified in Section V "General Requirements" of this Scope of Work, including the following activities. • Evaluate the project area systems (electrical and the related systems) and the existing system philosophy. E.g.: o Manual and automatic bus transfer and control capabilities. o Interlocking o HVAC requirements for electrical and control rooms and the related electrical system requirements. o Electrical distribution equipment upgrades required due to the I&C upgrades of Design Memo 2 - Instrumentation and Control. • Identify the upgrade requirements. • Provide design for the respective upgrades. The cables associated with equipment replacements, upgrades, and relocations (MCC, control panels, mechanical equipment, etc.) shall be replaced. This replacement will be for full length. Splicing will not be allowed. OCSD's Project Manager's written approval shall be required for any deviations from the above requirements and/or the OCSD Design Standards. Task 2.2.2 Design Memo 2 - Instrumentation and Control / Networking / Tagging Instrumentation and Control CONSULTANT shall provide a list of monitoring and control signals required at each building as required by Exhibit 12A. For the Power Building D (PB-D) - Evaluate connecting new electrical SCADA points to an existing nearby electrical PLC and also to the existing process PLC at the north scrubber complex. Based on OCSD acceptance, proceed with optimal option in design. Networking CONSULTANT shall provide descriptions of their findings on the fiber routing between buildings. Additionally, the CONSTULTANT shall provide a building by building summary of the field investigations of existing panels, power sources, location of new networking equipment, and the proposed modifications. Sept. 2019 J-98 Design SOW (Negotiated) Page 22 of 55 Tag Numbering System Provide the basis for equipment tag numbers as developed from block of numbers provided by OCSD. CONSULTANT shall develop proposed Area Numbers for OCSD review and approval. The development shall follow OCSD tagging procedures. (see Design Standards, Tagging Procedure standard) OCSD's Project Manager's written approval shall be required for any deviations from the above requirements and/or the OCSD Design Standards. Task 2.2.3 Design Memo 3 - Implementation Plan This Design Memo shall address issues affecting and affected by the implementation of the proposed project. Contents of the Design Memo shall include the following issues: Identification of Adjacent Projects The CONSULTANT shall identify and describe projects (including projects previously identified in this Scope of Work) which might impact or be impacted by this project. Adjacent projects may include OCSD and any other known non-OCSD project that might require coordination with the project. The description shall document spatial aspects of the adjacent projects, their schedule, and any other interdependencies. The Design Memo shall describe the type of coordination required to minimize negative impacts on all of the projects. Preliminary Construction Sequencing Plan The plan shall include the following material: ■ Description of sequencing constraints and the reasons for those constraints. ■ Implementation alternatives that might expedite construction and commissioning, avoid sequencing constraints, and/or mitigate schedule and cost risks. ■ A detailed narrative describing a likely sequence for how construction and commissioning would be completed. The purpose of the narrative is not to decide exactly how the project should be completed, but to demonstrate that there is at least one viable method to complete the work, and to clarify what risks may be associated with that plan. The narrative should include sequential graphics clearly describing how the work can be phased. ■ A CPM construction schedule showing in the interrelationships of the elements of the project. The schedule shall be prepared using software intended for schedule projects. Examples of acceptable software packages include Microsoft Project and Primavera. ■ Coordination with planned outages, construction cutover, construction activities from contiguous projects, temporary feeds to maintain existing system, etc. Sept. 2019 J-98 Design SOW (Negotiated) Page 23 of 55 Review of Constructability Issues The Design Memo shall describe all project-specific issues that might impact bidding, construction, and commissioning. The Design Memo shall describe the following aspects of each issue: • The consequence of the issue occurring. • The likelihood that the issue will occur, including what factors would cause it to occur, or not. • Suggested mitigation measures and when mitigation measures might be implemented. • Potential project changes and approaches that may be warranted to address the issue. Preliminary Design Construction Cost Estimate The CONSULTANT shall prepare an AACE International Class 3 cost estimate per OCSD's Engineering Design Guidelines, Chapter 01. A sample construction cost estimate format is provided in Exhibit 5. Data used to prepare the cost estimate, including vendor quotations, shall be included as an attachment to this Design Memo. Demolition Equipment and Instrumentation Databases (EIDs) CONSULTANT shall identify all equipment and instruments listed in the existing EIDs that will be demolished. The identification shall be noted in the MS Excel spreadsheets to be submitted with the PDR. Task 2.2.4 Preliminary Design Drawings Preliminary Design drawings shall be bound into a separate volume. Drawing requirements by discipline are described below. General Drawings General drawings shall include: • Cover sheet including location and vicinity maps • Index of drawings • Abbreviations • Legends and symbols Sept. 2019 J-98 Design SOW (Negotiated) Page 24 of 55 Demolition Drawings Preliminary Design demolition drawings shall include a site plan indicating the location of structures to be demolished along with mark-ups of key record drawings that illustrate the extent of demolition proposed, including sections depicting the proposed depth of demolition. Civil Drawings Civil drawings shall include: • Overall site plan • Horizontal control, paving, and grading showing each structure at 1"=20' scale or as required. • Yard piping plans at 1" = 20' scale (or as required) showing the location and routing of buried pipelines greater than 12-inch diameter size and smaller diameter process piping (down to 8-inches in diameter) if the routing is critical to the site layout. Structural Drawings Structural drawings shall include: • Ground and roof plans • Illustrative sections • Key project-specific details required to illustrate key connections, including to existing structures. Architectural Drawings (NOT USED) Mechanical Drawings Mechanical drawings shall include the following: • Layout plans showing the location of all major equipment, major pipe sizes, major valve locations, access routes. • Sections illustrating the proposed layout of equipment and piping. Electrical Drawings Electrical drawings shall include the following: • Preliminary Electrical Site Plan. This is a preliminary site plan that shows routing of major electrical duct banks. This sketch will not be included in the final plans since final electrical plans will show the same information in more detail. See Engineering Design Guidelines, Appendix A, Section A.2.9 "Electrical Plan Drawings" for requirements. Sept. 2019 J-98 Design SOW (Negotiated) Page 25 of 55 • Single-line Diagrams. Single-line diagrams shall show all major electrical loads from the MCC level up. Load shall include all equipment shown on the process flow diagrams. The single-line diagrams shall also show preliminary information regarding auxiliary system and equipment such as HVAC, lighting, sump pumps, UPS, etc. This will enable the CONSULTANT to conservatively size equipment, rooms, and occupancies at this preliminary design point including loads and dimensions. See Engineering Design Guidelines, Chapter 10, Section 10.3.3 "Single-Line Diagrams", Engineering Design Guidelines, Chapter 10, Section 10.7 "Distribution System Requirements" and Engineering Design Guidelines, Appendix A. • Power Building, Electrical and Control Room Plans which shows equipment location and conduit routing. See Engineering Design Guidelines, Appendix A. • Demolition Plans and Demolition Single-Line Diagrams for major equipment such as MCCs, switchgear, transformers, and control panels. Instrumentation and Control Drawings Instrumentation and control drawings shall include the following: • Process and Instrumentation Diagrams (P&IDs). Preliminary Design P&IDs shall show all major equipment, instruments, and most auxiliary equipment. P&IDs shall also be developed for the electrical SCADA points. Where the project includes multiple parallel systems, P&IDs need only be prepared for one of the systems. Replication will not be required until Phase 3 - Design. All P&IDs included with the PDR shall be complete, with no missing equipment, instruments, piping, sampling provisions, metering, etc. Equipment block numbers, however, should not be included in PDR P&IDs. Provide P&IDs for all SCADA equipment, with the exception of the Plant 1 electrical SCADA points. See Engineering Design Guidelines, Appendix A. • Demolition Process and Instrumentation Diagrams. CONSULTANT shall manually annotate existing P&IDs to indicate what equipment, piping, instruments and controls will be demolished by the project. This information shall be used to prepare Demolition EIDs specified in Task 2.2.3. TASK 2.3 - PROJECT MANAGEMENT CONSULTANT shall be responsible for managing CONSULTANT's project execution, schedule, budget, subconsultants, and coordination with other projects. The following project management requirements apply to both Phase 2 — Preliminary Design and Phase 3 - Design. Task 2.3.1 Project Management Plan (Not Used) Task 2.3.2 Project Management Progress Meetings CONSULTANT shall prepare an agenda and conduct monthly project management meetings with OCSD's Project Manager and the CONSULTANT's Project Manager. The purpose of the meetings will be to review CONSULTANT's Progress Report. Meetings should be arranged so that the most recent Progress Report is available for the meeting. Other meetings shall be scheduled on an as-needed basis. Sept. 2019 J-98 Design SOW (Negotiated) Page 26 of 55 Task 2.3.3 Project Schedule CONSULTANT shall create a detailed project schedule using a Critical Path Method approved by OCSD Project Manager. The schedule shall be cost loaded and capable of calculating earned value. The schedule shall include milestones for all dates listed in Section III — Project Schedule. The schedule shall be based on the same work breakdown structure used for estimating earned value as described in "Progress Reports" above. Schedule updates shall be submitted with the monthly Progress Report. At a minimum, the schedule shall indicate the following: • Projected start date and finish date for each activity • Each project task and subtask in the WBS with predecessors and successors • Major meetings and workshops • Physical percent complete for each activity in the WBS and percent complete by Phase CONSULTANT shall prepare planned, actual and earned value curves for the Baseline Schedule and for monthly updates. Monthly updates shall also include Cost Performance Index (CPI) and Schedule Performance Index (SPI) calculations. Task 2.3.4 Project Logs CONSULTANT shall produce and maintain on at least a monthly basis the following logs through the course of the project: Project Decision Log. The project decision log shall track decisions made during workshops and meetings, and as a result of OCSD review of deliverables. The log shall include the date of the decision, the title of the meeting where it was made (if applicable), a description of the decision, and a brief summary of the impacts. Action Item Log. The action item log is used to track action items generated during meetings. Action items may only be assigned to members of the OCSD or CONSULTANT teams. If action is required by a different party, the action item shall be assigned to the person on the team to track who will track the action item with that person. The action item log is not intended to include normal CONSULTANT tasks, nor to include comments on deliverables. The Action Item log shall include a tracking number (typically coded to the date), a date it was created, a description of the action required, the lead person, and the date it was resolved. If action is required by more than one person, the person who will be asked to coordinate that action shall be listed. Design Issues Log. The Design Issues log shall list general comments and concerns raised by OCSD staff during project meetings. An example of a design issues would be a request raised during Preliminary Design for a particular type of hose bibb to be used during construction. Such detail is not usually provided during Preliminary Design, so the comment would be tracked on the Design Issues Log to be verified prior to completion of the detailed design. This log is not intended to track OCSD comments on submittals. The log shall include a very short description of how the design issue will be addressed. The Design Issues log will be used during review of major submittals to confirm that the issue has been appropriately addressed. Sept. 2019 J-98 Design SOW (Negotiated) Page 27 of 55 Meetinq Log. See Task 2.5 and Task 3.7 Workshops and Meetings, Workshop and Meeting Planning. Task 2.3.5 Progress Reports CONSULTANT shall submit monthly progress reports at the same time as monthly invoices that include the following contents: • Work activities completed to date, in the current reporting period, and projected for the coming month. • A brief description of outstanding issues and their potential for impact on scope, schedule (design and construction), budget (design and construction) and quality. • Potential changes in the project scope or design scope. • Budget status including estimates of actual costs to date, earned value, costs to complete, and costs at completion. The budget status over time shall be presented on a graph with associated tabular data indicating for each month the actual costs incurred, earned value, and planned value. • A discussion of corrective actions to be taken to avoid or mitigate cases where estimated costs at completion exceed budgets. • Schedule status, including an updated project schedule as a color hardcopy and as a native format electronic file. • A discussion of corrective actions to be taken to avoid or mitigate cases where the project schedule is expected to be delayed. • Updated Project Decision Log • Updated Action Item Log • Updated Design Issues Log • Updated Meeting Log • Updated Risk Management Log • Summary of the status of CONSULTANT invoices, including identification of invoices not yet submitted and submitted but unpaid invoices. • Overall project budget and schedule completion in graphical format on the same graph. Show actual budget used, original schedule completion, and actual estimated project completion on the graph. • The approved WBS shall form the basis for reporting the status of each Scope of Work task in the monthly project Progress Report and the project Invoices. Sept. 2019 J-98 Design SOW (Negotiated) Page 28 of 55 All calculations of earned value and estimates to complete shall be made at the same level of detail as included in the Cost Matrix and Summary submitted with CONSULTANT's proposal. Furthermore, for estimating earned value, tasks shall be further broken down to subtasks of no more than $100,000. Progress reports shall include the basis for estimating earned value for each task and subtask. Task 2.3.6 Project Invoices CONSULTANT shall prepare and submit monthly invoices to OCSD no later than the first Wednesday of the following month. Invoices shall be submitted for every month that work is being performed, unless OCSD's Project Manager has provided prior approval for combining the work of two months into a single invoice. The invoices shall document the man-hours and billing rate for each person that works on the project. Overhead, profit and any direct costs shall also be shown for each task. As part of the summary section of the invoice, CONSULTANT shall also include the following information: • Budget • Current billing period invoicing • Previous billing period "total invoiced to date" • Budget Amount Remaining • Current billing period "total percent invoiced to date" Although CONSULTANT is required to track costs at the same level of detail as in the Cost Matrix and Summary for monthly Progress Reports, costs for invoicing shall be grouped into the following work packages. Work Package Description Tasks 3146 Preliminary Design All Phase 2 tasks, except those listed above. 3250 CONSULTANT Services During Tasks 3.5 through 3.8 Design 3251 Design Submittal 1 Tasks 3.1 through 3.3, divided into effort by 3252 Design Submittal 2 design submittal. FDS is charged against DS3 3253 Design Submittal 3 3254 Bid Support Services Task 3.4 Approval of an invoice by OCSD requires a Progress Report for the period covered by the invoice. Payment of an invoice will be delayed until the Progress Report is submitted. OCSD will provide a sample invoice structure to CONSULTANT at the beginning of the project. Sept. 2019 J-98 Design SOW (Negotiated) Page 29 of 55 Task 2.3.7 Management of Subconsultants The CONSULTANT shall be responsible for managing all subconsultants, including the assignment of scope, management of deliverables and schedules, reporting of progress, invoicing, and quality control. TASK 2.4— RISK MANAGEMENT OCSD staff will develop a project-specific Risk Management Plan (RMP) and update the plan at key points in the project. CONSULTANT shall assist OCSD in managing risks per the tasks described below. The RMP is intended to cover evaluation phase, preliminary design phase, design, and construction phase risks. OCSD staff will prepare and manage the RMP documents. CONSULTANT's responsibilities for preparing the RMP consist of participation in the risk Workshops, maintaining a log of risk mitigation measures, and providing risk updates in monthly progress reports. Task 2.4.1. — Initial Risk Workshop An Initial Risk Management Workshop will be held shortly after the beginning of the Preliminary Design effort. Attendees will include OCSD's project team. CONSULTANT's Project Manager and Project Engineer shall prepare for and participate in the workshop. The purpose of the workshop will be to initially identify the key project-specific risks and discuss which risks warrant additional attention as the preliminary design and detail design progresses. CONSULTANT shall prepare the minutes for this Workshop. Task 2.4.2— Preliminary Design Risk Management Workshop A Preliminary Design Risk Management Workshop will be held at least 4 weeks prior to submittal of the Draft Preliminary Design Report. The Workshop will be utilized to: • Identify key project-specific risks • Characterize the nature of the impact of each risk should it occur • Characterize how likely the risk is to occur Identify potential mitigation strategies that should be implemented, or be ready to be implemented to address each risk Task 2.4.3 Risk Mitigation Measure Log Following OCSD's completion of the RMP, CONSULTANT shall prepare a log of all the mitigation measures recommended in the plan to be implemented. The log is likely to include measures to be taken during preliminary and final design, as well as during bid phase and construction. The log is not intended to track mitigation measures that would be implemented only when a particular risk occurs. The log shall include the following information for each recommended mitigation measure: Sept. 2019 J-98 Design SOW (Negotiated) Page 30 of 55 • A brief description of the mitigation measure and the risk it is intended to address. • A description of who has the lead to implement the measure. • What components of the project design, specification, plans and other documents would need to incorporate or address the measure? • The time frame for completing the measure. • A brief summary of the status of the measure, to be used in on-going updates. The Risk Mitigation Measure Log will be used for on-going risk management and as a basis of reviewing CONSULTANT submittals. Task 2.4.4 Risk Monitoring Updates Prior to monthly Project Management Meetings, CONSULTANT shall review the RMP and update the Risk Mitigation Measure Log. The monthly Progress Report shall include a discussion of the following risk issues: • Identification of all risks included in the RMP that have occurred since the last monthly report • Identification of all risks included in the RMP that have been resolved or are no longer a risk • Identification of new risks that have occurred or been identified since the last progress report. • An update of the Risk Mitigation Measure Log reflecting the status of each recommended mitigation measure. The risk discussion in the monthly progress report shall be included in the agenda of the monthly project management progress meeting. TASK 2.5— PDR PRODUCTION WORKSHOPS AND MEETINGS CONSULTANT shall hold meetings and workshops throughout the project to keep OCSD appraised of the job, review work-in-progress, share information, discuss project submittals, present findings of technical analyses, receive and resolve comments, and obtain decisions and direction by OCSD staff. This task defines the major meetings and workshops to be held by the CONSULTANT in accordance with the requirements of OCSD's Engineering Design Guidelines. CONSULTANT shall also hold additional meetings as required to keep OCSD apprised of the job, to review work-in-progress, and to receive and resolve comments. When informal meetings or conference calls are held during the course of the project, the CONSULTANT shall document all conclusions reached in those meetings by an email to the OCSD Project Manager and Project Engineer describing the context of the meeting, the discussions, and the conclusions. The email shall be sent within 3 workdays of the information meeting or conference call. Discussions and decisions made without documentation from an email will not be recognized as having occurred. Sept. 2019 J-98 Design SOW (Negotiated) Page 31 of 55 Workshop and Meeting Planning Due to limited OCSD staff availability, some meetings may need to be scheduled up to four weeks in advance to find a time when all the required OCSD team members are available. On projects with many meetings, there is also a potential that a meeting will not be held until it is too late. To prevent this, the CONSULTANT Project Manager shall create and maintain a log of all anticipated meetings. The log shall also be used to track submission, review and finalization of agendas and minutes. The log shall include, as a minimum, the following information for each meeting: • Subject of meeting. If the meeting is specifically included in the scope, use that title. Provide enough of a description that no two meetings have the same exact subject description. • Scheduling Reference. Examples might include "4 weeks after Kickoff Meeting", "Upon submittal of DM 5", or"1 week after receipt of the draft DM." • Date. If the meeting is too far in the future to schedule, indicate that this date is tentative. • Date Minutes Drafted. This should be the date that the draft minutes were transmitted to OCSD. • Date Minutes Reviewed. This should be the date that OCSD transmitted its comments on the minutes or indicated that there were no comments on the minutes. Workshop and Meeting Agendas CONSULTANT shall submit an agenda to OCSD for review at least one week prior to each meeting and workshop. The agenda shall include the following: • Topics: A listing of each topic to be covered with sufficient detail so that OCSD attendees can reasonably determine if their participation is needed or not. A one-line description is not typically sufficient for the purpose. The topic description shall include what information will be presented, and what decisions will be needed. • Timing: The proposed timing of each topic on the agenda including the projected start and stop time for the subject. The purpose of this item is to allow OCSD staff who cannot attend the entire meeting to attend the portions where they are needed. • Attendees. The agenda shall include both OCSD and CONSULTANT team members. The OCSD Project Manager will add the OCSD staff attendees to the agenda prepared by the CONSULTANT, based on the CONSULTANT's Agenda and the CONSULTANT's recommendation of which OCSD staff members should attend. • Meeting time and place. The CONSULTANT shall work with the OCSD PM to set the meeting date and time. Most meetings will be held at OCSD offices. The OCSD PM will reserve the conference room. Sept. 2019 J-98 Design SOW (Negotiated) Page 32 of 55 • A preliminary list of material to be provided at the meeting. Materials to be used by the meeting attendees to prepare for the meeting shall be sent with the meeting agenda. The CONSULTANT shall transmit to the OCSD Project Manager the following by the time of the meeting: • Hard copies of the agenda, one for each attendee • One sign-in sheet with the names of attendees pre-listed. • Native electronic files used for the presentation. With the exceptions noted below, hard copies of presentation materials will generally not be required. The OCSD Project Manager will make the electronic files available to the OCSD project team internally. • Hardcopies of all materials that cannot be easily viewed when projected on a screen. Examples might include design drawings and spreadsheets. Meeting Minutes CONSULTANT shall transmit the minutes to the OCSD Project Manager within 3 business days of the meeting in MS Word format using OCSD's template, or an approved substitution. CONSULTANT shall also update and transmit the Action Item Log, Decision Log, and Design Issues Log with the minutes. The OCSD Project Manager will distribute the minutes for internal review. If there are no OCSD comments on the minutes, they will be considered final. If there are comments, the OCSD Project Manager incorporate all appropriate OCSD comments on the MS Word file with changes tracked. The updated MS Word file will be transmitted back to CONSULTANT. If CONSULTANT has no comments on the OCSD edits, the minutes will be considered final. If CONSULTANT has further comments on the OCSD edits, those comments should be discussed with the OCSD Project Manager. Informal Meeting Requirements Informal meetings such as office meetings shall be recorded as follows: • CONSULTANT shall notify the OCSD Project Manager/Project Engineer prior to the meeting. • CONSULTANT shall prepare minutes for the meeting. • The minutes shall be submitted to the OCSD Project Manager/Project Engineer. • After review and modification, the minutes will be filed as a formal record of the meeting. • Meetings that do not follow this procedure will not be recognized as having occurred Sept. 2019 J-98 Design SOW (Negotiated) Page 33 of 55 CONSULTANT shall prepare for all telephone and teleconferencing meetings in the same manner as outlined above. A copy of all comments on project issues obtained by CONSULTANT from OCSD staff without direct OCSD Engineering Project Manager's involvement shall be submitted for the Project Manager's approval within three business days of receipt. Task 2.5.1 PDR Production Workshops PDR Production Workshops shall be held during Preliminary Design to review the topics listed below. The list below also indicates the number of workshops to be held to cover the specific topic. Unless otherwise noted, each workshop shall be 2 to 4 hours in length. Topic Number of Workshops PDR Production Kickoff 1 Electrical and Networking 3 SEL Integration 2 Instrumentation and Control 1 Implementation Plan and Sequencing Constraints 1 In addition to the number of workshops listed above, CONSULTANT shall hold for each of the Design Memos the following meetings: • Design Memo Presentations. CONSULTANT shall present each design memo to OCSD's project team at the time the design memo is submitted. The purpose of this meeting is for CONSULTANT to summarize the key aspects of the design memo and associated drawings and explain the basis for the findings. OCSD staff will not have had the opportunity to review the material prior to the meeting. The purpose of this meeting is to help OCSD staff more effectively review the submitted material. • Design Memo Validation Workshops. A workshop will be held with CONSULTANT and the appropriate members of OCSD's project team following OCSD's review of the design memo and related drawings and calculations. Depending on timing, compatibility of subject material, and meeting duration, design memo presentations for more than one design memo may be combined into a single meeting. Likewise, design memo validation workshops may be combined. CONSULTANT shall develop a detailed schedule for these workshops at the beginning of the PDR Production Phase, and coordinate with the OCSD Project Manager to set tentative dates, material to be covered, and attendee lists for each. Sept. 2019 J-98 Design SOW (Negotiated) Page 34 of 55 TASK 2.6— QUALITY CONTROL The following Quality Control requirements apply both to Phase 2 — Preliminary Design and Phase 3 - Design. Quality control activities during Design should be budgeted for and charged to the Phase 3 quality control budget. Submittals that contain gross deficiencies or errors requiring a significant amount of OCSD staff time for checking will be returned without review until OCSD is satisfied that a thorough CONSULTANT's review, checking and correction for coherence, consistency, spelling, etc. has been performed. Quality Control Requirements The CONSULTANT shall develop a Quality Assurance/Quality Control (QA/QC) Plan for implementation of the Scope of Work. The CONSULTANT's QA/QC Plan shall be reviewed and approved by OCSD Project Manager and shall include or reference all the controls necessary for implementation. As a minimum, the QA/QC Plan shall include the following: 1. Purpose and objective 2. QA/QC Team — Roles and Responsibilities 3. Independent Quality Control (IQC) Team — Roles and Responsibilities 4. The In-house Quality processes 5. QC coordination with OCSD 6. Technical Memo QC process 7. Design submittal QC process 8. Final design documents QC process QA/QC documentation shall include, but not be limited to, the following: 1. Design Guidelines 2. Calculation Log 3. IQC Comment Log 4. Discipline Drawing IQC Checklists 5. QC Validation Forms On a periodic basis, OCSD will conduct an audit of CONSULTANT's work to ensure conformance with the QA/QC Plan. OCSD shall notify CONSULTANT when these audits will Sept. 2019 J-98 Design SOW (Negotiated) Page 35 of 55 occur. For this project, an audit will be done before the PDR submittal and after the DS1 submittal. CONSULTANT shall respond to any OCSD comments made during the audit within two weeks. If comments are extensive, OCSD will schedule a follow-up audit approximately 60 days after the comments are received. Acceptance of CONSULTANT professional services shall be based on the result of audits conducted on the elements of the approved QA/QC Plan and the incorporation or resolution of comments resulting from these audits. OCSD may also make periodic visits to the CONSULTANT's offices to review the progress of the technical work. These visits may include talking to CONSULTANT's personnel, reviewing drawings (both hardcopy and electronic), discussing QA/QC techniques that will be employed by OCSD in reviewing I/C drawings and assisting CONSULTANT's staff with understanding I/C requirements for such project elements as P&ID's. A detailed description of the QA/QC Plan requirements is included in the Engineering Design Guidelines, Chapter 01, Design Guidelines— General Requirements, and as revised in Section V of this Scope of Work, "Project-Specific Deviations from OCSD Design Guidelines". Major elements of the QA/QC Plan shall include the following: • CONSULTANT shall be responsible for the technical adequacy and quality control of his work. • CONSULTANT controls shall assure that planning and design inputs are correctly translated into planning and design documents such as drawings, procedures, specifications, reports, and calculations. • CONSULTANT shall be responsible for the physical control, security, and distribution of controlled documents required for performance of the Scope of Work. • CONSULTANT's planning and design activities shall be controlled through the review workshop process, including discipline checks, inter-discipline cross-checks, and multidiscipline review workshops by an Independent Project Review Team. Prior to the submittal to OCSD, each Evaluation Memo, Design Memo, and Design Submittal identified in the Scope of Work shall be thoroughly reviewed and corrected by a member of the QC Team. The reviewer shall attest to their review in the form of a written affidavit outlining the submittal subject and identifying the corrected deficiencies. Discipline Internal Check CONSULTANT shall perform discipline check and review all drawings, specifications, studies, reports, calculations, and any other deliverable required by the Scope of Work. These requirements shall be implemented by those Project Team members responsible for the specific planning or design activity. Documentary evidence of such checking shall be provided to OCSD with each project submittal. Sept. 2019 J-98 Design SOW (Negotiated) Page 36 of 55 Discipline Integrity Check Immediately prior to the submittal of DS1, the CONSULTANT shall perform a drawing integrity check (plan check) for all disciplines. Each discipline shall provide an affidavit attesting to the details of the review, listing drawings and specification sections reviewed. The DS1 submittal shall also have a coordination check between the P&IDs and Mechanical Drawings. The mechanical lead engineer shall attest to the accuracy of each P&ID and the respective mechanical drawings. Interdiscipline Coordination Check CONSULTANT shall perform an inter-discipline coordination cross-check immediately before each design submittal to correct discrepancies among the process and demolition plans; mechanical, structural, electrical, and instrumentation and controls drawings, and databases. Within each submittal, all documents shall have inter-discipline coordination checked and shall be in agreement with each other. Documentary evidence of such checking shall be provided to OCSD with each project submittal. CONSULTANT shall refer to Engineering Design Guidelines, Chapter 01, Design Guidelines, General Requirements, and Phase 2 — Preliminary Design and Phase 3 —Design in this Scope or Work for additional requirements. Documentation of Level of Effort for QA/QC CONSULTANT shall include man-hours for all QA/QC activities related to Preliminary Design in this task, including the development of the QA/QC Plan and review of Bid Documents either by CONSULTANT, or by the CONSULTANT in conjunction with OCSD staff in meetings and workshops. The level of effort will be reviewed with OCSD staff prior to award of the Professional Design Services Agreement (PDSA) PHASE 3 — DESIGN All changes in OCSD's Engineering Standards, OCSD's Design Guidelines, and/or changes in design concepts and facility layouts as a result of OCSD comments that may occur up to transmittal of OCSD comments on Design Submittal 2, shall be incorporated into the Design by CONSULTANT with no increase in CONSULTANT's Not-to-Exceed upper limit on fees. TASK 3.1 - BID DOCUMENTS CONSULTANT shall provide engineering services to prepare biddable plans, technical specifications, and other Bid Documents as required based on the design concepts and criteria developed during Phase 2 - Preliminary Design. In this Scope of Work, construction documents include specifications; drawings; cable, conduit and cable tray schedules; commissioning plan materials; equipment and instrumentation databases (EIDs); and bypassing plans. Sept. 2019 J-98 Design SOW (Negotiated) Page 37 of 55 Task 3.1.1 Specifications Task 3.1.1.1 Contract Agreement, General Conditions, and Special Provisions CONSULTANT shall review OCSD's standard Contract Agreement, General Conditions, and Special Provisions, and General Contractor warranty requirements. The CONSULTANT shall prepare the initial draft of the Bid Submittal Forms—Attachment A Schedule of Prices, and the Special Provisions, Appendix A Work Completion schedule including the definition of contract milestones, the number of calendar days to be allowed for each, and a recommended amount of liquidated damage for not meeting the schedule requirements. CONSULTANT shall identify all proposed changes or additions to OCSD's standard warranty requirements. Any proposed changes and additional warranties will be allowed only upon review and acceptance by OCSD. Task 3.1.1.2 General Requirements and Additional General Requirements OCSD will prepare the General Requirements (GRs) for the project, which will be updated by OCSD throughout the project. The CONSULTANT shall prepare the Additional GRs which take the form of Division 01 technical specifications. CONSULTANT shall be responsible for preparing the Additional GRs and all other technical specifications so that they are consistent with the GRs provided by OCSD. In addition, CONSULTANT shall review OCSD's standard GRs and propose revisions via Additional GRs. OCSD's standard Contract Agreement sets the order of precedence in which plans and specifications in Divisions 01 through 17 supersede the GRs. Where minor changes to and deletions of certain GRs are warranted due to particular needs of the project, CONSULTANT may propose specific revisions to the GRs, subject to acceptance by OCSD's Engineering and Construction Division Manager. Specific requirements in OCSD's GRs shall not be duplicated in Additional GRs Specifications. Only deviations from the GRs and project-specific requirements not addressed in OCSD's standard GRs shall be included in Additional GRs. Additional GRs Specifications shall be developed by the CONSULTANT for specific project requirements and the numbering convention shall be per OCSD's template project Table of Contents. The following are the minimum Additional GRs topics required for this project: • Summary of the Work • Work Restrictions • Sequence and Constraints • Measurement and Payment • Site Access • Mobilization/Demobilization Sept. 2019 J-98 Design SOW (Negotiated) Page 38 of 55 • Construction photographs and videos • Equipment Shipping, Storage, and Handling Task 3.1.1.3 Technical Specifications CONSULTANT shall be responsible for contents of all technical specifications (Divisions 01 through 17), including edited OCSD Master technical specifications. OCSD's master technical specifications shall be reviewed in detail, and changes, deletions and additions required by the project shall be proposed by CONSULTANT. CONSULTANT shall be responsible for developing specifications required by the project that are not found in OCSD's Master Specifications. Refer to the "Procurement Alternatives" portion of this Scope of Work regarding sole-source specification requirements. Task 3.1.2 Drawings The CONSULTANT shall prepare construction drawings per OCSD Design Standards including CAD Manual, Design Guidelines, Master Specifications, and Tagging Procedures. The CONSULTANT shall prepare detailed network drawings based on SEL produced front-end engineering design (FEED) and sample drawings as follows: • LAN Relay Connection Details. These shall be based on the SEL produced Sample Riser Diagrams. • Network Panel Wiring Diagrams. These shall be based on the SEL produced front-end engineering design (FEED). Where existing panels are modified, CONSULTANT may utilize photographs of the existing panels and produce a rendering of the modifications (including all necessary wiring terminations) to include in the design drawings. • Fiber Optic Cable Routing Between Buildings. These shall be based on the SEL produced topological diagrams. OCSD will provide assistance in the form of narratives and mark-ups of the existing configuration for the Consultant to include in the design drawings. • Fiber Cabinet Layout Drawings and BOM. These shall be based on the SEL produced front-end engineering design (FEED). Where existing panels are modified, CONSULTANT may utilize photographs of the existing panels and produce a rendering of the modifications (including all necessary wiring terminations) to include in the design drawings. Task 3.1.3 Cable, Conduit and Tray Schedules CONSULTANT shall utilize either OCSD's Microsoft Access Cable and Raceway Schedule database or an OCSD approved alternate method. Sept. 2019 J-98 Design SOW (Negotiated) Page 39 of 55 Task 3.1.4 Equipment and Instrumentation Databases (EIDs) OCSD will provide a truncated copy of the EID database for CONSULTANT to begin populating by completing the CONSULTANT-furnished fields for each device. The database shall identify all new equipment and instruments and all existing equipment and instruments to be deleted and/or modified under this project. CONSULTANT shall submit the EID database for the project with information that is typically included in equipment data sheets. (see Engineering Design Guidelines, Appendix A for Equipment and Instrument Database (EID) requirements. Task 3.1.5 SCADA Access Tables (SAT) OCSD uses SAT files to list all analog and discrete monitoring points on the project, filed by PLC. SAT will be produced by OCSD. CONSULTANT shall coordinate P&IDs, tagging, cable and conduit schedules, and other design documents with the OCSD developed SAT databases. CONSULTANT shall coordinate and provide P&IDs and 1/0 lists to OCSD for the production of the SAT databases. TASK 3.2 - DESIGN SUPPORT DOCUMENTATION Task 3.2.1 Design Information CONSULTANT shall include the following material with each Design Submittal: • CONSULTANT shall maintain the Project Logs specified under Phase 2 Project Management through Phase 3 as well. Current copies of all logs shall be included with each Design Submittal. • Written response log to OCSD comments on the previous submittal. • Calculations • Proposed list of suppliers to be named in the specifications for major equipment. • Draft or final Field Findings Reports not submitted in the previous submittal and those revised since the previous submittal. • Equipment data sheets • Equipment catalog cuts and vendor quotations. • All memos that may be been prepared since the previous submittal was delivered. Task 3.2.3 Electrical Design Documentation CONSULTANT shall provide the following electrical design information: • Electrical System Analysis Report which includes Summary, Field Data Collection and Verification Report, and Neutral Grounding Systems Study (see Engineering Design Guidelines, Chapter 10, Section 10.2.1 for details). The field data collection includes field investigations of the modified equipment, spacing for new equipment, and availability of spare conductors and termination points. Sept. 2019 J-98 Design SOW (Negotiated) Page 40 of 55 Field measurements and calculations shall demonstrate adequate load capacity of power source equipment for any load addition. Field measurements and/or calculations shall be provided for sizing the grounding system. • ETAP related protective device settings, load flow, short-circuit, and arc-flash studies will be provided by OCSD to the CONSULTANT. CONSULTANT shall provide a detailed listing of the ETAP studies and information needed by the CONSULTANT to prepare bid documents. CONSULTANT shall provide OCSD with all required design information to develop the ETAP model and perform the studies. • Load List for all equipment. Lumping of auxiliary loads is allowed. Task 3.2.4 Construction Cost Estimates CONSULTANT shall provide Construction Cost Estimates with each Design Submittal starting with Design Submittal 2 per OCSD's Engineering Design Guidelines, Chapter 01, Section 01.4.6 "Construction Cost Estimate." Task 3.2.5 Construction Schedule The CONSULTANT shall provide a Preliminary Construction Schedule in Gantt chart format using scheduling software such as Primavera Project Planner (P3) or Microsoft Project. For DS1, the construction schedule prepared for the Preliminary Design Report may be updated based on changes since the PDR, but at the same level of detail. For DS3 and later submittals, more information shall be included in the schedule. The goal is to develop a realistic schedule based on project information, not a "rule of thumb". The construction schedule shall be based on the commissioning documents prepared for the project as well. CONSULTANT shall engage the services of a least one construction individual to review the quantity takeoffs from CONSULTANT staff and use this information to assist in the development of the detailed construction schedule. CONSULTANT may use their own staff if they are qualified or hire a Subconsultant to assist in this activity. TASK 3.3 - DESIGN SUBMITTALS Design submittals shall be submitted per OCSD review as indicated in the Section III — Project Schedule. The contents of each submittal shall be as described in Exhibit 1. Design Submittals shall be delivered in hard copy, PDF format (see section "Submittals in PDF Format" in Part V General Requirements), and native files. The number of hard copies is indicated in Exhibit 4. The following requirements apply to the labeling and organization of the PDF and native: • Specifications shall be compiled into a single PDF file. When the specification exceeds approximately 700 pages, the specifications shall be broken into separate volumes. Divisions 16 and 17 should be kept in the same volume. • Drawings shall be submitted as a single compiled file, except where the size of the file would exceed 30 MB, in which case the drawings should be separated into separate files by discipline. If the file for one discipline is more than 30 MB, the file may be Sept. 2019 J-98 Design SOW (Negotiated) Page 41 of 55 divided into multiple files. In no case may drawings be submitted as separate PDF files for each drawing. The order of drawings in the PDF file shall match the list of drawings. Bluebeam Revu provides a mechanism for reducing the size of some PDFs. This tool works by compressing bitmap images and removing non-visible document data. It does not affect vector content (see section "Submittals in PDF Format" in Part V General Requirements). • The PDF files shall be named to include the project number, the name of the deliverable (e.g. Draft PDR, DS1, etc.), the volume, and the particular content. The files shall also be named so that the list appears in sequential order when sorted by file name. In cases where drawings are divided into separate PDF files by discipline, a number or letter must be included in the file name so that the files are listed in the same order as the List of Drawings. • These requirements do not affect the organization, naming, and submittal of native files for CAD or MS Office files specified elsewhere in this Scope of Work and OCSD Design Standards. • All native Word files used for specifications shall be submitted, combined into a single folder with the number of the specification section in the file name so that the files are listed in the same order they would appear in a hard copy print. Attachments to specification sections should be named so that they also fall in the correct order on the file list. • Specification sections based on OCSD master specifications shall be edited using tracked changes so that by opening the Word file, the changes made from the OCSD master can be readily viewed. The printed version of the specification sections (both PDF and hard copy) shall not show the tracked changes. • Native CAD files shall be submitted per the CAD manual standards, with all applicable. The OCSD Project Manager may request that CONSULTANT submit an electronic proof set of the Draft PDR and Final PDR prior to hard copy production in order to initially confirm that the submittal is ready for printing. The Design Submittals shall be organized per the following structure. CONSULTANT may propose an alternative organization of the submittal for approval by the OCSD Project Manager. Volume 1 - Submittal Documentation Memo to Reviewers Responses to Comments on Previous Submittal Design Information Facility Operations and Maintenance Electrical Design Documentation Networking Design Documentation Sept. 2019 J-98 Design SOW (Negotiated) Page 42 of 55 Instrumentation and Control Documentation Construction Cost Estimate Construction Schedule Procurement Alternatives Volume 2 - Specifications Volume 3 — Drawings Volume 4— Project Support Documentation Design Period Memos as needed to document specific design issues and their resolutions. Calculations Equipment Selection (organized by Specification Section) Equipment Data Sheets Catalog Cuts Vendor Quotes Volume 5— Electronic Files and Databases The Memo to Reviewers included at the beginning of Volume 1 shall describe how the submittal is organized, include a table of contents, and list any significant changes that have been made to the design since the last submittal, or the last time a particular issue was discussed. TASK 3.4 - BID SUPPORT SERVICES Task 3.4.1 Bid Phase Activities CONSULTANT shall provide the following bid period services: ■ Participate in the pre-bid meeting. ■ Prepare project drawing set and project specification addenda to provide clarification and resolve errors and omissions identified prior to bid opening. Task 3.4.2 Bid Evaluation Assistance ■ Participate in reviewing alternate equipment proposals from the Contractor, if applicable. ■ Participate in the evaluation of the submitted bids, furnish consultation and advice to OCSD staff and assist with all the related equipment, cost, and other analyses as required to finalize the award decision. Task 3.4.3 Conformed Document Preparation ■ Within two weeks of the bid date, prepare conformed documents set (drawings, databases, specifications and other required materials) that incorporates the addenda. See Engineering Design Guidelines, Chapter 01, Design Guidelines — General Sept. 2019 J-98 Design SOW (Negotiated) Page 43 of 55 Requirements, Section 01.4 "Preparation of Project Deliverables" for requirements as modified in Section V of this Scope of Work, "Project-Specific Deviations from OCSD Design Guidelines" and the requirements of the CAD Manual). TASK 3.5 - PROJECT MANAGEMENT CONSULTANT Project Management responsibilities during Phase 3 - Design shall be as specified for Phase 2 — Preliminary Design. TASK 3.6 - RISK MANAGEMENT ASSISTANCE The CONSULTANT's responsibilities for risk management assistance during Phase 3 - Design shall be as specified for Phase 2 — Preliminary Design. Specific Phase 3 risk management tasks shall include the following. Task 3.6.1 Design Phase Risk Workshops The design phase risk workshops shall be held per the following table: Workshop Name Timing Duration DS1 Risk Workshop During OCSD's review of DS1 2 hours The purposes of the workshops are to: • Review the existing Risk Management Plan (RMP) • Identify new key project-specific risks, • Update the nature of the impact of each risk should it occur • Update how likely the risk is to occur • Update mitigation strategies that should be implemented or be ready to be implemented to address each risk. The workshop will be held at OCSD offices. CONSULTANT shall prepare the agenda, any appropriate presentation materials, and minutes for the Workshop. The minutes shall include sufficient information for OCSD to update the RMP and for CONSULTANT to update the Risk Mitigation Measure Log. Task 3.6.2 Risk Mitigation Measure Log Maintaining the Risk Mitigation Measure Log required for Phase 2 shall be continued through submission of the Final Design Submittal. Sept. 2019 J-98 Design SOW (Negotiated) Page 44 of 55 Task 3.6.3 Risk Monitoring Updates The Risk Monitoring updates required for Phase 2 shall be continued through submission of the Final Design Submittal. TASK 3.7 -WORKSHOPS AND MEETINGS The requirements specified in Task 2.5 Workshops and Meetings specified for Phase 2 — Preliminary Design related to Workshop and Meeting Planning and Workshop and Meeting Agendas shall also apply for Phase 3 - Design. Task 3.7.1 Design Phase Workshops The focus of workshops is to review project progress to date and the technical decisions that have been made in focused meetings. CONSULTANT shall conduct the following workshops in Phase 3 — Design. During final design, workshops shall be held after each design submittal. A constructability workshop shall also be held. Task 3.7.1.1 Design Submittal 1 Workshops DS1 Review Kickoff Workshop The DS1 Kickoff Workshop shall be held immediately after DS1 is submitted. The objectives of this meeting include the following: • Review how the submittal is organized, what material is included, and what material is not included, and how complete the various portions of the design are. • Review significant design changes made since the previous submittal, and the reasons for those changes. • Present key features of the submittal that OCSD staff should pay particular attention to when reviewing the submittal after the workshop. CONSULTANT shall include at the Workshop staff members needed to present the material and directly address questions that may arise on the material. For this project, OCSD would anticipate the following CONSULTANT staff members would need to be physically present. In certain cases, CONSULTANT may propose that other team members participate by teleconference. • Project Manager • Project Engineer • Lead Electrical • I&C Engineer • Lead Structural Engineer Sept. 2019 J-98 Design SOW (Negotiated) Page 45 of 55 This workshop shall be 2 to 3 hours in length. Immediately following the full workshop, the CONSULTANT Project Manager and Project Engineer shall present to OCSD's core engineering team the documentation of the quality control process implemented prior to delivery of the design submittal. If the quality control process does not appear to have been implemented per OCSD or CONSULTANT's quality control standards, the OCSD Project Manager may reject the submittal. DS1 Review Meetings Up to DS1 design submittal review meetings shall be held at approximately the midpoint of OCSD's review period. The design submittal meetings shall be working sessions that bring together OCSD and CONSULTANT staff to discuss specific design issues in detail. Each drawing shall be reviewed relative to the operation and maintenance of the facilities (i.e., space between equipment, utility requirements, maintenance concerns, etc.). In addition, CONSULTANT shall also address questions that OCSD staff has identified during the first half of their review of the design submittal. The following Review Meetings shall be held: ■ Electrical and I&C - (2) meetings ■ CivilNard - (1) meeting ■ Construction - (1) meetings Each meeting shall be 2 to 3 hours in length. DS1 Validation Workshop The DS1 Validation workshop shall be held to review and validate the CONSULTANT's responses to OCSD's DS1 comments. This workshop shall be held after CONSULTANT has reviewed OCSD's comments on DS1 and developed suggested resolutions to the comments. The same OCSD and CONSULTANT staff that attended the kick-off workshop and design submittal review meetings should attend this workshop. The primary focus of this workshop is to resolve differences between the CONSULTANT and OCSD staff on how the comments should addressed. This workshop shall be 2 to 3 hours in length. Task 3.7.1.2 Design Submittal 2 Workshops DS2 Review Kickoff Workshop The DS2 Kickoff Workshop shall be held immediately after DS2 is submitted and shall be conducted as specified for the DS1 Kickoff Workshop, including the review of the CONSULTANT's quality control documentation. This workshop shall be 2 to 3 hours in length. Sept. 2019 J-98 Design SOW (Negotiated) Page 46 of 55 DS2 Review Meetings The DS2 Review Meetings shall be conducted as specified for the DS1 Review Meetings. The following DS2 Review Meetings shall be held: ■ Electrical and I&C (2) meetings ■ Civil/Yard - (1) meeting ■ Construction - (2) meetings Each meeting shall be 2 to 3 hours in length. DS2 Validation Workshop The DS2 Validation Workshop shall be conducted as specified for the DS1 Validation Workshop. This workshop shall be 2 to 3 hours in length. Task 3.7.1.3 Design Submittal 3 Workshops DS3 Review Kickoff Workshop The DS3 Kickoff Workshop shall be held immediately after DS3 is submitted and shall be conducted as specified for the DS1 Kickoff Workshop, including the review of the CONSULTANT's quality control documentation. This workshop shall be 2 to 3 hours in length. DS3 Review Meetings The DS3 Review Meetings shall be conducted as specified for the DS1 Review Meetings. The following DS3 Review Meetings shall be held: ■ Electrical and I&C (2) meetings ■ Civil/Yard - (1) meeting ■ Construction - (2) meetings Each meeting shall be 2 to 3 hours in length. DS3 Validation Workshop The DS3 Validation Workshop shall be conducted as specified for the DS1 Validation Workshop. This workshop shall be 2 to 3 hours in length. Sept. 2019 J-98 Design SOW (Negotiated) Page 47 of 55 Task 3.7.1.4 Final Design Submittal Workshops FDS Review Kickoff Workshop An FDS Review Kickoff Workshop will not be required. FDS Review Meetings The FDS Review Meetings shall be conducted as specified for the DS1 Review Meetings. The following FDS Review Meetings shall be held: ■ Electrical and I&C- (1) meetings ■ CivilNard - (1) meetings ■ Construction - (1) meetings Each meeting shall be 2 to 3 hours in length. FDS Validation Workshop The FDS Validation Workshop shall be conducted as specified for the DS1 Validation Workshop. This workshop shall be 2 to 3 hours in length. Task 3.7.2 Design Phase Meetings Task 3.7.2.1 Technical Progress Meetings Technical Progress Meetings shall be held every 4 weeks to review various issues with OCSD's project team. A total of 10 meetings shall be held during Preliminary Design Phase. The CONSULTANT shall coordinate with the OCSD Project Manager to determine what topics will be covered in what meetings, and what OCSD and CONSULTANT team members are required for each. Task 3.7.2.2 Focused Meetings Focused meetings shall be held throughout preliminary design to discuss specific issues in detail and generate comments and direction from OCSD staff. The following tentative list of topics may be covered in these meetings: • Quality control plan • Sample EID and SAT database • Data network block diagram/network connection diagram • Load shedding and arc flash mitigation Sept. 2019 J-98 Design SOW (Negotiated) Page 48 of 55 • 12kV Service Center Main Breakers Auto-Synchronization (Cen-Gen to SCE Utility Power) Feature • 1/0 relocation plan • Electrical distribution system, system controls and the related upgrades • Construction sequencing • Coordination with other projects • Additional meetings as necessary Each meeting shall generally be 2-3 hours in length. CONSULTANT shall determine how many meetings will be needed to cover these topics. CONSULTANT may suggest additional topics as necessary. Supplementary meetings may be scheduled with OCSD staff, as necessary to allow coordination between the CONSULTANT and OCSD staff. Task 3.7.2.3 Safety and Risk Meeting Meet with OCSD Safety and Risk Management personnel, and OCIP (Owner Controlled Insurance Program) safety representatives, between DS1 and DS3 to review the plans and specifications in accordance with OCSD safety policies and OCSD Risk Management goals. Task 3.7.2.4 CONSULTANT Office Technical Meetings (COTMs) OCSD has found it mutually beneficial to visit the CONSULTANT offices from time to time to observe the detailed design in process, answer detailed technical questions, and establish lines of communications with CONSULTANT staff. During the Design Phase, CONSULTANT shall arrange for OCSD staff to meet in CONSULTANT's work center and audit "over the shoulder" design reviews with CONSULTANT's staff. The reviews will be monitored by a member of CONSULTANT's Management Team. Signification decisions will be reported to Consultants Project Manager and OCSD's Project Manager and logged into the Decision Log. Action items will be identified. The CONSULTANT shall schedule, at a minimum, the following CONSULTANT Office Technical Meetings (COTMs): • One three-hour visit to review the Conduit, Tray and Cable Schedules ■ One three-hour visit to review each of the SAT and EID products, including P&ID, SAT and EID coordination. ■ One three-hour visit to review each of the electrical drawing products, including SLDs, breaker control schematics and Plan drawings. ■ One three-hour visit to perform DS1 over the shoulder review. ■ One three-hour visit to perform DS2 over the shoulder review. ■ One three-hour visit to perform DS3 over the shoulder review. Sept. 2019 J-98 Design SOW (Negotiated) Page 49 of 55 The CONSULTANT shall schedule each of the above COTMs and shall coordinate with OCSD's Project Manager to be sure the correct personnel participate in the meetings. The CONSULTANT may propose additional, eliminate, or combine COTMs as needed to support the detailed design. OCSD may also request additional "over the shoulder" design review meetings to audit the design in other areas not listed above. TASK 3.8 - QUALITY CONTROL The quality control requirements for Phase 3 - Design and Bid are specified under Quality Control for Phase 2. PHASE 4 — CONSTRUCTION AND INSTALLATION SERVICES (NOT IN THIS SCOPE OF WORK) Not in this Scope of Work. PHASE 5 — COMMISSIONING SERVICES (NOT IN THIS SCOPE OF WORK) Not in this Scope of Work. PHASE 6 — CLOSE OUT (NOT IN THIS SCOPE OF WORK) Not in this Scope of Work. V. GENERAL REQUIREMENTS GENERAL OCSD ENGINEERING DESIGN GUIDELINES AND STRATEGIC PLAN CONSULTANT shall refer to and adhere to the requirements of OCSD Safety Standards, OCSD Engineering Design Guidelines and other OCSD's Design Standards referenced therein except for the deviations specified below. Exhibit 12 is a complete set of the OCSD Safety Standards and OCSD Design Standards, the latest edition at the time of the design proposal stage. The Engineering Guidelines define what plant design concepts/tools/methods and project management requirements shall be adhered to and in what manner they shall be used/provided by Consultants, e.g., requirements regarding design concepts, submittals, documentation details, use of OCSD Master Specifications, and other related OCSD Standards, etc. Refer also to Section "CONSULTANT's Responsibilities" in OCSD Engineering Design Guidelines Chapter 01. Refer to "Master Specifications Instructions for Use" that mandates rules and conventions to be used in all OCSD project specifications. The project Scope of Work defines whether or not each specific deliverable described in the Guidelines shall be part of the project and when each task shall take place. Sept. 2019 J-98 Design SOW (Negotiated) Page 50 of 55 The project Scope of Work also includes requirements that supplement and/or modify the Guidelines requirements for this project. The project Scope of Work and OCSD Engineering Design Guidelines impact CONSULTANT's project cost. Except as specified in this Scope of Work, design of all facilities shall conform to the recommendations of the currently approved Master Plan for OCSD facilities. The project shall also incorporate all applicable mitigation measures included in associated environmental documents and site-specific local requirements. In addition, OCSD will require the CONSULTANT to follow subsequent revisions of OCSD Safety Standards, OCSD Engineering Design Guidelines and other OCSD Design Standards up to transmittal by OCSD of comments on Design Submittal 2, shall be incorporated into the Design by CONSULTANT with no increase in CONSULTANT's Not-to-Exceed upper limit on fees. OCSD may update OCSD's Master Specifications and/or add new OCSD Master Specifications up to transmittal by OCSD of comments on Design Submittal 2. The CONSULTANT shall utilize the new and/or modified Master Specifications for the DS3 submittal. The CONSULTANT shall not begin editing the project specifications until the project team meets with OCSD's Design Standards Custodian to discuss and receive comments regarding the CONSULTANT's proposed list of project specifications. This meeting will be used to determine which specifications are to use OCSD's master specifications, and where other sources will be utilized. Project Phases and Tasks Project tasks and deliverables shall include the requirements described in this Scope of Work. CONSULTANT shall also refer to Appendix A of OCSD Engineering Design Guidelines for the level of detail requirements for individual deliverables in each Phase of the project not covered in the Scope of Work. Construction Sequencing and Constraints CONSULTANT shall develop with OCSD staff and include in the Bid Documents detailed requirements for construction sequencing and constraints. These shall ensure safe and reliable operation and maintenance of OCSD facilities. The facilities must be kept on-line and fully operational with minimal interruptions throughout construction. Working Hours Meetings with OCSD staff shall be scheduled from Monday through Thursday between the hours of 8:00 AM and 4:00 PM. CONSULTANT's on-site staff shall conform to OCSD work schedules. CONSULTANT shall refer to the Engineering Design Guidelines, Chapter 01, Section 01.3.5 "CONSULTANT Inspection of Treatment Facilities" for further requirements. Sept. 2019 J-98 Design SOW (Negotiated) Page 51 of 55 Standard Drawings and Typical Details All the details used in the project (OCSD's Standard Drawings and CONSULTANT-developed typical details) shall be shown on the Plans. Software The CONSULTANT is expected to develop and provide the deliverables using the standard software currently approved for use by OCSD. The standard OCSD software includes, but is not limited to, the following: o Windows 10 Professional o Esri software 10.5.1 (fGDB, pGDB or shapefile formats) o Microsoft Internet Explorer 11 o AutoCAD Plant 3D ver 2018 (for P&ID drawings only) o Autodesk software 2018 (AutoCAD, AutoCAD Map3D or compatible dwg file format) o Microsoft Office 365 o Maximo 7.6 o Bluebeam Revu eXtreme (version 2018.2) o Primavera P6 for scheduling o Database software as defined elsewhere in the project Scope of Work Any software that the CONSULTANT needs to comply with these standards shall be purchased and maintained by the CONSULTANT at no additional cost to OCSD. In the event OCSD provides the CONSULTANT with access to OCSD software and hardware at an OCSD facility in order to facilitate performance of their work, all software shall remain the property of OCSD. Only software licensed to OCSD shall be installed on OCSD equipment. In addition, only OCSD IT Department staff will perform the installation of this software. Refer to Chapters 10 and 11 and Appendix A of OCSD Engineering Design Guidelines for requirements on preparation of Criticality Tables and EID databases. Refer to OCSD CAD Manual and to Chapter 11 and Appendix A of OCSD Engineering Design Guidelines for requirements regarding P&ID drawings. Submittal Review using Bluebeam OCSD has standardized on the use of Bluebeam Revu for reviewing and providing comments to PDF files. Prior to submitting electronic PDF files, format them as indicated below (underlined text refers to commands or functions within the Bluebeam software). See Exhibit 17 and "OCSD CAD Standards Manual" prior to submission. PDF files will be hosted in a Bluebeam cloud-based studio session for review. See Exhibit 18 for a detailed explanation on how Bluebeam will be used to provide, validate, and close submittal review comments. 1. The purpose of the studio session is to provide review and collaboration. The session provides multiple attendees, despite location, the opportunity to review and comment on the same PDFs in real time. All review actions are tracked and recorded. 2. OCSD staff will create the Bluebeam studio session, invite attendees, configure, and manage the Studio session. Sept. 2019 J-98 Design SOW (Negotiated) Page 52 of 55 3. Bluebeam provides reviewers with tools for annotating PDFs called a markup. OCSD provides two toolboxes for annotating PDFs: "OCSD Drawings Review" and "OCSD Report Review." 4. Markups are both graphical and tabular. When the graphic markup is placed, corresponding tabular data are created. The collection of tabular data is considered the markup list. 5. The markup is automatically populated with various properties including author, sheet number, comment, markup type, etc. to make reviewing consistent. The tabular data within the markup list are hyperlinked to the graphical markup for back-and-forth viewing. 6. The markup list may be sorted or filtered. For example, filtering markups by author makes that attendee's markups more prominent on the page by dimming everyone else's markups. 7. Within a studio session, markups may only be modified by the markup author except for the Status data field using the "Set Status" command. OCSD has customized this field for the reconciliation of comments and backcheck. Session attendees may "Reply" to the markup of other reviewers. Replying to a markup provides the responder the opportunity to explain how the markup will be incorporated. 8. The comment reconciliation steps are summarized below: a. Reply— respond to OCSD provided review comment with: Agree, Disagree, or Flag for Discussion. b. Direct— meet with OCSD to reconcile the non-agrees with either an Incorporate or Do Not Incorporate response. OCSD will work with Consultant to ensure clear direction is provided. c. QC Check— Consultant tells OCSD that the comment has been addressed in the next submittal by responding with Incorporated or Not incorporated. d. Backcheck— reconciliation of open and incorporated comments by OCSD with an Open or Closed response. 9. A one-hour training session on the use of Bluebeam and custom status menu will be provided by OCSD. All Consultant team members responsible for quality control and reconciliation of submittal comments shall attend. Word Track Changes 1. Below are guidelines for the review and incorporation of MS-Word comments and revisions. Use MS-Word Track Changes to show edits to all project specifications and other MS-Word files. 2. Submit the marked-up electronic files for OCSD review, as required by the Scope of Work. OCSD's review will consist of comments and (in-text) revisions. OCSD comments and revisions shall remain visible in Track Changes throughout design. 3. OCSD will return the MS-Word files or host them in a central location. a. If the files are returned, CONSULTANT will check the files back into their document management system (i.e., replace the old files with the returned files) and resume their design and review of OCSD comments using the returned files. This insures that in-text revision by OCSD are preserved. Sept. 2019 J-98 Design SOW (Negotiated) Page 53 of 55 b. Hosting files in a central repository is preferred because it eliminates file transfer and the potential for multiple copies. Hosted files are also protected by version control. 4. OCSD comments shall be addressed using MS-Word "Reply" and "Resolve." The CONSULTANT shall "Reply" to each OCSD comment describing how the comment will be addressed and revise the specification, as needed, to address the comment. 5. "Resolve" will be used by the reviewer or designee to confirm their comment has been addressed. "Resolve" greys out the comment showing it is closed. 6. Revisions may be "Rejected" with the concurrence of the Project Engineer or reviewing party. Concurrence is necessary because once a revision is "rejected," it is removed from MS-Word Track Changes and no longer visible. 7. After final design, all MS-Word comments and revisions shall be Track Changes accepted, rejected, resolved, or deleted prior to bid. The MS-Word commands to "Accept All Changes" and "Delete All Comment in Document" shall be performed just prior to preparing the IFB set. No unaddressed comments or revisions shall remain in the Bid Documents. VI. STAFF ASSISTANCE OCSD staff member or designee assigned to work with CONSULTANT on the design of this project is Todd Waltz at (714) 593-7117, e-mail to: twaltz ocsd.com. Sept. 2019 J-98 Design SOW (Negotiated) Page 54 of 55 EXHIBITS: Exhibit 1 Design Submittal Requirements Matrix Exhibit 2 Project Schedule Calculation Exhibit 3 Sample Criticality Data Table (Not Used) Exhibit 4 Deliverables Quantities Exhibit 5 Sample Construction Cost Estimate Format-Basis of Estimate Exhibit 6 Sample Full Project Safety Review Plan Exhibit 7 Sample Risk Management Check List Exhibit 8 MMRP Log Template (Not Used) Exhibit 9 Sample ORT Procedure (Not Used) Exhibit 10 Sample FAT Procedure (Not Used) Exhibit 11 Sample RAT Procedure (Not Used) Exhibit 12 OCSD Engineering Design Guidelines Exhibit 12A OCSD Instrument and Equipment Tagging Procedure — Exhibit D8 Exhibit 13 Project Reference Material Exhibit 13A Sample Virtual Main Configuration (Switchgears Requiring IEC 61850 Trips) Exhibit 13B Sample Virtual Main Configuration (Switchgears Requiring Hardwired Trips) Exhibit 13C Sample Cable and Conduit Block Diagram (Switchgears Requiring IEC 61850 Trips) Exhibit 13D Sample Cable and Conduit Block Diagram (Switchgears Requiring Hardwired Trips) Exhibit 14 Project J-47 Cable Tray Improvements Preliminary Design Report (Not Used) Exhibit 15 J-102 Electrical Master Plan (Not Used) Exhibit 16 Cable Conduit and Tray Schedule Database (Not Used) Exhibit 17 Designer Training for Submission Exhibit 18 Designer User Training TW:dm Sept. 2019 J-98 Design SOW (Negotiated) Page 55 of 55 EXHIBITS • Exhibits to Attachment A Scope of Work are considered reference material and were previously provided as part of the Request for Proposal. • Copies of Exhibits to Attachment A Scope of Work shall be furnished through Microsoft OneDrive. ATTACHMENT "B" LABOR HOUR MATRIX Electrical Power Distribution System Improvements,J-98 Attachment B-Labor Hour Matrix d f0 C N d N > E Y - a �' c aNi >, 4 m E m o y •V "a + Y C N S M.N -� t y N Y C A s = y i C 'G �'"a :r La w N G1 E 16 01- 3 M m R m 3 m cLi m ayi s` m m t a=i m > °o m s` m at= i m c m e o Total Task Item a mU U) IL RM YV > tA F- (Lx xw U) 0 WC) W- U) UY LLw Q2 0 tno w � aQ mz Hours CA Load Elect Elect Elect QA/QC I&C I&C I&C I&C QA/QC QA/QC PIC PM PE Manager Shed Eng Eng Eng Elect Lead LAN CAD CAD I&C Struct Civil Cost Est Cost Est Cost Est CAD WP PA Biller Average Actual Salary 106.65 78.06 85.16 97.67 78.69 59.47 31.85 55.42 73.63 36.02 56.03 39.53 37.18 72.66 72.79 53.21 66.42 61.50 78.80 54.83 39.57 36.41 27.01 PHASE 2-PRELIMINARY DESIGN 2.1 Predesign Evaluation Studies NOT USED) 2.2 Preliminary Design Production 20 20 5 5 2 4 16 72 2.2.1 DM 1 -Electrical 20 20 5 51 2 4 8 64 2.2.2 DM 2-Instrumentation and Control/Networking Tagging 20 20 5 5 2 4 8 64 2.2.3 DM 3-Implementation Plan 20 20 5 5 2 4 80 80 8 224 2.2.4 Prerniniary Design Drawings 25 75 202 17 17 25 25 8 13 45 452 2.3 Project Management 6 months 112 56 28 21 14 231 2.4 Risk Management 8 16 16 40 2.5 PDR Production Workshops and Meetings 8 60 62 40 40 35 35 40 40 10 370 2.6 Quality Control 40 40 40 40 1 160 2.7 Field Verification 100 100 100 300 Subtotal-Phase 2-Preliminary Design 8 180 239 40 259 40 282 100 40 72 172 65 65 40 16 39 80 80 40 45 40 21 14 1,977 PHASE 3-FINAL DESIGN 3.1 Bid Documents CA,GRs,Tech Specs) 30 30 30 30 30 47 47 80 220 544 3.2 Design Support Documentation Calc,Cut Sheets) 12 12 12 12 12 46 46 20 20 192 3.3 Design Submittals(Drawings) DS1 152 248 370 617 286 114 114 195 195 18 48 80 80 129 8 2,654 DS2 149 307 463 663 223 105 105 186 186 26 52 80 80 151 8 2,784 DS3 82 125 160 234 68 101 101 182 182 18 41 80 80 114 8 1,576 FDS 67 144 154 74 98 98 125 125 12 30 40 40 84 8 1,099 IFB 40 40 40 40 20 20 30 30 20 20 40 40 40 8 428 3.4 Bid Support Services 16 60 60 20 20 20 30 30 20 20 16 28 24 364 3.5 Project Management 18 months 288 144 18 54 36 540 3.6 Risk Management Assistance 8 24 24 56 3.7 Workshops and Meetings 8 120 108 65 65 50 50 30 496 3.8 Quality Control 80 96 96 40 312 Subtotal-Phase 3 Final Design 8 432 761 80 996 1,304 1,770 753 96 611 611 738 738 96 210 489 320 320 40 518 64 54 36 11,045 TOTAL-PHASES 2 AND 3 T 16 612 1,000 120 1,255 1,344 2,052 853 136 683 783 803 803 136 226 528 400 400 80 563 104 75 50 13,022 Date: 1/8/2020 Page 1 of 1 Final Negotiated ATTACHMENT "D" ALLOWABLE DIRECT COSTS ATTACHMENT "D" ALLOWABLE DIRECT COSTS LONG DISTANCE All long distance telephone charges incurred will be reimbursed as direct costs. TELEPHONE CHARGES Telephone charges to area codes serving Los Angeles, Orange, Riverside, and San Bernardino Counties will not be reimbursed. FACSIMILE TRANSMISSION Facsimile transmission charges will not be reimbursed, except the long distance toll CHARGES charges, as described above. In-house reproduction of records and documents will not be reimbursed by the REPRODUCTION AND SANITATION DISTRICT. Use of an outside copy service for specialty items and PRINTING CHARGES volume reproduction will be reimbursed at direct cost. Use of a professional printing service will be reimbursed at actual cost. OVERNIGHT MAIL DELIVER Use of Federal Express, Express Mail, UPS, or such similarly-related service, as AND MESSENGER SERVICE well as a messenger service, will be reimbursed at direct cost only when necessary. POSTAGE Incidental postage will not be reimbursed by the SANITATION DISTRICT. FILM PROCESSING Film processing will be reimbursed at actual cost. COMPUTER USAGE Computer use by Consultant and/or support staff will not be reimbursed. MILEAGE Per mile reimbursement will be at the current rate set by the Internal Revenue Service. TEMPORARY STAFF The use of outside temporary support staff will be reimbursed at direct cost with prior approval of the SANITATION DISTRICT. OFFICE SUPPLIES The purchase of office supplies by Consultant will not be reimbursed. The cost of lodging including room and all applicable taxes will be reimbursed on a per diem basis as an allowable maximum as established by U.S. General Service Administration. Lodging incidentals as defined by IRS are included in the per diem rates. Lodging personal incidentals including movies, internet, laundry service, valet LODGING service, room service, etc., will not be reimbursed. Receipts must be provided for the actual incurred cost. Cancellations of the hotel reservations by the Consultant must be per the hotel policy. Late cancellations, early or late departure will not be reimbursed by the SANITATION DISTRICT. The cost of ground transportation for taxi, shuttle, train, etc., will be reimbursed. GROUND TRANSPORTATION Limousine service will not be reimbursed. The Consultant shall use the most economic and practical mode of transportation that is reasonably available. PDSA PROJECT NO. J-98 Revision 062316 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 1 of 2 Airline ticket cost including one bag will be reimbursed only if pre-approved by the SANITATION DISTRICT. First class tickets will not be reimbursed unless AIRFARE pre-approved by the SANITATION DISTRICT. Membership dues for corporate card frequent user programs or the cost of airline club membership will not be reimbursed. Rental car cost for intermediate or standard model, mid-size car(Class "C") or the AUTO RENTAL smaller car compatible with the specific need and rental car gas will be reimbursed. Receipts must be provided to substantiate requested reimbursements. Parking fees for hotel, airport, rail station, etc. will be reimbursed. Consultant shall PARKING FEE use the most economic and practical parking location as reasonably available. Excessive parking fees that are deemed unreasonable by the SANITATION DISTRICT will not be reimbursed. Travel meals will be reimbursed on a per diem basis as established by U.S. General Service Administration. Per diem rates include gratuities (tips) and will not TRAVEL MEALS be separately reimbursed by the SANITATION DISTRICT. Personal expenses such as cost of alcoholic beverages will not be reimbursed. No receipts are required for the approved meals. The daily total reimbursement for meals shall not exceed the SANITATION DISTRICT per diem rate which is available upon request. PER DIEM DAILY RATE FOR The SANITATION DISTRICT may utilize per diem daily rate that includes lodging, LODGING AND MEALS meals and incidentals (M&IE) as established by IRS and U.S. General Service administration for pre-approved travel when reasonable. RENTAL EQUIPMENT Consultant will be reimbursed at actual cost, no mark-up. OCSD may authorize other items that may be necessitated due to modifications in scope of work resulting from field investigations and field work required by Contract. These items may include special equipment, test equipment and tooling and other OTHER DIRECT COSTS materials and services not previously identified. These items will be reimbursed based on actual cost incurred. A one-time mark-up of 15%for additional equipment rentals, materials and outside services required for field work and investigations may be allowed, as applicable, if justified. No additional markup is allowed by Consultant on other direct costs resulting from work performed by its Contractors. Cost of miscellaneous personal items such as, but not limited to newspapers, toiletries, shoeshine, tobacco products, pay TV, movies, valet services, health club MISCELLANEOUS charges, in-room mini bars, clothing and footwear will not be reimbursed. ATM/bank fees incurred by Consultant while traveling will not be reimbursed. Costs for project team lunches will not be reimbursed unless pre-approved by the SANITATION DISTRICT. PDSA PROJECT NO. J-98 Revision 062316 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 2 of 2 ATTACHMENT "E" FEE PROPOSAL FORM ATTACHMENT "E" FEE PROPOSAL FORM Submitted by: Brown and Caldwell (Name of Firm) Consultant Name: Brown and Caldwell Raw Labor $ 728,723 Fringe Costs 38.62% $ 281,433 Burdened Labor (Raw Labor+Fringe) $ 1,010,156 Overhead 109.23% $ 1,103,393 Subtotal (Burdened labor+OH) $ 2,113,549 Note: Round all values to nearest dollar. Profit 5.86% $ 123,854 (%of Subtotal) Total Direct Costs, Pot to exceed $ 2,597 TOTAL-"Consultant" Not to Exceed $ 2,240,000 SUMMARY Consultant $ 2,240,000 Major Subconsultant A $ - Major Subconsultant B $ Major Subconsultant C $ Subconsultants Under$100,000 $ - GRAND TOTAL-Not to Exceed $ 2,240,000 REQUEST FOR PROPOSALS PROJECT NO.J-98 Revision 081613 ELECTRICAL POWER DISTRIBUTION SYSTEM IMPROVEMENTS Page 1 of 1 ATTACHMENT "I" COST MATRIX & SUMMARY Electrical Power Distribution System Improvements,J-98 Attachment I-Cost Matrix C E c c -oo e m c °' w t E Y H = d ;u a e >. a m £ d 3 o y Burdened Allowable V d 9 C C pt ` a ` y L y/d p N c d R c 'O `-R R A K N L E R m G 3 Y a L q R u rn u L H £ R c > R p s m rn= c o _ Total Fringe Burdened Labor& Direct {,1 d d L R R L d > N N V Task Item o f m V N a N M Y V >U) 3 Y U' a x x w` N G K U W 0 U Y u-w Q 2 t7 G 0 G a 3 X Q w� tr¢ m z Hours Raw Labor Costs Labor Overhead Overhead Profit Costs Total Fees CA Load Elect Elect Elect QA/QC I&C I&C I&C I&C QA/QC QA/QC PIC PM PE Manager Shed Eng Eng Eng Elect Lead LAN CAD CAD I&C Struct Civil Cost Est Cost Est Cost Est CAD WP PA Biller Average Actual Salary 106.65 78.06 85.16 97.67 78.69 59.47 31.85 55.42 73.63 36.02 56.03 39.53 37.18 72.66 72.79 53.21 66.42 61.50 78.80 54.83 39.57 36.41 27.01 38.62% 109.23% 5.860% PHASE 2-PRELIMINARY DESIGN 2.1 Predesi n Evaluation Studies NOT USED 2.2 Preliminary Design Production 20 20 5 5 2 4 16 72 3,791.99 1,464.47 5,256.46 5,741.63 10,998.08 644.49 11,642.57 2.2.1 DM 1-Electrical 20 20 5 5 2 4 8 64 3,475.43 1,342.21 4,817.64 5,262.31 10,079.95 590.69 10,670.64 2.2.2 DM 2-Instrumentation and Control/Networking Tagging 20 20 5 5 2 4 8 64 3,475.43 1,342.21 4,817.64 5,262.31 10,079.95 590.69 10,670.64 2.2.3 DM 3-Implementation Plan 20 20 5 5 2 4 80 80 8 224 13,709.03 5,294.43 19,003.46 20,757.48 39,760.93 2,329.99 42,090.92 2.2.4 Preminiary Design Drawings 25 75 202 17 17 25 25 8 13 45 452 21,688.45 8,376.08 30,064.53 32,839.49 62,904.01 3,686.18 66,590.19 2.3 Project Management 6 months 112 56 28 21 14 231 16,857.75 6,510.46 23,368.21 25,525.10 48,893.31 2,865.15 51,758.46 2.4 Risk Management 8 16 16 40 3,246.08 1,253.64 4,499.72 4,915.04 9,414.76 551.70 9,966.46 2.5 PDR Production Workshops and Meetings 8 60 62 40 40 35 35 40 40 10 370 23,165.37 8,946.47 32,111.84 35,075.76 67,187.59 3,937.19 1,000.00 72,124.79 2.6 Quality Control 40 40 40 40 160 12,910.40 4,986.00 17,896.40 19,548.23 37,444.63 2,194.26 39,638.89 2.7 Field Verification 100 100 100 300 19,014.00 7,343.21 26,357.21 28,789.98 55,147.18 3,231.62 58,378.81 Subtotal-Phase 2-Preliminary Design 8 180 239 40 259 40 282 100 40 72 172 65 65 40 16 39 80 80 40 45 40 21 14 1,977 121,333.93 46,859.16 168,193.09 183,717.32 351,910.41 20,621.95 1,000.00 373,532.36 PHASE 3-FINAL DESIGN 3.1 Bid Documents CA,GRs,Tech Specs) 30 30 30 30 30 47 47 80 220 544 31,173.45 12,039.19 43,212.64 47,201.16 90,413.80 5,298.25 95,712.05 3.2 Design Support Documentation Cale,Cut Sheets 12 12 12 12 12 46 46 20 20 192 10,481.38 4,047.91 14,529.29 15,870.34 30,399.63 1,781.42 32,181.05 3.3 Design Submittals(Drawings) DS1 152 248 370 617 286 114 114 195 195 18 48 80 80 129 8 2,654 136,904.59 52,872.55 189,777.14 207,293.57 397,070.72 23,268.34 420,339.06 DS2 149 307 463 663 223 105 105 186 186 26 52 80 80 151 8 2,784 145,278.751 56,106.65 201,385.40 219,973.281 421,358.68 24,691.62 446,050.30 DS3 82 125 160 234 68 101 101 182 182 18 41 80 80 114 8 1,576 81,106.91 31,323.49 112,430.40 122,807.72 235,238.12 13,784.95 249,023.08 FOS 67 144 154 74 98 98 125 125 12 30 40 40 84 8 1,099 53,960.40 20,839.51 74,799.91 81,703.94 156,503.84 9,171.13 165,674.97 IFB 40 40 40 40 20 20 30 30 20 20 40 40 40 8 428 23,306.06 9,000.80 32,306.86 35,288.78 67,595.64 3,961.10 71,556.75 3.4 Bid Support Services 16 60 60 20 20 20 30 30 20 20 16 28 24 364 21,914.66 8,463.44 30,378.10 33,182.00 63,560.10 3,724.62 67,284.72 3.5 Project Management 18 months 288 144 18 54 361 540 39,099.24 15,100.13 54,199.37 59,201.97 113,401.33 6,645.32 120,046.65 3.6 Risk Management Assistance 8 24 24 56 4,556.88 1,759.87 6,316.75 6,899.78 13,216.53 774.49 13,991.02 3.7 Workshops and Meetings 8 120 108 65 65 50 50 30 496 34,596.88 13,361.32 47,958.20 52,384.74 100,342.93 5,880.10 1,597.00 107,820.03 3.8 Quality Control 80 96 96 40 312 25,009.44 9,658.65 34,668.09 37,867.95 72,536.04 4,250.61 76,786.65 Subtotal-Phase 3 Final Design 8 432 761 80 996 1,304 1,770 753 96 611 611 738 738 96 210 489 320 320 40 518 64 54 36 11,045 607,388.64 234,573.49 841,962.13 919,675.24 1,761,637.37 103,231.95 1,597.00 1,866,466.32 TOTAL-PHASES 2 AND 3 16 612 1,000 120 1,255 1,344 2,052 853 136 683 783 803 803 136 226 528 400 400 80 563 104 75 50 13,022 728,722.57 281,432.66 1,010,155.23 1,103,392.55 2,113,547.78 123,853.90 2,597.00 2,239,998.68 Rounded-Use for Attach E-Fee Proposal Form 728,723.00 281,433.00 1,010,156.00 1,103,393.00 2,113,549.00 123,854.00 2,597.00 2,240,000.00 Profit Calculations Nhr llueshold 250,000 10°% Nf Threshold 2,500,000 5% Proposed Burdened Labor&Owrh 2,113,549.00 5.86% Date:1/14/2020 Page 1 of 1 Final Negotiated 7 " Electrical Power y 91�141Distribution System MIA y Improvements Project No . J -98 =.. Todd Waltz Project Manager g wl Operations Committee AFebruary 5, 2020 im nCY I "AACD( Projoect Elements 1 . Plant No . 