HomeMy WebLinkAbout11-10-2020 Administration Committee Meeting Complete Agenda Packet
ORANGE COUNTY SANITATION DISTRICT
SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19) AND ATTENDANCE AT PUBLIC MEETINGS
On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as
a result of the threat of COVID-19. On March 12, 2020 and March 18, 2020, Governor Newsom issued Executive Order N-25-20 and Executive Order N-29-20, which temporarily suspend portions of the Brown Act which addresses the conduct of public meetings.
The General Manager and the Chairman of the Board of Directors have determined that due to the size of the Orange County Sanitation District’s Board of Directors (25), and the health and safety of the members, the Board of Directors will be participating in meetings of the Board telephonically and via Internet accessibility.
PUBLIC PARTICIPATION Your participation is always welcome. The Administration Committee meeting will be available to the public online at:
https://ocsd.legistar.com/Calendar.aspx You may submit your comments and questions in writing for the Administration
Committee’s consideration in advance of the meeting by using the eComment feature
available via the webpage above or sending them to OCSDClerk@ocsd.com with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. Submit your written comments by 5:00 p.m. on Monday, November 9, 2020.
You may also submit comments and questions for the Committee’s consideration during the meeting by using the eComment feature that will be available via the webpage above for the duration of the meeting.
All public comments will be provided to the Administration Committee and may be read into the record or compiled as part of the record. Thank you.
November 4, 2020
NOTICE OF MEETING
ADMINISTRATION COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
Tuesday, November 10, 2020 – 5:00 P.M.
ACCESSIBILITY FOR THE GENERAL PUBLIC
Due to the spread of COVID-19, the Orange County Sanitation District
will be holding all upcoming Board and Committee meetings by
teleconferencing and Internet accessibility. This meeting will be
available to the public online at:
https://ocsd.legistar.com/Calendar.aspx
A regular meeting of the Administration Committee of the Orange County
Sanitation District will be held in the manner indicated herein on
Tuesday, November 10, 2020 at 5:00 p.m.
ADMINISTRATION COMMITTEE MEETING DATE
BOARD MEETING DATE
11/10/20 * 11/18/20 **
12/09/20 12/16/20 **
JANUARY DARK 01/27/21
02/10/21 02/24/21
03/10/21 03/24/21
04/14/21 04/28/21
05/12/21 05/26/21
06/09/21 06/23/21
07/14/21 07/28/21
AUGUST DARK 08/25/21
09/08/21 09/22/21
10/13/21 10/27/21
* Meeting will be held on the second Tuesday of the month
** Meeting will be held on the third Wednesday of the month
ROLL CALL ADMINISTRATION COMMITTEE Finance, Information Technology, Environmental Services
and Human Resources
Meeting Date: November 10, 2020 Time: 5:00 p.m. Adjourn:
COMMITTEE MEMBERS (13)
Chad Wanke, Chair
Richard Murphy, Vice-Chair Jim Ferryman
Peter Kim
Mark Murphy
Steve Nagel
Andrew Nguyen
Glenn Parker
Erik Peterson
Tim Shaw
Christina Shea
David Shawver (Board Chair) John Withers (Board Vice-Chair)
OTHERS
Brad Hogin, General Counsel
STAFF
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
ORANGE COUNTY SANITATION DISTRICT Effective 06/16/2020 BOARD OF DIRECTORS Complete Roster AGENCY/CITIES
ACTIVE DIRECTOR
ALTERNATE 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 Nelida Mendoza 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
Orange County Sanitation District
ADMINISTRATION COMMITTEE
Regular Meeting Agenda
Tuesday, November 10, 2020 - 5:00 PM
Board Room
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
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, ltyner@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, lwiborg@ocsd.com / (714) 593-7450
ADMINISTRATION COMMITTEE Regular Meeting Agenda Tuesday, November 10, 2020
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL AND DECLARATION OF QUORUM:
PUBLIC COMMENTS:
Your participation is always welcome. The Administration Committee meeting will be available to the public online
at: https://ocsd.legistar.com/Calendar.aspx.
You may submit your comments and questions in writing for the Administration Committee’s consideration in
advance of the meeting by using the eComment feature available via the webpage above or sending them to
OCSDClerk@ocsd.com with the subject line “PUBLIC COMMENT ITEM # (insert the item number relevant to your
comment)” or “PUBLIC COMMENT NON-AGENDA ITEM”. Submit your written comments by 5:00 p.m. on
Monday, November 9, 2020.
You may also submit comments and questions for the Committee’s consideration during the meeting by using the
eComment feature that will be available via the webpage above for the duration of the meeting. All public
comments will be provided to the Administration Committee and may be read into the record or compiled as part
of the record.
REPORTS:
The Committee 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.
CONSENT CALENDAR:
Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion,
without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in
the regular order of business.
1.2020-1275APPROVAL OF MINUTES
RECOMMENDATION:
Approve Minutes of the Regular Meeting of the Administration Committee held
September 9, 2020.
Originator:Kelly Lore
Agenda Report
09-09-2020 Administration Committee Minutes
Attachments:
2.2020-1056CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER
ENDED SEPTEMBER 30, 2020
RECOMMENDATION: Recommend to the Board of Directors to:
Page 1 of 4
ADMINISTRATION COMMITTEE Regular Meeting Agenda Tuesday, November 10, 2020
Receive and file the Orange County Sanitation District First Quarter Financial Report
for the period ended September 30, 2020.