1 Load Shedding 2 . Arc Flash Reduction 3 . Replace obsolete equipment at Plant No . 2 ZA Projoect Elements 1 . Plant No. 1 Load Shedding 2 . Arc Flash Reduction 3. Replace obsolete equipment at Plant No. 2 � ,. -:- - a -�-.n..�-Syr=„■= .uY d► i� �"1�-� , Irr �- !+« HEADWORKS � �� �*M. � �� �4 .. PRIMARY sCou1HERNCCALIFORNNIIAI � !old+-- 1 _ TREATMENT CENTRAL J E D I S O N _ PRIMARY ■ TREATMENT rGENERATION An ED/SON INTERNATIONAL°Company � , DIGESTERS Central Generation SECONDARY �:.• TREATMENT �•- - TRUCK LOADING SANITglTOy I ; SECONDARY SECONDARY CENTRIFUGE TREATMENT TREATMENT 2 9 AM VA Q c INV • • * AL AdIL AIL Alk r/�� THE EN�\� LmnL P ER f ' . -.-0�2 k Projoect Elements 1 . Plant No. 1 Load Shedding 2 . Arc Flash Reduction 3. Replace obsolete equipment at Plant No. 2 HEADWORKS PRIMARY SOUTHERN FORNIA SON , vk,;�• T e =ri �I TREATMENT CENTRAL ow PRIMARY n ED INTERNATIONAL'Compare ■ TREATMENT 1GENERATION ' r DIGESTERS Central Generation SECONDARY TREATMENT t TRUCK LOADING V SANITgl SECONDARY SECONDARY CENTRIFUGE JJJ� TO,t £ TREATMENT TREATMENT (4 �j Amok 11� i 11 9 Ad VA o Vr A rr Ah AdVA cr/�� THE EN�\�o rUTILITY POWER ,A x N L.L 4-0 S• r r rZ_ E o �I A 1 111111 � U V-H+J ►11111 111111 O O O CD V/ \, Z .10 U Q Q ry N CY) Projoect Elements 1 . Plant No. 1 Load Shedding 2 . Arc Flash Reduction 3. Replace obsolete equipment at Plant No. 2 ' ,Ez.raAEKA ° I. . 'EL EOCF AC ZA �k.. election Process • Five firms submitted proposals • Conducted interviews with top two • Recommendation : Brown and Caldwell rig qq r a :ram l I III � L Negotiations Original Proposal Negotiated Total Hours 15,288 133022 Total Fee $23561 J44 $232403000 • Reduced total number of drawings • Reduced assumed level of effort rj 4 •Recommendation Approve a Professional Design Services Agreement with Brown and Caldwell to provide engineering services for Electrical Power Distribution System Improvements, Project No. J-98, for an amount not to exceed $2,240,000; and • Approve a contingency of $224,000 ( 10%) Poo, Questions ? oJ�V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 OPERATIONS COMMITTEE (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-918 Agenda Date: 2/26/2020 Agenda Item No: 12. FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: FLEET PURCHASE OF ONE SEDAN, SIX LIGHT-DUTY TRUCKS, AND THREE VANS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Approve a Purchase Order to National Auto Fleet Group for the purchase of one new/unused Toyota Prius sedan, three new/unused F150 trucks, three new/unused F250 Utility Body trucks, one new/unused Transit Connect Van, and two new/unused Transit Cargo Vans using Sourcewell (formerly National Joint Powers Alliance) Cooperative Contract No. 120716-NAF, for a total amount of $357,312 plus freight; and B. Approve a contingency of $17,866 (5%). BACKGROUND The Orange County Sanitation District (Sanitation District) maintains a fleet of vehicles necessary to meet its business needs. The fleet is comprised of 24 heavy-duty equipment trucks, 95 light-duty trucks, 31 sedans, 12 SUVs, and 10 vans, for a total of 172 vehicles. As part of an overall fleet rightsizing and modernization strategy, the Fleet Services Division of the Sanitation District is systematically replacing the oldest vehicles in the fleet. Vehicle replacement is based on vehicle age, maintenance cost, condition, and mileage. Replacement of older vehicles improves staff safety by ensuring vehicles are equipped with airbags, backup cameras, anti-lock brakes, and traction control. Light-duty trucks compose the largest segment of the fleet and support equipment needs of Engineering, Operations, Collections, and Maintenance staff. Approximately 25% of the Sanitation District's vehicles are "Green" or FLEX fuel vehicles. Replacement vehicles are evaluated for replacement as "Green" (electric, hybrid, CNG) vehicles. Orange County Sanitation District Page 1 of 4 Printed on 2/20/2020 powered by LegistarTM File #: 2020-918 Agenda Date: 2/26/2020 Agenda Item No: 12. RELEVANT STANDARDS • Participate in local, state, and national cooperative purchasing programs • Maintain a proactive asset management program • Ensure the public's money is wisely spent PROBLEM The 2002 Ford Taurus sedan identified for replacement and nine light duty trucks with model years ranging from 2000-2008 identified for replacement have deteriorated physical conditions and decreased availability. PROPOSED SOLUTION Staff recommends the sedan be replaced with a Hybrid/elect sedan. Ford F-150/F-250 light-duty trucks will replace existing trucks in use by construction and maintenance staff. Ford Transit Vans will replace existing light-duty trucks used by Source Control staff. Transit Vans provide evidentiary control for samples collected by the Source Control staff and provide a secure workspace while in the field. Currently, sampling related tasks are done outside, leaving staff and samples exposed to the elements (sun, heat, rain, cold) which can negatively impact evidentiary control and sampling standards. All proposed vehicle types will meet current safety standards, emissions requirements, reduce fuel costs, reduce annual maintenance costs, and have higher availability. TIMING CONCERNS A 5% contingency is recommended should there be a pricing change between the date of approval and date of purchase due to tariffs and uncontrolled market conditions. RAMIFICATIONS OF NOT TAKING ACTION The vehicles selected to be replaced are less reliable, deteriorating, and are no longer economical to maintain. Additionally, these vehicles are not equipped with more modern safety features currently required for fleet vehicles. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District has provisions to purchase materials, services, and equipment from cooperative agreements. These cooperative agreements tend to produce lower unit prices. The Sanitation District is utilizing a cooperative agreement through Sourcewell (formerly National Joint Powers Alliance), Cooperative Contract No. 120716-NAF with National Auto Fleet Group, in Orange County Sanitation District Page 2 of 4 Printed on 2/20/2020 powered by LegistarTM File #: 2020-918 Agenda Date: 2/26/2020 Agenda Item No: 12. accordance with Ordinance No. OCSD-52, Section 2.03(B), Cooperative Purchases. This agreement was awarded using a competitive bid process like the Sanitation District's and has been vetted by Purchasing. The amount of savings under this cooperative agreement is $67,796 versus non-cooperative contract list pricing. Summary information on the quote for one passenger sedan, six light-duty trucks and three Transit Vans is as follows. These costs are inclusive of sales tax. Vehicle Description & Unit Quantities Total Amounts (Including Replacement Options, Tax, Tire Fee) Identifier One 2020 Toyota Prius L $ 26,004.50 A Three 2020 Ford F150 XL trucks $ 95,372.55 B Three 2020 Ford F250 XL utility trucks $132,825.78 C One 2020 Ford Transit Connect van $ 28,552.82 D Two 2020 Ford Transit T-250 medium $ 74,556.18 E roof vans Summary information on the identified vehicles for replacement. Type Year Make Model Mileage Replacement Identifier Sedan 2002 Ford Taurus 67,638 A Light Truck 2000 Ford F-350 90,585 C Light Truck 2003 Ford F-150 79,164 D Light Truck 2004 Ford F-150 159,110 E Light Truck 2004 Ford F-150 122,892 B Light Truck 2006 GMC Canyon 62,726 B Light Truck 2006 GMC Canyon 67,655 B Light Truck 2008 Ford F-250 163,295 C Light Truck 2008 Ford F-250 95,682 E Light Truck 2008 Ford F-250 64,773 C CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted in the FY 2019-20 Budget, (Line item: Section A, Page A-18, Fleet Services, one Sedan and nine light trucks. Orange County Sanitation District Page 3 of 4 Printed on 2/20/2020 powered by LegistarTM File #: 2020-918 Agenda Date: 2/26/2020 Agenda Item No: 12. Date of Approval Contract Amount Contingency 02/26/2020 $357,312 $17,866 (5%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • PowerPoint Presentation - Operations Committee Meeting of February 5, 2020 Orange County Sanitation District Page 4 of 4 Printed on 2/20/2020 powered by LegistarTM 7 Fl rill eet rvices I Don Stokes, Maintenance Manager ' Operations Committee i February 5, 2020 00 �v rt I � - {3 PV i 1 ram_ .� � - ''{•! -- _ � - `c! ZA Fleet Services is Vehicle and equipment maintenance • Motor pool operation • Heavy equipment operation • Facility tour support r • Crane support • Equipment logistics 3 } 1_ 1030 Representat'ion of -- - ;_ eet ; b . z ` ................. AP MO POWER `. AWWW L 0%,I�K.-02 k Fleet Statistics • Median vehicle age - 10 . 3 years • Vehicles that meet or exceed recommended replacement age of seven years - 99 • Oldest vehicle in fleet is 28 years old s Problem Aging Vehicles : • Increased cost of ownership • Decreased reliability oa, � • Declining resale value • Lack safety features yf S IMAM L •Financ 'ial Impact Cost of replacing vehicles exceeding recommendations is $6 .8 million • Anticipated average annual capital expenditure $ 1 . 7 million • Delta of $ 1 .0 million based on historical spending • Total value of current fleet is $ 12 . 5 million Solution Fleet management strategy: OCSD Green Fleet of • CNG VEHICLE • Utilization plan <oc�' ,xF ." WWW.00SD.COM • Standardization OCSD Green Fleet if • Maintenance plan HYBRID VEHICLE WWW.00SD.COM • Replacement plan "' • Alternative fuels ` SA I OCSD Green Fleet If • Best available control technologies ELECTRIC VEHICLE WWW.00SD.COM Replacement criteria : • Age • Mileage • Condition Operational cost • v y � e y+�� ir�w n o n c.r..:.0�es. \Y.....f 1 t�.Y'��`'`I�II'r� "'�.,,' ; y,. � s.r,Y:�{�.`kn.�� 7�f�i1 cat. F.�o� I � i I \ H.`c 1•'\ ZA Past Future Annual Expenditures $3,500,000.00 $3,000,000.00 ■FY 14/15 $2,500,000.00 ■FY 15/16 ■FY 16/17 ❑FY 17/18 $2,000,000.00 ■FY 18/19 ■FY 19/20 ❑FY 20/21 $1,500,000.00 ■FY 21/22 ❑FY 22/23 ■FY 23/24 $1,000,000.00 . ■FY 24/25 ■FY 25/26 ■FY 26/27 $500,000.00 $0.00 , • FY 14 15 FY 15 16 FY 16 17 FY 17 18 FY 18 19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 S '? Question vl r P � �1 Ilk G.: y 1 l —�e oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 ADMINISTRATION COMMITTEE (714)5937433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-943 Agenda Date: 2/26/2020 Agenda Item No: 13. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: A. Receive and file Orange County Sanitation District purchases made under the General Manager's authority for the period of October 1, 2019 to December 31, 2019; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2019 to December 31, 2019: • ALFA LAVAL - Parts and Repairs for Centrifuge Rotating Assembly • CHEVRON - Chevron 5200 HDAX Low Ash 40 Lubricating Oil • EMERSON/CALTROL - Fisher Valve Training for Instrumentation Technicians • FLEXIM - Flow Meters • INTERSCAN/GAS DETECTION - 2 Point H2S Monitoring Systems • PATTERSON - Pumps and Parts • SOLAR TURBINES - Generator Parts and Repairs • TRANE COMPANY - Equipment, Parts, Maintenance, Repairs, and Training • TRIDENT - Actuator Parts and Repairs • TURVAC - Alignment Certification Training BACKGROUND Staff provides the Administration Committee and the Board of Directors quarterly reports of General Manager approved and executed purchases between $50,000 and $100,000; maintenance and repair Services Task Orders between $50,000 and $300,000; and additions to the pre-approved OEM Sole Source List. The list of additions to the pre-approved OEM Sole Source List displays the original equipment manufacturers (OEM) added this quarter that require sole source procurement to maintain, service, or replace equipment currently in operation at Orange County Sanitation District facilities, because the parts and/or service can only be provided by the OEM or their designated representative. Orange County Sanitation District Page 1 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-943 Agenda Date: 2/26/2020 Agenda Item No: 13. RELEVANT STANDARDS • Quarterly financial reporting • Ensure the public's money is wisely spent PRIOR COMMITTEE/BOARD ACTIONS December 2016 - Minute Order 12(b) authorized the General Manager to ratify additions or deletions to the OEM Sole Source list on the General Manager's quarterly approved purchases agenda report. ADDITIONAL INFORMATION In accordance with Board purchasing policies, 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 second quarter of fiscal year 2019-20: Vendor Name Amount Department Description/Discussion CORTECH $74,729.00 Operations & Purchase of Seepex Pump to Replace ENGINEERING Maintenance Sludge Feed Pump 4 at Plant No. 2 Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 (B) E&M ELECTRIC AND$69,780.00 Information 4.nnual Renewal of Wonderware Historian MACHINERY INC. Technology Licenses with Premium Level Support 11/16/19 to 11/15/20 Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 (B) EIDE BAILLY LLP $75,000.00 Administrative Internal Auditing Services 10/1/19 to Services /16/20 Specification No. CS-2019-1053 GIERLICH $63,645.90 Operations & Purchase of Gear Reducer for MITCHELL INC Maintenance Emerson/Polychem Gearbox Board Approved OEM Sole Source List M.O. 11/28/18, Item 15 (B) HOWARD RIDLEY $56,274.00 Operations & Repair Structural Deficiency of Walkway CO Maintenance Between Digesters F & G ant Plant No. 2 MP-688) Specification No. S-2019-1098 PUMPACTION CORP 58,469.16 Operations & Purchase of Putzmeister Pump Parts for - SHG USA Maintenance Plant No. 2 Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 (B) RJ NOBLE $58,160.00 Engineering Northwest Tustin Overlay OCSD Utility COMPANY 8,djustment Sole Source Justification 194 Reason: Unique Product/Service used in connection with City's contractor VAUGHAN'S $52,017.50 Operations & Repair Pump 1 at Plant No. 1 Primary INDUSTRIAL Maintenance Effluent Pump Station (PEPS) REPAIR CO. INC Specification No. S-2019-1097 Orange County Sanitation District Page 2 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-943 Agenda Date: 2/26/2020 Agenda Item No: 13. Additionally, in accordance with Board purchasing policies, 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 second quarter of fiscal year 2019-20: Vendor Name Amount Department Description/Discussion J R FILANC $291,525.00 Operations & Valve Replacement and Repairs on CONSTRUCTION Maintenance Digesters G & S at Plant No. 2 (MP-690) Specification No. TOB-2019-1106 of Master Service Contract S-2018-942BD-4 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: N/A Orange County Sanitation District Page 3 of 3 Printed on 2/20/2020 powered by LegistarTM oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 ADMINISTRATION COMMITTEE (714)5937433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-946 Agenda Date: 2/26/2020 Agenda Item No: 14. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2019 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Orange County Sanitation District Mid-Year Financial Report for the period ended December 31, 2019. BACKGROUND Included in this consolidated report are the following mid-year financial reports for the period ended December 31, 2019: • Mid-Year Budget Review The Budget Review Summary provides the Directors, staff, and general public with a comprehensive overview of the mid-year financial results of the Orange County Sanitation District (Sanitation District) for the period ended December 31, 2019. • Mid-Year Treasurer's Report This section reports on financial portfolio performance with respect to the Sanitation District's funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this agenda report. The report also contains information on the U.S. and global economic outlook from the Sanitation District's investment manager, Chandler Asset Management. • Mid-Year Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. RELEVANT STANDARDS • Quarterly financial reporting Orange County Sanitation District Page 1 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-946 Agenda Date: 2/26/2020 Agenda Item No: 14. ADDITIONAL INFORMATION The mid-year treasurer's report contained within the Consolidated Financial Reports for the period ended December 31, 2019 is being submitted in accordance with the Sanitation District's investment policy that requires the report be submitted to the governing body following the end of each quarter and includes the following information: • Performance results in comparison with the ICE BAML 3-month treasury bill index for the liquid operating portfolio; and the ICE BAML Corp./Govt. 1-5 Year Bond index for the long-term portfolio as identified in the investment policy; and the time-weighted total rate of return for the portfolio for the prior three months, six months, nine months, twelve months, and since inception compared to the Benchmark returns for the same periods: Portfolio Performance Summary As of December 31,2019 Liquid Operating Monies(%) Long-Term Operating Monies(%) Total Rate Benchmark Total Rate Benchmark of Return of Return 3 Months 0.50 0.46 749 0.44 6 Months 1.09 1.02 1.37 1.27 9 Months 1.79 1.67 3.09 3.14 12 Months 2.43 2.28 4.65 4.61 Annualized Since Inception 30 Nov 2014 1.17 1.06 1.84 1.79 • A listing of individual securities held at the end of each reporting period (see the detailed listings of each security contained within the report). • Cost and market values of the portfolios: Liquid Operating Long-Term Cost $174.7 M $567.6 M Market Value $175.6 M $579.9 M • Modified duration of the portfolio compared to the Benchmark: Liquid Operating Long-Term District Policy < 0.50 < 5.00 Benchmark 0.16 2.53 Portfolio 0.21 2.41 • Dollar change in value of the portfolio for a one percent (1%) change in interest rates: Liquid Operating - $362,012 Long- Term - $13,999,829 Orange County Sanitation District Page 2 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-946 Agenda Date: 2/26/2020 Agenda Item No: 14. • None of the portfolios are currently invested in reverse repurchase agreements. • The percent of the Liquid Operating Monies portfolio maturing within 90 days: 72.3% • Average portfolio credit quality: Liquid Operating - AA+/Aaa Long- Term - AA/Aa1 • Percent of portfolio with credit ratings below "A" by any rating agency and a description of such securities: Liquid Operating - no exceptions Long- Term - Percent of portfolio - 0.5% Cost Maturity Moody S&P Fitch Date SLMA 2008-9 A $12,711.16 4/25/2023 Baa3 B B AMRESCO Residential Securities 1999-1 A $89,377.81 6/25/2029 NR 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, except for 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: • Mid-Year Consolidated Financial Report for the period ended December 31, 2019 Orange County Sanitation District Page 3 of 3 Printed on 2/20/2020 powered by LegistarTM r = -1�fud�.=:=_ �:Gat:7�u1rJ � IN INN I I Emu f tI ORANGE COUNTY SANITATION DISTRICT Fir, 111IMPIMM Mid =Yeap Fminancial Re 30pt Orange County, California for the period ended December 31, 2019 Table of Contents ExecutiveSummary...................................................................................................1 Budget Review Section 1 — Consolidated Financial Reports.........................................................................1 Section 2 —Operating Budget Review Chart of the Cost per Million Gallons by Department— Budget and Actual..............1 Chart of the Net Expenses by Major Category— Budget and Actual .......................1 Divisional Contributions to Cost Per Million Gallons................................................2 Comparison of Expenses by Department................................................................3 Summary of Collection, Treatment, and Disposal Expenses by Major Category.....4 Summary of District-Wide Revenues ......................................................................5 Summary of Collection, Treatment and Disposal Revenues....................................5 Summary of Collection, Treatment, and Disposal Expenses by Line Item...............6 Summary of Collection, Treatment, and Disposal Expenses by Process.................8 Chartof Staffing Trends..........................................................................................9 Section 3 — Capital Improvement Program Budget Review Capital Improvement Program Graphs by Type and Funding Source .....................1 Summary of Capital Improvement Construction Requirements - Current Year........2 Summary of Capital Improvement Construction Requirements - Project Life ..........6 Section 4 — Capital Assets Schedule & Debt Service Budget Review Capital Assets Schedule.........................................................................................1 Debt Service Budget Review ..................................................................................1 Section 5 — Self Insurance Budget Review General Liability and Property Fund Budget Review...............................................1 Workers' Compensation Fund Budget Review........................................................2 Quarterly Treasurer's Report........................................................................................1 QuarterlyCOP Report.................................................................................................1 FY 2019-20 Mid-Year Financial Report This Page Intentionally Left Blank Executive Summary Consolidated Financial Reports For the Mid-Year Ended December 31, 2019 Included in this consolidated report are the following quarterly financial reports for the period ended December 31, 2019: • Mid-Year Budget Review: The Consolidated Financial Reports Section provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Sanitation District through the mid-year ended December 31, 2019. Contained within the Consolidated Financial Reports is the budget-to-actual status of the Collections, Treatment and Disposal Operations, the Capital Improvement Program, the Self-Insurance Program, and Debt Service Outlays. Also included is a Capital Assets Schedule as of December 31, 2019. The chart below provides for a summary of these activities. Mid-Year Results as a Percentage of Budget 60.0% $247.9M 50.0°% $80.5 M $1.2 M 40.0% $51.01V $24.2M 30.0% 20.0% 10.0% 0.0% Oper. Oper Exp Capital Debt Self Ins Rev Outlays Service Outlays Various detail information can be found in this report. Below is a descriptive summary of these activities through December 31 st: a) Most major expense categories are anticipated to be at or below budget. b) Total revenues are at 53.2 percent of the $465.7 million budget. Except for IRWD Intra District Sewer Use, Capital Assessments-IRWD, CIP Reimbursements, Grant Revenue, Rents & Leases, and Other Revenue, most major revenue sources are currently tracking close to or exceeding revenue estimates. Overall, total revenues are projected to approximate budget at year-end. More detailed information on revenues is provided within Section 1 — Pages 3 through 5. Page 1 FY 2019-20 Mid-Year Financial Report c) Collection, Treatment and Disposal Costs: As indicated within the Consolidated Financial Reports Section of this report, the net operating requirements through the mid-year of $80.5 million is currently tracking at 47.8 percent of the $168.2 million budget. In addition, net operating expenses have increased $5.1 million or 6.7 percent in comparison with the same period last year. Overall, staff expects the total operating costs to remain within budget throughout the remainder of the year. More detailed information on operating expenses is provided within Section 1 — Pages 1 through 3. The total cost per million gallons is $2,334 based on flows of 187 million gallons per day. This is $117 per million gallons, or 4.8 percent lower than the budgeted cost per million gallons per day. A further description of these costs and benchmarking with other agencies is contained within Section 1 — Pages 6 through 8. d) The total projected capital outlay cash flow of the Capital Improvement Program (CIP) for FY 2019-20 has been revised to $116.8 million, or 76.2 percent of the board approved cash outlay of $153.3 million. The actual cash outlay spending through the mid-year is $51.0 million, or 33.3 percent of the total budgeted outlay. More detailed information on the CIP budget review can be found in Section 3. • Mid-Year Treasurer's Report This section reports on financial portfolio performance with respect to the Sanitation District's funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the national economic outlook from the Sanitation District's money manager, Chandler Asset Management (Chandler). Chandler notes the Long-Term Portfolio quarterly return of 49 basis points outperformed the ICE BAML 1-5 Year US Corp/Govt Rated AAA-A Index return of 44 basis points, while the Liquid Operating Monies Portfolio quarterly return of 50 basis points outperformed the ICE BAML 3-Month US Treasury Bill Index return of 46 basis points. Chandler further notes that they expect US economic growth to moderate in 2020 toward trend growth of about 1.8% compared to 2.3% in 2019. They believe the impact of monetary policy on economic growth is somewhat lagged, and the more accommodative monetary policy stance of the Federal Reserve and other global central banks throughout 2019 should provide a tailwind for the economy in 2020. Though slow global growth continues to create a headwind for the US economy, recent domestic economic data has been mostly in line with expectations and consistent with modest growth. Most notably, the US labor market remains firm which should continue to support consumer spending trends as well as the housing market. Page 2 Executive Summary The Federal Open Market Committee (FOMC) kept the target fed funds rate unchanged in December in a range of 1.50%-1.75%. The vote to keep policy unchanged was unanimous and the Fed's quarterly update on their Summary of Economic Projections was little changed from the September 2019 forecast. Notably the Fed's forecast calls for no change to the fed funds rate in 2020. Chandler believes the hurdle rate to tighten policy remains high, as market-based measures of inflation are still too low. Conversely, if market-based inflation metrics fail to improve, and/or the domestic or global economy experiences an exogenous shock, Chandler believes the Fed has left the door open for additional policy accommodation. The Treasury yield curve steepened slightly in December. The 2-year Treasury yield decreased about four basis points to 1.57%, the 5-year Treasury yield increased almost seven basis points to 1.69%, and the 10-year Treasury yield increased about 14 basis points to 1.92%. Chandler believes the increase in longer-term yields were driven by more favorable developments with regard to global trade and Brexit. Treasury yields declined meaningfully in 2019. At year-end, the 3-month T-bill yield was down 81 basis points, the 2-Year Treasury yield was down 92 basis points, and the 10-Year Treasury yield was down 77 basis points. Chandler believes the year-over-year decline in long-term Treasury yields largely reflects a decline in global economic growth and inflation expectations, while the decline in shorter-term rates is in line with the Fed's three 25 basis point rate cuts in 2019. Notably, the shape of the yield curve has normalized to some extent over the past few months and is now upward sloping, which Chandler believes reflects increased optimism about the domestic economic outlook. The Consumer Price Index (CPI) was up 2.1% year-over-year in November, up from 1.8% in October. Core CPI (CPI less food and energy) was up 2.3% year- over-year in November, unchanged from October. The Personal Consumption Expenditures (PCE) index was up 1.5% year-over-year in November versus up 1.4% year-over-year in October. Core PCE, which is the Fed's primary inflation gauge, was up 1.6% year-over-year in November versus 1.7% year-over-year in October. Core PCE softened and remains below the Fed's 2.0% inflation target. Economic Outlook Risk assets closed out the year in strong form with equity prices grinding higher over the quarter, investment grade credit spreads moving lower, and the US Treasury yield curve steepening moderately. Although geopolitical risks continue to influence markets and remain a constant element for investors to monitor, the downside risks to the global economic backdrop moderated in Q4. Most significantly for investor sentiment the US/China trade impasse made incremental progress with the Phase 1 deal expected to be signed in mid-January. Although many long-term challenging issues remain to be resolved specific to US/China Page 3 FY 2019-20 Mid-Year Financial Report trade, the modest progress thus far, including some concessions by China on intellectual property reform, helped to provide a positive catalyst for asset price performance. The protests in Hong Kong continue and remain in the news, however the lack of a draconian response by China has allowed the geopolitical risk in the region to remain contained. In the United Kingdom, Boris Johnson was able to remain Prime Minister with a strong performance in the December election, providing a mandate for the country to move forward with Brexit. Policymakers were also active domestically, with the Federal Reserve stepping in to address some of the acute liquidity pressures facing money markets at the end of Q3. Notably the Federal Reserve began to provide ample overnight and term liquidity via the repo market, in addition to beginning to purchase T-Bills at regular intervals to increase the size of the Fed's balance sheet and add liquidity into the banking system. Although the Federal Reserve's balance sheet is again expanding, the composition of the purchased assets is all in short maturity notes, distinguishing the policy move from earlier forms of quantitative easing where longer maturity fixed income assets were added to the Fed's balance sheet. Taking proactive steps to ensure ample liquidity in the money markets is consistent with Chandler's view policy makers will continue to be biased to support economic growth, particularly with inflation concerns benign. In late October the Federal Reserve reduced the Fed Funds rate for the 3rd time in 2019 to a target range of 1.50% to 1.75% to further support the economic expansion. The Chandler team holds the view the front-end of the Treasury curve will continue to trade in a tight range centered around the Federal Reserve's Federal Funds rate target of 1.50% to 1.75% and is not forecasting additional easing of policy over an intermediate time horizon. Observed inflation metrics remain low, with the PCE Core inflation most recently coming in at 1.60% year- over-year. Market based measures of inflation also remain very low, with Ten Year Treasury Inflation Breakeven Spreads closing out the year at 1.79%, well below the market's consensus of a "normal" range of 2.30% to 2.60%. The low levels of inflation remain a conundrum for policy makers as the unemployment rate remains low at 3.5% and the three-month moving average of non-farm payrolls is strong at 184k. The US consumer remains on solid footing and will be enough to support trend GDP growth in 2020 despite the lingering headwinds in Chandler's view. Until both observed and market-based measures of inflation start to move higher, the Federal Reserve will remain biased to keep policy accommodative, which should also continue to support the performance of risk assets. The Treasury yield curve moderately steepened during Q4, with 10y Treasury yields moving higher by 25 basis points to close out the year at 1.92%. Assuming the economic expansion continues, longer term Treasury yields should continue to drift upwards. Given the low level of rates currently, and the Chandler team's view negative interest rates in Europe and Japan are largely a policy failure, the Federal Reserve will likely look to embrace alternative tools away from continuing to drop interest rates to support continued growth and higher inflation. The Chandler team is also expecting additional communication from the Federal Reserve on their strategic policy review, with the 2% inflation target a likely area of focus. Page 4 Executive Summary • Mid-Year Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. Page 5 FY 2019-20 Mid-Year Financial Report This Page Intentionally Left Blank Page 6 Consolidated Financial Reports Mid-Year Financial Report December 31, 2019 Financial Management is pleased to present the FY 2019-20 mid-year financial report. This report provides a comprehensive overview of the financial condition of the Sanitation District and reports on the status of all capital projects in progress. A summary of the sections contained within this report is provided below. Operating Budget Review: This section reports on collection, treatment and disposal net operating requirements. At December 31, 2019, 47.8 percent, or $80.5 million of the FY 2019-20 net operating budget of $168.2 million has been expended. Net operating expenses increased from the same period last year by $5.1 million, or 6.7 percent, mainly due to an increase of $3.9 million in Repairs and Maintenance, $1.8 million in Operating Materials and Supplies, $655,000 in Salaries and Benefits, $398,000 in Research and Monitoring, $259,000 in Utilities, $256,000 in Administrative Expenses, $65,000 in Professional Services, and a decrease of $138,000 in indirect costs allocated out to capital projects, partially offset by a decrease of $1.3 million in Contractual Services, $899,000 in Other Non-Operating Expense, and $297,000 in Other Operating Supplies. These and other variances that factor into this net increase in expenses are discussed in more detail below. Overall, staff expects the total operating costs to remain at or slightly below budget throughout the remainder of the year. Significant operating results as of December 31, 2019 include the following: • Salaries, Wages and Benefits — Personnel costs of $49.4 million are on target at 50.2 percent of budget through the mid-year of FY 2019-20. Although the budget is based on a 5 percent vacancy factor, staffing is 22 full-time equivalents (FTEs), or 3.4 percent below the total 640 FTEs approved in the FY 2019-20 budget. Salary and benefit costs are $655,000 or 1 .3 percent higher than the $48.7 million incurred in the same period last year, mainly due to an increase of $659,000 in salaries and wages resulting from cost of living adjustments included in the current Memorandums of Understanding for all employee bargaining units. Net operating personnel costs are expected to approximate budget throughout the remainder of the year. • Administrative Expenses — Administrative Expenses totaled $1.1 million, or 54.1 percent of the $2.0 million budget through December 31. These costs are $256,000 or 30.4 percent higher at December 31 in comparison with the prior year, mainly due to increases of $174,000 in purchases of small computer items including HP Elitebooks, $68,000 in minor furniture and fixtures for workstation installations, ergonomic chairs, and renovation of the Control Center breakroom, and $35,000 in books and publications such as various engineering design standards and manuals of practice. It is anticipated that administrative costs will approximate budget at year-end. Section 1 - Page 1 FY 2019-20 Mid-Year Financial Report • Printing and Publication Expenses - Printing and Publication Expenses totaled $147,000 or 44.6 percent of the $330,000 budget through December 31. These costs are $15,000 or 11 .4 percent higher at December 31 in comparison with the prior year. Printing and publication costs are expected to approximate budget at year-end. • Training and Meetings - Training and meetings of $313,000 are below target at 28.2 percent of the $1.1 million budget. This account is lower than the proportionate budget due to the timing and need for training throughout the year. These costs have increased over the same period last year by $3,000 or 1 .0 percent. Total training and meeting costs are anticipated to be below budget at year-end. • Operating Materials and Supplies - Operating materials and supplies of $9.7 million is on target at 46.0 percent of the $21.0 million budget through December 31. Operating Materials and Supplies are higher than the prior year by $1.8 million or 22.9 percent, primarily due to an increase in Chemical Coagulants of $2.5 million brought about by higher chemical unit costs and usage as compared to the prior year, partially offset by a decrease in Odor Control of $699,000. Based on current processes, operating materials and supplies are anticipated to approximate budget at year-end. • Contractual Services - Contractual services is below target at $9.0 million or 41.0 percent of the $22.0 million budget through December 31. Contractual Services is lower by $1.3 million or 12.2 percent over the same period last year. Solids Removal costs, budgeted at $13.4 million, comprise the majority of this expense category at $6.1 million, or 45.2 percent of budget at December 31. These costs decreased by $1 .7 million or 22.1 percent due to a reduction in biosolids production attributable to the new dewatering centrifuges that replaced aging belt presses. This decrease is offset by increases in Other Contractual Services of $314,000 for manhole rehabilitation, industrial cleaning, and digester assessment services, Oxygen of $47,000 for liquid oxygen and vaporization system maintenance used for the activated sludge system at Plant 2, Temporary Services of $44,000 as a result of position vacancies in the current period, and Outside Lab Services of $41,000 for compliance and process monitoring. County Service Fees totaled only $15,000, or 2.9 percent of the $512,000 budget through the mid-year as the preponderance of these fees are billed by the County in the fourth quarter. Total contractual services costs are anticipated to approximate budget at year-end. • Professional Services - Professional services costs totaled $1.8 million or 32.8 percent of the $5.6 million budget through December 31. Professional service costs, such as Audit & Accounting, Engineering, Environmental Scientific Consulting, Advocacy Efforts, and Other Services, are proportionately low through December 31 due to a variety of factors such as timing of services and re-evaluation of needs for services. These costs are $65,000 or 3.7 percent higher at December 31 in comparison with the prior year, mainly due to increases of $75,000 in Software Program Consulting and $30,000 in Labor Negotiation Services, offset by a Section 1 - Page 2 Consolidated Financial Reports decrease of $43,000 in Engineering services. It is anticipated that the costs for this category will be below budget at year-end. • Research and Monitoring — Research and monitoring costs totaled $786,000, or 71.5 percent of the $1.1 million budget through December 31. These costs are $398,000, or 102.3 percent higher at December 31 in comparison with the prior year, mainly due to increases of $250,000 in Research costs, reflecting the annual contribution to Southern California Coastal Water Research Project which is now expensed in full when paid instead of allocating on a quarterly basis, $83,000 in Environmental Monitoring costs for ocean water quality analysis, and $64,000 in Air Quality Monitoring costs for emissions testing. Total research and monitoring costs are anticipated to exceed budget at year-end. • Repairs and Maintenance — Repair and maintenance costs totaled $12.4 million, or 53.0 percent of the $23.5 million budget through December 31. These costs are $3.9 million, or 46.3 percent higher at December 31 in comparison with the prior year, mainly for repair and maintenance services such as for digester cleaning, mechanical rehabilitation and overhaul of primary clarifier tanks, and information technology software. It is anticipated that the costs for this category will approximate budget at year-end. • Utilities — Utilities costs totaled $4.5 million, or 48.2 percent of the $9.3 million budget through December 31. These costs are $259,000, or 6.2 percent higher at December 31 in comparison with the prior year, primarily due to an increase of $187,000 for Water and $183,000 for Power due to the higher demand of these resources by the new biosolids dewatering centrifuges, partially offset by the decrease of $162,000 in natural gas costs due to a volatile natural gas market in the prior period that caused unit prices to spike. It is anticipated that the costs will approximate budget at year-end. • Other Operating Supplies — Other operating supplies costs totaled $1.3 million, or 42.3 percent of the $3.0 million budget through December 31. Property and General Liability Insurance, budgeted at $1.7 million, comprise the majority of this expense category at $860,000. These costs are $210,000, or 32.4 percent higher at December 31 in comparison with the prior year, primarily due to an increase in budgeted in-lieu premium charges to maintain recommended reserve balances. In addition, Regulatory Operating Fees decreased by $568,000, or 79.8 percent due to timing of payments for annual ocean discharge permit fees. It is anticipated that other operating supplies costs will approximate budget at year-end. • Revenues — Service Fees and Property Taxes — Through December 31, revenues from service fees are at $166.9 million, or 56.0 percent of the $298.1 million budget and property taxes are at $47.6 million, or 49.4 percent of the $96.4 million budget. These items comprise the majority of the Sanitation District's revenues and are mostly collected by the County through the property tax roll and distributed to the Sanitation District throughout the year based on a set distribution schedule that begins in November of each year. The increase of $5.9 million, or 3.7 percent in service fee revenue over the prior period is due to the timing of receipts, Section 1 - Page 3 FY 2019-20 Mid-Year Financial Report accompanied by an increase in sewer service rates and a reduction in issued user fee rebates. The property tax revenue increase of $2.0 million, or 4.5 percent over the prior period is a result of timing of property tax collections from the County as well as growth in assessed property values. These revenues are expected to approximate budget at year-end. • Revenues — Permittee User Fees — Permittee User Fees are at $6.3 million, or 63.8 percent of the $9.9 million budget. The revenues through the mid-year are higher than the same period last year by $3.8 million due to the prior year having a reduction of $3.3 million for the adjustment of estimated FY 2017-18 supplemental capital facilities capacity charges (CFCC) to industrial users, which were previously recorded as permit user fees. The number of permittees fluctuates from year to year as businesses are established or close their operations. Permit user fees revenues are expected to approximate or exceed budget at year-end. • Revenues — Inter District Sewer Use — SAWPA and SBSD — Inter District Sewer revenues - SAWPA and SBSD are at $1.4 million, or 50.9 percent of the $2.7 million budget. This revenue is derived from charges to the Santa Ana Watershed Protection Agency (SAWPA) and Sunset Beach Sanitary District (SBSD) for treatment of flows. The revenues through the mid-year are higher than the same period last year by $92,000, or 7.3 percent due to an increase in flows received from these agencies and a resulting increase in operation and maintenance charges. These revenues are expected to approximate budget at year-end. • Revenues — Intra District Sewer Use — IRWD — Intra District Sewer revenues - IRWD are at $585,000, or 8.5 percent of the $6.9 million budget. This revenue is derived from charges to the Irvine Ranch Water District (IRWD) for treatment of flows. The revenues through the mid-year are higher than the same period last year by $116,000 or 24.7 percent, mainly due to a decrease of $240,000 in interest income allocated to IRWD based on lower cash reserves, offset by an increase of $101 ,000 in property tax income and a decrease of $23,000 in operating and maintenance charges to IRWD. These revenues are expected to be below budget at year-end. • Revenues - Sludge Disposal — IRWD — Sludge Disposal fees - IRWD are at $4.5 million, or 83.1 percent of the $5.4 million budget. The revenue is for the handling, treatment, and disposal of solids derived from flows discharged by IRWD to the Sanitation District. The revenues through the mid-year are higher than the same period last year by $503,000, or 12.6 percent, mainly due to increased solids received from IRWD. The current fiscal year quarterly billing to IRWD is based on estimates. The budget reflects the anticipated completion of IRWD solids processing facilities that would cease solids to the OCSD line. However, the timeline is no longer forecasted to be complete during the current fiscal year. It is anticipated that IRWD sludge disposal revenues will exceed budget at year-end. • Revenues — Capital Assessments — IRWD — Capital Assessments-IRWD are at $1.5 million, or 28.5 percent of the $5.4 million budget. The revenues through the mid-year are lower than the same period last year by $588,000 or 27.6 percent, Section 1 - Page 4 Consolidated Financial Reports mainly due to a decrease in joint capital costs allocable to IRWD. It is estimated that IRWD capital assessments revenues will be below budget at year-end. • Revenues — Capital Facilities Capacity Charges (CFCC) — CFCC are at $7.6 million, or 42.4 percent of the $18.0 million budget. The revenues through the mid-year are lower than the same period last year by $1.6 million, or 17.3 percent, due to additional charges of $3.3 million in the prior year for the adjustment of estimated FY 2017-18 supplemental capital facilities capacity charges to industrial users, which were previously recorded as permit user fees, partially offset by an increase in connection fees collected from cities and supplemental capital facilities capacity charges to industrial users. These revenues are expected to be below the budget at year-end. • Revenues — Interest Earnings — Interest Earnings are at $9.2 million, or 138.8 percent of the $6.6 million budget. The revenues through the mid-year are lower than the same period last year by $242,000, or 2.6 percent due to lower yields earned on securities held in the investment portfolios. It is estimated that interest earnings will exceed the budget amount at year-end. • Revenues — CIP Reimbursements — CIP Reimbursements are at $662,000, or 11.1 percent of the $6.0 million budget. This revenue is $643,000, or 3443.5 percent higher than the same period last year. The increase is due to timing of reimbursements received for construction projects from the Orange County Water District for P2-122 Headworks Modifications at Plant 2 for GWRS Final Expansion. No reimbursements were received for these projects during the same period in the prior year. These revenues are expected to be below budget at year-end. • Revenues — Wastehauler — Wastehauler revenues are at $502,000, or 67.0 percent of the $750,000 budget. This revenue is derived from fees charged to wastehaulers allowing them to dump waste into the Sanitation District's system. The revenues through the mid-year are higher than the same period last year by $169,000, or 50.9 percent due to an increase in waste dumping. These revenues are expected to approximate or exceed budget at year-end. • Revenues — CNG Sales — CNG Sales revenues are at $134,000, or 33.4 percent of the $400,000 budget. This revenue is derived from public sales at the Sanitation District's Compressed Natural Gas (CNG) fueling station. The revenues through the mid-year are lower than the same period last year by $41,000, or 23.5 percent. These revenues are expected to be below budget at year-end. • Revenues — Rents & Leases — Rents & Leases revenues are at $374,000, or 16.5 percent of the $2.3 million budget. The revenues through the mid-year are lower than the same period last year by $566,000, or 60.2 percent due to less rent received as tenants move out of the properties acquired for construction of the new headquarters building. These revenues are expected to be below budget at year- end. Section 1 - Page 5 FY 2019-20 Mid-Year Financial Report Comparison of Mid-Year Cost per Million Gallon Results with Budget Last Five Years ; I $2.500 $2.450 $2.400 , u� $2.350 04 v_ 04 $2.300 C' $2.250 $2.200 CD N $2.150 r N v ti $2.100 603� � $2.050 6c* $2.000 61), o $1.950 N o $1.900 $1.850 $1.800 $1.750 $1.700 $1.650 $17600 $1.550 $17500 15-16 16-17 17-18 18-19 19-20 Mid- Annual Mid- Annual Nlfd- Annual Mid- Annual Mid- Annual Year Budget Year Budget Year Budget Year Budget Year Budget As demonstrated in the preceding graph for each of the last four fiscal years, the cost per million gallons at the end of the mid-year has been between 3.5 percent higher to 8.2 percent lower than the annual budget. The FY 2019-20 mid-year cost per million gallons of $2,334 is 4.8 percent lower when compared with this year's budget. The increase in cost per million gallons of $118 from the previous year is primarily due to an increase in operating expenses, which are 6.7 percent higher than the same period last year, offset by an increase in flows, which are 1.3 percent higher than the same period last year. Staff believes that overall operating costs will be below budget at year-end. The total cost per million gallons at December 31 is $2,334 based on flows of 187 million gallons per day. This is $117 per million gallons, or 4.8 percent lower than the budgeted cost per million gallons of $2,451. There is an inverse relationship between the amount of flows and the cost per unit of collection, treatment, and disposal. Consequently, the lower cost per million gallons is due to net expenses being 4.3 percent less than the proportionate budget through December 31, partially offset by flows of 187 million gallons per day being 0.3 percent less than the budgeted flow of 188 million gallons per day. More detailed information on operating revenues, costs, and related information is provided within Section 2. Section 1 - Page 6 Consolidated Financial Reports Following are data tables showing the last five years of Single Family Residential User Fees (SFR) and the cost per MG to collect, treat, and dispose of wastewater for OCSD and for similar agencies. The agencies used in the table were determined to be those that most closely resembled OCSD in terms of services provided and treatment levels. The summaries demonstrate that OCSD's SFR and cost per million gallons are each one of the lowest in their respective group. Benchmark Study Five-Year Single Family Residential Rate Rates as of July 2015 2016 2017 2018 2019 Agency SFR SFR SFR SFR SFR Notes San Francisco $ 784 $ 842 $ 937 $ 988 $ 1,076 Vallejo Sanitation/Flood Control District $ 520 $ 520 $ 520 $ 585 $ 656 Central Contra Costa Sanitary District $ 471 $ 503 $ 530 $ 567 $ 598 City of Los Angeles $ 464 $ 495 $ 527 $ 561 $ 597 Note 1 City of San Diego $ 573 $ 573 $ 573 $ 573 $ 573 Note 4 Dublin San Ramon Services District $ 382 $ 382 $ 397 $ 423 $ 447 Sacramento County $ 384 $ 420 $ 432 $ 444 $ 444 East Bay MUD $ 355 $ 373 $ 391 $ 410 $ 423 Union Sanitary District $ 377 $ 380 $ 393 $ 407 $ 421 City of Hayward $ 347 $ 358 $ 375 $ 394 $ 412 Orange County Sanitation District $ 322 $ 327 $ 331 $ 335 $ 339 Irvine Ranch Water District $ 289 $ 309 $ 309 $ 309 $ 313 Note 2 City of Fresno $ 309 $ 309 $ 309 $ 309 $ 309 Note 3 Oro Loma Sanitary District $ 206 $ 221 $ 238 $ 256 $ 275 Los Angeles County $ 177 $ 182 $ 186 $ 191 $ 196 Note 5 Notes: (1) - Data is for the typical SFR customer rate. (2) - Data represents the usage of 10 hundred cubic feet per unit. (3) - Data represents the minimum SFR rate not including flow. (4) - Data represents the base sewer fee plus the average usage of 9 hundred cubic feet per month. (5) - Data represents the Average Service Charge Rates for the prior fiscal year. Section 1 - Page 7 FY 2019-20 Mid-Year Financial Report Benchmark Study Five-Year Cost per MG FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 Agency Svc. Trt. Cost/MG Cost/MG Cost/MG Cost/MG Cost/MG Notes Vallejo Sanitation/Flood Control District B 3 $ 5,590 $ 5,396 $ 4,745 $ 5,393 $ 6,661 Union Sanitary District B 3 $ 3,911 $ 3,957 $ 4,039 $ 4,757 $ 4,838 City of San Diego B 4 $ 3,592 $ 3,606 $ 3,834 $ 4,147 $ 4,180 Central Contra Costa Sanitary District B 4 $ 6,281 $ 6,454 $ 6,081 $ 5,588 $ 3,980 Note 4 Dublin San Ramon Services District B 4 $ 2,522 $ 2,896 $ 2,961 $ 3,422 $ 3,692 City of Los Angeles B 4 $ 2,269 $ 2,452 $ 2,487 $ 2,329 $ 3,046 Note 2 Sacramento County T 4 $ 2,494 $ 2,571 $ 2,752 $ 2,831 $ 2,812 East Bay MUD T 3 $ 2,728 $ 2,599 $ 2,353 $ 3,137 $ 2,710 Note 3 Orange County Sanitation District B 3 $ 2,071 $ 2,110 $ 2,055 $ 2,069 $ 2,275 City of Fresno B 4 $ 1,629 $ 1,678 $ 1,796 $ 1,813 $ 1,945 Los Angeles County B 4 $ 1,239 $ 1,371 $ 1,151 $ 1,365 $ 1,506 Note 1 San Francisco B 3 $ 5,358 $ 5,268 $ 4,916 $ 5,295 N/A Legend for Service Provided and Treatment Level: B -Agency operates both collection and treatment facilities T-Agency provides treatment services but not collection 3 -Secondary treatment 4 -Advanced secondary or secondary with some tertiary treatment Notes: (1)- Does not include source control or overhead costs. (2)-2017 Influent flow has not been reduced by the amount of sludge discharged to the sewers from DCTWRP and LAGWRP. (3)-Operating expense decreased $1.1 million. (4)-Operating expense decreased $36.4 million; $30.4 million due to an adjustment to the Sanitation District's Other Post Employment Benefit Plan (OPEB)-Transition to CalPers Health Insurance N/A - Not currently available. Section 1 - Page 8 Consolidated Financial Reports Capital Outlay Review: $2 00,000.000 $150,000.000 $1007 000,000 $5070007000 $0 LO 12,31?19 Actual Projected 2019-20 2019-20 Capital Outlay Capital Outlay Capital Outlay Cashflow Budget $51;034,876 $1 16;843;200 $153,3267000 As depicted by the preceding chart, Capital Outlays totaled $51.0 million or 33.3 percent of the capital outlay cash flow budget for FY 2019-20 as of December 31, 2019. Costs are proportionately low through the mid-year as some projects are still in the design phase or have experienced various delays or deferrals. Examples as of December 31 are Ocean Outfall System Rehabilitation, which has a budget of $26.9 million but actual costs of $8.5 million, Newhope-Placentia Trunk Replacement, which has a budget of $22.7 million but actual costs of $6.7 million, Headquarters Complex and Site Security at Plant 1, which has a budget of $9.8 million but actual costs of $2.4 million, and Rehabilitation of Western Regional Sewers, which has a budget of $9.6 million but actual costs of $950,000. Overall, the capital outlay costs of the capital improvement program are expected to approximate $116.8 million, or 76.2 percent of the capital outlay cash flow budget at year-end. More detailed information on the capital improvement program is provided within Section 3. Capital Assets Schedule and Debt Service Budget Review: Section 4 is the Capital Assets Schedule and Debt Service Section. This section shows the cost value of the Sanitation District's capital facilities at December 31 , 2019, as well as the debt service costs resulting from the need to provide funding for the construction of capital facilities. The majority of principal payments on debt issues are due in February during the third quarter of each fiscal year. As of December 31, 2019, no principal payments have been made through the end of the mid-year. Total principal payments are expected to Section 1 - Page 9 FY 2019-20 Mid-Year Financial Report approximate budget at year-end. Interest costs are expensed ratably throughout the fiscal year. Interest expense is anticipated to approximate budget at year-end. Self-Insurance Budget Reviews: Section 5 is the Self-Insurance Section. Through December 31, the Self-Insurance Fund revenues totaled $1 .3 million, or 51.5 percent of the budget, while expenses were $1.2 million, or 46.7 percent of the budget. Separate fund accounting is used for recording the revenue and expenses incurred in managing these liability claims. The revenues to these funds represent charges to operating divisions. Expenses to these funds include actual claims paid, claims administration, and excess loss policies. Section 1 - Page 10 Operating Budget Review Cost per Million Gallons by Department Budget and Actual December 31, 2019 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 > a) C U cA C (q C a) C 7 U E D _U E U N O C U m a1 C 7 a) a) C Z m C_ C 2 C a, LU CcE(n !n C CL W f0 Q lL W O ■Budget ■Actual Collection, Treatment, & Disposal Expenses by Major Category Budget and Actual (in thousands) December 31, 2019 $75,000 $70,000 $65,000 $60,000 $55,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 AiJ m W O m W 0 0 C U W y U fA W — C W U U C _ @ > cc C C ca — C 'Z '2 O M =_ fn ,a m XX a X rn <n o = CO Ui aa) d ,tS m m m m N > NS O) c CO CL 06 N O_ E _ 15 w (0O fn - @ ll.l C C O O O2 N Q E a V a a' m Q � � FN Budget ■Actual Section 2 - Page 1 FY 2019-20 Mid-Year Financial Report Divisional Contributions to Cost Per Million Gallons For the Six Months Ended December 31, 2019 2019-20 12/31/17 12/31/18 Annual 12/31/19 Actual Actual Budget Actual Flow in Million Gallons 34,284.89 34,032.65 68,620.00 34,481.22 Flow in Million Gallons per Day 186.33 184.96 188.00 187.40 Executive Management Department General Management Administration $ 37.11 $ 28.16 $ 46.24 $ 32.42 Board Services 9.27 11.18 10.11 9.24 Public Affairs 14.81 14.62 16.84 16.70 Subtotal 61.19 53.96 73.19 58.36 Human Resources Department Human Resources 53.80 59.44 72.68 61.43 Risk Management/Safety/Security 83.75 71.06 84.31 79.97 Subtotal 137.55 130.50 156.99 141.40 Administrative Services Department Administrative Services 7.24 6.92 2.63 9.03 Financial Management 53.97 36.45 50.17 40.85 Contracts, Purchasing, &Materials Mgmt. 65.85 94.04 72.38 61.12 Information Technology 159.00 179.28 177.20 204.08 Subtotal 286.06 316.69 302.38 315.08 Environmental Services Department Environmental Services Administration 12.57 13.10 9.03 19.61 Resource Protection 81.58 88.03 83.86 81.27 Laboratory, Monitoring and Compliance 152.00 174.85 166.03 167.18 Subtotal 246.15 275.98 258.92 268.06 Engineering Department Engineering Administration 7.49 8.35 10.99 15.27 Planning 47.21 53.25 78.91 52.69 Project Management Office 37.41 44.65 73.15 69.03 Design 122.86 128.17 110.52 108.70 Construction Management 69.63 78.35 82.63 94.69 Subtotal 284.60 312.77 356.20 340.38 Operations&Maintenance Department Operations&Maintenance Administration 8.39 8.69 11.73 3.97 Collections Facilities O&M 191.55 185.53 194.83 162.97 Fleet Services 27.35 29.99 27.40 27.31 Plant No. 1 Operations 376.33 392.67 459.68 448.06 Plant No.2 Operations 286.06 304.12 276.73 259.52 Plant No. 1 Maintenance 229.93 193.49 369.47 314.30 Maintenance Reliability and Planning 102.02 93.02 - - Plant No.2 Maintenance 183.14 216.89 260.88 285.03 Subtotal 1,404.77 1,424.40 1,600.72 1,501.16 Total Operating Expenses 2,420.32 2,514.30 2,748.40 2,624.44 Cost Allocation (295.56) (298.74) (297.40) (290.83) Net Operating Requirements $ 2,124.76 $ 2,215.56 $ 2,451.00 $ 2,333.61 Section 2 - Page 2 Operating Budget Review Comparison of Expenses by Department For the Six Months Ended December 31, 2019 2019-20 12/31/17 12/31/18 Year to Date Budget% Department and Division Actual Actual Budget 12/31/19 Realized Executive Management Department General Management Administration $ 1,272,284 $ 958,205 $ 3,172,680 $ 1,117,989 35.24% Board Services 317,936 380,550 693,980 318,659 45.92% Public Affairs 507,736 497,665 1,155,600 575,927 49.84% Subtotal 2,097,956 1,836,420 5,022,260 2,012,575 40.07% Human Resources Department Human Resources 1,844,414 2,022,731 4,987,200 2,118,082 42.47% Risk Management/Safety/Security 2,871,454 2,418,359 5,785,360 2,757,525 47.66% Subtotal 4,715,868 4,441,090 10,772,560 4,875,607 45.26% Administrative Services Department Administrative Services 248,261 235,612 180,710 311,306 172.27% Financial Management 1,850,402 1,240,322 3,442,410 1,408,491 40.92% Contracts, Purchasing,&Materials Mgmt. 2,257,532 3,200,484 4,966,960 2,107,389 42.43% Information Technology 5,451,430 6,101,429 12,159,200 7,037,087 57.87% Subtotal 9,807,625 10,777,847 20,749,280 10,864,273 52.36% Environmental Services Department Environmental Services Administration 430,902 445,932 619,510 676,272 109.16% Resource Protection 2,796,905 2,995,873 5,754,790 2,802,305 48.70% Laboratory, Monitoring and Compliance 5,211,394 5,950,505 11,393,290 5,764,716 50.60% Subtotal 8,439,201 9,392,310 17,767,590 9,243,293 52.02% Engineering Department Engineering Administration 256,820 284,155 753,920 526,555 69.84% Planning 1,618,508 1,812,174 5,414,675 1,816,775 33.55% Project Management Office 1,282,645 1,519,557 5,019,310 2,380,242 47.42% Design 4,212,371 4,361,898 7,583,810 3,747,941 49.42% Construction Management 2,387,126 2,666,322 5,670,320 3,264,991 57.58% Subtotal 9,757,470 10,644,106 24,442,035 11,736,504 48.02% Operations&Maintenance Department Operations&Maintenance Administration 287,746 295,795 804,870 136,893 17.01% Collections Facilities O&M 6,567,237 6,313,957 13,369,492 5,619,439 42.03% Fleet Services 937,697 1,020,570 1,880,480 941,739 50.08% Plant No. 1 Operations 12,902,313 13,363,543 31,542,920 15,449,718 48.98% Plant No. 2 Operations 9,807,555 10,350,051 18,989,328 8,948,614 47.12% Plant No. 1 Maintenance 7,883,274 6,584,980 25,352,831 10,837,403 42.75% Maintenance Reliability and Planning 3,497,816 3,165,726 - - 0.00% Plant No.2 Maintenance 6,278,849 7,381,359 17,901,451 9,828,144 54.90% Subtotal 48,162,487 48,475,981 109,841,372 51,761,950 47.12% Total Operating Expenses 82,980,607 85,567,754 188,595,097 90,494,202 47.98% Cost Allocation (10,133,335) (10,166,490) (20,378,610) (10,028,374) 49.21% Net Operating Requirements $ 72,847,272 $ 75,401,264 $ 168,216,487 $ 80,465,828 47.83% Section 2 - Page 3 FY 2019-20 Mid-Year Financial Report Summary of Collection, Treatment, & Disposal Expenses by Major Category For the Six Months Ended December 31, 2019 Expense Expense Increase Increase Percent Budget Through Through (Decrease) (Decrease) Budget Remaining Description 2019-20 12/31/19 12/31/18 $ % Realized Budget Salary&Wages $ 74,364,500 37,684,874 37,026,006 $ 658,868 1.78% 50.68% $ 36,679,626 Employee Benefits 24,069,740 11,716,372 11,719,773 (3,401) -0.03% 48.68% 12,353,368 Administrative Expenses 2,027,930 1,097,299 841,702 255,597 30.37% 54.11% 930,631 Printing&Publication 329,970 147,174 132,166 15,008 11.36% 44.60% 182,796 Training&Meetings 1,109,740 312,555 309,481 3,074 0.99% 28.16% 797,185 Operating Materials&Supplies 21,008,781 9,654,809 7,861,299 1,793,510 22.81% 45.96% 11,353,972 Contractual Services 22,033,974 9,022,335 10,279,554 (1,257,219) -12.23% 40.95% 13,011,639 Professional Services 5,586,170 1,832,795 1,767,374 65,421 3.70% 32.81% 3,753,375 Research&Monitoring 1,099,600 786,047 388,535 397,512 102.31% 71.48% 313,553 Repairs&Maintenance 23,469,642 12,434,595 8,499,076 3,935,519 46.31% 52.98% 11,035,047 Utilities 9,250,310 4,453,822 4,195,171 258,651 6.17% 48.15% 4,796,488 Other Materials,Supplies, and Services 4,244,740 1,351,525 2,547,617 (1,196,092) -46.95% 31.84% 2,893,215 Net Cost Allocation (20,378,610) (10,028,374) (10,166,490) 138,116 -1.36% 49.21% (10,350,236) Net Operating Requirements 168,216,487 80,465,828 75,401,264 5,064,564 6.72% 47.83% 87,750,659 Gallonage Flow(MG) 68,620.00 34,481.22 34,032.65 448.57 1.32% Gallonage Flow(MGD) 188.00 187.40 184.96 2.44 1.32% Gallonage Flow($'s/MG) $2,451.00 $2,333.61 $2,215.56 $118.05 5.33% Section 2 - Page 4 Operating Budget Review Summary of Revenues For the Six Months Ended December 31, 2019 Revenue Percent Revenue Increase Increase Budget Through Budget Remaining Through (Decrease) (Decrease) Description 2019-20 12/31/19 Realized Budget 12/31/18 $ % Service Fees $298,144,000 $166,912,638 55.98% $131,231,362 $160,999,508 $ 5,913,130 3.67% Permit Fees 9,917,000 6,329,653 63.83% 3,587,347 2,504,500 3,825,153 152.73% Inter District Sewer Use-SAWPA&SBSD 2,654,000 1,351,132 50.91% 1,302,868 1,259,379 91,753 7.29% Intra District Sewer Use-IRWD 6,861,560 584,513 8.52% 6,277,047 468,659 115,854 24.72% Sludge Disposal-IRWD 5,400,000 4,488,298 83.12% 911,702 3,985,272 503,026 12.62% Capital Assessments-IRWD 5,397,000 1,540,161 28.54% 3,856,839 2,128,586 (588,425) -27.64% Capital Facilities Capacity Charges 18,000,000 7,634,042 42.41% 10,365,958 9,232,609 (1,598,567) -17.31% Debt Proceeds - - N/A - 110,302,416 (110,302,416) -100.00% Property Taxes 96,354,000 47,582,816 49.38% 48,771,184 45,534,460 2,048,356 4.50% Interest Earnings 6,602,000 9,162,650 138.79% (2,560,650) 9,404,761 (242,111) -2.57% CIP Reimbursements 5,987,869 661,814 11.05% 5,326,055 18,677 643,137 3443.47% Wastehauler 750,000 502,155 66.95% 247,845 332,756 169,399 50.91% Grant Revenue 464,000 50,651 10.92% 413,349 - 50,651 100.00% CNG Sales 400,000 133,607 33.40% 266,393 174,586 (40,979) -23.47% Rents&Leases 2,260,100 373,785 16.54% 1,886,315 939,408 (565,623) -60.21% Other Revenues 6,413,529 465,378 7.26% 5,948,151 244,816 220,562 90.09% Power Sales 25,000 46,869 187.48% (21,869) 18,442 28,427 154.14% Other Sales 50,000 106,216 212.43% (56,216) 62,675 43,541 69.47% Total Revenues $465,680,058 $247,926,378 53.24% $217,753,680 $347,611,510 $ (99,685,132) -28.68% Section 2- Page 5 FY 2019-20 Mid-Year Financial Report Summary of Collection, Treatment, & Disposal Expenses by Line Item For the Six Months Ended December 31, 2019 Expense Percent Expense Increase Increase Budget Through Budget Remaining Through (Decrease) (Decrease) Description 2019-20 12/31/19 Expensed Budget 12/31/18 $ % Salaries,Wages&Benefits Salaries&Wages $ 74,364,500 $ 37,684,874 50.68% $ 36,679,626 $ 37,026,006 $ 658,868 1.78% Employee Benefits Retirement 11,478,840 5,858,404 51.04% 5,620,436 5,677,823 180,581 3.18% Group Insurances 11,006,200 5,024,730 45.65% 5,981,470 5,323,789 (299,059) -5.62% Tuition&Certification Reimb 98,100 40,172 40.95% 57,928 48,104 (7,932) -16.49% Edu.degrees,Cert.&Lic. 470,300 297,322 63.22% 172,978 247,557 49,765 20.10% Uniform Rental 140,800 53,849 38.25% 86,951 70,354 (16,505) -23.46% Workers'Compensation 780,000 390,002 50.00% 389,998 293,300 96,702 32.97% Unemployment Insurance 3,200 1,125 35.16% 2,075 1,607 (482) -29.99% EMT Supplemental Benefits 92,300 50,768 55.00% 41,532 57,239 (6,471) -11.31% Total Benefits 24,069,740 11,716,372 48.68% 12,353,368 11,719,773 (3,401) -0.03% Salaries,Wages&Benefits 98,434,240 49,401,246 50.19% 49,032,994 48,745,779 655,467 1.34% Matl,Supply.&Services Administrative Expenses Memberships 639,660 392,624 61.38% 247,036 421,247 (28,623) -6.79% Office Exp-Supplies 71,330 36,305 50.90% 35,025 21,594 14,711 68.13% Postage 43,330 14,654 33.82% 28,676 19,553 (4,899) -25.05% Books&Publications 62,340 45,228 72.55% 17,112 10,691 34,537 323.05% Forms 970 - 0.00% 970 1,245 (1,245) -100.00% Small Computer Items 900,300 505,034 56.10% 395,266 331,490 173,544 52.35% Minor Furniture&Fixtures 310,000 103,454 33.37% 206,546 35,882 67,572 188.32% Subtotal 2,027,930 1,097,299 54.11% 930,631 841,702 255,597 30.37% Printing&Publication Repro-In-House 200,790 112,344 55.95% 88,446 104,944 7,400 7.05% Printing-Outside 66,480 16,557 24.91% 49,923 11,673 4,884 41.84% Notices&Ads 62,650 18,231 29.10% 44,419 15,538 2,693 17.33% Photo Processing 50 42 84.00% 8 11 31 281.82% Subtotal 329,970 147,174 44.60% 182,796 132,166 15,008 11.36% Training&Meetings Meetings 170,850 53,454 31.29% 117,396 43,948 9,506 21.63% Training 938,890 259,101 27.60% 679,789 265,533 (6,432) -2.42% Subtotal 1,109,740 312,555 28.16% 797,185 309,481 3,074 0.99% Operating Mat'Is&Supplies Chemical Coagulants 10,364,188 5,268,168 50.83% 5,096,020 2,808,386 2,459,782 87.59% Odor Control 7,415,288 2,834,913 38.23% 4,580,375 3,534,314 (699,401) -19.79% Disinfection 233,000 86,014 36.92% 146,986 98,435 (12,421) -12.62% Chemicals-Misc&Cogen 331,070 173,041 52.27% 158,029 145,371 27,670 19.03% Gasoline,Diesel&Oil 563,460 251,180 44.58% 312,280 298,809 (47,629) -15.94% Tools 469,135 245,492 52.33% 223,643 210,312 35,180 16.73% Safety equipment/tools 624,500 306,576 49.09% 317,924 273,528 33,048 12.08% Solv,Paints&Jan.Supplies 100,000 57,792 57.79% 42,208 49,416 8,376 16.95% Lab Chemicals&Supplies 639,570 331,073 51.76% 308,497 306,804 24,269 7.91% Other Operating Supplies 176,880 62,360 35.26% 114,520 80,103 (17,743) -22.15% Property Tax Fees 91,690 38,200 41.66% 53,490 55,821 (17,621) -31.57% Subtotal 21,008,781 9,654,809 45.96% 11,353,972 7,861,299 1,793,510 22.81% Contractual Services Solids Removal 13,403,700 6,058,861 45.20% 7,344,839 7,777,376 (1,718,515) -22.10% Other Waste Disposal 840,900 394,020 46.86% 446,880 391,309 2,711 0.69% Groundskeeping 193,000 93,768 48.58% 99,232 82,351 11,417 13.86% Janitorial 444,360 239,052 53.80% 205,308 218,280 20,772 9.52% Outside Lab Services 260,000 100,998 38.85% 159,002 60,303 40,695 67.48% Oxygen 306,000 200,689 65.58% 105,311 153,813 46,876 30.48% County Service Fee 512,410 14,580 2.85% 497,830 28,398 (13,818) -48.66% Temporary Services 810,000 151,407 18.69% 658,593 107,643 43,764 40.66% Security Services 1,608,000 803,965 50.00% 804,035 808,682 (4,717) -0.58% Other 3,655,604 964,995 26.40% 2,690,609 651,399 313,596 48.14% Subtotal 22,033,974 9,022,335 40.95% 13,011,639 10,279,554 (1,257,219) -12.23% (Continued) Section 2 - Page 6 Operating Budget Review Summary of Expenses by Line Item For the Six Months Ended December 31, 2019 Expense Percent Expense Increase Increase Budget Through Budget Remaining Through (Decrease) (Decrease) Description 2019-20 12/31/19 Expensed Budget 12/31/18 $ % Continued: Professional Services Legal 1,565,820 677,813 43.29% 888,007 662,411 15,402 2.33% Audit&Accounting 241,110 75,165 31.17% 165,945 76,745 (1,580) -2.06% Engineering 1,361,000 368,296 27.06% 992,704 411,793 (43,497) -10.56% Enviro Scientific Consulting 200,000 30,990 15.50% 169,010 20,000 10,990 54.95% Software Prgm Consulting 376,000 195,419 51.97% 180,581 120,340 75,079 62.39% Advocacy Efforts 179,400 57,800 32.22% 121,600 77,232 (19,432) -25.16% Industrial Hygiene Services 50,000 26,102 52.20% 23,898 19,734 6,368 32.27% Labor Negotiation Services 80,000 30,080 37.60% 49,920 - 30,080 N/A Other 1,532,840 371,130 24.21% 1,161,710 379,119 (7,989) -2.11% Subtotal 5,586,170 1,832,795 32.81% 3,753,375 1,767,374 65,421 3.70% Research&Monitoring Environmental Monitoring 549,600 235,559 42.86% 314,041 152,303 83,256 54.66% Air Quality Monitoring 100,000 75,488 75.49% 24,512 11,232 64,256 572.08% Research 450,000 475,000 105.56% (25,000) 225,000 250,000 111.11% Subtotal 1,099,600 786,047 71.48% 313,553 388,535 397,512 102.31% Repairs&Maintenance Materials&Services 19,774,364 9,612,456 48.61% 10,161,908 6,582,740 3,029,716 46.03% Svc.Mtc.Agreements 3,695,278 2,822,139 76.37% 873,139 1,916,336 905,803 47.27% Subtotal 23,469,642 12,434,595 52.98% 11,035,047 8,499,076 3,935,519 46.31% Utilities Telephone 501,100 268,534 53.59% 232,566 219,704 48,830 22.23% Diesel For Generators 17,000 10,144 59.67% 6,856 9,469 675 7.13% Natural Gas 722,140 372,939 51.64% 349,201 534,515 (161,576) -30.23% Power 7,237,990 3,260,260 45.04% 3,977,730 3,076,765 183,495 5.96% Water 772,080 541,945 70.19% 230,135 354,718 187,227 52.78% Subtotal 9,250,310 4,453,822 48.15% 4,796,488 4,195,171 258,651 6.17% Other Operating Supplies Outside Equip Rental 122,000 42,801 35.08% 79,199 16,024 26,777 167.11% Insurance Premiums 37,800 28,501 75.40% 9,299 27,302 1,199 4.39% Prop&Gen Liab Insurance 1,720,000 859,998 50.00% 860,002 649,650 210,348 32.38% Freight 87,050 53,782 61.78% 33,268 37,998 15,784 41.54% Misc.Operating Expense 249,460 132,570 53.14% 116,890 115,713 16,857 14.57% Regulatory Operating Fees 769,000 143,666 18.68% 625,334 711,994 (568,328) -79.82% Subtotal 2,985,310 1,261,318 42.25% 1,723,992 1,558,681 (297,363) -19.08% General Mgr Contingency &Reappropriations 1,133,800 - 0.00% 1,133,800 - N/A Other Non-Oper Expense 125,630 90,207 71.80% 35,423 988,936 (898,729) -90.88% Total Materials, Supplies&Services 90,160,857 41,092,956 45.58% 49,067,901 36,821,975 4,270,981 11.60% Total Expenditures 188,595,097 90,494,202 47.98% 98,100,895 85,567,754 4,926,448 5.76% Cost Allocation (20,378,610) (10,028,374) 49.21% (10,350,236) (10,166,490) 138,116 -1.36% Net Operating Requirements $ 168,216,487 $ 80,465,828 47.83% $ 87,750,659 $ 75,401,264 $ 5,064,564 6.72% Section 2 - Page 7 FY 2019-20 Mid-Year Financial Report Summary of Collection, Treatment, & Disposal Expenses by Process For the Six Months Ended December 31, 2019 Increase Increase Actual Actual (Decrease) (Decrease) 12/31/19 12/31/18 $ % Process: Preliminary Treatment $ 3,387,645 $ 3,656,914 $ (269,269) -7.36% Primary Treatment 10,676,160 6,256,818 4,419,342 70.63% Secondary Treatment 6,024,345 4,382,522 1,641,823 37.46% Cryogenic Plant(Plant 2) 444,696 325,917 118,779 36.44% Effluent Disposal 674,408 451,190 223,218 49.47% Solids Handling 23,835,292 24,160,130 (324,838) -1.34% Cogeneration 9,057,895 8,247,706 810,189 9.82% Utilities 1,993,360 1,523,956 469,404 30.80% Electrical Distribution 949,665 875,039 74,626 8.53% Miscellaneous Buildings 5,074,797 4,635,917 438,880 9.47% External Location 147,050 164,598 (17,548) -10.66% Nerissa Vessel 122,668 126,417 (3,749) -2.97% Laboratory 8,617,374 9,118,072 (500,698) -5.49% Collections 9,460,473 11,476,068 (2,015,595) -17.56% Net Operating Requirements $ 80,465,828 $ 75,401,264 $ 5,064,564 6.72% Section 2 - Page 8 Operating Budget Review Staffing Trends Full Time Equivalents December 31, 2019 700 - 624 627 635 636 640 650 32 22 22 600 52 49 550 500 450 6/30/16 6/30/17 6/30/18 6/30/19 12/31/19 ■Actual OVacant At December 31, 2019, the total head count was 635 employees, or a full time equivalency of 618. Section 2 - Page 9 FY 2019-20 Mid-Year Financial Report This Page Intentionally Left Blank Section 2 - Page 10 CIP Budget Review Capital Improvement Program By Type and Funding Source For the Six Months Ended December 31, 2019 ❑Collections Facilities: 19.0% ❑Liquid Treatment: 37.5% ■Solids Handling&Digestion: 12.1% ❑Utility Systems: 6.0% ❑Support Facilities: 11.7% / ❑Other: 13.7% Total Capital Improvement Outlays -$51,034,876 ❑Rehabilitation and Replacement: 52% ❑Strategic Initiatives: 26% ❑Additional Capacity: 12% ❑Regulatory: 10% Total Capital Improvement Outlays -$51,034,876 Section 3- Page 1 FY 2019-20 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2019 2019-20 2019-20 2019-20 Cashflow Actual at Projected Budget 12/31/2019 Outlay Collection System Improvement Protects Collections Facilities Taft Branch Improvements 105,676 - 50,000 Newhope- Placentia Trunk Grade Separation Replacement 71,875 684 325,900 Newhope-Placentia Trunk Replacement 22,653,359 6,694,278 15,286,200 Westminster Blvd Force Main Replacement 2,534,429 315,998 2,430,900 Rehabilitation of Western Regional Sewers 9,563,225 949,885 1,990,900 Interstate 405 Widening Project Impacts on OCSD Sewers 107,640 16,456 24,000 Seal Beach Pump Station Replacement 578,588 81,829 761,900 Newport Force Main Rehabilitation - 6,470 6,500 Bay Bridge Pump Station Replacement 1,039,692 80,186 446,500 Newport Beach Pump Station Odor Control Improvements 148,187 36,525 58,600 District 6 Trunk Sewer Relief 465,049 47,008 80,900 Gisler- Red Hill Trunk Improvements - Reach B - 1,997 2,000 Gisler- Red Hill Interceptor Rehabilitation 211,211 16,032 73,200 Main Street Pump Replacement& Force Main Rehabilitation 493,458 30,309 104,400 Small Construction Projects Program - Collections 1,943,710 280,941 1,120,700 Operations & Maintenance Capital Program - Collections 538,207 85,049 563,700 Planning Studies Program - Collections 571,568 98,376 465,400 SARI Rock Stabilizers Removal 4,065,703 919,820 2,728,200 Sunflower and Red-Hill Interceptor Repair 390,189 37,846 217,900 Additional Charges to CIP Closed at 6/30/19 - (8,400) (8,400) Subtotal -Collections Facilities 45,515,705 9,691,289 26,729,400 Revenue Area 14 Newport Force Main Rehabilitation (2.18%) - 144 200 Subtotal - Revenue Area 14 - 144 200 Total Collection System Improvement Projects 45,515,705 9,691,433 26,729,600 (Continued) Section 3 - Page 2 CIP Budget Review Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2019 2019-20 2019-20 2019-20 Cashflow Actual at Projected Budget 12/31/2019 Outlay Treatment& Disposal Protects Headworks Headworks Rehabilitation and Expansion at Plant 1 7,870,442 4,065,812 7,365,900 Headworks Modifications at P2 for GWRS Final Expansion 4,159,614 1,390,057 3,017,300 Subtotal - Headworks 12,030,056 5,455,869 10,383,200 Primary Treatment Primary Clarifier Reliability Improvements at Plant No. 1 480,336 82,170 301,200 Primary Treatment Rehabilitation at Plant 2 9,186,737 4,796,913 10,130,700 Subtotal - Primary Treatment 9,667,073 4,879,083 10,431,900 Secondary Treatment Return Activated Sludge Piping Replacement at Plant 1 2,803,867 117,961 1,953,500 Activated Sludge Aeration Basin Deck Repair at Plant 2 14,671 3,136 3,200 Return Activated Sludge Piping Replacement at Plant 2 3,234,395 128,066 824,500 Subtotal -Secondary Treatment 6,052,933 249,163 2,781,200 Solids Handling & Digestion Sludge Dewatering and Odor Control at Plant 1 6,781,194 3,412,943 4,283,200 Digester Ferric Chloride Piping Replacement at Plant No. 1 68,898 15,857 98,900 Plant No. 2 Digester Facilities Rehabilitation 2,770,904 1,789 - Sludge Dewatering and Odor Control at Plant 2 5,998,220 2,286,191 5,286,200 Interim Food Waste Receiving Facility 641,684 220,784 611,700 TPAD Digester Facility at P2 874,204 225,738 502,900 Subtotal -Solids Handling & Digestion 17,135,104 6,163,302 10,782,900 Ocean Outfall Systems Ocean Outfall System Rehabilitation 26,862,720 8,546,411 18,046,500 Subtotal -Ocean Outfall Systems 26,862,720 8,546,411 18,046,500 Utility Systems Digester Gas Facilities Rehabilitation 3,957,325 723,209 2,729,100 Natural Gas Pipelines Replacement at Plants 1 and 2 283,122 151,977 194,000 Electrical Power Distribution System Improvements 851,397 72,007 318,100 Uninterruptable Power Supply Improvements at Plant 1 270,355 19,822 164,900 Consolidated Demolition and Utility Improvements at P2 3,545,396 2,091,377 4,027,400 Substation Replacement at Plant No. 2 506,550 - 42,000 Subtotal -Utility Systems 9,414,145 3,058,392 7,475,500 (Continued) Section 3- Page 3 FY 2019-20 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2019 2019-20 2019-20 2019-20 Cashflow Actual at Projected Budget 12/31/2019 Outlay Process Related Special Projects Safety Improvements Program 7,701,072 2,932,060 5,918,100 Subtotal - Process Related Special Projects 7,701,072 2,932,060 5,918,100 Information Management Systems Process Control Systems Upgrades 578,902 - - Project Management Information System 1,860,070 119,373 199,400 Information Technology Capital Program 2,749,741 783,981 1,568,000 Geographic Information System 493,346 234,732 312,400 EAM Software and Process Implementation 976,100 145,082 679,900 Process Control Systems Upgrades Study 1,783,597 219,649 1,069,700 Subtotal - Information Management Systems 8,441,756 1,502,817 3,829,400 Strategic& Master Planning Planning Studies Program 4,990,554 787,933 2,426,300 Climate Resiliency Study 222,600 230,249 276,900 Subtotal -Strategic & Master Planning 5,213,154 1,018,182 2,703,200 Water Management Projects GWRS Final Expansion Coordination 182,157 67,817 211,400 Subtotal -Water Management Projects 182,157 67,817 211,400 Research Research Program 2,317,609 694,275 1,307,700 Subtotal - Research 2,317,609 694,275 1,307,700 Support Facilities Small Construction Projects Program 4,086,421 1,670,906 3,607,700 Fleet Services UST Leak Remediation at Plant 1 2,251,879 739,829 739,900 Operations & Maintenance Capital Program 4,522,942 502,458 923,300 18350 Mt. Langley Building Purchase and Improvement 155,080 7,570 7,600 Title 24 Access Compliance and Building Rehab Project 1,075,459 502,852 647,500 Headquarters Complex and Site Security at Plant 1 9,765,435 2,360,718 6,888,500 South Perimeter Security and Utility Improvements at Plant 1 781,427 196,279 365,200 Plant 2 Warehouse Relocation 67,593 - 41,000 Subtotal -Support Facilities 22,706,236 5,980,612 13,220,700 (Continued) Section 3- Page 4 CIP Budget Review Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2019 2019-20 2019-20 2019-20 Cashflow Actual at Projected Budget 12/31/2019 Outlay Others Perimeter Screening at Plant 2 44,087 - - Capital Improvement Program Management Services 118,846 58,529 98,600 Subtotal -Others 162,933 58,529 98,600 Total Treatment and Disposal Projects 127,886,948 40,606,512 87,190,300 Capital Equipment Purchases 2,923,300 736,931 2,923,300 Total Collection, Treatment and Disposal Projects and Capital Equipment Purchases 176,325,953 51,034,876 116,843,200 Less: Savings and Deferrals (23,000,000) - - Net Collection, Treatment and Disposal Projects and Capital Equipment Purchases $153,325,953 $ 51,034,876 $116,843,200 Section 3- Page 5 FY 2019-20 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 2019 Current Total Approved June 30,2019 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2020 Budget Collection System Improvement Projects Collections Facilities Taft Branch Improvements 8,130,000 12,083 50,000 62,083 8,067,917 Newhope-Placentia Trunk Grade Separation Replacement 4,300,000 4,192,559 325,900 4,518,459 (218,459) Newhope-Placentia Trunk Replacement 112,000,000 61,677,495 15,286,200 76,963,695 35,036,305 Yorba Linda Pump Station Abandonment 10,800,000 - - - 10,800,000 Beach Trunk/Knott Interceptor Sewer Relief 21,000,000 - - - 21,000,000 Westminster Blvd Force Main Replacement 54,000,000 6,690,994 2,430,900 9,121,894 44,878,106 Rehabilitation of Western Regional Sewers 202,000,000 15,684,536 1,990,900 17,675,436 184,324,564 Interstate 405 Widening Project Impacts on OCSD Sewers 528,000 94,547 24,000 118,547 409,453 Seal Beach Pump Station Replacement 78,900,000 141,174 761,900 903,074 77,996,926 Los Alamitos Sub-Trunk Extension 66,000,000 - - - 66,000,000 Newport Force Main Rehabilitation 58,367,238 58,305,659 6,500 58,312,159 55,079 Crystal Cove Pumping Station Upgrade and Rehabilitation 17,900,000 - - - 17,900,000 Bay Bridge Pump Station Replacement 64,000,000 1,241,764 446,500 1,688,264 62,311,736 Newport Beach Pump Station Odor Control Improvements 4,066,000 52,522 58,600 111,122 3,954,878 District 6 Trunk Sewer Relief 7,965,000 7,086,802 80,900 7,167,702 797,298 Gisler-Red Hill Trunk Improvements-Reach B 25,213,000 25,017,792 2,000 25,019,792 193,208 MacArthur Pump Station Rehabilitation 9,151,000 - - - 9,151,000 Main Street Pump Station Rehabilitation 40,660,000 - - 40,660,000 Gisler-Red Hill Interceptor Rehabilitation 14,800,000 73,200 73,200 14,726,800 Main Street Pump Replacement&Force Main Rehabilitation 17,160,000 104,400 104,400 17,055,600 MacArthur Force Main Improvement 2,385,000 - - 2,385,000 Edinger Bolsa Chica Trunk Improvements 5,159,000 - - 5,159,000 Edinger Pump Station Upgrade and Rehabilitation 14,100,000 - - 14,100,000 Slater Avenue Pump Station Rehabilitation 25,300,000 - - - 25,300,000 Small Construction Projects Program-Collections 9,258,000 3,606,091 1,120,700 4,726,791 4,531,209 Operations&Maintenance Capital Program-Collections 570,109 33,002 563,700 596,702 (26,593) Planning Studies Program-Collections 4,258,600 3,178,275 465,400 3,643,675 614,925 Research Program-Collections 154,000 46,250 - 46,250 107,750 SARI Rock Stabilizers Removal 6,860,000 1,059,637 2,728,200 3,787,837 3,072,163 Sunflower and Red-Hill Interceptor Repair 5,500,000 20,888 217,900 238,788 5,261,212 Additional Charges to CIP Closed at 6/30/19 - - (8,400) (8,400) 8,400 Subtotal-Collections Facilities 890,484,947 188,142,070 26,729,400 214,871,470 675,613,477 Revenue Area 14: Newport Force Main Rehabilitation(2.18%) 1,300,762 1,299,390 200 1,299,590 1,172 Subtotal-Revenue Area 14 1,300,762 1,299,390 200 1,299,590 1,172 Total Collection System Improvement Projects 891,785,709 189,441,460 26,729,600 216,171,060 675,614,649 (Continued) Section 3- Page 6 CIP Budget Review Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 2019 Current Total Approved June 30,2019 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2020 Budget Treatment&Disposal Projects Headworks Headworks Rehabilitation and Expansion at Plant 1 406,000,000 19,524,945 7,365,900 26,890,845 379,109,155 Headworks Modifications at P2 for GWRS Final Expansion 54,000,000 5,356,267 3,017,300 8,373,567 45,626,433 Subtotal-Headworks 460,000,000 24,881,212 10,383,200 35,264,412 424,735,588 Primary Treatment Primary Clarifiers Replacements and Improvements at P1 106,000,000 521,057 - 521,057 105,478,943 Primary Clarifier Reliability Improvements at Plant No. 1 12,000,000 198,647 301,200 499,847 11,500,153 Primary Treatment Rehabilitation at Plant 2 245,000,000 16,832,705 10,130,700 26,963,405 218,036,595 B/C-Side Primary Clarifiers Rehabilitation at Plant 2 249,560,000 - - - 249,560,000 Subtotal-Primary Treatment 612,560,000 17,552,409 10,431,900 27,984,309 584,575,691 Secondary Treatment Return Activated Sludge Piping Replacement at Plant 1 10,300,000 964,280 1,953,500 2,917,780 7,382,220 Activated Sludge Aeration Basin Deck Repair at Plant 2 1,800,000 1,612,387 3,200 1,615,587 184,413 Return Activated Sludge Piping Replacement at Plant 2 20,000,000 849,751 824,500 1,674,251 18,325,749 Subtotal-Secondary Treatment 32,100,000 3,426,418 2,781,200 6,207,618 25,892,382 Solids Handling&Digestion Digester Rehabilitation at Plant 1 66,000,000 65,609,228 - 65,609,228 390,772 Sludge Dewatering and Odor Control at Plant 1 199,500,000 191,251,029 4,283,200 195,534,229 3,965,771 Digester Ferric Chloride Piping Replacement at Plant No. 1 1,360,000 - 98,900 98,900 1,261,100 Plant No.2 Digester Facilities Rehabilitation 15,500,000 14,717 - 14,717 15,485,283 Sludge Dewatering and Odor Control at Plant 2 90,477,000 80,701,878 5,286,200 85,988,078 4,488,922 Interim Food Waste Receiving Facility 6,300,000 448,580 611,700 1,060,280 5,239,720 TPAD Digester Facility at P2 405,100,000 - 502,900 502,900 404,597,100 Digester P,Q, R,and S Replacement 166,000,000 - - - 166,000,000 Subtotal-Solids Handling&Digestion 950,237,000 338,025,432 10,782,900 348,808,332 601,428,668 Ocean Outfall Systems Ocean Outfall System Rehabilitation 166,000,000 38,447,897 18,046,500 56,494,397 109,505,603 Subtotal-Ocean Outfall Systems 166,000,000 38,447,897 18,046,500 56,494,397 109,505,603 Utility Systems UPS System Upgrades 4,700,000 - - - 4,700,000 Digester Gas Facilities Rehabilitation 156,500,000 4,894,979 2,729,100 7,624,079 148,875,921 Natural Gas Pipelines Replacement at Plants 1 and 2 1,310,000 221,027 194,000 415,027 894,973 Electrical Power Distribution System Improvements 30,000,000 138,428 318,100 456,528 29,543,472 (Continued) Section 3- Page 7 FY 2019-20 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 2019 Current Total Approved June 30,2019 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2020 Budget Utility Systems(continued) Central Generation Rehabilitation at Plant 1 87,000,000 - - - 87,000,000 Uninterruptable Power Supply Improvements at Plant 1 7,000,000 79,108 164,900 244,008 6,755,992 Consolidated Demolition and Utility Improvements at P2 31,000,000 26,399,159 4,027,400 30,426,559 573,441 Central Generation Rehabilitation at Plant 2 114,000,000 - - - 114,000,000 Substation Replacement at Plant No.2 40,261,000 - 42,000 42,000 40,219,000 Subtotal-Utility Systems 471,771,000 31,732,701 7,475,500 39,208,201 432,562,799 Process Related Special Projects Safety Improvements Program 19,000,000 8,118,140 5,918,100 14,036,240 4,963,760 Subtotal-Process Related Special Projects 19,000,000 8,118,140 5,918,100 14,036,240 4,963,760 Information Management Systems Process Control Systems Upgrades 46,000,000 - - - 46,000,000 Project Management Information System 4,000,000 1,149,166 199,400 1,348,566 2,651,434 SCADA System and Network Upgrades 5,000,000 4,970,908 - 4,970,908 29,092 Information Technology Capital Program 10,000,000 1,250,053 1,568,000 2,818,053 7,181,947 Geographic Information System 4,568,000 3,058,209 312,400 3,370,609 1,197,391 EAM Software and Process Implementation 7,500,000 5,219,288 679,900 5,899,188 1,600,812 Process Control Systems Upgrades Study 3,554,000 1,224,489 1,069,700 2,294,189 1,259,811 Subtotal-Information Management Systems 80,622,000 16,872,113 3,829,400 20,701,513 59,920,487 Strategic&Master Planning Planning Studies Program 24,393,400 8,690,620 2,426,300 11,116,920 13,276,480 Climate Resiliency Study 878,000 586,978 276,900 863,878 14,122 Subtotal-Strategic&Master Planning 25,271,400 9,277,598 2,703,200 11,980,798 13,290,602 Water Management Projects GWRS Final Expansion Coordination 1,132,000 232,090 211,400 443,490 688,510 Subtotal-Water Management Projects 1,132,000 232,090 211,400 443,490 688,510 Research Research Program 8,346,000 617,093 1,307,700 1,924,793 6,421,207 Subtotal-Research 8,346,000 617,093 1,307,700 1,924,793 6,421,207 (Continued) Section 3- Page 8 CIP Budget Review Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 2019 Current Total Approved June 30,2019 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2020 Budget Support Facilities Small Construction Projects Program 29,040,000 12,847,554 3,607,700 16,455,254 12,584,746 Fleet Services UST Leak Remediation at Plant 1 14,952,000 374,111 739,900 1,114,011 13,837,989 Operations&Maintenance Capital Program 15,051,891 1,334,458 923,300 2,257,758 12,794,133 18350 Mt. Langley Building Purchase and Improvement 10,200,000 9,907,140 7,600 9,914,740 285,260 Laboratory Rehabilitation at Plant No. 1 15,000,000 - - - 15,000,000 Title 24 Access Compliance and Building Rehab Project 18,400,000 17,054,173 647,500 17,701,673 698,327 Headquarters Complex and Site Security at Plant 1 167,500,000 24,758,304 6,888,500 31,646,804 135,853,196 South Perimeter Security and Utility Improvements at Plant 1 10,500,000 543,599 365,200 908,799 9,591,201 Plant 2 Warehouse Relocation 9,800,000 - 41,000 41,000 9,759,000 Plant 2 Collections Yard Relocation 1,840,000 - - - 1,840,000 Subtotal-Support Facilities 292,283,891 66,819,339 13,220,700 80,040,039 212,243,852 Others Banning Gate Relocation and Grading at Plant 2 2,931,000 - - - 2,931,000 Perimeter Screening at Plant 2 2,800,000 64,040 - 64,040 2,735,960 Capital Improvement Program Management Services 700,000 184,309 98,600 282,909 417,091 Subtotal-Others 6,431,000 248,349 98,600 346,949 6,084,051 Total Treatment and Disposal Projects 3,125,754,291 556,250,791 87,190,300 643,441,091 2,482,313,200 Capital Equipment Purchases 9,727,153 - 2,923,300 2,923,300 6,803,853 Total Collection,Treatment and Disposal Projects and Capital Equipment Purchases $4,027,267,153 $745,692,251 $116,843,200 $862,535,451 $3,164,731,702 Section 3- Page 9 FY 2019-20 Mid-Year Financial Report This Page Intentionally Left Blank Section 3 - Page 10 Capital Assets Schedule & Debt Service Budget Review Capital Assets Schedule For the Six Months Ended December 31, 2019 Capital Facilities Budget Review Balance Year-to-Date Balance 07/01/19 Activity 12/31/19 CONSTRUCTION IN PROGRESS: Treatment Plant $ 447,941,678 $ 41,343,443 $ 489,285,121 Collection System 73,889,956 9,691,433 83,581,389 Subtotal 521,831,634 51,034,876 572,866,510 PROPERTY, PLANT&EQUIPMENT(at cost): Land and Property Rights 41,967,355 - 41,967,355 Collection Lines and Pump Stations 886,790,503 - 886,790,503 Treatment Facilities 2,478,726,934 - 2,478,726,934 Effluent disposal facilities 96,972,016 - 96,972,016 Solids disposal facilities 3,463,236 - 3,463,236 General and administrative facilities 257,168,345 - 257,168,345 Excess purchase price over book value on acquired assets 19,979,000 - 19,979,000 Subtotal 3,785,067,389 - 3,785,067,389 Total Property, Plant&Equipment&CIP $ 4,306,899,023 $ 51,034,876 $ 4,357,933,899 Debt Service Budget Review 2019-20 Year-to-Date Remaining Budget Payments %of Budget Budget Principal Payments by Debt Issue: 2010A BABs - - 0.00% - 2010C BABs - - 0.00% - 2011A COP - - 0.00% - 2012A COP - - 0.00% - 2012B COP 20,915,000 - 0.00% 20,915,000 2014A COP 7,400,000 - 0.00% 7,400,000 2015A COP - - 0.00% - 2016A COP 4,415,000 - 0.00% 4,415,000 2017A COP - - 0.00% - 2018A CANs - - 0.00% - Subtotal Principal Payments 32,730,000 - 0.00% 32,730,000 Interest Expense by Debt Issue: 2010A BABs 2,897,700 2,106,988 72.71% 790,712 2010C BABs 6,523,800 4,743,687 72.71% 1,780,113 2011A COP 3,348,400 1,674,175 50.00% 1,674,225 2012A COP 3,735,900 1,867,950 50.00% 1,867,950 2012B COP 2,191,400 1,095,700 50.00% 1,095,700 2014A COP 3,566,500 1,783,250 50.00% 1,783,250 2015A COP 6,375,500 3,187,750 50.00% 3,187,750 2016A COP 6,977,300 3,488,650 50.00% 3,488,650 2017A COP 3,318,500 1,659,250 50.00% 1,659,250 2018A CANs 5,110,000 2,555,000 50.00% 2,555,000 Subtotal Interest Expense 44,045,000 24,162,400 54.86% 8,991,950 Total Debt Service $ 76,775,000 $ 24,162,400 31.47% $ 41,721,950 Section 4 - Page 1 FY 2019-20 Mid-Year Financial Report This Page Intentionally Left Blank Section 4 - Page 2 Self Insurance Budget Review General Liability and Property Fund Budget Review For the Six Months Ended December 31, 2019 Percent Actual of Budget Remaining Actual 2019-20 Through Through 2019-20 Through Increase Budget 12/31/19 12/31/19 Budget 12/31/18 (Decrease) Revenues: In-Lieu Premiums $ 1,720,000 $ 859,998 50.00% $ 860,002 $ 649,650 $ 210,348 Miscellaneous Other Revenue 10,000 - 0.00% - - - Service Department Allocations 20,000 (1,548) -7.74% 21,548 (1,548) - Total Revenues 1,750,000 858,450 49.05% 881,550 648,102 210,348 Expenses: Benefits/Claims 360,000 53,188 14.77% 306,812 - 53,188 Legal Services 40,000 - 0.00% 40,000 - - Professional Services 10,000 - 0.00% 10,000 - - Subtotal 410,000 53,188 12.97% 356,812 - 53,188 Policy Premium Expense 1,340,000 708,883 52.90% 631,117 638,449 70,434 Total Expenses 1,750,000 762,071 43.55% 987,929 638,449 123,622 Excess Revenue(Expense) - 96,379 $ (106,379) 9,653 86,726 Beginning Reserves 55,000,000 55,389,842 55,367,246 22,596 Ending Reserves $ 55,000,000 $ 55,486,221 $ 55,376,899 $ 109,322 Section 5 - Page 1 FY 2019-20 Mid-Year Financial Report Workers' Compensation Fund Budget Review For the Six Months Ended December 31, 2019 Percent Actual of Budget Remaining Actual 2019-20 Through Through 2019-20 Through Increase Budget 12/31/19 12/31/19 Budget 12/31/18 (Decrease) Revenues: In-Lieu Premiums $ 780,000 $ 390,000 50.00% $ 390,000 $ 293,300 $ 96,700 Service Department Allocations - 54,348 N/A (54,348) 54,348 - Total Revenues 780,000 444,348 56.97% 335,652 347,648 96,700 Expenses: Benefits/Claims 430,000 232,300 54.02% 197,700 201,334 30,966 Legal Services 80,000 58,078 72.60% 21,922 26,811 31,267 Professional Services 60,000 19,028 31.71% 40,972 31,627 (12,599) Subtotal 570,000 309,406 54.28% 260,594 259,772 49,634 Policy Premium Expense 210,000 108,881 51.85% 101,119 109,664 (783) Total Expenses 780,000 418,287 53.63% 361,713 369,436 48,851 Excess Revenue(Expense) - 26,061 $ (26,061) (21,788) 47,849 Beginning Reserves 2,000,000 2,036,708 2,085,542 (48,834) Ending Reserves $ 2,000,000 $ 2,062,769 $ 2,063,754 $ (985) Section 5 - Page 2 4oJNZy SANQ411 � � O a _ � 9 ti FAT/Np E ENV\P�a January 31, 2020 STAFF REPORT Mid-Year Treasurer's Report For the Period Ended December 31, 2019 SUMMARY Section 17.0 of the Orange County Sanitation District's (OCSD) Investment Policy includes quarterly reporting requirements for OCSD's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by Chandler Asset Management, OCSD's external money manager. The ongoing monitoring of OCSD's investment program by staff and Callan Associates, OCSD's independent investment advisor, indicates that OCSD's investments are in compliance with OCSD'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 OCSD to meet budgeted expenditures for the next six months. OCSD'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 OCSD's portfolios, as of December 31, 2019. The Liquid Operating Monies portfolio, with an average maturity of 77 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 as of December 31, 2019. OCSD ♦ P.O.Box 8127 ♦ Fountain Valley,CA 92728-8127 ♦ (714)962-2411 Quarterly Treasurer's Report For the Period Ended December 31, 2019 Page 2 of 4 Portfolio Performance Summary As of December 31,2019 Liquid Operating Monies(%) Long-Term Operating Monies(%) Total Rate of Total Rate of Return Benchmark0) Return Benchmark0) 3 Months 0.50 0.46 0.49 0.44 6 Months 1.09 1.02 1.37 1.27 9 Months 1.79 1.67 3.09 3.14 12 Months 2.43 2.28 4.65 4.61 Annualized Since inception 30 Nov 2014 1.17 1.06 1.84 1.79 Market Value $175.6 M $579.9 M Average Quality 11AA,171'Aaa11 "AA"P'Aa111 Current Yield(%) 1.85 2.25 Estimated Yield to Maturity(%) 1.68 1.72 Quarterly Deposits(Withdrawals) $107.0 M $29.0 M Estimated Annual Income $3.2 M $13.3 M (1) Benchmarks: ■ Liquid Operating Portfolio: ICE BAML 3-Month Treasury Bill Index ■ Long-Term Operating Portfolio: ICE BAML Corp/Govt. 1-5 Year Bond Index Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the attached bar chart. Liquid Long-Term Quarter Operating Operating Ending Monies($M) Monies($M) 31 Mar 19 108.5 506.2 30 Jun 19 164.5 558.1 30 Sep 19 68.2 548.1 31 Dec 19 175.6 579.9 Quarterly Treasurer's Report For the Period Ended December 31, 2019 Page 3 of 4 The Sanitation District's Investment Account Balances as of December 31, 2019 Book Balances Estimated Investment Accounts December 31, 2019 Yield (%) State of California LAIF $54,397,621 2.04 Banc of California Checking Account 3,000,000 0.55 Banc of California Overnight Sweep Account 5,174,254 0.20 Banc of California W/C Checking 90,040 0.55 Union Bank Mount Langley Account 120,048 0.75 Union Bank Bandilier Account 594,502 0.75 Chandler/U.S. Bank—Short-term Portfolio 175,646,417 1.68 Chandler/U.S. Bank—Long-term Portfolio 579,913,998 1.72 Petty Cash 3,000 N/A BNY Mellon OCIP Reserve 3,670,638 0.00 TOTAL $822,610,518 1.71 Debt Service Reserves w/Trustees 1 578 1.51 The Sanitation District's Cost of Funds on Debt Issues as of December 31, 2019 Annual Cost of Funds Outstanding Interest Issue Description COP Balance Rate(%) 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 46,475,000 1.50 2014A Fixed 71,330,000 2.34 2015A Fixed 127,510,000 3.30 2016A Fixed 145,880,000 3.02 2017A Fixed 66,370,000 2.55 2018A Fixed 102,200,000 2.02 TOTAL $972 780 000 Weighted Avg. Cost of Funds 3.05 Quarterly Treasurer's Report For the Period Ended December 31, 2019 Page 4 of 4 ATTACHMENTS 1. Chandler Quarterly Report 2. Summary of Performance Data and Portfolio Statistics — Liquid Operating Monies 3. Summary of Performance Data and Portfolio Statistics — Long Term Operating Monies 4. Investment Transactions and Balances in LAIF 5. Asset Summary by Asset Type — Liquid Operating Portfolio 6. Asset Summary by Asset Type — Long Term Portfolio 7. Asset Summary by Asset Type — Owner Controlled Insurance Program Escrow Account 8. Investment Listing (Yield Analysis Report) 9. Asset Detail — Consolidated 10. Custody Transaction History — Consolidated 11. Callan Quarterly Review 12. Chandler Quarterly Review 13. Rating Agency Comparisons CHANDLER CRIt � ASSET MANAGEMENT December 31, 2019 Mr. Lorenzo Tyner Assistant General Manager Director of Finance and Administrative Services Orange County Sanitation District 10844 Ellis Avenue Fountain Valley CA 92708-7018 Dear Lorenzo, Bond Market Recap We expect US economic growth to moderate in 2020 toward trend growth of about 1.8% compared to 2.3% in 2019. We believe the impact of monetary policy on economic growth is somewhat lagged, and the more accommodative monetary policy stance of the Federal Reserve and other global central banks throughout 2019 should provide a tailwind for the economy in 2020. Though slow global growth continues to create a headwind for the US economy, recent domestic economic data has been mostly in line with expectations and consistent with modest growth. Most notably, the US labor market remains firm which should continue to support consumer spending trends as well as the housing market. The Federal Open Market Committee (FOMC) kept the target fed funds rate unchanged in December in a range of 1.50%- 1.75%.The vote to keep policy unchanged was unanimous and the Fed's quarterly update on their Summary of Economic Projections was little changed from the September 2019 forecast. Notably the Fed's forecast calls for no change to the fed funds rate in 2020. We believe the hurdle rate to tighten policy remains high, as market-based measures of inflation are still too low. Conversely, if market-based inflation metrics fail to improve, and/or the domestic or global economy experiences an exogenous shock, we believe the Fed has left the door open for additional policy accommodation. The Treasury yield curve steepened slightly in December. The 2-year Treasury yield decreased about four basis points to 1.57%, the 5-year Treasury yield increased almost seven basis points to 1.69%, and the 10-year Treasury yield increased about 14 basis points to 1.92%.We believe the increase in longer-term yields were driven by more favorable developments with regard to global trade and Brexit. Treasury yields declined meaningfully in 2019. At year-end, the 3-month T-bill yield was down 81 basis points, the 2-Year Treasury yield was down 92 basis points, and the 10-Year Treasury yield was down 77 basis points. We believe the year- over-year decline in long-term Treasury yields largely reflects a decline in global economic growth and inflation expectations,while the decline in shorter-term rates is in line with the Fed's three 25 basis point rate cuts in 2019. Notably, the shape of the yield curve has normalized to some extent over the past few months and is now upward sloping, which we believe reflects increased optimism about the domestic economic outlook. 1 CHANDLER CiNk � ASSET MANAGEMENT Consumer Prices The Consumer Price Index(CPI)was up 2.1%year-over-year in November, up from 1.8%in October.Core CPI (CPI less food and energy)was up 2.3%year-over-year in November, unchanged from October.The Personal Consumption Expenditures (PCE) index was up 1.5% year-over-year in November versus up 1.4% year-over-year in October. Core PCE, which is the Fed's primary inflation gauge, was up 1.6%year-over-year in November versus 1.7%year-over-year in October. Core PCE softened and remains below the Fed's 2.0% inflation target. Retail Sales Retail sales increased 0.2% in November, following growth of 0.4% in October. Excluding auto and gas, retail sales were flat in November, below expectations of 0.4%. On a year-over-year basis, retail sales increased 3.3% in November,versus 3.2% in October. Labor Market U.S. nonfarm payrolls rose by 145,000 in December, below expectations of 160,000. Payrolls for October and November were revised down by a total of 14,000. On a trailing 3-month and 6-month basis, payrolls increased an average of about 184,000 and 189,000 per month, respectively.The unemployment rate was unchanged at 3.5%and the participation rate held steady at 63.2%.A broader measure of unemployment called the U-6,which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 6.7% in December from 6.9% in November. Wages edged up 0.1% in December, below expectations of 0.3%, but the November increase in wages was revised up slightly to 0.3%from 0.2%.The average workweek was unchanged at 34.3 hours. On a year-over-year basis, wages were up 2.9% in December, versus up 3.1% in November. Housing Starts Housing starts increased 3.2% in November to a 1.365 million annualized rate and starts in the prior month were revised higher. Permits were also stronger than expected in November, up 1.4%. Multi-family starts rose 4.9%month-over-month in November to an annualized rate of 427,000. Single-family starts rose 2.4% in November to an annualized rate of 938,000.The trends suggest that low mortgage rates and a strong labor market continue to drive housing activity. 2 CHANDLER CiNk ASSET MANAGEMENT TREASURY YIELDS 12/31/2019 9/30/2019 CHANGE 3 Month 1.54 1.81 (0.27) 2 Year 1.57 1.62 (0.05) 3 Year 1.61 1.56 0.05 5 Year 1.69 1.54 0.15 7 Year 1.83 1.61 0.22 10 Year 1.92 1.67 0.25 30 Year 2.39 2.11 0.28 Economic Data Remains Consistent with Trend Growth ECONOMIC INDICATOR Current Release Prior Release One Year Ago Trade Balance (43.10)$Bln NOV 19 (46.90)$Bln OCT 19 (53.60)$Bln NOV 18 Gross Domestic Product 2.10%SEP 19 2.00%JUN 19 2.90%5EP 18 Unemployment Rate 3.50%DEC 19 3.50%NOV 19 3.90%DEC 18 Prime Rate 4.75%DEC 19 4.75%NOV 19 5.50%DEC 18 Commodity Research Bureau Index 185.79 DEC 19 176.65 NOV 19 169.80 DEC 18 Oil(West Texas Int.) $61.06 DEC 19 $55.17 NOV 19 $45.41 DEC 18 Consumer Price Index(y/o/y) 2.10%NOV 19 1.80%OCT 19 2.20%NOV 18 Producer Price Index(y/o/y) 1.10%NOV 19 (0,20%)OCT 19 2.00%NOV 18 Dollar/Euro 1.12 DEC 19 1.10 NOV 19 1.15 DEC 18 Source:Bloomberg 3 CHANDLER ASSET MANAGEMENT Performance Attribution Long-Term Portfolio The portfolio outperformed the benchmark during the quarter, generating a return of 0.49% compared to the 0.44% return of the ICE Bank of America Merrill Lynch 1-5 Year US Corporate and Government AAA-A Index. The overall asset allocation of the portfolio led to the modest outperformance of the portfolio during the quarter. The out of benchmark exposure to the Asset Backed sector, currently 7.8% of the overall allocation of the portfolio, as well as the overweight exposure to the Corporate sector were both additive to the results during the quarter. From a term structure perspective, the overweight to the front and back end of the maturity distribution,at the expense of the middle portion of the maturity distribution, led to the positive performance differentiation during the quarter. Several securities were purchased across the Treasury,Certificate of Deposit,Commercial Paper,and Asset Backed sectors of the market to keep the portfolio structure in-line with Chandler targets. The purchased securities ranged in maturity from January 2020 to November 2024. One security was sold and several matured to help facilitate the new holdings in the portfolio and manage the varied cash flows in the portfolio during the reporting period that totaled a net positive$29 million. The sector allocation was relatively stable. Some of the larger changes include the 4.4% increase in the US Treasury allocation,to 34.8%of the portfolio, partially offset by the 2.8%decline in the Agency allocation,to 22.8%of the portfolio. The duration of the portfolio contracted moderately, ending the quarter at 2.41 compared to 2.46 as of September 30, 2019. The Chandler team will be focusing on keeping the duration of the portfolio in a tight band relative to the benchmark in the coming quarter. Liquid Portfolio The Liquidity Portfolio outperformed the benchmark, generating a return of 0.50% compared to the 0.46% return of the ICE Bank of America Merrill Lynch 3 Month Treasury Bill Index. Multiple securities were purchased across the Treasury, Agency, Certificate of Deposit, Commercial Paper and Corporate sectors of the market to keep the portfolio fully invested in the liquidity strategy. The purchased securities ranged in maturity from January 2020 to August 2020. One security was called and several matured; a net$107mm was contributed to the portfolio during the quarter. The sector allocation evolved with the large contribution into the strategy in late December. Due to the timing of the contribution most of the proceeds were allocated to the Treasury sector, with the Chandler team having several maturities in January 2020 to facilitate additional holdings in non-Treasury securities when the market is more liquid and not under year-end constraints. The duration of the portfolio contracted moderately, currently 0.21 compared to 0.30 at the end of the prior quarter. The Chandler team continues to utilize the Treasury and Agency sectors to immunize the large forecasted liquidity needs and overlay spread product (i.e. Commercial Paper, Certificates of Deposit, and Corporates) to enhance the total return strategy of the portfolio. 4 CHANDLER CiNk � ASSET MANAGEMENT Economic Outlook Risk assets closed out the year in strong form with equity prices grinding higher over the quarter, investment grade credit spreads moving lower, and the US Treasury yield curve steepening moderately. Although geopolitical risks continue to influence markets and remain a constant element for investors to monitor, the downside risks to the global economic backdrop moderated in Q4. Most significantly for investor sentiment the US/China trade impasse made incremental progress with the Phase 1 deal expected to be signed in mid-January. Although many long-term challenging issues remain to be resolved specific to US/China trade, the modest progress thus far, including some concessions by China on intellectual property reform, helped to provide a positive catalyst for asset price performance. The protests in Hong Kong continue and remain in the news, however the lack of a draconian response by China has allowed the geopolitical risk in the region to remain contained. In the United Kingdom, Boris Johnson was able to remain Prime Minister with a strong performance in the December election, providing a mandate for the country to move forward with Brexit. Policymakers were also active domestically,with the Federal Reserve stepping in to address some of the acute liquidity pressures facing money markets at the end of Q3. Notably the Federal Reserve began to provide ample overnight and term liquidity via the repo market, in addition to beginning to purchase T-Bills at regular intervals to increase the size of the Fed's balance sheet and add liquidity into the banking system. Although the Federal Reserve's balance sheet is again expanding, the composition of the purchased assets is all in short maturity notes, distinguishing the policy move from earlier forms of quantitative easing where longer maturity fixed income assets were added to the Fed's balance sheet. Taking proactive steps to ensure ample liquidity in the money markets is consistent with Chandler's view policy makers will continue to be biased to support economic growth, particularly with inflation concerns benign. In late October the Federal Reserve reduced the Fed Funds rate for the 3rd time in 2019 to a target range of 1.50% to 1.75%to further support the economic expansion. The Chandler team holds the view the front-end of the Treasury curve will continue to trade in a tight range centered around the Federal Reserve's Federal Funds rate target of 1.50%to 1.75% and we are not forecasting additional easing of policy over an intermediate time horizon. Observed inflation metrics remain low, with the PCE Core inflation most recently coming in at 1.60% y/y. Market based measures of inflation also remain very low, with Ten Year Treasury Inflation Breakeven Spreads closing out the year at 1.79%, well below the market's consensus of a "normal" range of 2.30% to 2.60%. The low levels of inflation remain a conundrum for policy makers as the unemployment rate remains low at 3.5% and the three-month moving average of non-farm payrolls is strong at 184k. The US consumer remains on solid footing and will be enough to support trend GDP growth in 2020 despite the lingering headwinds in Chandler's view. Until both observed and market-based measures of inflation start to move higher, the Federal Reserve will remain biased to keep policy accommodative, which should also continue to support the performance of risk assets. The Treasury yield curve moderately steepened during Q4, with 10y Treasury yields moving higher by 25 basis points to close out the year at 1.92%. Assuming the economic expansion continues, longer term Treasury yields should continue to drift upwards. Given the low level of rates currently, and the Chandler team's view negative interest rates in Europe and Japan are largely a policy failure, the Federal Reserve will likely look to embrace alternative tools away from continuing to drop interest rates to support continued growth and higher inflation. The Chandler team is also expecting additional communication from the Federal Reserve on their strategic policy review,with the 2% inflation target a likely area of focus. 5 CHANDLER CRIt � ASSET MANAGEMENT Strategy Strategy highlights for the Long-Term Portfolio in coming months: • Continue to focus on adding securities with attractive relative value consistent with the overall investment objectives of safety, liquidity and return. o Extend the term structure of the banking sub sector within the Corporate allocation via swapping out of some of the shorter maturity holdings in the portfolio. o Utilize the new issue Corporate calendar where appropriate to further diversify the underlying holdings in the allocation via maturity, rating, and sector. • Utilize the new issue calendar to maintain the overall Asset Backed allocation in a range of 7-10% of the overall portfolio allocation. • Remain patient in adding Agency and Supranational exposure where spreads are currently at the tight end of the recent range. • Continue to maintain bias towards a barbell term structure within the overall term structure of the portfolio. 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 for unexpected cash flow needs. 6 CHANDLER (J, ASSET MANAGEMENT Compliance Issues Orange County Sanitation District Long Term Assets managed by Chandler Asset Management are in full compliance with state law and 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 Supranational "AA"rated or better by a NRSRO; 30%maximum; 5 years max maturity; USD denominated senior unsecured unsubordinated Complies 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 by corporations Complies 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%max issuer; 5 years max maturity Complies Asset Backed/CMOs/Mortgage-backed A rated or better by a NRSRO; "A"or higher issuer rating by a NRSRO; 20%maximum; 5%max issuer(excluding govt Complies* agency/mbs);5 years max maturity Negotiable CDs "A"rated or better long term debt by a NRSRO;or"A-1"/highest shortterm rating by a NRSRO; 30%maximum;5%max issuer;5 Complies years max maturity Certificates of Deposit 5%max issuer; 5 years max maturity;Secured/collateralized Complies Banker's Acceptances A-1 rated or equivalent shortterm rating by a NRSRO; 40%maximum;5%max issuer;180 days max maturity Complies A-1 rated or equivalent short term rating by a NRSRO; "A"or better longterm debt issuer by a NRSRO; Issued by a domestic Commercial Paper corporation organized and operating in the US with AUM>$500million; 25%maximum; 5%maxissuer; 270 days max maturity Complies Mutual Fund&Money Market Mutual Highest rating or"AAA"rated by two NRSROs;SEC registered adviser with AUM>$500 million and experience greater than 5 years; Fund 10%per one Mutual Fund; 20%max per issuer on Money Market Mutual Funds; 20%max of the District's surplus money Complies Repurchase Agreements 102%collateralization Complies Reverse Repurchase Agreements 5%maximum,90 days max maturity Complies LAI F Not used by i nvestment advi ser Complies OCI P Not us ed by i nvestment a dvi s er Complies Avg Duration Not to exceed 60 months - (80%to 120%of the benchmark) Complies Max Per Issuer 5%of portfolio(except Supra nationals,U.S.Government,Agencies,Mutual Fund) Complies Maximum Maturity 5 years maximum maturity Complies* *The portfolio has twenty(20)securities with maturities greater than 5 years including four(4)CMOs and sixteen(16)MBS.All securities were inherited from the previous manager and complied at time of purchase. Orange County Sanitation District Liquid Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy Category Standard Comment Treasury Issues 1 year max maturity; Minimum allocation of 10% Complies U.S.Agencies 20%max issuer; 1 year max maturity Complies Supranational "AA"rated or better by a NRSRO;30%maximum; 1 year max maturity; USD denominated senior unsecured unsubordinated Complies obligations issued or unconditionally guaranteed by IBRD,IFC,or IADB "A"rated or better long term debt by a NRSRO; 30%maximum;5%max issuer; 1 year max maturity; Issued by corporations Corporate(MTNs) Complies 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; 5%max issuer; 1 year max maturity Complies Negotiable CDs "A"rated or better long term debt by a NRSRO;or"A-1"/highest short term rating by a NRSRO;30%maxi mum;5%max issuer;1 Complies year max maturity Certificates of Deposit 5%max issuer;1 year max maturity;Secured/collateralized Complies Banker's Acceptances A-1 rated or equivalent short term rating by a NRSRO;40%maximum; 5%max issuer;180 days max maturity Complies A-1 rated or equivalent short term rating by a NRSRO; "A"or better long term debt issuer by a NRSRO; Issued by a domestic Commercial Paper Complies corporation organized and operating in the US with AUM>$500million; 25%maximum; 5%max issuer; 270 days max maturity Mutual Fund&Money Market Mutual Highest rating or"AAA"rated by two NRSROs;SEC registered adviser with AUM>$500 million and experience greater than 5 Fund years;10%per one Mutual Fund; 20%max per issuer on Money Market Mutual Funds; 20%max of the District's surplus money Complies Repurchase Agreements 102%col lateral ization Complies Reverse Repurchase Agreements 5%maximum,90 days max maturity Complies LAI F Not used by i nvestment advi ser Complies OCI P Not us ed by i nvestment a dvi s er Complies Prohibited Municipal Securities Complies Prohibited Mortgage Securities Complies Avg Duration Not to exceed 180 days; Max duration of 1/2 year Complies Max Per Issuer 5%of portfolio(except Supranationals,U.S.Government,Agencies,Mutual Fund) Complies Maximum Maturity 1 year maximum maturity Complies 7 CHANDLER ASSET MANAGEMENT OCSD Lehman Exposure Assets managed by Ch on dler Asset Management are in full compliance with state law and with the investment policy Category Standard Comment Treasury Issues 5 years maximum maturity Complies Supranational "AA"or better by 1 of 3 NRSROs; 30%maximum; 5%max; 5 years maturity; Includes only: IADB,IBRD,and IFC per CGC Complies U.S.Agencies 20%max issuer; 5 years maximum maturity Complies U.S.Corporate(MTNs) "A"or better longterm rating by 1 of 3 NRSROs; 30%maximum;5%max issuer; 5 years max maturity Complies* Municipal Securities "A"or higher by 1 of 3 NRSROS;10%maximum; 5%max issuer; 5 years maximum maturity Complies "AA"or better by 1 of 3 NRSROs; "A"or higher issuer rating by 1 of 3 NRSROs; 20%maximum; 5%max issuer(excluding Asset Backed/CMOs/Mortgage-backed Complies M65/gout agency);5 years max maturity "A"or better on its longterm debt by 1 of 3 NRSROs; "A1/P1"or highest short term ratings by 1 of 3 NRSROs; 30%maxi mum; Negotiable CDs Complies 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 days max maturity Complies Commercial Paper A-1,or equivalent by 1 of 3 NRSROS; "A"or better by 1 of 3 NRSROs,if long term debt issued; 25%maximum; 5%max issuer; Complies 270 days max maturity Money Market Fund Highest rating by 2 of 3 NRSROs; 20%maximum;10%max issuer Complies Repurchase Agreements 102%call ateralization Complies Reverse Repurchase Agreements 5%maximum,90 days max maturity Complies LAI F Not used by investment adviser Complies Avg Duration Not to exceed 60 months - (80%to 120%of the benchmark) Complies Maximum Maturity 5 years maximum maturity Complies *Account holds$2 million face value(cusip 525ESCOY6)and$600,000 face value(cusip 525ESCIB7)of defaulted Lehman Bros Holdings that were purchased by the previous manager. Complied at time of purchase. 8 CHANDLER (J, ASSET MANAGEMENT Defaulted Bonds OCSD Lehman Exposure-Account#10284 CUSIP Security Description Par Value/Units Purch se Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity B:ok Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration Common Stock - SLHOPNTA4 Lehman Brothe rs,Inc Open Position Long Exposure 60,641.49 11/21/2014 57,842.64 0.42 25,621.03 43.99% NR/NR 0.00 0.000% Due12/31/2019 0.00% 57,842.64 0.00% 0.00 (32,221.61) NR 0.00 57,842.64 25,621.03 43.99% NR/NR 0.00 TOTAL Common Stock 60,641.49 0.00% 57,842.64 0.00% 0.00 (32,221.61) NR 0.00 US Corporate 525ESCIB7 Lehman Brothers Note-Defaulted 600,000.00 09/19/2008 319,005.35 1.27 7,620.00 13.08% NR/NR 0.07 0.000% Due01/24/2020 0.00% 319,005.35 0.00% 0.00 (311,38535) NR 0.00 525ESCOY6 Lehman Brothers Note-Defaulted 2,000,000.00 09/18/2008 1,027,939.99 1.25 25,000.00 42.93% NR/NR 29.83 0.000% Due30/22/2049 0.00% 1,027,939.99 0.00% 0.00 (1,002,939.99) NR 0.00 1,346,945.34 32,620.00 56.01% NR/NR 22.88 TOTAL US Corporate 2,600,000.00 0.00% 1,346,945.34 0.00% 0.00(1,314,325.34) NR 0.00 1,404,787.98 58,241.03 100.00% NR/NR 12.81 TOTAL PORTFOLIO 2,660,641.49 0.00% 1,404,787.98 0.00% 0.00(1,346,546.95) NR 0.00 TOTAL MARKET VALUE PLUS ACCRUALS 58,241.03 9 CHANDLER ( , ASSET MANAGEMENT Ratings Orange County Sanitation District Long Term December 31,2019 vs.September 30,2019 80.0°% 70.0°% 60.0°% 50.0% 40.0% 30.0% 20.0°% 10.0% 0.0% AAA AA A <A NR ■12/31/2019 ■9/30/2019 12/31/19 9.0% 68.2% 16.0% 0.5% 6.3% 09/30/19 &9% 66.5% 16.9% 0.5% 7.2% Source 5$PRoungs Orange County Sanitation District Liquid December 31,2019 vs.September 30,2019 70.0°% 60.0% 50.0% 40.0% 30.0°% 20.0% 10.0% 0.0% • AAA AA A <A NR 0 12/31/2019 ■9/30/2019 12/31/19 36.1% 57.3% 6.6% 0.0% 0.0% 09/30/19 24.0% 59.0% 17.0% 0.0% 0.0% Source:S&P Roungs 10 CHANDLER ASSET MANAGEMENT OCSD Investment Program Quarter End Portfolio Value $700,000,000 ■ Liquid Operating Monies $600,000,000 ■ Long-Term Operating Monies $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 s� OP � ✓4 sP O� � ✓4 s� OP � ✓4 sP O� � ✓� s� OP � ✓4 sP O� � ✓� s� O� 61 c� 6� c1 dr1 71, 6I c� a 1 �1 6� c1 d 1 4;j9 6I9 c l9 a' a' Q Q Q A S S S S 6 6 6 6 > > > cP 8 8 9 HISTORICAL YIELD CURVE 4.00% 3.00% --------------------------------------------------- -a 0 0 2.00% ---------- -DEC 2019 1.00% --------------------------------- NOV 2019 ----------- -o DEC2018 0.00% 6SO Lr 11 Orange County Sanitation District Liquid Portfolio Summary Account#10282 As of December 31, 2019 C11% PORTFOLIO CHARACTERISTICS ACCOUNT SUMMARY TOP ISSUERS Average Modified Duration 0.21 Beg.Values End Values Government of United States 78.3% as of 11/30/19 as of 12/31/19 Federal Home Loan Bank 6.1% Average Coupon 1.85% Market Value 78,173,288 174,966,288 Accrued Interest 294268 650897 First American Govt Obligation 3.0% , , Average Purchase YTM 1.82% HSBC Holdings PLC 1.4% Total Market Value 78,467,557 175,617,185 Average Market YTM 1.68% Income Earned 127,215 177,113 Toronto Dominion Holdings 1.2% Average S&P/Moody Rating AA+/Aaa Cont/WD 97,000,000 Bank of New York 1.1% Average Final Maturity 0.21 yrs Par 78,236,899 174,935,168 General Dynamics Corp 1.1% Book Value 78,126,002 174,946,486 Royal Bank of Canada 1.1% Average Life 0.18 yrs Cost Value 77,932,983 174,689,177 Total 93.5% SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY(S&P) US Treasury 78.3% 80% 72.3% AA(57.3%) us Corp, 6.6% 60% Agency' 6.1% 40% Money Mkt Fd' 3.0% Comm Paperl 2.5% 20% 16.2% A(6.6%) 11.5% Neg CD 2.3% 1 1(: e� Foreign Corp 11.1% 0-.25 .25-.5 .5-1 1-1.5 1.5.2 2.2.5 2.5-3 3a maturity(yrs) AAA(36.1%) PERFORMANCE REVIEW Annualized TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS SYRS 10YRS 11/30/2014 Orange County Sanitation District Liquid 0.14% 0.50% 2.43% 2.43% 2.17% 1.74% 1.18% N/A 1.17% ICE BAML 3-Month US Treasury Bill Index 0.14% 0.46% 2.28% 2.28% 2.08% 1.67% 1.07% N/A 1.06% Chandler Asset Manaeement-CONFIDENTIAL Paee 1 Execution Time:1/2/2020 9:01:13 PM Orange County Sanitation District Long Term Portfolio Summary Account#10268 As of December 31, 2019 C11% PORTFOLIO CHARACTERISTICS ACCOUNT SUMMARY TOP ISSUERS Average Modified Duration 2.41 Beg.Values End Values Government of United States 34.8% as of 11/30/19 as of 12/31/19 Federal Home Loan Bank 9.5% Average Coupon 2.25% Market Value 537,897,693 577,252,333 Accrued Interest 2860714 2642857 Federal National Mortgage Assoc 8.6% , , , , Average Purchase YTM 2.30% Federal Home Loan Mortgage Corp 4.1% Total Market Value 540,758,407 579,89S,190 Average Market YTM 1.72% Income Earned 1,039,969 1,044,561 Inter-American Dev Bank 3.0% Average S&P/Moody Rating AA/Aa1 Cont/WD 38,025,168 Honda ABS 2.6% Average Final Maturity 2.74 yrs par 529,467,318 568,552,826 John Deere ABS 2.0% Book Value 529,262,027 568,549,613 Intl Bank Recon and Development 1.8% Average Life 2.52 yrs Cost Value 528,446,198 567,620,155 Total 66.4% SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY(S&P) US Treasury 34.8% 25% 23.6% 2 2.6 Agency 22.8% 20.6 US Corp 20.7% 20% 18.4% AA(68.2%) ABS_ 7.8% Supras- 5.8% 15% Foreign Corp■ 3.4% B(0.0%) Comm paper, 1.7% 10% BBB(0.5%) NegCD 1.4% 59'0 5.7% 5.1% ---- NR(6.3%) Money Mkt Fd' 1.0% 3.7% L Muni Bonds 0.3% 0.3% AAA(9.0%) MBS 10.2% % 0-.25 .25•.5 .5-1 1-2 2-3 3-4 •1-5 5. CM0 0.2% Maturity(yrs) A(16.0%) PERFORMANCE REVIEW Annualized TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS SYRS 10YRS 11/30/2014 Orange County Sanitation District Long Term 0.19% 0.49% 4.65% 4.65% 3.07% 2.43% 1.92% N/A 1.84% ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index 0.17% 0.44% 4.61% 4.61% 3.04% 2.36% 1.89% N/A 1.79% ICE BAML US 1-5 Yr US Corp/Govt Rated AAA-BBB Indx 0.22% 0.53% 5.08% 5.08% 3.22% 2.57% 2.07% N/A 1.96% Chandler Asset Manaeement-CONFIDENTIAL Paee 1 Execution Time:1/2/2020 8:53:40 PM Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund December 31, 2019 Par Value Book Value Market Value Rate Yield Balance December 1, 2019 $64,497,621 $64,497,621 $64,497,621 2.04 2.04 Deposits: 12/13/2019 1,300,000 1,300,000 1,300,000 2.04 2.04 12/19/2019 1,600,000 1,600,000 1,600,000 2.04 2.04 Total Deposits 2,900,000 2,900,000 2,900,000 2.04 2.04 Quarterly Interest Distribution - - - 2.04 2.04 Withdrawals: 12/3/2019 (2,300,000) (2,300,000) (2,300,000) 2.04 2.04 12/4/2019 (1,100,000) (1,100,000) (1,100,000) 2.04 2.04 12/11/2019 (2,300,000) (2,300,000) (2,300,000) 2.04 2.04 12/17/2019 (2,200,000) (2,200,000) (2,200,000) 2.04 2.04 12/26/2019 (2,200,000) (2,200,000) (2,200,000) 2.04 2.04 12/30/2019 (2,900,000) (2,900,000) (2,900,000) 2.04 2.04 Total Withdrawals (13,000,000) (13,000,000) (13,000,000) 2.04 2.04 Balance December 31, 2019 $54,397,621 $54,397,621 $54,397,621 2.04 2.04 U.S. Bank Asset Summary - Liquid As of 12/31/2019 Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss Cash Equivalents COMMERCIAL PAPER 4,465,000.0000 4,410,542.93 4,455,432.60 2.55 44,889.67 FIRST AMERICAN SHORT TERM FDS 5,270,167.5700 5,270,167.57 5,270,167.57 3.01 - U. S. GOVERNMENT 43,500,000.0000 43,378,032.60 43,455,120.00 24.83 77,087.40 US AGY-SHORT TERM CASH EQUIV 10,700,000.0000 10,683,452.78 10,689,915.00 6.11 6,462.22 Cash Equivalents Total 63,935,167.5700 63,742,195.88 63,870,635.17 36.50 128,439.29 Fixed Income FINANCE 7,500,000.0000 7,486,090.00 7,503,465.00 4.29 17,375.00 FOREIGN CORPORATE 2,000,000.0000 2,001,340.00 2,000,740.00 1.14 (600.00) INDUSTRIAL 2,000,000.0000 2,011,340.00 2,006,940.00 1.15 (4,400.00) INFORMATION TECHNOLOGY 2,000,000.0000 2,002,700.00 2,002,200.00 1.14 (500.00) SHORT TERM FUNDS 4,000,000.0000 4,000,335.13 4,000,698.00 2.29 362.87 U. S. GOVERNMENT 93,500,000.0000 93,445,175.81 93,590,880.00 53.49 145,704.19 Fixed Income Total 111,000,000.0000 110,946,980.94 111,104,923.00 63.50 157,942.06 Grand Total 174,935,167.5700 174,689,176.82 174,975,558.17 100.00 286,381.35 1 of 1 U.S. Bank Asset Summary - Long-Term As of 12/31/2019 Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss Cash Equivalents COMMERCIAL PAPER 10,000,000.0000 9,917,138.89 9,944,400.00 1.72 27,261.11 FIRST AMERICAN SHORT TERM FDS 6,029,999.8000 6,029,999.80 6,029,999.80 1.04 - Cash Equivalents Total 16,029,999.8000 15,947,138.69 15,974,399.80 2.77 27,261.11 Fixed Income CONSUMER DISCRETIONARY 4,064,000.0000 4,055,701.78 4,229,376.46 0.73 173,674.68 CONSUMER STAPLES 3,880,000.0000 3,878,991.40 4,079,820.00 0.71 200,828.60 ENERGY 9,000,000.0000 8,942,542.40 9,177,210.00 1.59 234,667.60 FINANCE 66,494,000.0000 65,652,182.81 65,601,607.83 11.36 (50,574.98) FOREIGN CORPORATE 19,000,000.0000 19,106,195.00 19,485,890.00 3.38 379,695.00 HEALTH CARE 2,000,000.0000 1,948,640.00 2,060,760.00 0.36 112,120.00 INDUSTRIAL 4,410,000.0000 4,388,275.50 4,537,932.80 0.79 149,657.30 INFORMATION TECHNOLOGY 28,715,000.0000 28,626,584.95 29,210,128.50 5.06 583,543.55 INVESTMENT GRADE-MUNI REVENUE 1,800,000.0000 1,800,000.00 1,842,954.00 0.32 42,954.00 MTG RELATED SECURITY 47,002,809.5200 46,947,454.86 47,345,174.04 8.20 397,719.18 SHORT TERM FUNDS 8,000,000.0000 8,000,389.30 8,001,920.00 1.39 1,530.70 SUPRANATIONAL 33,005,000.0000 32,742,600.25 33,122,990.00 5.74 380,389.75 U. S. GOVERNMENT 188,006,225.0900 186,383,952.28 189,679,554.69 32.86 3,295,602.41 U.S. GOVERNMENT TIPS 11,270,792.0000 11,126,072.09 11,337,853.21 1.96 211,781.12 US AGY- LONG TERM ISSUES 128,475,000.0000 129,388,582.45 131,561,116.60 22.79 2,172,534.15 Fixed Income Total 555,122,826.6100 552,988,165.07 561,274,288.13 97.23 8,286,123.06 Grand Total 571,152,826.4100 568,935,303.76 577,248,687.93 100.00 8,313,384.17 1 of 1 �� BNY MELLON Statement Period 12/01/2019 Through 12/31/2019 Account 300282 Base Currency=USD OCSD LIBERTY MUTUAL Statement of Assets Held by Asset Classification Accrued Estimated Market Shares/Par Value Asset Description Market Price Market Value Cost Average Cost Income Income Yield CASH AND SHORT TERM 3,681,000.000 UNITED STATES TREASURY BILL 99.64800 3,668,042.88 3,599,335.48 97.78146 0.00 0.00 0.00% CUSIP:912796SH3 MATURITY DATE:03/26/2020 RATE:0.000% CASH BALANCE 2,595.51 2,595.51 0.00000 0.00 0.00 0.00% Total CASH AND SHORT TERM 3,670,638.39 3,601,930.99 0.00 0.00 0.00% ACCOUNT TOTALS 3,670,638.39 3,601,930.99 0.00 0.00 0.00% Total Market Value Plus Total Accrued Income 3,670,638.39 Statement of Transactions by Transaction Date Realized Transaction Date Transaction Description Income Principal Cost Gains/Losses No Transactions This Period Cumulative realized capital gain and loss position from 12/31/2018 for securities held in principal of account: Short Term: 46,968.75* Long Term: 0.00* *The above gain and loss position does not include transactions where tax cost information is incomplete or unavailable. A J N N The Bank of New York Mellon may utilize subsidiaries and affiliates to provide services and certain products to the Account. Subsidiaries and affiliates may be compensated for their services and products. The value of securities set forth on this Account Statement are determined by The Bank of New York Mellon for Corporate Trust on the basis of market prices and information obtained by The Bank of New York Mellon from unaffiliated third parties(including independent pricing vendors)("third party pricing services"). The Bank of New York Mellon has not verified such market values or information and makes no assurances as to the accuracy or 0 correctness of such market values or information or that the market values set forth on this Account Statement reflect the value of the securities that can be realized upon the sale of such securities. In addition,the market values for securities set forth in this Account Statement may differ from the market prices and information for the same securities used by other business units of The Bank of New York Mellon or its subsidiaries or affiliates based upon market prices and information received from other third party pricing services utilized by such other business units. Corporate Trust does not compare its market values with those used by,or reconcile different market values used by,other business units of The Bank of New York Mellon or its subsidiaries or its affiliates. The Bank of New York Mellon shall not be liable for any loss,damage or expense incurred as a result of or arising from or y related to the market values or information provided by third party pricing services or the differences in market prices or information provided by other third party pricing services. w J Cn U.S. Bank Investment Listing -Yield As of 12/31/2019 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Cash Equivalents 313384RU5 F H L B DISC NTS 1/14/20 0.0000% 1,200,000.0000 N/A N/A 99.95 1,198,691.67 1,199,400.00 Cash Equivalents 313384SD2 F H L B DISC NTS 1/23/20 0.0000% 5,000,000.0000 N/A N/A 99.91 4,992,586.11 4,995,600.00 Cash Equivalents 313384SK6 F H L B DISC NTS 1/29/20 0.0000% 4,500,000.0000 N/A N/A 99.89 4,492,175.00 4,494,915.00 Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 1.4652% 5,270,167.5700 1.00 5,270,167.57 5,270,167.57 Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 1.4652% 6,029,999.8000 1.00 6,029,999.80 6,029,999.80 Cash Equivalents 62479LDQ5 MUFG BANK LTD NY BRAN C P 4/24/20 0.0000% 1,365,000.0000 99.44 1,353,689.46 1,357,410.60 Cash Equivalents 62479LDQ5 MUFG BANK LTD NY BRAN C P 4/24/20 0.0000% 10,000,000.0000 99.44 9,917,138.89 9,944,400.00 Cash Equivalents 69372AAF9 PACCAR FINANCIAL CORP C P 1/15/20 0.0000% 1,100,000.0000 99.94 1,094,969.03 1,099,362.00 Cash Equivalents 89233GAH9 TOYOTA MOTOR CREDIT CO C P 1/17/20 0.0000% 2,000,000.0000 99.93 1,961,884.44 1,998,660.00 Cash Equivalents 912796RT8 U S TREASURY BILL 1/02/20 1.3900% 7,500,000.0000 N/A N/A 1.00 7,496,905.21 7,500,000.00 Cash Equivalents 912796RY7 U S TREASURY BILL 1/30/20 1.4053% 21,000,000.0000 N/A N/A 99.89 20,909,107.77 20,976,270.00 Cash Equivalents 912796TH2 U S TREASURY BILL 3/05/20 1.5202% 7,500,000.0000 N/A N/A 99.74 7,476,699.31 7,480,275.00 Cash Equivalents 912796WM7 U S TREASURY BILL 1/07/20 1.3553% 7,500,000.0000 N/A N/A 99.98 7,495,320.31 7,498,575.00 Fixed Income 00440EAP2 ACE INA HOLDINGS 2.700% 3/13/23 2.6436% 2,000,000.0000 A3 A 102.13 1,937,000.00 2,042,680.00 Fixed Income 00440EAUl ACE INA HOLDINGS 2.875% 11/03/22 2.8020% 4,169,000.0000 A3 A 102.61 4,232,453.17 4,277,685.83 Fixed Income 02587AAJ3 AMERICAN EXPRESS 1.930% 9/15/22 1.9301% 6,270,000.0000 AAA N/A 100.00 6,174,085.15 6,269,686.50 Fixed Income 02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 3.2953% 845,000.0000 A2 A 104.69 843,538.15 884,655.85 Fixed Income 02665WCQ AMERICAN HONDA MTN 3.625% 10/10/23 3.4326% 2,000,000.0000 A2 A 105.60 1,998,320.00 2,112,080.00 Fixed Income 02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 2.3734% 1,219,000.0000 A2 A 101.12 1,213,843.63 1,232,640.61 Fixed Income 03215PFN4 AMRESCO 2.91416% 6/25/29 2.9917% 119,021.6400 N/A A+ 97.41 89,377.81 115,937.79 Fixed Income 037833BS8 APPLE INC 2.250% 2/23/21 2.2367% 4,000,000.0000 AA1 AA+ 100.60 4,050,840.00 4,023,800.00 Fixed Income 037833CU2 APPLE INC 2.850% 5/11/24 2.7551% 3,000,000.0000 AA1 AA+ 103.44 3,017,760.00 3,103,320.00 Fixed Income 06051GFN4 BANK OF AMERICA MTN 2.250% 4/21/20 2.2479% 2,000,000.0000 A2 A- 100.09 2,001,960.00 2,001,880.00 Fixed Income 06051GHF9 BANK OF AMERICA 3.550% 3/05/24 3.4205% 6,675,000.0000 A2 A- 103.79 6,770,625.75 6,927,715.50 Fixed Income 06367BDS5 BANK OF MONTREAL C D 2.000% 3/18/20 1.9995% 1,000,000.0000 100.02 1,000,049.48 1,000,240.00 Fixed Income 06367BDS5 BANK OF MONTREAL C D 2.000% 3/18/20 1.9995% 8,000,000.0000 100.02 8,000,389.30 8,001,920.00 Fixed Income 06367BED7 BANK OF MONTREAL C D 1.890% 5/21/20 1.8901% 1,000,000.0000 100.00 1,000,000.00 999,958.00 Fixed Income 06406HCZO BANK OF NY MELLO MTN 2.150% 2/24/20 2.1498% 2,000,000.0000 Al A 100.01 1,994,230.00 2,000,160.00 Fixed Income 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 2.5610% 2,500,000.0000 Al A 101.52 2,504,475.00 2,538,025.00 Fixed Income 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 2.8724% 2,500,000.0000 Al A 102.70 2,489,555.00 2,567,525.00 Fixed Income 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 2.9200% 4,000,000.0000 AA2 AA 102.74 4,131,120.00 4,109,600.00 Fixed Income 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 2.6818% 2,500,000.0000 AA2 AA 102.54 2,440,950.00 2,563,550.00 Fixed Income 09247XAL5 BLACKROCK INC 3.500% 3/18/24 3.2897% 1,000,000.0000 AA3 AA- 106.39 1,036,330.00 1,063,930.00 Fixed Income 166764AH3 CHEVRON CORP 3.191% 6/24/23 3.0651% 3,500,000.0000 AA2 AA 104.11 3,441,095.00 3,643,710.00 Fixed Income 166764BG4 CHEVRON CORP 2.100% 5/16/21 2.0868% 2,500,000.0000 AA2 AA 100.63 2,485,350.00 2,515,800.00 Fixed Income 24422EUM9 JOHN DEERE MTN 3.650% 10/12/23 3.4440% 1,250,000.0000 A2 A 105.98 1,250,237.50 1,324,750.00 Fixed Income 30231GAV4 EXXON MOBIL 2.222% 3/01/21 2.2090% 3,000,000.0000 AAA AA+ 100.59 3,016,097.40 3,017,700.00 1 of 5 U.S. Bank Investment Listing -Yield As of 12/31/2019 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 3130AOF70 F H L B DEB 3.375% 12/08/23 3.1771% 10,000,000.0000 AAA AA+ 106.23 10,269,043.75 10,622,800.00 Fixed Income 313OA1XJ2 F H L B 2.875% 6/14/24 2.7382% 11,110,000.0000 AAA AA+ 105.00 11,589,031.30 11,664,944.50 Fixed Income 313OA2UW4 F H L B DEB 2.875% 9/13/24 2.7320% 2,500,000.0000 AAA AA+ 105.23 2,635,950.00 2,630,825.00 Fixed Income 313OA7CV5 F H L B DEB 1.375% 2/18/21 1.3784% 5,365,000.0000 AAA AA+ 99.75 5,343,325.40 5,351,802.10 Fixed Income 313379RB7 F H L B DEB 1.875% 6/11/21 1.8690% 4,000,000.0000 AAA AA+ 100.32 4,030,160.00 4,012,840.00 Fixed Income 313383HU8 F H L B DEB 1.750% 6/12/20 1.7495% 5,000,000.0000 AAA AA+ 100.03 5,008,950.00 5,001,400.00 Fixed Income 313383QR5 F H L B DEB 3.250% 6/09/23 3.0845% 5,000,000.0000 AAA AA+ 105.36 5,083,350.00 5,268,200.00 Fixed Income 313383YJ4 F H L B DEB 3.375% 9/08/23 3.1812% 10,000,000.0000 AAA AA+ 106.09 10,211,831.00 10,609,100.00 Fixed Income 3133EKWV4 F F C B DEB 1.850% 7/26/24 1.8424% 5,000,000.0000 AAA AA+ 100.41 5,048,280.00 5,020,600.00 Fixed Income 3133TCE95 F H L M C MLTCL MTG 4.023% 8/15/32 4.0071% 6,774.1500 N/A N/A 100.40 6,781.25 6,801.11 Fixed Income 31348SWZ3 F H L M C#786064 4.174% 1/01/28 4.0726% 1,792.2900 N/A N/A 102.49 1,748.65 1,836.92 Fixed Income 3135GOD75 F N M A DEB 1.500% 6/22/20 1.5011% 5,000,000.0000 AAA AA+ 99.93 4,955,650.00 4,996,500.00 Fixed Income 3135GOF73 F N M A 1.500% 11/30/20 1.5005% 7,500,000.0000 AAA AA+ 99.97 7,370,726.00 7,497,375.00 Fixed Income 3135GOJ20 F N M A DEB 1.375% 2/26/21 1.3785% 10,000,000.0000 AAA AA+ 99.75 10,040,950.00 9,974,900.00 Fixed Income 3135GOS38 F N M A 2.000% 1/05/22 1.9847% 3,000,000.0000 AAA AA+ 100.77 2,994,570.00 3,023,130.00 Fixed Income 3135GOT45 F N M A 1.875% 4/05/22 1.8630% 5,000,000.0000 AAA AA+ 100.64 4,972,500.00 5,032,200.00 Fixed Income 3135GOT94 F N M A DEB 2.375% 1/19/23 2.3226% 5,000,000.0000 AAA AA+ 102.26 4,910,990.00 5,112,900.00 Fixed Income 3135GOU35 F N M A 2.750% 6/22/21 2.7043% 7,500,000.0000 AAA AA+ 101.69 7,515,225.00 7,626,825.00 Fixed Income 3135GOV34 F N M A 2.500% 2/05/24 2.4250% 5,000,000.0000 AAA AA+ 103.09 4,980,850.00 5,154,700.00 Fixed Income 31371NUC7 F N M A#257179 4.500% 4/01/28 4.2657% 14,311.3000 N/A N/A 105.49 15,135.61 15,097.28 Fixed Income 31376KT22 F N M A#357969 5.000% 9/01/35 4.5366% 91,977.3800 N/A N/A 110.22 98,875.67 101,372.87 Fixed Income 3137EAEK1 F H L M C M T N 1.875% 11/17/20 1.8713% 5,000,000.0000 AAA AA+ 100.20 4,986,225.00 5,009,800.00 Fixed Income 3137EAEL9 F H L M C M T N 2.375% 2/16/21 2.3548% 7,500,000.0000 AAA AA+ 100.86 7,484,475.00 7,564,275.00 Fixed Income 3137EAEN5 F H L M C 2.750% 6/19/23 2.6478% 10,000,000.0000 AAA AA+ 103.86 9,956,500.00 10,386,000.00 Fixed Income 31381PDA3 F N M A#466397 3.400% 11/01/20 3.3872% 335,148.9200 N/A N/A 100.38 327,896.11 336,412.43 Fixed Income 3138EG6F6 F N M A#AL0869 4.500% 6/01/29 4.2241% 9,516.8400 N/A N/A 106.53 10,065.01 10,138.48 Fixed Income 31394JY35 F H L M C MLTCL MTG 6.500% 9/25/43 5.7641% 670,678.2700 N/A N/A 112.77 759,543.14 756,303.76 Fixed Income 31397QREO F N M A GTD REMIC 2.472% 2/25/41 2.4557% 177,519.8400 N/A N/A 100.67 177,464.37 178,700.35 Fixed Income 31398VJ98 F H L M C MLTCL MTG 4.251% 1/25/20 4.2583% 56,619.5500 N/A N/A 99.83 59,830.94 56,522.73 Fixed Income 31403DJZ3 F N M A#745580 5.000% 6/01/36 4.5358% 87,778.4900 N/A N/A 110.23 94,361.88 96,761.74 Fixed Income 31403GXF4 F N M A#748678 5.000% 10/01/33 4.5833% 1,754.0700 N/A N/A 109.09 1,885.63 1,913.53 Fixed Income 31406PQY8 F N M A#815971 5.000% 3/01/35 4.5390% 146,059.4400 N/A N/A 110.16 157,013.91 160,894.70 Fixed Income 31406XWT5 F N M A#823358 4.347% 2/01/35 4.1557% 107,908.8400 N/A N/A 104.60 107,065.80 112,875.88 Fixed Income 31407BXH7 F N M A#826080 5.000% 7/01/35 4.5432% 17,677.8100 N/A N/A 110.06 19,003.64 19,455.31 Fixed Income 3141 OF4V4 F N M A#888336 5.000% 7/01/36 4.5355% 171,680.9900 N/A N/A 110.24 184,557.07 189,264.56 Fixed Income 31417YAY3 F N M A#MA0022 4.500% 4/01/29 4.2651% 15,442.9600 N/A N/A 105.51 16,332.45 16,293.56 Fixed Income 36225CAZ9 G N M A 11#080023 4.125% 12/20/26 4.0162% 14,453.6500 N/A N/A 102.71 14,692.43 14,845.20 2 of 5 U.S. Bank Investment Listing -Yield As of 12/31/2019 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 36225CC20 G N M A 11#080088 3.875% 6/20/27 3.8322% 12,324.7400 N/A N/A 101.12 12,594.35 12,462.28 Fixed Income 36225CN28 G N M A 11#080408 3.875% 5/20/30 3.7399% 46,474.0300 N/A N/A 103.61 46,002.04 48,152.67 Fixed Income 36225CNM4 G N M A 11#080395 3.875% 4/20/30 3.7401% 6,225.0900 N/A N/A 103.61 6,168.65 6,449.69 Fixed Income 36225DCB8 G N M A 11#080965 3.250% 7/20/34 3.1121% 43,140.6900 N/A N/A 104.43 43,113.74 45,051.82 Fixed Income 369550BA5 GENERAL DYNAMICS 2.875% 5/11/20 2.8651% 2,000,000.0000 A2 A+ 100.35 2,011,340.00 2,006,940.00 Fixed Income 369550BE7 GENERAL DYNAMICS 3.000% 5/11/21 2.9503% 3,160,000.0000 A2 A+ 101.68 3,138,038.00 3,213,182.80 Fixed Income 404280BF5 HSBC HOLDINGS PLC 2.650% 1/05/22 2.6211% 4,500,000.0000 A2 A 101.10 4,429,980.00 4,549,635.00 Fixed Income 40428HPR7 HSBC USA INC MTN 2.350% 3/05/20 2.3488% 2,500,000.0000 A2 A 100.05 2,493,300.00 2,501,275.00 Fixed Income 40428HPR7 HSBC USA INC MTN 2.350% 3/05/20 2.3488% 2,500,000.0000 A2 A 100.05 2,472,287.50 2,501,275.00 Fixed Income 43814PAC4 HONDA AUTO 1.790% 9/20/21 1.7908% 1,600,231.5000 N/A AAA 99.95 1,574,852.83 1,599,495.39 Fixed Income 43814RACO HONDA AUTO 1.210% 12/18/20 1.2109% 229,048.8900 N/A AAA 99.92 226,534.72 228,870.23 Fixed Income 43814UAG4 HONDA AUTO 3.010% 5/18/22 2.9825% 1,710,000.0000 N/A AAA 100.92 1,709,962.72 1,725,783.30 Fixed Income 43814WAB1 HONDA AUTO 2.750% 9/20/21 2.7394% 3,788,865.0700 N/A AAA 100.39 3,788,621.06 3,803,565.87 Fixed Income 43815HAC1 HONDA AUTO 2.950% 8/22/22 2.9206% 3,970,000.0000 AAA N/A 101.01 3,969,455.32 4,010,017.60 Fixed Income 43815NABO HONDA AUTO 1.900% 4/15/22 1.9004% 3,530,000.0000 AAA AAA 99.98 3,529,752.90 3,529,294.00 Fixed Income 44932HAH6 IBM CREDIT CORP 3.000% 2/06/23 2.9144% 5,670,000.0000 A2 A 102.94 5,603,264.40 5,836,527.90 Fixed Income 458140BD1 INTEL CORP 2.875% 5/11/24 2.7678% 5,000,000.0000 Al A+ 103.87 5,025,900.00 5,193,700.00 Fixed Income 4581XOCS5 INTER AMER BK M T N 1.875% 3/15/21 1.8711% 5,000,000.0000 AAA AAA 100.21 5,059,610.00 5,010,350.00 Fixed Income 4581XOCW6 INTER AMER DEV BK 2.125% 1/18/22 2.1068% 3,000,000.0000 AAA N/A 100.87 2,996,310.00 3,025,950.00 Fixed Income 4581XOCX4 INTER AMER DEV BK 1.625% 5/12/20 1.6259% 3,035,000.0000 AAA AAA 99.94 3,027,807.05 3,033,239.70 Fixed Income 4581XOCZ9 INTER AMER DEV BK 1.750% 9/14/22 1.7459% 6,500,000.0000 AAA AAA 100.23 6,249,655.00 6,515,210.00 Fixed Income 459058FY4 INTL BK 2.000% 1/26/22 1.9858% 10,000,000.0000 AAA N/A 100.72 10,006,350.00 10,071,600.00 Fixed Income 45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 1.1346% 2,500,000.0000 AAA AAA 99.15 2,441,600.00 2,478,850.00 Fixed Income 45950KCMO INTL BK M T N 2.250% 1/25/21 2.2366% 2,970,000.0000 AAA AAA 100.60 2,961,268.20 2,987,790.30 Fixed Income 46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 2.6517% 5,000,000.0000 A2 A- 101.82 4,821,910.00 5,091,000.00 Fixed Income 46647PAUO JPMORGAN CHASE CO 3.797% 7/23/24 3.6023% 2,500,000.0000 A2 A- 105.41 2,632,175.00 2,635,125.00 Fixed Income 477870AB5 JOHN DEERE OWNER 2.280% 5/16/22 2.2751% 2,800,000.0000 AAA N/A 100.22 2,799,989.36 2,806,048.00 Fixed Income 47788BAD6 JOHN DEERE OWNER 1.820% 10/15/21 1.8216% 324,036.2200 AAA N/A 99.91 324,012.49 323,747.83 Fixed Income 47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 2.6500% 1,113,192.8600 AAA N/A 100.38 1,113,112.82 1,117,389.60 Fixed Income 47788EAC2 JOHN DEERE OWNER 3.080% 11/15/22 3.0487% 4,630,000.0000 AAA N/A 101.03 4,629,649.05 4,677,550.10 Fixed Income 47789JAB2 JOHN DEERE OWNER 2.850% 12/15/21 2.8408% 2,765,654.6500 AAA N/A 100.33 2,765,528.54 2,774,643.03 Fixed Income 525ESCOY6 LEHMAN BRTH HLD ESC 0.0000% 2,000,000.0000 - 1,027,939.99 - Fixed Income 525ESC1B7 LEHMAN BRTH MTN ES 0.00001% 1/24/13 0.0008% 600,000.0000 N/A N/A 1.27 319,005.35 7,620.00 Fixed Income 58933YAF2 MERCK CO INC 2.800% 5/18/23 2.7174% 2,000,000.0000 Al AA 103.04 1,948,640.00 2,060,760.00 Fixed Income 594918BP8 MICROSOFT CORP 1.550% 8/08/21 1.5520% 3,045,000.0000 AAA AAA 99.87 3,041,385.15 3,040,980.60 Fixed Income 61747WAL3 MORGAN STANLEY 5.500% 7/28/21 5.2210% 2,800,000.0000 A3 BBB+ 105.34 3,200,848.00 2,949,604.00 Fixed Income 64971M5E8 NEW YORK CITY NY 4.075% 11/01/20 3.9998% 1,400,000.0000 AA1 AAA 101.88 1,400,000.00 1,426,334.00 3 of 5 U.S. Bank Investment Listing -Yield As of 12/31/2019 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 65478GAD2 NISSAN AUTO 1.750% 10/15/21 1.7516% 1,563,223.4400 AAA N/A 99.91 1,538,981.27 1,561,816.54 Fixed Income 65478VAD9 NISSAN AUTO 1.320% 1/15/21 1.3204% 35,911.0400 AAA N/A 99.97 35,623.47 35,900.27 Fixed Income 65479GAD1 NISSAN AUTO 3.060% 3/15/23 3.0191% 3,560,000.0000 AAA AAA 101.35 3,559,884.66 3,608,202.40 Fixed Income 65479JAD5 NISSAN AUTO 1.930% 7/15/24 1.9292% 4,185,000.0000 AAA AAA 100.04 4,184,779.03 4,186,674.00 Fixed Income 68389XBKO ORACLE CORP 1.900% 9/15/21 1.8960% 3,000,000.0000 Al A+ 100.21 2,892,240.00 3,006,300.00 Fixed Income 69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 2.5886% 1,000,000.0000 A2 A 101.41 974,940.00 1,014,070.00 Fixed Income 69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 3.3363% 5,000,000.0000 A2 A 104.91 4,993,318.05 5,245,350.00 Fixed Income 747525AD5 QUALCOMM INC 2.250% 5/20/20 2.2475% 2,000,000.0000 A2 A- 100.11 2,002,700.00 2,002,200.00 Fixed Income 747525AD5 QUALCOMM INC 2.250% 5/20/20 2.2475% 5,000,000.0000 A2 A- 100.11 4,995,195.40 5,005,500.00 Fixed Income 78012KC62 ROYAL BANK MTN 2.125% 3/02/20 2.1242% 2,000,000.0000 AA2 AA- 100.04 2,001,340.00 2,000,740.00 Fixed Income 78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 2.5114% 6,500,000.0000 A2 A 101.54 6,581,445.00 6,600,035.00 Fixed Income 78445JAA5 S L M A 3.5925% 4/25/23 3.5827% 12,762.9400 BAA3 B 100.28 12,711.16 12,798.04 Fixed Income 808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 2.5991% 6,750,000.0000 A2 A 101.96 6,729,480.00 6,882,232.50 Fixed Income 83162CLJO S B A GTD DEV PART 6.340% 3/01/21 6.2702% 11,184.5600 N/A N/A 101.11 11,184.56 11,309.16 Fixed Income 89114M2Z9 TORONTO DOMINION C D 2.200% 1/23/20 2.1995% 2,000,000.0000 100.03 2,000,285.65 2,000,500.00 Fixed Income 89114QC48 TORONTO MTN 3.500% 7/19/23 3.3251% 5,000,000.0000 AA1 AA- 105.26 5,094,200.00 5,263,050.00 Fixed Income 89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 2.5869% 3,000,000.0000 AA3 A 102.44 3,000,570.00 3,073,170.00 Fixed Income 89239AAB9 TOYOTA AUTO 2.830% 10/15/21 2.8201% 2,755,642.4600 AAA AAA 100.35 2,755,392.25 2,765,287.21 Fixed Income 90331HNL3 US BANK NA MTN 2.850% 1/23/23 2.7828% 5,000,000.0000 Al AA- 102.41 4,981,600.00 5,120,700.00 Fixed Income 9128283,17 U S TREASURY NT 2.125% 11/30/24 2.0825% 16,500,000.0000 AAA N/A 102.04 16,783,886.72 16,837,095.00 Fixed Income 912828357 U S TREASURY NT 2.000% 1/31/20 1.9995% 30,000,000.0000 WR N/A 100.03 29,961,132.82 30,008,100.00 Fixed Income 912828357 U S TREASURY NT 2.000% 1/31/20 1.9995% 5,000,000.0000 WR N/A 100.03 5,001,953.13 5,001,350.00 Fixed Income 9128284D9 U S TREASURY NT 2.500% 3/31/23 2.4325% 10,000,000.0000 AAA N/A 102.77 9,887,265.63 10,277,300.00 Fixed Income 912828H52 U S TREASURY NT 1.250% 1/31/20 1.2504% 13,500,000.0000 WR N/A 99.97 13,396,542.97 13,495,680.00 Fixed Income 912828,176 U S TREASURY NT 1.750% 3/31/22 1.7435% 5,000,000.0000 AAA N/A 100.38 4,976,383.94 5,018,750.00 Fixed Income 9128281-24 U S TREASURY NT 1.875% 8/31/22 1.8613% 6,000,000.0000 AAA N/A 100.73 5,987,832.60 6,044,040.00 Fixed Income 9128281-32 U S TREASURY NT 1.375% 8/31/20 1.3773% 5,000,000.0000 AAA N/A 99.83 4,991,015.63 4,991,600.00 Fixed Income 9128281-57 U S TREASURY NT 1.750% 9/30/22 1.7430% 20,000,000.0000 AAA N/A 100.40 19,778,320.32 20,080,400.00 Fixed Income 9128281-99 U S TREASURY NT 1.375% 10/31/20 1.3782% 10,000,000.0000 AAA N/A 99.77 9,850,311.40 9,977,000.00 Fixed Income 912828M80 U S TREASURY NT 2.000% 11/30/22 1.9777% 8,000,000.0000 AAA N/A 101.13 7,907,500.00 8,090,320.00 Fixed Income 912828MP2 U S TREASURY NT 3.625% 2/15/20 3.6166% 5,000,000.0000 AAA N/A 100.23 5,013,671.88 5,011,600.00 Fixed Income 912828N30 U S TREASURY NT 2.125% 12/31/22 2.0931% 5,000,000.0000 AAA N/A 101.52 4,926,562.50 5,076,150.00 Fixed Income 912828N89 U S TREASURY NT 1.375% 1/31/21 1.3788% 6,000,000.0000 AAA N/A 99.72 5,895,840.41 5,983,380.00 Fixed Income 912828R69 U S TREASURY NT 1.625% 5/31/23 1.6249% 5,000,000.0000 AAA N/A 100.00 4,757,226.56 5,000,200.00 Fixed Income 912828T34 U S TREASURY NT 1.125% 9/30/21 1.1341% 7,000,000.0000 AAA N/A 99.20 6,757,914.08 6,943,650.00 Fixed Income 912828T67 U S TREASURY NT 1.250% 10/31/21 1.2576% 6,000,000.0000 AAA N/A 99.40 5,813,691.98 5,963,880.00 Fixed Income 912828U57 U S TREASURY NT 2.125% 11/30/23 2.0878% 15,000,000.0000 AAA N/A 101.78 14,723,632.81 15,267,150.00 4 of 5 U.S. Bank Investment Listing -Yield As of 12/31/2019 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 912828U65 U S TREASURY NT 1.750% 11/30/21 1.7446% 7,000,000.0000 AAA N/A 100.31 6,900,492.20 7,021,630.00 Fixed Income 912828UL2 U S TREASURY NT 1.375% 1/31/20 1.3753% 5,000,000.0000 WR N/A 99.98 4,988,671.88 4,998,900.00 Fixed Income 912828V72 U S TREASURY NT 1.875% 1/31/22 1.8641% 3,000,000.0000 AAA N/A 100.59 3,004,814.74 3,017,580.00 Fixed Income 912828V80 U S TREASURY NT 2.250% 1/31/24 2.1991% 7,500,000.0000 AAA 102.32 7,491,503.91 7,673,700.00 Fixed Income 912828VJ6 U S TREASURY NT 1.875% 6/30/20 1.8727% 15,000,000.0000 AAA N/A 100.12 15,022,265.63 15,018,150.00 Fixed Income 912828VV9 U S TREASURY NT 2.125% 8/31/20 2.1185% 15,000,000.0000 AAA N/A 100.31 15,049,804.69 15,045,750.00 Fixed Income 912828W48 U S TREASURY NT 2.125% 2/29/24 2.0863% 10,000,000.0000 AAA N/A 101.86 9,911,718.75 10,185,600.00 Fixed Income 912828WJ5 U S TREASURY NT 2.500% 5/15/24 2.4161% 7,000,000.0000 AAA N/A 103.47 7,193,046.88 7,243,110.00 Fixed Income 912828WUO U S TREASURY I P S 0.125% 7/15/24 0.1243% 11,270,792.0000 AAA N/A 100.60 11,126,072.09 11,337,853.21 Fixed Income 912828XE5 U S TREASURY NT 1.500% 5/31/20 1.5008% 5,000,000.0000 AAA N/A 99.95 4,966,423.00 4,997,250.00 Fixed Income 912828XW5 U S TREASURY NT 1.750% 6/30/22 1.7428% 5,000,000.0000 AAA N/A 100.41 4,973,454.25 5,020,700.00 Fixed Income 912828XX3 U S TREASURY NT 2.000% 6/30/24 1.9726% 5,000,000.0000 AAA N/A 101.39 5,028,710.94 5,069,350.00 Fixed Income 912828XY1 U S TREASURY NT 2.500% 6/30/20 2.4895% 5,000,000.0000 AAA N/A 100.42 5,022,070.31 5,021,100.00 Fixed Income 912828YH7 U S TREASURY NT 1.500% 9/30/24 1.5126% 14,000,000.0000 AAA N/A 99.17 13,859,296.88 13,883,520.00 Fixed Income 913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15/21 4.8341% 400,000.0000 AA3 AA- 104.16 400,000.00 416,620.00 Fixed Income 931142EK5 WALMART INC 3.400% 6/26/23 3.2335% 3,880,000.0000 AA2 AA 105.15 3,878,991.40 4,079,820.00 Fixed Income 94974BGF1 WELLS FARGO MTN 2.150% 1/30/20 2.1497% 1,000,000.0000 WR N/R 100.02 996,600.00 1,000,150.00 Fixed Income 94974BGM6 WELLS FARGO CO MTN 2.600% 7/22/20 2.5901% 5,000,000.0000 A2 A- 100.38 5,001,650.00 5,019,100.00 Fixed Income 95000U2138 WELLS FARGO MTN 2.625% 7/22/22 2.5864% 3,000,000.0000 A2 A- 101.49 2,954,520.00 3,044,820.00 Total Consolidated 752,224,246.10 5of5 U.S. Bank Asset Detail - Consolidated As of 12/31/2019 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss Cash Equivalents Total 313384RU5 F H L B DISC NTS 1/14/20 99.95 1,200,000.0000 1,198,691.67 1,199,400.00 0.16 708.33 313384SD2 F H L B DISC NTS 1/23/20 99.91 5,000,000.0000 4,992,586.11 4,995,600.00 0.66 3,013.89 313384SK6 F H L B DISC NTS 1/29/20 99.89 4,500,000.0000 4,492,175.00 4,494,915.00 0.60 2,740.00 31846V567 FIRST AM GOVT OB FD CL Z 1.00 5,270,167.5700 5,270,167.57 5,270,167.57 0.70 - 31846V567 FIRST AM GOVT OB FD CL Z 1.00 6,029,999.8000 6,029,999.80 6,029,999.80 0.80 - 62479LDQ5 MUFG BANK LTD NY BRAN C P 4/24/20 99.44 1,365,000.0000 1,353,689.46 1,357,410.60 0.18 3,721.14 62479LDQ5 MUFG BANK LTD NY BRAN C P 4/24/20 99.44 10,000,000.0000 9,917,138.89 9,944,400.00 1.32 27,261.11 69372AAF9 PACCAR FINANCIAL CORP C P 1/15/20 99.94 1,100,000.0000 1,094,969.03 1,099,362.00 0.15 4,392.97 89233GAH9 TOYOTA MOTOR CREDIT CO C P 1/17/20 99.93 2,000,000.0000 1,961,884.44 1,998,660.00 0.27 36,775.56 912796RT8 U S TREASURY BILL 1/02/20 1.00 7,500,000.0000 7,496,905.21 7,500,000.00 1.00 3,094.79 912796RY7 U S TREASURY BILL 1/30/20 99.89 21,000,000.0000 20,909,107.77 20,976,270.00 2.79 67,162.23 912796TH2 U S TREASURY BILL 3/05/20 99.74 7,500,000.0000 7,476,699.31 7,480,275.00 0.99 3,575.69 912796WM7 U S TREASURY BILL 1/07/20 99.98 7,500,000.0000 7,495,320.31 7,498,575.00 1.00 3,254.69 Cash Equivalents Total 79,965,167.3700 79,689,334.57 79,845,034.97 10.61 155,700.40 Fixed Income 00440EAP2 ACE INA HOLDINGS 2.700% 3/13/23 102.13 2,000,000.0000 1,937,000.00 2,042,680.00 0.27 105,680.00 00440EAUl ACE INA HOLDINGS 2.875%11/03/22 102.61 4,169,000.0000 4,232,453.17 4,277,685.83 0.57 45,232.66 02587AAJ3 AMERICAN EXPRESS 1.930% 9/15/22 100.00 6,270,000.0000 6,174,085.15 6,269,686.50 0.83 95,601.35 02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 104.69 845,000.0000 843,538.15 884,655.85 0.12 41,117.70 02665WCQ2 AMERICAN HONDA MTN 3.625%10/10/23 105.60 2,000,000.0000 1,998,320.00 2,112,080.00 0.28 113,760.00 02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 101.12 1,219,000.0000 1,213,843.63 1,232,640.61 0.16 18,796.98 03215PFN4 AMRESCO 2.91416% 6/25/29 97.41 119,021.6400 89,377.81 115,937.79 0.02 26,559.98 037833BS8 APPLE INC 2.250% 2/23/21 100.60 4,000,000.0000 4,050,840.00 4,023,800.00 0.53 (27,040.00) 037833CU2 APPLE INC 2.850% 5/11/24 103.44 3,000,000.0000 3,017,760.00 3,103,320.00 0.41 85,560.00 06051GFN4 BANK OF AMERICA MTN 2.250% 4/21/20 100.09 2,000,000.0000 2,001,960.00 2,001,880.00 0.27 (80.00) 06051GHF9 BANK OF AMERICA 3.550% 3/05/24 103.79 6,675,000.0000 6,770,625.75 6,927,715.50 0.92 157,089.75 06367BDS5 BANK OF MONTREAL C D 2.000% 3/18/20 100.02 1,000,000.0000 1,000,049.48 1,000,240.00 0.13 190.52 06367BDS5 BANK OF MONTREAL C D 2.000% 3/18/20 100.02 8,000,000.0000 8,000,389.30 8,001,920.00 1.06 1,530.70 06367BED7 BANK OF MONTREAL C D 1.890% 5/21/20 100.00 1,000,000.0000 1,000,000.00 999,958.00 0.13 (42.00) 06406HCZO BANK OF NY MELLO MTN 2.150% 2/24/20 100.01 2,000,000.0000 1,994,230.00 2,000,160.00 0.27 5,930.00 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 101.52 2,500,000.0000 2,504,475.00 2,538,025.00 0.34 33,550.00 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 102.70 2,500,000.0000 2,489,555.00 2,567,525.00 0.34 77,970.00 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 102.74 4,000,000.0000 4,131,120.00 4,109,600.00 0.55 (21,520.00) 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 102.54 2,500,000.0000 2,440,950.00 2,563,550.00 0.34 122,600.00 09247XAL5 BLACKROCK INC 3.500% 3/18/24 106.39 1,000,000.0000 1,036,330.00 1,063,930.00 0.14 27,600.00 166764AH3 CHEVRON CORP 3.191% 6/24/23 104.11 3,500,000.0000 3,441,095.00 3,643,710.00 0.48 202,615.00 166764BG4 CHEVRON CORP 2.100% 5/16/21 100.63 2,500,000.0000 2,485,350.00 2,515,800.00 0.33 30,450.00 24422EUM9 JOHN DEERE MTN 3.650%10/12/23 105.98 1,250,000.0000 1,250,237.50 1,324,750.00 0.18 74,512.50 30231GAV4 EXXON MOBIL 2.222% 3/01/21 100.59 3,000,000.0000 3,016,097.40 3,017,700.00 0.40 1,602.60 3130AOF70 F H L B DEB 3.375%12/08/23 106.23 10,000,000.0000 10,269,043.75 10,622,800.00 1.41 353,756.25 1 of 5 U.S. Bank Asset Detail - Consolidated As of 12/31/2019 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 313OA1XJ2 F H L B 2.875% 6/14/24 105.00 11,110,000.0000 11,589,031.30 11,664,944.50 1.55 75,913.20 313OA2UW4 F H L B DEB 2.875% 9/13/24 105.23 2,500,000.0000 2,635,950.00 2,630,825.00 0.35 (5,125.00) 313OA7CV5 F H L B DEB 1.375% 2/18/21 99.75 5,365,000.0000 5,343,325.40 5,351,802.10 0.71 8,476.70 313379RB7 F H L B DEB 1.875% 6/11/21 100.32 4,000,000.0000 4,030,160.00 4,012,840.00 0.53 (17,320.00) 313383HU8 F H L B DEB 1.750% 6/12/20 100.03 5,000,000.0000 5,008,950.00 5,001,400.00 0.66 (7,550.00) 313383QR5 F H L B DEB 3.250% 6/09/23 105.36 5,000,000.0000 5,083,350.00 5,268,200.00 0.70 184,850.00 313383YJ4 F H L B DEB 3.375% 9/08/23 106.09 10,000,000.0000 10,211,831.00 10,609,100.00 1.41 397,269.00 3133EKWV4 F F C B DEB 1.850% 7/26/24 100.41 5,000,000.0000 5,048,280.00 5,020,600.00 0.67 (27,680.00) 3133TCE95 F H L M C MLTCL MTG 4.023% 8/15/32 100.40 6,774.1500 6,781.25 6,801.11 0.00 19.86 31348SWZ3 F H L M C#786064 4.174% 1/01/28 102.49 1,792.2900 1,748.65 1,836.92 0.00 88.27 3135GOD75 F N M A DEB 1.500% 6/22/20 99.93 5,000,000.0000 4,955,650.00 4,996,500.00 0.66 40,850.00 3135GOF73 F N M A 1.500%11/30/20 99.97 7,500,000.0000 7,370,726.00 7,497,375.00 1.00 126,649.00 3135GOJ20 F N M A DEB 1.375% 2/26/21 99.75 10,000,000.0000 10,040,950.00 9,974,900.00 1.33 (66,050.00) 3135GOS38 F N M A 2.000% 1/05/22 100.77 3,000,000.0000 2,994,570.00 3,023,130.00 0.40 28,560.00 3135GOT45 F N M A 1.875% 4/05/22 100.64 5,000,000.0000 4,972,500.00 5,032,200.00 0.67 59,700.00 3135GOT94 F N M A DEB 2.375% 1/19/23 102.26 5,000,000.0000 4,910,990.00 5,112,900.00 0.68 201,910.00 3135GOU35 F N M A 2.750% 6/22/21 101.69 7,500,000.0000 7,515,225.00 7,626,825.00 1.01 111,600.00 3135GOV34 F N M A 2.500% 2/05/24 103.09 5,000,000.0000 4,980,850.00 5,154,700.00 0.69 173,850.00 31371NUC7 F N M A#257179 4.500% 4/01/28 105.49 14,311.3000 15,135.61 15,097.28 0.00 (38.33) 31376KT22 F N M A#357969 5.000% 9/01/35 110.22 91,977.3800 98,875.67 101,372.87 0.01 2,497.20 3137EAEK1 F H L M C M T N 1.875%11/17/20 100.20 5,000,000.0000 4,986,225.00 5,009,800.00 0.67 23,575.00 3137EAEL9 F H L M C M T N 2.375% 2/16/21 100.86 7,500,000.0000 7,484,475.00 7,564,275.00 1.01 79,800.00 3137EAEN5 F H L M C 2.750% 6/19/23 103.86 10,000,000.0000 9,956,500.00 10,386,000.00 1.38 429,500.00 31381PDA3 F N M A#466397 3.400%11/01/20 100.38 335,148.9200 327,896.11 336,412.43 0.04 8,516.32 3138EG6F6 F N M A#AL0869 4.500% 6/01/29 106.53 9,516.8400 10,065.01 10,138.48 0.00 73.47 31394JY35 F H L M C MLTCL MTG 6.500% 9/25/43 112.77 670,678.2700 759,543.14 756,303.76 0.10 (3,239.38) 31397QREO F N M A GTD REMIC 2.472% 2/25/41 100.67 177,519.8400 177,464.37 178,700.35 0.02 1,235.98 31398VJ98 F H L M C MLTCL MTG 4.251% 1/25/20 99.83 56,619.5500 59,830.94 56,522.73 0.01 (3,308.21) 31403DJZ3 F N M A#745580 5.000% 6/01/36 110.23 87,778.4900 94,361.88 96,761.74 0.01 2,399.86 31403GXF4 F N M A#748678 5.000%10/01/33 109.09 1,754.0700 1,885.63 1,913.53 0.00 27.90 31406PQY8 F N M A#815971 5.000% 3/01/35 110.16 146,059.4400 157,013.91 160,894.70 0.02 3,880.79 31406XWT5 F N M A#823358 4.347% 2/01/35 104.60 107,908.8400 107,065.80 112,875.88 0.02 5,810.08 31407BXH7 F N M A#826080 5.000% 7/01/35 110.06 17,677.8100 19,003.64 19,455.31 0.00 451.67 3141OF4V4 F N M A#888336 5.000% 7/01/36 110.24 171,680.9900 184,557.07 189,264.56 0.03 4,707.49 31417YAY3 F N M A#MA0022 4.500% 4/01/29 105.51 15,442.9600 16,332.45 16,293.56 0.00 (38.89) 36225CAZ9 G N M A I I#080023 4.125%12/20/26 102.71 14,453.6500 14,692.43 14,845.20 0.00 152.77 36225CC20 G N M A I I#080088 3.875% 6/20/27 101.12 12,324.7400 12,594.35 12,462.28 0.00 (132.07) 36225CN28 G N M A I I#080408 3.875% 5/20/30 103.61 46,474.0300 46,002.04 48,152.67 0.01 2,150.63 36225CNM4 G N M A I I#080395 3.875% 4/20/30 103.61 6,225.0900 6,168.65 6,449.69 0.00 281.04 36225DCB8 G N M A I I#080965 3.250% 7/20/34 104.43 43,140.6900 43,113.74 45,051.82 0.01 1,938.08 369550BA5 GENERAL DYNAMICS 2.875% 5/11/20 100.35 2,000,000.0000 2,011,340.00 2,006,940.00 0.27 (4,400.00) 369550BE7 GENERAL DYNAMICS 3.000% 5/11/21 101.68 3,160,000.0000 3,138,038.00 3,213,182.80 0.43 75,144.80 2of5 U.S. Bank Asset Detail - Consolidated As of 12/31/2019 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 404280BF5 HSBC HOLDINGS PLC 2.650% 1/05/22 101.10 4,500,000.0000 4,429,980.00 4,549,635.00 0.60 119,655.00 40428HPR7 HSBC USA INC MTN 2.350% 3/05/20 100.05 2,500,000.0000 2,493,300.00 2,501,275.00 0.33 7,975.00 40428HPR7 HSBC USA INC MTN 2.350% 3/05/20 100.05 2,500,000.0000 2,472,287.50 2,501,275.00 0.33 28,987.50 43814PAC4 HONDAAUTO 1.790% 9/20/21 99.95 1,600,231.5000 1,574,852.83 1,599,495.39 0.21 24,642.56 43814RACO HONDA AUTO 1.210%12/18/20 99.92 229,048.8900 226,534.72 228,870.23 0.03 2,335.51 43814UAG4 HONDA AUTO 3.010% 5/18/22 100.92 1,710,000.0000 1,709,962.72 1,725,783.30 0.23 15,820.58 43814WAB1 HONDA AUTO 2.750% 9/20/21 100.39 3,788,865.0700 3,788,621.06 3,803,565.87 0.51 14,944.81 43815HAC1 HONDA AUTO 2.950% 8/22/22 101.01 3,970,000.0000 3,969,455.32 4,010,017.60 0.53 40,562.28 43815NABO HONDA AUTO 1.900% 4/15/22 99.98 3,530,000.0000 3,529,752.90 3,529,294.00 0.47 (458.90) 44932HAH6 IBM CREDIT CORP 3.000% 2/06/23 102.94 5,670,000.0000 5,603,264.40 5,836,527.90 0.78 233,263.50 458140BD1 INTEL CORP 2.875% 5/11/24 103.87 5,000,000.0000 5,025,900.00 5,193,700.00 0.69 167,800.00 4581XOCS5 INTER AMER BK M T N 1.875% 3/15/21 100.21 5,000,000.0000 5,059,610.00 5,010,350.00 0.67 (49,260.00) 4581XOCW6 INTER AMER DEV BK 2.125% 1/18/22 100.87 3,000,000.0000 2,996,310.00 3,025,950.00 0.40 29,640.00 4581XOCX4 INTER AMER DEV BK 1.625% 5/12/20 99.94 3,035,000.0000 3,027,807.05 3,033,239.70 0.40 5,432.65 4581XOCZ9 INTER AMER DEV BK 1.750% 9/14/22 100.23 6,500,000.0000 6,249,655.00 6,515,210.00 0.87 265,555.00 459058FY4 INTL BK 2.000% 1/26/22 100.72 10,000,000.0000 10,006,350.00 10,071,600.00 1.34 65,250.00 45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 99.15 2,500,000.0000 2,441,600.00 2,478,850.00 0.33 37,250.00 45950KCMO INTL BK M T N 2.250% 1/25/21 100.60 2,970,000.0000 2,961,268.20 2,987,790.30 0.40 26,522.10 46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 101.82 5,000,000.0000 4,821,910.00 5,091,000.00 0.68 269,090.00 46647PAUO JPMORGAN CHASE CO 3.797% 7/23/24 105.41 2,500,000.0000 2,632,175.00 2,635,125.00 0.35 2,950.00 477870AB5 JOHN DEERE OWNER 2.280% 5/16/22 100.22 2,800,000.0000 2,799,989.36 2,806,048.00 0.37 6,058.64 47788BAD6 JOHN DEERE OWNER 1.820%10/15/21 99.91 324,036.2200 324,012.49 323,747.83 0.04 (264.66) 47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 100.38 1,113,192.8600 1,113,112.82 1,117,389.60 0.15 4,276.78 47788EAC2 JOHN DEERE OWNER 3.080%11/15/22 101.03 4,630,000.0000 4,629,649.05 4,677,550.10 0.62 47,901.05 47789JAB2 JOHN DEERE OWNER 2.850%12/15/21 100.33 2,765,654.6500 2,765,528.54 2,774,643.03 0.37 9,114.49 525ESCOY6 LEHMAN BIRTH HLD ESC - 2,000,000.0000 1,027,939.99 - - (1,027,939.99) 525ESCIB7 LEHMAN BIRTH MTN ES 0.00001% 1/24/13 1.27 600,000.0000 319,005.35 7,620.00 0.00 (311,385.35) 58933YAF2 MERCK CO INC 2.800% 5/18/23 103.04 2,000,000.0000 1,948,640.00 2,060,760.00 0.27 112,120.00 594918BP8 MICROSOFT CORP 1.550% 8/08/21 99.87 3,045,000.0000 3,041,385.15 3,040,980.60 0.40 (404.55) 61747WAL3 MORGAN STANLEY 5.500% 7/28/21 105.34 2,800,000.0000 3,200,848.00 2,949,604.00 0.39 (251,244.00) 64971M5E8 NEW YORK CITY NY 4.075%11/01/20 101.88 1,400,000.0000 1,400,000.00 1,426,334.00 0.19 26,334.00 65478GAD2 NISSAN AUTO 1.750%10/15/21 99.91 1,563,223.4400 1,538,981.27 1,561,816.54 0.21 22,835.27 65478VAD9 NISSAN AUTO 1.320% 1/15/21 99.97 35,911.0400 35,623.47 35,900.27 0.00 276.80 65479GAD1 NISSAN AUTO 3.060% 3/15/23 101.35 3,560,000.0000 3,559,884.66 3,608,202.40 0.48 48,317.74 65479JAD5 NISSAN AUTO 1.930% 7/15/24 100.04 4,185,000.0000 4,184,779.03 4,186,674.00 0.56 1,894.97 68389XBKO ORACLE CORP 1.900% 9/15/21 100.21 3,000,000.0000 2,892,240.00 3,006,300.00 0.40 114,060.00 69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 101.41 1,000,000.0000 974,940.00 1,014,070.00 0.13 39,130.00 69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 104.91 5,000,000.0000 4,993,318.05 5,245,350.00 0.70 252,031.95 747525AD5 QUALCOMM INC 2.250% 5/20/20 100.11 2,000,000.0000 2,002,700.00 2,002,200.00 0.27 (500.00) 747525AD5 QUALCOMM INC 2.250% 5/20/20 100.11 5,000,000.0000 4,995,195.40 5,005,500.00 0.67 10,304.60 78012KC62 ROYAL BANK MTN 2.125% 3/02/20 100.04 2,000,000.0000 2,001,340.00 2,000,740.00 0.27 (600.00) 