Originator:Lorenzo Tyner
Agenda Report
Consolidated Financial Report for the First Quarter Ended
September 30, 2020
Attachments:
3.2020-1315GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO
THE PRE-APPROVED OEM SOLE SOURCE LIST
RECOMMENDATION: Recommend to the Board of Directors to:
A. Receive and file District purchases made under the General Manager’s authority
for the period of July 1, 2020 to September 30, 2020; and
B. Approve the following additions to the pre-approved OEM Sole Source List for
the period of July 1, 2020 to September 30, 2020:
·CHEVROLET - Chevrolet Truck Engine Replacements
·SANS - Vouchers for Cyber Security Trainings
·TOTAL RESOURCE MANAGEMENT - IBM Maximo Level 3 Support
·WATSON MARLOW - Pumps
Originator:Lorenzo Tyner
Agenda ReportAttachments:
4.2020-1266IBM MAXIMO EMERGENCY AND LEVEL 3 SUPPORT
RECOMMENDATION:
A. Approve a Sole Source Professional Services Agreement to Total Resource
Management, Inc to provide Emergency and Level 3 support for IBM Maximo
software, for the time period of January 1, 2021 through December 31, 2021, for
a total amount not to exceed $160,000; and
B. Authorize an option for four (4) one-year renewals at $160,000 per year.
Originator:Lorenzo Tyner
Agenda Report
Professional Services Consultant Agreement
Attachments:
Page 2 of 4
ADMINISTRATION COMMITTEE Regular Meeting Agenda Tuesday, November 10, 2020
5.2020-1311CORITY PLATFORM IMPLEMENTATION - MY CORITY, INDUSTRIAL
HYGIENE, AND ERGONOMICS
RECOMMENDATION:
A. Authorize a Purchase Order to Cority Software Inc. for the implementation and
annual software maintenance of myCority, Industrial Hygiene, and Ergonomics,
using the approved U.S. General Services Agreement (GSA) IT Schedule 70
(M.O. 5/25/16, Item #13), for a total amount not to exceed $134,834, in
accordance with Ordinance No. OCSD-52, Section 2.03(B) Cooperative
Purchases; and
B. Approve a contingency in the amount of $13,483 (10%).
Originator:Lorenzo Tyner
Agenda ReportAttachments:
NON-CONSENT:
6.2020-1309PFAS INVESTIGATIVE ORDER
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Professional Services Agreement to CDM Smith, Inc. (CDM Smith) to
provide PFAS Sampling and Analysis Services, Specification No.
CS-2020-1178BD, for a total amount not to exceed $369,006; and
B. Approve a contingency in the amount of $55,351 (15%).
Originator:Lan Wiborg
Agenda Report
CS-2020-1178BD Draft Professional Services Agreement
Attachments:
7.2020-1307ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE
ANNUAL FINANCIAL REPORT (CAFR) FOR THE YEAR END JUNE 30,
2020
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District’s Comprehensive Annual
Financial Report for the year ended June 30, 2020, prepared by staff and audited by
Macias Gini & O’Connell LLP (MGO), Certified Public Accountants, along with the
following reports prepared by MGO:
1. Report to the Board of Directors; and
Page 3 of 4
ADMINISTRATION COMMITTEE Regular Meeting Agenda Tuesday, November 10, 2020
2. Independent Accountants’ Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets.
Originator:Lorenzo Tyner
Agenda Report
Report to the Board of Directors
Independent Accountant's Report on Applying Agreed-Upon
Procedures Related to Appropriations Limit Calculation
Comprehensive Annual Financial Report for the Year Ended
June 30, 2020
Staff Presentation
Auditor's Presentation
Attachments:
INFORMATION ITEMS:
8.2020-1316BIOSOLIDS THERMAL CONVERSION RFI UPDATE
RECOMMENDATION:
Information Item.
Originator:Lan Wiborg
Agenda ReportAttachments:
DEPARTMENT HEAD REPORTS:
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING:
At this time Directors may request staff to place an item on a future agenda.
ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, December 9, 2020
at 5:00 p.m.
Page 4 of 4
Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2020-1275 Agenda Date:11/10/2020 Agenda Item No:1.
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 Administration Committee held September 9, 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)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda
package:
·Minutes of the Administration Committee meeting held September 9, 2020
Orange County Sanitation District Printed on 11/2/2020Page 1 of 1
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Orange County Sanitation District
Minutes for the
ADMINISTRATION COMMITTEE
Wednesday, September 9, 2020
5:00 PM
Board Room
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
CALL TO ORDER
A regular meeting of the Administration Committee was called to order by Committee Chair
Chad Wanke on Wednesday, September 9, 2020 at 5:02 p.m. in the Administration Building
of the Orange County Sanitation District. Chair Wanke stated that the meeting was being
held telephonically and via audio/video teleconferencing in accordance with the Governor's
Executive Order No. N-29-20, due to the Coronavirus Pandemic (COVID-19). Chair Wanke
led the Flag Salute.
ROLL CALL AND DECLARATION OF QUORUM:
The Clerk of the Board took roll and a quorum was declared present, as follows:
PRESENT:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark
Murphy, Steve Nagel, Andrew Nguyen, Glenn Parker, Erik Peterson,
Tim Shaw, Christina Shea, David Shawver and John Withers
ABSENT:None
STAFF PRESENT: Jim Herberg, General Manager; Kelly Lore, Clerk of the Board; and Brian
Engeln were present in the Board Room. Lorenzo Tyner, Assistant General Manager; Celia
Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Lan Wiborg,
Director of Environmental Services; Jennifer Cabral; Tina Knapp; Joshua Martinez; Don
Stokes; and Thomas Vu were in attendance telephonically.
OTHERS PRESENT: Brad Hogin, General Counsel was present in the Board Room.
PUBLIC COMMENTS:
None.
REPORTS:
Chair Wanke announced that an OCSD virtual tour will be held September 12 at 11 a.m. and
a joint tour of OCSD and OCWD will be held on September 16 at 10 a.m.
General Manager Herberg stated that a letter was received from Yorba Linda Water District in
response to a Draft MSR for OCSD during a Public hearing with OC LAFCO on September 9,
2020 was sent to the Board of Directors and will be placed for discussion at the Steering
Committee and Board of Directors this month.
Page 1 of 6
ADMINISTRATION
COMMITTEE
Minutes September 9, 2020
CONSENT CALENDAR:
1.APPROVAL OF MINUTES 2020-1213
Originator: Kelly Lore
MOVED, SECONDED, AND DULY CARRIED TO:
Approve Minutes of the Regular Meeting of the Administration Committee held July 8,
2020.
AYES:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark
Murphy, Steve Nagel, Andrew Nguyen, Glenn Parker, Erik Peterson,
Tim Shaw, Christina Shea, David Shawver and John Withers
NOES:None
ABSENT:None
ABSTENTIONS:None
2.RECORDS MANAGEMENT PROGRAM UPDATE 2020-1076
Originator: Kelly Lore
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Adopt Resolution No. OCSD 20-XX entitled: “A Resolution of the Board of Directors of
the Orange County Sanitation District Adopting the Records Management Program
Procedures and Records Retention Schedule, Authorizing Destruction of Obsolete
Records, and Repealing Resolution No. OCSD 18-22”.