78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 101.54 6,500,000.0000 6,581,445.00 6,600,035.00 0.88 18,590.00 3of5 U.S. Bank Asset Detail - Consolidated As of 12/31/2019 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 78445JAA5 S L M A 3.5925% 4/25/23 100.28 12,762.9400 12,711.16 12,798.04 0.00 86.88 808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 101.96 6,750,000.0000 6,729,480.00 6,882,232.50 0.91 152,752.50 83162CLJO S B A GTD DEV PART 6.340% 3/01/21 101.11 11,184.5600 11,184.56 11,309.16 0.00 124.60 89114M2Z9 TORONTO DOMINION C D 2.200% 1/23/20 100.03 2,000,000.0000 2,000,285.65 2,000,500.00 0.27 214.35 89114QC48 TORONTO MTN 3.500% 7/19/23 105.26 5,000,000.0000 5,094,200.00 5,263,050.00 0.70 168,850.00 89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 102.44 3,000,000.0000 3,000,570.00 3,073,170.00 0.41 72,600.00 89239AAB9 TOYOTA AUTO 2.830%10/15/21 100.35 2,755,642.4600 2,755,392.25 2,765,287.21 0.37 9,894.96 90331HNL3 US BANK NA MTN 2.850% 1/23/23 102.41 5,000,000.0000 4,981,600.00 5,120,700.00 0.68 139,100.00 9128283J7 U S TREASURY NT 2.125%11/30/24 102.04 16,500,000.0000 16,783,886.72 16,837,095.00 2.24 53,208.28 912828357 U S TREASURY NT 2.000% 1/31/20 100.03 30,000,000.0000 29,961,132.82 30,008,100.00 3.99 46,967.18 912828357 U S TREASURY NT 2.000% 1/31/20 100.03 5,000,000.0000 5,001,953.13 5,001,350.00 0.66 (603.13) 9128284D9 U S TREASURY NT 2.500% 3/31/23 102.77 10,000,000.0000 9,887,265.63 10,277,300.00 1.37 390,034.37 9128281-152 U S TREASURY NT 1.250% 1/31/20 99.97 13,500,000.0000 13,396,542.97 13,495,680.00 1.79 99,137.03 912828J76 U S TREASURY NT 1.750% 3/31/22 100.38 5,000,000.0000 4,976,383.94 5,018,750.00 0.67 42,366.06 9128281-24 U S TREASURY NT 1.875% 8/31/22 100.73 6,000,000.0000 5,987,832.60 6,044,040.00 0.80 56,207.40 9128281-32 U S TREASURY NT 1.375% 8/31/20 99.83 5,000,000.0000 4,991,015.63 4,991,600.00 0.66 584.37 9128281-57 U S TREASURY NT 1.750% 9/30/22 100.40 20,000,000.0000 19,778,320.32 20,080,400.00 2.67 302,079.68 9128281-99 U S TREASURY NT 1.375%10/31/20 99.77 10,000,000.0000 9,850,311.40 9,977,000.00 1.33 126,688.60 912828M80 U S TREASURY NT 2.000%11/30/22 101.13 8,000,000.0000 7,907,500.00 8,090,320.00 1.08 182,820.00 912828MP2 U S TREASURY NT 3.625% 2/15/20 100.23 5,000,000.0000 5,013,671.88 5,011,600.00 0.67 (2,071.88) 9128281\130 U S TREASURY NT 2.125%12/31/22 101.52 5,000,000.0000 4,926,562.50 5,076,150.00 0.67 149,587.50 9128281\189 U S TREASURY NT 1.375% 1/31/21 99.72 6,000,000.0000 5,895,840.41 5,983,380.00 0.80 87,539.59 912828R69 U S TREASURY NT 1.625% 5/31/23 100.00 5,000,000.0000 4,757,226.56 5,000,200.00 0.66 242,973.44 912828T34 U S TREASURY NT 1.125% 9/30/21 99.20 7,000,000.0000 6,757,914.08 6,943,650.00 0.92 185,735.92 912828T67 U S TREASURY NT 1.250%10/31/21 99.40 6,000,000.0000 5,813,691.98 5,963,880.00 0.79 150,188.02 912828U57 U S TREASURY NT 2.125%11/30/23 101.78 15,000,000.0000 14,723,632.81 15,267,150.00 2.03 543,517.19 912828U65 U S TREASURY NT 1.750% 11/30/21 100.31 7,000,000.0000 6,900,492.20 7,021,630.00 0.93 121,137.80 912828UL2 U S TREASURY NT 1.375% 1/31/20 99.98 5,000,000.0000 4,988,671.88 4,998,900.00 0.66 10,228.12 912828V72 U S TREASURY NT 1.875% 1/31/22 100.59 3,000,000.0000 3,004,814.74 3,017,580.00 0.40 12,765.26 912828V80 U S TREASURY NT 2.250% 1/31/24 102.32 7,500,000.0000 7,491,503.91 7,673,700.00 1.02 182,196.09 912828VJ6 U S TREASURY NT 1.875% 6/30/20 100.12 15,000,000.0000 15,022,265.63 15,018,150.00 2.00 (4,115.63) 912828VV9 U S TREASURY NT 2.125% 8/31/20 100.31 15,000,000.0000 15,049,804.69 15,045,750.00 2.00 (4,054.69) 912828W48 U S TREASURY NT 2.125% 2/29/24 101.86 10,000,000.0000 9,911,718.75 10,185,600.00 1.35 273,881.25 912828WJ5 U S TREASURY NT 2.500% 5/15/24 103.47 7,000,000.0000 7,193,046.88 7,243,110.00 0.96 50,063.12 912828WUO U S TREASURY I P S 0.125% 7/15/24 100.60 11,270,792.0000 11,126,072.09 11,337,853.21 1.51 211,781.12 912828XE5 U S TREASURY NT 1.500% 5/31/20 99.95 5,000,000.0000 4,966,423.00 4,997,250.00 0.66 30,827.00 912828XW5 U S TREASURY NT 1.750% 6/30/22 100.41 5,000,000.0000 4,973,454.25 5,020,700.00 0.67 47,245.75 912828XX3 U S TREASURY NT 2.000% 6/30/24 101.39 5,000,000.0000 5,028,710.94 5,069,350.00 0.67 40,639.06 912828XY1 U S TREASURY NT 2.500% 6/30/20 100.42 5,000,000.0000 5,022,070.31 5,021,100.00 0.67 (970.31) 912828YH7 U S TREASURY NT 1.500% 9/30/24 99.17 14,000,000.0000 13,859,296.88 13,883,520.00 1.85 24,223.12 913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15/21 104.16 400,000.0000 400,000.00 416,620.00 0.06 16,620.00 931142EK5 WALMART INC 3.400% 6/26/23 105.15 3,880,000.0000 3,878,991.40 4,079,820.00 0.54 200,828.60 4of5 U.S. Bank Asset Detail - Consolidated As of 12/31/2019 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 94974BGF1 WELLS FARGO MTN 2.150% 1/30/20 100.02 1,000,000.0000 996,600.00 1,000,150.00 0.13 3,550.00 94974BGM6 WELLS FARGO CO MTN 2.600% 7/22/20 100.38 5,000,000.0000 5,001,650.00 5,019,100.00 0.67 17,450.00 95000U268 WELLS FARGO MTN 2.625% 7/22/22 101.49 3,000,000.0000 2,954,520.00 3,044,820.00 0.40 90,300.00 Fixed Income Total 666,122,826.6100 663,935,146.01 672,379,211.13 89.39 8,444,065.12 Grand Total 746,087,993.9800 743,624,480.58 752,224,246.10 100.00 8,599,765.52 5of5 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP ld Explanation Units Price Net Cash Amt Cost Gain/Loss ACQUISITIONS 10/02/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,168.7300 1.000000 -5,168.73 5,168.73 0.00 10/02/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,567,929.1900 1.000000 -7,567,929.19 7,567,929.19 0.00 10/03/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,650,000.0000 1.000000 -1,650,000.00 1,650,000.00 0.00 10/03/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,280.5800 1.000000 -5,280.58 5,280.58 0.00 10/07/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 46,875.0000 1.000000 -46,875.00 46,875.00 0.00 10/08/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,250,000.0000 1.000000 -1,250,000.00 1,250,000.00 0.00 10/10/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 36,250.0000 1.000000 -36,250.00 36,250.00 0.00 10/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,250,000.0000 1.000000 -1,250,000.00 1,250,000.00 0.00 10/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,004,126.1100 1.000000 -1,004,126.11 1,004,126.11 0.00 10/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,177,326.8200 1.000000 -1,177,326.82 1,177,326.82 0.00 10/17/2019 06406HCZO PURCHASED PAR VALUE OF BANK OF NY MELLO MTN 2.150% 2/24/20/GOLDMAN 500,000.0000 1.000610 -500,305.00 500,305.00 0.00 SACHS&CO.LLC/500,000 PAR VALUE AT 100.061 % 10/17/2019 90331HNB5 PURCHASED PAR VALUE OF US BANK MTN 2.000% 1/24/20/GOLDMAN SACHS 2,000,000.0000 1.000120 -2,000,240.00 2,000,240.00 0.00 &CO.LLC/2,000,000 PAR VALUE AT 100.012% 10/18/2019 69372AAF9 PURCHASED PAR VALUE OF PACCAR FINANCIAL CORP C P 1/15/20/MIZUHO 1,100,000.0000 0.995426 -1,094,969.03 1,094,969.03 0.00 SECURITIES USA FXD INC/1,100,000 PAR VALUE AT 99.54263909% 10/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,500,000.0000 1.000000 -1,500,000.00 1,500,000.00 0.00 10/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 310,745.2800 1.000000 -310,745.28 310,745.28 0.00 10/21/2019 78012KC62 PURCHASED PAR VALUE OF ROYAL BANK MTN 2.125% 3/02/20/RBC CAPITAL 2,000,000.0000 1.000670 -2,001,340.00 2,001,340.00 0.00 MARKETS,LLC/2,000,000 PAR VALUE AT 100.067% 10/21/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 11,733.7400 1.000000 -11,733.74 11,733.74 0.00 10/23/2019 65479JAD5 PURCHASED PAR VALUE OF NISSAN AUTO 1.940% 7/15/24/MIZUHO 4,185,000.0000 0.999947 -4,184,779.03 4,184,779.03 0.00 SECURITIES USA FXD INC/4,185,000 PAR VALUE AT 99.99471995% 10/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 31,447.1800 1.000000 -31,447.18 31,447.18 0.00 10/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 234,968.9500 1.000000 -234,968.95 234,968.95 0.00 10/31/2019 912796RY7 PURCHASED PAR VALUE OF U S TREASURY BILL 1/30/20/NOMURA 3,000,000.0000 0.996120 -2,988,359.58 2,988,359.58 0.00 SECURITIES INTERNATIONA/3,000,000 PAR VALUE AT 99.611986% 10/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,518,750.0000 1.000000 -2,518,750.00 2,518,750.00 0.00 10/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,136,625.9000 1.000000 -5,136,625.90 5,136,625.90 0.00 11/01/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,525.0000 1.000000 -28,525.00 28,525.00 0.00 11/04/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,798.7000 1.000000 -4,798.70 4,798.70 0.00 11/04/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 76,406.8500 1.000000 -76,406.85 76,406.85 0.00 11/12/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,750.0000 1.000000 -28,750.00 28,750.00 0.00 11/12/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 186,684.3800 1.000000 -186,684.38 186,684.38 0.00 11/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,520,600.8300 1.000000 -1,520,600.83 1,520,600.83 0.00 11/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,785.3100 1.000000 -13,785.31 13,785.31 0.00 1 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 729,199.9400 1.000000 -729,199.94 729,199.94 0.00 11/19/2019 62479LDQ5 PURCHASED PAR VALUE OF MUFG BANK LTD NY BRAN C P 4/24/20/MUFG UNION 1,365,000.0000 0.991714 -1,353,689.46 1,353,689.46 0.00 BK NA/MMI/PIMS/IPA/1,365,000 PAR VALUE AT 99.17138901 % 11/19/2019 62479LDQ5 PURCHASED PAR VALUE OF MUFG BANK LTD NY BRAN C P 4/24/20/MUFG UNION 10,000,000.0000 0.991714 -9,917,138.89 9,917,138.89 0.00 BK NA/MMI/PIMS/IPA/10,000,000 PAR VALUE AT 99.1713889% 11/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,860,000.0000 1.000000 -1,860,000.00 1,860,000.00 0.00 11/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 11,255,000.0000 1.000000 -11,255,000.00 11,255,000.00 0.00 11/20/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 22,500.0000 1.000000 -22,500.00 22,500.00 0.00 11/20/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 61,084.4200 1.000000 -61,084.42 61,084.42 0.00 11/21/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 9,759.5800 1.000000 -9,759.58 9,759.58 0.00 11/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 25,993.2100 1.000000 -25,993.21 25,993.21 0.00 11/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 215,210.7500 1.000000 -215,210.75 215,210.75 0.00 11/27/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 10,000,000.0000 1.000000 -10,000,000.00 10,000,000.00 0.00 11/27/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 6,000,000.0000 1.000000 -6,000,000.00 6,000,000.00 0.00 11/29/2019 912796RY7 PURCHASED PAR VALUE OF U S TREASURY BILL 1/30/20/BOFA SECURITIES, 11,000,000.0000 0.997303 -10,970,333.00 10,970,333.00 0.00 INC./FXD INC/11,000,000 PAR VALUE AT 99.7303% 12/02/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,458,519.8000 1.000000 -5,458,519.80 5,458,519.80 0.00 12/03/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,788.5000 1.000000 -2,788.50 2,788.50 0.00 12/03/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,676.2900 1.000000 -3,676.29 3,676.29 0.00 12/06/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,375.0000 1.000000 -5,375.00 5,375.00 0.00 12/06/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 500,000.0000 1.000000 -500,000.00 500,000.00 0.00 12/09/2019 912828YH7 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 9/30/24/J.P. MORGAN 6,000,000.0000 0.991602 -5,949,609.38 5,949,609.38 0.00 SECURITIES LLC/6,000,000 PAR VALUE AT 99.16015633% 12/11/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 37,500.0000 1.000000 -37,500.00 37,500.00 0.00 12/12/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 83,500.0000 1.000000 -83,500.00 83,500.00 0.00 12/13/2019 9128283J7 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 11/30/24/GOLDMAN 7,500,000.0000 1.017227 -7,629,199.22 7,629,199.22 0.00 SACHS&CO.LLC/7,500,000 PAR VALUE AT 101.72265627% 12/16/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,088,240.6500 1.000000 -1,088,240.65 1,088,240.65 0.00 12/16/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 31,233.0000 1.000000 -31,233.00 31,233.00 0.00 12/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 637,012.6300 1.000000 -637,012.63 637,012.63 0.00 12/19/2019 06367BDS5 PURCHASED PAR VALUE OF BANK OF MONTREAL C D 2.000% 3/18/20/RBC CAPITAL 1,000,000.0000 1.000049 -1,000,049.48 1,000,049.48 0.00 MARKETS,LLC/1,000,000 PAR VALUE AT 100.004948% 12/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 95,999,894.9600 1.000000 -95,999,894.96 95,999,894.96 0.00 12/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 137,500.0000 1.000000 -137,500.00 137,500.00 0.00 12/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 38,000,000.0000 1.000000 -38,000,000.00 38,000,000.00 0.00 12/20/2019 06367BDS5 PURCHASED PAR VALUE OF BANK OF MONTREAL C D 2.000% 3/18/20/RBC CAPITAL 8,000,000.0000 1.000049 -8,000,389.30 8,000,389.30 0.00 MARKETS,LLC/8,000,000 PAR VALUE AT 100.00486625% 2of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CLISIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/20/2019 313384RU5 PURCHASED PAR VALUE OF F H L B DISC NTS 1/14/20/NOMURA SECURITIES 1,200,000.0000 0.998910 -1,198,691.67 1,198,691.67 0.00 INTERNATIONA/1,200,000 PAR VALUE AT 99.8909725% 12/20/2019 313384SD2 PURCHASED PAR VALUE OF F H L B DISC NTS 1/23/20/BARCLAYS CAPITAL 5,000,000.0000 0.998517 -4,992,586.11 4,992,586.11 0.00 INC. FIXED IN/5,000,000 PAR VALUE AT 99.8517222% 12/20/2019 313384SK6 PURCHASED PAR VALUE OF F H L B DISC NTS 1/29/20/JEFFERIES 4,500,000.0000 0.998261 -4,492,175.00 4,492,175.00 0.00 LLC/4,500,000 PAR VALUE AT 99.82611111 % 12/20/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,848.7300 1.000000 -3,848.73 3,848.73 0.00 12/23/2019 89114M2Z9 PURCHASED PAR VALUE OF TORONTO DOMINION C D 2.200% 1/23/20/GOLDMAN 2,000,000.0000 1.000143 -2,000,285.65 2,000,285.65 0.00 SACHS&CO.LLC/2,000,000 PAR VALUE AT 100.0142825% 12/23/2019 912796RT8 PURCHASED PAR VALUE OF U S TREASURY BILL 1/02/20/CITIGROUP GLOBAL 7,500,000.0000 0.999587 -7,496,905.21 7,496,905.21 0.00 MARKETS INC./7,500,000 PAR VALUE AT 99.95873613% 12/23/2019 912796WM7 PURCHASED PAR VALUE OF U S TREASURY BILL 1/07/20/NOMURA 7,500,000.0000 0.999376 -7,495,320.31 7,495,320.31 0.00 SECURITIES INTERNATIONA/7,500,000 PAR VALUE AT 99.93760413% 12/23/2019 912796TH2 PURCHASED PAR VALUE OF U S TREASURY BILL 3/05/20/WELLS FARGO 7,500,000.0000 0.996893 -7,476,699.31 7,476,699.31 0.00 SECURITIES, LLC/7,500,000 PAR VALUE AT 99.68932413% 12/23/2019 912828VJ6 PURCHASED PAR VALUE OF U S TREASURY NT 1.875% 6/30/20/WELLS FARGO 15,000,000.0000 1.001484 -15,022,265.63 15,022,265.63 0.00 SECURITIES, LLC/15,000,000 PAR VALUE AT 100.14843753% 12/23/2019 912828357 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 1/31/20/CITIGROUP 5,000,000.0000 1.000391 -5,001,953.13 5,001,953.13 0.00 GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 100.0390626% 12/23/2019 912828357 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 1/31/20/CITIGROUP 5,000,000.0000 1.000391 -5,001,953.13 5,001,953.13 0.00 GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 100.0390626% 12/23/2019 912828357 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 1/31/20/NOMURA 5,000,000.0000 1.000391 -5,001,953.13 5,001,953.13 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.0390626% 12/23/2019 912828VV9 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 8/31/20/NOMURA 15,000,000.0000 1.003320 -15,049,804.69 15,049,804.69 0.00 SECURITIES INTERNATIONA/15,000,000 PAR VALUE AT 100.33203127% 12/24/2019 06367BED7 PURCHASED PAR VALUE OF BANK OF MONTREAL C D 1.890% 5/21/20/BMO CAPITAL 1,000,000.0000 1.000000 -1,000,000.00 1,000,000.00 0.00 MARKETS CORP/BONDS/1,000,000 PAR VALUE AT 100% 12/24/2019 912828YH7 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 9/30/24/MORGAN 8,000,000.0000 0.988711 -7,909,687.50 7,909,687.50 0.00 STANLEY&CO. LLC/8,000,000 PAR VALUE AT 98.87109375% 12/24/2019 9128281-57 PURCHASED PAR VALUE OF U S TREASURY NT 1.750% 9/30/22/BOFA 7,000,000.0000 1.002109 -7,014,765.63 7,014,765.63 0.00 SECURITIES, INC./FXD INC/7,000,000 PAR VALUE AT 100.21093757% 12/24/2019 912828357 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 1/31/20/NOMURA 5,000,000.0000 1.000352 -5,001,757.81 5,001,757.81 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.0351562% 12/24/2019 9128283J7 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 11/30/24/GOLDMAN 9,000,000.0000 1.017188 -9,154,687.50 9,154,687.50 0.00 SACHS&CO.LLC/9,000,000 PAR VALUE AT 101.71875% 12/24/2019 912828MP2 PURCHASED PAR VALUE OF U S TREASURY NT 3.625% 2/15/20/NOMURA 5,000,000.0000 1.002734 -5,013,671.88 5,013,671.88 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.2734376% 12/26/2019 9128281-32 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 8/31/20/NOMURA 5,000,000.0000 0.998203 -4,991,015.63 4,991,015.63 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99.8203126% 3of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/26/2019 912828XY1 PURCHASED PAR VALUE OF U S TREASURY NT 2.500% 6/30/20/NOMURA 5,000,000.0000 1.004414 -5,022,070.31 5,022,070.31 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.4414062% 12/26/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 0.0700 1.000000 -0.07 0.07 0.00 12/26/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 156,854.3400 1.000000 -156,854.34 156,854.34 0.00 12/26/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 100,634.4500 1.000000 -100,634.45 100,634.45 0.00 12/27/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,628.0000 1.000000 -14,628.00 14,628.00 0.00 12/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 203,125.0000 1.000000 -203,125.00 203,125.00 0.00 12/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 146,875.0000 1.000000 -146,875.00 146,875.00 0.00 TOTAL ACQUISITIONS 381,236,732.8700 -381,315,383.47 381,315,383.47 0.00 DISPOSITIONS 10/02/2019 3137EADM8 MATURED PAR VALUE OF F H L M C M T N 1.250%10/02/19 7,500,000 PAR VALUE -7,500,000.0000 1.000000 7,500,000.00 -7,399,650.00 100,350.00 AT 100% 10/03/2019 912796SL4 MATURED PAR VALUE OF U S TREASURY BILL 10/03/19 1,650,000 PAR VALUE -1,650,000.0000 1.000000 1,646,687.63 -1,646,687.63 0.00 AT 100% 10/08/2019 912796VY2 MATURED PAR VALUE OF U S TREASURY BILL 10/08/19 1,250,000 PAR VALUE -1,250,000.0000 1.000000 1,249,517.42 -1,249,517.42 0.00 AT 100% 10/15/2019 912796VZ9 MATURED PAR VALUE OF U S TREASURY BILL 10/15/19 1,250,000 PAR VALUE -1,250,000.0000 1.000000 1,249,059.90 -1,249,059.90 0.00 AT 100% 10/15/2019 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 4.677% 1/01/28 SEPTEMBER -24.9900 0.000000 24.99 -24.38 0.61 FHLMC DUE 10/15/19 10/15/2019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.016% 8/15/32 -386.6500 0.000000 386.65 -387.05 -0.40 10/15/2019 47788NADO PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.490% 5/15/23 CMO FINAL -1,003,712.9300 0.000000 1,003,712.93 -987,088.93 16,624.00 PAYDOWN 10/15/2019 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 -42,196.1900 9.824872 42,196.19 -42,193.10 3.09 10/15/2019 47788CAB8 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.420%10/15/20 -179,120.5700 2.314487 179,120.57 -178,756.74 363.83 10/15/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 -74,892.5400 5.535560 74,892.54 -74,292.81 599.73 10/15/2019 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -175,390.0800 2.363715 175,390.08 -172,670.16 2,719.92 10/15/2019 89238BAB8 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100% 10/15/20 -325,799.3400 1.272477 325,799.34 -325,766.04 33.30 10/15/2019 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -289,115.0800 1.433935 289,115.08 -289,088.83 26.25 10/18/2019 96130AAK4 MATURED PAR VALUE OF WESTPAC BKING C D 2.970%10/18/19 1,500,000 PAR -1,500,000.0000 1.000000 1,500,000.00 -1,503,302.80 -3,302.80 VALUE AT 100% 10/18/2019 43814RACO PAID DOWN PAR VALUE OF HONDA AUTO 1.210% 12/18/20 -115,199.0400 0.000000 115,199.04 -113,934.55 1,264.49 10/18/2019 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -177,461.4800 0.000000 177,461.48 -174,647.05 2,814.43 10/21/2019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I#080023 4.125% 12/20/26 SEPTEMBER GNMA -176.3500 0.000000 176.35 -179.26 -2.91 DUE 10/20/19 10/21/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A 1 1#080088 3.875% 6/20/27 SEPTEMBER GNMA -186.0100 0.000000 186.01 -190.08 -4.07 DUE 10/20/19 4of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CLISIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/21/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 1 1#080395 3.875% 4/20/30 SEPTEMBER GNMA -103.2800 0.000000 103.28 -102.34 0.94 DUE 10/20/19 10/21/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 1 1#080408 3.875% 5/20/30 SEPTEMBER GNMA -337.5300 0.000000 337.53 -334.10 3.43 DUE 10/20/19 10/21/2019 36225DCB8 PAID DOWN PAR VALUE OF G N M A 1 1#080965 3.750% 7/20/34 SEPTEMBER GNMA -746.0600 0.000000 746.06 -745.59 0.47 DUE 10/20/19 10/25/2019 03215PFN4 PAID DOWN PAR VALUE OF AMRESCO 2.95841% 6/25/29 -4,106.2100 0.000000 4,106.21 -3,083.51 1,022.70 10/25/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 -232,634.2500 3.215297 232,634.25 -245,828.98 -13,194.73 10/25/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -7,406.7800 0.000000 7,406.78 -8,388.18 -981.40 10/25/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 SEPTEMBER FNMA -133.7500 0.000000 133.75 -141.45 -7.70 DUE 10/25/19 10/25/2019 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 SEPTEMBER FNMA -1,579.8500 0.000000 1,579.85 -1,698.34 -118.49 DUE 10/25/19 10/25/2019 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400%11/01/20 SEPTEMBER FNMA -748.4400 0.000000 748.44 -732.24 16.20 DUE 10/25/19 10/25/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 SEPTEMBER FNMA -1,482.5900 0.000000 1,482.59 -1,593.78 -111.19 DUE 10/25/19 10/25/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 SEPTEMBER FNMA -8.9800 0.000000 8.98 -9.65 -0.67 DUE 10/25/19 10/25/2019 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 SEPTEMBER FNMA -709.0700 0.000000 709.07 -762.25 -53.18 DUE 10/25/19 10/25/2019 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4.722% 2/01/35 SEPTEMBER FNMA -440.6000 0.000000 440.60 -437.16 3.44 DUE 10/25/19 10/25/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 SEPTEMBER FNMA -79.8800 0.000000 79.88 -85.87 -5.99 DUE 10/25/19 10/25/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 SEPTEMBER FNMA -2,690.3200 0.000000 2,690.32 -2,892.09 -201.77 DUE 10/25/19 10/25/2019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 SEPTEMBER FNMA -226.9300 0.000000 226.93 -240.00 -13.07 DUE 10/25/19 10/25/2019 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 SEPTEMBER FNMA -296.1600 0.000000 296.16 -313.22 -17.06 DUE 10/25/19 10/25/2019 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.825% 2/25/41 -2,555.4600 0.000000 2,555.46 -2,554.66 0.80 10/25/2019 78445JAA5 PAID DOWN PAR VALUE OF S L M A 3.8594% 4/25/23 -581.9100 0.000000 581.91 -579.55 2.36 10/31/2019 912828F62 MATURED PAR VALUE OF U S TREASURY NT 1.500%10/31/19 2,500,000 PAR -2,500,000.0000 1.000000 2,500,000.00 -2,486,718.75 13,281.25 VALUE AT 100% 10/31/2019 912828G61 SOLD PAR VALUE OF U S TREASURY NT 1.500% 11/30/19/NOMURA SECURITIES -5,000,000.0000 0.999805 4,999,023.44 -4,966,423.00 32,600.44 INTERNATIONA/5,000,000 PAR VALUE AT 99.9804688% 11/15/2019 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 4.678% 1/01/28 OCTOBER FHLMC -17.7400 0.000000 17.74 -17.31 0.43 DUE 11/15/19 5of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/15/2019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.016% 8/15/32 -386.6000 1,163.993792 386.60 -387.00 -0.40 11/15/2019 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 -46,876.0500 8.844008 46,876.05 -46,872.62 3.43 11/15/2019 47788CAB8 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.420%10/15/20 CMO FINAL -1,489.7400 0.000000 1,489.74 -1,486.71 3.03 PAYDOWN 11/15/2019 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -137,727.6800 3.010086 137,727.68 -137,717.78 9.90 11/15/2019 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850%12/15/21 -249,117.1200 1.664166 249,117.12 -249,105.76 11.36 11/15/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 -75,420.5600 5.496806 75,420.56 -74,816.61 603.95 11/15/2019 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -171,609.4500 2.415789 171,609.45 -168,948.16 2,661.29 11/15/2019 89238BAB8 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100% 10/15/20 -326,607.1000 1.269330 326,607.10 -326,573.72 33.38 11/15/2019 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -297,889.1200 1.391700 297,889.12 -297,862.07 27.05 11/18/2019 43814RACO PAID DOWN PAR VALUE OF HONDA AUTO 1.210% 12/18/20 -113,371.9700 0.000000 113,371.97 -112,127.53 1,244.44 11/18/2019 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -173,527.6900 0.000000 173,527.69 -170,775.65 2,752.04 11/18/2019 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -255,971.3900 0.000000 255,971.39 -255,954.91 16.48 11/19/2019 62479MYK3 MATURED PAR VALUE OF MUFG BANK LTD NY BRAN C P 11/19/19 1,860,000 PAR -1,860,000.0000 1.000000 1,850,032.47 -1,850,032.47 0.00 VALUE AT 100% 11/19/2019 62479MYK3 MATURED PAR VALUE OF MUFG BANK LTD NY BRAN C P 11/19/19 11,255,000 PAR -11,255,000.0000 1.000000 11,194,685.71 -11,194,685.71 0.00 VALUE AT 100% 11/20/2019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 1 1#080023 4.125%12/20/26 OCTOBER GNMA -566.7000 0.000000 566.70 -576.06 -9.36 DUE 11/20/19 11/20/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A 1 1#080088 3.875% 6/20/27 OCTOBER GNMA -2,399.0700 0.000000 2,399.07 -2,451.55 -52.48 DUE 11/20/19 11/20/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 1 1#080395 3.875% 4/20/30 OCTOBER GNMA -42.4600 0.000000 42.46 -42.08 0.38 DUE 11/20/19 11/20/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 1 1#080408 3.875% 5/20/30 OCTOBER GNMA -1,091.5100 0.000000 1,091.51 -1,080.42 11.09 DUE 11/20/19 11/20/2019 36225DCB8 PAID DOWN PAR VALUE OF G N M A 1 1#080965 3.250% 7/20/34 OCTOBER GNMA -333.2900 0.000000 333.29 -333.08 0.21 DUE 11/20/19 11/25/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 -213,700.1600 0.084664 213,700.16 -225,820.97 -12,120.81 11/25/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -469.7300 0.000000 469.73 -531.97 -62.24 11/25/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 OCTOBER FNMA -135.4500 0.000000 135.45 -143.25 -7.80 DUE 11/25/19 11/25/2019 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 OCTOBER FNMA -2,206.6400 0.000000 2,206.64 -2,372.14 -165.50 DUE 11/25/19 11/25/2019 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400% 11/01/20 OCTOBER FNMA -706.3800 0.000000 706.38 -691.09 15.29 DUE 11/25/19 11/25/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 OCTOBER FNMA -1,601.3200 0.000000 1,601.32 -1,721.42 -120.10 DUE 11/25/19 6of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/25/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000% 10/01/33 OCTOBER FNMA -9.0200 0.000000 9.02 -9.70 -0.68 DUE 11/25/19 11/25/2019 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 OCTOBER FNMA -4,574.2200 0.000000 4,574.22 -4,917.29 -343.07 DUE 11/25/19 11/25/2019 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4.722% 2/01/35 OCTOBER FNMA -442.5600 0.000000 442.56 -439.10 3.46 DUE 11/25/19 11/25/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 OCTOBER FNMA -836.8200 0.000000 836.82 -899.58 -62.76 DUE 11/25/19 11/25/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 OCTOBER FNMA -3,099.1200 0.000000 3,099.12 -3,331.55 -232.43 DUE 11/25/19 11/25/2019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 OCTOBER FNMA -180.2600 0.000000 180.26 -190.64 -10.38 DUE 11/25/19 11/25/2019 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 OCTOBER FNMA -229.0300 0.000000 229.03 -242.22 -13.19 DUE 11/25/19 11/25/2019 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.825% 2/25/41 -3,329.2300 0.000000 3,329.23 -3,328.19 1.04 12/02/2019 73358WAG9 MATURED PAR VALUE OF PORT AUTH NY NJ 5.309% 12/01/19 2,440,000 PAR -2,440,000.0000 1.000000 2,440,000.00 -2,507,633.89 -67,633.89 VALUE AT 100% 12/02/2019 912828G61 MATURED PAR VALUE OF U S TREASURY NT 1.500%11/30/19 2,500,000 PAR -2,500,000.0000 1.000000 2,500,000.00 -2,483,211.50 16,788.50 VALUE AT 100% 12/06/2019 94988J5G8 MATURED PAR VALUE OF WELLS FARGO MTN 2.150% 12/06/19 500,000 PAR -500,000.0000 1.000000 500,000.00 -498,425.00 1,575.00 VALUE AT 100% 12/16/2019 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 4.678% 1/01/28 NOVEMBER -10.5000 0.000000 10.50 -10.24 0.26 FHLMC DUE 12/15/19 12/16/2019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.027% 8/15/32 -381.1000 0.000000 381.10 -381.50 -0.40 12/16/2019 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 -28,285.3200 14.656796 28,285.32 -28,283.25 2.07 12/16/2019 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -89,079.4600 4.653959 89,079.46 -89,073.05 6.41 12/16/2019 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850%12/15/21 -250,228.2300 1.656776 250,228.23 -250,216.82 11.41 12/16/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 -65,825.8800 6.298012 65,825.88 -65,298.76 527.12 12/16/2019 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -153,480.3600 2.701142 153,480.36 -151,100.22 2,380.14 12/16/2019 89238BAB8 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100% 10/15/20 CMO FINAL -31,233.0000 0.000000 31,233.00 -31,229.81 3.19 PAUYDOWN 12/16/2019 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -272,353.3400 1.522185 272,353.34 -272,328.61 24.73 12/18/2019 43814RACO PAID DOWN PAR VALUE OF HONDA AUTO 1.210% 12/18/20 -106,100.0400 0.000000 106,100.04 -104,935.43 1,164.61 12/18/2019 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -164,004.9300 0.000000 164,004.93 -161,403.91 2,601.02 12/18/2019 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -350,163.5400 0.000000 350,163.54 -350,140.99 22.55 12/20/2019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 1 1#080023 4.125% 12/20/26 NOVEMBER GNMA -151.7000 0.000000 151.70 -154.21 -2.51 DUE 12/20/19 12/20/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A 1 1#080088 3.875% 6/20/27 NOVEMBER GNMA -187.2300 0.000000 187.23 -191.33 -4.10 DUE 12/20/19 7of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CLISIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/20/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 1 1#080395 3.875% 4/20/30 NOVEMBER GNMA -150.5600 0.000000 150.56 -149.19 1.37 DUE 12/20/19 12/20/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 1 1#080408 3.875% 5/20/30 NOVEMBER GNMA -1,851.6900 0.000000 1,851.69 -1,832.88 18.81 DUE 12/20/19 12/20/2019 36225DCB8 PAID DOWN PAR VALUE OF G N M A 1 1#080965 3.250% 7/20/34 NOVEMBER GNMA -1,120.4300 0.000000 1,120.43 -1,119.73 0.70 DUE 12/20/19 12/23/2019 06417G5Q7 MATURED PAR VALUE OF BANK OF NOVA C D 2.610% 12/23/19 2,300,000 PAR -2,300,000.0000 1.000000 2,300,000.00 -2,300,614.40 -614.40 VALUE AT 100% 12/24/2019 90331HNB5 FULL CALL PAR VALUE OF US BANK MTN 2.000% 1/24/20/CALLS/ -2,000,000.0000 1.000000 2,000,000.00 -2,000,240.00 -240.00 12/26/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 -156,100.7800 0.138540 156,100.78 -164,954.62 -8,853.84 12/26/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -8,230.9000 0.000000 8,230.90 -9,321.49 -1,090.59 12/26/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 NOVEMBER FNMA -137.0300 0.000000 137.03 -144.92 -7.89 DUE 12/25/19 12/26/2019 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 NOVEMBER FNMA -3,121.4100 0.000000 3,121.41 -3,355.52 -234.11 DUE 12/25/19 12/26/2019 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400%11/01/20 NOVEMBER FNMA -754.2900 0.000000 754.29 -737.97 16.32 DUE 12/25/19 12/26/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 NOVEMBER FNMA -1,647.8700 0.000000 1,647.87 -1,771.46 -123.59 DUE 12/25/19 12/26/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000% 10/01/33 NOVEMBER FNMA -9.0700 0.000000 9.07 -9.75 -0.68 DUE 12/25/19 12/26/2019 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 NOVEMBER FNMA -5,800.0600 0.000000 5,800.06 -6,235.06 -435.00 DUE 12/25/19 12/26/2019 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4.647% 2/01/35 NOVEMBER FNMA -477.4000 0.000000 477.40 -473.67 3.73 DUE 12/25/19 12/26/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 NOVEMBER FNMA -82.7800 0.000000 82.78 -88.99 -6.21 DUE 12/25/19 12/26/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 NOVEMBER FNMA -2,693.7800 0.000000 2,693.78 -2,895.81 -202.03 DUE 12/25/19 12/26/2019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 NOVEMBER FNMA -120.8900 0.000000 120.89 -127.85 -6.96 DUE 12/25/19 12/26/2019 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 NOVEMBER FNMA -468.6300 0.000000 468.63 -495.62 -26.99 DUE 12/25/19 12/26/2019 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.825% 2/25/41 -3,091.1500 0.000000 3,091.15 -3,090.18 0.97 TOTAL DISPOSITIONS -49,928,837.8300 49,852,844.40 -49,759,265.38 93,579.02 OTHER TRANSACTIONS 10/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 5,168.73 0.00 0.00 9/30/2019 INTEREST FROM 9/1/19 TO 9/30/19 8of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 10/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 21,054.19 0.00 0.00 9/30/2019 INTEREST FROM 9/1/19 TO 9/30/19 10/02/2019 3137EADM8 INTEREST EARNED ON F H L M C M T N 1.250%10/02/19$1 PV ON 7500000.0000 0.0000 0.000000 46,875.00 0.00 0.00 SHARES DUE 10/2/2019 10/03/2019 912796SL4 INTEREST EARNED ON U S TREASURY BILL 10/03/19$1 PV ON 1650000.0000 0.0000 0.000000 3,312.37 0.00 0.00 SHARES DUE 10/3/2019 1,650,000 PAR VALUE AT 100% 10/03/2019 525ESCOY6 Unknown LEHMAN BRTH HLD ESC PARTIAL LIQUIDATING DISTRIBUTION PAID @ 0.0000 0.000000 4,058.66 -4,058.66 0.00 2.02/SHARE 10/03/2019 525ESCIB7 Unknown LEHMAN BRTH MTN ES 0.00001% 1/24/13 PARTIAL LIQUIDATING 0.0000 0.000000 1,221.92 -1,221.92 0.00 DISTRIBUTION PAID @ 2.03654000 10/07/2019 3135GOT45 INTEREST EARNED ON F N M A 1.875% 4/05/22$1 PV ON 5000000.0000 0.0000 0.000000 46,875.00 0.00 0.00 SHARES DUE 10/5/2019 10/08/2019 912796VY2 INTEREST EARNED ON U S TREASURY BILL 10/08/19$1 PV ON 1250000.0000 0.0000 0.000000 482.58 0.00 0.00 SHARES DUE 10/8/2019 1,250,000 PAR VALUE AT 100% 10/10/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 416.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 10/10/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 416.00 UNITS 0.0000 0.000000 0.00 416.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 10/10/2019 02665WCQ2 INTEREST EARNED ON AMERICAN HONDA MTN 3.625% 10/10/23$1 PV ON 0.0000 0.000000 36,250.00 0.00 0.00 2000000.0000 SHARES DUE 10/10/2019 10/10/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 416.0000 UNITS 416.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 10/10/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 416.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 10/15/2019 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15/22$1 PV ON 10084.2400 0.0000 0.000000 10,084.24 0.00 0.00 SHARES DUE 10/15/2019$0.00161/PV ON 6,270,000.00 PV DUE 10/15/19 10/15/2019 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4.677% 1/01/28$1 PV ON 7.1900 SHARES 0.0000 0.000000 7.19 0.00 0.00 DUE 10/15/2019 AUGUST FHLMC DUE 10/15/19 10/15/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.016% 8/15/32$1 PV ON 26.5300 0.0000 0.000000 26.53 0.00 0.00 SHARES DUE 10/15/2019$0.00335/PV ON 7,928.50 PV DUE 10/15/19 10/15/2019 43815NABO INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22$1 PV ON 5589.1700 0.0000 0.000000 5,589.17 0.00 0.00 SHARES DUE 10/15/2019$0.00158/PV ON 3,530,000.00 PV DUE 10/15/19 10/15/2019 24422EUM9 INTEREST EARNED ON JOHN DEERE MTN 3.650% 10/12/23$1 PV ON 1250000.0000 0.0000 0.000000 22,812.50 0.00 0.00 SHARES DUE 10/12/2019 10/15/2019 47788NADO INTEREST EARNED ON JOHN DEERE OWNER 1.490% 5/15/23$1 PV ON 1246.2800 0.0000 0.000000 1,246.28 0.00 0.00 SHARES DUE 10/15/2019$0.00124/PV ON 1,003,712.93 PV DUE 10/15/19 10/15/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 669.4500 0.0000 0.000000 669.45 0.00 0.00 SHARES DUE 10/15/2019$0.00152/PV ON 441,393.78 PV DUE 10/15/19 10/15/2019 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22$1 PV ON 5320.0000 0.0000 0.000000 5,320.00 0.00 0.00 SHARES DUE 10/15/2019$0.00190/PV ON 2,800,000.00 PV DUE 10/15/19 9of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/15/2019 47788CAB8 INTEREST EARNED ON JOHN DEERE OWNER 2.420% 10/15/20$1 PV ON 364.2300 0.0000 0.000000 364.23 0.00 0.00 SHARES DUE 10/15/2019$0.00202/PV ON 180,610.31 PV DUE 10/15/19 10/15/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2970.3400 0.0000 0.000000 2,970.34 0.00 0.00 SHARES DUE 10/15/2019$0.00222/PV ON 1,340,000.00 PV DUE 10/15/19 10/15/2019 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 7754.3800 0.0000 0.000000 7,754.38 0.00 0.00 SHARES DUE 10/15/2019$0.00238/PV ON 3,265,000.00 PV DUE 10/15/19 10/15/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22$1 PV ON 0.0000 0.000000 11,883.68 0.00 0.00 11883.6800 SHARES DUE 10/15/2019$0.00257/PV ON 4,630,000.00 PV DUE 10/15/19 10/15/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 277.2600 0.0000 0.000000 277.26 0.00 0.00 SHARES DUE 10/15/2019$0.00110/PV ON 252,050.02 PV DUE 10/15/19 10/15/2019 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21 $1 PV ON 3009.5700 0.0000 0.000000 3,009.57 0.00 0.00 SHARES DUE 10/15/2019$0.00146/PV ON 2,063,703.33 PV DUE 10/15/19 10/15/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 10/15/2019$0.00255/PV ON 3,560,000.00 PV DUE 10/15/19 10/15/2019 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 1196.3700 0.0000 0.000000 1,196.37 0.00 0.00 SHARES DUE 10/15/2019$0.00175/PV ON 683,639.44 PV DUE 10/15/19 10/15/2019 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15/21 $1 PV ON 8525.3700 0.0000 0.000000 8,525.37 0.00 0.00 SHARES DUE 10/15/2019$0.00236/PV ON 3,615,000.00 PV DUE 10/15/19 10/15/2019 912796VZ9 INTEREST EARNED ON U S TREASURY BILL 10/15/19$1 PV ON 1250000.0000 0.0000 0.000000 940.10 0.00 0.00 SHARES DUE 10/15/2019 1,250,000 PAR VALUE AT 100% 10/17/2019 06406HCZO PAID ACCRUED INTEREST ON PURCHASE OF BANK OF NY MELLO MTN 2.150% 0.0000 0.000000 -1,582.64 0.00 0.00 2/24/20 10/17/2019 90331 HNB5 PAID ACCRUED INTEREST ON PURCHASE OF US BANK MTN 2.000% 1/24/20 0.0000 0.000000 -9,222.22 0.00 0.00 10/17/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,511,349.8600 1.000000 2,511,349.86 -2,511,349.86 0.00 10/18/2019 43814RACO INTEREST EARNED ON HONDA AUTO 1.210% 12/18/20$1 PV ON 568.4200 0.0000 0.000000 568.42 0.00 0.00 SHARES DUE 10/18/2019$0.00101/PV ON 563,719.94 PV DUE 10/18/19 10/18/2019 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 3155.2100 0.0000 0.000000 3,155.21 0.00 0.00 SHARES DUE 10/18/2019$0.00149/PV ON 2,115,225.60 PV DUE 10/18/19 10/18/2019 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 10071.8800 0.0000 0.000000 10,071.88 0.00 0.00 SHARES DUE 10/18/2019$0.00229/PV ON 4,395,000.00 PV DUE 10/18/19 10/18/2019 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 4289.2500 0.0000 0.000000 4,289.25 0.00 0.00 SHARES DUE 10/18/2019$0.00251/PV ON 1,710,000.00 PV DUE 10/18/19 10/18/2019 96130AAK4 INTEREST EARNED ON WESTPAC BKING C D 2.970%10/18/19$1 PV ON 0.0000 0.000000 45,045.00 0.00 0.00 1500000.0000 SHARES DUE 10/18/2019 INTEREST ON 10/18/19 MATURITY 10/18/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,049,924.0300 1.000000 1,049,924.03 -1,049,924.03 0.00 10/21/2019 06051GFN4 INTEREST EARNED ON BANK OF AMERICA MTN 2.250% 4/21/20$1 PV ON 0.0000 0.000000 22,500.00 0.00 0.00 2000000.0000 SHARES DUE 10/21/2019 10/21/2019 36225CAZ9 INTEREST EARNED ON G N M A 1 1#080023 4.125%12/20/26$1 PV ON 52.7600 0.0000 0.000000 52.76 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 10/21/2019 36225CC20 INTEREST EARNED ON G N M A 1 1#080088 3.875% 6/20/27$1 PV ON 48.7500 0.0000 0.000000 48.75 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10/21/2019 36225CNM4 INTEREST EARNED ON G N M A 1 1#080395 3.875% 4/20/30$1 PV ON 21.0600 0.0000 0.000000 21.06 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10/21/2019 36225CN28 INTEREST EARNED ON G N M A 1 1#080408 3.875% 5/20/30$1 PV ON 160.6700 0.0000 0.000000 160.67 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10/21/2019 36225DCB8 INTEREST EARNED ON G N M A 1 1#080965 3.750% 7/20/34$1 PV ON 141.6900 0.0000 0.000000 141.69 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10/21/2019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 10/21/2019$0.00246/PV ON 3,970,000.00 PV DUE 10/21/19 10/21/2019 78012KC62 PAID ACCRUED INTEREST ON PURCHASE OF ROYAL BANK MTN 2.125% 3/02/20 0.0000 0.000000 -5,784.72 0.00 0.00 10/21/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,984,624.7200 1.000000 1,984,624.72 -1,984,624.72 0.00 10/23/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,184,779.0300 1.000000 4,184,779.03 -4,184,779.03 0.00 10/25/2019 03215PFN4 INTEREST EARNED ON AMRESCO 2.95841% 6/25/29$1 PV ON 303.5500 0.0000 0.000000 303.55 0.00 0.00 SHARES DUE 10/25/2019$0.00247/PV ON 123,127.85 PV DUE 10/25/19 10/25/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 2334.7000 0.0000 0.000000 2,334.70 0.00 0.00 SHARES DUE 10/25/2019$0.00354/PV ON 659,054.74 PV DUE 10/25/19 10/25/2019 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 3720.0900 0.0000 0.000000 3,720.09 0.00 0.00 SHARES DUE 10/25/2019$0.00542/PV ON 686,785.68 PV DUE 10/25/19 10/25/2019 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 55.1900 SHARES 0.0000 0.000000 55.19 0.00 0.00 DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 412.0200 0.0000 0.000000 412.02 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400% 11/01/20$1 PV ON 955.8500 0.0000 0.000000 955.85 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 385.4600 0.0000 0.000000 385.46 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000% 10/01/33$1 PV ON 7.4200 SHARES 0.0000 0.000000 7.42 0.00 0.00 DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 654.7600 0.0000 0.000000 654.76 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31406XWT5 INTEREST EARNED ON F N M A#823358 4.722% 2/01/35$1 PV ON 429.9800 0.0000 0.000000 429.98 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 77.8200 SHARES 0.0000 0.000000 77.82 0.00 0.00 DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 750.6800 0.0000 0.000000 750.68 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 37.6700 0.0000 0.000000 37.67 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 11 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 10/25/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 61.6400 0.0000 0.000000 61.64 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31397QREO INTEREST EARNED ON F N M A GTD REMIC 2.825% 2/25/41 $1 PV ON 419.3600 0.0000 0.000000 419.36 0.00 0.00 SHARES DUE 10/25/2019$0.00225/PV ON 186,495.68 PV DUE 10/25/19 10/25/2019 78445JAA5 INTEREST EARNED ON S L M A 3.8594% 4/25/23$1 PV ON 128.7600 SHARES 0.0000 0.000000 128.76 0.00 0.00 DUE 10/25/2019$0.00965/PV ON 13,344.85 PV DUE 10/25/19 10/29/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-312.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 10/29/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-312.00 UNITS 0.0000 0.000000 0.00 -312.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 10/29/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-312.0000 UNITS -312.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 10/29/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-312.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 10/31/2019 CASH DISBURSEMENT PAID TO BANC OF CALIFORNIA OUTGOING DOMESTIC WIRE 0.0000 0.000000 -15,000,000.00 0.00 0.00 PER DIR DTD 10/29/19 10/31/2019 912828T67 INTEREST EARNED ON U S TREASURY NT 1.250%10/31/21 $1 PV ON 6000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 10/31/2019 10/31/2019 9128281-99 INTEREST EARNED ON U S TREASURY NT 1.375%10/31/20$1 PV ON 0.0000 0.000000 68,750.00 0.00 0.00 10000000.0000 SHARES DUE 10/31/2019 10/31/2019 912828F62 INTEREST EARNED ON U S TREASURY NT 1.500%10/31/19$1 PV ON 2500000.0000 0.0000 0.000000 18,750.00 0.00 0.00 SHARES DUE 10/31/2019 10/31/2019 912828G61 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.500% 11/30/19 0.0000 0.000000 31,352.46 0.00 0.00 10/31/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,988,359.5800 1.000000 2,988,359.58 -2,988,359.58 0.00 10/31/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -15,000,000.0000 1.000000 15,000,000.00 -15,000,000.00 0.00 11/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 4,798.70 0.00 0.00 10/31/2019 INTEREST FROM 10/1/19 TO 10/31/19 11/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 16,477.47 0.00 0.00 10/31/2019 INTEREST FROM 10/1/19 TO 10/31/19 11/01/2019 64971M5E8 INTEREST EARNED ON NEW YORK CITY NY 4.075% 11/01/20$1 PV ON 0.0000 0.000000 28,525.00 0.00 0.00 1400000.0000 SHARES DUE 11/1/2019 11/04/2019 00440EAU1 INTEREST EARNED ON ACE INA HOLDINGS 2.875% 11/03/22$1 PV ON 0.0000 0.000000 59,929.38 0.00 0.00 4169000.0000 SHARES DUE 11/3/2019 11/12/2019 037833CU2 INTEREST EARNED ON APPLE INC 2.850% 5/11/24$1 PV ON 3000000.0000 0.0000 0.000000 42,750.00 0.00 0.00 SHARES DUE 11/11/2019 11/12/2019 369550BA5 INTEREST EARNED ON GENERAL DYNAMICS 2.875% 5/11/20$1 PV ON 0.0000 0.000000 28,750.00 0.00 0.00 2000000.0000 SHARES DUE 11/11/2019 11/12/2019 369550BE7 INTEREST EARNED ON GENERAL DYNAMICS 3.000% 5/11/21 $1 PV ON 0.0000 0.000000 47,400.00 0.00 0.00 3160000.0000 SHARES DUE 11/11/2019 12 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/12/2019 458140BD1 INTEREST EARNED ON INTEL CORP 2.875% 5/11/24$1 PV ON 5000000.0000 0.0000 0.000000 71,875.00 0.00 0.00 SHARES DUE 11/11/2019 11/12/2019 4581XOCX4 INTEREST EARNED ON INTER AMER DEV BK 1.625% 5/12/20$1 PV ON 0.0000 0.000000 24,659.38 0.00 0.00 3035000.0000 SHARES DUE 11/12/2019 11/13/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4160.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/13/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4160.00 UNITS 0.0000 0.000000 0.00 4,160.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/13/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4160.0000 UNITS 4,160.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/13/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4160.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/15/2019 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15/22$1 PV ON 10084.2300 0.0000 0.000000 10,084.23 0.00 0.00 SHARES DUE 11/15/2019$0.00161/PV ON 6,270,000.00 PV DUE 11/15/19 11/15/2019 084664BT7 INTEREST EARNED ON BERKSHIRE HATHAWAY 3.000% 5/15/22$1 PV ON 0.0000 0.000000 60,000.00 0.00 0.00 4000000.0000 SHARES DUE 11/15/2019 11/15/2019 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4.678% 1/01/28$1 PV ON 7.1000 SHARES 0.0000 0.000000 7.10 0.00 0.00 DUE 11/15/2019 SEPTEMBER FHLMC DUE 11/15/19 11/15/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.016% 8/15/32$1 PV ON 25.2900 0.0000 0.000000 25.29 0.00 0.00 SHARES DUE 11/15/2019$0.00335/PV ON 7,541.85 PV DUE 11/15/19 11/15/2019 43815NABO INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22$1 PV ON 5589.1500 0.0000 0.000000 5,589.15 0.00 0.00 SHARES DUE 11/15/2019$0.00158/PV ON 3,530,000.00 PV DUE 11/15/19 11/15/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 605.4500 0.0000 0.000000 605.45 0.00 0.00 SHARES DUE 11/15/2019$0.00152/PV ON 399,197.59 PV DUE 11/15/19 11/15/2019 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22$1 PV ON 5320.0000 0.0000 0.000000 5,320.00 0.00 0.00 SHARES DUE 11/15/2019$0.00190/PV ON 2,800,000.00 PV DUE 11/15/19 11/15/2019 47788CAB8 INTEREST EARNED ON JOHN DEERE OWNER 2.420% 10/15/20$1 PV ON 3.0000 0.0000 0.000000 3.00 0.00 0.00 SHARES DUE 11/15/2019$0.00202/PV ON 1,489.74 PV DUE 11/15/19 11/15/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2970.3400 0.0000 0.000000 2,970.34 0.00 0.00 SHARES DUE 11/15/2019$0.00222/PV ON 1,340,000.00 PV DUE 11/15/19 11/15/2019 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 7754.3800 0.0000 0.000000 7,754.38 0.00 0.00 SHARES DUE 11/15/2019$0.00238/PV ON 3,265,000.00 PV DUE 11/15/19 11/15/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22$1 PV ON 0.0000 0.000000 11,883.68 0.00 0.00 11883.6800 SHARES DUE 11/15/2019$0.00257/PV ON 4,630,000.00 PV DUE 11/15/19 11/15/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 194.8700 0.0000 0.000000 194.87 0.00 0.00 SHARES DUE 11/15/2019$0.00110/PV ON 177,157.48 PV DUE 11/15/19 11/15/2019 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21 $1 PV ON 2753.7800 0.0000 0.000000 2,753.78 0.00 0.00 SHARES DUE 11/15/2019$0.00146/PV ON 1,888,313.25 PV DUE 11/15/19 11/15/2019 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.940% 7/15/24$1 PV ON 4935.9600 0.0000 0.000000 4,935.96 0.00 0.00 SHARES DUE 11/15/2019$0.00118/PV ON 4,185,000.00 PV DUE 11/15/19 13 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/15/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 11/15/2019$0.00255/PV ON 3,560,000.00 PV DUE 11/15/19 11/15/2019 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 626.2200 0.0000 0.000000 626.22 0.00 0.00 SHARES DUE 11/15/2019$0.00175/PV ON 357,840.10 PV DUE 11/15/19 11/15/2019 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15/21 $1 PV ON 7843.5300 0.0000 0.000000 7,843.53 0.00 0.00 SHARES DUE 11/15/2019$0.00236/PV ON 3,325,884.92 PV DUE 11/15/19 11/15/2019 912828WJ5 INTEREST EARNED ON U S TREASURY NT 2.500% 5/15/24$1 PV ON 7000000.0000 0.0000 0.000000 87,500.00 0.00 0.00 SHARES DUE 11/15/2019 11/15/2019 913366EJ5 INTEREST EARNED ON UNIV OF CALIFORNIA 5.035% 5/15/21 $1 PV ON 400000.0000 0.0000 0.000000 10,070.00 0.00 0.00 SHARES DUE 11/15/2019 11/18/2019 166764BG4 INTEREST EARNED ON CHEVRON CORP 2.100% 5/16/21 $1 PV ON 2500000.0000 0.0000 0.000000 26,250.00 0.00 0.00 SHARES DUE 11/16/2019 11/18/2019 3137EAEK1 INTEREST EARNED ON F H L M C M T N 1.875%11/17/20$1 PV ON 5000000.0000 0.0000 0.000000 46,875.00 0.00 0.00 SHARES DUE 11/17/2019 11/18/2019 43814RACO INTEREST EARNED ON HONDA AUTO 1.210% 12/18/20$1 PV ON 452.2600 0.0000 0.000000 452.26 0.00 0.00 SHARES DUE 11/18/2019$0.00101/PV ON 448,520.90 PV DUE 11/18/19 11/18/2019 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 2890.5000 0.0000 0.000000 2,890.50 0.00 0.00 SHARES DUE 11/18/2019$0.00149/PV ON 1,937,764.12 PV DUE 11/18/19 11/18/2019 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 10071.8800 0.0000 0.000000 10,071.88 0.00 0.00 SHARES DUE 11/18/2019$0.00229/PV ON 4,395,000.00 PV DUE 11/18/19 11/18/2019 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 4289.2500 0.0000 0.000000 4,289.25 0.00 0.00 SHARES DUE 11/18/2019$0.00251/PV ON 1,710,000.00 PV DUE 11/18/19 11/18/2019 46625HRL6 INTEREST EARNED ON JP MORGAN CHASE CO 2.700% 5/18/23$1 PV ON 0.0000 0.000000 67,500.00 0.00 0.00 5000000.0000 SHARES DUE 11/18/2019 11/18/2019 58933YAF2 INTEREST EARNED ON MERCK CO INC 2.800% 5/18/23$1 PV ON 2000000.0000 0.0000 0.000000 28,000.00 0.00 0.00 SHARES DUE 11/18/2019 11/19/2019 62479MYK3 INTEREST EARNED ON MUFG BANK LTD NY BRAN C P 11/19/19$1 PV ON 0.0000 0.000000 60,314.29 0.00 0.00 11255000.0000 SHARES DUE 11/19/2019 11,255,000 PAR VALUE AT 100% 11/19/2019 62479MYK3 INTEREST EARNED ON MUFG BANK LTD NY BRAN C P 11/19/19$1 PV ON 0.0000 0.000000 9,967.53 0.00 0.00 1860000.0000 SHARES DUE 11/19/2019 1,860,000 PAR VALUE AT 100% 11/19/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,353,689.4600 1.000000 1,353,689.46 -1,353,689.46 0.00 11/19/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -9,917,138.8900 1.000000 9,917,138.89 -9,917,138.89 0.00 11/20/2019 36225CAZ9 INTEREST EARNED ON G N M A I I#080023 4.125%12/20/26$1 PV ON 52.1500 0.0000 0.000000 52.15 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 11/20/2019 36225CC20 INTEREST EARNED ON G N M A I I#080088 3.875% 6/20/27$1 PV ON 48.1500 0.0000 0.000000 48.15 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 11/20/2019 36225CNM4 INTEREST EARNED ON G N M A 1 I#080395 3.875% 4/20/30$1 PV ON 20.7300 0.0000 0.000000 20.73 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 11/20/2019 36225CN28 INTEREST EARNED ON G N M A 1 1#080408 3.875% 5/20/30$1 PV ON 159.5800 0.0000 0.000000 159.58 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 14 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/20/2019 36225DCB8 INTEREST EARNED ON G N M A 1 1#080965 3.250% 7/20/34$1 PV ON 120.7800 0.0000 0.000000 120.78 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 11/20/2019 747525AD5 INTEREST EARNED ON QUALCOMM INC 2.250% 5/20/20$1 PV ON 2000000.0000 0.0000 0.000000 22,500.00 0.00 0.00 SHARES DUE 11/20/2019 11/20/2019 747525AD5 INTEREST EARNED ON QUALCOMM INC 2.250% 5/20/20$1 PV ON 5000000.0000 0.0000 0.000000 56,250.00 0.00 0.00 SHARES DUE 11/20/2019 11/21/2019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 11/21/2019$0.00246/PV ON 3,970,000.00 PV DUE 11/21/19 11/25/2019 03215PFN4 INTEREST EARNED ON AMRESCO 2.85486% 6/25/29$1 PV ON 283.1600 0.0000 0.000000 283.16 0.00 0.00 SHARES DUE 11/25/2019$0.00238/PV ON 119,021.64 PV DUE 11/25/19 11/25/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 1510.5900 0.0000 0.000000 1,510.59 0.00 0.00 SHARES DUE 11/25/2019$0.00354/PV ON 426,420.49 PV DUE 11/25/19 11/25/2019 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 3679.9700 0.0000 0.000000 3,679.97 0.00 0.00 SHARES DUE 11/25/2019$0.00542/PV ON 679,378.90 PV DUE 11/25/19 11/25/2019 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 54.6900 SHARES 0.0000 0.000000 54.69 0.00 0.00 DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 405.4400 0.0000 0.000000 405.44 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400% 11/01/20$1 PV ON 985.5200 0.0000 0.000000 985.52 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 379.2800 0.0000 0.000000 379.28 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000% 10/01/33$1 PV ON 7.3800 SHARES 0.0000 0.000000 7.38 0.00 0.00 DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 651.8100 0.0000 0.000000 651.81 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31406XWT5 INTEREST EARNED ON F N M A#823358 4.722% 2/01/35$1 PV ON 428.2400 0.0000 0.000000 428.24 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 77.4900 SHARES 0.0000 0.000000 77.49 0.00 0.00 DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 739.4700 0.0000 0.000000 739.47 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 36.8200 0.0000 0.000000 36.82 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 60.5300 0.0000 0.000000 60.53 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31397QREO INTEREST EARNED ON F N M A GTD REMIC 2.825% 2/25/41 $1 PV ON 383.6300 0.0000 0.000000 383.63 0.00 0.00 SHARES DUE 11/25/2019$0.00209/PV ON 183,940.22 PV DUE 11/25/19 11/26/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4368.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 15 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/26/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4368.00 UNITS 0.0000 0.000000 0.00 4,368.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/26/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4368.0000 UNITS 4,368.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/26/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4368.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/27/2019 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANC OF CALIF 11/27/19 0.0000 0.000000 10,000,000.00 0.00 0.00 11/27/2019 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANC OF CALIF 11/27/19 0.0000 0.000000 6,000,000.00 0.00 0.00 11/29/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,970,333.0000 1.000000 10,970,333.00 -10,970,333.00 0.00 12/02/2019 3135GOF73 INTEREST EARNED ON F N M A 1.500% 11/30/20$1 PV ON 7500000.0000 0.0000 0.000000 56,250.00 0.00 0.00 SHARES DUE 11/30/2019 12/02/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 2,788.50 0.00 0.00 11/30/2019 INTEREST FROM 11/1/19 TO 11/30/19 12/02/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 3,676.29 0.00 0.00 11/30/2019 INTEREST FROM 11/1/19 TO 11/30/19 12/02/2019 73358WAG9 INTEREST EARNED ON PORT AUTH NY NJ 5.309% 12/01/19$1 PV ON 2440000.0000 0.0000 0.000000 64,769.80 0.00 0.00 SHARES DUE 12/1/2019 12/02/2019 912828XE5 INTEREST EARNED ON U S TREASURY NT 1.500% 5/31/20$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 11/30/2019 12/02/2019 912828G61 INTEREST EARNED ON U S TREASURY NT 1.500%11/30/19$1 PV ON 2500000.0000 0.0000 0.000000 18,750.00 0.00 0.00 SHARES DUE 11/30/2019 12/02/2019 912828R69 INTEREST EARNED ON U S TREASURY NT 1.625% 5/31/23$1 PV ON 5000000.0000 0.0000 0.000000 40,625.00 0.00 0.00 SHARES DUE 11/30/2019 12/02/2019 9128281-165 INTEREST EARNED ON U S TREASURY NT 1.750%11/30/21 $1 PV ON 7000000.0000 0.0000 0.000000 61,250.00 0.00 0.00 SHARES DUE 11/30/2019 12/02/2019 912828M80 INTEREST EARNED ON U S TREASURY NT 2.000%11/30/22$1 PV ON 8000000.0000 0.0000 0.000000 80,000.00 0.00 0.00 SHARES DUE 11/30/2019 12/02/2019 9128281-157 INTEREST EARNED ON U S TREASURY NT 2.125%11/30/23$1 PV ON 0.0000 0.000000 159,375.00 0.00 0.00 15000000.0000 SHARES DUE 11/30/2019 12/06/2019 94988J5G8 INTEREST EARNED ON WELLS FARGO MTN 2.150% 12/06/19$1 PV ON 500000.0000 0.0000 0.000000 5,375.00 0.00 0.00 SHARES DUE 12/6/2019 ACCRUED INTEREST ON 12/6/2019 MATURITY 12/09/2019 313383QR5 INTEREST EARNED ON F H L B DEB 3.250% 6/09/23$1 PV ON 5000000.0000 0.0000 0.000000 81,250.00 0.00 0.00 SHARES DUE 12/9/2019 12/09/2019 3130AOF70 INTEREST EARNED ON F H L B DEB 3.375% 12/08/23$1 PV ON 10000000.0000 0.0000 0.000000 168,750.00 0.00 0.00 SHARES DUE 12/8/2019 12/09/2019 69353RFL7 INTEREST EARNED ON PNC BANK NA MTN 3.500% 6/08/23$1 PV ON 5000000.0000 0.0000 0.000000 87,500.00 0.00 0.00 SHARES DUE 12/8/2019 12/09/2019 912828YH7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 9/30/24 0.0000 0.000000 -17,213.11 0.00 0.00 12/09/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,629,322.4900 1.000000 5,629,322.49 -5,629,322.49 0.00 16 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/11/2019 313379RB7 INTEREST EARNED ON F H L B DEB 1.875% 6/11/21 $1 PV ON 4000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 12/11/2019 12/12/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 11856.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 12/12/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 11856.00 UNITS 0.0000 0.000000 0.00 11,856.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 12/12/2019 313383HU8 INTEREST EARNED ON F H L B DEB 1.750% 6/12/20$1 PV ON 5000000.0000 0.0000 0.000000 43,750.00 0.00 0.00 SHARES DUE 12/12/2019 12/12/2019 89114QCA4 INTEREST EARNED ON TORONTO DOMINION MTN 2.650% 6/12/24$1 PV ON 0.0000 0.000000 39,750.00 0.00 0.00 3000000.0000 SHARES DUE 12/12/2019 12/12/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 11856.0000 11,856.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 12/12/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 11856.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 12/13/2019 9128283J7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.125% 11/30/24 0.0000 0.000000 -5,660.86 0.00 0.00 12/13/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,634,860.0800 1.000000 7,634,860.08 -7,634,860.08 0.00 12/16/2019 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15/22$1 PV ON 10084.2400 0.0000 0.000000 10,084.24 0.00 0.00 SHARES DUE 12/15/2019$0.00161/PV ON 6,270,000.00 PV DUE 12/15/19 12/16/2019 3130A1XJ2 INTEREST EARNED ON F H L B 2.875% 6/14/24$1 PV ON 11110000.0000 0.0000 0.000000 159,706.25 0.00 0.00 SHARES DUE 12/14/2019 12/16/2019 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4.678% 1/01/28$1 PV ON 7.0300 SHARES 0.0000 0.000000 7.03 0.00 0.00 DUE 12/15/2019 OCTOBER FHLMC DUE 12/15/19 12/16/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.027% 8/15/32$1 PV ON 24.0100 0.0000 0.000000 24.01 0.00 0.00 SHARES DUE 12/15/2019$0.00336/PV ON 7,155.25 PV DUE 12/15/19 12/16/2019 43815NABO INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22$1 PV ON 5589.1500 0.0000 0.000000 5,589.15 0.00 0.00 SHARES DUE 12/15/2019$0.00158/PV ON 3,530,000.00 PV DUE 12/15/19 12/16/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 534.3600 0.0000 0.000000 534.36 0.00 0.00 SHARES DUE 12/15/2019$0.00152/PV ON 352,321.54 PV DUE 12/15/19 12/16/2019 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22$1 PV ON 5320.0000 0.0000 0.000000 5,320.00 0.00 0.00 SHARES DUE 12/15/2019$0.00190/PV ON 2,800,000.00 PV DUE 12/15/19 12/16/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2665.0400 0.0000 0.000000 2,665.04 0.00 0.00 SHARES DUE 12/15/2019$0.00222/PV ON 1,202,272.32 PV DUE 12/15/19 12/16/2019 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 7162.7200 0.0000 0.000000 7,162.72 0.00 0.00 SHARES DUE 12/15/2019$0.00238/PV ON 3,015,882.88 PV DUE 12/15/19 12/16/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22$1 PV ON 0.0000 0.000000 11,883.67 0.00 0.00 11883.6700 SHARES DUE 12/15/2019$0.00257/PV ON 4,630,000.00 PV DUE 12/15/19 12/16/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 111.9100 0.0000 0.000000 111.91 0.00 0.00 SHARES DUE 12/15/2019$0.00110/PV ON 101,736.92 PV DUE 12/15/19 12/16/2019 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21 $1 PV ON 2503.5200 0.0000 0.000000 2,503.52 0.00 0.00 SHARES DUE 12/15/2019$0.00146/PV ON 1,716,703.80 PV DUE 12/15/19 17 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/16/2019 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24$1 PV ON 6730.8700 0.0000 0.000000 6,730.87 0.00 0.00 SHARES DUE 12/15/2019$0.00161/PV ON 4,185,000.00 PV DUE 12/15/19 12/16/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 12/15/2019$0.00255/PV ON 3,560,000.00 PV DUE 12/15/19 12/16/2019 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 54.6600 0.0000 0.000000 54.66 0.00 0.00 SHARES DUE 12/15/2019$0.00175/PV ON 31,233.00 PV DUE 12/15/19 12/16/2019 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15/21 $1 PV ON 7141.0300 0.0000 0.000000 7,141.03 0.00 0.00 SHARES DUE 12/15/2019$0.00236/PV ON 3,027,995.80 PV DUE 12/15/19 12/18/2019 43814RACO INTEREST EARNED ON HONDA AUTO 1.210% 12/18/20$1 PV ON 337.9400 0.0000 0.000000 337.94 0.00 0.00 SHARES DUE 12/18/2019$0.00101/PV ON 335,148.93 PV DUE 12/18/19 12/18/2019 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 2631.6500 0.0000 0.000000 2,631.65 0.00 0.00 SHARES DUE 12/18/2019$0.00149/PV ON 1,764,236.43 PV DUE 12/18/19 12/18/2019 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 9485.2800 0.0000 0.000000 9,485.28 0.00 0.00 SHARES DUE 12/18/2019$0.00229/PV ON 4,139,028.61 PV DUE 12/18/19 12/18/2019 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 4289.2500 0.0000 0.000000 4,289.25 0.00 0.00 SHARES DUE 12/18/2019$0.00251/PV ON 1,710,000.00 PV DUE 12/18/19 12/19/2019 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANC OF CALIF 12/19/19 0.0000 0.000000 97,000,000.00 0.00 0.00 12/19/2019 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANC OF CALIF 12/19/19 0.0000 0.000000 38,000,000.00 0.00 0.00 12/19/2019 3137EAEN5 INTEREST EARNED ON F H L M C 2.750% 6/19/23$1 PV ON 10000000.0000 0.0000 0.000000 137,500.00 0.00 0.00 SHARES DUE 12/19/2019 12/19/2019 06367BDS5 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF MONTREAL C D 2.000% 0.0000 0.000000 -55.56 0.00 0.00 3/18/20 12/20/2019 36225CAZ9 INTEREST EARNED ON G N M A 1 1#080023 4.125%12/20/26$1 PV ON 50.2100 0.0000 0.000000 50.21 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 36225CC20 INTEREST EARNED ON G N M A 1 1#080088 3.875% 6/20/27$1 PV ON 40.4000 0.0000 0.000000 40.40 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 36225CNM4 INTEREST EARNED ON G N M A 1 1#080395 3.875% 4/20/30$1 PV ON 20.5900 0.0000 0.000000 20.59 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 36225CN28 INTEREST EARNED ON G N M A 1 1#080408 3.875% 5/20/30$1 PV ON 156.0500 0.0000 0.000000 156.05 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 36225DCB8 INTEREST EARNED ON G N M A 1 1#080965 3.250% 7/20/34$1 PV ON 119.8700 0.0000 0.000000 119.87 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 06367BDS5 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF MONTREAL C D 2.000% 0.0000 0.000000 -888.89 0.00 0.00 3/18/20 12/20/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,683,452.7800 1.000000 10,683,452.78 -10,683,452.78 0.00 12/20/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,001,278.1900 1.000000 8,001,278.19 -8,001,278.19 0.00 12/23/2019 06417G5Q7 INTEREST EARNED ON BANK OF NOVA C D 2.610% 12/23/19$1 PV ON 0.0000 0.000000 46,023.00 0.00 0.00 2300000.0000 SHARES DUE 12/23/2019 INTEREST ON 12/23/19 MATURITY 12/23/2019 313500035 INTEREST EARNED ON F N M A 2.750% 6/22/21 $1 PV ON 7500000.0000 0.0000 0.000000 103,125.00 0.00 0.00 SHARES DUE 12/22/2019 18 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/23/2019 3135GOD75 INTEREST EARNED ON F N M A DEB 1.500% 6/22/20$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 12/22/2019 12/23/2019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 12/21/2019$0.00246/PV ON 3,970,000.00 PV DUE 12/21/19 12/23/2019 89114M2Z9 PAID ACCRUED INTEREST ON PURCHASE OF TORONTO DOMINION C D 2.200% 0.0000 0.000000 -18,211.11 0.00 0.00 1/23/20 12/23/2019 912828VJ6 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.875% 6/30/20 0.0000 0.000000 -134,510.87 0.00 0.00 12/23/2019 912828357 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 1/31/20 0.0000 0.000000 -39,402.17 0.00 0.00 12/23/2019 912828357 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 1/31/20 0.0000 0.000000 -39,402.17 0.00 0.00 12/23/2019 912828357 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 1/31/20 0.0000 0.000000 -39,402.17 0.00 0.00 12/23/2019 912828VV9 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.125% 8/31/20 0.0000 0.000000 -99,828.30 0.00 0.00 12/23/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -60,558,044.9200 1.000000 60,558,044.92 -60,558,044.92 0.00 12/23/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,972,473.7600 1.000000 1,972,473.76 -1,972,473.76 0.00 12/23/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,890,970.7200 1.000000 4,890,970.72 -4,890,970.72 0.00 12/24/2019 166764AH3 INTEREST EARNED ON CHEVRON CORP 3.191% 6/24/23$1 PV ON 3500000.0000 0.0000 0.000000 55,842.50 0.00 0.00 SHARES DUE 12/24/2019 12/24/2019 90331HNB5 INTEREST EARNED ON US BANK MTN 2.000% 1/24/20$1 PV ON 2000000.0000 0.0000 0.000000 16,666.60 0.00 0.00 SHARES DUE 12/24/2019 12/24/2019 912828YH7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 9/30/24 0.0000 0.000000 -27,868.85 0.00 0.00 12/24/2019 9128281-57 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.750% 9/30/22 0.0000 0.000000 -28,449.45 0.00 0.00 12/24/2019 912828357 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 1/31/20 0.0000 0.000000 -39,673.91 0.00 0.00 12/24/2019 9128283,17 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.125% 11/30/24 0.0000 0.000000 -12,540.98 0.00 0.00 12/24/2019 912828MP2 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 3.625% 2/15/20 0.0000 0.000000 -64,521.06 0.00 0.00 12/24/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,102,958.0600 1.000000 8,102,958.06 -8,102,958.06 0.00 12/24/2019 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 12/24/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -24,092,157.4100 1.000000 24,092,157.41 -24,092,157.41 0.00 12/26/2019 03215PFN4 INTEREST EARNED ON AMRESCO 2.73625% 6/25/29$1 PV ON 271.3900 0.0000 0.000000 271.39 0.00 0.00 SHARES DUE 12/26/2019$0.00228/PV ON 119,021.64 PV DUE 12/26/19 12/26/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 753.5600 0.0000 0.000000 753.56 0.00 0.00 SHARES DUE 12/25/2019$0.00354/PV ON 212,720.33 PV DUE 12/25/19 12/26/2019 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 3677.4200 0.0000 0.000000 3,677.42 0.00 0.00 SHARES DUE 12/25/2019$0.00542/PV ON 678,909.17 PV DUE 12/25/19 12/26/2019 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 54.1800 SHARES 0.0000 0.000000 54.18 0.00 0.00 DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 396.2400 0.0000 0.000000 396.24 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400% 11/01/20$1 PV ON 951.7300 0.0000 0.000000 951.73 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 19 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/26/2019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 372.6100 0.0000 0.000000 372.61 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000% 10/01/33$1 PV ON 7.3500 SHARES 0.0000 0.000000 7.35 0.00 0.00 DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 632.7500 0.0000 0.000000 632.75 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31406XWT5 INTEREST EARNED ON F N M A#823358 4.647% 2/01/35$1 PV ON 419.7300 0.0000 0.000000 419.73 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 74.0000 SHARES 0.0000 0.000000 74.00 0.00 0.00 DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 726.5600 0.0000 0.000000 726.56 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 36.1400 0.0000 0.000000 36.14 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 59.6700 0.0000 0.000000 59.67 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31397QREO INTEREST EARNED ON F N M A GTD REMIC 2.825% 2/25/41 $1 PV ON 359.4200 0.0000 0.000000 359.42 0.00 0.00 SHARES DUE 12/25/2019$0.00199/PV ON 180,610.99 PV DUE 12/25/19 12/26/2019 90331HNB5 INTEREST EARNED ON US BANK MTN 2.000% 1/24/20$1 PV ON 2000000.0000 0.0000 0.000000 0.07 0.00 0.00 SHARES DUE 12/24/2019 ADDITIONAL ACCRUED INTEREST ON 12/24/19 FULL CALL 12/26/2019 931142EK5 INTEREST EARNED ON WALMART INC 3.400% 6/26/23$1 PV ON 3880000.0000 0.0000 0.000000 65,960.00 0.00 0.00 SHARES DUE 12/26/2019 12/26/2019 9128281-32 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 8/31/20 0.0000 0.000000 -22,098.21 0.00 0.00 12/26/2019 912828XY1 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.500% 6/30/20 0.0000 0.000000 -60,801.63 0.00 0.00 12/26/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,095,985.7800 1.000000 10,095,985.78 -10,095,985.78 0.00 12/27/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13312.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 12/27/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13312.00 UNITS 0.0000 0.000000 0.00 13,312.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 12/27/2019 02665WCZ2 INTEREST EARNED ON AMERICAN HONDA MTN 2.400% 6/27/24$1 PV ON 0.0000 0.000000 14,628.00 0.00 0.00 1219000.0000 SHARES DUE 12/27/2019 12/27/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13312.0000 13,312.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 12/27/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13312.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 12/31/2019 912828XW5 INTEREST EARNED ON U S TREASURY NT 1.750% 6/30/22$1 PV ON 5000000.0000 0.0000 0.000000 43,750.00 0.00 0.00 SHARES DUE 12/31/2019 12/31/2019 912828VJ6 INTEREST EARNED ON U S TREASURY NT 1.875% 6/30/20$1 PV ON 0.0000 0.000000 140,625.00 0.00 0.00 15000000.0000 SHARES DUE 12/31/2019 20 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/31/2019 912828XX3 INTEREST EARNED ON U S TREASURY NT 2.000% 6/30/24$1 PV ON 5000000.0000 0.0000 0.000000 50,000.00 0.00 0.00 SHARES DUE 12/31/2019 12/31/2019 912828N30 INTEREST EARNED ON U S TREASURY NT 2.125%12/31/22$1 PV ON 5000000.0000 0.0000 0.000000 53,125.00 0.00 0.00 SHARES DUE 12/31/2019 12/31/2019 912828XY1 INTEREST EARNED ON U S TREASURY NT 2.500% 6/30/20$1 PV ON 5000000.0000 0.0000 0.000000 62,500.00 0.00 0.00 SHARES DUE 12/31/2019 TOTAL OTHER TRANSACTIONS -192,587,902.7600 331,462,539.07 -192,593,183.34 0.00 21 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP ld Explanation Units Price Net Cash Amt Cost Gain/Loss ACQUISITIONS 10/02/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,168.7300 1.000000 -5,168.73 5,168.73 0.00 10/02/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,567,929.1900 1.000000 -7,567,929.19 7,567,929.19 0.00 10/03/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,650,000.0000 1.000000 -1,650,000.00 1,650,000.00 0.00 10/03/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,280.5800 1.000000 -5,280.58 5,280.58 0.00 10/07/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 46,875.0000 1.000000 -46,875.00 46,875.00 0.00 10/08/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,250,000.0000 1.000000 -1,250,000.00 1,250,000.00 0.00 10/10/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 36,250.0000 1.000000 -36,250.00 36,250.00 0.00 10/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,250,000.0000 1.000000 -1,250,000.00 1,250,000.00 0.00 10/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,004,126.1100 1.000000 -1,004,126.11 1,004,126.11 0.00 10/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,177,326.8200 1.000000 -1,177,326.82 1,177,326.82 0.00 10/17/2019 06406HCZO PURCHASED PAR VALUE OF BANK OF NY MELLO MTN 2.150% 2/24/20/GOLDMAN 500,000.0000 1.000610 -500,305.00 500,305.00 0.00 SACHS&CO.LLC/500,000 PAR VALUE AT 100.061 % 10/17/2019 90331HNB5 PURCHASED PAR VALUE OF US BANK MTN 2.000% 1/24/20/GOLDMAN SACHS 2,000,000.0000 1.000120 -2,000,240.00 2,000,240.00 0.00 &CO.LLC/2,000,000 PAR VALUE AT 100.012% 10/18/2019 69372AAF9 PURCHASED PAR VALUE OF PACCAR FINANCIAL CORP C P 1/15/20/MIZUHO 1,100,000.0000 0.995426 -1,094,969.03 1,094,969.03 0.00 SECURITIES USA FXD INC/1,100,000 PAR VALUE AT 99.54263909% 10/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,500,000.0000 1.000000 -1,500,000.00 1,500,000.00 0.00 10/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 310,745.2800 1.000000 -310,745.28 310,745.28 0.00 10/21/2019 78012KC62 PURCHASED PAR VALUE OF ROYAL BANK MTN 2.125% 3/02/20/RBC CAPITAL 2,000,000.0000 1.000670 -2,001,340.00 2,001,340.00 0.00 MARKETS,LLC/2,000,000 PAR VALUE AT 100.067% 10/21/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 11,733.7400 1.000000 -11,733.74 11,733.74 0.00 10/23/2019 65479JAD5 PURCHASED PAR VALUE OF NISSAN AUTO 1.940% 7/15/24/MIZUHO 4,185,000.0000 0.999947 -4,184,779.03 4,184,779.03 0.00 SECURITIES USA FXD INC/4,185,000 PAR VALUE AT 99.99471995% 10/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 31,447.1800 1.000000 -31,447.18 31,447.18 0.00 10/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 234,968.9500 1.000000 -234,968.95 234,968.95 0.00 10/31/2019 912796RY7 PURCHASED PAR VALUE OF U S TREASURY BILL 1/30/20/NOMURA 3,000,000.0000 0.996120 -2,988,359.58 2,988,359.58 0.00 SECURITIES INTERNATIONA/3,000,000 PAR VALUE AT 99.611986% 10/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,518,750.0000 1.000000 -2,518,750.00 2,518,750.00 0.00 10/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,136,625.9000 1.000000 -5,136,625.90 5,136,625.90 0.00 11/01/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,525.0000 1.000000 -28,525.00 28,525.00 0.00 11/04/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,798.7000 1.000000 -4,798.70 4,798.70 0.00 11/04/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 76,406.8500 1.000000 -76,406.85 76,406.85 0.00 11/12/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,750.0000 1.000000 -28,750.00 28,750.00 0.00 11/12/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 186,684.3800 1.000000 -186,684.38 186,684.38 0.00 11/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,520,600.8300 1.000000 -1,520,600.83 1,520,600.83 0.00 11/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,785.3100 1.000000 -13,785.31 13,785.31 0.00 1 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 729,199.9400 1.000000 -729,199.94 729,199.94 0.00 11/19/2019 62479LDQ5 PURCHASED PAR VALUE OF MUFG BANK LTD NY BRAN C P 4/24/20/MUFG UNION 1,365,000.0000 0.991714 -1,353,689.46 1,353,689.46 0.00 BK NA/MMI/PIMS/IPA/1,365,000 PAR VALUE AT 99.17138901 % 11/19/2019 62479LDQ5 PURCHASED PAR VALUE OF MUFG BANK LTD NY BRAN C P 4/24/20/MUFG UNION 10,000,000.0000 0.991714 -9,917,138.89 9,917,138.89 0.00 BK NA/MMI/PIMS/IPA/10,000,000 PAR VALUE AT 99.1713889% 11/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,860,000.0000 1.000000 -1,860,000.00 1,860,000.00 0.00 11/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 11,255,000.0000 1.000000 -11,255,000.00 11,255,000.00 0.00 11/20/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 22,500.0000 1.000000 -22,500.00 22,500.00 0.00 11/20/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 61,084.4200 1.000000 -61,084.42 61,084.42 0.00 11/21/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 9,759.5800 1.000000 -9,759.58 9,759.58 0.00 11/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 25,993.2100 1.000000 -25,993.21 25,993.21 0.00 11/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 215,210.7500 1.000000 -215,210.75 215,210.75 0.00 11/27/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 10,000,000.0000 1.000000 -10,000,000.00 10,000,000.00 0.00 11/27/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 6,000,000.0000 1.000000 -6,000,000.00 6,000,000.00 0.00 11/29/2019 912796RY7 PURCHASED PAR VALUE OF U S TREASURY BILL 1/30/20/BOFA SECURITIES, 11,000,000.0000 0.997303 -10,970,333.00 10,970,333.00 0.00 INC./FXD INC/11,000,000 PAR VALUE AT 99.7303% 12/02/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,458,519.8000 1.000000 -5,458,519.80 5,458,519.80 0.00 12/03/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,788.5000 1.000000 -2,788.50 2,788.50 0.00 12/03/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,676.2900 1.000000 -3,676.29 3,676.29 0.00 12/06/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,375.0000 1.000000 -5,375.00 5,375.00 0.00 12/06/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 500,000.0000 1.000000 -500,000.00 500,000.00 0.00 12/09/2019 912828YH7 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 9/30/24/J.P. MORGAN 6,000,000.0000 0.991602 -5,949,609.38 5,949,609.38 0.00 SECURITIES LLC/6,000,000 PAR VALUE AT 99.16015633% 12/11/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 37,500.0000 1.000000 -37,500.00 37,500.00 0.00 12/12/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 83,500.0000 1.000000 -83,500.00 83,500.00 0.00 12/13/2019 9128283J7 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 11/30/24/GOLDMAN 7,500,000.0000 1.017227 -7,629,199.22 7,629,199.22 0.00 SACHS&CO.LLC/7,500,000 PAR VALUE AT 101.72265627% 12/16/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,088,240.6500 1.000000 -1,088,240.65 1,088,240.65 0.00 12/16/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 31,233.0000 1.000000 -31,233.00 31,233.00 0.00 12/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 637,012.6300 1.000000 -637,012.63 637,012.63 0.00 12/19/2019 06367BDS5 PURCHASED PAR VALUE OF BANK OF MONTREAL C D 2.000% 3/18/20/RBC CAPITAL 1,000,000.0000 1.000049 -1,000,049.48 1,000,049.48 0.00 MARKETS,LLC/1,000,000 PAR VALUE AT 100.004948% 12/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 95,999,894.9600 1.000000 -95,999,894.96 95,999,894.96 0.00 12/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 137,500.0000 1.000000 -137,500.00 137,500.00 0.00 12/19/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 38,000,000.0000 1.000000 -38,000,000.00 38,000,000.00 0.00 12/20/2019 06367BDS5 PURCHASED PAR VALUE OF BANK OF MONTREAL C D 2.000% 3/18/20/RBC CAPITAL 8,000,000.0000 1.000049 -8,000,389.30 8,000,389.30 0.00 MARKETS,LLC/8,000,000 PAR VALUE AT 100.00486625% 2of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CLISIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/20/2019 313384RU5 PURCHASED PAR VALUE OF F H L B DISC NTS 1/14/20/NOMURA SECURITIES 1,200,000.0000 0.998910 -1,198,691.67 1,198,691.67 0.00 INTERNATIONA/1,200,000 PAR VALUE AT 99.8909725% 12/20/2019 313384SD2 PURCHASED PAR VALUE OF F H L B DISC NTS 1/23/20/BARCLAYS CAPITAL 5,000,000.0000 0.998517 -4,992,586.11 4,992,586.11 0.00 INC. FIXED IN/5,000,000 PAR VALUE AT 99.8517222% 12/20/2019 313384SK6 PURCHASED PAR VALUE OF F H L B DISC NTS 1/29/20/JEFFERIES 4,500,000.0000 0.998261 -4,492,175.00 4,492,175.00 0.00 LLC/4,500,000 PAR VALUE AT 99.82611111 % 12/20/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,848.7300 1.000000 -3,848.73 3,848.73 0.00 12/23/2019 89114M2Z9 PURCHASED PAR VALUE OF TORONTO DOMINION C D 2.200% 1/23/20/GOLDMAN 2,000,000.0000 1.000143 -2,000,285.65 2,000,285.65 0.00 SACHS&CO.LLC/2,000,000 PAR VALUE AT 100.0142825% 12/23/2019 912796RT8 PURCHASED PAR VALUE OF U S TREASURY BILL 1/02/20/CITIGROUP GLOBAL 7,500,000.0000 0.999587 -7,496,905.21 7,496,905.21 0.00 MARKETS INC./7,500,000 PAR VALUE AT 99.95873613% 12/23/2019 912796WM7 PURCHASED PAR VALUE OF U S TREASURY BILL 1/07/20/NOMURA 7,500,000.0000 0.999376 -7,495,320.31 7,495,320.31 0.00 SECURITIES INTERNATIONA/7,500,000 PAR VALUE AT 99.93760413% 12/23/2019 912796TH2 PURCHASED PAR VALUE OF U S TREASURY BILL 3/05/20/WELLS FARGO 7,500,000.0000 0.996893 -7,476,699.31 7,476,699.31 0.00 SECURITIES, LLC/7,500,000 PAR VALUE AT 99.68932413% 12/23/2019 912828VJ6 PURCHASED PAR VALUE OF U S TREASURY NT 1.875% 6/30/20/WELLS FARGO 15,000,000.0000 1.001484 -15,022,265.63 15,022,265.63 0.00 SECURITIES, LLC/15,000,000 PAR VALUE AT 100.14843753% 12/23/2019 912828357 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 1/31/20/CITIGROUP 5,000,000.0000 1.000391 -5,001,953.13 5,001,953.13 0.00 GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 100.0390626% 12/23/2019 912828357 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 1/31/20/CITIGROUP 5,000,000.0000 1.000391 -5,001,953.13 5,001,953.13 0.00 GLOBAL MARKETS INC./5,000,000 PAR VALUE AT 100.0390626% 12/23/2019 912828357 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 1/31/20/NOMURA 5,000,000.0000 1.000391 -5,001,953.13 5,001,953.13 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.0390626% 12/23/2019 912828VV9 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 8/31/20/NOMURA 15,000,000.0000 1.003320 -15,049,804.69 15,049,804.69 0.00 SECURITIES INTERNATIONA/15,000,000 PAR VALUE AT 100.33203127% 12/24/2019 06367BED7 PURCHASED PAR VALUE OF BANK OF MONTREAL C D 1.890% 5/21/20/BMO 1,000,000.0000 1.000000 -1,000,000.00 1,000,000.00 0.00 CAPITAL MARKETS CORP/BONDS/1,000,000 PAR VALUE AT 100% 12/24/2019 912828YH7 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 9/30/24/MORGAN 8,000,000.0000 0.988711 -7,909,687.50 7,909,687.50 0.00 STANLEY&CO. LLC/8,000,000 PAR VALUE AT 98.87109375% 12/24/2019 9128281-57 PURCHASED PAR VALUE OF U S TREASURY NT 1.750% 9/30/22/BOFA 7,000,000.0000 1.002109 -7,014,765.63 7,014,765.63 0.00 SECURITIES, INC./FXD INC/7,000,000 PAR VALUE AT 100.21093757% 12/24/2019 912828357 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 1/31/20/NOMURA 5,000,000.0000 1.000352 -5,001,757.81 5,001,757.81 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.0351562% 12/24/2019 9128283J7 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 11/30/24/GOLDMAN 9,000,000.0000 1.017188 -9,154,687.50 9,154,687.50 0.00 SACHS&CO.LLC/9,000,000 PAR VALUE AT 101.71875% 12/24/2019 912828MP2 PURCHASED PAR VALUE OF U S TREASURY NT 3.625% 2/15/20/NOMURA 5,000,000.0000 1.002734 -5,013,671.88 5,013,671.88 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.2734376% 12/26/2019 9128281-32 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 8/31/20/NOMURA 5,000,000.0000 0.998203 -4,991,015.63 4,991,015.63 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99.8203126% 3of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/26/2019 912828XY1 PURCHASED PAR VALUE OF U S TREASURY NT 2.500% 6/30/20/NOMURA 5,000,000.0000 1.004414 -5,022,070.31 5,022,070.31 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.4414062% 12/26/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 0.0700 1.000000 -0.07 0.07 0.00 12/26/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 156,854.3400 1.000000 -156,854.34 156,854.34 0.00 12/26/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 100,634.4500 1.000000 -100,634.45 100,634.45 0.00 12/27/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,628.0000 1.000000 -14,628.00 14,628.00 0.00 12/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 203,125.0000 1.000000 -203,125.00 203,125.00 0.00 12/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 146,875.0000 1.000000 -146,875.00 146,875.00 0.00 TOTAL ACQUISITIONS 381,236,732.8700 -381,315,383.47 381,315,383.47 0.00 DISPOSITIONS 10/02/2019 3137EADM8 MATURED PAR VALUE OF F H L M C M T N 1.250%10/02/19 7,500,000 PAR VALUE -7,500,000.0000 1.000000 7,500,000.00 -7,399,650.00 100,350.00 AT 100% 10/03/2019 912796SL4 MATURED PAR VALUE OF U S TREASURY BILL 10/03/19 1,650,000 PAR VALUE -1,650,000.0000 1.000000 1,646,687.63 -1,646,687.63 0.00 AT 100% 10/08/2019 912796VY2 MATURED PAR VALUE OF U S TREASURY BILL 10/08/19 1,250,000 PAR VALUE -1,250,000.0000 1.000000 1,249,517.42 -1,249,517.42 0.00 AT 100% 10/15/2019 912796VZ9 MATURED PAR VALUE OF U S TREASURY BILL 10/15/19 1,250,000 PAR VALUE -1,250,000.0000 1.000000 1,249,059.90 -1,249,059.90 0.00 AT 100% 10/15/2019 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 4.677% 1/01/28 SEPTEMBER -24.9900 0.000000 24.99 -24.38 0.61 FHLMC DUE 10/15/19 10/15/2019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.016% 8/15/32 -386.6500 0.000000 386.65 -387.05 -0.40 10/15/2019 47788NADO PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.490% 5/15/23 CMO FINAL -1,003,712.9300 0.000000 1,003,712.93 -987,088.93 16,624.00 PAYDOWN 10/15/2019 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 -42,196.1900 9.824872 42,196.19 -42,193.10 3.09 10/15/2019 47788CAB8 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.420%10/15/20 -179,120.5700 2.314487 179,120.57 -178,756.74 363.83 10/15/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 -74,892.5400 5.535560 74,892.54 -74,292.81 599.73 10/15/2019 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -175,390.0800 2.363715 175,390.08 -172,670.16 2,719.92 10/15/2019 89238BAB8 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100% 10/15/20 -325,799.3400 1.272477 325,799.34 -325,766.04 33.30 10/15/2019 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -289,115.0800 1.433935 289,115.08 -289,088.83 26.25 10/18/2019 96130AAK4 MATURED PAR VALUE OF WESTPAC BKING C D 2.970%10/18/19 1,500,000 PAR -1,500,000.0000 1.000000 1,500,000.00 -1,503,302.80 -3,302.80 VALUE AT 100% 10/18/2019 43814RACO PAID DOWN PAR VALUE OF HONDA AUTO 1.210% 12/18/20 -115,199.0400 0.000000 115,199.04 -113,934.55 1,264.49 10/18/2019 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -177,461.4800 0.000000 177,461.48 -174,647.05 2,814.43 10/21/2019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I#080023 4.125%12/20/26 SEPTEMBER -176.3500 0.000000 176.35 -179.26 -2.91 GNMA DUE 10/20/19 10/21/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A 1 1#080088 3.875% 6/20/27 SEPTEMBER GNMA -186.0100 0.000000 186.01 -190.08 -4.07 DUE 10/20/19 4of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CLISIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/21/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 1 1#080395 3.875% 4/20/30 SEPTEMBER GNMA -103.2800 0.000000 103.28 -102.34 0.94 DUE 10/20/19 10/21/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 1 1#080408 3.875% 5/20/30 SEPTEMBER GNMA -337.5300 0.000000 337.53 -334.10 3.43 DUE 10/20/19 10/21/2019 36225DCB8 PAID DOWN PAR VALUE OF G N M A 1 1#080965 3.750% 7/20/34 SEPTEMBER GNMA -746.0600 0.000000 746.06 -745.59 0.47 DUE 10/20/19 10/25/2019 03215PFN4 PAID DOWN PAR VALUE OF AMRESCO 2.95841% 6/25/29 -4,106.2100 0.000000 4,106.21 -3,083.51 1,022.70 10/25/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 -232,634.2500 3.215297 232,634.25 -245,828.98 -13,194.73 10/25/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -7,406.7800 0.000000 7,406.78 -8,388.18 -981.40 10/25/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 SEPTEMBER FNMA -133.7500 0.000000 133.75 -141.45 -7.70 DUE 10/25/19 10/25/2019 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 SEPTEMBER FNMA -1,579.8500 0.000000 1,579.85 -1,698.34 -118.49 DUE 10/25/19 10/25/2019 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400%11/01/20 SEPTEMBER FNMA -748.4400 0.000000 748.44 -732.24 16.20 DUE 10/25/19 10/25/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 SEPTEMBER FNMA -1,482.5900 0.000000 1,482.59 -1,593.78 -111.19 DUE 10/25/19 10/25/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 SEPTEMBER FNMA -8.9800 0.000000 8.98 -9.65 -0.67 DUE 10/25/19 10/25/2019 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 SEPTEMBER FNMA -709.0700 0.000000 709.07 -762.25 -53.18 DUE 10/25/19 10/25/2019 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4.722% 2/01/35 SEPTEMBER FNMA -440.6000 0.000000 440.60 -437.16 3.44 DUE 10/25/19 10/25/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 SEPTEMBER FNMA -79.8800 0.000000 79.88 -85.87 -5.99 DUE 10/25/19 10/25/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 SEPTEMBER FNMA -2,690.3200 0.000000 2,690.32 -2,892.09 -201.77 DUE 10/25/19 10/25/2019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 SEPTEMBER FNMA -226.9300 0.000000 226.93 -240.00 -13.07 DUE 10/25/19 10/25/2019 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 SEPTEMBER FNMA -296.1600 0.000000 296.16 -313.22 -17.06 DUE 10/25/19 10/25/2019 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.825% 2/25/41 -2,555.4600 0.000000 2,555.46 -2,554.66 0.80 10/25/2019 78445JAA5 PAID DOWN PAR VALUE OF S L M A 3.8594% 4/25/23 -581.9100 0.000000 581.91 -579.55 2.36 10/31/2019 912828F62 MATURED PAR VALUE OF U S TREASURY NT 1.500%10/31/19 2,500,000 PAR -2,500,000.0000 1.000000 2,500,000.00 -2,486,718.75 13,281.25 VALUE AT 100% 10/31/2019 912828G61 SOLD PAR VALUE OF U S TREASURY NT 1.500% 11/30/19/NOMURA SECURITIES -5,000,000.0000 0.999805 4,999,023.44 -4,966,423.00 32,600.44 INTERNATIONA/5,000,000 PAR VALUE AT 99.9804688% 11/15/2019 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 4.678% 1/01/28 OCTOBER FHLMC -17.7400 0.000000 17.74 -17.31 0.43 DUE 11/15/19 5of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/15/2019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.016% 8/15/32 -386.6000 1,163.993792 386.60 -387.00 -0.40 11/15/2019 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 -46,876.0500 8.844008 46,876.05 -46,872.62 3.43 11/15/2019 47788CAB8 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.420%10/15/20 CMO FINAL -1,489.7400 0.000000 1,489.74 -1,486.71 3.03 PAYDOWN 11/15/2019 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -137,727.6800 3.010086 137,727.68 -137,717.78 9.90 11/15/2019 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850%12/15/21 -249,117.1200 1.664166 249,117.12 -249,105.76 11.36 11/15/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 -75,420.5600 5.496806 75,420.56 -74,816.61 603.95 11/15/2019 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -171,609.4500 2.415789 171,609.45 -168,948.16 2,661.29 11/15/2019 89238BAB8 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100% 10/15/20 -326,607.1000 1.269330 326,607.10 -326,573.72 33.38 11/15/2019 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -297,889.1200 1.391700 297,889.12 -297,862.07 27.05 11/18/2019 43814RACO PAID DOWN PAR VALUE OF HONDA AUTO 1.210% 12/18/20 -113,371.9700 0.000000 113,371.97 -112,127.53 1,244.44 11/18/2019 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -173,527.6900 0.000000 173,527.69 -170,775.65 2,752.04 11/18/2019 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -255,971.3900 0.000000 255,971.39 -255,954.91 16.48 11/19/2019 62479MYK3 MATURED PAR VALUE OF MUFG BANK LTD NY BRAN C P 11/19/19 1,860,000 PAR -1,860,000.0000 1.000000 1,850,032.47 -1,850,032.47 0.00 VALUE AT 100% 11/19/2019 62479MYK3 MATURED PAR VALUE OF MUFG BANK LTD NY BRAN C P 11/19/19 11,255,000 PAR -11,255,000.0000 1.000000 11,194,685.71 -11,194,685.71 0.00 VALUE AT 100% 11/20/2019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 1 1#080023 4.125%12/20/26 OCTOBER GNMA -566.7000 0.000000 566.70 -576.06 -9.36 DUE 11/20/19 11/20/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A 1 1#080088 3.875% 6/20/27 OCTOBER GNMA -2,399.0700 0.000000 2,399.07 -2,451.55 -52.48 DUE 11/20/19 11/20/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 1 1#080395 3.875% 4/20/30 OCTOBER GNMA -42.4600 0.000000 42.46 -42.08 0.38 DUE 11/20/19 11/20/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 1 1#080408 3.875% 5/20/30 OCTOBER GNMA -1,091.5100 0.000000 1,091.51 -1,080.42 11.09 DUE 11/20/19 11/20/2019 36225DCB8 PAID DOWN PAR VALUE OF G N M A 1 1#080965 3.250% 7/20/34 OCTOBER GNMA -333.2900 0.000000 333.29 -333.08 0.21 DUE 11/20/19 11/25/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 -213,700.1600 0.084664 213,700.16 -225,820.97 -12,120.81 11/25/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -469.7300 0.000000 469.73 -531.97 -62.24 11/25/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 OCTOBER FNMA -135.4500 0.000000 135.45 -143.25 -7.80 DUE 11/25/19 11/25/2019 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 OCTOBER FNMA -2,206.6400 0.000000 2,206.64 -2,372.14 -165.50 DUE 11/25/19 11/25/2019 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400% 11/01/20 OCTOBER FNMA -706.3800 0.000000 706.38 -691.09 15.29 DUE 11/25/19 11/25/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 OCTOBER FNMA -1,601.3200 0.000000 1,601.32 -1,721.42 -120.10 DUE 11/25/19 6of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/25/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000% 10/01/33 OCTOBER FNMA -9.0200 0.000000 9.02 -9.70 -0.68 DUE 11/25/19 11/25/2019 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 OCTOBER FNMA -4,574.2200 0.000000 4,574.22 -4,917.29 -343.07 DUE 11/25/19 11/25/2019 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4.722% 2/01/35 OCTOBER FNMA -442.5600 0.000000 442.56 -439.10 3.46 DUE 11/25/19 11/25/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 OCTOBER FNMA -836.8200 0.000000 836.82 -899.58 -62.76 DUE 11/25/19 11/25/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 OCTOBER FNMA -3,099.1200 0.000000 3,099.12 -3,331.55 -232.43 DUE 11/25/19 11/25/2019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 OCTOBER FNMA -180.2600 0.000000 180.26 -190.64 -10.38 DUE 11/25/19 11/25/2019 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 OCTOBER FNMA -229.0300 0.000000 229.03 -242.22 -13.19 DUE 11/25/19 11/25/2019 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.825% 2/25/41 -3,329.2300 0.000000 3,329.23 -3,328.19 1.04 12/02/2019 73358WAG9 MATURED PAR VALUE OF PORT AUTH NY NJ 5.309% 12/01/19 2,440,000 PAR -2,440,000.0000 1.000000 2,440,000.00 -2,507,633.89 -67,633.89 VALUE AT 100% 12/02/2019 912828G61 MATURED PAR VALUE OF U S TREASURY NT 1.500%11/30/19 2,500,000 PAR -2,500,000.0000 1.000000 2,500,000.00 -2,483,211.50 16,788.50 VALUE AT 100% 12/06/2019 94988J5G8 MATURED PAR VALUE OF WELLS FARGO MTN 2.150% 12/06/19 500,000 PAR -500,000.0000 1.000000 500,000.00 -498,425.00 1,575.00 VALUE AT 100% 12/16/2019 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 4.678% 1/01/28 NOVEMBER -10.5000 0.000000 10.50 -10.24 0.26 FHLMC DUE 12/15/19 12/16/2019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.027% 8/15/32 -381.1000 0.000000 381.10 -381.50 -0.40 12/16/2019 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 -28,285.3200 14.656796 28,285.32 -28,283.25 2.07 12/16/2019 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -89,079.4600 4.653959 89,079.46 -89,073.05 6.41 12/16/2019 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850%12/15/21 -250,228.2300 1.656776 250,228.23 -250,216.82 11.41 12/16/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 -65,825.8800 6.298012 65,825.88 -65,298.76 527.12 12/16/2019 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -153,480.3600 2.701142 153,480.36 -151,100.22 2,380.14 12/16/2019 89238BAB8 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100% 10/15/20 CMO FINAL -31,233.0000 0.000000 31,233.00 -31,229.81 3.19 PAUYDOWN 12/16/2019 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -272,353.3400 1.522185 272,353.34 -272,328.61 24.73 12/18/2019 43814RACO PAID DOWN PAR VALUE OF HONDA AUTO 1.210% 12/18/20 -106,100.0400 0.000000 106,100.04 -104,935.43 1,164.61 12/18/2019 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -164,004.9300 0.000000 164,004.93 -161,403.91 2,601.02 12/18/2019 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -350,163.5400 0.000000 350,163.54 -350,140.99 22.55 12/20/2019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 1 1#080023 4.125% 12/20/26 NOVEMBER GNMA -151.7000 0.000000 151.70 -154.21 -2.51 DUE 12/20/19 12/20/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A 1 1#080088 3.875% 6/20/27 NOVEMBER GNMA -187.2300 0.000000 187.23 -191.33 -4.10 DUE 12/20/19 7of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CLISIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/20/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 1 1#080395 3.875% 4/20/30 NOVEMBER GNMA -150.5600 0.000000 150.56 -149.19 1.37 DUE 12/20/19 12/20/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 1 1#080408 3.875% 5/20/30 NOVEMBER GNMA -1,851.6900 0.000000 1,851.69 -1,832.88 18.81 DUE 12/20/19 12/20/2019 36225DCB8 PAID DOWN PAR VALUE OF G N M A 1 1#080965 3.250% 7/20/34 NOVEMBER GNMA -1,120.4300 0.000000 1,120.43 -1,119.73 0.70 DUE 12/20/19 12/23/2019 06417G5Q7 MATURED PAR VALUE OF BANK OF NOVA C D 2.610% 12/23/19 2,300,000 PAR -2,300,000.0000 1.000000 2,300,000.00 -2,300,614.40 -614.40 VALUE AT 100% 12/24/2019 90331HNB5 FULL CALL PAR VALUE OF US BANK MTN 2.000% 1/24/20/CALLS/ -2,000,000.0000 1.000000 2,000,000.00 -2,000,240.00 -240.00 12/26/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 -156,100.7800 0.138540 156,100.78 -164,954.62 -8,853.84 12/26/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -8,230.9000 0.000000 8,230.90 -9,321.49 -1,090.59 12/26/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 NOVEMBER FNMA -137.0300 0.000000 137.03 -144.92 -7.89 DUE 12/25/19 12/26/2019 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 NOVEMBER FNMA -3,121.4100 0.000000 3,121.41 -3,355.52 -234.11 DUE 12/25/19 12/26/2019 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400%11/01/20 NOVEMBER FNMA -754.2900 0.000000 754.29 -737.97 16.32 DUE 12/25/19 12/26/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 NOVEMBER FNMA -1,647.8700 0.000000 1,647.87 -1,771.46 -123.59 DUE 12/25/19 12/26/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000% 10/01/33 NOVEMBER FNMA -9.0700 0.000000 9.07 -9.75 -0.68 DUE 12/25/19 12/26/2019 31406PQY8 PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 NOVEMBER FNMA -5,800.0600 0.000000 5,800.06 -6,235.06 -435.00 DUE 12/25/19 12/26/2019 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4.647% 2/01/35 NOVEMBER FNMA -477.4000 0.000000 477.40 -473.67 3.73 DUE 12/25/19 12/26/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 NOVEMBER FNMA -82.7800 0.000000 82.78 -88.99 -6.21 DUE 12/25/19 12/26/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 NOVEMBER FNMA -2,693.7800 0.000000 2,693.78 -2,895.81 -202.03 DUE 12/25/19 12/26/2019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 NOVEMBER FNMA -120.8900 0.000000 120.89 -127.85 -6.96 DUE 12/25/19 12/26/2019 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 NOVEMBER FNMA -468.6300 0.000000 468.63 -495.62 -26.99 DUE 12/25/19 12/26/2019 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.825% 2/25/41 -3,091.1500 0.000000 3,091.15 -3,090.18 0.97 TOTAL DISPOSITIONS -49,928,837.8300 49,852,844.40 -49,759,265.38 93,579.02 OTHER TRANSACTIONS 10/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 5,168.73 0.00 0.00 9/30/2019 INTEREST FROM 9/1/19 TO 9/30/19 8of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 10/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 21,054.19 0.00 0.00 9/30/2019 INTEREST FROM 9/1/19 TO 9/30/19 10/02/2019 3137EADM8 INTEREST EARNED ON F H L M C M T N 1.250%10/02/19$1 PV ON 7500000.0000 0.0000 0.000000 46,875.00 0.00 0.00 SHARES DUE 10/2/2019 10/03/2019 912796SL4 INTEREST EARNED ON U S TREASURY BILL 10/03/19$1 PV ON 1650000.0000 0.0000 0.000000 3,312.37 0.00 0.00 SHARES DUE 10/3/2019 1,650,000 PAR VALUE AT 100% 10/03/2019 525ESCOY6 Unknown LEHMAN BRTH HLD ESC PARTIAL LIQUIDATING DISTRIBUTION PAID @ 0.0000 0.000000 4,058.66 -4,058.66 0.00 2.02/SHARE 10/03/2019 525ESCIB7 Unknown LEHMAN BRTH MTN ES 0.00001% 1/24/13 PARTIAL LIQUIDATING 0.0000 0.000000 1,221.92 -1,221.92 0.00 DISTRIBUTION PAID @ 2.03654000 10/07/2019 3135GOT45 INTEREST EARNED ON F N M A 1.875% 4/05/22$1 PV ON 5000000.0000 0.0000 0.000000 46,875.00 0.00 0.00 SHARES DUE 10/5/2019 10/08/2019 912796VY2 INTEREST EARNED ON U S TREASURY BILL 10/08/19$1 PV ON 1250000.0000 0.0000 0.000000 482.58 0.00 0.00 SHARES DUE 10/8/2019 1,250,000 PAR VALUE AT 100% 10/10/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 416.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 10/10/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 416.00 UNITS 0.0000 0.000000 0.00 416.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 10/10/2019 02665WCQ2 INTEREST EARNED ON AMERICAN HONDA MTN 3.625% 10/10/23$1 PV ON 0.0000 0.000000 36,250.00 0.00 0.00 2000000.0000 SHARES DUE 10/10/2019 10/10/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 416.0000 UNITS 416.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 10/10/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 416.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 10/15/2019 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15/22$1 PV ON 10084.2400 0.0000 0.000000 10,084.24 0.00 0.00 SHARES DUE 10/15/2019$0.00161/PV ON 6,270,000.00 PV DUE 10/15/19 10/15/2019 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4.677% 1/01/28$1 PV ON 7.1900 0.0000 0.000000 7.19 0.00 0.00 SHARES DUE 10/15/2019 AUGUST FHLMC DUE 10/15/19 10/15/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.016% 8/15/32$1 PV ON 26.5300 0.0000 0.000000 26.53 0.00 0.00 SHARES DUE 10/15/2019$0.00335/PV ON 7,928.50 PV DUE 10/15/19 10/15/2019 43815NABO INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22$1 PV ON 5589.1700 0.0000 0.000000 5,589.17 0.00 0.00 SHARES DUE 10/15/2019$0.00158/PV ON 3,530,000.00 PV DUE 10/15/19 10/15/2019 24422EUM9 INTEREST EARNED ON JOHN DEERE MTN 3.650% 10/12/23$1 PV ON 0.0000 0.000000 22,812.50 0.00 0.00 1250000.0000 SHARES DUE 10/12/2019 10/15/2019 47788NADO INTEREST EARNED ON JOHN DEERE OWNER 1.490% 5/15/23$1 PV ON 1246.2800 0.0000 0.000000 1,246.28 0.00 0.00 SHARES DUE 10/15/2019$0.00124/PV ON 1,003,712.93 PV DUE 10/15/19 10/15/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 669.4500 0.0000 0.000000 669.45 0.00 0.00 SHARES DUE 10/15/2019$0.00152/PV ON 441,393.78 PV DUE 10/15/19 10/15/2019 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22$1 PV ON 5320.0000 0.0000 0.000000 5,320.00 0.00 0.00 SHARES DUE 10/15/2019$0.00190/PV ON 2,800,000.00 PV DUE 10/15/19 9of21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/15/2019 47788CAB8 INTEREST EARNED ON JOHN DEERE OWNER 2.420% 10/15/20$1 PV ON 364.2300 0.0000 0.000000 364.23 0.00 0.00 SHARES DUE 10/15/2019$0.00202/PV ON 180,610.31 PV DUE 10/15/19 10/15/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2970.3400 0.0000 0.000000 2,970.34 0.00 0.00 SHARES DUE 10/15/2019$0.00222/PV ON 1,340,000.00 PV DUE 10/15/19 10/15/2019 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 7754.3800 0.0000 0.000000 7,754.38 0.00 0.00 SHARES DUE 10/15/2019$0.00238/PV ON 3,265,000.00 PV DUE 10/15/19 10/15/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22$1 PV ON 0.0000 0.000000 11,883.68 0.00 0.00 11883.6800 SHARES DUE 10/15/2019$0.00257/PV ON 4,630,000.00 PV DUE 10/15/19 10/15/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 277.2600 0.0000 0.000000 277.26 0.00 0.00 SHARES DUE 10/15/2019$0.00110/PV ON 252,050.02 PV DUE 10/15/19 10/15/2019 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21 $1 PV ON 3009.5700 0.0000 0.000000 3,009.57 0.00 0.00 SHARES DUE 10/15/2019$0.00146/PV ON 2,063,703.33 PV DUE 10/15/19 10/15/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 10/15/2019$0.00255/PV ON 3,560,000.00 PV DUE 10/15/19 10/15/2019 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 1196.3700 0.0000 0.000000 1,196.37 0.00 0.00 SHARES DUE 10/15/2019$0.00175/PV ON 683,639.44 PV DUE 10/15/19 10/15/2019 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15/21 $1 PV ON 8525.3700 0.0000 0.000000 8,525.37 0.00 0.00 SHARES DUE 10/15/2019$0.00236/PV ON 3,615,000.00 PV DUE 10/15/19 10/15/2019 912796VZ9 INTEREST EARNED ON U S TREASURY BILL 10/15/19$1 PV ON 1250000.0000 0.0000 0.000000 940.10 0.00 0.00 SHARES DUE 10/15/2019 1,250,000 PAR VALUE AT 100% 10/17/2019 06406HCZO PAID ACCRUED INTEREST ON PURCHASE OF BANK OF NY MELLO MTN 2.150% 0.0000 0.000000 -1,582.64 0.00 0.00 2/24/20 10/17/2019 90331 HNB5 PAID ACCRUED INTEREST ON PURCHASE OF US BANK MTN 2.000% 1/24/20 0.0000 0.000000 -9,222.22 0.00 0.00 10/17/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,511,349.8600 1.000000 2,511,349.86 -2,511,349.86 0.00 10/18/2019 43814RACO INTEREST EARNED ON HONDA AUTO 1.210% 12/18/20$1 PV ON 568.4200 0.0000 0.000000 568.42 0.00 0.00 SHARES DUE 10/18/2019$0.00101/PV ON 563,719.94 PV DUE 10/18/19 10/18/2019 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 3155.2100 0.0000 0.000000 3,155.21 0.00 0.00 SHARES DUE 10/18/2019$0.00149/PV ON 2,115,225.60 PV DUE 10/18/19 10/18/2019 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 10071.8800 0.0000 0.000000 10,071.88 0.00 0.00 SHARES DUE 10/18/2019$0.00229/PV ON 4,395,000.00 PV DUE 10/18/19 10/18/2019 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 4289.2500 0.0000 0.000000 4,289.25 0.00 0.00 SHARES DUE 10/18/2019$0.00251/PV ON 1,710,000.00 PV DUE 10/18/19 10/18/2019 96130AAK4 INTEREST EARNED ON WESTPAC BKING C D 2.970%10/18/19$1 PV ON 0.0000 0.000000 45,045.00 0.00 0.00 1500000.0000 SHARES DUE 10/18/2019 INTEREST ON 10/18/19 MATURITY 10/18/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,049,924.0300 1.000000 1,049,924.03 -1,049,924.03 0.00 10/21/2019 06051GFN4 INTEREST EARNED ON BANK OF AMERICA MTN 2.250% 4/21/20$1 PV ON 0.0000 0.000000 22,500.00 0.00 0.00 2000000.0000 SHARES DUE 10/21/2019 10/21/2019 36225CAZ9 INTEREST EARNED ON G N M A 1 1#080023 4.125%12/20/26$1 PV ON 52.7600 0.0000 0.000000 52.76 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 10/21/2019 36225CC20 INTEREST EARNED ON G N M A 1 1#080088 3.875% 6/20/27$1 PV ON 48.7500 0.0000 0.000000 48.75 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10/21/2019 36225CNM4 INTEREST EARNED ON G N M A 1 1#080395 3.875% 4/20/30$1 PV ON 21.0600 0.0000 0.000000 21.06 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10/21/2019 36225CN28 INTEREST EARNED ON G N M A 1 1#080408 3.875% 5/20/30$1 PV ON 160.6700 0.0000 0.000000 160.67 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10/21/2019 36225DCB8 INTEREST EARNED ON G N M A 1 1#080965 3.750% 7/20/34$1 PV ON 141.6900 0.0000 0.000000 141.69 0.00 0.00 SHARES DUE 10/20/2019 SEPTEMBER GNMA DUE 10/20/19 10/21/2019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 10/21/2019$0.00246/PV ON 3,970,000.00 PV DUE 10/21/19 10/21/2019 78012KC62 PAID ACCRUED INTEREST ON PURCHASE OF ROYAL BANK MTN 2.125% 3/02/20 0.0000 0.000000 -5,784.72 0.00 0.00 10/21/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,984,624.7200 1.000000 1,984,624.72 -1,984,624.72 0.00 10/23/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,184,779.0300 1.000000 4,184,779.03 -4,184,779.03 0.00 10/25/2019 03215PFN4 INTEREST EARNED ON AMRESCO 2.95841% 6/25/29$1 PV ON 303.5500 0.0000 0.000000 303.55 0.00 0.00 SHARES DUE 10/25/2019$0.00247/PV ON 123,127.85 PV DUE 10/25/19 10/25/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 2334.7000 0.0000 0.000000 2,334.70 0.00 0.00 SHARES DUE 10/25/2019$0.00354/PV ON 659,054.74 PV DUE 10/25/19 10/25/2019 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 3720.0900 0.0000 0.000000 3,720.09 0.00 0.00 SHARES DUE 10/25/2019$0.00542/PV ON 686,785.68 PV DUE 10/25/19 10/25/2019 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 55.1900 0.0000 0.000000 55.19 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 412.0200 0.0000 0.000000 412.02 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400% 11/01/20$1 PV ON 955.8500 0.0000 0.000000 955.85 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 385.4600 0.0000 0.000000 385.46 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000% 10/01/33$1 PV ON 7.4200 SHARES 0.0000 0.000000 7.42 0.00 0.00 DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 654.7600 0.0000 0.000000 654.76 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31406XWT5 INTEREST EARNED ON F N M A#823358 4.722% 2/01/35$1 PV ON 429.9800 0.0000 0.000000 429.98 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 77.8200 0.0000 0.000000 77.82 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 750.6800 0.0000 0.000000 750.68 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 37.6700 0.0000 0.000000 37.67 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 11 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 10/25/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 61.6400 0.0000 0.000000 61.64 0.00 0.00 SHARES DUE 10/25/2019 SEPTEMBER FNMA DUE 10/25/19 10/25/2019 31397QREO INTEREST EARNED ON F N M A GTD REMIC 2.825% 2/25/41 $1 PV ON 419.3600 0.0000 0.000000 419.36 0.00 0.00 SHARES DUE 10/25/2019$0.00225/PV ON 186,495.68 PV DUE 10/25/19 10/25/2019 78445JAA5 INTEREST EARNED ON S L M A 3.8594% 4/25/23$1 PV ON 128.7600 SHARES 0.0000 0.000000 128.76 0.00 0.00 DUE 10/25/2019$0.00965/PV ON 13,344.85 PV DUE 10/25/19 10/29/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-312.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 10/29/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-312.00 UNITS 0.0000 0.000000 0.00 -312.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 10/29/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-312.0000 UNITS -312.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 10/29/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-312.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 10/31/2019 CASH DISBURSEMENT PAID TO BANC OF CALIFORNIA OUTGOING DOMESTIC WIRE 0.0000 0.000000 -15,000,000.00 0.00 0.00 PER DIR DTD 10/29/19 10/31/2019 912828T67 INTEREST EARNED ON U S TREASURY NT 1.250%10/31/21 $1 PV ON 0.0000 0.000000 37,500.00 0.00 0.00 6000000.0000 SHARES DUE 10/31/2019 10/31/2019 9128281-99 INTEREST EARNED ON U S TREASURY NT 1.375%10/31/20$1 PV ON 0.0000 0.000000 68,750.00 0.00 0.00 10000000.0000 SHARES DUE 10/31/2019 10/31/2019 912828F62 INTEREST EARNED ON U S TREASURY NT 1.500%10/31/19$1 PV ON 0.0000 0.000000 18,750.00 0.00 0.00 2500000.0000 SHARES DUE 10/31/2019 10/31/2019 912828G61 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.500% 11/30/19 0.0000 0.000000 31,352.46 0.00 0.00 10/31/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,988,359.5800 1.000000 2,988,359.58 -2,988,359.58 0.00 10/31/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -15,000,000.0000 1.000000 15,000,000.00 -15,000,000.00 0.00 11/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 4,798.70 0.00 0.00 10/31/2019 INTEREST FROM 10/1/19 TO 10/31/19 11/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 16,477.47 0.00 0.00 10/31/2019 INTEREST FROM 10/1/19 TO 10/31/19 11/01/2019 64971M5E8 INTEREST EARNED ON NEW YORK CITY NY 4.075% 11/01/20$1 PV ON 0.0000 0.000000 28,525.00 0.00 0.00 1400000.0000 SHARES DUE 11/1/2019 11/04/2019 00440EAU1 INTEREST EARNED ON ACE INA HOLDINGS 2.875% 11/03/22$1 PV ON 0.0000 0.000000 59,929.38 0.00 0.00 4169000.0000 SHARES DUE 11/3/2019 11/12/2019 037833CU2 INTEREST EARNED ON APPLE INC 2.850% 5/11/24$1 PV ON 3000000.0000 0.0000 0.000000 42,750.00 0.00 0.00 SHARES DUE 11/11/2019 11/12/2019 369550BA5 INTEREST EARNED ON GENERAL DYNAMICS 2.875% 5/11/20$1 PV ON 0.0000 0.000000 28,750.00 0.00 0.00 2000000.0000 SHARES DUE 11/11/2019 11/12/2019 369550BE7 INTEREST EARNED ON GENERAL DYNAMICS 3.000% 5/11/21 $1 PV ON 0.0000 0.000000 47,400.00 0.00 0.00 3160000.0000 SHARES DUE 11/11/2019 12 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/12/2019 458140BD1 INTEREST EARNED ON INTEL CORP 2.875% 5/11/24$1 PV ON 5000000.0000 0.0000 0.000000 71,875.00 0.00 0.00 SHARES DUE 11/11/2019 11/12/2019 4581XOCX4 INTEREST EARNED ON INTER AMER DEV BK 1.625% 5/12/20$1 PV ON 0.0000 0.000000 24,659.38 0.00 0.00 3035000.0000 SHARES DUE 11/12/2019 11/13/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4160.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/13/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4160.00 UNITS 0.0000 0.000000 0.00 4,160.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/13/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4160.0000 UNITS 4,160.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/13/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4160.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/15/2019 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15/22$1 PV ON 10084.2300 0.0000 0.000000 10,084.23 0.00 0.00 SHARES DUE 11/15/2019$0.00161/PV ON 6,270,000.00 PV DUE 11/15/19 11/15/2019 084664BT7 INTEREST EARNED ON BERKSHIRE HATHAWAY 3.000% 5/15/22$1 PV ON 0.0000 0.000000 60,000.00 0.00 0.00 4000000.0000 SHARES DUE 11/15/2019 11/15/2019 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4.678% 1/01/28$1 PV ON 7.1000 0.0000 0.000000 7.10 0.00 0.00 SHARES DUE 11/15/2019 SEPTEMBER FHLMC DUE 11/15/19 11/15/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.016% 8/15/32$1 PV ON 25.2900 0.0000 0.000000 25.29 0.00 0.00 SHARES DUE 11/15/2019$0.00335/PV ON 7,541.85 PV DUE 11/15/19 11/15/2019 43815NABO INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22$1 PV ON 5589.1500 0.0000 0.000000 5,589.15 0.00 0.00 SHARES DUE 11/15/2019$0.00158/PV ON 3,530,000.00 PV DUE 11/15/19 11/15/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 605.4500 0.0000 0.000000 605.45 0.00 0.00 SHARES DUE 11/15/2019$0.00152/PV ON 399,197.59 PV DUE 11/15/19 11/15/2019 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22$1 PV ON 5320.0000 0.0000 0.000000 5,320.00 0.00 0.00 SHARES DUE 11/15/2019$0.00190/PV ON 2,800,000.00 PV DUE 11/15/19 11/15/2019 47788CAB8 INTEREST EARNED ON JOHN DEERE OWNER 2.420% 10/15/20$1 PV ON 3.0000 0.0000 0.000000 3.00 0.00 0.00 SHARES DUE 11/15/2019$0.00202/PV ON 1,489.74 PV DUE 11/15/19 11/15/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2970.3400 0.0000 0.000000 2,970.34 0.00 0.00 SHARES DUE 11/15/2019$0.00222/PV ON 1,340,000.00 PV DUE 11/15/19 11/15/2019 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 7754.3800 0.0000 0.000000 7,754.38 0.00 0.00 SHARES DUE 11/15/2019$0.00238/PV ON 3,265,000.00 PV DUE 11/15/19 11/15/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22$1 PV ON 0.0000 0.000000 11,883.68 0.00 0.00 11883.6800 SHARES DUE 11/15/2019$0.00257/PV ON 4,630,000.00 PV DUE 11/15/19 11/15/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 194.8700 0.0000 0.000000 194.87 0.00 0.00 SHARES DUE 11/15/2019$0.00110/PV ON 177,157.48 PV DUE 11/15/19 11/15/2019 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21 $1 PV ON 2753.7800 0.0000 0.000000 2,753.78 0.00 0.00 SHARES DUE 11/15/2019$0.00146/PV ON 1,888,313.25 PV DUE 11/15/19 11/15/2019 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.940% 7/15/24$1 PV ON 4935.9600 0.0000 0.000000 4,935.96 0.00 0.00 SHARES DUE 11/15/2019$0.00118/PV ON 4,185,000.00 PV DUE 11/15/19 13 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/15/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 11/15/2019$0.00255/PV ON 3,560,000.00 PV DUE 11/15/19 11/15/2019 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 626.2200 0.0000 0.000000 626.22 0.00 0.00 SHARES DUE 11/15/2019$0.00175/PV ON 357,840.10 PV DUE 11/15/19 11/15/2019 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15/21 $1 PV ON 7843.5300 0.0000 0.000000 7,843.53 0.00 0.00 SHARES DUE 11/15/2019$0.00236/PV ON 3,325,884.92 PV DUE 11/15/19 11/15/2019 912828WJ5 INTEREST EARNED ON U S TREASURY NT 2.500% 5/15/24$1 PV ON 7000000.0000 0.0000 0.000000 87,500.00 0.00 0.00 SHARES DUE 11/15/2019 11/15/2019 913366EJ5 INTEREST EARNED ON UNIV OF CALIFORNIA 5.035% 5/15/21 $1 PV ON 400000.0000 0.0000 0.000000 10,070.00 0.00 0.00 SHARES DUE 11/15/2019 11/18/2019 166764BG4 INTEREST EARNED ON CHEVRON CORP 2.100% 5/16/21 $1 PV ON 2500000.0000 0.0000 0.000000 26,250.00 0.00 0.00 SHARES DUE 11/16/2019 11/18/2019 3137EAEK1 INTEREST EARNED ON F H L M C M T N 1.875%11/17/20$1 PV ON 5000000.0000 0.0000 0.000000 46,875.00 0.00 0.00 SHARES DUE 11/17/2019 11/18/2019 43814RACO INTEREST EARNED ON HONDA AUTO 1.210% 12/18/20$1 PV ON 452.2600 0.0000 0.000000 452.26 0.00 0.00 SHARES DUE 11/18/2019$0.00101/PV ON 448,520.90 PV DUE 11/18/19 11/18/2019 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 2890.5000 0.0000 0.000000 2,890.50 0.00 0.00 SHARES DUE 11/18/2019$0.00149/PV ON 1,937,764.12 PV DUE 11/18/19 11/18/2019 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 10071.8800 0.0000 0.000000 10,071.88 0.00 0.00 SHARES DUE 11/18/2019$0.00229/PV ON 4,395,000.00 PV DUE 11/18/19 11/18/2019 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 4289.2500 0.0000 0.000000 4,289.25 0.00 0.00 SHARES DUE 11/18/2019$0.00251/PV ON 1,710,000.00 PV DUE 11/18/19 11/18/2019 46625HRL6 INTEREST EARNED ON JP MORGAN CHASE CO 2.700% 5/18/23$1 PV ON 0.0000 0.000000 67,500.00 0.00 0.00 5000000.0000 SHARES DUE 11/18/2019 11/18/2019 58933YAF2 INTEREST EARNED ON MERCK CO INC 2.800% 5/18/23$1 PV ON 2000000.0000 0.0000 0.000000 28,000.00 0.00 0.00 SHARES DUE 11/18/2019 11/19/2019 62479MYK3 INTEREST EARNED ON MUFG BANK LTD NY BRAN C P 11/19/19$1 PV ON 0.0000 0.000000 60,314.29 0.00 0.00 11255000.0000 SHARES DUE 11/19/2019 11,255,000 PAR VALUE AT 100% 11/19/2019 62479MYK3 INTEREST EARNED ON MUFG BANK LTD NY BRAN C P 11/19/19$1 PV ON 0.0000 0.000000 9,967.53 0.00 0.00 1860000.0000 SHARES DUE 11/19/2019 1,860,000 PAR VALUE AT 100% 11/19/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,353,689.4600 1.000000 1,353,689.46 -1,353,689.46 0.00 11/19/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -9,917,138.8900 1.000000 9,917,138.89 -9,917,138.89 0.00 11/20/2019 36225CAZ9 INTEREST EARNED ON G N M A I I#080023 4.125%12/20/26$1 PV ON 52.1500 0.0000 0.000000 52.15 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 11/20/2019 36225CC20 INTEREST EARNED ON G N M A I I#080088 3.875% 6/20/27$1 PV ON 48.1500 0.0000 0.000000 48.15 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 11/20/2019 36225CNM4 INTEREST EARNED ON G N M A 1 I#080395 3.875% 4/20/30$1 PV ON 20.7300 0.0000 0.000000 20.73 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 11/20/2019 36225CN28 INTEREST EARNED ON G N M A 1 1#080408 3.875% 5/20/30$1 PV ON 159.5800 0.0000 0.000000 159.58 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 14 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/20/2019 36225DCB8 INTEREST EARNED ON G N M A 1 1#080965 3.250% 7/20/34$1 PV ON 120.7800 0.0000 0.000000 120.78 0.00 0.00 SHARES DUE 11/20/2019 OCTOBER GNMA DUE 11/20/19 11/20/2019 747525AD5 INTEREST EARNED ON QUALCOMM INC 2.250% 5/20/20$1 PV ON 2000000.0000 0.0000 0.000000 22,500.00 0.00 0.00 SHARES DUE 11/20/2019 11/20/2019 747525AD5 INTEREST EARNED ON QUALCOMM INC 2.250% 5/20/20$1 PV ON 5000000.0000 0.0000 0.000000 56,250.00 0.00 0.00 SHARES DUE 11/20/2019 11/21/2019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 11/21/2019$0.00246/PV ON 3,970,000.00 PV DUE 11/21/19 11/25/2019 03215PFN4 INTEREST EARNED ON AMRESCO 2.85486% 6/25/29$1 PV ON 283.1600 0.0000 0.000000 283.16 0.00 0.00 SHARES DUE 11/25/2019$0.00238/PV ON 119,021.64 PV DUE 11/25/19 11/25/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 1510.5900 0.0000 0.000000 1,510.59 0.00 0.00 SHARES DUE 11/25/2019$0.00354/PV ON 426,420.49 PV DUE 11/25/19 11/25/2019 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 3679.9700 0.0000 0.000000 3,679.97 0.00 0.00 SHARES DUE 11/25/2019$0.00542/PV ON 679,378.90 PV DUE 11/25/19 11/25/2019 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 54.6900 0.0000 0.000000 54.69 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 405.4400 0.0000 0.000000 405.44 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400% 11/01/20$1 PV ON 985.5200 0.0000 0.000000 985.52 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 379.2800 0.0000 0.000000 379.28 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000% 10/01/33$1 PV ON 7.3800 SHARES 0.0000 0.000000 7.38 0.00 0.00 DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 651.8100 0.0000 0.000000 651.81 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31406XWT5 INTEREST EARNED ON F N M A#823358 4.722% 2/01/35$1 PV ON 428.2400 0.0000 0.000000 428.24 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 77.4900 0.0000 0.000000 77.49 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 739.4700 0.0000 0.000000 739.47 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 36.8200 0.0000 0.000000 36.82 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 60.5300 0.0000 0.000000 60.53 0.00 0.00 SHARES DUE 11/25/2019 OCTOBER FNMA DUE 11/25/19 11/25/2019 31397QREO INTEREST EARNED ON F N M A GTD REMIC 2.825% 2/25/41 $1 PV ON 383.6300 0.0000 0.000000 383.63 0.00 0.00 SHARES DUE 11/25/2019$0.00209/PV ON 183,940.22 PV DUE 11/25/19 11/26/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4368.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 15 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 11/26/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4368.00 UNITS 0.0000 0.000000 0.00 4,368.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/26/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4368.0000 UNITS 4,368.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/26/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 4368.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 11/27/2019 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANC OF CALIF 11/27/19 0.0000 0.000000 10,000,000.00 0.00 0.00 11/27/2019 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANC OF CALIF 11/27/19 0.0000 0.000000 6,000,000.00 0.00 0.00 11/29/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,970,333.0000 1.000000 10,970,333.00 -10,970,333.00 0.00 12/02/2019 3135GOF73 INTEREST EARNED ON F N M A 1.500% 11/30/20$1 PV ON 7500000.0000 0.0000 0.000000 56,250.00 0.00 0.00 SHARES DUE 11/30/2019 12/02/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 2,788.50 0.00 0.00 11/30/2019 INTEREST FROM 11/1/19 TO 11/30/19 12/02/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 3,676.29 0.00 0.00 11/30/2019 INTEREST FROM 11/1/19 TO 11/30/19 12/02/2019 73358WAG9 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 12/1/2019 12/02/2019 912828XE5 INTEREST EARNED ON U S TREASURY NT 1.500% 5/31/20$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 11/30/2019 12/02/2019 912828G61 INTEREST EARNED ON U S TREASURY NT 1.500%11/30/19$1 PV ON 0.0000 0.000000 18,750.00 0.00 0.00 2500000.0000 SHARES DUE 11/30/2019 12/02/2019 912828R69 INTEREST EARNED ON U S TREASURY NT 1.625% 5/31/23$1 PV ON 5000000.0000 0.0000 0.000000 40,625.00 0.00 0.00 SHARES DUE 11/30/2019 12/02/2019 9128281-165 INTEREST EARNED ON U S TREASURY NT 1.750%11/30/21 $1 PV ON 0.0000 0.000000 61,250.00 0.00 0.00 7000000.0000 SHARES DUE 11/30/2019 12/02/2019 912828M80 INTEREST EARNED ON U S TREASURY NT 2.000%11/30/22$1 PV ON 0.0000 0.000000 80,000.00 0.00 0.00 8000000.0000 SHARES DUE 11/30/2019 12/02/2019 9128281-157 INTEREST EARNED ON U S TREASURY NT 2.125%11/30/23$1 PV ON 0.0000 0.000000 159,375.00 0.00 0.00 15000000.0000 SHARES DUE 11/30/2019 12/06/2019 94988J5G8 INTEREST EARNED ON WELLS FARGO MTN 2.150% 12/06/19$1 PV ON 0.0000 0.000000 5,375.00 0.00 0.00 500000.0000 SHARES DUE 12/6/2019 ACCRUED INTEREST ON 12/6/2019 MATURITY 12/09/2019 313383QR5 INTEREST EARNED ON F H L B DEB 3.250% 6/09/23$1 PV ON 5000000.0000 0.0000 0.000000 81,250.00 0.00 0.00 SHARES DUE 12/9/2019 12/09/2019 3130AOF70 INTEREST EARNED ON F H L B DEB 3.375% 12/08/23$1 PV ON 10000000.0000 0.0000 0.000000 168,750.00 0.00 0.00 SHARES DUE 12/8/2019 12/09/2019 69353RFL7 INTEREST EARNED ON PNC BANK NA MTN 3.500% 6/08/23$1 PV ON 0.0000 0.000000 87,500.00 0.00 0.00 5000000.0000 SHARES DUE 12/8/2019 12/09/2019 912828YH7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 9/30/24 0.0000 0.000000 -17,213.11 0.00 0.00 12/09/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,629,322.4900 1.000000 5,629,322.49 -5,629,322.49 0.00 16 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/11/2019 313379RB7 INTEREST EARNED ON F H L B DEB 1.875% 6/11/21 $1 PV ON 4000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 12/11/2019 12/12/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 11856.00 0.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 12/12/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 11856.00 UNITS 0.0000 0.000000 0.00 11,856.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 12/12/2019 313383HU8 INTEREST EARNED ON F H L B DEB 1.750% 6/12/20$1 PV ON 5000000.0000 0.0000 0.000000 43,750.00 0.00 0.00 SHARES DUE 12/12/2019 12/12/2019 89114QCA4 INTEREST EARNED ON TORONTO DOMINION MTN 2.650% 6/12/24$1 PV ON 0.0000 0.000000 39,750.00 0.00 0.00 3000000.0000 SHARES DUE 12/12/2019 12/12/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 11856.0000 11,856.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 12/12/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 11856.00 0.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 12/13/2019 9128283J7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.125% 11/30/24 0.0000 0.000000 -5,660.86 0.00 0.00 12/13/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,634,860.0800 1.000000 7,634,860.08 -7,634,860.08 0.00 12/16/2019 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15/22$1 PV ON 10084.2400 0.0000 0.000000 10,084.24 0.00 0.00 SHARES DUE 12/15/2019$0.00161/PV ON 6,270,000.00 PV DUE 12/15/19 12/16/2019 3130A1XJ2 INTEREST EARNED ON F H L B 2.875% 6/14/24$1 PV ON 11110000.0000 0.0000 0.000000 159,706.25 0.00 0.00 SHARES DUE 12/14/2019 12/16/2019 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4.678% 1/01/28$1 PV ON 7.0300 0.0000 0.000000 7.03 0.00 0.00 SHARES DUE 12/15/2019 OCTOBER FHLMC DUE 12/15/19 12/16/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.027% 8/15/32$1 PV ON 24.0100 0.0000 0.000000 24.01 0.00 0.00 SHARES DUE 12/15/2019$0.00336/PV ON 7,155.25 PV DUE 12/15/19 12/16/2019 43815NABO INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22$1 PV ON 5589.1500 0.0000 0.000000 5,589.15 0.00 0.00 SHARES DUE 12/15/2019$0.00158/PV ON 3,530,000.00 PV DUE 12/15/19 12/16/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 534.3600 0.0000 0.000000 534.36 0.00 0.00 SHARES DUE 12/15/2019$0.00152/PV ON 352,321.54 PV DUE 12/15/19 12/16/2019 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22$1 PV ON 5320.0000 0.0000 0.000000 5,320.00 0.00 0.00 SHARES DUE 12/15/2019$0.00190/PV ON 2,800,000.00 PV DUE 12/15/19 12/16/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2665.0400 0.0000 0.000000 2,665.04 0.00 0.00 SHARES DUE 12/15/2019$0.00222/PV ON 1,202,272.32 PV DUE 12/15/19 12/16/2019 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 7162.7200 0.0000 0.000000 7,162.72 0.00 0.00 SHARES DUE 12/15/2019$0.00238/PV ON 3,015,882.88 PV DUE 12/15/19 12/16/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22$1 PV ON 0.0000 0.000000 11,883.67 0.00 0.00 11883.6700 SHARES DUE 12/15/2019$0.00257/PV ON 4,630,000.00 PV DUE 12/15/19 12/16/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 111.9100 0.0000 0.000000 111.91 0.00 0.00 SHARES DUE 12/15/2019$0.00110/PV ON 101,736.92 PV DUE 12/15/19 12/16/2019 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21 $1 PV ON 2503.5200 0.0000 0.000000 2,503.52 0.00 0.00 SHARES DUE 12/15/2019$0.00146/PV ON 1,716,703.80 PV DUE 12/15/19 17 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/16/2019 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24$1 PV ON 6730.8700 0.0000 0.000000 6,730.87 0.00 0.00 SHARES DUE 12/15/2019$0.00161/PV ON 4,185,000.00 PV DUE 12/15/19 12/16/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 12/15/2019$0.00255/PV ON 3,560,000.00 PV DUE 12/15/19 12/16/2019 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 54.6600 0.0000 0.000000 54.66 0.00 0.00 SHARES DUE 12/15/2019$0.00175/PV ON 31,233.00 PV DUE 12/15/19 12/16/2019 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15/21 $1 PV ON 7141.0300 0.0000 0.000000 7,141.03 0.00 0.00 SHARES DUE 12/15/2019$0.00236/PV ON 3,027,995.80 PV DUE 12/15/19 12/18/2019 43814RACO INTEREST EARNED ON HONDA AUTO 1.210% 12/18/20$1 PV ON 337.9400 0.0000 0.000000 337.94 0.00 0.00 SHARES DUE 12/18/2019$0.00101/PV ON 335,148.93 PV DUE 12/18/19 12/18/2019 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 2631.6500 0.0000 0.000000 2,631.65 0.00 0.00 SHARES DUE 12/18/2019$0.00149/PV ON 1,764,236.43 PV DUE 12/18/19 12/18/2019 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 9485.2800 0.0000 0.000000 9,485.28 0.00 0.00 SHARES DUE 12/18/2019$0.00229/PV ON 4,139,028.61 PV DUE 12/18/19 12/18/2019 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 4289.2500 0.0000 0.000000 4,289.25 0.00 0.00 SHARES DUE 12/18/2019$0.00251/PV ON 1,710,000.00 PV DUE 12/18/19 12/19/2019 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANC OF CALIF 12/19/19 0.0000 0.000000 97,000,000.00 0.00 0.00 12/19/2019 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANC OF CALIF 12/19/19 0.0000 0.000000 38,000,000.00 0.00 0.00 12/19/2019 3137EAEN5 INTEREST EARNED ON F H L M C 2.750% 6/19/23$1 PV ON 10000000.0000 0.0000 0.000000 137,500.00 0.00 0.00 SHARES DUE 12/19/2019 12/19/2019 06367BDS5 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF MONTREAL C D 2.000% 0.0000 0.000000 -55.56 0.00 0.00 3/18/20 12/20/2019 36225CAZ9 INTEREST EARNED ON G N M A 1 1#080023 4.125%12/20/26$1 PV ON 50.2100 0.0000 0.000000 50.21 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 36225CC20 INTEREST EARNED ON G N M A 1 1#080088 3.875% 6/20/27$1 PV ON 40.4000 0.0000 0.000000 40.40 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 36225CNM4 INTEREST EARNED ON G N M A 1 1#080395 3.875% 4/20/30$1 PV ON 20.5900 0.0000 0.000000 20.59 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 36225CN28 INTEREST EARNED ON G N M A 1 1#080408 3.875% 5/20/30$1 PV ON 156.0500 0.0000 0.000000 156.05 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 36225DCB8 INTEREST EARNED ON G N M A 1 1#080965 3.250% 7/20/34$1 PV ON 119.8700 0.0000 0.000000 119.87 0.00 0.00 SHARES DUE 12/20/2019 NOVEMBER GNMA DUE 12/20/19 12/20/2019 06367BDS5 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF MONTREAL C D 2.000% 0.0000 0.000000 -888.89 0.00 0.00 3/18/20 12/20/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,683,452.7800 1.000000 10,683,452.78 -10,683,452.78 0.00 12/20/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,001,278.1900 1.000000 8,001,278.19 -8,001,278.19 0.00 12/23/2019 06417G5Q7 INTEREST EARNED ON BANK OF NOVA C D 2.610% 12/23/19$1 PV ON 0.0000 0.000000 46,023.00 0.00 0.00 2300000.0000 SHARES DUE 12/23/2019 INTEREST ON 12/23/19 MATURITY 12/23/2019 313500035 INTEREST EARNED ON F N M A 2.750% 6/22/21 $1 PV ON 7500000.0000 0.0000 0.000000 103,125.00 0.00 0.00 SHARES DUE 12/22/2019 18 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/23/2019 3135GOD75 INTEREST EARNED ON F N M A DEB 1.500% 6/22/20$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 12/22/2019 12/23/2019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 12/21/2019$0.00246/PV ON 3,970,000.00 PV DUE 12/21/19 12/23/2019 89114M2Z9 PAID ACCRUED INTEREST ON PURCHASE OF TORONTO DOMINION C D 2.200% 0.0000 0.000000 -18,211.11 0.00 0.00 1/23/20 12/23/2019 912828VJ6 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.875% 6/30/20 0.0000 0.000000 -134,510.87 0.00 0.00 12/23/2019 912828357 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 1/31/20 0.0000 0.000000 -39,402.17 0.00 0.00 12/23/2019 912828357 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 1/31/20 0.0000 0.000000 -39,402.17 0.00 0.00 12/23/2019 912828357 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 1/31/20 0.0000 0.000000 -39,402.17 0.00 0.00 12/23/2019 912828VV9 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.125% 8/31/20 0.0000 0.000000 -99,828.30 0.00 0.00 12/23/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -60,558,044.9200 1.000000 60,558,044.92 -60,558,044.92 0.00 12/23/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,972,473.7600 1.000000 1,972,473.76 -1,972,473.76 0.00 12/23/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,890,970.7200 1.000000 4,890,970.72 -4,890,970.72 0.00 12/24/2019 166764AH3 INTEREST EARNED ON CHEVRON CORP 3.191% 6/24/23$1 PV ON 3500000.0000 0.0000 0.000000 55,842.50 0.00 0.00 SHARES DUE 12/24/2019 12/24/2019 90331HNB5 INTEREST EARNED ON US BANK MTN 2.000% 1/24/20$1 PV ON 2000000.0000 0.0000 0.000000 16,666.60 0.00 0.00 SHARES DUE 12/24/2019 12/24/2019 912828YH7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 9/30/24 0.0000 0.000000 -27,868.85 0.00 0.00 12/24/2019 9128281-57 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.750% 9/30/22 0.0000 0.000000 -28,449.45 0.00 0.00 12/24/2019 912828357 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 1/31/20 0.0000 0.000000 -39,673.91 0.00 0.00 12/24/2019 9128283,17 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.125% 11/30/24 0.0000 0.000000 -12,540.98 0.00 0.00 12/24/2019 912828MP2 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 3.625% 2/15/20 0.0000 0.000000 -64,521.06 0.00 0.00 12/24/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,102,958.0600 1.000000 8,102,958.06 -8,102,958.06 0.00 12/24/2019 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 12/24/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -24,092,157.4100 1.000000 24,092,157.41 -24,092,157.41 0.00 12/26/2019 03215PFN4 INTEREST EARNED ON AMRESCO 2.73625% 6/25/29$1 PV ON 271.3900 0.0000 0.000000 271.39 0.00 0.00 SHARES DUE 12/26/2019$0.00228/PV ON 119,021.64 PV DUE 12/26/19 12/26/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 753.5600 0.0000 0.000000 753.56 0.00 0.00 SHARES DUE 12/25/2019$0.00354/PV ON 212,720.33 PV DUE 12/25/19 12/26/2019 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 3677.4200 0.0000 0.000000 3,677.42 0.00 0.00 SHARES DUE 12/25/2019$0.00542/PV ON 678,909.17 PV DUE 12/25/19 12/26/2019 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 54.1800 0.0000 0.000000 54.18 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 396.2400 0.0000 0.000000 396.24 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400% 11/01/20$1 PV ON 951.7300 0.0000 0.000000 951.73 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 19 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/26/2019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 372.6100 0.0000 0.000000 372.61 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000% 10/01/33$1 PV ON 7.3500 SHARES 0.0000 0.000000 7.35 0.00 0.00 DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31406PQY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 632.7500 0.0000 0.000000 632.75 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31406XWT5 INTEREST EARNED ON F N M A#823358 4.647% 2/01/35$1 PV ON 419.7300 0.0000 0.000000 419.73 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 74.0000 0.0000 0.000000 74.00 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 726.5600 0.0000 0.000000 726.56 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 36.1400 0.0000 0.000000 36.14 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 59.6700 0.0000 0.000000 59.67 0.00 0.00 SHARES DUE 12/25/2019 NOVEMBER FNMA DUE 12/25/19 12/26/2019 31397QREO INTEREST EARNED ON F N M A GTD REMIC 2.825% 2/25/41 $1 PV ON 359.4200 0.0000 0.000000 359.42 0.00 0.00 SHARES DUE 12/25/2019$0.00199/PV ON 180,610.99 PV DUE 12/25/19 12/26/2019 90331HNB5 INTEREST EARNED ON US BANK MTN 2.000% 1/24/20$1 PV ON 2000000.0000 0.0000 0.000000 0.07 0.00 0.00 SHARES DUE 12/24/2019 ADDITIONAL ACCRUED INTEREST ON 12/24/19 FULL CALL 12/26/2019 931142EK5 INTEREST EARNED ON WALMART INC 3.400% 6/26/23$1 PV ON 3880000.0000 0.0000 0.000000 65,960.00 0.00 0.00 SHARES DUE 12/26/2019 12/26/2019 9128281-32 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 8/31/20 0.0000 0.000000 -22,098.21 0.00 0.00 12/26/2019 912828XY1 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.500% 6/30/20 0.0000 0.000000 -60,801.63 0.00 0.00 12/26/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,095,985.7800 1.000000 10,095,985.78 -10,095,985.78 0.00 12/27/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13312.00 0.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 12/27/2019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13312.00 UNITS 0.0000 0.000000 0.00 13,312.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 12/27/2019 02665WCZ2 INTEREST EARNED ON AMERICAN HONDA MTN 2.400% 6/27/24$1 PV ON 0.0000 0.000000 14,628.00 0.00 0.00 1219000.0000 SHARES DUE 12/27/2019 12/27/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13312.0000 13,312.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 12/27/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 13312.00 0.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 12/31/2019 912828XW5 INTEREST EARNED ON U S TREASURY NT 1.750% 6/30/22$1 PV ON 5000000.0000 0.0000 0.000000 43,750.00 0.00 0.00 SHARES DUE 12/31/2019 12/31/2019 912828VJ6 INTEREST EARNED ON U S TREASURY NT 1.875% 6/30/20$1 PV ON 0.0000 0.000000 140,625.00 0.00 0.00 15000000.0000 SHARES DUE 12/31/2019 20 of 21 U.S. Bank Transaction History 10/01/2019 Thru 12/31/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss 12/31/2019 912828XX3 INTEREST EARNED ON U S TREASURY NT 2.000% 6/30/24$1 PV ON 5000000.0000 0.0000 0.000000 50,000.00 0.00 0.00 SHARES DUE 12/31/2019 12/31/2019 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 12/31/2019 12/31/2019 912828XY1 INTEREST EARNED ON U S TREASURY NT 2.500% 6/30/20$1 PV ON 5000000.0000 0.0000 0.000000 62,500.00 0.00 0.00 SHARES DUE 12/31/2019 TOTAL OTHER TRANSACTIONS -192,587,902.7600 331,462,539.07 -192,593,183.34 0.00 21 of 21 Callan December 31,2019 Orange County Sanitation District Investment Measurement Service Quarterly Review Information contained herein includes confidential,trade secret and proprietary information.Neither this Report nor any specific information contained herein is to be used other than by the intended recipient for its intended purpose or disseminated to any other person without Callan's permission. Certain information herein has been compiled by Callan and is based on information provided by a variety of sources believed to be reliable for which Callan has not necessarily verified the accuracy or completeness of or updated.This content may consist of statements of opinion,which are made as of the date they are expressed and are not statements of fact.This content is for informational purposes only and should not be construed as legal or tax advice on any matter.Any decision you make on the basis of this content is your sole responsibility.You should consult with legal and tax advisers before applying any of this information to your particular situation.Past performance is no guarantee of future results.For further information,please see Appendix for Important Information and Disclosures. Table of Contents December 31, 2019 Capital Market Review 1 Active Management Overview Market Overview 7 Domestic Fixed Income 8 Asset Allocation Investment Manager Asset Allocation 10 Investment Manager Returns 11 Asset Class Risk and Return 15 Manager Analysis Chandler-Long Term Operating Fund 17 Chandler-Liquid Operating Money 21 Callan Research/Education 23 Definitions 26 Disclosures 31 Callan Orange County Sanitation District Executive Summary for Period Ending December 31, 2019 Asset Allocation December 31, 2019 September 30, 2019 Market Value Weight Net New Inv. Inv. Return Market Value Weight Domestic Fixed Income Long Term Operating Fund* 579,913,998 76.75% 29,000,000 2,787,071 548,126,927 88.93% Liquid Operating Nbnies* 175,646,417 23 25% 107,000,000 413,159 68,233,258 11 07% Total Fund $755,560,415 100.0% $136,000,000 $3,200,230 $616,360,185 100.0% Performance Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund^ 0.50% 4.70% 2.48% 1.97% 1.43% Chandler 0.50% 4.70% 2.48% 1.97% - Blmbg Govt/Cred 1-5 Year Idx 0.50% 5.01% 2.54% 2.03% 1.69% ML 1-5 Govt/Corp 0.53% 5.08% 2.57% 2.07% 1.74% Liquid Operating Monies^ 0.50% 2.39% 1.73% 1.17% 0.87% Chandler 0.50% 2.39% 1.73% 1.17% - Citigroup 3-Month Treasury Bill 0.46% 2.25% 1.65% 1.05% 0.76% Total Fund 0.50% 4.26% 2.32% 1.78% 1.30% Target* 0.52% 4.51% 2.39% 1.87% 1.54% *Current Quarter Target=80.0%MIL 1-5 Govt/Corp and 20.0%FTSE 3mo T-Bills. ^Assets were transferred in kind to Chandler on 12/1/2014.Previous performance reflects PIMCO. Recent Developments During the quarter, $29.0 million was contributed to the Long Term Operating Fund and $107.0 million was added to the Liquid Operating Monies for a combined contribution of$136.0 million. Organizational Issues N/A Fixed Income Market Snapshot Positive economic data and progressing trade relations with China sent treasury yields higher across the curve in the fourth quarter. Quarter-over-quarter, the Treasury curve steepened significantly with the two-year falling five basis points (bps) to 1.58%, the 10-year increasing 24 bps to 1.92% and the 30-year increasing 27 bps to 2.39%. Corporate spreads tightened in response to positive economic data and a general risk-on tone. Investment grade spreads tightened 22 bps during the quarter. After cutting rates at their October meeting, the Federal Open Market Committee (FOMC) left the fed funds rate unchanged at their December meeting, in line with expectations. To close the year, the fed funds rate target remained at a range of CallanOrange County Sanitation District 1.50-1.75%, and markets are not currently pricing in a greater than 50% chance of additional Fed actions in the next 12 months. The Bloomberg Aggregate Index rose 0.2% in the fourth quarter, despite rising rates, bringing its 2019 return to 8.7%. Performance outside of government sectors was largely positive. U.S. Treasuries fell in conjunction with rising rates (Bloomberg Government Index: -0.8%) and long gov/credit bonds (Bloomberg Long Gov/Credit Index: -1.1%) were down more than 1.0% in the fourth quarter. Light supply and optimistic market tone provided for corporate spread tightening and lower quality bonds outperformed in the fourth quarter. The Bloomberg Credit Index returned 1.1% and the ML High Yield CP Index increased 2.6% during the period. TIPS (Bloomberg U.S. TIPS Index: +0.8%) outperformed as 10-year break even inflation spreads increased to 1.77% (up from 1.53% at the end of Q3). Manager Performance The Long Term Operating Fund returned 0.50% during the quarter, which was generally in line with the return of the MIL U.S. 1-5 Corp/Gov Index (+0.53%). Over the trailing 12 months, the Fund has underperformed the benchmark by 38 basis points. However, ranked against the Callan Short Term Fixed Income Peer Group, the Fund is performing above median (35" percentile). The fund's out-of-benchmark allocation to Asset Backed Securities contributed positively to relative performance in the fourth quarter. The manager's barbell approach of over allocating to shorter-dated and longer-dated securities at the expense of the middle portion of the curve also contributed to relative gains. During the quarter, the manager increased the allocation to U.S. Treasuries by 4.4 percentage points and decreased the allocation to Agencies by 2.8 percentage points. The portfolio had less than 30% invested in credit (24%) and less than the permitted 20% invested in the combination of asset-backed securities (8%), commercial mortgage backed securities (0%), and CMOs (0%) as of December 31, 2019 (see page 20). The Liquid Operating Portfolio appreciated 0.46% (after fees) in the fourth quarter, performing in line with the 3-month Treasury return of 0.46%. During 2019, the Portfolio gained 2.24%, which ranked in the 28th percentile among peers. Cordially, S. �� Gordon M. Weightman, CFA Senior Vice President 2 Capital Market Review Capital Market Overview Dec. 31, 2019 U.S. EQUITY U.S. Equity: Quarterly Returns The fourth quarter closed out a near-historic year for equity markets, in particular the S&P 500,which ended 2019 up Russell 3000 9.1% 31.5%—enough to claim second place behind 2013 for the strongest year of the decade(during which large cap equities only saw one down year). Both Apple(+85%)and Microsoft Russell 1000 9.0% (+54%)reached over$1 trillion in market cap and accounted for 15%of the S&P 500's advance for the year. For the recent Russell 1000 Growth 10.6% quarter, investors globally were spurred by three interest rate cuts by the Fed, a potential U.S.-China trade armistice, Russell 1000 Value 7 4% continued low inflation,and some clarity around Brexit. Large cap vs. small cap(Russell 2000: +9.9%; Russell 1000: S&P 500 9.1% +9.0%) Small cap trailed for most of 2019 but eclipsed large cap Russell Midcap 7.1% stocks in the fourth quarter due to notable contributions from the Health Care sector,where the biotech and Russell 2500 8.5% pharmaceutical industries saw heightened new drug approvals and M&A activity during the quarter. Russell 2000 9.9% Small growth outpaced small value for the quarter,the year, and the decade;the Russell 2000 Growth Index outpaced the Russell 2000 Value Index by 3%annualized over the U.S. Equity: One-Year Returns past 10 years as the low interest rate environment favored growth stocks and challenged the Russell 2000 Value's heavy exposure to Financials. Russell 3000 31.0% While small cap outpaced large cap in the fourth quarter, large cap stocks led for the third straight year, owing much Russell 1000 31.4% to Tech (+50.3%)and Communication Services(+32.7%). Russell 1000 Growth 36.4% Growth vs.Value(Russell 1000 Growth: +10.6%; Russell 1000 Value: +7.4%) Russell 1000 Value 26.5% Growth continued its dominance over value during the quarter, closing out a decade-long trend. S&P 500 31.5% Tech giants Facebook,Apple, Microsoft, and Alphabet/Google remained meaningful contributors for the Russell Midcap 30.5% quarter although Health Care (+14.4%)was also among the top sector performers. Russell 2500 27.8% — The fourth quarter saw a rotation away from the more defensive sectors(e.g., Consumer Staples(+3.5%), Utilities Russell 2000 25.5% (+0.8%),and Real Estate(-0.5%))and into Cyclicals,further supporting growth stocks. Sources:FTSE Russell,Standard&Poor's S&P Sector Returns, Quarter Ended December 31, 2019 14.4% 14.4% 10.5% rq 9.0% 5.5% 5.5% 6.4% 4.5% 3.5% ff 0.8% -0.5% Communication Consumer Consumer Energy Financials Health Care Industrials Information Materials Real Estate Utilities Services Discretionary Staples Technology Source:Standard &Poor's Callan Capital Market Overview (continued) Dec. 31, 2019 GLOBAL/GLOBAL EX-U.S. EQUITY Global Equity: Quarterly Returns Global equity markets bounced back in the fourth quarter as uncertainties abated. De-escalation of the U.S.-China trade MSCI EAFE 8.2% war coupled with some Brexit clarity boosted markets.With this backdrop,trade-related areas of the market led the rally. MSCI ACWI 9.0% Global/Developed ex-U.S.(MSCI EAFE: +8.2%; MSCI World MSCI World 8.6% ex USA: +7.9%; MSCI ACWI ex USA: +8.9%; MSCI Japan: MSCI ACWI ex USA 8.9% +7.6%; MSCI Pacific ex Japan: +5.8%) Optimism catalyzed by easing tension between the U.S. and MSCI World ex USA 7.9% China and nearing conclusion of Brexit boosted the markets, and the U.S. dollar fell against most currencies within MSCI ACWI ex USA SC 11.0% developed and emerging markets. MSCI World ex USA SC 11.4% British Prime Minister Boris Johnson gained command of the Parliament as a result of the Dec. 12 election,adding further MSCI Europe ex UK 8.5% clarity to Brexit and sparking the pound to its best quarterly results in a decade by rising 7.5% relative to the dollar. MSCI United Kingdom 10.0% Accommodative policies such as a fiscal stimulus program MSCI Pacific ex Japan 5.8% and dovish monetary rhetoric continued to support the Japanese economy and its market. MSCI Japan 7.6% Despite GDP contraction of 3.2%and its first recession in a MSCI Emerging Markets 11.8% decade due to political protests, Hong Kong rose 7.3%as U.S.-China trade tensions improved. MSCI China 14.7% Every sector generated positive returns, led by Technology. MSCI Frontier Markets 6.6% Emerging Markets(MSCI Emerging Markets Index: +11.8%) Emerging markets were the best-performing among the Global Equity: One-Year Returns global ex-U.S. markets as trade war uncertainty receded. China soared 14.7%with easing trade tensions and MSCI EAFE 22.0% expected fiscal and monetary stimulus packages in 2020. Brazil posted a 14.2%gain, its best quarter since late 2017, MSCI ACWI 26.6% emboldened by President Jair Bolsonaro's deregulation MSCI World 27.7% policies,the country's 1.2% GDP growth, and pending pension reform. MSCI ACWI ex USA 21.5% Russia was the best-performing country in 2019(+50.9%) MSCI World ex USA 22.5% and a top five performer in the quarter(+16.8%)as rising oil prices over the past year helped fuel sentiment. MSCI ACWI ex USA SC 22.4% Every sector generated positive returns, led by Asian MSCI World ex USA SC 25.4% technology companies,given the"phase one"trade deal, chip demands for 5G, and growth in China. MSCI Europe ex UK 24.8% Global ex-U.S. Small Cap(MSCI World ex USA Small Cap: MSCI United Kingdom 21.0% +11.4%; MSCI EM Small Cap: +9.5%; MSCI ACWI ex USA Small Cap: +11.0%) MSCI Pacific ex Japan 18.4% The"risk-on"market environment triggered by the U.S.- MSCI Japan 19.6% China trade war de-escalation enabled small caps to outperform large caps. MSCI Emerging Markets 18.4% Additional Brexit clarity drove the U.K. as the top country MSCI China 23.5% performer(+19.4%)within developed ex-U.S. Argentina(+33.5%)and Brazil (+24.8%)were two of the top MSCI Frontier Markets 18.0% EM country performers as key appointments in the Argentinian government,and deregulation and pension reform in Brazil, boosted market sentiment. Source: MSCI Callan Capital Market Overview (continued) Dec. 31, 2019 FIXED INCOME U.S. Fixed Income: Quarterly Returns The Federal Open Market Committee(FOMC)cut short-term interest rates by 25 basis points once in the fourth quarter to Blmberg Barclays Gov/Cr 1-3 Yr 0.6% 1.50%-1.75%,citing weak business investment and export data, along with muted inflation.The overall economic backdrop remained strong supported by a solid labor market, Blmberg Barclays Interm Gov/Cr 0.4% which led to a pause in rate cuts at the most recent FOMC meeting.The FOMC indicated its current monetary policy Blmberg Barclays Aggregate 0.2% stance is appropriate to sustain the economic expansion.The European Central Bank kept rates steady while continuing to Blmberg Barclays Long Gov/Cr 1.1% purchase assets in the open market.Yield movement was mixed in the U.S. as short-term rates fell and long-term rates rose amid ongoing trade negotiations. Blmberg Barclays Universal 0.5% U.S. Fixed Income(Bloomberg Barclays US Aggregate Bond CS Leveraged Loans 1.7% Index: +0.2%) Treasuries fell 0.8%as the Treasury yield curve steepened, Blmberg Barclays High Yield 2.6% with yields falling on the short end and rising modestly in the intermediate and long end of the curve on expectations of Blmberg Barclays TIPS 0.8% stronger economic growth. The spread between the 2-year and 10-year Treasury remained positive,ending the year at 34 bps. U.S. Fixed Income: One-Year Returns Long Treasuries fell 4.1%as the 30-year yield rose 27 bps to end the year at 2.39%as investors favored risk assets. Blmberg Barclays Gov/Cr 1-3 Yr 4.0% TIPS outperformed nominal Treasuries as inflation expectations rose;the 10-year breakeven spread was 1.77% Blmberg Barclays Interm Gov/Cr 6.8% at quarter end, up from 1.53%as of Sept. 30. Investment Grade Corporates(Bloomberg Barclays Blmberg Barclays Aggregate 8.7% Corporate: +1.2%) Investment grade corporate credit spreads narrowed in the Blmberg Barclays Long Gov/Cr 19.6% fourth quarter and posted the best results within the Bloomberg Barclays US Aggregate Bond Index amid a risk- Blmberg Barclays Universal 9.3% on market environment; BBB-rated corporates(+1.7%) outperformed single A-rated or higher corporates(+0.7%), CS Leveraged Loans 8.2% indicating investors'willingness to extend risk down the credit spectrum. Blmberg Barclays High Yield 14.3% Issuance in the corporate bond market was$200 billion in the fourth quarter,which was$8 billion lower than that from a Blmberg Barclays TIPS 8.4% year ago. Issuance was$140 billion lower compared to the third quarter,as is typical toward year-end;demand remained strong amid the risk-on market tone as global investors continued their hunt for positive-yielding assets. U.S. Treasury Yield Curves High Yield(Bloomberg Barclays Corporate High Yield: +2.6%) --o-12/31/2019 --o--9/30/2019 12/31/2018 CCC-rated corporates(+3.7%)outperformed BB-rated 4% corporates(+2.5%),as the risk-on market sentiment spurred 3% demand for lower-rated securities. Spreads across credit quality buckets tightened in the fourth 2% quarter,as the market anticipated improvements in credit 1% fundamentals. 0% 0 5 10 15 20 25 30 Maturity(Years) Sources:Bloomberg, Bloomberg Barclays,Credit Suisse Callan Capital Market Overview (continued) Dec. 31, 2019 Leveraged Loans(CS Leveraged Loans: +1.7%) Global Fixed Income: Quarterly Returns Bank loans,which have floating-rate coupons, underperformed high yield as investors shunned loans in Blmberg Barclays GI Aggregate I 0.5% favor of high yield bonds. CLO issuance remained consistent,providing technical Blmberg Barclays GI Agg(hdg)-0.5% I support for the leveraged loan market. Global Fixed Income(Bloomberg Barclays Global Aggregate Blmberg Barclays GI High Yield 3.5% (unhedged):+0.5%; (hedged):-0.5%) Blmberg Barclays GI Agg ex US I 0.7% Developed market sovereign bond yields rose modestly in the fourth quarter as global financial conditions improved, but ended lower on the year. The ECB kept the deposit rate JPM EMBI Global Diversified . 1.8% steady at its December meeting; negative-yielding debt totaled less than$12 trillion,down from$17 trillion in the JPM GBI-EM Global Diversified 5.2% third quarter. The U.S. dollar declined in the fourth quarter versus the JPM EMBI GI Div/JPM GBI-EM GI Div 3.5% euro,Australian dollar,and British pound; however, it had a modest gain versus the Japanese yen. JPM CEMBI ■ 2.1% US$ EMD(JPM EMBI Global Diversified:+1.8%), Local Currency EMD(JPM GBI-EM Global Diversified: +5.2%) Global Fixed Income: One-Year Returns Broadly, emerging market debt benefited from dovish global central banks and a risk-on environment. Within the dollar-denominated benchmark,which posted Blmberg Barclays GI Aggregate 6.8% mixed results, Lebanon(-29.4%)was an outlier as the debt- to-GDP ratio continued to swell and anti-government Blmberg Barclays GI Agg(hdg) 8.2% protests persisted;Argentina rallied(+20.8%)to end the year down 23.6%as a new president was inaugurated. Returns in Blmberg Barclays GI High Yield 12.6% the local debt benchmark were largely positive,with only Chile(-6.2%)and the Dominican Republic(-0.7%)declining. Blmberg Barclays GI Agg ex US 5.1% South Africa(+10.2%)and Russia(+10.0%)were top performers. JPM EMBI Global Diversified 15.0% JPM GBI-EM Global Diversified 13.5% JPM EMBI GI Div/JPM GBI-EM GI Div 14.3% JPM CEMBI 13.8% Change in 10-Year Global Government Bond Yields 3Q19 to 4Q19 U.S.Treasury 26 bps Germany 38 bps U.K. 33 bps Canada 34 bps Japan 20 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 first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter. The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the Large Cap Equity manager database. Range of Separate Account Manager Returns by Asset Class One Quarter Ended December 31,2019 14% 12% 10% (26) ( 8% 44) (81) L I N 6% 4% 2% (74)El 0% (2%) Large Cap Small Cap Non-US Domestic Non-US Real Equity Equity Equity Fixed Income Fixed Income Estate vs vs vs vs vs vs S&P 500 Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi Non-US Govt NCREIF Index 10th Percentile 11.07 11.74 11.61 0.39 4.93 4.14 25th Percentile 10.05 10.18 10.52 0.31 3.10 2.64 Median 8.82 8.53 9.32 0.22 1.29 1.87 75th Percentile 7.77 7.42 8.50 0.10 0.84 1.52 90th Percentile 6.45 6.04 7.58 (0.04) 0.01 1.13 Index ♦ 9.07 9.94 8.17 0.18 (0.07) 1.55 Range of Separate Account Manager Returns by Asset Class One Year Ended December 31, 2019 45% 40% 35% 30% (43) E 25% El (51) (66) i 20% 15% 10% (83) 5% (80)� (65) 0% Large Cap Small Cap Non-US Domestic Non-US Real Equity Equity Equity Fixed Income Fixed Income Estate vs vs vs vs vs vs S&P 500 Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi Non-US Govt NCREIF Index 10th Percentile 37.69 35.81 30.93 9.95 9.17 18.55 25th Percentile 33.97 30.22 28.26 9.58 7.63 9.85 Median 30.68 25.76 23.83 9.17 6.43 7.31 75th Percentile 26.88 22.13 20.99 8.89 5.46 5.79 90th Percentile 24.16 19.18 18.18 8.53 4.14 3.84 Index ♦ 31.49 25.52 22.01 8.72 5.32 6.42 Callan Orange County Sanitation District 7 Domestic Fixed Income Active Management Overview Fixed income markets posted strong returns in 2019 fueled both by falling interest rates and strong investor demand, especially for higher-yielding sectors. The 10-year U.S. Treasury closed the year at 1.92%, up from 1.68% at the end of the third quarter and down sharply from 2.69% at the close of 2018. The Bloomberg Barclays US Aggregate Bond Index rose 8.7%, the best calendar year return since 2002, with the lowest-quality tier of the Index up 16.4%. Fourth quarter gains were more muted at 0.2% as Treasury yields rose modestly. Corporate bonds were the best-performing sector in the fourth quarter and 2019 (Bloomberg Barclays Corporate Index: +1.2%; +14.5%). High yield corporates also posted sharp gains; the Bloomberg Barclays Corporate High Yield Index rose 2.6% in the fourth quarter and 14.3% in 2019. Leveraged loans suffered outflows throughout the year, but still posted a solid return (CS Leveraged Loan: +1.7%; +9.0%). The Bloomberg Barclays US TIPS Index sharply outperformed the Treasury Index in the fourth quarter as inflation expectations rose. Separate Account Style Group Median Returns for Quarter Ended December 31, 2019 Blmbg Aggregate: 0.18% 4% Blmbg High Yield: 2.61% Blmbg Long Gov/Cred: (1.12%) 3% 2.65 2% --------------------------------------------------------------------- 1.76 c 1% ---------------------------------------------------------- ------- 0.60 0 0.44 .49 0.22 0% _ ��N (1%) (1.00) (2%) Defensive Intermed Core Core Plus Extended Bank High Yield Bond Maturity Loans Separate Account Style Group Median Returns for One Year Ended December 31, 2019 Blmbg Aggregate: 8.72% 30% Blmbg High Yield: 14.32% Blmbg Long Gov/Cred: 19.59% 25% 20% ------------------------------------------------ 20.14 ---------------------------- 15% ------------------------------------------------ --------------14.95 ------------- N ry 10% 10.01 ------------------------ 8.76 7.04 5% ----------452--- ------- 0% Defensive Intermed Core Core Plus Extended Bank High Yield Bond Maturity Loans Callan Orange County Sanitation District 8 Asset Allocation Investment Manager Asset Allocation The table below contrasts the distribution of assets across the Fund's investment managers as of December 31, 2019, with the distribution as of September 30, 2019. The change in asset distribution is broken down into the dollar change due to Net New Investment and the dollar change due to Investment Return. Asset Distribution Across Investment Managers December 31, 2019 September 30, 2019 Market Value Weight Net New Inv. Inv. Return Market Value Weight Domestic Fixed Income Long Term Operating Fund` 579,913,998 76.75% 29,000,000 2,787,071 548,126,927 88.93% Liquid Operating Monies' 175,646,417 23.25% 107,000,000 413,159 68,233,258 11.07% Total Fund $755,560,415 100.0% $136,000,000 $3,200,230 $616,360,185 100.0% "Chandler replaced PIMCO during the 4th quarter of 2014.Assets were transferred in-kind as of 12/01/2014. Callan Orange County Sanitation District 10 Investment Manager Returns The table below details the rates of return for the Fund's investment managers over various time periods ended December 31, 2019. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class. Returns for Periods Ended December 31, 2019 Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund 0.50% 4.70% 2.48% 1.97% 1.43% Chandler 0.50% 4.70% 2.48% 1.97% - Blmbg Govt/Cred 1-5 Year Idx 0.50% 5.01% 2.54% 2.03% 1.69% ML 1-5 Govt/Corp 0.53% 5.08% 2.57% 2.07% 1.74% Liquid Operating Monies^ 0.50% 2.39% 1.73% 1.17% 0.87% Chandler 0.50% 2.39% 1.73% 1.17% - Citigroup 3-Month Treasury Bill 0.46% 2.25% 1.65% 1.05% 0.76% Total Fund 0.50% 4.26% 2.32% 1.78% 1.30% Target* 0.52% 4.51% 2.39% 1.87% 1.54% Current Quarter Target= 80.0% ML:Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Callan Orange County Sanitation District 11 Investment Manager Returns The table below details the rates of return for the Fund's investment managers over various time periods ended December 31, 2019. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class. Returns for Periods Ended December 31, 2019 Last Last Last 10 15 24-1/4 Years Years Years Domestic Fixed Income Long Term Operating Fund 2.20% 3.12% 4.22% Blmbg Govt/Cred 1-5 Year Idx 2.13% 2.92% 4.06% ML 1-5 Govt/Corp 2.19% 2.95% 4.09% Liquid Operating Monies^ 0.67% 1.54% 2.57% Citigroup 3-Month Treasury Bill 0.56% 1.33% 2.28% Total Fund 1.91% 2.82% 3.96% Target' 1.86% 2.62% 3.73% Current Quarter Target= 80.0% ML:Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Callan Orange County Sanitation District 12 Investment Manager Returns The table below details the rates of return for the Fund's investment managers over various time periods. 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. 2019 2018 2017 2016 2015 Domestic Fixed Income Long Term Operating Fund 4.70% 1.60% 1.18% 1.58% 0.85% Chandler 4.70% 1.60% 1.18% 1.58% 0.85% Blmbg Govt/Cred 1-5 Year Idx 5.01% 1.38% 1.27% 1.56% 0.97% ML 1-5 Govt/Corp 5.08% 1.40% 1.28% 1.62% 1.05% Liquid Operating Monies^ 2.39% 1.90% 0.91% 0.47% 0.22% Chandler 2.39% 1.90% 0.91% 0.47% 0.22% Citigroup 3-Month Treasury Bill 2.25% 1.86% 0.84% 0.27% 0.03% Total Fund 4.26% 1.72% 1.02% 1.15% 0.80% Target* 4.51% 1.49% 1.19% 1.35% 0.85% *Current Quarter Target= 80.0% ML:Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Callan Orange County Sanitation District 13 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. 2014 2013 2012 2011 2010 Domestic Fixed Income Long Term Operating Fund 1.98% (1.77%) 3.06% 4.59% 4.42% Blmbg Govt/Cred 1-5 Year Idx 1.42% 0.28% 2.24% 3.14% 4.08% ML 1-5 Govt/Corp 1.51% 0.32% 2.47% 3.10% 4.17% Liquid Operating Monies^ 0.09% 0.13% 0.17% 0.24% 0.25% Citigroup 3-Month Treasury Bill 0.03% 0.05% 0.07% 0.08% 0.13% Total Fund 1.73% (1.49%) 2.70% 3.70% 3.68% Target* 1.21% 0.26% 1.99% 2.49% 3.36% Current Quarter Target= 80.0% ML:Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Callan Orange County Sanitation District 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 2.0% 1.8% • • • 1': 1.6% cn 1.4% C • N 1.2% 1.0% 0.8% • 0.6% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% Standard Deviation Seven Year Annualized Risk vs Return Asset Classes vs Asset Class Median 2.0% 1.5% F . , • N� LL 1.0% 0.5% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40% Standard Deviation Callan Orange County Sanitation District 15 Manager Analysis Chandler-Long Term Operating Fund Period Ended December 31, 2019 Investment Philosophy Chandler Asset Management's Short Term Bond strategy is driven by quantitative models and focuses on active duration management, sector selection and term structure. The strategy seeks to achieve consistent above-benchmark returns with low volatility relative to the style's performance benchmark. The firm has a unique focus on high quality fixed income management, and places risk control as a higher objective than return. Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. Quarterly Summary and Highlights Quarterly Asset Growth • Long Term Operating Fund's portfolio posted a 0.50% return Beginning Market Value $548,126,927 for the quarter placing it in the 79 percentile of the Callan Net New Investment $29,000,000 Short Term Fixed Income group for the quarter and in the 35 percentile for the last year. Investment Gains/(Losses) $2,787,071 • Long Term Operating Fund's portfolio underperformed the Ending Market Value $579,913,998 ML:Corp/Gov 1-5 Yr by 0.03% for the quarter and underperformed the ML:Corp/Gov 1-5 Yr for the year by 0.38%. Performance vs Callan Short Term Fixed Income(Gross) 7% 6% 5% 20) BS2 � S 4% 1 (27)"B13 3% 49)7A�6 1) B 5 1) B 5 42) B(4 j 2% "B�5 ®A�6 2)�ARt; �A14 ) 1% (72)4E�IWA(7 0% Last Qtr Last Last 3 Yrs Chandler Last 5 Yrs Last 7 Yrs Last 10 Yrs Since 9/30/95 Yr Inception 10th Percentile 0.81 5.43 3.11 2.60 2.60 2.27 2.97 4.37 25th Percentile 0.66 4.94 2.79 2.31 2.31 2.03 2.53 4.11 Median 0.60 4.52 2.57 2.08 2.08 1.76 2.09 3.87 75th Percentile 0.52 4.10 2.35 1.83 1.83 1.55 1.74 3.61 90th Percentile 0.44 3.51 2.14 1.65 1.65 1.34 1.27 3.09 Long Term Operating Fund •A 0.50 4.70 2.48 1.97 1.97 1.43 2.20 4.22 Blmbg Govt/Cred 1-5 Year Idx 0.50 5.01 2.54 2.03 2.03 1.69 2.13 4.06 ML:Corp/Gov 1-5 Yr 0.53 5.08 2.57 2.07 2.07 1.74 2.19 4.09 Callan Short Term Fixed Income (Gross) Relative Return vs ML:Corp/Gov 1-5 Yr Annualized Seven Year Risk vs Return 0.6%- 4.0% 0.4%------------- ----- ----- ----- ----- ----- 3.5 0.2% -- ----- ----- ----- c 0.0% lff 3.0% 0 2%( )-- q ------ ---- - --- ----- ----- ----- 2.5% (0.4%)-- ------ ----- - N (0.6%)-- --------- ----- ----- ----- ----- 0L (0.8%)-- --------- ----- ----- ----- ----- ----- 1.5% AOF (1.0%)-- --------- ----- - 1.0 (1.2%) --- ----- ----- ----- (1.4%)- 0.5% 2013 2014 2015 2016 2017 2018 2019 0.0 0.5 1.0 1.5 2.0 2.5 Standard Deviation - Long Term Operating Fund Callan 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 12/1/2014. Previous performance reflects PIMCO. Performance vs Callan Short Term Fixed Income(Gross) 7% 4% 20®A� 5) S( S • )) •A(1)17 BS15) 2% 87"g( �7®A 57®Bl �4 6 0®B�17 274 B� 8�4n6( ) �21 I� •A(100) 3"o 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 10th Percentile 5.43 2.00 2.23 2.82 1.17 1.50 1.20 4.46 2.72 4.71 25th Percentile 4.94 1.82 1.74 2.17 1.01 1.27 0.80 2.60 2.30 4.01 Median 4.52 1.69 1.31 1.56 0.91 1.11 0.65 1.81 1.85 3.18 75th Percentile 4.10 1.54 0.95 1.18 0.75 0.87 0.40 1.45 1.65 2.72 90th Percentile 3.51 1.33 0.66 1.03 0.64 0.73 0.29 0.92 1.44 2.41 Long Term Operating Fund •A 4.70 1.60 1.18 1.58 0.85 1.98 (1.77) 3.06 4.59 4.42 Blmbg Govt/Cred 1-5 Year Idx 5.01 1.38 1.27 1.56 0.97 1.42 0.28 2.24 3.14 4.08 ML:Corp/Gov 1-5 Yr ♦ 5.08 1.40 1.28 1.62 1.05 1.51 0.32 2.47 3.10 4.17 Cumulative and Quarterly Relative Return vs ML:Corp/Gov 1-5 Yr 3%- 2%--------- -------- -- ------ ----- -------- -------- ------- -------- -------- -------- W L 1% -------- ------- -------- -------- -------- N 1% (1%)------ - CU --- ---- ----------� -------- -------- ------- -------- -------- -------- (2%)----------------------- -- ----- --- -------- ------- -------- -------- - ----- (3%) ------------ --- -------- -------- -------- (4%)- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Long Term Operating Fund Blmbg Govt/Cred 1-5 Year Idx Callan Short Fixed Inc Risk Adjusted Return Measures vs ML:Corp/Gov 1-5 Yr Rankings Against Callan Short Term Fixed Income (Gross) Seven Years Ended December 31, 2019 2.0 1.5- L" 1.0 0.5 B( A 9791) 0.0 (0.5) A 98 IA(88) (1.0) ■ B(97) (1.5) Alpha Sharpe Excess Return Ratio Ratio 10th Percentile 0.93 1.42 0.91 25th Percentile 0.61 1.21 0.44 Median 0.38 0.96 0.03 75th Percentile 0.21 0.79 (0.31) 90th Percentile 0.06 0.65 (0.61) Long Term Operating Fund •A (0.27) 0.43 (0.58) Blmbg Govt/Cred 1-5 Year Idx (0.05) 0.64 (0.94) Callan Orange County Sanitation District 18 Long Term Operating Fund Bond Characteristics Analysis Summary Portfolio Characteristics This graph compares the manager's portfolio characteristics with the range of characteristics for the portfolios which make up the manager's style group. This analysis illustrates whether the manager's current holdings are consistent with other managers employing the same style. Fixed Income Portfolio Characteristics Rankings Against Callan Short Term Fixed Income as of December 31, 2019 4.0 3.5 3.0 2.5 (9)�(18) (13) ♦ •(13) (66) 2 (89) .0 (93) 1.5 1.0 0.5 0.0 (0.5) (1.0) Average Effective Coupon OA Duration Life Yield Rate Convexity 10th Percentile 2.50 2.94 2.58 3.40 0.05 25th Percentile 2.07 2.48 2.24 2.93 0.04 Median 1.85 2.10 2.05 2.76 0.01 75th Percentile 1.80 1.91 1.97 2.46 (0.02) 90th Percentile 1.76 1.88 1.88 2.22 (0.12) Long Term Operating Fund • 2.41 2.74 - 2.25 - ML:Corp/Gov 1-5 Yr ♦ 2.54 2.70 1.80 2.61 0.08 Sector Allocation and Quality Ratings The first graph compares the manager's sector allocation with the average allocation across all the members of the manager's style. The second graph compares the manager's weighted average quality rating with the range of quality ratings for the style. Sector Allocation Quality Ratings December 31, 2019 > vs Callan Short Term Fixed Income 34.8 Trsy US Trsy 23.0 62.9 0 24A AAA Corp(incl 144A) 47.6 27.3 � 0 22.8 p� Gov Related 1.9 9.7 Lr) AA+ 8.8 Other AA (15) ♦ (31) 7.8 ABS 19.5 1.0 AA Cash 1.2 0.3 A+ Tax-Exempt US Muni 0.2 CMBs 0 3.7 A Weighted Average 02 Quality Rating CMOs 1.2 10th Percentile AA+ 25th Percentile AA RMBS 1 1.9 Median AA- 75th Percentile AA- 90th Percentile A+ 0% 10% 20% 30% 40% 50% 60% 70% 80% Long Term Operating Fund Callan Short Term Fixed Income Long Term Operating Fund • AA ML:Corp/Gov 1-5 Yr ML:Corp/Gov 1-5 Yr ♦ AA Callan Orange County Sanitation District 19 Long Term Operating Fund Portfolio Characteristics Summary As of December 31, 2019 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 Trsy US Trsy 35% 63% CMBS 8% 0% 8% Cash mig'AgA 1% Other Corp(inc°I 144A) 9% 24/o Tax-Exempt US Muni Gov Related 0% 10% Gov Related CMOs Corp(incol 144A) 23% 0% 27/0 Long Term Operating Fund ML:Corp/Gov 1-5 Yr Weighted Average: Duration Duration Distribution 0 Long Term Operating Fund: 2.41 80% 0 ML:Corp/Gov 1-5 Yr: 2.54 O_ 70% ------------- ------------- -------------- - id 62.1 t60% ------------- ----------------------------------------------------------- a0 50% ------------- -------------- ------------- ---------------------------- 0 40% ------------- -- 0--�35$-- C 30% ------------- I- &-- 0 — ------------- ---------------------------- 21.0 220% ----- ------------- ---------------------------- N0- 10% ------ ------------- ---------------------------- 2.0 <1 1-3 3-5 5-7 7-10 >10 Years Duration Weighted Average: Quality Quality Distribution Long Term Operating Fund: AA 100% ML:Corp/Gov 1-5 Yr: AA O68.7 68.2 60% 0 40% ------- ------- ------- U ° --- - ------ ------- 0- 9.0 5.3 0.5 6.3 0% AAA AA A BBB BB B CCC CC C D N/R Quality Rating Callan Orange County Sanitation District 20 Chandler-Liquid Operating Money Period Ended December 31, 2019 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 0.46% Beginning Market Value $68,233,258 return for the quarter placing it in the 21 percentile of the Net New Investment $107,000,000 Callan Money Market Funds group for the quarter and in the 28 percentile for the last year. Investment Gains/(Losses) $413,159 • Liquid Operating Money Net's portfolio underperformed the Ending Market Value $175,646,417 Citigroup 3-Month Treasury Bill by 0.00%for the quarter and underperformed the Citigroup 3-Month Treasury Bill for the year by 0.01%. Performance vs Callan Money Market Funds(Net) 4.0% 3.5% 3.0% 2.5% •(12 27) (28 24) 2.0% 1.5% 27) 0(31 1.0% 26)7(27 26) (27 23) (26 0.5% 21)®(21 20) (22 0.0% Last Qtr Last Last 3 Yrs Chandler Last 5 Yrs Last 7 Yrs Last 10 Yrs Since 9130195 Yr Inception 10th Percentile 0.58 3.21 2.08 1.58 1.58 1.22 1.06 2.52 25th Percentile 0.44 2.31 1.68 1.05 1.05 0.72 0.51 2.28 Median 0.37 1.96 1.37 0.83 0.83 0.59 0.41 2.12 75th Percentile 0.33 1.75 1.18 0.71 0.71 0.51 0.35 1.99 90th Percentile 0.26 1.47 0.94 0.55 0.55 0.40 0.27 1.84 Liquid Operating Money Net • 0.46 2.24 1.58 1.02 1.02 0.72 0.52 2.42 Citigroup 3-Month Treasury Bill ♦ 0.46 2.25 1.65 1.05 1.05 0.76 0.56 2.28 Relative Returns vs Callan Money Market Funds (Net) Citigroup 3-Month Treasury Bill Annualized Seven Year Risk vs Return 0.10%- 2.5% 0.08%------------- ----- ----- ----- ----- ----- 0.06%------------- ----- ---- - ---- 2.0% E 0.04%------------- ----- ---- - (n 1.5% LY 0.02% --- ----- ----- - -- E N � >_ 0.00% (� � 1.0% • • ••- • • - LY (0.02%)-- ----- -- - - - ---- (0.04%)------------------------- ----- ---- o 0.5/o (0.06%) --- ----- ----- ----- (0.08%)- 0.0% 2013 2014 2015 2016 2017 2018 2019 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Standard Deviation - Liquid Operating Money Net Callan Orange County Sanitation District 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 12/1/2014. Previous performance reflects PIMCO. Performance vs Callan Money Market Funds(Net) 4.0% 3.5% 3.0% 2.5% 27 28 2.0% 12"22 1.5% 1.0% 30 35 0.5% 33 30 0.0% (0.5%) 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 10th Percentile 3.21 1.89 1.42 1.32 0.28 0.35 0.30 0.85 0.12 0.24 25th Percentile 2.31 1.72 0.91 0.40 0.06 0.03 0.04 0.06 0.04 0.08 Median 1.96 1.53 0.61 0.14 0.01 0.01 0.01 0.01 0.01 0.02 75th Percentile 1.75 1.30 0.42 0.04 0.01 0.01 0.01 0.01 0.01 0.01 90th Percentile 1.47 1.04 0.23 0.01 0.00 0.00 0.00 0.00 0.00 0.00 Liquid Operating Money Net • 2.24 1.75 0.76 0.32 0.07 (0.06) (0.02) 0.02 0.09 0.10 Citigroup 3-Month Treasury Bill ♦ 2.25 1.86 0.84 0.27 0.03 0.03 0.05 0.07 0.08 0.13 Cumulative and Quarterly Relative Return vs Citigroup 3-Month Treasury Bill 0.4%- 0.2%--------- -------- ---------------- c 0.0% tY a) (0.2%)------------------- ---------------- -- - ---- ------- ---- -- �__ --- - -------- (" (0.4%)--------- -------- ---------------- -------- -------- ------- -------- -------- ---- --- lY (0.6%) ---------------- -------- - (0.8%)- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Liquid Operating Money Net Callan Money Market Funds Risk Adjusted Return Measures vs Citigroup 3-Month Treasury Bill Rankings Against Callan Money Market Funds(Net) Seven Years Ended December 31, 2019 2.0 1.5 1.0 5- 0 0.0 (0.5) •(28) (1.0) (1.5) (2.0) (2.5) (3.0) Alpha Sharpe Excess Return Ratio Ratio 10th Percentile 0.39 0.79 1.22 25th Percentile (0.02) (0.12) (0.30) Median (0.17) (0.49) (2.06) 75th Percentile (0.25) (0.78) (2.36) 90th Percentile (0.36) (1.30) (2.51) Liquid Operating Money Net • (0.06) (0.14) (0.80) Callan Orange County Sanitation District 22 Callan Research/Education C a I I a n I n s t i t u t e Education 4th Quarter 2019 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.com/library to see all of our publications, and www.callan.com/blog to view our blog"Perspectives." For more information contact Barb Gerraty at 415-274-3093/institute@callan.com. New Research from Callan's Experts Long-Dated Private Equity Funds: More Illiquidity Please? I Quarterly Periodicals In this paper,Ashley DeLuce of Callan's Private Equity Consulting Group analyzes long-dated private equity funds,which have terms Private Equity Trends,3Q19 I This newsletterfrom Callan's Private of 15 years or more (some even have no fixed term), and tend to Equity Consulting Group provides a high-level summary of private focus on stable, mature businesses that may not fit a traditional equity activity in the quarter through all the investment stages,from private equity investment profile.Although these companies may fundraising to exits, as well as long-term performance data. not generate the outsized internal rates of return associated with Monthly Periodic Table of Investment Returns, November 2019 traditional private equity investments, they tend to have stronger I A regular update to Callan's Periodic Table covering the major downside protection. In evaluating a potential long-dated fund public equity and fixed income asset classes. investment, investors need to be wary of the strategy's increased illiquidity and how it can impact annual commitment pacing. Active vs. Passive Report,3Q19 I This series of charts compares active managers alongside relevant benchmarks over the long term. Callan 2019 Investment Management Fee Study I This study using Callan's proprietary database is our eighth examination of Market Pulse Flipbook,3Q19 1 A quarterly market reference guide institutional investment management covering trends in the U.S. economy, developments for institutional :- fee trends. The purpose of the study investors, and the latest data for U.S. and global ex-U.S. equities is to provide a detailed analysis on fee and fixed income,alternatives, and defined contribution plans. levels and trends across multiple asset . _ :r Capital Market Review, 3Q19 I This newsletter provides analysis - classes and mandate sizes, for both mA-V and a broad overview of the economy and public and private market "a& active and passive management. activity each quarter across a wide range of asset classes. Gold: Real Asset, Risk Mitigator, or Pet Rock? I In this Hedge Hedge Fund Quarterly, 3Q19 I Callan's Jim McKee of our Hedge Fund Monitor, Jim McKee reviews the history of gold as a form Fund Research Group provides commentary on developments for „< of money, the reasons behind the recent hedge funds and multi-asset class(MAC)strategies. renaissance in gold,the potential roles of gold for institutional investors, and the alternative Real Estate Indicators: Too Hot to Touch or Cool Enough to _...._,.___,...w.:- approaches to invest in gold-related themes. Handle? I Callan's Real Assets Consulting Group identifies seven For some institutional investors,gold can play indicators that, combined with an understanding of prevailing ............._=.._.e a useful role in diversifying risk or enhancing market dynamics, have helped signal when the institutional real returns. For others, particularly those with estate market is overheated or cooled. higher risk tolerances and longer time horizons, a strategic gold allocation has about as much purpose as a Pet Rock. Real Assets Reporter, 3Q19 I This newsletter from our experts offers Callan's data and insights on real estate and other real asset investment topics. Research I Education I Dialogue Events Education Miss out on a Callan conference or workshop? Event summaries Through the"Callan College,"the Callan Institute offers educational and speakers' presentations are available on our website: sessions for industry professionals involved in the investment www.callan.com/library/ decision-making process. It was founded in 1994 to provide both clients and non-clients with basic-to intermediate-level instruction. Please mark your calendar and look forward to upcoming invitations: 2020 June Regional Workshops Introduction to Investments for Institutional Investors June 23—San Francisco April 21-22, 2020—San Francisco June 25—Chicago July 21-22, 2020—Chicago October 13-14, 2020—Chicago 2020 October Regional Workshops This program familiarizes institutional investor trustees and staff October 27—Atlanta and asset management advisers with basic investment theory, October 29—Portland terminology, and practices. It lasts one-and-a-half days and is Please also keep your eye out for upcoming Webinars in 2020! designed for individuals with less than two years of experience We will be sending invitations to register for these events and will with asset-management oversight and/or support responsibilities. also have registration links on our website at www.callan.com/ Tuition is$2,350 per person and includes instruction,all materials, webinarsupcoming. breakfast and lunch on each day, and dinner on the first evening with the instructors. For more information about events, please contact Barb Learn more at www.callan.com/callan-college-intro-2/ Gerraty: 415-274-3093/gerraty@callan.com Alternative Investments for Institutional Investors June 16, 2020—San Francisco November 3, 2020—Chicago Alternative investments like private equity, hedge funds, and real estate can play a key role in any portfolio. In this one-day session, Education: By the Numbers Callan experts will provide instruction about the importance of Unique pieces of research the allocations to alternatives, and how to integrate, evaluate, and Institute generates each year monitor them. Learn from some of Callan's senior consultants and experts, 525 Attendees(on average)of the including the head of Alternatives Consulting Pete Keliuotis. The Institute's annual National Conference session will cover private equity, private credit, hedge funds, real estate, and real assets; why invest in alternatives; risk/return characteristics and liquidity; designing and implementing an 3 70/y Total attendees College"since 1994 of the"Callan alternatives program; and trends and case studies. � �J Tuition is$2,000 per person and includes instruction,all materials, and breakfast and lunch with the instructors. Learn more at: https://www.callan.com/callan-college-alternatives-2/ "Research is the foundation of all we do at Callan, and sharing our best thinking with the investment community is our way of helping to foster dialogue to raise the bar across the industry." Greg Allen,CEO and Chief Research Officer Callan Institute V @CallanLLC ® 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). Alpha measures a portfolio's return in excess of the market return adjusted for risk. It is a measure of the manager's contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively rewarded for the residual risk which was taken for that level of market exposure. Beta measures the sensitivity of rates of portfolio returns to movements in the market index. A portfolio's beta measures the expected change in return per 1% change in the return on the market. If a beta of a portfolio is 1.5, a 1 percent increase in the return on the market will result, on average, in a 1.5 percent increase in the return on the portfolio. The converse would also be true. Downside Risk stems from the desire to differentiate between "good risk" (upside volatility) and "bad risk" (downside volatility). Whereas standard deviation punishes both upside and downside volatility, downside risk measures only the standard deviation of returns below the target. Returns above the target are assigned a deviation of zero. Both the frequency and magnitude of underperformance affect the amount of downside risk. Excess Return Ratio is a measure of risk adjusted relative return. This ratio captures the amount of active management performance (value added relative to an index) per unit of active management risk (tracking error against the index.) It is calculated by dividing the manager's annualized cumulative excess return relative to the index by the standard deviation of the individual quarterly excess returns. The Excess Return Ratio can be interpreted as the manager's active risk/reward tradeoff for diverging from the index when the index is mandated to be the"riskless" market position. Information Ratio measures the manager's market risk-adjusted excess return per unit of residual risk relative to a benchmark. It is computed by dividing alpha by the residual risk over a given time period. Assuming all other factors being equal, managers with lower residual risk achieve higher values in the information ratio. Managers with higher information ratios will add value relative to the benchmark more reliably and consistently. R-Squared indicates the extent to which the variability of the portfolio returns are explained by market action. It can also be thought of as measuring the diversification relative to the appropriate benchmark. An r-squared value of .75 indicates that 75% of the fluctuation in a portfolio return is explained by market action. An r-squared of 1.0 indicates that a portfolio's returns are entirely related to the market and it is not influenced by other factors. An r-squared of zero indicates that no relationship exists between the portfolio's return and the market. Relative Standard Deviation is a simple measure of a manager's risk (volatility) relative to a benchmark. It is calculated by dividing the manager's standard deviation of returns by the benchmark's standard deviation of returns. A relative standard deviation of 1.20, for example, means the manager has exhibited 20% more risk than the benchmark over that time period. A ratio of .80 would imply 20% less risk. This ratio is especially useful when analyzing the risk of investment grade fixed-income products where actual historical durations are not available. By using this relative risk measure over rolling time periods one can illustrate the "implied" historical duration patterns of the portfolio versus the benchmark. Residual Portfolio Risk is the unsystematic risk of a fund, the portion of the total risk unique to the fund (manager) itself and not related to the overall market. This reflects the "bets" which the manager places in that particular asset market. These bets may reflect emphasis in particular sectors, maturities (for bonds), or other issue specific factors which the manager considers a good investment opportunity. Diversification of the portfolio will reduce or eliminate the residual risk of that portfolio. Callan 27 Risk/Reward Statistics Rising Declining Periods refer to the sub-asset class cycles vis-a-vis the broader asset class. This is determined by evaluating the cumulative relative sub-asset class index performance to that of the broader asset class index. For example, to determine the Growth Style cycle, the S&P 500 Growth Index (sub-asset class) performance is compared to that of the S&P 500 Index(broader asset class). Sharpe Ratio is a commonly used measure of risk-adjusted return. It is calculated by subtracting the "risk-free" return (usually 3 Month Treasury Bill) from the portfolio return and dividing the resulting "excess return" by the portfolio's risk level (standard deviation). The result is a measure of return gained per unit of risk taken. Sortino Ratio is a downside risk-adjusted measure of value-added. It measures excess return over a benchmark divided by downside risk. The natural appeal is that it identifies value-added per unit of truly bad risk. The danger of interpretation, however, lies in these two areas: (1)the statistical significance of the denominator, and (2) its reliance on the persistence of skewness in return distributions. Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their sample mean. Standard deviation is used as an estimate of risk since it measures how wide the range of returns typically is. The wider the typical range of returns, the higher the standard deviation of returns, and the higher the portfolio risk. If returns are normally distributed (ie. has a bell shaped curve distribution) then approximately 2/3 of the returns would occur within plus or minus one standard deviation from the sample mean. Total Portfolio Risk is a measure of the volatility of the quarterly excess returns of an asset. Total risk is composed of two measures of risk: market (non-diversifiable or systematic) risk and residual (diversifiable or unsystematic) risk. The purpose of portfolio diversification is to reduce the residual risk of the portfolio. Tracking Error is a statistical measure of a portfolio's risk relative to an index. It reflects the standard deviation of a portfolio's individual quarterly or monthly returns from the index's returns. Typically, the lower the Tracking Error, the more "index-like"the portfolio. Treynor Ratio represents the portfolio's average excess return over a specified period divided by the beta relative to its benchmark over that same period. This measure reflects the reward over the risk-free rate relative to the systematic risk assumed. Note: Alpha, Total Risk, and Residual Risk are annualized. 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 identify any significant sector bets. Average Coupon - The average coupon is the market value weighted average coupon of all securities in the portfolio. The total portfolio coupon payments per year are divided by the total portfolio par value. Average Moody's Rating for Total Portfolio- A measure of the credit quality as determined by the individual security ratings. The ratings for each security, from Moody's Investor Service, are compiled into a composite rating for the whole portfolio. Quality symbols range from Aaa+ (highest investment quality- lowest credit risk) to C (lowest investment quality- highest credit risk). Average Option Adjusted (Effective) Convexity- Convexity is a measure of the portfolio's exposure to interest rate risk. It is a measure of how much the duration of the portfolio will change given a change in interest rates. Generally, securities with negative convexities are considered to be risky in that changes in interest rates will result in disadvantageous changes in duration. When a security's duration changes it indicates that the stream of expected future cash-flows has changed, generally having a significant impact on the value of the security. The option adjusted convexity for each security in the portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Option Adjusted (Effective) Duration- Duration is one measure of the portfolio's exposure to interest rate risk. Generally, the higher a portfolio's duration, the more that its value will change in response to interest rate changes. The option adjusted duration for each security in the portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected stream of cash-flows for the security based on various interest rate scenarios. Expected cash-flows take into account any put or call options embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments. Average Price-The average price is equal to the portfolio market value divided by the number of securities in the portfolio. Portfolios with an average price above par will tend to generate more current income than those with an average price below pa r. 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 ("bulletness"). The purpose of this statistic is to gauge the "bulletness" or "barbellness"of a portfolio relative to its total duration and to that of its benchmark index. Effective Yield-The effective yield is the actual total annualized return that would be realized if all securities in the portfolio were held to their expected maturities. Effective yield is calculated as the internal rate of return, using the current market value and all expected future interest and principal cash flows. This measure incorporates sinking fund paydowns, expected mortgage principal prepayments, and the exercise of any"in-the-money" imbedded put or call options. Weighted Average Life- The weighted average life of a security is the weighted average time to payment of all remaining principal. It is calculated by multiplying each expected future principal payment amount by the time left to the payment. This amount is then divided by the total amount of principal remaining. Weighted average life is commonly used as a measure of the investment life for pass-through security types for comparison to non-pass-through securities. Callan 30 Disclosures Callan Quarterly List as of December 31, 2019 List of Callan's Investment Manager Clients Confidential—For Callan Client Use Only Callan takes its fiduciary and disclosure responsibilities to clients very seriously.We recognize that there are numerous potential conflicts of interest encountered in the investment consulting industry and that it is our responsibility to manage those conflicts effectively and in the best interest of our clients. At Callan,we employ a robust process to identify,manage,monitor and disclose potential conflicts on an on-going basis. The list below is an important component of our conflicts management and disclosure process. It identifies those investment managers that pay Callan fees for educational,consulting,software,database or reporting products and services. We update the list quarterly because we believe that our fund sponsor clients should know the investment managers that do business with Callan,particularly those investment manager clients that the fund sponsor clients may be using or considering using.Please note that if an investment manager receives a product or service on a complimentary basis(e.g. attending an educational event),they are not included in the list below.Callan is committed to ensuring that we do not consider an investment manager's business relationship with Callan,or lack thereof,in performing evaluations for or making suggestions or recommendations to its other clients. Please refer to Callan's ADV Part 2A for a more detailed description of the services and products that Callan makes available to investment manager clients through our Institutional Consulting Group, Independent Adviser Group and Fund Sponsor Consulting Group. Due to the complex corporate and organizational ownership structures of many investment management firms,parent and affiliate firm relationships are not indicated on our list. Fund sponsor clients may request a copy of the most currently available list at any time.Fund sponsor clients may also request specific information regarding the fees paid to Callan by particular fund manager clients. Per company policy,information requests regarding fees are handled exclusively by Callan's Compliance Department. Manager ..- Aberdeen Standard Investments Camplain Investment Partners,LLC Acadian Asset Management LLC Chartwell Investment Partners AEGON USA Investment Management Inc. ClearBridge Investments,LLC Alcentra Cohen&Steers Capital Management, Inc. AllianceBernstein Columbia Threadneedle Investments Allianz Global Investors Columbus Circle Investors Allianz Life Insurance Company of North America Credit Suisse Asset Management American Century Investments Davy Asset Management Limited Amundi Pioneer Asset Management DePrince,Race&Zollo, Inc. AQR Capital Management Diamond Hill Capital Management, Inc. Ares Management LLC Dimensional Fund Advisors LP Ariel Investments,LLC Doubleline Atlanta Capital Management Co., LLC Duff&Phelps Investment Management Co. Aviva Investors Americas DWS AXA Investment Managers EARNEST Partners,LLC Baillie Gifford International,LLC Eaton Vance Management Baird Advisors Epoch Investment Partners, Inc. Baron Capital Management, Inc. Fayez Sarofim&Company Barrow, Hanley, Mewhinney&Strauss,LLC Federated Investors BlackRock Fidelity Institutional Asset Management BMO Global Asset Management Fiera Capital Corporation BNP Paribas Asset Management Financial Engines BNY Mellon Asset Management First Hawaiian Bank Wealth Management Division Boston Partners First State Investments Brandes Investment Partners, L.P. FIS Group, Inc. Brandywine Global Investment Management, LLC Fisher Investments BrightSphere Investment Group Franklin Templeton Brown Brothers Harriman&Company Fred Alger Management, Inc. Cadence Capital Management Fuller&Thaler Asset Management, Inc. Cambiar Investors, LLC GAM(USA)Inc. Capital Group Glenmeade Investment Management,LP Carillon Tower Advisers GlobeFlex Capital, L.P. CastleArk Management,LLC GMO LLC Causeway Capital Management LLC Goldman Sachs Ceredex Value Advisors Green Square Capital Advisors,LLC Callan I Knowledge. Experience. Integrity. Page 1 of 2 Manager Name Manager Name Guggenheim Investments Nuveen GW&K Investment Management OFI Global Asset Management Harbor Capital Group Trust Osterweis Capital Management,LLC Hartford Investment Management Co. Owl Rock Heitman LLC P/E Investments Hotchkis&Wiley Capital Management, LLC Pacific Investment Management Company HSBC Global Asset Management Parametric Portfolio Associates LLC Impax Asset Management Limited Pathway Capital Management Income Research+Management, Inc. Peregrine Capital Management,LLC. Insight Investment Management Limited Perkins Investment Management Intech Investment Management, LLC PFM Asset Management LLC Intercontinental Real Estate Corporation PGIM Fixed Income Invesco PineBridge Investments Investec Asset Management North America, Inc. PNC Capital Advisors, LLC Iridian Asset Management LLC Polen Capital Management Ivy Investments Principal Global Investors J.P. Morgan Putnam Investments, LLC Janus QMA LLC Jennison Associates LLC RBC Global Asset Management Jenson Investment Management Regions Financial Corporation JO Hambro Capital Management Limited Riverbridge Partners LLC Jobs Peak Advisors Robeco Institutional Asset Management, US Inc. John Hancock Investment Management Services, LLC Rockefeller Capital Management Kayne Anderson Rudnick Investment Management, LLC Rothschild&Co.Asset Management US KeyCorp Russell Investments Lazard Asset Management Schroder Investment Management North America Inc. L&B Realty Advisors LLP Segall Bryant&Hamill Legal&General Investment Management America Smith Graham&Co. Investment Advisors,L.P. Lincoln Advisors South Texas Money Management, Ltd. Lincoln National Corporation Sprucegrove Investment Management Ltd. Logan Circle Partners, L.P. State Street Global Advisors Longview Partners Stone Harbor Investment Partners,L.P. Loomis,Sayles&Company, L.P. Strategic Global Advisors Lord Abbett&Company Sun Life Investment Management Los Angeles Capital Management T. Rowe Price Associates, Inc. LSV Asset Management The TCW Group, Inc. MacKay Shields LLC Thompson,Siegel&Walmsley LLC MacKenzie Investments Thornburg Investment Management, Inc. Macquarie Investment Management(MIM) Tri-Star Trust Bank Manulife Investment Management UBS Asset Management Marathon Asset Management,L.P. Van Eck McKinley Capital Management, LLC Versus Capital Group Mellon Victory Capital Management Inc. MFS Investment Management Virtus Investment Partners, Inc. MidFirst Bank Vontobel Asset Management, Inc. Mondrian Investment Partners Limited Voya Montag&Caldwell,LLC Vulcan Value Partners, LLC Morgan Stanley Investment Management Wasatch Global Investors Mountain Lake Investment Management LLC WCM Investment Management Mountain Pacific Advisors,LLC WEDGE Capital Management MUFG Union Bank,N.A. Wellington Management Company, LLP Natixis Investment Managers Wells Fargo Asset Management Neuberger Berman Western Asset Management Company LLC Newton Investment Management Westfield Capital Management Company, LP Nikko Asset Management Co., Ltd. William Blair&Company LLC Northern Trust Asset Management Callan I Knowledge. Experience. Integrity. Page 2 of 2 December 31, 2019 I INVESWENTREPO RT Cill CHANDLER ASSET MANAGEMENT Orange County Sanitation District Period Ending December 31, 2019 C HANDLER ASSET MANAGEMENT, INC. 800.317.4747 www.chandlerasset.com ► `t ' � - ITable of Contents As of December 31, 2019 SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Consolidated Information SECTION 4 Portfolio Holdings SECTION 5 Transactions 1 Q11 Section 1 Economic Update C IEconomic Update ■ Economic growth has slowed over the past year and the consensus forecast calls for GDP growth of 1.8% in 2020 versus 2.3% in 2019. We are not anticipating a recession within our 6-month outlook horizon. We believe the impact of monetary policy on economic growth is somewhat lagged, and the more accommodative monetary policy stance of the Federal Reserve and other global central banks throughout 2019 should provide a tailwind for an ongoing slow economic growth environment in 2020. However, an uncertain outlook on the future path of global central bank policy, lingering uncertainty about trade policy and Brexit, and the upcoming US presidential election potentially sets the stage for a continued volatile financial market environment this year. The recent confirmation of a phase one trade deal is consistent with our view that there will be modest incremental progress on trade in front of the presidential election cycle. • The Federal Open Market Committee (FOMC) kept the target fed funds rate unchanged in December in a range of 1.50%- 1.75%. The vote to keep policy unchanged was unanimous and the Fed's quarterly update on their Summary of Economic Projections was little changed from the September 2019 forecast. Notably the Fed's forecast calls for no change to the fed funds rate in 2020. We believe the hurdle rate to tighten policy remains high, as market-based measures of inflation are still too low. Conversely, if market-based inflation metrics fail to improve, and/or the domestic orglobal economy experiences an exogenous shock, we believe the Fed has left the door open for additional policy accommodation. 0 The Treasury yield curve steepened slightly in December. The 2-year Treasury yield decreased about 4 basis points to 1.57%, the 5-year Treasury yield increased almost seven basis points to 1.69%, and the 10-year Treasury yield increased about fourteen basis points to 1.92%. We believe the increase in longer-term yields were driven by more favorable developments with regard to global trade and Brexit. 3 Q1 Employment Nonfarm Payroll (000's) Unemployment Rate 350 11.0% - 10.0% --- Underemployment Rate(U6) 300 9.0 Unemployment Rate (U3) A A 0 250 ♦ A. I E 200 V/ ^o ♦��� oa / 4-1s 150 V 2 6.0% g 5.0% 0 100 4.0% 50 Non-farm Payroll(000's) -3 month average(000's) 3.0% 0 2.0% P�1 dr �1 b� c1 dr �1 p1 c1 c1 dr V% a I C' d� 7� p1 c1 7� cP d' l9 9 9 9 1� 8 8 8 19 9 9 9 Source:US Department of Labor Source:US Department of Labor U.S. nonfarm payrolls rose by 145,000 in December, below expectations of 160,000. Payrolls for October and November were revised down by a total of 14,000. On a trailing 3-month and 6-month basis, payrolls increased an average of about 184,000 and 189,000 per month, respectively. The unemployment rate was unchanged at 3.5% and the participation rate held steady at 63.2%. A broader measure of unemployment called the U-6, which includes those who are marginally attached to the laborforce and employed part time for economic reasons, declined to 6.7% in December from 6.9% in November. Wages edged up 0.1% in December, below expectations of 0.3%, but the November increase in wages was revised up slightly to 0.3% from 0.2%. The average workweek was unchanged at 34.3 hours. On a year-over-year basis, wages were up 2.9% in December, versus up 3.1% in November. 4 C11% Inflation Consumer Price Index (CPI) Personal Consumption Expenditures (PCE) 3.5% 3.5% 3.0% — 3.0% 2.5% _ 2.5% c ` s 2.0% / 1.5% — 1.5% 0 0 1.0% 1.0% 0.5 o CPI YOY%Change 0 5% PCE Price Deflator YOY%Change ——— Core CPI YOY%Change ——— PCE Core Deflator YOY%Change 0.0% — 0.0% �oG1� �Pb ltQ �d`1d' 94g18 �oG1� �ob19 2/dy l9 ���19 �oG19 �01, �06 ld' �d`1� 94g18 �01, A, It, �d`19 �4g 79 �oG19 Source:US Department of Labor Source:US Department of Commerce The Consumer Price Index (CPI) was up 2.1%year-over-year in November, up from 1.8% in October. Core CPI (CPI less food and energy) was up 2.3% year-over-year in November, unchanged from October. The Personal Consumption Expenditures (PCE) index was up 1.5%year-over-year in November versus up 1.4% year-over-year in October. Core PCE, which is the Fed's primary inflation gauge, was up 1.6% year-over-year in November versus 1.7%year-over-year in October. Core PCE softened and remains below the Fed's 2.0% inflation target. 5 C11% IConsumer Retail Sales YOY % Change Consumer Confidence 7.0% 145 6.0% 140 — 5.0% 135 tw r 4.0% @ 130 U � } 3.0% 125 V V o -0 > c 2.0% — 120 1.0% 115 — 0.0% 110 tiO,t, �0618 1� � tioG1� �Pb19 19 g4�Z9 tio`Z9 O(10 �d~18 �42 4 S(110 o0, /''o �4�1y SPp19 OPc19 Source:US Department of Commerce Source:The Conference Board Retail sales increased 0.2% in November, following growth of 0.4% in October. Excluding auto and gas, retail sales were flat in November, below expectations of 0.4%. On a year-over-year basis, retail sales increased 3.3% in November, versus 3.2% in October. The Consumer Confidence Index was nearly unchanged at 126.5 in Decemberversus 126.8 in November. Overall, the index remains at a strong level. 6 C11% IEconomic Activity Leading Economic Indicators (LEI) Chicago Fed National Activity Index (CFNAI) 0.8% 0.70 0.6% 0.50 0.30 v 0.4% v on L to s a, 0.10 0.2% — a' -0.10 0 0.0% - 5 M -0.30 \V -0.2% -0.50 -0.4% -0.70 �Ot, �0 6 1� �a�1a 9��1� �01'. �Pb19 2fay19 94�19 dot'. �pG1� xPb1� 2Jd`lcQ �4g1� �pG1� �Pb19 2Ja`l.9 94�19 �pG19 Source:The Conference Board Source:Federal Reserve Bank of Chicago The Leading Economic Index (LEI) was flat in November, following a downwardly-revised 0.2% decline in October. Although the index remains slightly positive on a year-over-year basis, up 0.1%, the year-over-year rate of change has decelerated. The Conference Board believes the index points to roughly 2.0% GDP growth in 2020. The Chicago Fed National Activity Index (CFNAI) jumped to +0.56 in November from -0.76 in October. Weakness in vehicle production related to the GM strike (which ended on October 25) contributed to the October decline. On a 3- month moving average basis, the index improved to -0.25 in November versus -0.35 in October. Negative values are generally consistent with below-average growth, but the index suggests that trends are improving. Periods of economic contraction have historically been associated with values below-0.70 on a 3-month moving average basis. 7 CiJJ IHousing Housing Starts S&P/Case-Shiller 20 City Composite Home Price Index 1800 1600 ■Multi Family Housing Starts 7.5/ ■Single Family Housing Starts 0 1400 r 6.5 1200 - 0 1000 c 5.5% s t 800 4.5% 600 0 3.5 400 0 200 2.5 0 1.5% 'cPb1� 2jd`1� 9�g1� �0`1� 'cPbZ9 dot, y4�19 +oG19 Oc�1� ✓d�18 9�r18 ✓4/1� oc�1� ✓d2 l9 9pr19 ✓4/l9 Oc�79 Source:US Department of Commerce Source:S&P Housing starts increased 3.2% in November to a 1.365 million annualized rate and starts in the prior month were revised higher. Permits were also stronger than expected in November, up 1.4%. Multi-family starts rose 4.9% month-over-month in November to an annualized rate of 427,000. Single-family starts rose 2.4% in November to an annualized rate of 938,000. The trends suggest that low mortgage rates and a strong labor market continue to drive housing activity. According to the Case-Shiller 20-City home price index, home prices were up 2.2%year-over- year in October, versus up 2.1% year-over-year in September. The year-over-year pace of price appreciation remains low but suggests that pricing in the sector may be gaining momentum. 8 C11% Manufacturing Institute of Supply Management Purchasing Manager Industrial Production I ndex 64 6.0% 62 5.0% 60 4.0% 58 c 3.0% 56 u 2.0% 54 } \ A EXPANDING 0 1.0% 52 50 0.0% CONTRACTING 48 -1.0% 46 -2.0% OPc �dr ✓�'7 spa OPc 2fa, ✓�� SP,a OPc °� � ��aL q4� �°� P6 day q�g °� Ij I� IcQ 1� 1� 1y 1,q 19 zy 4 -79 .zy 79 1,9 Source:Institute for Supply Management Source:Federal Reserve The Institute for Supply Management (ISM) manufacturing index decreased to 47.2 in December from 48.1 in November. The reading was below expectations and suggests the manufacturing sector remains in contraction. The Industrial Production index declined 0.8% year-over-year in November versus down 1.3% year-over-year in October. On a month-over-month basis, the index rose 1.1% in November, greater than the consensus forecast of 0.9%, following a 0.9% decline in October. The manufacturing component of the index also rose 1.1% in November, following a 0.7% decline in October. The GM strike negatively impacted manufacturing volumes in October. Capacity Utilization increased to 77.3% in November from 76.6% in October, but remains below the long-run average of 79.8% indicating there is still excess capacity for growth. 9 CA„ IGross Domestic Product (GDP) Gross Domestic Product (GDP) Components6.0% Personal Consumption 5.0% GDP QOQ%Change Expenditures 1.0% 0.8% 3.0% 2.1% GDP YOY%Change Gross Private Domestic 4.0% Investment 0.5% 1.1% -1.2% -0.2% 3.0% Net Exports and Imports -0.4% 0.7% -0.7% -0.1% 2.0/ Federal Government Expenditures 0.1% 0.1% 0.5% 0.2% o 1.0/o State and Local (Consumption and 0 -0 Gross Investment) .1% .4% 0.3% 0.1% 0.0% Total 1.1% 3.1% 2.0% 2.1% SOb, �ar ;0 �0. 0 �0' s("0 �0/1 0 �0' sOb, "'V ,7S, 1S ,j6, ,76' l j Zj l� 4 ,l9 1y Source: US Department of Commerce Source: US Department of Commerce According to the third estimate, third quarter 2019 GDP grew at a 2.1% annualized rate. This follows growth of 3.1% in the first quarter, and 2.0% in the second quarter on 2019. Third quarter growth was fueled by consumer spending which contributed 2.1% to GDP in the quarter, while business investment and exports were a drag on the economy. The consensus estimate for the fourth quarter signals a slowdown to 1.9% growth. The consensus forecast calls for GDP growth of 1.6% in the current quarter and 1.8%for the full year 2020. 10 C11% Bond Yields US Treasury Note Yields US Treasury Yield Curve 4.0% — — 4.0% 3.5% 3.5% 3.0% �..� 3.0% 2.5% 40ft 2.5� ° Ooo c .. ^o ..••••' 2.0% % -a 2.0% — 1.0% •••••• 2-Year 1.0% •••••• Dec-19 ° — 5-Year ——— Sep-19 0.5/ 10-Year 0.5% —Dec-18 0.0 0.0 1> 1S 1� 1cQ 1cp 19 79 19 �9 �o�o y' yr yr Syr 61� Source:Bloomberg Source:Bloomberg Treasury yields declined meaningfully in 2019. At year-end, the 3-month T-bill yield was down 81 basis points, the 2-Year Treasury yield was down 92 basis points, and the 10-Year Treasury yield was down 77 basis points. We believe the year-over-year decline in long-term Treasury yields largely reflects a decline in global economic growth and inflation expectations, while the decline in shorter-term rates is in line with the Fed's three 25 basis point rate cuts in 2019. 11 Q11 a Section 2 Account Profile C 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. 13 c,, Icompliance As of December 31, 2019 Orange County Sanitation District Long Term Assets managed by Chandler Asset Management are in full compliance with state law and 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 Supranational "AA" rated or better by a NRSRO; 30%maximum; 5 years max maturity; USD denominated senior unsecured unsubordinated Complies 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 by corporations Complies organized and operating within the U.S.or issued by depository institutions licensed by the U.S. Municipal Securities "A" rated or higher by NRSRO;10%maximum; 5%max issuer; 5 years max maturity Complies Asset Backed/CMOs/Mortgage-backed AA rated or better by a NRSRO; "A"or higher issuer rating by a NRSRO; 20%maximum; 5%max issuer(excluding govt Complies* agency/mbs);5 years max maturity Negotiable CDs "A" rated or better long term debt by a NRSRO;or"A-1"/highest short term rating by a NRSRO; 30%maximum;5%max issuer;5 Complies years max maturity Certificates of Deposit 5%max issuer; 5 years max maturity; Secured/collateralized Complies Banker's Acceptances A-1 rated or equivalent short term rating by a NRSRO; 40%maximum; 5%max issuer; 180 days max maturity Complies A-1 rated or equivalent short term rating by a NRSRO; "A"or better long term debt issuer by a NRSRO; Issued by a domestic Commercial Paper Complies corporation organized and operating in the US with AUM>$500million; 25/o maximum; 5%max issuer; 270 days max maturity Mutual Fund & Money Market Mutual Highest rating or"AAA"rated by two NRSROs;SEC registered adviser with AUM>$500 million and experience greater than 5 years; Fund 10%per one Mutual Fund; 20%max per issuer on Money Market Mutual Funds; 20%max of the District's surplus money Complies Repurchase Agreements 102%col I atera I i zati on Complies Reverse Repurchase Agreements 5%maximum,90 days max maturity Complies LAIF Not used by investment adviser Complies OCIP Not used by investment adviser Complies Avg Duration Not to exceed 60 months - (80%to 120%of the benchmark) Complies Max Per Issuer 5%of portfolio(except Supranationals, U.S.Government,Agencies, Mutual Fund) Complies Maximum Maturity 5 years maximum maturity Complies* *The portfolio has twenty(20)securities with maturities greater than 5 years including four(4)CMOs and sixteen (16)MBS. All securities were inherited from the previous manager and complied at time of purchase. 14 Q1 Portfolio Characteristics As of December 31, 2019 Orange County Sanitation District Long Term PortfolioBenchmark* Portfolio Average Maturity(yrs) 2.67 2.74 2.82 Average Modified Duration 2.53 2.41 2.46 Average Purchase Yield n/a 2.30% 2.36% Average Market Yield 1.71% 1.72% 1.79% Average Quality" AAA AA/Aa1 AA/Aa1 Total Market Value 579,895,190 548,112,320 *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. Several securities were purchased across the Treasury, Certificate of Deposit, Commercial Paper, and Asset Backed sectors of the market to keep the portfolio structure in-line with Chandler targets. The purchased securities ranged in maturity from January 2020 to November 2024. One security was sold and several matured to help facilitate the new holdings in the portfolio and manage the varied cash flows in the portfolio during the reporting period that totaled a net positive $29 million. 15 C,,, ISector Distribution As of December 31, 2019 Orange County Sanitation District Long Term December 31, 2019 September 30, 2019 Negotiable CD ABS 1.4% 7.8/ ABS 8.5% US Treasury US Treasury Agency 30.4% 34.8% 22 8% Agency 25.6% CMO CMO 0.2% 0.3% Commercial w Paper Commercial Foreign n 7% Foreign� Paper . g Corporate 1 `3.4% US Corporate Corporate 21% US Corporate . Money Market 21.8% , 3.6% 20'7% Fund FI Mortgage Pass Mortgage Pass Money Market Supranational Municipal Bonds Thru 1.0% Supranational Municipal Bonds Thru Fund FI 5.8% 0.3% 0.2% 6.1% 0.8% 0.2% 0.7% The sector allocation was relatively stable. Some of the larger changes include the 4.4% increase in the US Treasury allocation, to 34.8% of the portfolio, partially offset by the 2.8% decline in the Agency allocation, to 22.8% of the portfolio. 16 Q1 IIssuers As of December 31, 2019 Orange County Sanitation District Long Term -Account #10268 Issue Name Investment Type %Portfolio Government of United States US Treasury 34.78% Federal Home Loan Bank Agency 9.55% Federal National Mortgage Association Agency 8.39% Federal Home Loan Mortgage Corp Agency 3.97% Inter-American Dev Bank Supranational 3.05% Honda ABS ABS 2.57% John Deere ABS ABS 2.02% Intl Bank Recon and Development Supranational 1.75% MUFG Bank Ltd/NY Commercial Paper 1.71% Nissan ABS ABS 1.62% Toronto Dominion Holdings Foreign Corporate 1.45% Wells Fargo Corp US Corporate 1.41% Bank of Montreal Chicago Negotiable CD 1.38% 1P Morgan Chase&Co US Corporate 1.34% Apple Inc US Corporate 1.24% Bank of America Corp US Corporate 1.21% Charles Schwab Corp/The US Corporate 1.20% Berkshire Hathaway US Corporate 1.16% Royal Bank of Canada Foreign Corporate 1.15% Chubb Corporation US Corporate 1.10% PNC Financial Services Group US Corporate 1.08% American Express ABS ABS 1.08% ChevronTexaco Corp US Corporate 1.06% First American Govt Obligation Fund Class-Z Money Market Fund FI 1.04% IBM Corp US Corporate 1.02% International Finance Corp Supranational 0.95% Intel Corp US Corporate 0.90% US Bancorp US Corporate 0.89% Bank of New York US Corporate 0.89% Federal Farm Credit Bank Agency 0.87% Qualcomm Inc US Corporate 0.87% HSBC Holdings PLC Foreign Corporate 0.79% Honda Motor Corporation US Corporate 0.73% Wal-Mart Stores US Corporate 0.70% General Dynamics Corp US Corporate 0.56% Microsoft US Corporate 0.53% Exxon Mobil Corp US Corporate 0.52% Oracle Corp US Corporate 0.52% 17 C,,, IIssuers As of December 31, 2019 Orange County Sanitation District Long Term —Account #10268 Issue Name Investment Type %Portfolio Morgan Stanley US Corporate 0.52% Toyota ABS ABS 0.48% HSBC Holdings PLC US Corporate 0.43% Merck&Company US Corporate 0.36% New York City Transitional Finance Authority Municipal Bonds 0.25% Deere&Company US Corporate 0.23% BlackRock Inc/New York US Corporate 0.19% Federal National Mortgage Association Mortgage Pass Thru 0.18% Federal Home Loan Mortgage Corp CMO 0.14% University of California Municipal Bonds 0.07% Federal National Mortgage Association CIVIC) 0.03% GNMA Mortgage Pass Thru 0.02% AMRESCO Residental Securities Corp CIVIC) 0.02% SLM Corp ABS 0.00% Small Business Administration ABS 0.00% Federal Home Loan Mortgage Corp Mortgage Pass Thru 0.00% TOTAL 100.00% 18 Cill Quality Distribution As of December 31, 2019 Orange County Sanitation District Long Term December 31, 2019 vs. September 30, 2019 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% o . ■ 0.0/ AAA AA A <A NR 0 12/31/2019 9/30/2019 12/31/19 9.0% 68.2% 16.0% 0.5% 6.3% 09/30/19 8.9% 66.5% 16.9% 0.5% 7.2% Source:S&P Ratings 19 Cill Quality Distribution As of December 31, 2019 Orange County Sanitation District Long Term December 31, 2019 vs. September 30, 2019 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% ■ AAA AA A <A NR ■12/31/2019 9/30/2019 12/31/2019 75.4% 6.1% 17.2% 0.0% 1.3% 09/30/2019 73.3% 6.9% 18.2% 0.0% 1.6% Source:Moody's Ratings 20 Ci„ IDuration Distribution As of December 31, 2019 Orange County Sanitation District Long Term Portfolio Compared to the Benchmark as of December 31, 2019 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% o 0.0/ 0-0.25 0.25 -0.50 0.50- 1 1-2 2 -3 3 -4 4-5 5+ ■Orange County Sanitation District Long Term ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index Portfolio 4.9% 7.9% 8.2% 19.2% 21.8% 22.9% 15.1% 0.0% Benchmark* 0.3% 0.1% 1.8% 34.6% 28.7% 21.2% 13.5% 0.0% *ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index The duration of the portfolio contracted moderately, ending the quarter at 2.41 compared to 2.46 as of September 30, 2019. The Chandler team will be focusing on keeping the duration of the portfolio in a tight band relative to the benchmark in the coming quarter. 21 Q1 IInvestment Performance As of December 31, 2019 Orange County Sanitation District Long Term Total Rate of Return Annualized Since Inception 11/30/2014 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 12 months 2 years 3 years 5 years 10 years Since Inception ■Orange County Sanitation District Long Term ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index Annualized TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Orange County Sanitation District Long Term 0.49% 4.65% 3.07% 2.43% 1.92% N/A 1.84% ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index 0.44% 4.61% 3.04% 2.36% 1.89% N/A 1.79% 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. 22 Cill Icompliance As of December 31, 2019 Orange County Sanitation District Liquid Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy Category Standard Comment Treasury Issues 1 year max maturity; Minimum allocation of 10% Complies U.S.Agencies 20%max issuer; 1 year max maturity Complies "AA" rated or better by a NRSRO; 30%maximum; 1 year max maturity; USD denominated senior unsecured unsubordinated Supra nati ona I Complies 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; 1 year max maturity; Issued by corporations Complies 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; 5%max issuer; 1 year max maturity Complies Negotiable CDs "A" rated or better long term debt by a NRSRO;or"A-1"/highest short term rating by a NRSRO; 30%maximum;5%max issuer;1 Complies year max maturity Certificates of Deposit 5%max issuer;1 year max maturity; Secured/collateralized Complies Banker's Acceptances A-1 rated or equivalent shortterm rating by a NRSRO; 40%maximum; 5%max issuer;180 days max maturity Complies A-1 rated or equivalent shortterm rating by a NRSRO; "A"or better long term debt issuer by a NRSRO; Issued by a domestic Commercial Paper corporation organized and operating in the US with AUM >$500million; 25%maximum; 5%max issuer; 270 days max maturity Complies Mutual Fund & Money Market Mutual Highest rating or"AAA" rated by two NRSROs;SEC registered adviser with AUM>$500 million and experience greater than 5 Fund years; 10%per one Mutual Fund; 20%max per issuer on Money Market Mutual Funds; 20%max of the District's surplus money Complies Repurchase Agreements 102%col lateral i zati on Complies Reverse Repurchase Agreements 5%maximum,90 days max maturity Complies LAI F Not used by i nvestment adviser Complies OCI P Not used by i nvestment adviser Complies Prohibited Municipal Securities Complies Prohibited Mortgage Securities Complies Avg Duration Not to exceed 180 days; Max duration of 1/2 year Complies Max Per Issuer 5%of portfolio(except Supranationals, U.S.Government,Agencies, Mutual Fund) Complies Maximum Maturity 1 year maximum maturity Complies 23 C11% Portfolio Characteristics As of December 31, 2019 Orange County Sanitation District Liquid Benchmark* Portfolio Portfolio Average Maturity(yrs) 0.16 0.21 0.31 Average Modified Duration 0.16 0.21 0.30 Average Purchase Yield n/a 1.82% 2.26% Average Market Yield 1.50% 1.68% 2.01% Average Quality" AAA AA+/Aaa AA+/Aa1 Total Market Value 175,617,185 68,219,230 *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, Certificate of Deposit, Commercial Paper and Corporate sectors of the market to keep the portfolio fully invested in the liquidity strategy. The purchased securities ranged in maturity from January 2020 to August 2020. One security was called and several matured; a net $107mm was contributed to the portfolio during the quarter. 24 Q11 Sector Distribution As of December31, 2019 Orange County Sanitation District Liquid December 31, 2019 September 30, 2019 Foreign Commercial Commercial Corporate Paper Money Market Paper 1.1% 2.5% Fund FI 5.6% Money Market Agency 3.0% Fund FI 6.1% 2.6% Negotiable CD Negotiable CD 2.3% 5.7% US Corporate 6.6% US Corporate 17.0% US Treasury 69.2% US Treasury 78.3% The sector allocation evolved with the large contribution into the strategy in late December. Due to the timing of the contribution most of the proceeds were allocated to the Treasury sector, with the Chandler team having several maturities in January 2020 to facilitate additional holdings in non-Treasury securities when the market is more liquid and not under year-end constraints. 25 Q IIssuers As of December 31, 2019 Orange County Sanitation District Liquid —Account #10282 Issue Name Investment Type %Portfolio Government of United States US Treasury 78.35% Federal Home Loan Bank Agency 6.09% First American Govt Obligation Fund Class-Z Money Market Fund FI 3.00% HSBC Holdings PLC US Corporate 1.44% Toronto Dominion Holdings Negotiable CD 1.15% Bank of New York US Corporate 1.15% General Dynamics Corp US Corporate 1.15% Royal Bank of Canada Foreign Corporate 1.15% Bank of America Corp US Corporate 1.14% Qualcomm Inc US Corporate 1.14% Bank of Montreal Chicago Negotiable CD 1.14% Toyota Motor Corp Commercial Paper 1.14% MUFG Bank Ltd/NY Commercial Paper 0.77% Paccar Financial Commercial Paper 0.63% Wells Fargo Corp US Corporate 0.57% TOTAL 100.00% 26 C11% Quality Distribution As of December 31, 2019 Orange County Sanitation District Liquid December 31, 2019 vs. September 30, 2019 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% ■ AAA AA A <A NR ■12/31/2019 9/30/2019 12/31/19 36.1% 57.3% 6.6% 0.0% 0.0% 09/30/19 24.0% 59.0% 17.0% 0.0% 0.0% Source:S&P Ratings 27 Cill Quality Distribution As of December 31, 2019 Orange County Sanitation District Liquid December 31, 2019 vs. September 30, 2019 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% • AAA AA A <A NR ■12/31/2019 9/30/2019 12/31/2019 92.3% 1.1% 6.6% 0.0% 0.0% 09/30/2019 83.0% 0.7% 16.3% 0.0% 0.0% Source:Moody's Ratings 28 C,,, IDuration Distribution As of December 31, 2019 Orange County Sanitation District Liquid 120.0% Portfolio Compared to the Benchmark as of December 31, 2019 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% ■ 0-0.25 0.25-0.50 0.50- 1 1 - 1.5 1.5 -2 2-2.5 2.5-3 3+ ■Orange County Sanitation District Liquid ICE BAML 3-Month US Treasury Bill Index Portfolio 72.3% 16.2% 11.5% 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 BAML 3-Month U5 Treasury Bill Index The duration of the portfolio contracted moderately, currently 0.21 compared to 0.30 at the end of the prior quarter. The Chandler team continues to utilize the Treasury and Agency sectors to immunize the large forecasted liquidity needs and overlay spread product (i.e. Commercial Paper, Certificates of Deposit, and Corporates) to enhance the total return strategy of the portfolio. 29 C11% IInvestment Performance As of December 31, 2019 Orange County Sanitation District Liquid Total Rate of Return Annualized Since Inception 11/30/2014 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 12 months 2 years 3 years 5 years 10 years Since Inception ■Orange County Sanitation District Liquid ICE BAML 3-Month US Treasury Bill Index Annualized TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Orange County Sanitation District Liquid 0.50% 2.43% 2.17% 1.74% 1.18% N/A 1.17% ICE BAML 3-Month US Treasury Bill Index 0.46% 2.28% 2.08% 1.67% 1.07% N/A 1.06% 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. 30 Q1 Icompliance As of December 31, 2019 OCSD Lehman Exposure Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy Category Standard Comment Treasury Issues 5 years maximum maturity Complies Supranational "AA"or better by 1 of 3 NRSROs; 30%maximum; 5%max; 5 years maturity; Includes only: IADB, IBRD,and IFC per CGC Complies U.S.Agencies 20%max issuer; 5 years maximum maturity Complies U.S.Corporate(MTNs) "A"or better long term rating by 1 of 3 NRSROs; 30%maximum;5%max issuer; 5 years max maturity Complies* Municipal Securities "A"or higher by 1 of NRSROS; 10%maximum; 5%max issuer; 5 years maximum maturity Complies Asset Backed/CMOs/Mortgage-backed 'A or better by 1 of 3 NRSROs; "A"or higher issuer rating by 1 of 3 NRSROs; 20%maximum; 5%max issuer (excluding Complies MBS/govt agency);5 years max maturity "A"or better on its long term debt by 1 of 3 NRSROs • "A1/P1"or highest short term ratings by 1 of 3 NRSROs; 30%maximum; Negoti a bl e CDs Complies 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 shortterm rating by 1 of 3 NRSROS; 40%maximum; 5%max issuer; 180 days max maturity Complies A-1,or equivalent by 1 of 3 NRSROS; "A"or better by 1 of 3 NRSROs, if long term debt issued; 25%maximum; 5%max issuer; Commercial Paper Complies 270 days max maturity Money Market Fund Highest rating by 2 of 3 NRSROs; 20%maximum; 10%max issuer Complies Repurchase Agreements 102%col I atera I ization Complies Reverse Repurchase Agreements 5%maximum,90 days max maturity Complies LAIF Not used by investment adviser Complies Avg Duration Notto exceed 60 months - (80%to 120%of the benchmark) Complies Maximum Maturity 5 years maximum maturity Complies *Account holds$2 million face value(cusip 525ESCOV6)and$600,000 face value(cusip 525ESC1B7)of defaulted Lehman Bros Holdings that were purchased by the previous manager. Complied at time of purchase. 31 C11% Portfolio Characteristics As of December 31, 2019 OCSD Lehman Exposure Portfolio Portfolio Average Maturity(yrs) 12.81 13.55 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 58,241 61,941 *Portfolio is S&P and Moody's,respectively. 32 c�„ Section 3 Consolidated Information C Portfolio Characteristics As of December 31, 2019 Orange County Sanitation District Consolidated Portfolio Portfolio Average Maturity(yrs) 2.15 2.54 Modified Duration 1.90 2.22 Average Purchase Yield 2.18% 2.35% Average Market Yield 1.71% 1.81% Average Quality* AA+/Aa1 AA/Aa1 Total Market Value 755,570,616 616,393,490 *Portfolio is S&P and Moody's respectively. 34 Q11 ISector Distribution As of December 31, 2019 Orange County Sanitation District Consolidated December 31, 2019 September 30, 2019 ABS 6.0% ABS 7.6% Agency US Treasury 18.9% 34.7% Agency US Treasury 22.7% 44.9% CIVIC) 0.1% Commercial Paper CIVIC) 1.9% 0.3% Foreign Commercial Corporate Paper 2.9% US Corporate 2.4% 21.3% Foreign Money Market Corporate Fund FI ` _ 3.2% US Corporate 1.5% Money Market 17.4% Mortgage Pass Fund FI Thru 0.9% 0 2% Supranational Mortgage Pass Supranational Municipal Bonds Negotiable CD 5.4% Negotiable CD Municipal Bonds Thru 4.4% 0.6 0.2% 1.6% 0.7% 0.2% 35 Q1 LI Section 4 Portfolio Holdings 36 G\\ Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration ABS 43814RACO Honda Auto Receivables Trust 2016-4 A3 229,048.89 02/07/2018 226,534.72 99.92 228,869.72 0.04% NR/AAA 0.97 1.210% Due 12/18/2020 2.58% 228,200.39 2.11% 100.08 669.33 AAA 0.09 65478VAD9 Nissan Auto Receivables Trust 2016-B A3 35,911.04 02/12/2018 35,623.47 99.97 35,899.84 0.01% Aaa/NR 1.04 1.320% Due 01/15/2021 1.87% 35,808.53 2.43% 5.27 91.31 AAA 0.02 83162CUO Small Business Administration 2001-20C 1 11,184.56 03/06/2001 11,184.56 101.11 11,309.13 0.00% Aaa/AA+ 1.17 6.340% Due 03/01/2021 6.34% 11,184.56 4.53% 236.37 124.57 AAA 0.61 43814PAC4 Honda Auto Receivables Trust 2017-3A3 1,600,231.50 06/28/2018 1,574,852.83 99.95 1,599,496.95 0.28% NR/AAA 1.72 1.790% Due 09/20/2021 2.78% 1,586,713.43 1.90% 1,034.37 12,783.52 AAA 0.44 43814WAB1 Honda Auto Receivables Trust 2019-1 A2 3,788,865.07 02/19/2019 3,788,621.06 100.39 3,803,580.64 0.66% NR/AAA 1.72 2.750% Due 09/20/2021 2.77% 3,788,701.35 1.91% 3,762.55 14,879.29 AAA 0.45 47788BAD6 John Deere Owner Trust 2017-B A3 324,036.22 07/11/2017 324,012.49 99.91 323,747.32 0.06% Aaa/NR 1.79 1.820% Due 10/15/2021 1.83% 324,026.22 2.11% 262.11 (278.90) AAA 0.31 65478GAD2 Nissan Auto Receivables Trust 2017-B A3 1,563,223.44 11/06/2018 1,538,981.27 99.91 1,561,818.10 0.27% Aaa/NR 1.79 1.750% Due 10/15/2021 3.10% 1,548,456.52 1.98% 1,215.84 13,361.58 AAA 0.40 89239AAB9 Toyota Auto Receivables Trust 2019-A A2A 2,755,642.46 02/05/2019 2,755,392.25 100.35 2,765,287.15 0.48% Aaa/AAA 1.79 2.830% Due 10/15/2021 2.85% 2,755,474.88 1.94% 3,465.99 9,812.27 NR 0.39 47789JAB2 John Deere Owner Trust 2019-AA2 2,765,654.65 03/05/2019 2,765,528.54 100.33 2,774,650.83 0.48% Aaa/NR 1.96 2.850% Due 12/15/2021 2.87% 2,765,565.32 2.03% 3,503.16 9,085.51 AAA 0.39 43815NABO Honda Auto Receivables Trust 2019-3 A2 3,530,000.00 08/20/2019 3,529,752.90 99.98 3,529,301.06 0.61% Aaa/AAA 2.29 1.900% Due 04/15/2022 1.92% 3,529,805.47 1.93% 2,980.89 (504.41) NR 0.92 47788CAC6 John Deere Owner Trust 2018-AA3 1,113,192.86 02/21/2018 1,113,112.82 100.38 1,117,387.06 0.19% Aaa/NR 2.30 2.660% Due 04/18/2022 2.68% 1,113,148.44 1.95% 1,316.04 4,238.62 AAA 0.52 477870AB5 John Deere Owner Trust 2019-B A2 2,800,000.00 07/16/2019 2,799,989.36 100.22 2,806,056.34 0.48% Aaa/NR 2.38 2.280% Due 05/16/2022 2.29% 2,799,991.03 2.03% 2,837.33 6,065.31 AAA 0.83 43814UAG4 Honda Auto Receivables Trust 2018-2 A3 1,710,000.00 05/22/2018 1,709,962.72 100.92 1,725,774.75 0.30% NR/AAA 2.38 3.010% Due 05/18/2022 3.03% 1,709,977.67 1.90% 1,858.68 15,797.08 AAA 0.82 43815HAC1 Honda Auto Receivables Trust 2018-3 A3 3,970,000.00 08/21/2018 3,969,455.32 101.01 4,010,009.66 0.69% Aaa/NR 2.64 2.950% Due 08/22/2022 2.98% 3,969,639.13 1.91% 3,253.19 40,370.53 AAA 0.95 02587AAJ3 American Express Credit Trust 2017-1 A 6,270,000.00 Various 6,174,085.15 100.00 6,269,717.85 1.08% Aaa/NR 2.71 1.930% Due 09/15/2022 2.91% 6,208,527.23 1.98% 5,378.27 61,190.62 AAA 0.11 47788EAC2 John Deere Owner Trust 2018-B A3 4,630,000.00 07/18/2018 4,629,649.05 101.03 4,677,550.10 0.81% Aaa/NR 2.88 3.080% Due 11/15/2022 3.10% 4,629,766.11 2.00% 6,337.96 47,783.99 AAA 0.93 65479GAD1 Nissan Auto Receivables Trust 2018-BA3 3,560,000.00 07/17/2018 3,559,884.66 101.35 3,608,188.16 0.62% Aaa/AAA 3.21 3.060% Due 03/15/2023 3.08% 3,559,920.41 1.92% 4,841.60 48,267.75 NR 1.16 37 Q1 Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 78445JAA5 SLM Student Loan Trust 2008-9 A 12,762.94 08/22/2008 12,711.16 100.28 12,798.05 0.00% Baa3/B 3.32 3.428% Due 04/25/2023 3.50% 12,751.24 3.29% 82.64 46.81 B 2.56 65479JAD5 Nissan Auto Receivables Owner 2019-CA3 4,185,000.00 10/16/2019 4,184,779.03 100.04 4,186,661.45 0.72% Aaa/AAA 4.54 1.930% Due 07/15/2024 1.94% 4,184,787.99 1.92% 3,589.80 1,873.46 NR 2.45 44,704,113.36 45,048,104.16 7.78% Aaa/AAA 2.59 TOTAL ABS 44,854,753.63 2.72% 44,762,445.92 1.96% 46,062.14 285,658.24 Aaa 0.80 Agency 313383HU8 FHLB Note 5,000,000.00 08/13/2015 5,008,950.00 100.03 5,001,405.00 0.86% Aaa/AA+ 0.45 1.750% Due 06/12/2020 1.71% 5,000,827.01 1.69% 4,618.06 577.99 NR 0.44 3135GOD75 FNMA Note 5,000,000.00 11/16/2015 4,955,650.00 99.93 4,996,485.00 0.86% Aaa/AA+ 0.48 1.500% Due 06/22/2020 1.70% 4,995,430.29 1.65% 1,875.00 1,054.71 AAA 0.47 3137EAEK1 FHLMC Note 5,000,000.00 Various 4,986,225.00 100.20 5,009,815.00 0.87% Aaa/AA+ 0.88 1.875% Due 11/17/2020 1.97% 4,995,890.85 1.65% 11,458.33 13,924.15 AAA 0.87 3135GOF73 FNMA Note 7,500,000.00 Various 7,370,726.00 99.97 7,497,390.00 1.29% Aaa/AA+ 0.92 1.500% Due 11/30/2020 1.87% 7,476,152.60 1.54% 9,687.50 21,237.40 AAA 0.91 3137EAEL9 FHLMC Note 7,500,000.00 02/26/2018 7,484,475.00 100.86 7,564,297.50 1.32% Aaa/AA+ 1.13 2.375% Due 02/16/2021 2.45% 7,494,104.79 1.60% 66,796.88 70,192.71 AAA 1.10 313OA7CV5 FHLB Note 5,365,000.00 02/17/2016 5,343,325.40 99.75 5,351,780.64 0.93% Aaa/AA+ 1.14 1.375% Due 02/18/2021 1.46% 5,360,088.51 1.60% 27,253.45 (8,307.87) AAA 1.11 3135GOJ20 FNMA Note 10,000,000.00 Various 10,040,950.00 99.75 9,974,850.00 1.73% Aaa/AA+ 1.16 1.375% Due 02/26/2021 1.28% 10,010,312.02 1.60% 47,743.06 (35,462.02) AAA 1.13 313379R67 FHLB Note 4,000,000.00 08/30/2017 4,030,160.00 100.32 4,012,848.00 0.69% Aaa/AA+ 1.45 1.875% Due 06/11/2021 1.67% 4,011,517.62 1.65% 4,166.67 1,330.38 AAA 1.42 3135GOU35 FNMA Note 7,500,000.00 06/28/2018 7,515,225.00 101.69 7,626,840.00 1.32% Aaa/AA+ 1.48 2.750% Due 06/22/2021 2.68% 7,507,521.63 1.59% 5,156.25 119,318.37 AAA 1.44 3135GOS38 FNMA Note 3,000,000.00 01/30/2017 2,994,570.00 100.77 3,023,121.00 0.53% Aaa/AA+ 2.02 2.000% Due 01/05/2022 2.04% 2,997,782.75 1.61% 29,333.33 25,338.25 AAA 1.95 3135GOT45 FNMA Note 5,000,000.00 05/05/2017 4,972,500.00 100.64 5,032,215.00 0.87% Aaa/AA+ 2.26 1.875% Due 04/05/2022 1.99% 4,987,346.63 1.58% 22,395.83 44,868.37 AAA 2.20 3135GOT94 FNMA Note 5,000,000.00 Various 4,910,990.00 102.26 5,112,900.00 0.89% Aaa/AA+ 3.05 2.375% Due 01/19/2023 2.78% 4,943,098.15 1.61% 53,437.50 169,801.85 AAA 2.91 313383QR5 FHLB Note 5,000,000.00 08/28/2018 5,083,350.00 105.36 5,268,180.00 0.91% Aaa/AA+ 3.44 3.250% Due 06/09/2023 2.87% 5,059,945.13 1.64% 9,930.56 208,234.87 NR 3.25 3137EAEN5 FHLMC Note 10,000,000.00 Various 9,956,500.00 103.86 10,385,980.00 1.79% Aaa/AA+ 3.47 2.750% Due 06/19/2023 2.84% 9,969,495.58 1.60% 9,166.66 416,484.42 AAA 3.30 38 Q%j Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 313383YJ4 FHLB Note 10,000,000.00 Various 10,211,831.00 106.09 10,609,090.01 1.85% Aaa/AA+ 3.69 3.375% Due 09/08/2023 2.88% 10,167,790.72 1.66% 105,937.50 441,299.29 NR 3.44 3130AOF70 FHLB Note 10,000,000.00 Various 10,269,043.75 106.23 10,622,760.00 1.84% Aaa/AA+ 3.94 3.375% Due 12/08/2023 2.79% 10,214,551.39 1.73% 21,562.51 408,208.61 AAA 3.69 3135GOV34 FNMA Note 5,000,000.00 02/27/2019 4,980,850.00 103.09 5,154,685.00 0.90% Aaa/AA+ 4.10 2.500% Due 02/05/2024 2.58% 4,984,110.70 1.71% 50,694.44 170,574.30 AAA 3.85 3130A1XJ2 FHLB Note 11,110,000.00 Various 11,589,031.30 105.00 11,664,988.94 2.01% Aaa/AA+ 4.46 2.875% Due 06/14/2024 1.96% 11,537,260.04 1.71% 15,083.37 127,728.90 NR 4.18 3133EKWV4 FFCB Note 5,000,000.00 08/13/2019 5,048,280.00 100.41 5,020,595.00 0.87% Aaa/AA+ 4.57 1.850% Due 07/26/2024 1.65% 5,044,541.50 1.76% 39,826.39 (23,946.50) AAA 4.33 313OA2UW4 FHLB Note 2,500,000.00 09/12/2019 2,635,950.00 105.23 2,630,825.00 0.46% Aaa/AA+ 4.71 2.875% Due 09/13/2024 1.73% 2,627,764.72 1.71% 21,562.50 3,060.28 AAA 4.37 129,388,582.45 131,561,051.09 22.78% Aaa/AA+ 2.55 TOTAL Agency 128,475,000.00 2.22% 129,385,532.63 1.64% 557,685.79 2,175,518.46 Aaa 2.42 CMO 31398VJ98 FHLMC FHMS K006 A2 56,619.55 11/23/2010 59,830.94 99.83 56,522.66 0.01% Aaa/AA+ 0.07 4.251% Due 01/25/2020 3.54% 56,642.60 0.10% 200.57 (119.94) AAA 0.00 03215PFN4 AMRESCO Residential Securities 1999-1A 119,021.64 05/20/2011 89,377.81 98.20 116,882.82 0.02% NR/A+ 9.49 2.745% Due 06/25/2029 6.46% 103,484.09 3.12% 63.52 13,398.73 BBB 5.75 3133TCE95 FHLMC FSPC E3 A 6,774.15 03/11/1998 6,781.25 100.40 6,801.10 0.00% Aaa/AA+ 12.63 4.025% Due 08/15/2032 3.99% 6,776.76 2.00% 22.72 24.34 AAA 0.50 31397QREO FNMA FNR 2011-3 FA 177,519.84 12/20/2010 177,464.37 100.32 178,095.00 0.03% Aaa/AA+ 21.17 2.485% Due 02/25/2041 2.49% 177,480.83 2.38% 73.52 614.17 AAA 0.06 31394JY35 FHLMC FSPC T-58 2A 670,678.27 06/09/2011 759,543.14 115.31 773,352.41 0.13% Aaa/AA+ 23.75 6.500% Due 09/25/2043 5.40% 736,006.12 0.86% 726.57 37,346.29 AAA 2.63 1,092,997.51 1,131,653.99 0.20% Aaa/AA+ 20.62 TOTAL CMO 1,030,613.45 4.95% 1,080,390.40 1.30% 1,086.90 51,263.59 Aaa 2.40 Commercial Paper 62479LDQ5 MUFG Bank Ltd Discount CP 10,000,000.00 11/19/2019 9,917,138.89 99.40 9,939,833.33 1.71% P-1/A-1 0.32 1.900% Due 04/24/2020 1.94% 9,939,833.33 1.94% 0.00 0.00 NR 0.31 9,917,138.89 9,939,833.33 1.71% P-1/A-1 0.32 TOTAL Commercial Paper 10,000,000.00 1.94% 9,939,833.33 1.94% 0.00 0.00 NR 0.31 39 Q11 Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration Foreign Corporate 404280BF5 HSBC Holdings PLC Note 4,500,000.00 Various 4,429,980.00 101.10 4,549,648.50 0.79% A2/A 2.02 2.650% Due 01/05/2022 3.08% 4,463,515.32 2.09% 58,300.00 86,133.18 A+ 1.93 89114QC48 Toronto Dominion Bank Note 5,000,000.00 02/26/2019 5,094,200.00 105.26 5,263,070.00 0.92% Aal/AA- 3.55 3.500% Due 07/19/2023 3.04% 5,076,147.94 1.96% 78,750.00 186,922.06 AA- 3.29 89114QCA4 Toronto Dominion Bank Note 3,000,000.00 06/12/2019 3,000,570.00 102.44 3,073,179.00 0.53% Aa3/A 4.45 2.650% Due 06/12/2024 2.65% 3,000,507.22 2.07% 4,195.83 72,671.78 AA- 4.18 78013XZU5 Royal Bank of Canada Note 6,500,000.00 09/10/2019 6,581,445.00 101.54 6,600,028.50 1.15% A2/A 4.55 2.550% Due 07/16/2024 2.28% 6,576,334.54 2.19% 75,968.75 23,693.96 AA 4.22 19,106,195.00 19,485,926.00 3.40% Al/A+ 3.67 TOTAL Foreign Corporate 19,000,000.00 2.73% 19,116,505.02 2.09% 217,214.58 369,420.98 AA- 3.43 Money Market Fund FI 31846V567 First American Govt Obligation MMKT Class-Z 6,029,999.80 Various 6,029,999.80 1.00 6,029,999.80 1.04% P-1/A-1+ 0.00 1.47% 6,029,999.80 1.47% 0.00 0.00 F-1 0.00 6,029,999.80 6,029,999.80 1.04% Aaa/AAA 0.00 TOTAL Money Market Fund FI 6,029,999.80 1.47% 6,029,999.80 1.47% 0.00 0.00 AA 0.00 Mortgage Pass Thru 31381PDA3 FNMA FN 466397 335,148.91 12/01/2010 327,896.10 100.38 336,413.43 0.06% Aaa/AA+ 0.84 3.400% Due 11/01/2020 3.80% 334,537.49 2.77% 221.57 1,875.94 AAA 0.85 36225CAZ9 GNMA Pool#G2 80023 14,453.65 08/08/1997 14,693.03 102.71 14,845.20 0.00% Aaa/AA+ 6.98 4.120% Due 12/20/2026 4.01% 14,510.54 2.24% 49.62 334.66 AAA 2.35 36225CC20 GNMA Pool#G2 80088 12,324.73 08/11/1997 12,594.34 101.12 12,462.21 0.00% Aaa/AA+ 7.47 3.410% Due 06/20/2027 3.27% 12,392.24 1.99% 35.02 69.97 AAA 1.47 31348SWZ3 FHLMC FH 786064 1,792.28 02/18/2000 1,748.64 102.49 1,836.91 0.00% Aaa/AA+ 8.01 3.887% Due 01/01/2028 4.09% 1,779.75 2.99% 5.81 57.16 AAA 3.77 31371NUC7 FNMA FN 257179 14,311.29 12/05/2011 15,135.60 105.49 15,097.22 0.00% Aaa/AA+ 8.26 4.500% Due 04/01/2028 3.72% 14,728.36 2.08% 53.67 368.86 AAA 2.72 31417YAY3 FNMA Pool#FN MA0022 15,442.95 12/05/2011 16,332.44 105.51 16,293.58 0.00% Aaa/AA+ 9.26 4.500% Due 04/01/2029 3.76% 15,918.38 2.06% 57.91 375.20 AAA 2.87 3138EG6F6 FNMA FN AL0869 9,516.84 12/05/2011 10,065.01 106.53 10,138.43 0.00% Aaa/AA+ 9.42 4.500% Due 06/01/2029 3.77% 9,812.27 2.10% 8.33 326.16 AAA 2.93 36225CNM4 GNMA Pool#G2 80395 6,225.09 03/15/2000 6,168.65 103.61 6,449.68 0.00% Aaa/AA+ 10.31 3.410% Due 04/20/2030 3.49% 6,205.65 2.45% 17.69 244.03 AAA 3.52 40 Q1 Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 36225CN28 GNMA Pool#G2 80408 46,474.07 03/15/2000 46,002.07 103.61 48,152.90 0.01% Aaa/AA+ 10.39 3.410% Due 05/20/2030 3.49% 46,310.66 2.28% 132.06 1,842.24 AAA 2.86 31403GXF4 FNMA Pool#FN 748678 1,754.07 06/10/2013 1,885.63 109.09 1,913.54 0.00% Aaa/AA+ 13.76 5.000% Due 10/01/2033 4.16% 1,843.56 2.19% 7.31 69.98 AAA 3.55 36225DCB8 GNMA Pool#G2 80965 43,140.68 07/19/2004 43,113.73 104.43 45,051.90 0.01% Aaa/AA+ 14.56 3.230% Due 07/20/2034 3.24% 43,127.57 2.41% 116.12 1,924.33 AAA 4.08 31406XWT5 FNMA Pool#FN 823358 107,908.84 01/11/2006 107,065.80 104.60 112,875.78 0.02% Aaa/AA+ 15.10 4.724% Due 02/01/2035 4.81% 107,470.62 3.21% 424.78 5,405.16 AAA 6.70 31406PQY8 FNMA Pool#FN 815971 146,059.45 06/10/2013 157,013.92 110.16 160,894.71 0.03% Aaa/AA+ 15.18 5.000% Due 03/01/2035 4.21% 153,739.64 2.17% 608.58 7,155.07 AAA 3.82 31407BXH7 FNMA Pool#FN 826080 17,677.82 06/10/2013 19,003.66 110.06 19,455.36 0.00% Aaa/AA+ 15.51 5.000% Due 07/01/2035 4.22% 18,613.40 2.16% 73.66 841.96 AAA 3.81 31376KT22 FNMA FN 357969 91,977.37 06/10/2013 98,875.66 110.21 101,372.77 0.02% Aaa/AA+ 15.68 5.000% Due 09/01/2035 4.22% 96,860.71 2.20% 89.42 4,512.06 AAA 3.86 31403DJZ3 FNMA Pool#745580 87,778.48 06/10/2013 94,361.87 110.23 96,761.73 0.02% Aaa/AA+ 16.43 5.000% Due 06/01/2036 4.26% 92,501.95 2.21% 365.74 4,259.78 AAA 3.88 31410F4V4 FNMA Pool#FN 888336 171,681.01 06/10/2013 184,557.10 110.24 189,264.75 0.03% Aaa/AA+ 16.51 5.000% Due 07/01/2036 4.25% 180,932.39 2.20% 715.34 8,332.36 AAA 3.86 1,156,513.25 1,189,280.10 0.21% Aaa/AA+ 10.83 TOTAL Mortgage Pass Thru 1,123,667.53 4.06% 1,151,285.18 2.46% 2,982.63 37,994.92 Aaa 3.16 Municipal Bonds 64971M5E8 New York NY TE-REV 1,400,000.00 10/27/2010 1,400,000.00 101.88 1,426,334.00 0.25% Aa1/AAA 0.84 4.075% Due 11/01/2020 4.08% 1,400,000.00 1.79% 9,508.33 26,334.00 AAA 0.82 913366EJ5 Univ of California Rgts Med TE-REV 400,000.00 11/09/2010 400,000.00 104.16 416,620.00 0.07% Aa3/AA- 1.37 5.035% Due 05/15/2021 5.04% 400,000.00 1.95% 2,573.44 16,620.00 AA- 1.32 1,800,000.00 1,842,954.00 0.32% Aa1/AAA 0.96 TOTAL Municipal Bonds 1,800,000.00 4.29% 1,800,000.00 1.82% 12,081.77 42,954.00 Aaa 0.93 Negotiable CD 06367BD55 Bank of Montreal Chicago Yankee CD 8,000,000.00 12/20/2019 8,000,389.30 100.00 8,000,336.81 1.38% P-1/A-1 0.21 2.000% Due 03/18/2020 1.98% 8,000,336.81 1.98% 6,222.22 0.00 F-1 0.21 8,000,389.30 8,000,336.81 1.38% Aaa/AA 0.21 TOTAL Negotiable CD 8,000,000.00 1.98% 8,000,336.81 1.98% 6,222.22 0.00 AA 0.21 41 Q11 Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration Supranational 4581XOCX4 Inter-American Dev Bank Note 3,035,000.00 04/05/2017 3,027,807.05 99.94 3,033,251.84 0.52% Aaa/AAA 0.36 1.625% Due 05/12/2020 1.70% 3,034,156.78 1.78% 6,712.83 (904.94) AAA 0.36 45950KCMO International Finance Corp Note 2,970,000.00 01/18/2018 2,961,268.20 100.60 2,987,802.18 0.52% Aaa/AAA 1.07 2.250% Due 01/25/2021 2.35% 2,966,892.88 1.68% 28,957.50 20,909.30 NR 1.04 4581XOCS5 Inter-American Dev Bank Note 5,000,000.00 Various 5,059,610.00 100.21 5,010,325.00 0.87% Aaa/AAA 1.21 1.875% Due 03/15/2021 1.69% 5,010,947.83 1.70% 27,604.17 (622.83) AAA 1.18 45950KCJ7 International Finance Corp Note 2,500,000.00 11/09/2016 2,441,600.00 99.15 2,478,847.50 0.43% Aaa/AAA 1.55 1.125% Due 07/20/2021 1.64% 2,480,703.79 1.68% 12,578.13 (1,856.29) NR 1.52 4581XOCW6 Inter-American Dev Bank Note 3,000,000.00 01/10/2017 2,996,310.00 100.86 3,025,947.00 0.53% Aaa/NR 2.05 2.125% Due 01/18/2022 2.15% 2,998,488.43 1.69% 28,864.58 27,458.57 AAA 1.98 459058FY4 Intl.Bank Recon&Development Note 10,000,000.00 Various 10,006,350.00 100.72 10,071,630.00 1.75% Aaa/NR 2.07 2.000% Due 01/26/2022 1.99% 10,001,985.80 1.65% 86,111.12 69,644.20 AAA 2.00 4581XOCZ9 Inter-American Dev Bank Note 6,500,000.00 Various 6,249,655.00 100.23 6,515,210.00 1.13% Aaa/AAA 2.71 1.750% Due 09/14/2022 2.65% 6,351,948.23 1.66% 33,809.02 163,261.77 AAA 2.62 32,742,600.25 33,123,013.52 5.75% Aaa/AAA 1.78 TOTAL Supranational 33,005,000.00 2.07% 32,845,123.74 1.68% 224,637.35 277,889.78 Aaa 1.73 US Corporate 40428HPR7 HSBC USA Inc Note 2,500,000.00 Various 2,472,287.50 100.05 2,501,277.50 0.43% A2/A 0.18 2.350% Due 03/05/2020 2.64% 2,498,787.06 2.05% 18,930.56 2,490.44 A+ 0.18 747525AD5 Qualcomm Inc Note 5,000,000.00 05/19/2015 4,995,195.40 100.11 5,005,495.00 0.87% A2/A- 0.39 2.250% Due 05/20/2020 2.27% 4,999,631.43 1.96% 12,812.51 5,863.57 NR 0.38 94974BGM6 Wells Fargo Corp Note 5,000,000.00 07/16/2015 5,001,650.00 100.38 5,019,105.00 0.88% A2/A- 0.56 2.600% Due 07/22/2020 2.59% 5,000,183.33 1.91% 57,416.67 18,921.67 A+ 0.55 037833BS8 Apple Inc Callable Note Cont 1/23/2021 4,000,000.00 05/23/2016 4,050,840.00 100.60 4,023,808.00 0.70% Aal/AA+ 1.15 2.250% Due 02/23/2021 1.96% 4,011,583.04 1.68% 32,000.00 12,224.96 NR 1.04 30231GAV4 Exxon Mobil Corp Callable Note Cont 2/1/2021 3,000,000.00 Various 3,016,097.40 100.59 3,017,709.01 0.52% Aaa/AA+ 1.17 2.222% Due 03/01/2021 2.10% 3,003,934.10 1.71% 22,220.00 13,774.91 NR 1.14 369550BE7 General Dynamics Corp Note 3,160,000.00 05/08/2018 3,138,038.00 101.68 3,213,179.64 0.56% A2/A+ 1.36 3.000% Due 05/11/2021 3.24% 3,150,060.99 1.74% 13,166.67 63,118.65 NR 1.33 166764BG4 Chevron Corp Callable Note Cont 4/15/2021 2,500,000.00 05/20/2016 2,485,350.00 100.63 2,515,787.50 0.43% Aa2/AA 1.38 2.100% Due 05/16/2021 2.23% 2,495,960.57 1.60% 6,562.50 19,826.93 NR 1.27 61747WAL3 Morgan Stanley Note 2,800,000.00 06/06/2014 3,200,848.00 105.34 2,949,601.20 0.52% A3/BBB+ 1.58 5.500% Due 07/28/2021 3.24% 2,888,358.97 2.03% 65,450.00 61,242.23 A 1.48 42 Q11 Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 594918BP8 Microsoft Callable Note Cont 7/8/2021 3,045,000.00 Various 3,041,385.15 99.87 3,040,971.47 0.53% Aaa/AAA 1.61 1.550% Due 08/08/2021 1.57% 3,043,841.90 1.63% 18,747.89 (2,870.43) AA+ 1.57 68389XBKO Oracle Corp Callable Note Cont 8/15/2021 3,000,000.00 06/28/2018 2,892,240.00 100.21 3,006,285.00 0.52% Al/A+ 1.71 1.900% Due 09/15/2021 3.08% 2,942,815.60 1.77% 16,783.33 63,469.40 A 1.59 06406RAA5 Bank of NY Mellon Corp Callable Note Cont 1/7/2022 2,500,000.00 02/08/2017 2,504,475.00 101.52 2,538,017.50 0.44% Al/A 2.11 2.600% Due 02/07/2022 2.56% 2,501,843.53 1.83% 26,000.00 36,173.97 AA- 1.94 69353RFB9 PNC Bank Callable Note Cont 1/18/2022 1,000,000.00 03/26/2018 974,940.00 101.41 1,014,074.00 0.18% A2/A 2.13 2.625% Due 02/17/2022 3.32% 986,289.25 1.92% 9,770.83 27,784.75 A+ 1.97 084664BT7 Berkshire Hathaway Note 4,000,000.00 05/23/2017 4,131,120.00 102.74 4,109,608.00 0.71% Aa2/AA 2.37 3.000% Due 05/15/2022 2.30% 4,062,489.70 1.81% 15,333.33 47,118.30 A+ 2.28 95000U2138 Wells Fargo&Company Note 3,000,000.00 Various 2,954,520.00 101.49 3,044,832.00 0.53% A2/A- 2.56 2.625% Due 07/22/2022 2.99% 2,974,118.80 2.02% 34,781.26 70,713.20 A+ 2.44 00440EAUl Chubb INA Holdings Inc Callable Note Cont 9/3/2022 4,169,000.00 Various 4,232,453.17 102.61 4,277,690.00 0.74% A3/A 2.84 2.875% Due 11/03/2022 2.54% 4,204,256.29 1.87% 19,310.58 73,433.71 A 2.56 90331HNL3 US Bank NA Callable Note Cont 12/23/22 5,000,000.00 01/29/2018 4,981,600.00 102.41 5,120,720.00 0.89% Al/AA- 3.07 2.850% Due 01/23/2023 2.93% 4,988,684.71 2.01% 62,541.67 132,035.29 AA- 2.82 808513AT2 Charles Schwab Corp Callable Note Cont 12/25/2022 6,750,000.00 05/21/2019 6,729,480.00 101.96 6,882,246.00 1.20% A2/A 3.07 2.650% Due 01/25/2023 2.74% 6,732,887.27 1.97% 77,512.50 149,358.73 A 2.83 06406RAE7 Bank of NY Mellon Corp Callable Note Cont 12/29/2022 2,500,000.00 Various 2,489,555.00 102.70 2,567,512.50 0.45% Al/A 3.08 2.950% Due 01/29/2023 3.03% 2,494,142.78 2.01% 31,138.89 73,369.72 AA- 2.83 44932HAH6 IBM Credit Corp Note 5,670,000.00 Various 5,603,264.40 102.94 5,836,510.90 1.02% A2/A 3.10 3.000% Due 02/06/2023 3.26% 5,627,320.10 2.02% 68,512.50 209,190.80 NR 2.92 00440EAP2 Chubb INA Holdings Inc Note 2,000,000.00 05/24/2018 1,937,000.00 102.13 2,042,688.00 0.36% A3/A 3.20 2.700% Due 03/13/2023 3.42% 1,957,963.98 2.01% 16,200.00 84,724.02 A 3.03 084670BR8 Berkshire Hathaway Callable Note Cont 1/15/2023 2,500,000.00 04/20/2018 2,440,950.00 102.54 2,563,560.00 0.45% Aa2/AA 3.21 2.750% Due 03/15/2023 3.28% 2,461,349.69 1.88% 20,243.06 102,210.31 A+ 2.89 58933YAF2 Merck&Co Note 2,000,000.00 10/26/2018 1,948,640.00 103.04 2,060,754.00 0.36% Al/AA 3.38 2.800% Due 05/18/2023 3.41% 1,961,874.24 1.87% 6,688.89 98,879.76 A+ 3.21 46625HRL6 JP Morgan Chase Callable Note Cont 3/18/2023 5,000,000.00 Various 4,821,910.00 101.82 5,090,975.00 0.88% A2/A- 3.38 2.700% Due 05/18/2023 3.59% 4,862,536.18 2.11% 16,125.00 228,438.82 AA- 3.06 69353RFL7 PNC Bank Callable Note Cont 5/9/2023 5,000,000.00 Various 4,993,318.05 104.91 5,245,340.00 0.91% A2/A 3.44 3.500% Due 06/08/2023 3.53% 4,995,404.19 1.98% 11,180.56 249,935.81 NR 3.16 43 Q1 Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 DescriptionCUSIP Security id Am Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 166764AH3 Chevron Corp Callable Note Cont 3/24/2023 3,500,000.00 11/08/2018 3,441,095.00 104.11 3,643,720.50 0.63% Aa2/AA 3.48 3.191% Due 06/24/2023 3.59% 3,455,576.40 1.87% 2,171.65 188,144.10 NR 3.07 931142EK5 Wal-Mart Stores Callable Note Cont 5/26/2023 3,880,000.00 Various 3,878,991.40 105.15 4,079,816.12 0.70% Aa2/AA 3.49 3.400% Due 06/26/2023 3.41% 3,879,297.02 1.83% 1,832.22 200,519.10 AA 3.22 02665WCJ8 American Honda Finance Note 845,000.00 07/11/2018 843,538.15 104.69 884,653.32 0.15% A2/A 3.54 3.450% Due 07/14/2023 3.49% 843,966.13 2.07% 13,523.52 40,687.19 NR 3.28 02665WCQ2 American Honda Finance Note 2,000,000.00 Various 1,998,320.00 105.60 2,112,076.00 0.37% A2/A 3.78 3.625% Due 10/10/2023 3.64% 1,998,713.91 2.07% 16,312.50 113,362.09 NR 3.51 24422EUM9 John Deere Capital Corp Note 1,250,000.00 11/28/2018 1,250,237.50 105.98 1,324,747.50 0.23% A2/A 3.78 3.650% Due 10/12/2023 3.64% 1,250,184.44 2.00% 10,012.15 74,563.06 A 3.51 06051GHF9 Bank of America Corp Callable Note 1X 3/5/2023 6,675,000.00 Various 6,770,625.75 103.79 6,927,682.13 1.21% A2/A- 4.18 3.550% Due 03/05/2024 3.10% 6,756,268.34 2.30% 76,354.59 171,413.79 A+ 2.97 09247XAL5 Blackrock Inc Note 1,000,000.00 05/09/2019 1,036,330.00 106.39 1,063,928.00 0.19% Aa3/AA- 4.22 3.500% Due 03/18/2024 2.69% 1,031,550.28 1.91% 10,013.89 32,377.72 NR 3.89 458140BD3 Intel Corp Callable Note Cont 3/11/2024 5,000,000.00 05/09/2019 5,025,900.00 103.87 5,193,700.00 0.90% Al/A+ 4.36 2.875% Due 05/11/2024 2.76% 5,022,478.97 1.91% 19,965.28 171,221.03 A+ 3.94 037833CU2 Apple Inc Callable Note Cont 3/11/2024 3,000,000.00 05/17/2019 3,017,760.00 103.44 3,103,317.00 0.54% Aal/AA+ 4.36 2.850% Due 05/11/2024 2.72% 3,015,484.37 1.99% 11,875.00 87,832.63 NR 3.94 02665WCZ2 American Honda Finance Note 1,219,000.00 07/10/2019 1,213,843.63 101.12 1,232,643.05 0.21% A2/A 4.49 2.400% Due 06/27/2024 2.49% 1,214,335.93 2.14% 325.07 18,307.12 NR 4.24 46647PAUO JP Morgan Chase&Co Callable Note Cont 7/23/2023 2,500,000.00 09/12/2019 2,632,175.00 105.41 2,635,125.00 0.46% A2/A- 4.56 3.797% Due 07/23/2024 2.35% 2,622,116.16 2.33% 41,661.53 13,008.84 AA- 4.13 116,145,973.50 118,889,155.84 20.65% Al/A+ 2.72 TOTAL US Corporate 115,963,000.00 2.88% 115,936,289.65 1.94% 883,476.60 2,952,866.19 A+ 2.46 US Treasury 912828357 US Treasury Note 5,000,000.00 12/20/2019 5,001,953.13 100.03 5,001,325.00 0.87% Aaa/AA+ 0.08 2.000% Due 01/31/2020 1.62% 5,001,502.41 1.67% 41,847.83 (177.41) AAA 0.08 912828XE5 US Treasury Note 5,000,000.00 12/21/2016 4,966,423.00 99.94 4,997,240.00 0.86% Aaa/AA+ 0.42 1.500% Due 05/31/2020 1.70% 4,995,963.27 1.63% 6,557.38 1,276.73 AAA 0.41 912828L99 US Treasury Note 10,000,000.00 Various 9,850,311.40 99.77 9,976,950.00 1.72% Aaa/AA+ 0.84 1.375% Due 10/31/2020 1.81% 9,965,433.22 1.65% 23,420.33 11,516.78 AAA 0.82 9128281\189 US Treasury Note 6,000,000.00 Various 5,895,840.41 99.72 5,983,362.00 1.04% Aaa/AA+ 1.09 1.375% Due 01/31/2021 1.81% 5,972,750.16 1.63% 34,524.45 10,611.84 AAA 1.07 44 Ci„ Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTIVI Accrued Int. Gain/Loss Fitch Duration 912828T34 US Treasury Note 7,000,000.00 Various 6,757,914.08 99.20 6,943,671.00 1.20% Aaa/AA+ 1.75 1.125% Due 09/30/2021 1.88% 6,911,972.91 1.59% 20,010.25 31,698.09 AAA 1.72 912828T67 US Treasury Note 6,000,000.00 12/13/2016 5,813,691.98 99.40 5,963,904.00 1.03% Aaa/AA+ 1.84 1.250% Due 10/31/2021 1.92% 5,930,056.08 1.58% 12,774.73 33,847.92 AAA 1.80 912828U65 US Treasury Note 7,000,000.00 12/28/2016 6,900,492.20 100.31 7,021,602.00 1.21% Aaa/AA+ 1.92 1.750% Due 11/30/2021 2.06% 6,961,293.29 1.59% 10,710.38 60,308.71 AAA 1.87 912828V72 US Treasury Note 3,000,000.00 02/27/2017 3,004,814.74 100.59 3,017,577.00 0.52% Aaa/AA+ 2.09 1.875% Due O1/31/2022 1.84% 3,002,037.83 1.59% 23,539.40 15,539.17 AAA 2.02 912828.176 US Treasury Note 5,000,000.00 04/25/2017 4,976,383.94 100.38 5,018,750.00 0.87% Aaa/AA+ 2.25 1.750% Due 03/31/2022 1.85% 4,989,241.57 1.58% 22,233.61 29,508.43 AAA 2.19 912828XW5 US Treasury Note 5,000,000.00 07/25/2017 4,973,454.25 100.41 5,020,705.00 0.87% Aaa/AA+ 2.50 1.750% Due 06/30/2022 1.86% 4,986,564.90 1.58% 240.38 34,140.10 AAA 2.44 9128281-24 US Treasury Note 6,000,000.00 09/27/2017 5,987,832.60 100.73 6,044,064.00 1.05% Aaa/AA+ 2.67 1.875% Due 08/31/2022 1.92% 5,993,415.53 1.59% 38,015.11 50,648.47 AAA 2.58 9128281-57 US Treasury Note 20,000,000.00 Various 19,778,320.32 100.40 20,080,460.00 3.48% Aaa/AA+ 2.75 1.750% Due 09/30/2022 1.98% 19,878,854.58 1.60% 88,934.42 