AYES:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark
Murphy, Steve Nagel, Andrew Nguyen, Glenn Parker, Erik Peterson,
Tim Shaw, Christina Shea, David Shawver and John Withers
NOES:None
ABSENT:None
ABSTENTIONS:None
3.HYPER CONVERGED INFRASTRUCTURE IMPLEMENTATION -
PHASE 1
2020-1160
Originator: Lorenzo Tyner
MOVED, SECONDED, AND DULY CARRIED TO:
Page 2 of 6
ADMINISTRATION
COMMITTEE
Minutes September 9, 2020
A. Award a Professional Services Agreement to ePlus Technology inc. for the
procurement of software, hardware, and services to implement and configure
the Hyper Converged Infrastructure, Specification No. CS-2020-1141BD, for a
total amount not to exceed $177,950; and
B. Approve a contingency in the amount of $17,795 (10%).
AYES:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark
Murphy, Steve Nagel, Andrew Nguyen, Glenn Parker, Erik Peterson,
Tim Shaw, Christina Shea, David Shawver and John Withers
NOES:None
ABSENT:None
ABSTENTIONS:None
4.INCIDENT RESPONSE PROGRAM 2020-1207
Originator: Lorenzo Tyner
MOVED, SECONDED, AND DULY CARRIED TO:
A. Award a Professional Services Agreement to Tevora Business Solutions to
provide Cyber Incident Response Consulting Services, Specification No.
CS-2020-1160, for a total amount not to exceed $112,700; and
B. Approve a contingency in the amount of $16,905 (15%).
AYES:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark
Murphy, Steve Nagel, Andrew Nguyen, Glenn Parker, Erik Peterson,
Tim Shaw, Christina Shea, David Shawver and John Withers
NOES:None
ABSENT:None
ABSTENTIONS:None
5.GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS
TO THE PRE-APPROVED OEM SOLE SOURCE LIST
2020-1204
Originator: Lorenzo Tyner
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Page 3 of 6
ADMINISTRATION
COMMITTEE
Minutes September 9, 2020
A. Receive and file Orange County Sanitation District purchases made under the
General Manager’s authority for the period of April 1, 2020 to June 30, 2020;
and
B. Approve the following additions to the pre-approved OEM Sole Source List for
the period of April 1, 2020 to June 30, 2020:
·ALHAMBRA FOUNDRY - Manhole Frames and Covers
·GARDNER DENVER / HOFFMAN - Blower Equipment, Parts and Service
·GEA WESTFALIA - Centrifuge Parts and Service (Replaces OEM Manufacturer
WESTFALIA - Name Change)
·NUTTAL GEAR - Gear Drive Assembly and Related Parts/Equipment
·SCRIPPS INSTITUTION OF OCEANOGRAPHY (SIO) - Ocean Monitoring
Program
·SPX Flow / LIGHTNIN - Gear Box Repair Parts, Equipment and Service
·VAC-CON - Sewer Combo Cleaning Truck Rental
AYES:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark
Murphy, Steve Nagel, Andrew Nguyen, Glenn Parker, Erik Peterson,
Tim Shaw, Christina Shea, David Shawver and John Withers
NOES:None
ABSENT:None
ABSTENTIONS:None
6.REIMBURSEMENTS TO BOARD MEMBERS AND STAFF 2020-1228
Originator: Lorenzo Tyner
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Receive and file report of reimbursements to Board Members and Staff per
Government Code Section 53065.5 for the period July 1, 2019 through June 30, 2020.
AYES:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark
Murphy, Steve Nagel, Andrew Nguyen, Glenn Parker, Erik Peterson,
Tim Shaw, Christina Shea, David Shawver and John Withers
NOES:None
ABSENT:None
ABSTENTIONS:None
7.TREASURER’S REPORT FOR THE FOURTH QUARTER ENDED
JUNE 30, 2020
2020-975
Originator: Lorenzo Tyner
Page 4 of 6
ADMINISTRATION
COMMITTEE
Minutes September 9, 2020
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Receive and file the Orange County Sanitation District Fourth Quarter Treasurer’s
Report for the period ended June 30, 2020.
AYES:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark
Murphy, Steve Nagel, Andrew Nguyen, Glenn Parker, Erik Peterson,
Tim Shaw, Christina Shea, David Shawver and John Withers
NOES:None
ABSENT:None
ABSTENTIONS:None
NON-CONSENT:
8.PENSION COST STRATEGIES 2020-1136
Originator: Lorenzo Tyner
Assistant General Manager Lorenzo Tyner provided an informative PowerPoint
presentation regarding OCSD Pension Funding including current investment returns
and projected annual OCSD contribution to OCERS. Mr. Tyner provided various
pension funding options with an initial $20M investment. Mr. Tyner responded to
questions from the Committee regarding risks, fee structures, and limitations of the 115
trust. Committee members thanked staff, Mr. Tyner, and Chair Wanke for providing
the item for consideration.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Direct staff to advertise a Request for Proposals (RFP) to select a multiple-employer
Internal Revenue Service Code Section 115 Trust Pension Account.
AYES:Chad Wanke, Richard Murphy, James Ferryman, Peter Kim, Mark
Murphy, Steve Nagel, Andrew Nguyen, Glenn Parker, Erik Peterson,
Tim Shaw, Christina Shea, David Shawver and John Withers
NOES:None
ABSENT:None
ABSTENTIONS:None
INFORMATION ITEMS:
9.COVID-19 SEWAGE SURVEILLANCE PROJECT UPDATE 2020-1229
Originator: Lan Wiborg
Director of Environmental Services Lan Wiborg provided an informative PowerPoint
presentation regarding Wastewater Surveillance for COVID-19. The Committee
Page 5 of 6
ADMINISTRATION
COMMITTEE
Minutes September 9, 2020
requested that Ms. Wiborg provide notes to use in reporting this information to their
agencies.
WITHOUT OBJECTION ITEM RECEIVED AS AN:
Information Item.
DEPARTMENT HEAD REPORTS:
None.
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
None.
BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING:
None.
ADJOURNMENT:
Chair Wanke declared the meeting adjourned at 6:00 p.m. to the Regular meeting to be held
on Wednesday, October 14, 2020 at 5:00 p.m.
Submitted by:
__________________
Kelly A. Lore, MMC
Clerk of the Board
Page 6 of 6
Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2020-1056 Agenda Date:11/10/2020 Agenda Item No:2.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER ENDED SEPTEMBER 30,
2020
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District First Quarter Financial Report for the period
ended September 30, 2020.
BACKGROUND
Included in this consolidated report are the following quarterly financial reports for the period ended
September 30, 2020:
·First Quarter Budget Review
The Budget Review Summary provides the Directors,staff,and general public with a
comprehensive overview of the financial results of the Orange County Sanitation District
(Sanitation District) through the first quarter ended September 30, 2020.
·Quarterly Treasurer’s Report
This section reports on financial portfolio performance with respect to the Sanitation District’s
funds.Both Long-Term and Liquid Operating Monies Portfolios are summarized.A
performance summary table can be found on page 2 of this 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.
·Certificates of Participation Quarterly 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 Printed on 11/3/2020Page 1 of 3
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File #:2020-1056 Agenda Date:11/10/2020 Agenda Item No:2.
ADDITIONAL INFORMATION
The quarterly treasurer’s report contained within the Consolidated Financial Reports for the First
Quarter Ended September 30,2020 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 September 30, 2020
Liquid Operating Monies (%)Long-Term Operating Monies (%)
Total Rate
of Return
Benchmark Total Rate
of Return
Benchmark
3 Months 0.04 0.04 0.29 0.24
6 Months 0.11 0.06 1.62 1.27
9 Months 0.83 0.64 4.16 4.27
12 Months 1.34 1.10 4.67 4.73
Annualized Since Inception 30 Nov 2014 1.16 1.03 2.32 2.29
·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 $128.5 M $598.8 M
Market Value $128.7 M $625.2 M
·Modified duration of the portfolio compared to the Benchmark:
Liquid Operating Long-Term
District Policy < 0.50 < 5.00
Benchmark 0.16 2.59
Portfolio 0.32 2.52
·Dollar change in value of the portfolio for a one percent (1%) change in interest rates:
Liquid Operating - $403,466
Long- Term - $15,827,602
·None of the portfolios are currently invested in reverse repurchase agreements.
Orange County Sanitation District Printed on 11/3/2020Page 2 of 3
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File #:2020-1056 Agenda Date:11/10/2020 Agenda Item No:2.
·The percent of the Liquid Operating Monies portfolio maturing within 90 days: 25.6%
·Average portfolio credit quality:
Liquid Operating - AAA/Aaa
Long- Term - AA/Aa1
·Percent of portfolio with credit ratings below “A”by any rating agency and a description of
such securities:
Liquid Operating - no exceptions
Long- Term - Percent of portfolio - 1.0%
Cost Maturity
Date
Moody S&P Fitch
SLMA 2008-9 A $11,180.25 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
Wells Fargo & Company Note $2,954,520.00 7/22/2022 A2 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.
ATTACHMENT
The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda
package:
·Consolidated Financial Report for the First Quarter Ended September 30, 2020
Orange County Sanitation District Printed on 11/3/2020Page 3 of 3
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Orange County, California
Table of Contents
Executive Summary………………………………………………………………………..…….…….…1
Budget Review
Section 1 – Consolidated Financial Reports ......................................................................... 1
Section 2 – Operating Budget Review
Chart of Cost per Million Gallons by Department .................................................... 1
Chart of Collection, Treatment, & Disposal Expenses by Major Category ............... 1
Divisional Contributions to Cost Per Million Gallons ................................................ 2
Comparison of Expenses by Department ................................................................ 3
Summary of Collection, Treatment, & Disposal Expenses by Major Category ......... 4
Summary of Revenues ........................................................................................... 5
Summary of Collection, Treatment, & Disposal Expenses by Line Item .................. 6
Summary of Collection, Treatment, & Disposal Expenses by Process .................... 8
Chart of Staffing Trends .......................................................................................... 9
Section 3 – Capital Improvement Program Budget Review
Chart of Capital Improvement Program By Process Area and Project Driver .......... 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
Quarterly COP Report…………………………………………………………………………………....1
FY 2020-21 First Quarter Financial Report
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Executive Summary
Page 1
Consolidated Financial Reports
For the First Quarter Ended
September 30, 2020
Included in this consolidated report are the following quarterly financial reports for the
period ended September 30, 2020:
First Quarter Budget Review:
The Consolidated Financial Reports Section provides the Directors, staff, and the
general public with a comprehensive overview of the financial results of the
Sanitation District through the first quarter ended September 30, 2020.
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 September 30, 2020. The chart below provides
for a summary of these activities.
Various detail information can be found in this report. Below is a descriptive
summary of these activities through September 30, 2020:
a) Most major expense categories are anticipated to be at or below budget.
b) Total revenues are at 2.7 percent of the $479.2 million budget mainly due to
the timing of property tax and sewer fee distribution from the County that
occurs mostly after the first quarter. These two revenue sources make up
83.1 percent of the Sanitation District’s total budgeted revenue. Most of the
other, less material revenue sources are tracking lower than the proportionate
budget through September 30, including Permit Fees, Capital Assessments-
IRWD, Capital Facilities Capacity Charges, Interest Earnings, CIP
FY 2020-21 First Quarter Financial Report
Page 2
Reimbursements, CNG Sales, Other Revenues, and Other Sales. Overall,
total revenues are projected to approximate budget at year-end. More
detailed information on revenues is provided within Section 1 – Pages 4
through 6.
c) Collection, Treatment and Disposal Costs:
As indicated within the Consolidated Financial Reports Section of this report,
the net operating requirements through the first quarter of $42.7 million is
currently tracking at 24.5 percent of the $174.3 million budget. In addition, net
operating expenses have increased $1.3 million or 3.1 percent in comparison
with the same period last year. Overall, staff expects the total operating costs
to remain at or slightly below budget throughout the remainder of the year.
More detailed information on operating expenses is provided within Section 1
– Pages 1 through 4.