201,605.42 AAA 2.66 9128281VI80 US Treasury Note 8,000,000.00 12/22/2017 7,907,500.00 101.13 8,090,312.00 1.40% Aaa/AA+ 2.92 2.000% Due 11/30/2022 2.25% 7,945,322.22 1.60% 13,989.07 144,989.78 AAA 2.82 912828N30 US Treasury Note 5,000,000.00 01/24/2018 4,926,562.50 101.52 5,076,170.00 0.88% Aaa/AA+ 3.00 2.125% Due 12/31/2022 2.44% 4,955,350.33 1.60% 291.90 120,819.67 AAA 2.90 9128284139 US Treasury Note 10,000,000.00 Various 9,887,265.63 102.77 10,277,340.00 1.78% Aaa/AA+ 3.25 2.500% Due 03/31/2023 2.75% 9,925,935.46 1.62% 63,524.59 351,404.54 AAA 3.10 9128281369 US Treasury Note 5,000,000.00 05/30/2018 4,757,226.56 100.00 5,000,195.00 0.86% Aaa/AA+ 3.42 1.625% Due 05/31/2023 2.67% 4,834,339.70 1.62% 7,103.83 165,855.30 AAA 3.30 912828U57 US Treasury Note 15,000,000.00 Various 14,723,632.81 101.78 15,267,180.00 2.64% Aaa/AA+ 3.92 2.125% Due 11/30/2023 2.53% 14,776,117.51 1.65% 27,868.85 491,062.49 AAA 3.74 912828V80 US Treasury Note 7,500,000.00 Various 7,491,503.91 102.32 7,673,730.00 1.34% Aaa/AA+ 4.09 2.250% Due 01/31/2024 2.27% 7,492,740.98 1.66% 70,618.20 180,989.02 AAA 3.86 912828W48 US Treasury Note 10,000,000.00 04/24/2019 9,911,718.75 101.86 10,185,550.00 1.77% Aaa/AA+ 4.17 2.125% Due 02/29/2024 2.32% 9,924,230.66 1.66% 71,806.32 261,319.34 AAA 3.95 912828WJ5 US Treasury Note 7,000,000.00 06/10/2019 7,193,046.88 103.47 7,243,089.00 1.25% Aaa/AA+ 4.38 2.500% Due 05/15/2024 1.91% 7,171,168.23 1.67% 22,596.15 71,920.77 AAA 4.13 912828XX3 US Treasury Note 5,000,000.00 07/12/2019 5,028,710.94 101.39 5,069,335.00 0.87% Aaa/AA+ 4.50 2.000% Due 06/30/2024 1.88% 5,026,017.31 1.68% 274.73 43,317.69 AAA 4.29 912828WUO US Treasury Inflation Index Note 11,270,792.00 Various 11,157,868.09 100.60 11,337,898.31 1.96% Aaa/AA+ 4.54 0.125% Due 07/15/2024 0.23% 11,219,344.40 (0.01%) 6,508.28 118,553.91 AAA 4.53 45 Q1 Holdings Report As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTIVI Accrued Int. Gain/Loss Fitch Duration 912828YH7 US Treasury Note 14,000,000.00 Various 13,859,296.88 99.17 13,883,520.00 2.40% Aaa/AA+ 4.75 1.500% Due 09/30/2024 1.72% 13,860,371.27 1.68% 53,360.65 23,148.73 AAA 4.55 9128283.17 US Treasury Note 16,500,000.00 Various 16,783,886.72 102.04 16,837,095.00 2.91% Aaa/AA+ 4.92 2.125% Due 11/30/2024 1.76% 16,781,847.12 1.69% 30,655.74 55,247.88 AAA 4.65 197,535,651.72 201,011,024.31 34.78% Aaa/AA+ 3.15 TOTAL US Treasury 199,270,792.00 1.95% 198,501,870.94 1.54% 691,406.58 2,509,153.37 Aaa 3.03 567,620,155.03 577,252,332.95 100.00% Aal/AA 2.74 TOTAL PORTFOLIO 568,552,826.41 2.31% 568,549,613.42 1.72% 2,642,856.56 8,702,719.53 Aaa 2.41 TOTAL MARKET VALUE PLUS ACCRUALS 579,895,189.51 46 c1, Holdings Report As of December 31, 2019 Orange County Sanitation District Liquid - Account #10282 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration Agency 313384RU5 FHLB Discount Note 1,200,000.00 12/20/2019 1,198,691.67 99.94 1,199,319.67 0.68% P-1/A-1+ 0.04 1.570% Due 01/14/2020 1.59% 1,199,319.67 1.59% 0.00 0.00 F-1+ 0.04 313384SD2 FHLB Discount Note 5,000,000.00 12/20/2019 4,992,586.11 99.90 4,995,202.78 2.84% P-1/A-1+ 0.06 1.570% Due 01/23/2020 1.59% 4,995,202.78 1.59% 0.00 0.00 F-1+ 0.06 313384SK6 FHLB Discount Note 4,500,000.00 12/20/2019 4,492,175.00 99.88 4,494,522.50 2.56% P-1/A-1+ 0.08 1.565% Due 01/29/2020 1.59% 4,494,522.50 1.59% 0.00 0.00 F-1+ 0.08 10,683,452.78 10,689,044.95 6.09% Aaa/AAA 0.07 TOTAL Agency 10,700,000.00 1.59% 10,689,044.95 1.59% 0.00 0.00 Aaa 0.07 Commercial Paper 69372AAF9 Paccar Financial Discount CP 1,100,000.00 10/18/2019 1,094,969.03 99.93 1,099,208.61 0.63% P-1/A-1 0.04 1.850% Due 01/15/2020 1.88% 1,099,208.61 1.88% 0.00 0.00 NR 0.04 89233GAH9 Toyota Motor Credit Discount CP 2,000,000.00 04/23/2019 1,961,884.44 99.89 1,997,724.44 1.14% P-1/A-1+ 0.05 2.560% Due 01/17/2020 2.63% 1,997,724.44 2.63% 0.00 0.00 NR 0.05 62479LDQ5 MUFG Bank Ltd Discount CP 1,365,000.00 11/19/2019 1,353,689.46 99.40 1,356,787.25 0.77% P-1/A-1 0.32 1.900% Due 04/24/2020 1.94% 1,356,787.25 1.94% 0.00 0.00 NR 0.31 4,410,542.93 4,453,720.30 2.54% P-1/A-1 0.13 TOTAL Commercial Paper 4,465,000.00 2.24% 4,453,720.30 2.24% 0.00 0.00 NR 0.13 Foreign Corporate 78012KC62 Royal Bank of Canada Note 2,000,000.00 10/17/2019 2,001,340.00 100.04 2,000,732.00 1.15% Aa2/AA- 0.17 2.125% Due 03/02/2020 1.93% 2,000,614.59 1.89% 14,048.61 117.41 AA 0.17 2,001,340.00 2,000,732.00 1.15% Aa2/AA- 0.17 TOTAL Foreign Corporate 2,000,000.00 1.93% 2,000,614.59 1.89% 14,048.61 117.41 AA 0.17 Money Market Fund FI 31846V567 First American Govt Obligation MMKT Class-Z 5,270,167.57 Various 5,270,167.57 1.00 5,270,167.57 3.00% P-1/A-1+ 0.00 1.47% 5,270,167.57 1.47% 0.00 0.00 F-1 0.00 5,270,167.57 5,270,167.57 3.00% Aaa/AAA 0.00 TOTAL Money Market Fund FI 5,270,167.57 1.47% 5,270,167.57 1.47% 0.00 0.00 AA 0.00 Negotiable CD 89114M2Z9 Toronto Dominion Bank Yankee CD 2,000,000.00 12/20/2019 2,000,285.65 100.01 2,000,184.83 1.15% P-1/A-1+ 0.06 2.200% Due 01/23/2020 2.03% 2,000,184.83 2.03% 19,677.78 0.00 F-1+ 0.06 47 C11% Holdings Report As of December 31, 2019 Orange County Sanitation District Liquid - Account #10282 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 06367BDS5 Bank of Montreal Chicago Yankee CD 1,000,000.00 12/19/2019 1,000,049.48 100.00 1,000,042.33 0.57% P-1/A-1 0.21 2.000% Due 03/18/2020 1.98% 1,000,042.33 1.98% 777.78 0.00 F-1 0.21 06367BED7 Bank of Montreal Chicago Yankee CD 1,000,000.00 12/23/2019 1,000,000.00 100.00 1,000,000.00 0.57% P-1/A-1 0.39 1.890% Due 05/21/2020 1.89% 1,000,000.00 1.89% 420.00 0.00 F-1+ 0.39 4,000,335.13 4,000,227.16 2.29% Aaa/AAA 0.18 TOTAL Negotiable CD 4,000,000.00 1.98% 4,000,227.16 1.98% 20,875.56 0.00 Aaa 0.18 US Corporate 94974BGF1 Wells Fargo Corp Note 1,000,000.00 05/21/2019 996,600.00 100.02 1,000,150.00 0.57% A2/A- 0.08 2.150% Due 01/30/2020 2.65% 999,608.73 1.95% 9,018.06 541.27 A+ 0.08 06406HCZO Bank of New York Callable Note Cont 1/24/2020 2,000,000.00 Various 1,994,230.00 100.01 2,000,168.00 1.15% Al/A 0.15 2.150% Due 02/24/2020 2.46% 1,998,995.29 1.93% 15,169.44 1,172.71 AA- 0.07 40428HPR7 HSBC USA Inc Note 2,500,000.00 05/10/2019 2,493,300.00 100.05 2,501,277.50 1.44% A2/A 0.18 2.350% Due 03/05/2020 2.69% 2,498,551.35 2.05% 18,930.56 2,726.15 A+ 0.18 06051GFN4 Bank of America Corp Note 2,000,000.00 08/07/2019 2,001,960.00 100.09 2,001,872.00 1.14% A2/A- 0.31 2.250% Due 04/21/2020 2.11% 2,000,849.84 1.93% 8,750.00 1,022.16 A+ 0.30 369550BA5 General Dynamics Corp Note 2,000,000.00 08/13/2019 2,011,340.00 100.35 2,006,934.00 1.15% A2/A+ 0.36 2.875% Due 05/11/2020 2.10% 2,005,502.00 1.90% 7,986.11 1,432.00 NR 0.36 747525AD5 Qualcomm Inc Note 2,000,000.00 08/07/2019 2,002,700.00 100.11 2,002,198.00 1.14% A2/A- 0.39 2.250% Due 05/20/2020 2.07% 2,001,326.32 1.96% 5,125.00 871.68 NR 0.38 11,500,130.00 11,512,599.50 6.59% A2/A 0.26 TOTAL US Corporate 11,500,000.00 2.33% 11,504,833.53 1.96% 64,979.17 7,765.97 A+ 0.24 US Treasury 912796RT8 US Treasury Bill 7,500,000.00 12/20/2019 7,496,905.21 100.00 7,499,690.52 4.27% P-1/A-1+ 0.01 1.486% Due 01/02/2020 1.51% 7,499,690.52 1.51% 0.00 0.00 F-1+ 0.01 912796WM7 US Treasury Bill 7,500,000.00 12/20/2019 7,495,320.31 99.98 7,498,128.12 4.27% P-1/A-1+ 0.02 1.498% Due 01/07/2020 1.52% 7,498,128.12 1.52% 0.00 0.00 F-1+ 0.02 912796RY7 US Treasury Bill 21,000,000.00 Various 20,909,107.77 99.86 20,971,772.94 11.94% P-1/A-1+ 0.08 1.669% Due 01/30/2020 1.70% 20,971,772.94 1.70% 0.00 0.00 F-1+ 0.08 9128281-152 US Treasury Note 13,500,000.00 Various 13,396,542.97 99.97 13,495,653.00 7.72% Aaa/AA+ 0.08 1.250% Due 01/31/2020 2.35% 13,488,027.47 1.62% 70,618.20 7,625.53 AAA 0.08 912828UL2 US Treasury Note 5,000,000.00 08/27/2019 4,988,671.88 99.98 4,998,880.00 2.86% Aaa/AA+ 0.08 1.375% Due 01/31/2020 1.91% 4,997,821.52 1.63% 28,770.38 1,058.48 AAA 0.08 9128283S7 US Treasury Note 30,000,000.00 Various 29,961,132.82 100.03 30,007,950.00 17.23% Aaa/AA+ 0.08 2.000% Due 01/31/2020 2.02% 29,999,426.25 1.67% 251,086.97 8,523.75 AAA 0.08 48 Q11 Holdings Report As of December 31, 2019 Orange County Sanitation District Liquid - Account #10282 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration 912828MP2 US Treasury Note 5,000,000.00 12/23/2019 5,013,671.88 100.23 5,011,585.00 2.89% Aaa/AA+ 0.13 3.625% Due 02/15/2020 1.70% 5,011,608.20 1.74% 68,461.28 (23.20) AAA 0.12 912796TH2 US Treasury Bill 7,500,000.00 12/20/2019 7,476,699.31 99.73 7,479,572.00 4.26% P-1/A-1+ 0.18 1.532% Due 03/05/2020 1.56% 7,479,572.00 1.56% 0.00 0.00 F-1+ 0.18 912828VJ6 US Treasury Note 15,000,000.00 12/20/2019 15,022,265.63 100.12 15,018,165.00 8.55% Aaa/AA+ 0.50 1.875% Due 06/30/2020 1.59% 15,021,210.94 1.63% 772.66 (3,045.94) AAA 0.50 912828XY1 US Treasury Note 5,000,000.00 12/24/2019 5,022,070.31 100.42 5,021,095.00 2.86% Aaa/AA+ 0.50 2.500% Due 06/30/2020 1.63% 5,021,362.17 1.65% 343.41 (267.17) AAA 0.50 912828W9 US Treasury Note 15,000,000.00 12/20/2019 15,049,804.69 100.30 15,045,705.00 8.63% Aaa/AA+ 0.67 2.125% Due 08/31/2020 1.64% 15,048,025.95 1.66% 107,709.48 (2,320.95) AAA 0.65 912828L32 US Treasury Note 5,000,000.00 12/24/2019 4,991,015.63 99.83 4,991,600.00 2.86% Aaa/AA+ 0.67 1.375% Due 08/31/2020 1.64% 4,991,232.12 1.63% 23,231.46 367.88 AAA 0.66 136,823,208.41 137,039,796.58 78.35% Aaa/AAA 0.23 TOTAL US Treasury 137,000,000.00 1.79% 137,027,878.20 1.64% 550,993.84 11,918.38 Aaa 0.23 174,689,176.82 174,966,288.06 100.00% Aaa/AA+ 0.21 TOTAL PORTFOLIO 174,935,167.57 1.82% 174,946,486.30 1.68% 650,897.18 19,801.76 Aaa 0.21 TOTAL MARKET VALUE PLUS ACCRUALS 175,617,185.24 49 Q11 Holdings Report As of December 31, 2019 OCSD Lehman Exposure - Account#10284 CUSIP Security Description Par Value/Units Purchase Date Cost Value Mkt Price Market Value %of Port. Moody/S&P Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss Fitch Duration Common Stock SLHOPNTA4 Lehman Brothers,Inc Open Position Long Exposure 60,641.49 11/21/2014 57,842.64 0.42 25,621.03 43.99% NR/NR 0.00 0.000% Due 12/31/2019 0.00% 57,842.64 0.00% 0.00 (32,221.61) NR 0.00 57,842.64 25,621.03 43.99% 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 US Corporate 525ESCIB7 Lehman Brothers Note-Defaulted 600,000.00 09/19/2008 319,005.35 1.27 7,620.00 13.08% NR/NR 0.07 0.000% Due 01/24/2020 0.00% 319,005.35 0.00% 0.00 (311,385.35) NR 0.00 525ESCOY6 Lehman Brothers Note-Defaulted 2,000,000.00 09/18/2008 1,027,939.99 1.25 25,000.00 42.93% NR/NR 29.83 0.000% Due 10/22/2049 0.00% 1,027,939.99 0.00% 0.00 (1,002,939.99) NR 0.00 1,346,945.34 32,620.00 56.01% NR/NR 22.88 TOTAL US Corporate 2,600,000.00 0.00% 1,346,945.34 0.00% 0.00 (1,314,325.34) NR 0.00 1,404,787.98 58,241.03 100.00% NR/NR 12.81 TOTAL PORTFOLIO 2,660,641.49 0.00% 1,404,787.98 0.00% 0.00 (1,346,546.95) NR 0.00 TOTAL MARKET VALUE PLUS ACCRUALS 58,241.03 50 Q1 Ll lole Section 5 Transactions C Transaction Ledger As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 September 30,2019 through December 31,2019 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description ACQUISITIONS Purchase 10/23/2019 65479JAD5 4,185,000.00 Nissan Auto Receivables Owner 2019-CA3 99.995 1.94% 4,184,779.03 0.00 4,184,779.03 0.00 1.93%Due:07/15/2024 Purchase 11/19/2019 62479LDQ5 10,000,000.00 MUFG Bank Ltd Discount CP 99.171 1.94% 9,917,138.89 0.00 9,917,138.89 0.00 1.9%Due:04/24/2020 Purchase 12/09/2019 912828YH7 6,000,000.00 US Treasury Note 99.160 1.68% 5,949,609.38 17,213.11 5,966,822.49 0.00 1.5%Due:09/30/2024 Purchase 12/13/2019 9128283.17 7,500,000.00 US Treasury Note 101.723 1.76% 7,629,199.22 5,660.86 7,634,860.08 0.00 2.125%Due:11/30/2024 Purchase 12/20/2019 06367BDS5 8,000,000.00 Bank of Montreal Chicago Yankee CD 100.005 1.98% 8,000,389.30 888.89 8,001,278.19 0.00 2%Due:03/18/2020 Purchase 12/23/2019 9128283S7 5,000,000.00 US Treasury Note 100.039 1.62% 5,001,953.13 39,402.17 5,041,355.30 0.00 2%Due:01/31/2020 Purchase 12/24/2019 9128283.17 9,000,000.00 US Treasury Note 101.719 1.76% 9,154,687.50 12,540.98 9,167,228.48 0.00 2.125%Due:11/30/2024 Purchase 12/24/2019 9128281-57 7,000,000.00 US Treasury Note 100.211 1.67% 7,014,765.63 28,449.45 7,043,215.08 0.00 1.75%Due:09/30/2022 Purchase 12/24/2019 912828YH7 8,000,000.00 US Treasury Note 98.871 1.75% 7,909,687.50 27,868.85 7,937,556.35 0.00 1.5%Due:09/30/2024 Subtotal 64,685,000.00 64,762,209.58 132,024.31 64,894,233.89 0.00 Security 10/31/2019 912828WUO 104.00 US Treasury Inflation Index Note 100.000 104.00 0.04 104.04 0.00 Contribution 0.125%Due:07/15/2024 Security 11/30/2019 912828WUO 8,528.00 US Treasury Inflation Index Note 100.000 8,528.00 4.00 8,532.00 0.00 Contribution 0.125%Due:07/15/2024 52 Q1 ITransaction Ledger As of December 31, 2019 Orange County Sanitation District Long Term - Account #10268 September 30, 2019 through December 31, 2019 Transaction Settlement CUSIP Quantity Security Description Price Acq/Disp Amount Interest Total Amount Gain/Loss Type Date Yield Pur/Sold Security 12/31/2019 912828WUO 25,168.00 US Treasury Inflation Index Note 100.000 25,168.00 0.00 25,168.00 0.00 Contribution 0.125%Due:07/15/2024 Subtotal 33,800.00 33,800.00 4.04 33,804.04 0.00 TOTAL ACQUISITIONS 64,718,800.00 64,796,009.58 132,028.35 64,928,037.93 0.00 DISPOSITIONS Sale 10/31/2019 912828G61 5,000,000.00 US Treasury Note 99.980 1.73% 4,999,023.44 31,352.46 5,030,375.90 -418.18 1.5%Due:11/30/2019 Subtotal 5,000,000.00 4,999,023.44 31,352.46 5,030,375.90 -418.18 Maturity 10/02/2019 3137EADM8 7,500,000.00 FHLMC Note 100.000 7,500,000.00 0.00 7,500,000.00 0.00 1.25%Due:10/02/2019 Maturity 11/19/2019 62479MYK3 11,255,000.00 MUFG Bank Ltd/NY Discount CP 99.464 11,255,000.00 0.00 11,255,000.00 0.00 2.12%Due:11/19/2019 Maturity 11/30/2019 912828G61 2,500,000.00 US Treasury Note 100.000 2,500,000.00 0.00 2,500,000.00 0.00 1.5%Due: 11/30/2019 Maturity 12/01/2019 73358WAG9 2,440,000.00 Port Authority of NY&NJ TE-REV 100.000 2,440,000.00 0.00 2,440,000.00 0.00 5.309%Due:12/01/2019 Subtotal 23,695,000.00 23,695,000.00 0.00 23,695,000.00 0.00 TOTAL DISPOSITIONS 28,695,000.00 28,694,023.44 31,352.46 28,725,375.90 -418.18 53 Ci„ Transaction Ledger As of December 31, 2019 Orange County Sanitation District Liquid - Account #10282 September 30,2019 through December 31,2019 Transaction Settlement CUSIP Quantity Security Description 9v Price Acq/Disp Amount Interest Total Amount Gain/Loss Type Date Yield Pur/Sold ACQUISITIONS Purchase 10/17/2019 06406HCZO 500,000.00 Bank of New York Callable Note Cont 1/24/2020 100.061 1.92% 500,305.00 1,582.64 501,887.64 0.00 2.15%Due:02/24/2020 Purchase 10/17/2019 90331HNB5 2,000,000.00 US Bank NA Callable Note Cont 12/24/2019 100.012 1.93% 2,000,240.00 9,222.22 2,009,462.22 0.00 2%Due:01/24/2020 Purchase 10/18/2019 69372AAF9 1,100,000.00 Paccar Financial Discount CP 99.543 1.88% 1,094,969.03 0.00 1,094,969.03 0.00 1.85%Due:01/15/2020 Purchase 10/21/2019 78012KC62 2,000,000.00 Royal Bank of Canada Note 100.067 1.93% 2,001,340.00 5,784.72 2,007,124.72 0.00 2.125%Due:03/02/2020 Purchase 10/31/2019 912796RY7 3,000,000.00 US Treasury Bill 99.612 1.56% 2,988,359.58 0.00 2,988,359.58 0.00 1.535%Due:01/30/2020 Purchase 11/19/2019 62479LDQ5 1,365,000.00 MUFG Bank Ltd Discount CP 99.171 1.94% 1,353,689.46 0.00 1,353,689.46 0.00 1.9%Due:04/24/2020 Purchase 11/29/2019 912796RY7 11,000,000.00 US Treasury Bill 99.730 1.59% 10,970,333.00 0.00 10,970,333.00 0.00 1.566%Due:01/30/2020 Purchase 12/19/2019 06367BDS5 1,000,000.00 Bank of Montreal Chicago Yankee CD 100.005 1.98% 1,000,049.48 55.56 1,000,105.04 0.00 2%Due:03/18/2020 Purchase 12/20/2019 313384RU5 1,200,000.00 FHLB Discount Note 99.891 1.59% 1,198,691.67 0.00 1,198,691.67 0.00 1.57%Due:01/14/2020 Purchase 12/20/2019 313384SD2 5,000,000.00 FHLB Discount Note 99.852 1.59% 4,992,586.11 0.00 4,992,586.11 0.00 1.57%Due:01/23/2020 Purchase 12/20/2019 313384SK6 4,500,000.00 FHLB Discount Note 99.826 1.59% 4,492,175.00 0.00 4,492,175.00 0.00 1.565%Due:01/29/2020 Purchase 12/20/2019 89114M2Z9 2,000,000.00 Toronto Dominion Bank Yankee CD 100.014 2.03% 2,000,285.65 18,211.11 2,018,496.76 0.00 2.2%Due:01/23/2020 Purchase 12/23/2019 912796RT8 7,500,000.00 US Treasury Bill 99.959 1.51% 7,496,905.21 0.00 7,496,905.21 0.00 1.486%Due:01/02/2020 Purchase 12/23/2019 912796TH2 7,500,000.00 US Treasury Bill 99.689 1.56% 7,476,699.31 0.00 7,476,699.31 0.00 1.532%Due:03/05/2020 Purchase 12/23/2019 912796WM7 7,500,000.00 US Treasury Bill 99.938 1.52% 7,495,320.31 0.00 7,495,320.31 0.00 1.498%Due:01/07/2020 54 Ci„ ITransaction Ledger As of December 31, 2019 Orange County Sanitation District Liquid - Account #10282 September 30, 2019 through December 31, 2019 Transaction Settlement CUSIP Quantity Security Description Price Accl/Disp Amount Interest Total Amount Gain/Loss Type Date Yield Pur/Sold Purchase 12/23/2019 9128283S7 5,000,000.00 US Treasury Note 100.039 1.62% 5,001,953.13 39,402.17 5,041,355.30 0.00 2%Due:01/31/2020 Purchase 12/23/2019 9128283S7 5,000,000.00 US Treasury Note 100.039 1.62% 5,001,953.13 39,402.17 5,041,355.30 0.00 2%Due:01/31/2020 Purchase 12/23/2019 912828VJ6 15,000,000.00 US Treasury Note 100.148 1.59% 15,022,265.63 134,510.87 15,156,776.50 0.00 1.875%Due:06/30/2020 Purchase 12/23/2019 912828VV9 15,000,000.00 US Treasury Note 100.332 1.64% 15,049,804.69 99,828.30 15,149,632.99 0.00 2.125%Due:08/31/2020 Purchase 12/24/2019 06367BED7 1,000,000.00 Bank of Montreal Chicago Yankee CD 100.000 1.89% 1,000,000.00 0.00 1,000,000.00 0.00 1.89%Due:05/21/2020 Purchase 12/24/2019 9128283S7 5,000,000.00 US Treasury Note 100.035 1.65% 5,001,757.81 39,673.91 5,041,431.72 0.00 2%Due:01/31/2020 Purchase 12/24/2019 912828MP2 5,000,000.00 US Treasury Note 100.273 1.70% 5,013,671.88 64,521.06 5,078,192.94 0.00 3.625%Due:02/15/2020 Purchase 12/26/2019 9128281-32 5,000,000.00 US Treasury Note 99.820 1.64% 4,991,015.63 22,098.21 5,013,113.84 0.00 1.375%Due:08/31/2020 Purchase 12/26/2019 912828XY1 5,000,000.00 US Treasury Note 100.441 1.63% 5,022,070.31 60,801.63 5,082,871.94 0.00 2.5%Due:06/30/2020 Subtotal 118,165,000.00 118,166,441.02 535,094.57 118,701,535.59 0.00 TOTAL ACQUISITIONS 118,165,000.00 118,166,441.0 535,094.57 118,701,535.59 0.00 DISPOSITIONS Call 12/24/2019 90331HNB5 2,000,000.00 US Bank NA Callable Note Cont 12/24/2019 100.000 2.00% 2,000,000.00 16,666.67 2,016,666.67 0.00 2%Due:01/24/2020 Subtotal 2,000,000.00 2,000,000.00 16,666.67 2,016,666.67 0.00 Maturity 10/03/2019 912796SL4 1,650,000.00 US Treasury Bill 100.000 1,650,000.00 0.00 1,650,000.00 0.00 2.007%Due:10/03/2019 55 Ci„ ITransaction Ledger As of December 31, 2019 Orange County Sanitation District Liquid - Account #10282 September 30, 2019 through December 31, 2019 Transaction Settlement CUSIP Quantity Security Description Price Acq/Disp Amount Interest Total Amount Gain/Loss Type Date Yield Pur/Sold Maturity 10/08/2019 912796VY2 1,250,000.00 US Treasury Bill 100.000 1,250,000.00 0.00 1,250,000.00 0.00 1.737%Due:10/08/2019 Maturity 10/15/2019 912796VZ9 1,250,000.00 US Treasury Bill 100.000 1,250,000.00 0.00 1,250,000.00 0.00 1.805%Due:10/15/2019 Maturity 10/18/2019 96130AAK4 1,500,000.00 Westpac Banking Corp NY Yankee CD 100.000 1,500,000.00 45,045.00 1,545,045.00 0.00 2.97%Due:10/18/2019 Maturity 10/31/2019 9128281`62 2,500,000.00 US Treasury Note 100.000 2,500,000.00 0.00 2,500,000.00 0.00 1.5%Due: 10/31/2019 Maturity 11/19/2019 62479MYK3 1,860,000.00 MUFG Bank Ltd/NY Discount CP 99.464 1,860,000.00 0.00 1,860,000.00 0.00 2.12%Due:11/19/2019 Maturity 12/06/2019 94988J5G8 500,000.00 Wells Fargo Bank Note 100.000 500,000.00 0.00 500,000.00 0.00 2.15%Due:12/06/2019 Maturity 12/23/2019 06417G5Q7 2,300,000.00 Bank of Nova Scotia Yankee CD 100.000 2,300,000.00 46,023.00 2,346,023.00 0.00 2.61%Due:12/23/2019 Subtotal 12,810,000.00 12,810,000.00 91,068.00 12,901,068.00 0.00 TOTAL DISPOSITIONS 14,810,000.00 14,810,000.00 107,734.67 14,917,734.67 0.00 56 C11% IImportant Disclosures As of December 31, 2O19 2019 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-advisory fees and represent the client's Total Return.The deduction of advisory fees lowers performance results.These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results.Therefore,clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. 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This report is provided for informational purposes only and should not be construed as a specific investment or legal advice.The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice.Any opinions or views expressed are based on current market conditions and are subject to change.This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results.This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk:the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk:the bond market in general could decline due to economic conditions,especially during periods of rising interest rates. Ratings information have been provided by Moody's,S&P and Fitch through data feeds we believe to be reliable as of the date of this statement,however we cannot guarantee its accuracy. Security level ratings for U.S.Agency issued mortgage-backed securities("MBS")reflect the issuer rating because the securities themselves are not rated.The issuing U.S.Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P,Moody's and Fitch respectively. 57 c,,, Benchmark Disclosures As of December 31, 2O19 ICE BAML 3-Month US Treasury Bill Index The ICE BAML US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month.At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. (Index:G0O1. Please visit www.mlindex.ml.com for more information) ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index The ICE BAML US Issuers 1-5 Year AAA-A US Corporate& Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market including US Treasury, US agency,foreign government,supranational and corporate securities. Qualifying securities must issued from US issuers and be rated AAA through A3(based on an average of Moody's,S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule and a minimum amount outstanding of$1 billion for US Treasuries and$250 million for all other securities. (Index:BV10. Please visit www.mlindex.ml.com for more information) ICE BAML US 1-5 Yr US Corp/Govt Rated AAA-BBB Indx The ICE BAML 1-5 Year US Corporate& Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency,foreign government,supranational and corporate securities. Qualifying securities must have an investment grade rating(based on an average of Moody's,S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule and a minimum amount outstanding of$1 billion for US Treasuries and$250 million for all other securities. (Index:BVAO.Please visit www.mlindex.ml.com for more information) 58 c," Rating Agency Comparisons A summary of investment grade ratings are listed below. More complete descriptions of Moody's and Standard & Poor's ratings are included in the following pages. Quality/Grade Moody's Standard & Poor's Fitch Best Quality Aaa AAA AAA High Quality Aal AA+ AA+ Aa2 AA AA Aa3 AA- AA- Upper Medium Grade Al A+ A+ A2 A A A3 A- A- Medium Grade Baal BBB+ BBB+ Baa2 BBB BBB Baa3 BBB- BBB1 Moody's - Investment Grade "Aaa" - Bonds rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk. Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. "Aa" - Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in Aaa securities. "A" - Bonds which are rated A possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment sometime in the future. "Baa" - Bonds which are rated Baa are considered as medium grade obligations; i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well. Bonds in the Aa, A, and Baa are also assigned "V, "2", or "Y based on the strength of the issue within each category. Accordingly, "Al" would be the strongest group of A securities and "AY would be the weakest A securities. Ba, B, Caa, Ca, and C - Bonds that possess one of these ratings provide questionable protection of interest and principal ("Ba" indicates some speculative elements; "B" indicates a general lack of characteristics of desirable investment; "Caa" represents a poor standing; "Ca" represents obligations which are speculative in a high degree; and "C" represents the lowest rated class of bonds). "Caa", "Ca" and "C" bonds may be in default. Standard and Poor's-Investment Grade AAA- Debt rated "AAA" has the highest rating assigned by S&P. Capacity to pay interest and repay principal Is extremely strong. AA - Debt rated "AX 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 Ratinq 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 "AX 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. O�JNjv S A N I TgT�2 � � O N� _ � 9 ti �FPTiNG._�E ENv\P�� January 31, 2020 STAFF REPORT Mid-Year Certificates of Participation (COP) Report for the Period Ended December 31, 2019 Summary The Orange County Sanitation District (OCSD) began issuing Certificates of Participation (COPs) in 1990. These COPs were a part of our long-term financing plan that included both variable interest rate and traditional fixed rate borrowing. Following are the current outstanding debt issues of OCSD: In May 2010, OCSD issued $80 million of fixed rate BABs, Series 2010A at a true interest cost of 3.68 percent for the issue. In December 2010, OCSD issued $157 million of fixed rate BABs, Series 2010C at a true interest cost of 4.11 percent for the issue. In October 2011, OCSD issued $147.595 million of fixed rate COPs, Series 2011A refunding a portion of the Series 2000 variable rate debt and a portion of the Series 2003 fixed rate debt. The true interest cost for the issue is 2.61 percent. In March 2012, OCSD issued $100.645 million of fixed rate COPs, Series 2012A refunding the Series 2003 fixed rate debt. The true interest cost for the issue is 3.54 percent. In August 2012, OCSD issued $66.395 million of fixed rate COPs, Series 2012B refunding the Series 2000 variable rate debt. The true interest cost for the issue is 1.50 percent. With the issuance of Series 201213, there remains no variable interest rate COPs at OCSD. In August 2014, OCSD issued $85.09 million of fixed rate COPs, Series 2014A, refunding a portion of Series 2007B debt. The true interest cost for the issue is 2.34 percent. OCSD ♦ P.O.Box 8127 ♦ Fountain Valley,CA 92728-8127 ♦ (714)962-2411 Mid-Year COP Report For the Period Ended December 31, 2019 Page 2 of 2 In February 2015, OCSD issued $127.51 million of fixed rate COPs, Series 2015A, refunding $152.99 million of the Series 2007B debt. The true interest cost for the issue is 3.30 percent. In March 2016, the OCSD issued $145.88 million of fixed rate CANs, Series 2016A, refunding $162.78 million of the Series 2009A fixed rate debt. The true interest cost for the issue is 3.02 percent. In February 2017, OCSD issued $66.37 million of fixed rate COPs, Series 2017A, refunding $91.885 million of the Series 2007A debt. The true interest cost for the issue is 2.55 percent. In November 2018, OCSD issued $102.2 million of fixed rate CANs, Series 2018A, refunding the Series 2016B CANs. The true interest cost for the issue is 2.02 percent. Additional Information The graph entitled, "OCSD COP Rate History Report," shows the various fixed interest rates of the OCSD's ten debt issues. Attachments 1. Graph - OCSD COP Rate History Report OCSD COP RATE HISTORY REPORT DECEMBER 2019 5.00 4.00 3.00 - w a 2.00 1.00 0.00 s17 d d ' R R d aN R R 6 6 R R ' 3 3 > > 3 d N6 U V O O m N G O 7 LL LL Q Q r2 T 7 Q Q f/� h O O Z Z G O DATE "' M N 14 N r0 N ao N N � M M N N N r V Series 2010A Fixed t Series 2010C Fixed t Series 2011 A Fixed t Series 2012A Fixed Series 2012B Fixed t Series 2014A Fixed —d—Series 2015A Fixed —4—Series 2016A Fixed Series 2017A Fixed t Series 2018A Fixed H:\dept\asd\220\Common\Monthly and Quarterly Treasurer's Report\FY 19-20\COP Rate History Report FY 19-20 FY 2019-20 Mid-Year Financial Report This Page Intentionally Left Blank ORANGE COUNTY SANITATION DISTRICT FINANCIAL MANAGEMENT DIVISION 10844 Ellis Avenue Fountain Valley, California 92708-7018 714.962.2411 www.ocsd.com 12/31/19 oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 ADMINISTRATION COMMITTEE (714)5937433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-947 Agenda Date: 2/26/2020 Agenda Item No: 15. FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FISCAL YEARS 2020-21 AND 2021-22 BUDGET GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve the FY 2020-21 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2020-21 and 2021-22 budget. BACKGROUND For the budget process, the Administration Committee establishes the Budget Assumptions and approves the Budget Calendar. Staff will make a brief presentation at the Committee meeting. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Produce appropriate financial reporting ADDITIONAL INFORMATION Currently, there are no proposed changes to the Orange County Sanitation District (Sanitation District) Fiscal Policy. The Fiscal Policy is published in the FY 2018-19 and 2019-20 Budget document (Section 3, Pages 1-8), and is available on the Sanitation District's website. ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package.- FY 2020-21 Preliminary Budget Assumptions • Budget Calendar 2020-21 • Presentation from 02/19/2020 Administration Committee Meeting Orange County Sanitation District Page 1 of 1 Printed on 2/20/2020 powered by LegistarTM FY 2020-21 Preliminary Budget Assumptions Economic Assumptions • Inflation for Orange County in FY 2020-21 is projected to be 1.9 percent based on the 2019 projected percentage change in consumer price index (CPI) obtained from Chapman University. A 1.9 percent inflation factor will also be used for FY 2021-22. Revenue Assumptions • Based upon the proposed Sewer Service Fee Rate Schedule to be approved by the Board in March 2018, the single-family residence (SFR) rate will increase by $4 (1.2 percent) to $343 in FY 2020-21, which is less than the projected CPI. • Note that each $1 increase in the SFR rate generates approximately $900,000 per year. • The capital facilities capacity charge (CFCC) fee captures only those infrastructure costs that relate to additional capacity. The proposed CFCC fee to be approved by the Board in March 2018 will increase by 8 percent for FY 2020-21. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and replacement, will be supported through user fees. • Given the Facilities Master Plan adopted in December 2017, a rate study was completed in December 2017 to ensure that the CFCC fee methodology remains equitable and to confirm that an appropriate share of system costs would be recovered from new development. • Revenues will be budgeted to reflect little growth in Equivalent Dwelling Unit (EDU) connections that have remained flat over the past five years. • Permit user rates for flow will increase by 3.8 percent, Biochemical Oxygen Demand (BOD) will increase by 0.5 percent and Total Suspended Solids (TSS) will increase by 2.7 percent for FY 2020-21 based upon the Rate Study completed in December 2017. • Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre. • Annexable property in OCSD's service area sphere is minimal; consequently, no FY 2020-21 income from annexation fees is anticipated. • Property tax revenues are preliminarily estimated to increase by approximately three percent from FY 2019-20 to $98,354,000. A two percent annual increase in Assessed Value is authorized by the state constitution and is included in the increases noted above. The additional increase in assessed value is from authorized increases to market value when property is sold at a higher value. • Earnings on the investment of OCSD's operating cash and reserves will be budgeted at 1.0 percent of the average cash and investment balance projected for the fiscal year. • No additional debt issuance is scheduled for FY 2020-21. Operating Assumptions • Operating expenses are expected to approximate the adopted FY 2019-20 budget of$168 million. 1 FY 2020-21 Preliminary Budget Assumptions • Average daily flows are projected at 188 mgd for FY 2020-21 and 188 MGD for FY 2021-22. The FY 2019-20 flow projection of 188 mgd reflects an increase of 1 mgd from the actual for the first 5 months of the current year and is 2 mgd above the final actual flow for FY 2018- 19. Employee/Staffing Assumptions • Staffing level is expected to remain relatively flat. The total FY 2019-20 authorized staffing level is 640.00 FTEs, excluding Management Discretion positions. • Vacant positions as of 12/31/2019 are budgeted at 50 percent of step 1 for the remainder of FY 2019-20 and at 100 percent of step 2 for FY 2020-21. • New positions will be projected at 100 percent of step 1 for FY 2020-21. • A 3.0 percent vacancy factor on authorized positions has been budgeted for FY 2020-21. The actual vacancy factor is currently running at 4.7 percent due to the streamlined recruitment processes now in place. This vacancy factor accounts for time spent for recruitment and turnover. • The Memorandums of Understanding (MOUs) for the OCEA, the Local 501, and the Supervisor and Professional (SPMT) groups expire on June 30, 2022. Salary adjustments will be included in the budget for COLA based upon the current MOUs. • Retirement costs for employees enrolled in OCERS Plans G and H are estimated at a rate of 14.10 percent of the employee's base salary for FY 2020-21, up from 13.30 percent in FY 2019-20. The rates for Plans G and H include OCSD's pickup of 3.5 percent of employees' required contributions. Employees enrolled in OCERS Plan B are estimated at a rate of 11.97 percent of the employee's base salary for FY 2020-21, up from 11.25 percent in FY 2019-20. All employees hired on or after January 1, 2013 are enrolled in OCERS Plan U and are estimated at a rate of 10.88 percent for FY 2020-21, up from 10.37 percent in FY 2019-20. Interns are not enrolled in OCERS so their retirement benefits are calculated at 6.2 percent (FICA rate). • Other employee benefits and insurances will be budgeted to increase in FY 2020-21 and FY 2021-22 by moderate but yet to be determined amounts. Materials, Supplies, & Services Assumptions • The proposed operating budget will continue to reflect an emphasis on safety, security, and maintenance of plant assets and infrastructure. • An amount equal to half of one percent of the Operating materials and services budget will be a contingency for prior year re-appropriations. Since the current year's budget lapses on June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year. • An amount equal to 0.85 percent of the Operating materials and services budget will be the General Manager's contingency budget. These funds will be allocated to appropriate line items during the year after requests and justifications for unanticipated needs are approved by the General Manager. 2 FY 2020-21 Preliminary Budget Assumptions • Resource needs for strategic initiatives will be included in the budget. Capital Improvement Program Assumptions • The FY 2020-21 and FY 2021-22 cash flow budget, based on the most current Validated Capital Improvement Program (CIP), is the target. • The baseline CIP cash flow for FY 2020-21 is $209 million and for FY 2021-22 is $314 million. • Continual evaluation of the CIP by Financial Management, Project Management Office and Planning may result in deferral or reduction of some projects and a resultant increase in O&M repair costs for materials and services, if the net cash flow impact is a decrease. • For the first five months of FY 2019-20, $39.2 million of the $153.3 million CIP budget, approximately 25.6 percent, was expended. Debt Financing • OCSD will issue new debt in the form of Certificates of Participation (COP) as needed to fund the CIP and to maintain reserves. • No additional debt issuance is scheduled for FY 2020-21 and FY 2021-22. • Debt will only be used for CIP and capital expenses, not for operating expenses. • Capital financing plans no longer include future borrowings over the next ten years as the approved user fee schedule is considered sufficient. • Borrowing is proposed only for facilities which do not add capacity and that are funded by all users for replacement, rehabilitation, and improved treatment. • Upon COP's becoming callable or maturing, a determination will be made as to the benefit of paying off the obligation or refinancing the debt. Reserve Assumptions The existing reserve policy is summarized as follows: ► A cash flow criterion will be established to fund operations, maintenance and certificates of participation expenses for the first half of the fiscal year, prior to receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this criterion will be established as the sum of an amount equal to six months operations and maintenance expenses and the total of the annual debt (COP) service payments due in August each year. ► An operating contingency criterion will be established to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer service fees 3 FY 2020-21 Preliminary Budget Assumptions were considered and adopted. The level of this criterion will be established at an amount equal to ten percent of the annual operating budget. ► A capital improvement criterion will be maintained to fund annual increments of the capital improvement program. The long-term target is for one half of the capital improvement program to be funded from borrowing and for one half to be funded from current revenues and reserves. With this program in mind, the target level of this criterion has been established at one-half of the average annual capital improvement program over the next ten years. ► A catastrophic loss, or self-insurance, criterion will be maintained for property damage including fire, flood and earthquake, for general liability and for workers' compensation. This criterion is intended to work with purchased insurance policies, FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake, of which OCSD currently has limited outside insurance coverage of$25 million, has been estimated to be as high as $1.3 billion. The level of this criterion has been set at $57 million should such a catastrophic event occur. This criterion amount will assist OCSD with any short-term funding needs until Federal and State assistance becomes available. ► Accumulated capital funds will be set aside for certain specific, short-term capital improvements as the need and availability arise. ► A capital replacement/renewal criterion has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives. Based on the Facilities Evaluation Report completed in December 2017, the current replacement value of these facilities is estimated to be $3.56 billion for the collection facilities and $7.18 billion for the treatment and disposal facilities. The initial criterion level has been established at $50 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030. ► Provisions of the various certificates of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are not available for the general needs of OCSD and must be maintained at specified levels. The current level of required COP service reserves is projected to be $170.8 million. ► Accumulated funds exceeding the levels specified by District policy will be maintained in a rate stabilization fund. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this criterion. 4 Budget Calendar Tasks Responsibility Event/Due Date Phase I — Budget Preparation EMT Strategic Planning Workshop General Manager's Office 8/1/2019 Strategic Plan Workshop for the Board General Manager's Office 8/28/2019 Strategic Plan Workshop for the Board General Manager's Office 9/18/2019 Strategic Plan Workshop for the Board General Manager's Office 9/25/2019 Strategic Plan adopted by Board of Directors General Manager's Office 11/20/2019 Preliminary Budget Assumptions Identified Financial Planning 1/6/2020 Preliminary Budget Assumptions & Draft Budget Financial Management 1/13/2020 Calendar Presented to EMT & Managers Preparation for Budget Kickoff/Training Session: Develop line item worksheets Financial Planning 1/16/2020 Prepare budget instruction manual Budget Kickoff/Training Session: Distribute budget manual update Financial Planning 1/23/2020 Conduct budget training session Review submission deadlines CIP - New Project Numbers Assigned Engineering Planning 2/7/2020 Operating Divisional Budgets: All Position Decision Packages Due to Human Resources (Laura Maravilla, Ext. 7007) with copies to Financial Planning (Ling Divisional Budget Hsiao, Ext. 7542) 2/7/2020 New Position Coordinators Position Upgrade Position Reclassification or Equity Adjustment Operating Budget: Promotional Items and Conference Attendance Request Forms Due to Jennifer Cabral (Ext. 7581). Email Promotional Items Divisional Budget 2/7/2020 Purchasing Budget Request form to: Coordinators forinformation(a)ocsd.com. Include the number of polo shirts needed for your division on the form. Capital Equipment Budget: Vehicle Capital Divisional Budget Equipment Decision Packages Due to Fleet Services Coordinators 2/7/2020 (Bob Bell, Ext. 7214) Capital Equipment Budget: Computer Equipment Divisional Budget Decision Packages Due to Information Technology Coordinators 2/7/2020 (John Swindler, Ext. 7260) Budget Assumptions Presented to Administration Financial Management 2/19/2020 Committee 1 FY 2020-21 & 2021 -22 Budget Manual Mid-Year Financial Report to Administration Financial Management 2/19/2020 Committee Division Budget Packages Due to Finance: Update 2019-20 projected costs Proposed operating costs for 2020-21 & 2021-22 Operating Budget Expense Detail Meetings, Memberships & Training Requests Divisional Budget 2/20/2020 Capital Equipment Decision Packages (other than Coordinators computer and vehicle decision packages) • New program decision packages (Financial Planning will compile this information into packages for use during the budget review process.) CIP - Preliminary capital equipment request estimates Financial Planning 2/20/2020 delivered to PMO CIP - Engineering Change Control Validation Engineering Project 2/20/2020 Complete Managers Mid-Year Financial Report to Board Financial Management 2/26/2020 Complete the Compilation of the Preliminary Division Financial Planning 2/26/2020 Budget Packages CIP - Future Project Attributes Reviewed and Engineering Planning 2/28/2020 Updated CIP - Project Budget Reviews Complete Engineering PMO 3/2/2020 Department Narratives for Budget Executive EMT 3/12/2020 Summary Due to Financial Planning CIP - Validated CIP budgets delivered to IT/Finance Engineering Planning 3/30/2020 Phase II - Budget Review Divisional Budgets - Distribution of Preliminary Line Item Requested Budget to Department Heads and Financial Planning 3/2/2020 Managers along with Analysis/Questions for Review Operating Budget— Information on New Positions, Position Upgrades & Reclassifications Submitted to Human Resources 3/5/2020 the General Manager CIP - Engineering /Finance Budget Review Meetings: Engineering/Financial Final Adjustments, Confirm 20-year Cash Flow, and Management 3/2-3/16/2020 Capital Equipment Delivered to PMO Operating Budget - Division Budget Review Meetings Financial Planning & 3/9 - 3/12/20 with Finance and Division Representatives Division Representatives Divisional Budgets - Completion of Preliminary Financial Planning 3/11/2020 Budget and Compilation into Departmental Budgets Budget Revenue Update Presented to Administration Financial Planning 3/11/2020 Committee 2 Budget Calendar Operating Budget— Recommendations to General Financial Planning 3/12/2020 Manager Divisional Budgets— Performance Budget Documents Due to Financial Planning (Ling Hsiao): Organization Charts Divisional Budget 3/19/2020 Performance Results (2018-19) Coordinators Performance Measures 2020-21 & 2021-22 Final Operating Budget— General Manager Review of Financial Planning, GM, 3/23 - 3/27/20 Budget Recommendations & Department Heads Capital Equipment Budget - Requests Reviewed & Financial Planning, GM, 3/23 - 3/27/20 Approved & Department Heads Operating Budget— Report of General Manager's Decisions on New Positions, Position Upgrades & General Manager 3/23/2020 Reclassifications Submitted to the Financial Planning CIP —Approve Proposed CIP Budget EMT 3/23/2020 CIP— Operations Committee Review of Proposed Engineering 4/1/2020 Budget Phase III - Budget Presentation Operating Budget— Presentation of Preliminary Financial Management 4/6/2020 Budget by Division/Department to EMT Operating Budget— Overview to Administration Financial Management 4/8/2020 Committee CIP - Final CIP Budget Document Preparation and Financial Planning 4/16/2020 Incorporation into Final Budget Document CIP - Review draft of Final Budget Document pages Financial Planning 4/16/2020 with Engineering Planning & PMO Initial - Proposed Budget Finalized Financial Planning 4/27/2020 Operating Budget - Overview to Operations Financial Planning 5/6/2020 Committee CIP Budget Overview to Operations Committee Engineering/Financial 5/6/2020 Management General Manager's Budget Message Completed GM / Financial Planning 5/11/2020 Operating Budget - Overview to Administration Financial Planning 5/13/2020 Committee CIP Budget Overview to Administration Committee Engineering/Financial 5/13/2020 Management Approval of General Manager's Budget Message General Manager 5/13/2020 Final - Proposed Budget to Printer Financial Planning 5/20/2020 Phase IV - Budget Deliberations Final Draft - Proposed 2020-21 & 2021-22 Budget Financial Management Ops- 6/3/2020 Presented to Committees Admin- 6/10/2020 3 FY 2020-21 & 2021 -22 Budget Manual Public Hearing & Board Adoption Board of Directors 6/24/2020 Phase V — Distribution of Budget Final line item budget and equipment budgets posted Financial Planning 7/8/2020 in H:\ntglobal Phase VI — Budget Debriefing Budget Debriefing E-mail Message Global Changes that occurred in this year's budget. Changes since the Departments' original submittal. Changes that occurred as a result of Board action. Results of Budget Survey. Financial Planning 7/9/2020 Overview of Budget Monitoring with Oracle JD Edwards EnterpriseOne Software and review of Budget Coordinator's Responsibility. Overview of CIP Budget Monitoring. Suggestions for Budget Process Improvements. 4 � = "� OCSD FY 2020 =21 & 2021 =22 ■ � . ■ Budget Assumptions � �� ■ '�.�.'' �r 7 Wally Ritchie, Controller ;yam Administration Committee February 19, 2020 Budget Development - , Assumptions Economics • Inflation for Orange County is projected to be approximately 1 .9% . Revenue • Based upon the revised Sewer Service Fee Rate Schedule approved by the Board in March 2018 , the single-family residence (SFR) rate will increase by 1 .2% to $343 in FY 2020-21 and $347 in FY 2021 -22 . Reserves • Current reserve policy is unchanged Com arison of Sin le-Fam i I �:y. p g y Residential Rates (July 2019 111 $•11 $:11 • 11 $•11 CL 11 L 411 11 11 I 11 UQ 1 - i C' WN.W,-.A, Operations • Average daily flows are projected to be 188 mgd for FY2020-21 and FY2021 -22 . This projection reflects an expected increase of 0 . 6 mgd from the actual for the first six months of the current year. • Operating expenses are expected to approximate the previously adopted FY 2019- 20 budget of $ 168 Million . C' Staffing L- %6 • Staffing level is expected to remain essentially flat. The current authorized staffing level is 640 FTE . • A 3% vacancy factor will be budgeted for authorized positions. • Salary adjustments will be based on newly negotiated MOUs . • Moderate increases in benefits are anticipated . Capital Improvement L Program CIP • Cash flow assumptions are based on the most recent validated CIP and the 2017 Facilities Master Plan . • Baseline CIP is $ 153 million for FY 2019-20 . CMM M WN.W,-.A, Debt Financing L- %6 • The Sanitation District will issue debt in the form of Certificates of Participation (COP) as the chief mechanism for funding the CIP and to maintain reserves if required . • No additional "new money" debt issuance is scheduled for FY 2020-21 . • Maturing or Callable Debt will be reviewed for payoff or refinance. 1 Bud , et Summ 9 Revenues FY 19-20 Ten Year Cash Flow Fees and Charges $ 346M (74%) $ 31798M (73%) Property Taxes 96M (21%) 11131M (22%) Interest / Other 26M ( 5%) 286M ( 5%) Total Revenues $ 468M $ 5,215M Expenditures FY 19-20 Ten Year Cash Flow Operating $ 168M (41%) $ 11912M (36%) CIP / RRR 153M (38%) 21606M (49%) Debt Service 77M ( 19%) 724M ( 14%) Other 8M ( 2%) 34M ( 1%) Total Outlays $ 406M $51276M Net Surplus (Deficit) $ 62M $ (61)M Budget Development W.T ` 1 ai Ke Meeting Dates • Budget Assumptions February • Review of Revenues March • Review of Expenditures April Budget Development x W.T C Ke Meeting Dates • Operations Committee Budget Overview May, June • Administration Committee Budget Elements Review May, June • Board Meeting FY 20-21 & FY 21 -22 Biennial June Budget Approval Questions ? oJ�V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 LEGISLATIVE AND PUBLIC AFFAIRS (714)5937433 COMMITTEE 9oTFCTN0 THE Agenda Report File #: 2020-923 Agenda Date: 2/26/2020 Agenda Item No: 16. FROM: James D. Herberg, General Manager SUBJECT: PUBLIC AFFAIRS UPDATE FOR THE MONTHS OF DECEMBER 2019 AND JANUARY 2020 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Public Affairs Update for the months of December 2019 and January 2020. BACKGROUND Staff will provide an update on recent public affairs activities. RELEVANT STANDARDS • Maintain influential legislative advocacy and a public outreach program • Build brand, trust, and support with policy makers and community leaders • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Listen to and seriously consider community input on environmental concerns PROBLEM The Orange County Sanitation District (Sanitation District) is well recognized within the water/wastewater industry; however, within our service area there is limited knowledge by our customers of the important work we do to protect public health and the environment. In general, the customers we serve do not realize that when they improperly dispose of waste into the sanitation system, it can negatively affect our sewer lines, our treatment plants, and the quality of water we supply for the Groundwater Replenishment System. PROPOSED SOLUTION By providing tours, community outreach, education, and general communication via the Sanitation District's website, social media outlets, and direct mailings, we have the ability to educate the community, local agencies, and businesses on our messaging such as the What2Flush program, energy production, water recycling, biosolids, and our source control program. This, in turn, helps improve the quality of wastewater that is recycled or released to the ocean. Orange County Sanitation District Page 1 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-923 Agenda Date: 2/26/2020 Agenda Item No: 16. TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION If we do not educate the community, local agencies, and area businesses about the Sanitation District, we may not have the support necessary to deliver our mission. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION December 2019 and January 2020 Activity ft ft of Guests OCSD/OCWD Tours 6 169 OCSD Tours 10 154 Current Activities - December 2019 and January 2020 Holiday Luncheons During the month of December, the Sanitation District hosted lunches for all Sanitation District employees at Plant Nos. 1 and 2. The night crews also got in on the celebration with holiday dinners. A special holiday mug was also presented to each Sanitation District employee. CASA Conference Last month, the Sanitation District staff and Board Chairman attended the CASA Conference in Palm Desert. Administration Manager Jennifer Cabral attended the Communications Committee Meeting and Rebecca Long, Senior Public Affairs Specialist, attended the Legislative and Regulatory Affairs Committee Meeting. General Manager Jim Herberg presented on "Climate Resiliency, What Does it Mean for Your Agency?". GWRS Final Expansion Public Outreach OCWD has begun construction of the Groundwater Replenishment System Final Expansion project at Plant No. 2. Since work is within the Sanitation District property, Sanitation District staff is managing the outreach efforts and has sent out a notification to the neighbors informing them about the upcoming work and the benefits that will come from the project. Southeast Huntington Beach Council Committee Meeting In January, Sanitation District staff attended the committee meeting to provide updates on the Plant No. 2 activity including the various projects for the Final Expansion of the Groundwater Replenishment System and share upcoming tour dates for Plant No. 2. Orange County Sanitation District Page 2 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-923 Agenda Date: 2/26/2020 Agenda Item No: 16. Pretreatment Pollution Prevention Stormwater (P3S) Conference At the end of January, Sanitation District employees and Director of Environmental Services Lan Wiborg presented on different topics throughout the conference. The event was held in Long Beach. CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENTS The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Outreach and Media Summary Report December 2019 and January 2020 • Presentation from 02/10/2020 LaPA Committee Meeting Orange County Sanitation District Page 3 of 3 Printed on 2/20/2020 powered by LegistarTM Outreach and Media Summary �NIN SANlTq��o o THE EN December 2019 and January 2020 OCSD Public Affairs Office Table of Contents OUTREACH REPORT..................................................................PAGE 1 FACEBOOK POSTINGS ..................................................................PAGE 2 TWITTER POSTINGS ..................................................................PAGE 5 INSTAGRAM POSTINGS...............................................................PAGE 7 ARTICLE SUMMARY...................................................................PAGE H Outreach Report December 2019 - January 2020 Date Event Attendees 12/2/19 Saddleback College Tour 27 12/3/19 CSULB Nursing Tour 14 12/4/19 Kermira Tour 10 12/5/19 Santa Ana College Tour 25 12/6/19 CSUF Engineering Tour 20 12/9/19 CSULB Science Tour 18 12/20/19 BV Guests Tour 8 1/3/20 University HS Tour 15 1/10/20 Dana Hills HS Tours 42 1/15/20 Dana Hills HS Tours 46 1/16/20 Girl Scout Troop tour 10 1/21/20 SA Vallley HS Tours 52 1/22/20 UC Riverside Professor Tour 2 1/22/20 UC Riverside Professor Tour 2 1/23/20 OCC Tour 10 1/23/20 OCC Tour 10 1/28/20 New Employee/Open Tour 20 1/30/20 International Exec. Council Tour 40 Facebook Posts Dec 2019 and Jan 2020 Page Summary Last 28 days: Export Data b Results from Dec 23,2019-Jan 19,2020 Note Does not include today s data.Insights activity is reported in the Pacific time zone.Ads activity is reported in the Organic Paid time zone of your ad account. Actions on Page t Page Views r Page Previews December 23-J 19 December 23-January 19 December 23-January 19 402 13 Total Page Views A2% Page Previews v7% owns We have insufficient data to show for the selected time period. Page Likes T Post Reach Story Reach f 3 January 19 January 19 December 23-January 19 7 1 ,458 Get Story Insights See stats on how your Page's recent Page Likes A75% People Reached A81% stories have performed. Recommendations Post Engagement Videos t December 23-January 19 I,er 23-January 19 December 23-January 19 601 27 Post Engagement A99% 3-Second Video Views.51°� We have insufficient data to show for the selected time period. Page Followers J Orders December 23-January 19 December 23-January 19 8 0 Page Followers LIDO% Number of Orders A0% A 0 Reach:Organic Paid — B Post Cicka R.ea=-= e Published Post Type Targeting Reach Engagement 01/20;2023 he C•arge County Sanitatior 9:0C AL: District honors the life and legacy o` - 4 0111 7 120 20 Construction,construction-arc 11 9:26 AV more constriction. Get l e latest FL. _- 5 0111W2020 ® Tonight the rain is expected to 2 5:00 ant come!Heavy rains=hgher eves o` 10 01/t512020 VJe krow that water is an invaluable it 1c 31 AM resource and tnat each one of us r 228 19 . 01115/2020 We are so sorry to hear of the loss 40 9:34 AM o`long tine District Engineer Rob r 331 23 011=2020 ■ Its a WastewaterwordWednesdayl r � 305 � 34 � 1 co�M Today we're telling you about the 28 01/0112020 Happy New Year from the Orange — 8 9:6D AM County Sanitation District!We hope r 21 I 12/31/2019 ■ Just a reminder that our rr1 5 12:co r 1S8 PM Administrative offices will be closed 8 1213112019 Flushable wipes may fush down r 959 115 — 9:00 AM your toi:et but this is what happens 45 12/25/2019 Merry Christmas from the Orange r N 223 15 9:1c AN County Sanitation D.st-ict!Hope you 17 12/24/2019 Heavy rains=h gher levels V water r 300 — 9 2 1C0-rt at the treatment plants. Heep us 12 12/23/2018 This ho day seascn.OCSD 70 — 12 cC�V emoloyees doratec roJghly 300 11 3458 37 1&2112019 ® we'- we F rst Day of Winter'!!',�;e love r 153 5 9:C C AU the coo:er weatne'we' e ceen 4 1 2 20120 1 9 Did you krow that OCSD was 28 _-I=r� grantee a patent by the J.S.Patent r 11A 303 37 1 2/2012 0 1 9 e Just a reminder that our 3 9:a6 AM Aoministrativ Offices e Oces wiltr 142 be cased 8 12118/2019 ■ Have a hard for solving technoogy Ip 356 34 12:co PM ssues 7 Well.our-T team is on the 28 12M8/2019 NOsdYouKncw D The first recorded 13 9:l><7AM use of underground clay pioes for r N 247 1S 12/1712019 7omor-ow right our Stee•ing 1 i 154 4 t251�t.e Committee and Eoarc meetirg vn I 5 1211T12019 Tomorrow right our Steering t54 4 `4�N Committee and Board meetirg 01 ro 5 12/1272019 Happy Thursday!Todays 16 12-M°M Othfowbackthursday photo is from r 229 9 12111r2019 Tonight OCSO s Administration �— 150 4 11.34 AM Committee is meeorg at 5 p.m. at O N 3 1210OW19 On Monday.December gth the — 3 9.00 AM Legislative and Public A'fairs r 143 3 12/0512019 ® Cormnuing with the sewer work at r 218 — 5 7.s9 AU State Coilege and Orangewood it 2 121042019 Join us for OCSO s Operations t 5' 61C 13 AM Committee meetirg tonight at 5 p.m t7 2 12/03/2019 nm Today is#G AngTuesday!What are ka oa 9:01 AM you doing today to help those fn Twitter Posts Dec 2019 and Jan 2020 rl& OC Sewers _ Page poat d daily 28 day summary ," change over orevious period -_ - -s Profile visits Mentions Followers 6-153.8°0 7,981 I.72.0°r° 62 y7o_a°r° 2 �71.a°io 1,628 4--5 Grow your audir Jan 2020.19 days so far.. TWEET HIGHLIGHTS Top Tweet earned 279 impression: Top media TNeet rned 158 impressions Get your Tweets in front of We know that water is an invaluable Have a hand for solving technology issues? more people resource and that each one of us needs to Well,our IT team is on the lookout for you! Promoted Tweets and content open up your protect it.That's why at#OC SD we started Find out all the details at ocsd.com/about- reach on Twitter to more people. monitoring the ocean's water quality in 1960. us/jobs/_..pictwitter com/Ynpcgjet4K #WaybaekWednesday#ItsWhatWeDo pic.t Witter comltn2jDwZY03 JAN 2020 SUTAMARv Tweets Twee[Impresons 4 4,689 51 - `-nsi� New rolbwers 35 -2 ta, •z 2 View Tweet activity View all Tweet activity Yew Tweet activity View all Tweet activity Top Follower followed by 2.065 people W�JIIGEST ©©ail© ©©ME] Water Digest @TheWaterDigest FoLtoySvou Water Digest as a platform of knowledge,offers both solutions and exchange of ideas that lead to better understanding of pro=faced in this water sector. View profile View followers dashboard OeC 2U19.31 days T,,EE'''-I-, _-- rS DEC 2019 SUMMARY Top Tweet earned 8,935 impressions Top mention earned 19 engagements T—en Tweet impressions Construction continues in CA Clean Water Pros 11 25.8K @City_of Anaheim New locations starting V yea Me— next week.Check out McODO ocsd com/statecollege for details. Don't forget to raise glass the 203 5 #OCSDStateCollege#Fixing The Sewers pi wastewater heroes inn your community and c-twittercomlFdyzmTd7rU into the new decade as they work around the clock to keep Califomia's water clean! New snows ® 3 Cheers!= (Pictured w..a.i«xiae>onow @CentralSan @CityofRoseville @LACity ���•,.d�m,z o @CWEASanDiego @CityOfRiverside @O o CWDWaterNews @OCSewers) �,,..•"n��s�ieT �• '" _ Pic.twitter.com./fC9hIKvOYC t'i'_ • View Tweet activity View all Tweet activity P Top Follower followed by 1,686 people •3 View Tweet .0 Top media Tweet earned 1.036 impressions Fort Worth Water Dept Did you know that OCSD was ranted a @FeVWater FoaovSYou y g patent by the U.S.Patent and Trademark Fort Worth Water•/a emergencies:co/eiH6ig UAs 12-4477 Office?Our odor Control efforts were proven H2OMGl Podcast https/tt-co?eiH6i9DUAs I https7/too/vpOFFcldHg Spanish:@FWAgua YouTube: to be So awesome that we got a patent for hHps7R.00/NBrpinvQHgq our process.Yay Us!Read all about it at View profile View followers dashboard ocsd.com. #OCSDproud pic.twitter com!TRkPGUX1 ix Instagram Posts Dec 2019 and Jan 2020 0 f: 63 oc s D.U40 n.DC S drt� Ds l 9row0¢s wawa wu�n6xmn vcmnant,saC naerAeg for .ypa.3 6 mhun pcopb r.C"A A+r 1h Qagc CnsRy •nvrpcad[Om Conserve Water --R plop �. <t lu 111 Mt Legislative& MAJOR TRAFFIC Public Affairs TRICTIONS Meeting All Boardroom a r� i - - Article Date Source Link Wastewater authority receives report on https://www.latimes.com/socal/daily-pilot/news/story/2020-01-09/wastewater-authority- Laguna Beach Thanksgiving sewage spill Jan. 9, 2020 Daily Pilot receives-report-on-laguna-beach-thanksgiving-sewageI spill No one injured in blast at water treatment Jan. 10, 2020 https://www.latimes.com/california/story/2020-01-10/no-one-injured-in-blast-at-water- plant in Corona LA Times treatment-plant-in-corona Desalinomics: How Taxpayers Created the https://www.surfcitvvoice.com/2020/01/13/desalinomics-how-taxpavers-created-the- Desalination Industry Jan. 13, 2020 Surf City Voice desalination-industry/ 11,000-gallon sewage spill closes Long htt s: www.ocre ister.com 2020 01 13 11000- allon-sewa a-s ill-closes-Ion -beach-waters-to Beach waters to swimmers Jan. 13, 2020 OC Register swimmers/ Garden Grove Mayor Steve Jones Selected http://www.publicnow.com/view/124ADAE19C9A4CE7lF54A5D24F1512186964CDAE?2020-01- as New OCTA Chairman Jan. 13, 2020 OCTA Press Release 13-23:30:21+00:00-xxx7066 Garden Grove Mayor Steve Jones selected http://www.oc-breeze.com/2020/01/14/150906 garden-grove-mayor-steve-Tones-selected-as- as new OCTA chairman Jan. 14, 2020 OC Breeze new-octa-chairman/ 'Forever chemicals' in Orange County drinking water to force widespread well https://www.ocregister.com/2020/01/17/forever-chemicals-in-orange-county-drinking-water-to- closures.Treatment plans are underway, but force-widespread-well-closures/ more costly imported water will be used in the interim IJan. 17, 2020 1 OC Register 7 r l Will, y talika Public Affairs Update 0 fRON ` 'MM Daisy Covarrubias, Principal Public Affairs Specialist Legislative and Public Affairs Committee rib February 10, 2019 - >< ;�• tea I � - {3 lC What We Did Tours Participated in : 18 tours / 371 guests • Holiday Luncheons 5 speaking engagements • Spark of Love Toy Drive • CASA Conference Social Media © O • Construction Network P3S Conference Twitter: • OF SANITATION AGENCIES • SEHB Area Councilfuturp 15 tweets CommunityMeetingclean water future 0 30k impressions Facebook: �- - P, 25 posts °' - 1.5k reach Ad d Instag ram : v 15 posts '- 285 impressions ULA What Upcoming Activities state College sewer Construction State College I e e Sewer Project Jj e ct s g Community Meetings F.«Nn. Honor Walk Nominations uhrM • Community Outreach Events JMMlIY 3 c v ?� r oJ�V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 LEGISLATIVE AND PUBLIC AFFAIRS (714)5937433 COMMITTEE 9oTFCTN0 THE Agenda Report File #: 2020-924 Agenda Date: 2/26/2020 Agenda Item No: 17. FROM: James D. Herberg, General Manager SUBJECT: LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF JANUARY 2020 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of January 2020. BACKGROUND The Orange County Sanitation District's (Sanitation District) legislative affairs program includes advocating the Sanitation District's legislative interests; sponsoring legislation (where appropriate); and seeking Local, State, and Federal funding for projects and programs. Staff will provide an update on recent legislative and grant activities. RELEVANT STANDARDS • Maintain influential legislative advocacy and a public outreach program • Build brand, trust, and support with policy makers and community leaders • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM Without a strong advocacy program, elected officials may not be aware that the Sanitation District is more than a wastewater treatment plant - treating and sending water to the ocean. The Sanitation District is an environmentally engaged organization which recycles more than 50 percent of its wastewater. Additionally, to help meet the goal of 100 percent recycling, the Sanitation District uses the byproducts from the wastewater treatment process to produce biosolids to fertilize crops and energy used to help power the two plants in Fountain Valley and Huntington Beach. PROPOSED SOLUTION Continue to work with Local, State, and Federal officials to advocate the Sanitation District's legislative interests. Help to create/monitor legislation and grants that would benefit the Sanitation Orange County Sanitation District Page 1 of 2 Printed on 2/20/2020 powered by LegistarTM File #: 2020-924 Agenda Date: 2/26/2020 Agenda Item No: 17. District, the wastewater industry, and the community as a whole. To assist in our relationship building activities, we will continue to reach out to our elected officials providing facility tours, one-on-one meetings, and trips to D.C. and Sacramento. TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION If we do not work with Local, State, and Federal elected officials, legislation could be passed that negatively affects the Sanitation District and the wastewater industry as a whole. Additionally, this could affect our chances of receiving grant funding. ADDITIONAL INFORMATION To assist our committee and staff with key legislative message points, staff has created a 2020 Legislative Priorities Key Message Card. The card, which is the size of a business card, will be distributed to the Legislative and Public Affairs Committee at the February 10 meeting. The card is meant to have short, key messages that will provide a highlight of our State and Federal priorities to be used when talking to member agencies, city representatives, and legislative officials. The Sanitation District signed onto a joint coalition letter with the Bioenergy Association of California and the California Association of Sanitation Agencies, along with other agencies, to request funding from Senator Ben Allen, Chairman of the Senate Environmental Quality Committee. The funding request is for organic waste diversion and recycling in the pending climate resilience bond legislation. FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Federal Update - ENS Resources • Federal Legislative Matrix - ENS Resources • State Update - Townsend Public Affairs • State Legislative Matrix - Townsend Public Affairs • Coalition Letter for Bond Funding • Grant Matrix • Presentations from 02/10/2020 LaPA Committee Meeting Orange County Sanitation District Page 2 of 2 Printed on 2/20/2020 powered by LegistarTM ■ ' 1 i 7% LLl V6P RESOURCES MEMORANDUM TO: Rebecca Long FROM: Eric Sapirstein DATE: January 17, 2020 SUBJECT: Washington Update Congress returned to work January 7, kicking off the second session of the 116th Congress. Given the fact that the session will be influenced by the Senate impeachment trial, much of the legislative activity will center on the House over the next several weeks. The legislative agenda will pick-up from last year's unfinished business. This includes how to protect public health through regulation of the Perfluorooctanoic acid and perfluorooctane sulfonate (PFAS/PFOA) family of chemicals, as well as who should be responsible for the clean-up of contaminated soils and groundwaters. The renewal of a Water Resources Development Act, adoption of FY 2021 spending bills, and passage of water infrastructure and drought legislation are expected to capture Congress's attention. The following summarizes the status of these and other matters as Congress prepares to resume legislative work, leading up to the November elections. Fiscal Year 2020 Spending Decisions Establish Baseline for 2021 Spending Bills The congressional agreement to finalize the spending priorities for the remaining months of FY 2020 was important for more than putting in place spending for the remaining nine months of the year. It is also notable because even if a stop gap continuing resolution is required during the election cycle for FY 2021, which begins on October 1, 2020, spending will be set at levels that will provide meaningful spending levels for programs of interest to OCSD. As enacted into law,the funding agreement supports the State Revolving Fund (SRF),Water Infrastructure Finance and Innovation Act (WIFIA), WaterSmart and alternative water supply project funding assistance related to water recycling and desalination. Overall, funding levels included $1.3 billion for the Clean Water SRF program, as well as $28 million to support for the new stormwater/Combined Sewer Overflow grants assistance program for publicly owned treatment works (POTWs). 2 1 P a g e Congress defeated efforts to impose policy riders to require regulation of clean water agencies related to PFAS chemicals. It did, however, include several millions of dollars in PFAS-related funding of research to help set monitoring standards and a national drinking water standard (MCL) under the Safe Drinking Water Act. PFAS Compromise Limits Impact to Public Agencies Under NDAA, But House Moves Separate Legislation as First Order of Business in New Session The House and Senate Committees on Armed Services finalized a National Defense Authorization Act (NDAA, S. 1790) agreement that was signed into law with a handful of PFAS-related provisions. The long-delayed agreement includes a scaled- back series of provisions to address groundwater contamination from PFAS chemicals. The agreement means that public agencies and ratepayers would not be unduly burdened with costly mandates to address PFAS contamination that were created by industry. The agreement means the potential for Superfund liability for cleanup costs is temporarily on hold. The Senate defeated proposals to rely on Superfund's liability framework that held the potential for cleanup directives issued to agencies simply because an agency received contaminated waters in the course of providing a public service. However,the agreement did impose a series of new mandates that may impact public agencies. Among the provisions are: a new priority for the monitoring for emerging contaminants of concern, monitoring surveys into the presence of PFAS chemicals in waterways, and requirements to issue monitoring and treatment standards. One notable provision will directly impact clean water agencies. It involves a directive that United States Environmental Protection Agency (USEPA) issue "interim" guidance on how to treat and dispose of biosolids, spent water filters and leachates that contain PFAS chemicals. It is unclear how USEPA would develop such guidance. It has one year from enactment of the measure to issue the guidance. While designation of PFAS/PFOA chemicals as hazardous substances under Superfund were left out of the NDAA package,the debate over the issue resurfaced in January when the House approved the PFAS Action Act (H.R. 535). The bill moved on a bipartisan vote with two dozen Republican votes in favor. H.R. 535 is a collection of PFAS regulation and cleanup mandates that failed to be included in the NDAA compromise. Under the House-passed measure, PFAS family of chemicals would be designated as a hazardous substance under Superfund. If enacted,this provision could expose clean water agencies to potential Superfund liability for treating and disposing of PFAS contaminated materials, including biosolids. The White House issued a forceful veto threat on H.R. 535.Adding to the tough legislative climb for H.R. 535 is a statement from Senate Committee on Environment and Public Works Chairman John Barrasso (R-WY), upon House passage, who effectively highlighted the fact that H.R. 535 is dead on arrival in the Senate. 3 1 P a g e White House to Transmit 2021 Federal Budget in February The FY 2021 budget request will be formally transmitted by the White House to Congress on February 10. The action could improve the odds that Congress will have adequate time to develop spending bills by October 1, 2020 and avoid the need for a stopgap spending bill to cover the months when Congress will be on recess in the run-up to the November elections. An optimistic outlook is only possible because Congress and the White House last year reached a two-year budget agreement that established total spending. This means that Congress could speed consideration of individual agency spending bills later this spring and summer. WOTUS Rewrite Imminent After three years of effort to repeal the Obama Administration's rulemaking that defined and governed waters subject to regulation under the Clean Water Act. The White House and USEPA are readying the publication of a final rule known as the Waters of the U.S. Under the soon-to-be publication in the Federal Register,the rulemaking is expected to limit waterways subject to regulation and preserve the existing regulatory exemptions for wastewater discharges that are regulated through the NPDES program. NEPA Rewrite Underway The Administration is readying a second major environmental rule revision, following its Waters of the United States (WOTUS) rewrite. After months of reviews, the National Environmental Policy Act (NEPA) will be revamped by a formal rulemaking. Under the revision, the White House is working to streamline project reviews to allow for speedier approvals and construction of projects. The proposal would impact projects ranging from water to road projects. Under the fifty-year old law,which has never been updated, project approvals have in some instances required a decade to be reviewed and approved. Under the rule revision, project reviews would be subjected to specific timetables and one federal agency would be designated as a lead agency to reduce multiple project reviews that can often be duplicative. Environmental organizations are expected to litigate the rule. ENS Resources,Inc. 1901 Pennsylvania Avenue,N.W. Suite 1005 Washington,D.C.20006 Phone 202.466.3755/Telefax 202.466.3787 OCSD Federal Bills of Interest ACTIONOTHER MM dr q1 ML OCSID POSITION POSITIONS Federal Legislation 2019-2020 Water Recycling Investment and Improvement Act. Establishes a grant House-6/13/19 H.R. 1162 Rep. Grace Napolitano(D-CA) program for the funding of water recycling and reuse projects,and for other Subcommittees Hearings Watch CASA SUPPORTS purposes. held Water Quality Protection and Job Creation Act of 2019. Provides nearly House-10/29/19 $23.5 billion in direct infrastructure investment over the next five years to Ordered to be Reported address wastewater infrastructure and local water quality challenges.This Out as amended by H.R. 1497 Rep. Peter DeFazio(D-OR) bill allocates$20 billion in grants for the Clean Water State Revolving Fund. voice vote Watch CASA SUPPORTS PFAS Action Act of 2019. To require the Administrator of the Environmental House-1/13/20 Passed Protection Agency to shall designate per-and polyfluoroalkyl substances as House and reported to H.R.535 Rep. Debbie Dingell (D-MI) hazardous substances under the Comprehensive Environmental Response, the Senate Committee Watch NYC Compensation,and Liability Act of 1980. on Environment and Public Works Pacific Northwest Earthquake Preparedness Act of 2019. Requires the House-2/6/19 Passed FEMA to develop a plan for the purchase and installation of an earthquake House by voice vote, early warning system for the Cascadia Subduction Zone.The term "Cascadia received in Senate and H.R.876 Rep. Peter DeFazio (D-OR) Subduction Zone". referred to Committee Watch NYC on Homeland Security and Governmental Affa i rs Regulatory Certainty for Navigable Waters Act. Repeals the Waters of the House-2/7/19 Referred United States rule and amend the Federal Water Pollution Control Act to Subcommittee on H.R.667 Rep.Jaime Herrera Beutler(R-WA) definition of navigable waters, and for other purposes. Water Resources and Watch NYC Environment Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER AUTHORBILL I d= SUMMARY OCSID POSITION POSITIONS IMAGINE Act. A bill to encourage the research and use of innovative Senate-2/7/19 Referred S.403 Sen.Sheldon Whitehouse(D-RI) materials and associated techniques in the construction and preservation of to Committee on Watch NYC the domestic transportation and water infrastructure system, and for other Environment and Public purposes. Works Toxic Health Threat Warning Act of 2019. To require the Corps of Engineers House-2/7/19 Referred to notify affected communities before releasing water contaminated with to Subcommittee on H.R.977 Rep. Brian Mast(R-FL) cyanobacteria from flood risk management projects,and for other purposes. Water Resources and Watch NYC Environment To amend the Federal Water Pollution Control Act to limit attorney fees House-2/7/19 Referred and penalties in citizen suits,and for other purposes. to Subcommittee on H.R.892 Rep. Duncan Hunter(R-CA) Water Resources and Watch NYC Environment California New River Restoration Act of 2019. Requires the USEPA to House-2/7/19 Referred establish a California New River restoration program for the New River. to Subcommittee on USEPA must(1)implement projects, plans,and initiatives for the New River Water Resources and H.R.358 Rep.Juan Vargas(D-CA) supported by the California-Mexico Border Relations Council;and (2) Environment Watch NYC provide grants and technical assistance for coordinating restoration and protection activities. Defense Environment and Property Act of 2019. A bill to amend the Senate-2/7/19 Referred S.376 Sen. Rand Paul (R-KY) Federal Water Pollution Control Act to clarify the definition of navigable to Committee on Watch NYC waters,and for other purposes. Environment and Public Works Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER AUTHOR A SUMMARY 4ELE M OCSID POSITION POSITIONS National Infrastructure Development Bank Act. Facilitates efficient House-2/7/19 Referred investments and financing of infrastructure projects and new job creation to Subcommittee on through the establishment of a National Infrastructure Development Bank, Economic Development, H.R.658 Rep. Rosa DeLauro and for other purposes. Public Buildings,and Watch NYC Emergency Management To amend the Water Resources Development Act of 1986 to repeal the House-2/12/19 authority relating to reprogramming during national emergencies. Referred to the H.R. 1137 Rep.John Garamendi (D-CA) Subcommittee on Water Watch NYC Resources and Environment Coastal Communities Adaption Act. Improves the resilience of the built and House-3/619 Referred natural environment to natural disasters and climate change using,among to Subcommittee on H.R. 1317 Rep. Harley Rouda (D-CA) Watch NYC other measures, natural and nature-based features,and for other purposes. Water Resources and Environment PFAS Action Act. A bill to require the Administrator of the Environmental Senate-2/28/19 Protection Agency to designate per-and polyfluoroalkyl substances as Referred to Committee S.638 Sen.Tom Carper(D-DE) hazardous substances under the Comprehensive Environmental Response, on Environment and Watch NYC Compensation, Liability Act of 1980,and for other purposes. Public Works Water Affordability,Transparency,Equity,and Reliability Act of 2019. A Senate-2/28/19 bill to provide adequate funding for water and sewer infrastructure,and for Referred to Committee S.611 Sen. Bernie Sanders(I-VT) Watch NYC other purposes. on Environment and Public Works Local Water Protection Act. To amend the Federal Water Pollution Control House-4/9/19 Passed Act to reauthorize certain programs relating to nonpoint source House 329-56. Received H.R. 1331 Rep.Angie Craig(D-MN) management, and for other purposes. in Senate, referred to Watch NYC Committee on Environment and Public Works Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER ML AUTHOR SUMMARY OCSID POSITION POSITIONS To amend the Federal Water Pollution Control Act with respect to House-3/15/19 permitting terms,and for other purposes. Referred to CASA, NACWA, H.R. 1764 Rep.John Garamendi (D-CA) Subcommittee on Water Watch ACWA-SUPPORTS Resources and Environment PFAS Detection Act of 2019. Requires the Director of the United States Senate-3/28/19 S.950 Sen. Debbie Stabenow(D-MI) Geological Survey to perform a nationwide survey of perfluorinated Referred to Committee Watch NYC compounds,and for other purposes. on Environment and Public Works BLUE GLOBE Act. Improves data collection and monitoring of the Great Senate-3/28/19 Lakes,oceans, bays,estuaries,and coasts,and for other purposes. Referred to Committee S.933 Sen.Sheldon Whitehouse(D-RI) Watch NYC on Commerce,Science, and Transportation Coordinated Ocean Observations and Research Act of 2019. Reauthorizes Senate-12/5/19 Placed the Integrated Coastal and Ocean Observation System Act of 2009,to clarify on Senate Legislative the authority of the Administrator of the National Oceanic and Atmospheric Calendar 5.914 Sen. Roger Wicker(R-MS) Watch NYC Administration with respect to post-storm assessments,and to require the establishment of a National Water Center, and for other purposes. Smart Energy and Water Efficiency Act of 2019. Provides for a smart water House-4/9/19 Referred H.R.2019 Rep.Jerry McNerney(D-CA) resource management pilot program. to Committee on Watch NYC Science,Space, and Technology Indian Water Rights Settlement Extension Act.Amends the Omnibus Public House-4/4/19 Land Management Act of 2009 to make the Reclamation Water Settlements Committee on Natural H.R. 1904 Rep. Raul Grijalva (D-CA) Watch NYC Fund permanent. Resources Hearings Held Water Quality Certification Improvement Act of 2019.Amends the Federal House-4/11/19 Water Pollution Control Act to make changes with respect to water quality Referred to H.R.2205 Rep. David McKinley(R-WV) certification,and for other purposes. Subcommittee on Water Watch NYC Resources and Environment Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER ML AUTHOR Ai E SUMMARY —16 OCSID POSITION POSITIONS Digital Coast Act. Requires the Secretary of Commerce,acting through the House-11/26/19 Placed Administrator of the National Oceanic and Atmospheric Administration,to on Union Calendar establish a constituent-driven program to provide a digital information H.R.2189 Rep. Dutch Ruppersberger(D-MD) platform capable of efficiently integrating coastal data with decision-support Watch NYC tools,training, and best practices and to support collection of priority coastal geospatial data to inform and improve local,State, regional,and Federal capacities to manage the coastal region,and for other purposes. Digital Coast Act. A bill to require the Secretary of Commerce,acting Senate- 11/13/19 through the Administrator of the National Oceanic and Atmospheric Ordered to be Reported Administration,to establish a constituent-driven program to provide a out of Committee on digital information platform capable of efficiently integrating coastal data Commerce,Science, and S. 1069 Sen.Tammy Baldwin (D-WI) with decision-support tools,training,and best practices and to support Transportation favorably Watch NYC collection of priority coastal geospatial data to inform and improve local, State, regional,and Federal capacities to manage the coastal region,and for other purposes. Water Quality Certification Improvement Act of 2019. A bill to amend the Senate-11/19/19 Federal Water Pollution Control Act to make changes with respect to water Committee on S. 1087 Sen.John Barrasso(R-WY) quality certification, and for other purposes. Environment and Public Watch NYC Works hearings held S.A.V.E.Water Resources Act. Promotes water supply reliability and House-6/13/19 H.R.2473 Rep.Josh Harder(D-CA) improved water management for rural communities, the State of Subcommittees Hearings Watch NYC California, and the Nation, and for other purposes. held Safe Drinking Water Assistance Act of 2019. Improves and coordinate Senate-4/30/19 interagency Federal actions and provide assistance to States for responding Referred to Committee S. 1251 Sen.Jeanne Shaheen (D-NH) Watch NYC to public health challenges posed by emerging contaminants,and for other on Environment and purposes. Public Works Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER BILL AUTHOR Am SUMMARY ail& OCSID POSITION POSITIONS WISE Act.Amends the Federal Water Pollution Control Act to require a House-5/2/19 Referred certain percentage of funds appropriated for revolving fund capitalization to Subcomittee of Water H.R.2458 Rep. Debbie Mucarsel-Powell (D-FL) grants be used for green projects,and for other purposes. Resrources and Watch NYC Environment Protect Drinking Water from PFAS Act of 2019. Requires the Environmental House-9/26/19 Protection Agency(EPA)to address the level of perfluoroalkyl and Forwarded to Full polyfluoroalkyl substances(PFAS) in drinking water.Specifically,the EPA Committee by voice vote H.R.2377 Rep. Brendan Boyle(D-PA) must publish a maximum contaminant level goal and promulgate a national Watch NYC primary drinking water regulation for total PFAS. PFAS are man-made chemicals that may lead to adverse human health effects. Providing Financial Assistance for Safe Drinking Water Act. To assist House-9/26/19 community water systems affected by PFAS contamination,and for other Forwarded to Full H.R.2533 Rep. Frank Pallone(D-NJ) Watch NYC purposes. Committee by voice vote To require the Administrator of the Environmental Protection Agency to House-9/26/19 revise the Safer Choice Standard to provide for a Safer Choice label for Forwarded to Full H.R.2566 Rep. Darren Soto(D-FL) Watch NYC pots,pans,and cooking utensils that do not contain PFAS,and for other Committee by voice vote purposes. PFAS Right-To-Know Act.Amends the Emergency Planning and Community House-9/26/19 Right-To-Know Act of 1986 to include per-and polyfluoroalkyl substances on Forwarded to Full H.R.2577 Rep.Antonio Delgado(D-NY) Watch NYC the Toxics Release Inventory, and for other purposes. Committee by voice vote PFAS Accountability Act of 2019. A bill to encourage Federal agencies to Senate-5/8/19 Referred expeditiously enter into or amend cooperative agreements with States for to Committee on S. 1372 Sen. Debbie Stabenow(D-MI) removal and remedial actions to address PFAS contamination in drinking, Environment and Public Watch NYC surface, and ground water and land surface and subsurface strata,and for Works other purposes. Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER =I AUTHOR jM I L SUMMARY OCSID POSITION POSITIONS Water Infrastructure Trust Fund Act of 2019. To establish a Water House-5/15/19 Infrastructure Trust Fund,and for other purposes. Referred to H.R.2705 Rep. Earl Blumenauer(D-OR) Subcommittee on Water Watch NYC Resources and Environment Buy America 2.0 Act. To standardize and extend certain Buy America House-5/16/19 H.R.2755 Rep. Brendan Boyle(D-PA) Provisions. Referred to Watch NYC Subcommittee on Aviation Protect Drinking Water from PFAS Act of 2019. A bill to amend the Safe House-5/15/19 Drinking Water Act to require the Administrator of the Environmental Referred to Committee S. 1473 Sen. Kristen Gillibrand (D-NY) Watch NYC Protection Agency to set maximum contaminant levels for certain chemicals, on Environment and and for other purposes. Public Works Reinventing Economic Partnerships and Infrastructure Redevelopment Act. Senate-5/16/19 A bill to facilitate efficient investments and financing of infrastructure Referred to Committee S. 1535 Sen. Mark Warner(D-VA) projects and new, long-term job creation through the establishment of an on Finance Watch NYC Infrastructure Financing Authority,and for other purposes. Stop Sewage Overflow Act. To make certain municipalities eligible for House-5/16/19 grants under the Federal Water Pollution Control Act,and for other Referred to H.R.2776 Rep. Lori Trahan (D-MA) purposes. Subcommittee on Water Watch NYC Resources and Environment PFAS Monitoring Act of 2019. To amend the Safe Drinking Water Act to House-5/16/19 require continued and expanded monitoring of perfluoroalkyl and Referred to Committee H.R.2800 Rep. Elissa Slotkin (D-MI) Watch NYC polyfluoroalkyl substances in drinking water,and for other purposes. on Energy and Commerce Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER AUTHORBILL OCSID POSITION POSITIONS A bill to include certain perfluoroalkyl and polyfluoroalkyl substances in Senate-6/27/19 Passed the toxics release inventory,and for other purposes. as an amendment to S. 1507 Sen.Shelley Moore Capito(D-WV) National Defense Watch NYC Authorization Act(S. 1790) Contaminant and Lead Electronic Accounting and Reporting Requirements Senate-5/22/19 for(CLEARR)Drinking Water Act of 2019. Amends the Safe Drinking Water Referred to Committee S.1613 Sen. Ed Markey(D-MA) Act to update and modernize the reporting requirements for contaminants, on Environment and Watch NYC including lead, in drinking water,and for other purposes. Public Works Aquifer Recharge Flexibility Act. Provides flexibility to allow greater aquifer Senate-10/29/19 S.1570 Sen.James Risch (R-ID) recharge,and for other purposes. Placed on Senate Watch NYC Legislative Calendar Aquifer Recharge Flexibility Act. Provides flexibility to allow greater aquifer House-6/10/19 recharge,and for other purposes. Referred to H.R.2871 Rep. Russ Fulcher(R-ID) Subcommittee on Water Watch NYC Resources and Environment Local Water Protection Act. Amends the Federal Water Pollution Control Senate-5/22/19 Act to reauthorize certain programs relating to nonpoint source Referred to Committee S. 1604 Sen.Amy Klobuchar(D-MN) Watch NYC management,and for other purposes. on Environment and Public Works Living Shorelines Act of 2019. Directs the Administrator of the National Senate-6/5/19 Referred Oceanic and Atmospheric Administration to make grants to State and local to Committee on governments and nongovernmental organizations for purposes of carrying Commerce,Science and S. 1730 Sen. Kamala Harris(D-CA) Watch NYC out climate-resilient living shoreline projects that protect coastal Transportation communities by supporting ecosystem functions and habitats with the use of natural materials and systems,and for other purposes. Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER BILL AUTHOR SUMMARY �& OCSID POSITION ,Jh,. • • • PIPE Act. A bill to require the Administrator of the Environmental Protection Senate-6/13/19 Agency to establish a discretionary grant program for drinking water and Referred to Committee S. 1837 Sen. Kristen Gillibrand (D-NY) Watch NYC wastewater infrastructure projects, and for other purposes. on Environment and Public Works PIPE Act. To require the Administrator of the Environmental Protection House-6/14/19 Agency to establish a discretionary grant program for drinking water and Referred to H.R.3254 Rep.Antonio Delgado(D-NY) wastewater infrastructure projects, and for other purposes. Subcommittee on Water Watch NYC Resources and Environment Wastewater Infrastructure Workforce Investment Act.To amend the House-6/27/19 Federal Water Pollution Control Act with respect to wastewater Referred to the H.R.3521 Rep.Greg Stanton (D-AZ) infrastructure workforce development,and for other purposes. Subcommittee on Water Watch NYC Resources and Environment Coastal State Climate Preparedness Act of 2019. To amend the Coastal House- 11/15/19 Placed Zone Management Act of 1972 to require the Secretary of Commerce to on Union Calendar H.R.3541 Rep.Salud Carbajal (D-CA) Watch NYC establish a coastal climate change adaptation preparedness and response program,and for other purposes. National Opportunity for Lead Exposure Accountability and Deterrence Act Senate-7/11/19 of 2019. To amend the Safe Drinking Water Act to improve transparency Referred to Committee S.2086 Sen.Tammy Duckworth (D-IL) Watch NYC under the national primary drinking water regulations for lead and copper, on Environment and and for other purposes. Public Works Drought Resiliency and Water Supply Infrastructure Act. To support water Senate-7/18/19 CASA, NACWA, S. 1932 Sen. Cory Gardner(R-CO) infrastructure in Reclamation States, and for other purposes. Subcommittee Hearings Watch NWRA,ACWA - Held SUPPORTS Living Shorelines Act of 2019. To direct the Administrator of the National House- 11/26/19 Placed Oceanic and Atmospheric Administration to make grants to State and local on the Union Calendar governments and nongovernmental organizations for purposes of carrying H.R.3115 Rep. Frank Pallone(D-NJ) out climate-resilient living shoreline projects that protect coastal Watch NYC communities by supporting ecosystem functions and habitats with the use of natural materials and systems,and for other purposes. Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER AUTHORML EM I& SUMMARY OCSID POSITION POSITIONS Water Resources Research Amendments Act. To amend the Water House-7/25/19 Resources Research Act of 1984 to reauthorize grants for and require Subcommittee on H.R.3510 Rep.Josh Harder(D-CA) Watch NYC applied water supply research regarding the water resources research and Water, Oceans,and technology institutes established under that Act. Wildlife held Desalination Development Act. To promote desalination project House-7/25/19 development and drought resilience,and for other purposes. Subcommittee on H.R.3723 Rep. Mike Levin (D-CA) Watch NYC Water,Oceans, and Wildlife hearing held National Opportunity for Lead Exposure Accountability and Deterrence Act House-7/10/19 of 2017. To amend the Safe Drinking Water Act to improve transparency Referred to Committee H.R.3677 Rep. Dan Kildee(D-MI) Watch NYC under the national primary drinking water regulations for lead and copper, on Energy and and for other purposes. Commerce Creating Opportunity And Sustainability Through Science Act.To require House-8/7/19 Referred research in coastal sustainability and resilience,to ensure that the Federal to Subcommittee on H.R.3919 Rep.Seth Moulton (D-MA) Government continues to implement and advance coastal resiliency efforts, Water,Oceans, and Watch NYC and for other purposes. Wildlife Environmental Justice Act of 2019. To require Federal agencies to address Senate-7/23/19 S.2236 Sen. Cory Booker(D-NJ) environmental justice,to require consideration of cumulative impacts in Referred to Committee Watch NYC certain permitting decisions, and for other purposes. and Public Works Water Justice Act. To provide supplemental appropriations for safe and House-9/4/19 Referred secure water,and for other purposes. to Subcommittee on H.R.4033 Rep. Dan Kildee(D-MI) Commodity Exchanges, Watch NYC Energy, and Credit Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER AUTHORBILL OCSID POSITION POSITIONS To amend the Water Resources Reform and Development Act of 2014 to House-7/25/19 modify the procedure for communicating certain emergency risks,and for Referred to H.R.3944 Rep. Kevin Hern (R-OK) other purposes. Subcommittee on Water Watch NYC Resources and Environment Environmental Justice Act of 2019. To require Federal agencies to address House-8/15/19 environmental justice,to require consideration of cumulative impacts in Referred to certain permitting decisions,and for other purposes. Subcommittee on the H.R.3923 Rep. Raul Ruiz(D-CA) Watch NYC Constitution,Civil Rights, and Civil Liberties Clean Water Through Green Infrastructure Act. To establish centers of Senate-9/10/19 S.2456 Sen.Tom Udall (D-NM) excellence for innovative stormwater control infrastructure,and for other Referred to Committee Watch NYC purposes. on Environment and Public Works Clean Water Through Green Infrastructure Act. To establish centers of House-9/11/19 excellence for innovative stormwater control infrastructure,and for other Referred to H.R.4266 Rep. Denny Heck(D-WA) purposes. Subcommittee on Water Watch NYC Resources and Environment Water Justice Act. To provide supplemental appropriations for safe and Senate-9/11/19 secure water,and for other purposes. Referred to Committee S.2466 Sen. Kamala Harris(D-CA) Watch NYC on Environment and Public Works Continuing Appropriations Act,2020,and Health Extenders Act of 2019 House-9/27/19 Became H.R.4378 Rep. Nita Lowey(D-NY) Watch NYC law PREPARE Act of 2019. To enhance the Federal Government's planning and House-9/19/19 preparation for extreme weather and the Federal Government's Ordered to be reported dissemination of best practices to respond to extreme weather,thereby out of Committee by H.R.4347 Rep. Matt Cartwright(D-PA) Watch NYC increasing resilience, improving regional coordination,and mitigating the Voice Vote financial risk to the Federal Government from such extreme weather,and for other purposes. Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER AUTHORBILL E SUMMARY OCSID POSITION POSITIONS Voluntary Water Partnership for Distressed Communities Act of 2019. To Senate-10/15/19 amend the Safe Drinking Water Act to authorize certain community water Referred to Committee S.2596 Sen.Tammy Duckworth (D-IL) Watch NYC systems to enter into partnerships to improve the water systems,and for on Environment and other purposes. Public Works Clean Water Infrastructure Resilience and Sustainability Act. To amend the Senate-10/17/19 Federal Water Pollution Control Act to establish a program to make grants Referred to Committee S.2636 Sen. Ben Cardin (D-MD) Watch NYC to eligible entities to increase the resilience of publicly owned treatment on Environment and works to natural hazards,and for other purposes. Public Works SMART Infrastructure Act. To waive certain procurement provisions for a House-10/17/19 project that receives funds from certain Federal agencies. Referred to Committees on Transportation and H.R.4687 Rep. Harley Rouda (D-CA) Infrastructure,Science, Watch NYC Space,and Technology, Agriculture, and Energy and Commerce National Infrastructure Investment Corporation Act of 2019. To establish a House-10/23/19 Government corporation to provide loans and loan guarantees for Referred to H.R.4780 Rep. Salud Carbajal (D-CA) Watch NYC infrastructure projects, and for other purposes. Subcommitee on Highways and Transit Low-Income Water Customer Assistance Programs Act of 2019. To amend Senate-10/23/19 the Safe Drinking Water Act and the Federal Water Pollution Control Act to Referred to Committee S.2687 Sen. Ben Cardin (D-MD) establish pilot programs to assist low-income households in maintaining on Environment and Watch NYC access to sanitation services and drinking water,and for other purposes. Public Works Assuring Quality Water Infrastructure Act. To amend the Safe Drinking Senate-10/23/19 Water Act to establish a grant program for improving infrastructure asset Referred to Committee S.2674 Sen.Shelley Moore Capito(D-WV) Watch NYC management by small public water systems, and for other purposes. on Environment and Public Works Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER AUTHORBILL OCSID POSITION POSITIONS A bill to amend the Federal Water Pollution Control Act to establish a pilot Senate-10/31/19 competitive grant program for improving the sharing of water quality data, Referred to Committee S.2767 Sen. Doug Jones(D-AL) Watch NYC and for other purposes. on Environment and Public Works Disadvantaged Community Drinking Water Assistance Act.To require the House- 12/6/19 Secretary of the Interior to establish a grant program to close gaps in access Referred to Committees H.R.5347 Rep.TJ Cox(D-CA) to safe drinking water in disadvantaged communities,and for other on Natural Resources Watch NYC purposes. and Energy and Commerce Discouraging Frivolous Lawsuits Act.To amend the Federal Water Pollution House-12/9/19 Control Act with respect to citizen suits and the specification of disposal Referred to H.R.5341 Rep.Tom Rice(R-SC) sites,and for other purposes. Subcommittee on Water Watch NYC Resources and Envrionment Affordable Safe Drinking Water Act of 2020.To amend the Federal Water Senate-1/8/20 Referred Pollution Control Act and the Safe Drinking Water Act to modify the to Committee on S.3160 Sen. Elizabeth Warren (D-MA) Watch NYC payment periods of loans from State revolving funds under those Acts,and Environment and Public for other purposes. Works Updated January 2020 OCSD Federal Bills of Interest ACTIONLATEST OTHER AUTHORBILL M SUMMARY • � • • • POSITIONS A bill to amend the Federal Water Pollution Control Act to reauthorize the Senate-1/9/20 Referred S.3171 Sen.Sheldon Whitehouse(D-RI) National Estuary Program,and for other purposes. to Committee on Watch NYC Environment and Public Works Blue Carbon for Our Planet Act.To establish an Interagency Working Group House- 1/13/20 H.R.5589 Rep.Suzzane Bonamici (D-OR) on Coastal Blue Carbon,and for other purposes. Referred to Committee Watch NYC on Natural Resources Encouraging the Environmental Protection Agency to maintain and House-1/14/20 strengthen requirements under the Clean Water Act and reverse ongoing Referred to H.Res.797 Rep. Debbie Dingell (D-MI) administrative actions to weaken this landmark law and protections for Subcommittee on Water Watch NYC United States waters. Resources and Environment Legend: ACC-OC-Association of California Cities,Orange County LOCC-League of California Cities NYC-Not Yet Considered CASA-California Association of Sanitation Agencies NACWA-National Association of Clean Water Agencies ACWA-Association of California Water Agencies CSDA-California Special Districts Association Updated January 2020 T %C)" WNSEND P U B L I C A F F A I R S EST TPA 1998 To: Orange County Sanitation District From: Townsend Public Affairs, Inc. Date: January 20, 2020 Subject: Legislative and Public Affairs Agenda Report State Political Update The Legislature returned from Interim Recess on January 6, 2020 to start the second year of the current two-year session. They face quick deadlines in January 2020 to pass all legislation from last year that did not make it out of its house of origin. The second year of a two-year session is slightly condensed, resulting in quicker policy and appropriations deadlines for bills. Furthermore, the deadline for new bill introductions is on February 21, 2020. Once bills are introduced, they must sit for 30 days before they can be heard in any committee. In late February we will have the full list and perspective of all bills that will be considered in 2020. Housing and homelessness are expected to once again dominate the Legislature's time, however other topics are anticipated to be hotly debated including a natural resources/climate change bond for the November 2020 ballot, development impact fees, and legislation relating to 2020 Ballot Initiatives. Below is a list of key upcoming deadlines in the Legislature: January 31 — Last day for two-year bills to pass their house of origin February 21 — Last day for new bills to be introduced Governor Newsom's January Budget Proposal On January 10, Governor Newsom released his January Budget Proposal for the FY 2020-21 State Budget. The release of the January Budget Proposal marks the official beginning of the state budget process, which will culminate with the Legislature's approval of a state budget by June 15, 2020. The Governor's January Budget Proposal contains $222 billion in proposed expenditures, $153.1 billion of which would be from the State's General Fund. These proposed expenditures represent a 2.2 percent increase in spending over the current adopted budget. The January Budget Proposal also includes a $5.3 billion surplus for FY 2020-21, which is over $1 billion lower than was projected by the Legislative Analyst's Office in November 2019. The Proposal focuses largely on one-time spending items, in addition to investing in the State's Rainy-Day fund and other budget reserves. The Proposal would increase the State's Rainy-Day fund to$18 billion by the end of FY 2020-21 and would reach the constitutional 10 percent reserve cap in FY 2021-22. During his press conference, the Governor touched on nearly all of the major items within his budget proposal; however, the main focuses of his budget include education, housing and homelessness, and climate resiliency. Education: The Governor's January budget proposes $84 billion in Proposition 98 funding for K- 12 and community college districts, up approximately$3.8 billion from the current fiscal year. The bulk of this increase focuses on continued efforts to strengthen underperforming schools, close achievement gaps, and improve student services in K-12 districts. Governor Newsom specifically highlighted efforts to improve funding for teacher recruitment and retention, which total $900.1 million. An additional $100 million will be allocated to provide stipends for individuals who elect to teach at some of the state's most needy districts. Expansion of school meal programs, increased focus on STEM, and additional funding for school facilities are also among the increases outlined in the proposal. Community Colleges: The Governor's January budget offers only minor increases to programs and called on the system to continue gathering data on the implementation of the new Student- Centered Funding Formula. Approximately $83.2 million has been allocated to improve apprenticeship opportunities and $15.8 million has been allocated for Dreamers and other resources for immigrant students. Housing and Homeless: The Governor's January budget proposal builds on investments over the past two budgets in the areas of housing and homelessness. Most notably, the budget contains $750 million in one-time funding to establish the California Access to Housing and Services Fund, which would be administered by the Department of Social Services. This funding would be used to reduce homelessness by moving individuals and families to permanent housing and to increase the number of units available to those that are at risk of becoming homeless. The budget proposes to disperse the funding through regional administrators that can provide short- and long-term rental subsidies, make contributions to the development of units, and stabilize community facilities through capital projects and operating subsidies. These efforts are in addition to the funding that was released via Executive Order earlier in January to secure temporary trailers and tents for emergency shelters for homeless individuals. Natural Resources/Climate Change Resiliency: In addition to the investments in education and housing/homelessness, the Governor's January budget proposal contains significant resources for climate resiliency in response, and preparation, for extreme wildfires, flooding, heat, and mudslides due to climate change. The cornerstone of the Governor's proposal is a new $4.75 billion climate resiliency bond that the Governor proposes to be placed on the November 2020 ballot. C) January 2020 Report 2 The bond measure would provide funding to five major areas: Drinking Water, Flood, Drought ($2.913), Wildfire ($750M), Sea Level Rise ($500M), Extreme Heat ($325M), and Community Resilience ($250M). In addition to the new bond measure, the Governor's budget proposes $1.7 billion in climate related investments in FY 2020-21 and $12.4 billion in investments (including the bond) over the next five years. These additional funds would be spread over a large number of programs that focus on responding to the climate problem, including: transportation emission reductions, smart agriculture and forestry, water resiliency, and emergency response and preparedness. The January budget proposal also includes a draft $965 million Cap and Trade expenditure plan which furthers the Administration's climate change goals. Included in the draft expenditure plan is $35 million in strategic investments for reducing or eliminating short-lived climate pollutants such as methane. This funding level has been standard for several years now, despite a concerted effort from the sanitation and municipal government industries for a significant increase. It is expected that the money will be distributed through existing grant programs offered by CalRecycle. Next Steps: The next step in the budget process is for the Legislature to begin to consider the Governor's budget. In the coming weeks, the Senate and Assembly Budget Committee, and the various Budget Subcommittees, will conduct hearings to receive more detail about the various items within the Governor's budget proposal. Additionally, the committees will begin the process of determining legislative priorities for inclusion in the budget. These hearings will continue for several months until the Governor releases his May Revise of the budget, which will contain updated revenue and expenditure figures, revised policy proposals, and incorporate certain legislative items. Once the May Revise is released, the Legislature will move swiftly to make final changes to the FY 2020-21 budget, which they will need to approve by June 15. Governor's Draft Climate Resiliency Portfolio In April 2019, Governor Newsom signed an executive order directing three major State agencies including the California Environmental Protection Agency (CaIEPA), the California Department of Food and Agriculture, and the California Natural Resources Agency to create a forward thinking approach toward implementing a new water system in California that is climate resilient. With a significant amount of emphasis from the Administration with regards to climate change awareness and activity, this proposed Water Resilience Portfolio will be the blueprint for a sustainable water future in California. On January 3, 2020, the Newsom Administration released a draft Water Resilience Portfolio for public comment and review. The Portfolio recognizes that no single solution will solve California's water problems or prepare its water system for the future and for climate resiliency. As a result, it lists several goals and actions for the State to implement to prepare for the future. Written feedback is due by February 7, and the final Water Resilience Portfolio is expected to be released in Spring 2020. C) January 2020 Report 3 OCSD State Bills of Interest SUMMARY LATEST ACTION OCSD LEGISLATIVE PLAN OTHER POSITION POSITIONS • . . . 2019-2020 High Priority AB 11 Chiu [D] Community Redevelopment Law of 2019 Current law dissolved Two Year Bill Watch State Priorities: Continue to ACCOC - NYC redevelopment agencies as of February 1, 2012, and designates monitor the state budget LOCC -Watch successor agencies to act as successor entities to the dissolved process and actively protect CASA- NYC redevelopment agencies. This bill, the Community Redevelopment Law the allocation of local ACWA- NYC of 2019, would authorize a city or county, or two or more cities acting property taxes to CSDA- Oppose jointly, to propose the formation of an affordable housing and special districts. unless amended infrastructure agency by adoption of a resolution of intention that meets specified requirements, including that the resolution of intention include a passthrough provision and an override passthrough provision, as defined. AB 68 Ting [D] Land use: accessory dwelling units. The Planning and Zoning Law Signed into law Watch Legislative and Regulatory ACCOC - NYC authorizes a local agency to provide, by ordinance, for the creation of Policies: Special Districts - LOCC -Watch accessory dwelling units in single-family and multifamily residential Oppose further state CASA- NYC zones and sets forth required ordinance standards, including, among regulations that adversely ACWA- NYC others, lot coverage. This bill would delete the provision authorizing the impact special district CSDA-Watch imposition of standards on lot coverage and would prohibit an ordinance financing, operations, and from imposing requirements on minimum lot size. administration. AB 69 Ting [D] Land use: accessory dwelling units. Current law requires the Two Year Bill Watch Legislative and Regulatory ACCOC - NYC Department of Housing and Community Development to propose Policies: Special Districts - LOCC -Watch building standards to the California Building Standards Commission, and Oppose further state CASA- NYC to adopt, amend, or repeal rules and regulations governing, among other regulations that adversely ACWA- NYC things, apartment houses and dwellings, as specified. This bill would impact special district CSDA-Watch require the department to propose small home building standards financing, operations, and governing accessory dwelling units smaller than 800 square feet,junior administration. accessory dwelling units, and detached dwelling units smaller than 800 square feet, as specified, and to submit the small home building standards to the California Building Standards Commission for adoption on or before January 1, 2021. AB 134 Bloom [D] Safe Drinking Water Restoration Would require the State Water Two Year Bill Watch State Priorities: Support ACCOC - NYC Resources Control Board to report to the Legislature by July 1, 2025, on legislation or regulations that LOCC -Watch its progress in restoring safe drinking water to all California communities restrict the use of CASA- NYC and to create an internet website that provides data transparency for all microplastics in any product ACWA- NYC of the board's activities described in this measure. The bill would require that is disposed of through CSDA-Watch the board to develop metrics to measure the efficacy of the fund in the sewer system. ensuring safe and affordable drinking water for all Californians. OCSD State Bills of Interest . . AB 223 Stone [D] California Safe Drinking Water Act: microplastics The California Safe Two Year Bill Watch State Priorities: Support ACCOC- NYC Drinking Water Act requires the State Water Resources Control Board to legislation or regulations that LOCC -Watch administer provisions relating to the regulation of drinking water to restrict the use of CASA- NYC protect public health. Current law requires the state board, on or before microplastics in any product ACWA- NYC July 1, 2020, to adopt a definition of microplastics in drinking water and, that is disposed of through CSDA-Watch on or before July 1, 2021, to adopt a standard methodology to be used in the sewer system. the testing of drinking water for microplastics and requirements for 4 years of testing and reporting of microplastics in drinking water, including public disclosure of those results. This bill would require the state board, to the extent possible, and where feasible and cost effective, to work with the State Department of Public Health in complying with those requirements. AB 231 Mathis [R] California Environmental Quality Act: exemption: recycled water. Two Year Bill Watch State Priorities: Support ACCOC - NYC Would exempt from CEQA a project to construct or expand a recycled efforts to reform the LOCC -Watch water pipeline for the purpose of mitigating drought conditions for which California Environmental CASA- NYC a state of emergency was proclaimed by the Governor if the project Quality Act (CEQA)to ACWA- NYC meets specified criteria. Because a lead agency would be required to streamline current CSDA- Support determine if a project qualifies for this exemption, this bill would impose procedures a state-mandated local program. The bill would also exempt from CEQA and regulations for projects the development and approval of building standards by state agencies to refurbish or replace for recycled water systems. existing infrastructure facilities. AB 291 Chu Emergency preparedness Would establish a Local Emergency Two Year Bill Watch State Priorities: Secure ACCOC - NYC Preparedness and Hazard Mitigation Fund to support staffing, planning, funding through grants and LOCC -Watch and other emergency mitigation priorities to help local governments meet legislation for infrastructure, CASA- NYC emergency management, preparedness, readiness, and resilience goals. collection improvements and ACWA- NYC The bill would, upon appropriation by the Legislature, require the alternative renewable energy CSDA-Watch Controller to transfer$500,000,000 to the fund. The bill would require the at the Fountain Valley, Plant Office of Emergency Services to establish the Local Emergency No. 1 and Huntington Beach, Preparedness and Hazard Mitigation Fund Committee under the Plant No. 2. Standardized Emergency Management System Advisory Board. AB 292 Quirk [D] Recycled water: raw water and groundwater augmentation Current Two Year Bill Watch Legislative and Regulatory ACCOC - NYC law requires the State Water Resources Control Board, on or before Policies: Water Quality and LOCC -Watch December 31, 2023, to adopt uniform water recycling criteria for direct Supply- Support measures CASA- NYC potable reuse through raw water augmentation, as specified. This bill that promote and provide for ACWA- NYC would eliminate the definition of"direct potable reuse" and instead would the use of reclaimed water CSDA-Support substitute the term "groundwater augmentation"for"indirect potable reuse for groundwater recharge" in these definitions. The bill would require, on or before December 31, 2023, the state board to adopt uniform water recycling criteria for raw water augmentation. OCSD State Bills of Interest AB 352 E. Garcia [D] Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Two Year Bill Watch Legislative and Regulatory Flood Protection Bond Act of 2020. Would enact the Wildfire Policies: Grant Funding - Prevention, Safe Drinking Water, Drought Preparation, and Flood Support legislation, bonds, Protection Bond Act of 2020, which, if approved by the voters, would programs and projects that authorize the issuance of bonds in the amount of$3,920,000,000 provide funding for: pursuant to the State General Obligation Bond Law to finance a wildlife infrastructure construction prevention, safe drinking water, drought preparation, and flood protection and rehabilitation, special program.The bill would provide for the submission of these provisions to studies and research or the voters at the November 3, 2020, statewide general election. projects relating to security, environmental education, water quality, wastewater processing, urban runoff, wastewater recycling, biosolids and organics management, water quality improvement, resource recovery, or alternative energy. AB 405 Rubio [D] Sales and use taxes: exemption: water treatment. Would exempt Two Year Bill Watch Guiding Principles: Seek ACCOC - NYC from Sales and Use Tax the gross receipts from the sale in this state of, funds for OCSD projects LOCC -Watch and the storage, use, or other consumption in this state of, chemicals through grants, CASA- Support used to treat water, recycled water, or wastewater regardless of whether appropriations, or other ACWA- NYC those chemicals or other agents become a component part thereof and means;❑ CSDA-Support regardless of whether the treatment takes place before or after the delivery to consumers. AB 510 Cooley[D] Local government records: destruction of records. Current law Two Year Bill Support Legislative and Regulatory ACCOC - NYC authorizes the head of a department of a county or city, or the head of a Policies: Security- Support LOCC -Watch special district to destroy recordings of telephone and radio legislation that would create CASA- NYC communications maintained by that county, city, or special district after efficiencies around the ACWA- NYC 100 days if that person receives approval from the legislative body and retention policy of CSDA-Sponsor the written consent of the agency attorney. This bill would exempt the surveillance video for head of a department of a county or city, or the head of a special district innocuous recordings. from these recording retention requirements if the county, city, or special district adopts a records retention policy governing recordings of routine video monitoring and recordings of telephone and radio communications. OCSD State Bills of Interest IM"19*3W.0"11191009 V 1811SUP '02� . 0 so 01 � AB 587 Friedman [D] Accessory dwelling units: sale or separate conveyance Current Signed into law Watch Legislative and Regulatory ACCOC - NYC property tax law establishes a welfare exemption under which property is Policies: Special Districts - LOCC -Watch exempt from taxation if the property is owned and operated by a Oppose further state CASA-Work w/ nonprofit corporation that is organized and operated for the purpose of regulations that adversely author building and rehabilitating single-family or multifamily residences for sale, impact special district ACWA- NYC as provided, at cost to low-income families. This bill would authorize a financing, operations, and CSDA-Watch local agency to allow, by ordinance, an accessory dwelling unit that was administration. created pursuant to the process described above to be sold or conveyed separately from the primary residence to a qualified buyer if certain conditions are met. AB 756 Garcia [D] Public water systems: perfluoroalkyl substances and Signed into law Watch Legislative and Regulatory ACCOC - NYC polyfluoroalkyl substances Would authorize the State Water Policies: Source Control - LOCC -Watch Resources Control Board to order a public water system to monitor for Support legislation and CASA-Watch perfluoroalkyl substances and polyfluoroalkyl substances. The bill would funding mechanisms that ACWA-Watch require a community water system or a nontransient noncommunity reduce the amount of trash, CSDA-Watch water system, upon a detection of these substances, to report that waste, chemicals, and detection, as specified. The bill would require a community water system harmful organic material that or a nontransient noncommunity water system where a detected level of enter the sewer system. these substances exceeds the response level to take a water source where the detected levels exceed the response level out of use or provide a prescribed public notification. AB 841 Ting [D] Drinking water: contaminants: perfluoroalkyl and polyfluoroalkyl Two Year Bill Watch Legislative and Regulatory ACCOC - NYC substances. Would require the Office of Environmental Health Hazard Policies: Source Control - LOCC -Watch Assessment to adopt and complete a work plan within prescribed Support legislation and CASA-Watch timeframes to assess which substances in the class of perfluoroalkyl and funding mechanisms that ACWA-Watch polyfluoroalkyl substances should be identified as a potential risk to reduce the amount of trash, CSDA-Watch human health, as provided. The bill would require the office, as part of waste, chemicals, and those assessments, to determine which of the substances are harmful organic material that appropriate candidates for notification levels to be adopted by the state enter the sewer system. board. The bill would require the Office of Environmental Health Hazard Assessment, by January 1, 2022, to provide to the Legislature an update on the assessment. AB 992 Mullin [D] Open meetings: local agencies: social media Would provide that the Two Year Bill Watch Legislative and Regulatory ACCOC - NYC Ralph M. Brown Act does not apply to the posting, commenting, liking, Policies: Special Districts - LOCC -Watch interaction with, or participation in, internet-based social media platforms Oppose further state CASA-Approve that are ephemeral, live, or static, by a majority of the members of a regulations that adversely ACWA- NYC legislative body, provided that a majority of the members do not discuss impact special district CSDA-Support among themselves business of a specific nature that is within the subject financing, operations, and matter jurisdiction of the legislative body of the local agency. administration. OCSD State Bills of Interest AB 1080 Gonzalez [D] California Circular Economy and Plastic Pollution Reduction Act Two Year Bill Watch State Priorities: Support ACCOC- NYC Would establish the California Circular Economy and Plastic Pollution legislation or regulations that LOCC - Support Reduction Act, which would require the Department of Resources restrict the use of CASA- NYC Recycling and Recovery, in consultation with the State Water Resources microplastics in any product ACWA- NYC Control Board and the Ocean Protection Council, to adopt, on or before that is disposed of through CSDA- NYC January 1, 2023, regulations to achieve, by 2030, a 75% reduction by the sewer system.Li manufacturers and retailers of the waste generated from single-use packaging and products offered for sale or sold in the state through source reduction, recycling, or composting. AB 1180 Friedman [D] Water: recycled water The California Safe Drinking Water Act requires Signed into law Watch Legislative and Regulatory ACCOC - NYC the State Water Resources Control Board to administer provisions Policies: Recycled Water- LOCC -Watch relating to the regulation of drinking water to protect public health. support measures that CASA- Support Current law requires, on or before January 1, 2020, the state board to promote and provide for the ACWA- NYC adopt standards for backflow protection and cross-connection control use of reclaimed water. CSDA-Support through the adoption of a policy handbook, as specified. This bill would require that handbook to include provisions for the use of a swivel or changeover device to supply potable water to a dual-plumbed system during an interruption in recycled water service. AB 1184 Gloria [D] Public records: writing transmitted by electronic mail: retention Vetoed Watch Legislative and Regulatory ACCOC - NYC Would, unless a longer retention period is required by statute or Policies: Special Districts - LOCC - Oppose regulation, require a public agency for purposes of the California Public Oppose further state CASA-Watch Records Act to retain and preserve for at least 2 years every writing regulations that adversely ACWA- NYC containing information relating to the conduct of the public's business impact special district CSDA-Oppose prepared, owned, or used by any public agency that is transmitted by financing, operations, and electronic mail. administration. AB 1588 Gloria [D] Drinking water and wastewater operator certification programs Signed into law Watch Legislative and Regulatory ACCOC - NYC Current law requires a person who operates a nonexempt wastewater Policies: Special Districts - LOCC -Watch treatment plant to possess a valid, unexpired wastewater certificate or Oppose further state CASA- Support water treatment operator certificate of the appropriate grade. This bill, regulations that adversely ACWA- NYC when applying for certification by the board as a water treatment impact special district CSDA-Support operator, distribution system operator, or wastewater operator, would financing, operations, and require operators of complex industrial facilities, including members of administration. the military and military service veterans, to receive appropriate equivalent experience credit and education credit for work and tasks performed that are directly related to the operation of water or wastewater facilities, as specified. OCSD State Bills of Interest . . AB 1672 Bloom [D] Solid waste: flushable products The California Integrated Waste Two Year Bill Support Legislative and Regulatory ACCOC - NYC Management Act of 1989, administered by the Department of Resources Policies: Source Control - LOCC -Watch Recycling and Recovery, generally regulates the disposal, management, Support legislation that CASA- Sponsor and recycling of solid waste. This bill would, among other things, on or regulates the disposal of ACWA- Support after January 1, 2021, prohibit a covered entity, as defined, from labeling flushable wipes. CSDA-Support a covered product as safe to flush, safe for sewer systems, or safe for septic systems, unless the product is a flushable wipe that meets certain performance standards. The bill would require nonflushable products to be labeled clearly and conspicuously to communicate that they should not be flushed, as specified. ACA 1 Aguiar-Curry[D] Local government financing: affordable housing and public Currently on the Watch Guiding Principles: Seek ACCOC - NYC infrastructure: voter approval. The California Constitution prohibits the Assembly Floor funds for OCSD projects LOCC - Support ad valorem tax rate on real property from exceeding 1% of the full cash through grants, CASA- Support value of the property, subject to certain exceptions. This measure would appropriations, or other ACWA- NYC create an additional exception to the 1% limit that would authorize a city, means; CSDA-Support county, city and county, or special district to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing, or the acquisition or lease of real property for those purposes, if the proposition proposing that tax is approved by 55% of the voters of the city, county, or city and county, as applicable, and the proposition includes specified accountability requirements. SB 1 Atkins [D] California Environmental, Public Health, and Workers Defense Act Vetoed Watch Legislative and Regulatory ACCOC - NYC of 2019. This bill seeks to freeze federal Clean Air Act, Clean Water Act, Policies: Public Health: LOCC -Watch Safe Drinking Water Act, Endangered Species Act, Fair Labor Standards Protection of public health is CASA- NYC Act, Occupational Safety and Health Act and Coal Mine Health and OCSD's core mission. OCSD ACWA- Oppose Safety Act requirements to those in place as of January 19, 2017. SB 1 will work cooperatively with CSDA- NYC refers to federal requirements existing as of this date, as "baseline county and state health federal standards." SB 1 is intended to "ensure continued protections for officers to assure local health the environment, natural resources, and public health and safety" in protection. California, even if the noted federal laws are "undermined, amended or repealed" by making the baseline environmental standards the new floor for environmental and worker protections in California OCSD State Bills of Interest SB5 Beall [D] Local-State Sustainable Investment Incentive Program Would Vetoed MorWartchState Priorities: Continue to ACCOC - NYC establish in state government the Affordable Housing and Community monitor the state budget LOCC - Support Development Investment Program, which would be administered by the process and actively protect CASA-Watch Affordable Housing and Community Development Investment the allocation of local ACWA- NYC Committee. The bill would authorize a city, county, city and county,joint property taxes to CSDA-Watch powers agency, enhanced infrastructure financing district, affordable special districts. housing authority, community revitalization and investment authority, transit village development district, or a combination of those entities, to apply to the Affordable Housing and Community Development Investment Committee to participate in the program and would authorize the committee to approve or deny plans for projects meeting specific criteria. SB 13 Weickowski [D] Accessory dwelling units Would authorize the creation of accessory Signed into law Watch Legislative and Regulatory ACCOC - NYC dwelling units in areas zoned to allow single-family or multifamily Policies: Special Districts - LOCC - Oppose dwelling use. The bill would also revise the requirements for an Oppose further state unless amended accessory dwelling unit by providing that the accessory dwelling unit may regulations that adversely CASA-Work w/ be attached to, or located within, an attached garage, storage area, or impact special district author other structure, and that it does not exceed a specified amount of total financing, operations, and ACWA- NYC floor area. Bill was amended to remove the cap on capacity and administration. CSDA-Oppose connection fees that agencies can charge new ADUs. SB 33 Skinner Solid waste: reduction and recycling. The California Integrated Waste Two Year Bill Watch Legislative and Regulatory ACCOC - NYC Management Act of 1989, administered by the Department of Resources Policies: Biosolids and LOCC -Watch Recycling and Recovery, generally regulates the disposal, management, Biogas - Limit redundant CASA- NYC and recycling of solid waste.This bill would state the intent of the reporting requirements on ACWA- NYC Legislature to enact legislation that would address the collapse of foreign organics, recyclable material, CSDA-Watch recycling markets by reducing solid waste generation, encouraging and solid waste as mandated transition to compostable or recyclable materials, and fostering domestic by AB 901. recycling markets. OCSD State Bills of Interest OF V '02� . 0 so 01 SB 134 Hertzberg [D] Water conservation: water loss performance standards: Signed into law Watch Legislative and Regulatory ACCOC - NYC enforcement. Current law requires the State Water Resources Control Policies: Water Supply- LOCC -Watch Board, no earlier than January 1, 2019, and no later than July 1, 2020, to Support legislation and CASA- NYC adopt rules requiring urban retail water suppliers to meet performance regulation that necessitate ACWA- NYC standards for the volume of water losses. This bill would prohibit the the responsible use of water CSDA-Support board from issuing an information order, written notice, or conservation in residential, commercial, order to an urban retail water supplier that does not meet its urban water and industrial areas use objective if the board determines the urban retail water supplier is not meeting its urban water use objective solely because the volume of water loss exceeds the urban retail water supplier's standard for water loss and the board is taking enforcement action against the urban retail water supplier for not meeting the performance standards for the volume of water losses. SB 200 Safe and Affordable Drinking Water Fund. Would establish the Safe Signed into law Watch State Tactics: Support tax ACCOC - NYC and Affordable Drinking Water Fund in the State Treasury to help water reform that LOCC -Watch systems provide an adequate and affordable supply of safe drinking protects public agencies CASA- NYC water in both the near and the long term. The bill would authorize the ACWA- NYC board to provide for the deposit into the fund of federal contributions, CSDA-Watch voluntary contributions, gifts, grants, and bequests and would provide that moneys in the fund are available, upon appropriation by the Legislature, to the board to fund grants, loans, contracts, or services to assist eligible recipients. SB 210 Leyva [D] Heavy-Duty Vehicle Inspection and Maintenance Program. Current Signed into law Recommen Legislative and Regulatory ACCOC - NYC law requires the State Air Resources Board, in consultation with the d Oppose Policies: Air Quality- LOCC -Watch Bureau of Automotive Repair and a specified review committee, to adopt Support measures that CASA-Watch regulations requiring owners or operators of heavy-duty diesel motor maintain and enhance local ACWA-Watch vehicles to perform regular inspections of their vehicles for excessive decision-making authority, CSDA-Watch emissions of smoke. Current law requires the state board, in consultation where appropriate, in the with the State Energy Resources Conservation and Development development and Commission, to adopt regulations requiring heavy-duty diesel motor implementation of air quality vehicles to use emission control equipment and alternative fuels. This bill attainment strategies would require the state board, in consultation with the bureau and other specified entities, to implement a pilot program that develops and demonstrates technologies that show potential for readily bringing heavy- duty vehicles into an inspection and maintenance program. OCSD State Bills of Interest SB 332 Hertzberg [D] Wastewater treatment: recycled water. Would declare, except in Two Year Bill Watch State Legislation: Work with ACCOC - NYC compliance with the bill's provisions, that the discharge of treated legislators who introduced LOCC - Oppose wastewater from ocean outfalls is a waste and unreasonable use of legislation such as SB 163 CASA- Oppose water. The bill would require each wastewater treatment facility that (Hertzberg, 2015) in order to ACWA- NYC discharges through an ocean outfall and affiliated water suppliers to ensure that no unrealistic CSDA-Oppose reduce the facility's annual flow as compared to the average annual regulations are placed on wastewater discharge baseline volume, as prescribed, by at least 50% wastewater treatment on or before January 1, 2030, and by at least 95% on or before January facilities, including OCSD 1, 2040. The bill would subject the owner or operator of a wastewater treatment facility, as well as the affiliated water suppliers, to a civil penalty of$2,000 per acre-foot of water above the required reduction in overall volume discharge for the failure to meet these deadlines. SB 457 Hueso [D] Biomethane: gas corporations Under existing law, the Public Utilities Signed into law Watch Legislative and Regulatory ACCOC - NYC Commission has regulatory authority over public utilities, including gas Polciies: Biosolids and LOCC -Watch corporations. Existing law authorizes the commission to fix the rates and Biogas -Support CASA- Refer to charges for every public utility and requires that those rates and charges streamlined legislation, Committee be just and reasonable. Existing law requires the commission to adopt regulations and policies that ACWA- NYC policies and programs that promote the in-state production and encourage the procurement CSDA- NYC distribution of biomethane, as defined, and that facilitate the of biogas, biosolids, and development of a variety of sources of in-state biomethane. This bill compost. would require the Public Utilites Commission to extend the program until December 31, 2026. This bill contains other related provisions and other existing laws. SB 667 Hueso [D] Greenhouse gases: recycling infrastructure and facilities. Would Two Year Bill Watch Legislative and Regulatory ACCOC - NYC require the Department of Resources Recycling and Recovery to Polciies: Biosolids and LOCC - Support develop, on or before January 1, 2021, and would authorize the Biogas -Support the CASA- Support department to amend, a 5-year investment strategy to drive innovation promotion and funding of ACWA- NYC and support technological development and infrastructure, in order to local pilot programs, studies, CSDA- NYC meet specified organic waste reduction and recycling targets, as and research for the provided. The bill would require, on or before June 1, 2021, the beneficial use of biosolids. department, in coordination with the Treasurer, to develop financial incentive mechanisms, including, but not limited to, loans and incentive payments, to fund organic waste diversion and recycling infrastructure. OCSD State Bills of Interest � - SB 732 Allen [D] Transactions and use tax. Current law establishes the South Coast Air Two Year Bill Watch Legislative and Regulatory ACCOC - NYC Quality Management District vested with the authority to regulate air Polciies: Air Quality- LOCC -Watch emissions from stationary sources located in the South Coast Air Basin Support air quality CASA- NYC and establishes a district board to govern the district. This bill would legislations, regulations, ACWA- NYC authorize the south coast district board to impose a transactions and use rules, and policies that CSDA- No tax within the boundaries of the south coast district, as specified, with the emphasize the use of position moneys generated from the transactions and use tax to be used to advanced technologies and supplement existing revenues being used for south coast district promote greater flexibility and purposes, as specified. financial incentives to reduce air emission. Legend: ACC-OC -Association of California Cities, Orange County LOCC - League of California Cities NYC- Not Yet Considered CASA- California Association of Sanitation Agencies ACWA-Association of California Water Agencies CSDA- California Special Districts Association Updated November 2019 American Bioenergy Rip"Ju S oAnaergia ��CARIES Association of COUnCIl Breaking Barriers toSustainability of CLEAN ENERGY` California RN CASA�twmp ONlkkli2 T COAL1T10N California Refuse Rec in Council company NORTHERN DISTRICT P4 Caiifomia , Council -N� Refuse R. E ecru a _ _ _ Delta Southern District Diablo EBMUD OJ�tV SAN—,o 71- O M O WS SANITATION DISTRICTS OF LOS ANGELES COUNTY MOMENTUM NOWrFCTANs THE EM�`POa SCAP O BRINGING WATER San Joaquin Renewables SOUTHERN CALIFORNIA ALLIANCE OF LILL CIRCLE T S BTO(� /�S ® PUBLICLY OWNED TREATMENT WORKS `J�J 1 �Jf", NATURAL GAS FROM BIOMASS ACleaner Path wish RenewaCle Natural Gas January 21, 2020 The Honorable Ben Allen, Chair Senate Environmental Quality Committee California State Legislature Sacramento, CA 95814 Re: Need to Include Diverted Organic Waste Fundinq in Bond Legislation Dear Senator Allen: We are writing to urge you to include significant funding for organic waste diversion and recycling in your pending climate resilience bond legislation. Organic waste diversion is a critical requirement of the state's climate policies and one of the most cost-effective ways to reduce climate-forcing/global warming. Organic waste that is not recycled emits methane, which has far more immediate and powerful warming impacts than carbon dioxide (methane emissions are 74 times more damaging than carbon dioxide). As a result, reducing methane emissions from organic waste helps the climate immediately. Beyond these emissions impacts, converting local organic waste into local energy supplies will also increase Community Resilience and energy security. Unfortunately, the Governor's proposed budget and climate bond only include $15 million for organic waste diversion projects. We urge the Legislature, therefore, to include $500 million for diverted organic waste projects in bond legislation this year. California's climate policies require that we do a better job of recycling our organic waste, but don't provide sufficient funding to support implementation. Senate Bill 1383 (Lara, 2016) requires that, by 2025, California divert 75 percent of organic landfill waste — 15 million tons per year - and puts that waste to beneficial use. The highest and best use of most organic waste is to convert it to energy and use the byproducts — compost, biosolids, or biochar— to produce fertilizer and other products that return carbon and other nutrients to the soil (which also contributes to soil health and sequesters carbon). According to the Legislative Analyst's Office, organic waste diversion is the single most cost-effective investment the state can make to reduce carbon emissions, less than one-tenth the average cost of carbon reductions funded by the state's Cap and Trade program.' Converting organic waste to energy also builds Community Resilience because every community generates organic waste that can be used to produce local low carbon (or even carbon-negative) energy supplies. Diverted organic waste can be used to produce biogas for electricity generation, backup generators, transportation fuels, energy storage, grid reliability, and renewable hydrogen for fuel cells. Bioenergy can also provide dispatchable power needed when solar or wind power are not available. Bioenergy also increases the reliability of microgrids because it can be stored, provide power around the clock, and provide a source of renewable hydrogen for fuel cells. To meet the requirements of SB 1383, CalRecycle estimates that California will need to build 100 or more new facilities that can convert organic waste into energy and compost or biochar. Additionally, there are existing facilities such as anaerobic digesters at wastewater treatment plants, that can be modified or expanded to accommodate the acceptance and processing of organic waste which provide the same benefits. Meeting California's 2025 deadline will require significant funding — estimated at $2-3 billion -- to jumpstart development of these facilities. With all of the public benefits that will result and the rapidly approaching deadline, organic waste diversion infrastructure should be included in the bond measure. 1 LAO Report on Cap&Trade revenues, presented to Assembly Budget Subcommittee No. 3 on April 20, 2016. For all these reasons, we urge you to include $500 million for diverted organic waste in bond legislation. This funding will provide the most cost-effective carbon reductions, reduce one of the most damaging climate pollutants, and build Community Resilience and energy security. Sincerely, Jessica Gauger Patrick Serfass California Association of Sanitation American Biogas Council Agencies (CASA) Gary Darling Julia A. Levin Aries Clean Energy Bioenergy Association of California Fred Tornatore Evan Edgar TSS Consultants California Compost Coalition Paul Relis Stephen Jepsen CR&R Environmental Services Southern California Alliance of Publicly Owned Treatment Works (SCAP) Norma McDonald Organic Waste Systems Laura J. Ferrante California Refuse Recycling Council — Robert C. Ferrante Northern District Los Angeles County Sanitation Districts Kathryn Lynch Vince De Lange California Refuse Recycling Council — Delta Diablo Southern District Jerod Smeenk Eileen M. White San Joaquin Renewables East Bay Municipal Utility District Paul Sicurezza Yaniv Scherson Brad Thompson Company Anaergia Mark Bragg Jim Herberg US Biogas Orange County Sanitation District Tom Moody Shawn Garvey City of Corona, Department of Water & Momentum Power OCSD's Grant and Loan Funding Tracker 2019-2020 Name of Grant/Loan Synopsis of Grant/Loan Amount of Grant/Loan Amount Applying Y/N Project/Pro ram Reason Match Deadline Category Rcvd Grant/ Applying for g g y Financing YIN STATE The Organics Grant Program is part of California Climate Investments,a statewide program that puts billions of cap- and-trade dollars to work reducing greenhouse gas emissions,strengthening the economy,and improving public health and the environment-particularly in disadvantaged and/or low-income communities. The Cap- Food-Waste Co-Digestion facility at Plant No.2 in Huntington and-Trade program also creates a financial incentive for $16,112,753($13,312,753 is available for fiscal We will review the possible funding Organics Grant Program industries to invest in clean technologies and develop Beach r accept d)to re-50 wet g g g' p year(FY)2018-19,and$3 million is available $3 million Yes opportunity to determine if it is a fit for TBD 11/21/2019 Energy/Recycling TBD tons per day source of pre- innovative ways to reduce pollution. California Climate for fiscal year(FY)2019-20) processed source separated the Sanitation District. Investments projects include affordable housing,renewable energy,public transportation,zero-emission vehicles, organics. environmental restoration,more sustainable agriculture, recycling,and much more. At least 35 percent of these investments are made in disadvantaged and low-income communities. The Proposition 1 IRWM Grant Program,administered by TPA and OCSD are monitoring the DW R,provides funding for projects that help meet the long grant program development from the term water needs of the state,including: Santa Ana Watershed Project Authority(SAW PA).The solicitation Integrated Regional Water Management NA Will return in 2021 (IRWM)Grant Program Assisting water infrastructure systems adapt to climate $3,000,000.00 per grant award NA TBD(Round 2) NA for bids was announced by SAW PA 50% . for Round 2 Water No change; and staff determined that an Providing incentives throughout each watershed to application for funding was not collaborate in managing the region's water resources and warranted due to a lack of eligible and setting regional priorities for water infrastructure competitive projects. FEDERAL The Title XVI Water Reclamation and Reuse Projects funding opportunity allows for sponsors of water reclamation and reuse projects that are congressionally The Sanitation District applied for authorized or are eligible under section 4009(c)of the Reclamation is making up to$20 million $20mm or 25%of The Water Infrastructure Improvements Final Expansion GWRS Headw Segregation project that Act(WIIN) WIIN Act to request cost-shared funding for planning, available for those projects authorized under $3 million Yes Headworks(P2-122) will helpp to to bring more water to the project costs 6/28/2019 Water/Infrastructure TBD design and/or construction of those Projects.Water the WIIN Act. GWRS. whichever is less. reclamation and reuse projects provide improved efficiency,flexibility during water shortages and diversifies the water supply. USEPA is authorized to provide grants assistance of public TBD.We will monitor for possible Stormwater and CSO Grant Program agencies to control stormwater flows and CSO's.Funding Funding cost-share is not identified in the law TBD funding opportunities TBD FY 2020-$28 million Yes Anticipate by July 2020 Water/Infrastructure TBD through state awards. Project Funding Opportunity: Energy production to reduce Through the WaterSmart program,USBR will costs of recycled water through nnovative technologies. The DOE's Office of Energy Efficiency is likely to continue issue solicitations for innovative approaches to We will review the possible funding The Department of Energy(DOE), .TBD We will monitor for possible Innovative water monitoring USBR and USEPA to be funded by Congress to support such efforts as managing water and water treatment through TBD funding opportunities technology that can produce opportunity to determine if it is a fit for N/A TBD Energy/Water/Infrastructure TBD biogas,biosolids and green energy. technology and processes for FY 2020-$60 efficient real time monitoring the Sanitation District. million and data analysis,Biogas Management and Use Improvements. Updated 1/20/2020 OCSD's Grant and Loan Funding Tracker 2019-2020 Name of Grant/Loan Synopsis of Grant/Loan Amount of Grant/Loan Amount Applying Y/N Project/Pro ram Reason Match Deadline Category Rcvd Grant/ Applying for g g y Financing YIN Other The primary focus of the Community Partnering Program(CPP)is sponsorship of water conservation and water-use efficiency programs and activities.Applications must be submitted 30 days prior to the start date of the event or program. Community Partnering Program Grant Metropolitan Water District Requests for a maximum$2,000 award will be $2,000 Yes For Plant No.1 Signage Applied Match ongoing Education Yes reviewed year-round and funds are awarded throughout the year.Funds are limited,however, and may be depleted prior to the ending of this fiscal year(June 30). The California Government Operations Agency (GovOps)will award$500,000 in grants as part of the statewide California Mass Timber Building Competition.Grants will be awarded to selected proponent teams presenting viable and Mass Timber Competition CalGovOps repeatable mass timber solutions for commercial $40,000 Yes Headquarters Building Applied No 03/18/19 Environment Yes and multi-family projects in California.The competition is being hosted by GovOps and administered by WoodWorks—Wood Products Council. Updated 1/20/2020 SANir cc Presented By : G THE Eric Sapirstein ENS Resources, Inc . February 10, 2020 • • Key Activeities ME RU V mor • Approved by House • Imposes Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Hazardous Substance Designation • Triggers Potential Superfund Liability on Biosolids and Treatment Equipment • Senate Opposes • . � � TANDAPPROPRIATIOD • Administration Budget Transmitted to Congress 2/10/2020 • Anticipate Status Quo Funding of Water Infrastructure Programs • Potential for Stopgap Funding Bill , ,- rERMSANDINFRA�7 "imm 16m� � 1 0 • House Clean Water State Revolving Fund (SRF) Reauthorization of $14 Billion • Includes 10-Year Permit Terms with New Terms forTimely Renewals • Senate Will Rely on Water Resources Development Act Rewrite to Address Clean Water SRF and Other Needs 0 House Long-Term Infrastructure Proposal Questions i� T WNSEND PUBLIC AFFAIRS EST T PA 1998 TH TPA Presentation to: WWW.TOWNSENDPA.COM Orange County Sanitation SACRAMENTO • WASHINGTON, DC NORTHERN CALIFORNIA • CENTRAL CALIFORNIA • SOUTHERN CALIFORNIA ' 2020 Agenda wk- Legislative Schedule & Looking Ahead Governor's January Budget Proposed 2020 Resources/Climate Bond Impact Fee Legislation Slide 2 Legislative Schedule & Looking Ahead Schedule— • The Legislature returned January 6, 2020 from Interim Recess • Second year of a two-year session • January 31 , 2020 deadline for all two-year bills to pass their house of origin • Accelerated legislative timeline in the second year • New bill introduction deadline is February 21 , 2020 SACR_ ENTO Al- oil 1411 � � � � � Governor 's January Budget Governor's Budget • Released Friday, January 10 • $222 billion in proposed expenditures (2 .2% increase) — $153 billion General Fund • $5.3 billion surplus expected POD • Dollar amounts will be updated when the May Revise is released • Next steps Governor's January Budget (cont) Top priorities in the Governor's January Budget include: Education • $84 billion in Proposition 98 funding • Increase of $3.8 billion • Emphasis on improved teacher recruitment and retention Housing/Homelessness • $6.8 billion aimed at increasing housing supply • $750 million one-time funding for services related to permanent housing • Revamped RHNA process by 2023 Natural Resou rces/Cl i mate Change Bond • Proposed $4.75 billion climate resiliency bond • Targeting November 2020 ballot • Will need to be negotiated with the Legislature's climate bond proposals M M . - Proposed 2020 Resou rces/Cl i mate Bond Proposed Funding Categories Climate Resilience Bond Community Extreme Heat Resilience $325 million S250 million (7%) 596) Sea Level Rise: $500 mill►on (10%) Wildfire S750 million (16%) Onnking Water, Flood. Drought $2,925 million (62%) Organics Infrastructure Fund • • SB 667 (Hueso) - Greenhouse gases: recycling infrastructure and facilities — Five year needs assessment — Develop financial incentive mechanisms to fund organic waste diversion and recycling infrastructure • Senator Hueso still committed to this legislation in 2020 • Focus of Senator Hueso's to include funding in the Resources/Climate Bond • CASA support i Impact Fee Legislation Impact Fee Legislation Update • Assembly Member Grayson (D-Concord) introduced AB 1924 on January 14, 2020 • Requires fees on housing development projects by a local agency be proportionate to square footage • CSDA solicitated input from their members • OCSD submitted feedback — currently assess fees based on number of bedrooms — Could lead to an inaccurate assessment of capacity • Additional amendments expected for AB 1924 . - O JNj S A N 1 rq TL n O o A T10" W N S E N D PUBL , AF , AIR _. -10 9oTF e��2 EST TPA 1998 cl/N THE ENPO Thank Cori Williams Eric O'Donnell Southern California Senior Director Senior Associate CWilliams@townsendpa.com EODonnell@townsendpa.com www.townsendQa.com www.townsendQa.com oJ�jV SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 STEERING COMMITTEE (714)5937433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-948 Agenda Date: 2/26/2020 Agenda Item No: 18. FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: SINGAPORE INTERNATIONAL WATER WEEK 2020 ATTENDANCE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve out-of-country travel to Singapore for Rob Thompson to participate in the Singapore International Water Week to present on water recycling, resource recovery, and resiliency, contingent on receipt of $2,000 in scholarship funding to offset travel costs. BACKGROUND The Singapore International Water Week (SIWW) is an opportunity for industry leaders across the world to come together to exchange ideas and discuss the future of water. SIWW is a global platform to share and co-create innovative solutions reinforcing a commitment to the global integration of sustainable water management strategies with urban planning processes. Addressing contemporary challenges, SIWW gathers global water leaders and practitioners from the public and private sectors to engage in discussion and debate, network with key industry players, showcase leading-edge technologies and best practices, and identify practical methodologies to address water issues. In line with global water industry trends and opportunities, SIWW 2020 will feature discussions on three themes: Climate Resilience Resource Efficiency SMART Utility The Water Environment Federation (WEF), National Association of Clean Water Agencies (NACWA), and Water Research have partnered with SIWW to host a United States delegation of high-level utility managers. Participants in the U.S. Delegation will have access to all SIWW events, plus events planned together to provide special site visits and more intimate exchange opportunities. A scholarship exists to fund international participation. By promoting international exchange, WEF, NACWA, and Water Research hope to breakdown international barriers, accelerate technology transfer, and create an understanding of innovative policy options to enable resource recovery. Scholarship recipients will be encouraged to write papers and make presentations about their Orange County Sanitation District Page 1 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-948 Agenda Date: 2/26/2020 Agenda Item No: 18. experience at SIWW and will be provided forums to disseminate this information through WEF, NACWA, and Water Research. RELEVANT STANDARDS • Build brand, trust, and support with policy makers and community leaders • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Ensure the public's money is wisely spent PROBLEM The Orange County Sanitation District (Sanitation District) has been offered the opportunity to participate in an international water forum to share our innovation and provide leadership to our industry, and to learn from other worldwide industry leaders to help expand technology options for the future. PROPOSED SOLUTION By attending and participating in the scholarship program, the Sanitation District will gain the opportunity to share our extensive experience in water recycling, wastewater treatment, resource recovery, and resiliency. It will also allow us the opportunity to learn about new technologies and practices in the industry. TIMING CONCERNS The conference is taking place in July, as such we would like to start the planning process for purchasing of airfare, lodging, etc. as soon as we receive word on if the Sanitation District has been selected as a scholarship recipient. RAMIFICATIONS OF NOT TAKING ACTION If we do not take action now, we run the risk of increased cost of both airfare and lodging. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Assistant General Manager Thompson's participation in the SIWW Conference as a scholarship recipient will provide the opportunity to share the Sanitation District's extensive experience in water recycling, wastewater treatment, resource recovery, and resiliency, and allow him to learn from the other utility leaders and new available technologies in the world of resource recovery. The weeklong program is from July 5-9, 2020. Orange County Sanitation District Page 2 of 3 Printed on 2/20/2020 powered by LegistarTM File #: 2020-948 Agenda Date: 2/26/2020 Agenda Item No: 18. CEQA N/A FINANCIAL CONSIDERATIONS The Sanitation District is committing to pay approximately $2,000 to cover half of the cost of attending the conference. A $2,000 scholarship application was submitted to NACWA to help supplement the cost. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Orange County Sanitation District Page 3 of 3 Printed on 2/20/2020 powered by LegistarTM oJ�1V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 BOARD OF DIRECTORS (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-931 Agenda Date: 2/26/2020 Agenda Item No: CS-1 FROM: James D. Herberg, General Manager SUBJECT: CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(1) RECOMMENDATION: Convene in Closed Session: OCSD v. Mission Clay Pipe et al., Orange County Superior Court Case No. 30-2017-00942372-CU- BC-CJC BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. RELEVANT STANDARDS • Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Memorandum from General Counsel Orange County Sanitation District Page 1 of 1 Printed on 2/20/2020 powered by LegistarTM RITA WOODRUFF, SPRADLIN&$MART 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 PRIVILEGED AND CONFIDENTIAL ATTORNEY-CLIENT COMMUNICATION NOT A PUBLIC RECORD MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: February 19, 2020 RE: Closed Session Items The Board of Directors desires to hold a closed session on February 26, 2020 for the purpose of conferring with its legal counsel regarding existing litigation to which the District is a party. The title of the case is Orange County Sanitation District v. Mission Clay Products, LLC. Orange County Superior Court Case No. 30-2017-00942372. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respect submitted, By. A� Bradley K. Hogin, G neral Counsel 1114544.1 oJ�V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 BOARD OF DIRECTORS (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-932 Agenda Date: 2/26/2020 Agenda Item No: CS-2 FROM: James D. Herberg, General Manager SUBJECT: CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(4) RECOMMENDATION: Convene in Closed Session: Number of Potential Cases: 1 Initiation of litigation regarding development fees and conditions at Project OCSD Headquarters Building: City of Fountain Valley BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. RELEVANT STANDARDS • Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Memorandum from General Counsel Orange County Sanitation District Page 1 of 1 Printed on 2/20/2020 powered by LegistarTM RITA WOODRUFF, SPRADLIN&SMART 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: February 19, 2020 RE: Closed Session Items The Board of Directors desires to hold a closed session on February 26, 2020 for the purpose of conferring with its legal counsel regarding potential litigation. Based on existing facts and circumstances, the Board is deciding whether to initiate litigation against another party. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(4). The facts and circumstances are as follows: a dispute has arisen between the City of Fountain Valley and the District regarding fees and conditions that the City seeks to impose on the District's construction of a new headquarters building. In the view of the District, these fees and conditions are unlawful. Respectfully submitted, By Brad ey R. Hogi , General Counsel 1114541.2 oJ�1V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 BOARD OF DIRECTORS (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-933 Agenda Date: 2/26/2020 Agenda Item No: CS-3 FROM: James D. Herberg, General Manager SUBJECT: CONFERENCE WITH REAL PROPERTY NEGOTIATORS - GOVERNMENT CODE SECTION 54956.8 RECOMMENDATION: Convene in Closed Session: Property: 18475 Bandilier Cir. Fountain Valley, CA - APN No.156-163-15 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Lorenzo Tyner; Assistant General Manager, Rob Thompson; and Director of Engineering, Kathy Millea. Negotiating parties: Sukut Real Properties II, LLC Under negotiation: Price and terms of payment BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. RELEVANT STANDARDS • Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Memorandum from General Counsel Orange County Sanitation District Page 1 of 1 Printed on 2/20/2020 powered by LegistarTM RITA WOODRUFF, SPRADLIN&SMART 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: February 19, 2020 RE: Closed Session Items The Board of Directors desires to hold a closed session on February 26, 2020 for the purpose of conferring with its negotiators regarding the purchase of real property. The property is 18475 Bandilier Cir. Fountain Valley, APN No. 156-163-15. The District's negotiators are Jim Herberg, Lorenzo Tyner, Rob Thompson and Kathy Millea. The adverse negotiators will be representatives of Sukut Real Properties, LLC. Said closed session will be held pursuant to authority of California Government Code Section 54956.8. Respect submitted, By Ao Bradley . Hogin, G neral Counsel 1411299.1 oJ�1V SAN17gTO9 Orange Count Sanitation District Administration Building 5� o, g � 10844 Ellis Avenue 2 9 Fountain Valley, CA 92708 BOARD OF DIRECTORS (714)593 7433 9oTFCTN0 THE ENVQ����2 Agenda Report File #: 2020-939 Agenda Date: 2/26/2020 Agenda Item No: CS-4 FROM: James D. Herberg, General Manager SUBJECT: CONFERENCE WITH REAL PROPERTY NEGOTIATORS - GOVERNMENT CODE SECTION 54956.8 RECOMMENDATION: Convene in Closed Session: Property: 7292 Slater Avenue Huntington Beach, CA - APN No. 156-163-15 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Lorenzo Tyner; and Assistant General Manager, Rob Thompson. Negotiating parties: Northington Huntington Beach Investors LLC Under negotiation: Price and terms of payment BACKGROUND During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. RELEVANT STANDARDS • Government Code Sections 54956.8, 54956.9, 54957, or 54957.6, as noted ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Memorandum from General Counsel Orange County Sanitation District Page 1 of 1 Printed on 2/20/2020 powered by LegistarTM RITA WOODRUFF, SPRADLIN&$MART 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: February 19, 2020 RE: Closed Session Items The Board of Directors desires to hold a closed session on February 26, 2020 for the purpose of conferring with its negotiators regarding the purchase of real property. The property is 7292 Slater Avenue Huntington Beach, CA, APN No. 156-163-15. The District's negotiators are Jim Herberg, Lorenzo Tyner and Rob Thompson. The adverse negotiators will be representatives of Northington Huntington Beach Investors, LLC. Said closed session will be held pursuant to authority of California Government Code Section 54956.8. Respect submitted, By Ao- Bradley . Hogin, G neral Counsel 1411299.1 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS Association of California Local Agency Formation Regional Water Quality ACWA Water Agencies LAFCO Commission RWQCB 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 CARB California Air Resources NEPA National Environmental SCADA Supervisory Control And Board Policy Act 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 CRWQCB California Regional Water OCCOG Orange County Council of SSMP Sewer System Quality Control Board Governments Management Plan CWA Clean Water Act OCHCA Orange County Health Care SSO Sanitary Sewer Overflow Agency CWEA California Water Environment OCSD Orange County Sanitation SWRCB State Water Resources Association District Control Board EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids EMT Executive Management Team OOBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load EPA US Environmental Protection OSHA Occupational Safety and TSS Total Suspended Solids Agency Health Administration Professional Waste Discharge FOG Fats, Oils, and Grease PCSA Consultant/Construction WDR Requirements Services Agreement gpd gallons per day PDSA Professional Design Services WEF Water Environment Agreement Federation GWRS Groundwater Replenishment POTW Publicly Owned Treatment WERF Water Environment& System Works Reuse Foundation ICS Incident Command System ppm parts 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 RFP Request For Proposal WRDA Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS—A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) — The amount of oxygen used when organic matter undergoes decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter in water. BIOGAS—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) —The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). GROUNDWATER REPLENISHMENT SYSTEM(GWRS)—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.