The total cost per million gallons is $2,479 based on flows of 187 million
gallons per day. This is $61 per million gallons, or 2.4 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
7 through 9.
d) The total projected capital outlay cash flow of the Capital Improvement
Program (CIP) for FY 2020-21 has been revised to $150.9 million, or 102.2
percent of the board approved cash outlay of $147.6 million. The actual cash
outlay spending through the first quarter is $27.9 million, or 18.9 percent of
the total budgeted outlay. More detailed information on the CIP budget review
can be found in Section 1 – Page 10 and Section 3.
First Quarter 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 29 basis points
outperformed the ICE BAML 1-5 Year US Corp/Govt Rated AAA-A Index return of
24 basis points, while the Liquid Operating Monies Portfolio quarterly return of 4
basis points matched the ICE BAML 3-Month US Treasury Bill Index return.
Chandler further notes that US equities experienced a moderate selloff in
September (with the S&P 500 index down 3.9% month-over-month) and
investment grade corporate credit spreads widened modestly (based on the ICE
BofA US Corporate Index). In their view, the recent repricing of risk assets has
been rational and consistent with the evolving economic and political backdrop.
The economy has improved significantly from the depths of the pandemic crisis
Executive Summary
Page 3
earlier this year, but the recovery is losing steam. Chandler continues to believe
the outlook for the economy hinges largely on the course of the pandemic, the
timing and amount of additional fiscal relief, and the timeline for a vaccine. While
Chandler remains optimistic about the progress toward a vaccine, they are seeing
a resurgence of the virus in some locations and negotiations in Congress over a
Phase 4 fiscal relief package remain at a stalemate. While Chandler has a high
degree of confidence that another round of fiscal stimulus will ultimately be
passed, the timeline has been pushed out and the chances of getting something
done before the November election have dimmed. This may not bode well for the
fourth quarter and Chandler anticipates near-term economic data may soften.
Chandler believes financial markets are potentially poised for increased volatility
through year-end.
Federal Open Market Committee (FOMC) kept monetary policy unchanged in
September with the fed funds target rate in a range of 0.0% to 0.25%. Monetary
policy remains highly accommodative and policymakers remain dovish. The Fed’s
balance sheet has grown to over $7.0 trillion from about $4.2 trillion prior to the
pandemic, and the Fed has indicated it will continue to use its balance sheet to
support smooth financial market functioning, as needed. In the September policy
statement, the FOMC noted that inflation continues to run below its 2.0% target, as
weaker demand and lower oil prices are holding down consumer prices. Longer-
term, the FOMC will allow inflation to run above 2.0% for some period of time
before it looks to tighten policy, which implies the fed funds target rate will remain
anchored near zero for years. The Fed’s summary of economic projections signals
that the target fed funds rate will remain unchanged through at least 2023.
The Treasury yield curve was little changed in September on a month-over-month
basis, following moderate curve steepening in August. In the first week of October,
the yield curve has steepened further, driven by an increase in longer-dated
Treasury yields.
At September month-end, Treasury yields were much lower on a year-over-year
basis. The 3-month T-bill yield was down 172 basis points, the 2-year Treasury
yield was down 150 basis points, and the 10-Year Treasury yield was down 98
basis points, year-over-year. Yields declined precipitously in March 2020, with the
Fed cutting rates by a total of 150 basis points and a flight to safe-haven assets
driving down yields across the curve. The Fed has signaled plans to keep the front
end of the Treasury yield curve anchored near zero for at least the next few years.
In the past few months, the Treasury yield curve has steepened, which Chandler
believes has been driven by a flood of new issuance as well as rising inflation
expectations.
The Consumer Price Index (CPI) was up 1.3% year-over-year in August, versus
up 1.0% in July. Core CPI (CPI less food and energy) was up 1.7% year-over-year
in August, versus up 1.6% in July. The Personal Consumption Expenditures (PCE)
index was up 1.4% year-over-year in August, versus up 1.1% year-over-year in
FY 2020-21 First Quarter Financial Report
Page 4
July. Core PCE, which is the Fed's primary inflation gauge, was up 1.6% year-
over-year in August, versus up 1.4% year-over-year in July. Pricing pressures are
increasing but remain below the Fed's inflation target.
Economic Outlook
The impact of the coronavirus pandemic continues to influence the direction of
asset prices and the ultimate trajectory of the recovery. Initially the virus imposed a
synchronized hit to the global economy however due to varying policy responses
and changes in behavior going forward the Chandler team expects the recovery to
be de-synchronized across regions, industries and individuals. The strict
lockdowns experienced earlier in the year are very unlikely to be re-instituted on a
national level due to both healthcare systems being much better prepared for
COVID patients and the widely held acknowledgement lockdowns should be
avoided at all costs. The degree of uncertainty related to the coronavirus continues
to dissipate. Investment grade and high yield bond spreads tightened, and equity
indices posted positive returns, however the rate of change in both broad asset
classes slowed in Q3 compared to Q2. Economic growth will remain below pre-
pandemic levels until a vaccine for the coronavirus is widely available and
consumer behavior evolves. Chandler expects a vaccine to be available in the first
half of 2021 and this view is largely reflected in current asset prices in Chandler’s
judgement.
Economic data points improved during the quarter however many metrics remains
well short of pre-pandemic valuations. The unemployment rate continued to
improve, coming in at 7.9% in September, compared to 11.1% at the end of June
however still well above the 3.5% rate at the end of December 2019. The three-
month and six-month moving averages on non-farm payrolls are currently 1.30
million and -1.56 million, respectively, highlighting the severe loss of jobs due to
the pandemic and the tentative recovery in the job market. Weekly and continuing
jobless are trending lower, a positive, but the lack of additional fiscal stimulus has
negatively impacted the rate of improvement with both metrics remaining at
stressed levels. Risk assets have largely ignored the lack of progress on additional
fiscal stimulus to support the recovery as most investors believe the challenging
political environment (late in the Presidential election cycle) is a contributing factor
to the lack of progress. Post the election results the Chandler team expects
additional fiscal stimulus to be implemented to further support the economic
recovery.
Monetary policy remains highly stimulative, and the Federal Reserve took further
actions during the quarter to solidify the view rates will remain low for the
foreseeable future. Notably the Federal Reserve will no longer view a low
unemployment rate as a harbinger to inflation risks, and is poised to allow inflation
to be above the 2% threshold for a period of time before adjusting policy tighter to
make up for the periods of inflation being below 2%. The Federal Reserve
continues to emphasize they will do whatever it takes to support the recovery and
Chandler expects the unconventional policy tools implemented at the height of the
Executive Summary
Page 5
pandemic to remain in place for an extended time period to support the recovery.
In the short-to-intermediate term investment grade spreads will be well supported
as investors are comfortable with belief the Federal Reserve will step in to support
markets (via asset purchases) if spreads become dislocated. In a welcome
development for the Federal Reserve, ten year TIPS spreads moved higher by 29
basis points, closing the quarter at 1.63%, however until the breakeven rate is
above 2.3% for an extended period of time the Federal Reserve will remain
content to keep front end rates pegged at zero. Treasury yields were stable during
the quarter; however, Chandler expects volatility in rates further out the curve in
2021 as the impact of the outsized fiscal and monetary stimulus, as well as the
path of the global economic recovery, will influence valuations.
First Quarter Certificates of Participation (COP) Report
The report includes a summary of each outstanding debt issuance and a
comparative chart illustrating the COP rate history.
FY 2020-21 First Quarter Financial Report
Page 6
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Consolidated Financial Reports
Section 1 - Page 1
First Quarter Financial Report
September 30, 2020
Financial Management is pleased to present the FY 2020-21 first quarter financial
report. This report provides a comprehensive overview of the financial condition of the
Sanitation District and reports on the status of all capital projects in progress. A
summary of the sections contained within this report is provided below.
Operating Budget Review: This section reports on collection, treatment, and disposal
net operating requirements.
At September 30, 2020, 24.5 percent, or $42.7 million of the FY 2020-21 net operating
budget of $174.3 million has been expended. Net operating expenses increased from
the same period last year by $1.3 million, or 3.1 percent, mainly due to an increase of
$691,000 in Repairs and Maintenance, $564,000 in Salaries and Benefits, $280,000 in
Operating Materials and Supplies, $211,000 in Other Operating Supplies, $190,000 in
Utilities, and a decrease of $162,000 in indirect costs allocated out to capital projects,
partially offset by a decrease of $330,000 in Contractual Services, $247,000 in
Administrative Expenses, $104,000 in Professional Services, and $48,000 in Research
and Monitoring. 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.
At September 30, 2020, 2.7 percent, or $13.0 million of the FY 2020-21 budgeted total
revenues of $479.2 million has been recognized. Revenues decreased from the same
period last year by $7.7 million, or 37.1 percent, mainly due to a decrease of $4.0 million
in Interest Earnings, $1.9 million in Capital Facilities Capacity Charges, $1.1 million in
Permit Fees, $657,000 in CIP Reimbursements, $204,000 in IRWD Intra District Sewer
Use, and $86,000 in Property Taxes, offset primarily by an increase of $461,000 in
Sludge Disposal-IRWD. These and other variances that factor into this net decrease in
revenues are discussed in more detail below. Overall, staff expects the total
revenues to remain at or slightly below budget throughout the remainder of the
year.
Significant operating results as of September 30, 2020 include the following:
Salaries, Wages and Benefits – Personnel costs of $24.8 million are on target at
24.3 percent of the budget through the first quarter of FY 2020-21. The budget
is based on a 5 percent vacancy factor, and staffing is 31 full-time equivalents
(FTEs), or 4.9 percent below the total 639 FTEs approved in the FY 2020-21 budget.
Salary and benefit costs are $564,000 or 2.3 percent higher than the $24.2 million
incurred in the same period last year, mainly due to an increase of $592,000 in
salaries and wages resulting from cost of living adjustments included in the current
Memorandums of Understanding for all employee bargaining units. Net operating
FY 2020-21 First Quarter Financial Report
Section 1 - Page 2
personnel costs are expected to approximate budget throughout the
remainder of the year.
Administrative Expenses – Administrative Expenses totaled $533,000, or 26.2
percent of the $2.0 million budget through September 30. These costs are
$247,000 or 31.7 percent lower at September 30 in comparison with the prior year,
mainly due to decreases of $161,000 in purchases of small computer items including
HP Elitebooks, $43,000 in memberships, and $29,000 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.
Printing and Publication Expenses – Printing and Publication Expenses totaled
$50,000 or 11.9 percent of the $415,000 budget through September 30. These
costs are $22,000 or 30.8 percent lower at September 30 in comparison with the
prior year, due to the increased incorporation of paperless processes and reports in
response to the COVID-19 pandemic. Printing and publication costs are
expected to be below budget at year-end.
Training and Meetings – Training and meetings of $97,000 are below target at
9.0 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,
and the limiting or canceling of in-person training and meetings in response to the
COVID-19 pandemic. These costs have decreased over the same period last year
by $32,000 or 25.1 percent. Total training and meeting costs are anticipated to
be below budget at year-end.
Operating Materials and Supplies – Operating materials and supplies of $5.1
million is on target at 24.1 percent of the $21.3 million budget through
September 30. Operating Materials and Supplies are higher than the prior year by
$280,000 or 5.8 percent, primarily due to an increase in Odor Control of $137,000,
Disinfection of $110,000, and Tools of $110,000, partially offset by a decrease in
Chemical Coagulants of $186,000 due to the increase in operational efficiencies
brought about by newly commissioned dewatering centrifuges. Based on current
processes, operating materials and supplies are anticipated to approximate
budget at year-end.
Contractual Services – Contractual services is below target at $4.2 million or
21.6 percent of the $19.2 million budget through September 30. Solids Removal
costs, budgeted at $12.4 million, comprise the majority of this expense category at
$2.9 million, or 23.8 percent of its budget at September 30. Contractual Services is
lower by $330,000 or 7.4 percent over the same period last year, due to the
decrease of $402,000 in Other Contractual Services as the result of a reduction in
manhole rehabilitation, industrial cleaning, and digester assessment services, as
well as costs reclassified to repairs and maintenance, and $80,000 in Solids
Removal costs due to reduced biosolids production attributable to the new
dewatering centrifuges. These decreases are partially offset by increases of $82,000
in Janitorial costs attributable to additional cleaning services for COVID-19, $43,000
Consolidated Financial Reports
Section 1 - Page 3
in Other Waste Disposal for hazardous waste packing, transportation, and disposal,
and $34,000 in Oxygen for liquid oxygen and associated vaporization system
maintenance. County Service Fees totaled only $5,000 or 1.1 percent of the
$489,000 budget through the first quarter 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 $657,000 or 11.4
percent of the $5.7 million budget through September 30. Professional service
costs, such as Audit & Accounting, Environmental Scientific Consulting, Industrial
Hygiene Services, and Labor Negotiation Services, are proportionately low through
September 30 due to a variety of factors such as timing of services and re-
evaluation of needs for services. These costs are $104,000 or 13.7 percent lower at
September 30 in comparison with the prior year, mainly due to a decrease of
$259,000 in Legal Services, offset by increases of $98,000 in Engineering Services
and $64,000 in Software Program Consulting. It is anticipated that the costs for
this category will be below budget at year-end.
Research and Monitoring – Research and monitoring costs totaled $672,000, or
51.5 percent of the $1.3 million budget through September 30. These costs are
$48,000, or 6.6 percent lower at September 30 in comparison with the prior year,
due to decreases of $46,000 in Air Quality Monitoring costs for emissions testing
and $26,000 in Environmental Monitoring costs for ocean water quality analysis,
offset by an increase of $25,000 in Research costs, reflecting the higher annual
contribution to Southern California Coastal Water Research Project. Total research
and monitoring costs approximate budget at year-end.
Repairs and Maintenance – Repair and maintenance costs totaled $8.2 million,
or 28.8 percent of the $28.4 million budget through September 30. These costs
are $691,000, or 9.3 percent higher at September 30 in comparison with the prior
year, mainly for repair and maintenance services such as digester cleaning,
mechanical rehabilitation and overhaul of primary clarifier tanks, as well as
information technology software maintenance and support. It is anticipated that the
costs for this category will approximate budget at year-end.
Utilities – Utilities costs totaled $2.5 million, or 30.5 percent of the $8.4 million
budget through September 30. These costs are $190,000, or 8.1 percent higher at
September 30 in comparison with the prior year, primarily due to an increase of
$162,000 and $27,000 for Power and Water respectively, because of greater
demand on these resources by the new biosolids dewatering centrifuges. In addition,
utility costs in the first quarter are typically more than the proportionate budget
through September 30 due to increased summer electricity rates administered by
Southern California Edison in all three months of the first quarter. It is anticipated
that the costs will approximate budget at year-end.
Other Operating Supplies – Other operating supplies costs totaled $896,000, or
24.1 percent of the $3.7 million budget through September 30. Property and
FY 2020-21 First Quarter Financial Report
Section 1 - Page 4
General Liability Insurance, budgeted at $2.2 million, comprise the majority of this
expense category at $551,000. These costs are $121,000, or 28.2 percent higher at
September 30 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 is $67,000 higher due to timing of payments for
emission, equipment permit, and facility fees. It is anticipated that other operating
supplies costs will approximate budget at year-end.
Revenues – Service Fees and Property Taxes – Through September 30, revenues
from service fees are at $40,000, or 0.0 percent of the $298.1 million budget
and property taxes are at $2.2 million, or 2.2 percent of the $99.9 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 low sewer service fee revenue is attributable
to no sewer service fee apportionments scheduled or received from the County
through the first quarter, while sewer service rebates have been issued for
overcharges in prior years. The increase in service fee revenue of $33,000 at
September 30 in comparison with the prior year is primarily due to a reduction in
user fee rebates issued in the current period. The property tax revenue reduction of
$86,000, or 3.7 percent over the prior period is the result of timing of property tax
collections from the County, offset by the growth in assessed property values. These
revenues are expected to approximate budget at year-end.
Revenues – Permittee User Fees – Permittee User Fees are at $2.2 million, or
17.1 percent of the $12.8 million budget. The revenues through the first quarter
are lower than the same period last year by $1.1 million due to the actual discharge
of industrial users being significantly less than the estimated billings in the prior year,
largely in part to the impact COVID-19 had on these users’ flow in the last quarter of
the prior fiscal year. Additionally, the number of permittees fluctuates from year to
year as businesses establish or cease their operations. Permit user fees revenues
are expected to be below budget at year-end.
Revenues – Inter District Sewer Use – SAWPA and SBSD – Inter District Sewer
revenues-SAWPA and SBSD are at $668,000, or 25.3 percent of the $2.6 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 first quarter are lower than the same
period last year by $58,000, or 8.1 percent due to a decrease in operation and
maintenance charges, based on flows received from these agencies. These
revenues are expected to approximate budget at year-end.
Revenues – Intra District Sewer Use – IRWD – Intra District Sewer revenues-
IRWD are at $965,000, or 20.7 percent of the $4.7 million budget. This revenue is
derived from charges to the Irvine Ranch Water District (IRWD) for treatment of
flows. The revenues through the first quarter are lower than the same period last
year by $204,000, or 17.5 percent, mainly due to a decrease of $129,000 in
Consolidated Financial Reports
Section 1 - Page 5
operating and maintenance charges to IRWD and an increase of $82,000 in interest
income allocated to IRWD based on higher cash reserves held on behalf of this
agency. These revenues are expected to approximate budget at year-end.
Revenues – Sludge Disposal – IRWD – Sludge Disposal-IRWD fees are at $2.7
million, or 44.4 percent of the $6.1 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 first quarter are higher than the
same period last year by $461,000, or 20.6 percent, mainly due to increased
estimates of 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 by the
end of the second quarter. It is anticipated that IRWD sludge disposal revenues
will approximate or be below budget at year-end.
Revenues – Capital Assessments – IRWD – Capital Assessments-IRWD are at
$520,000, or 10.0 percent of the $5.2 million budget. The revenues through the
first quarter are higher than the same period last year by $18,000 or 3.6 percent,
mainly due to an increase 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 $1.4
million, or 6.9 percent of the $20.1 million budget. The revenues through the first
quarter are lower than the same period last year by $1.9 million, or 58.2 percent, due
to a substantial decrease in supplemental capital facilities capacity charges
assessed to industrial dischargers, accompanied by a moderate decrease in
connection fees collected from cities. This is likely due to COVID-19 and the
resulting decrease in total building permit valuation as forecasted by Chapman
University to be 19.1 percent in 2020. These revenues are expected to be below
budget at year-end.
Revenues – Interest Earnings – Interest Earnings are at $1.8 million, or 13.3
percent of the $13.2 million budget. The revenues through the first quarter are
lower than the same period last year by $4.0 million, or 69.6 percent due to lower
yields earned on securities held in the investment portfolios. It is estimated that
interest earnings will be below budget at year-end.
Revenues – CIP Reimbursements – CIP Reimbursements, budgeted at $11.6
million, has not recognized any revenues through September 30. This is
$657,000 less than the same period last year and is due to timing of reimbursements
for construction projects, such as the budgeted $5.4 million from Orange County
Water District (OCWD) for P2-122 Headworks Modifications at Plant 2 for GWRS
Final Expansion and $3.4 million from OCWD for J-117B Outfall Low Flow Pump
Station. These revenues are expected to approximate or be below budget at
year-end.
FY 2020-21 First Quarter Financial Report
Section 1 - Page 6
Revenues – Wastehauler – Wastehauler revenues are at $149,000, or 19.8
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 first quarter are lower than the same period last year by
$46,000, or 23.5 percent due to a decrease in waste dumping. These revenues are
expected to approximate or be below budget at year-end.
Revenues – CNG Sales – CNG Sales revenues are at $48,000, or 12.0 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
first quarter are lower than the same period last year by $23,000, or 32.3 percent,
presumably attributed to the decrease in commuting brought about by COVID-19.
These revenues are expected to be below budget at year-end.
Revenues – Rents & Leases – Rents & Leases revenues are at $198,000, or 32.9
percent of the $600,000 budget. The revenues through the first quarter are lower
than the same period last year by $29,000, or 12.9 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 approximate budget at
year-end.
Revenues – Other – Other revenues are at $98,000, or 3.9 percent of the $2.5
million budget. These revenues are $25,000 or 34.2 percent higher than the same
period last year, primarily due to timing of receipts for non-operating revenues such
as civil penalties and interest, procurement card rebates and settlements, and
investigative cost reimbursements. These revenues are expected to approximate
or be below budget at year-end.
Consolidated Financial Reports
Section 1 - Page 7
Comparison of First Quarter Cost per
Million Gallon Results with Budget
Last Five Years
As demonstrated in the preceding graph for the current and each of the last four fiscal
years, the cost per million gallons at the end of the first quarter has been between 2.2
and 13.7 percent lower than the annual budget. The FY 2020-21 first quarter cost per
million gallons of $2,479 is 2.4 percent lower when compared with this year’s budget.
The increase in cost per million gallons of $83 from the previous year is primarily due to
an increase in operating expenses, which are 3.1 percent higher than the same period
last year, and a decrease in flows, which are 0.3 percent lower than the same period
last year. Staff believes that overall operating costs will be at or slightly below budget at
year-end.
The total cost per million gallons at September 30 is $2,479 based on flows of 187
million gallons per day. This is $61 per million gallons, or 2.4 percent lower than the
budgeted cost per million gallons of $2,540. 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 2.1
percent less than the proportionate budget through September 30, partially offset by
flows of 187 million gallons per day being 0.5 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.
$1,500
$1,600
$1,700
$1,800
$1,900
$2,000
$2,100
$2,200
$2,300
$2,400
$2,500
$2,600
16-17 17-18 18-19 19-20 20-21
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1st Quarter Fiscal Year Budget
FY 2020-21 First Quarter Financial Report
Section 1 - Page 8
Following are data tables showing the last five years of Single Family Residential User
Fees (SFR) and the cost per MG to collect, treat, and dispose of wastewater for OCSD
and for similar agencies. The agencies used in the tables were determined to be those
that most closely resembled OCSD in terms of services provided and treatment levels.
The summaries demonstrate that OCSD’s SFR and cost per million gallons are each
one of the lowest in their respective groups.
2016 2017 2018 2019 2020
Agency SFR SFR SFR SFR SFR Notes
San Francisco 842$ 937$ 988$ 1,076$ 1,169$
Vallejo Sanitation/Flood Control District 520$ 520$ 585$ 656$ 715$
City of Los Angeles 495$ 527$ 561$ 597$ 636$ Note 1
Central Contra Costa Sanitary District 503$ 530$ 567$ 598$ 598$
City of San Diego 573$ 573$ 573$ 573$ 573$ Note 4
Dublin San Ramon Services District 382$ 397$ 423$ 447$ 469$
Sacramento County 420$ 432$ 444$ 444$ 444$
East Bay MUD 373$ 391$ 410$ 423$ 439$
Union Sanitary District 380$ 393$ 407$ 421$ 455$
City of Hayward 358$ 375$ 394$ 412$ 430$
Orange County Sanitation District 327$ 331$ 335$ 339$ 339$
Irvine Ranch Water District 309$ 309$ 309$ 313$ 313$ Note 2
City of Fresno 309$ 309$ 309$ 309$ 309$ Note 3
Oro Loma Sanitary District 221$ 238$ 256$ 275$ 296$
Los Angeles County 182$ 186$ 191$ 196$ 213$ 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.
Benchmark Study
Five-Year Single Family Residential Rate
Rates as of July
Consolidated Financial Reports
Section 1 - Page 9
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$
San Francisco B 3 5,358$ 5,268$ 4,916$ 5,295$ 5,995$
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
Legend for Service Provided and Treatment Level:
B - Agency operates both collection and treatment facilities
T - Agency provides treatment services but not collection
2 - Advanced primary or primary with some secondary treatment
3 - Secondary treatment
4 - Advanced secondary or secondary with some tertiary treatment
Notes:
(1) - Does not include source control or overhead costs.
(3) - Operating expense decreased $1.1 million.
Benchmark Study
Five-Year Cost per MG
(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
(2) - 2017 Influent flow has not been reduced by the amount of sludge discharged to the sewers from DCTWRP
and LAGWRP.
FY 2020-21 First Quarter Financial Report
Section 1 - Page 10
Capital Outlay Review:
As depicted by the preceding chart, Capital Outlays totaled $27.9 million or 18.9
percent of the capital outlay cash flow budget for FY 2020-21 as of September 30,
2020. Costs are proportionately low through the first quarter as some projects are still in
the design phase or have experienced various delays or deferrals. Examples as of
September 30 are Headworks Rehabilitation at Plant 1, which has a budget of $9.4
million but actual costs of $300,000, Ocean Outfall System Rehabilitation, which has a
budget of $26.1 million but actual costs of $3.2 million, and Headquarters Complex,
which has a budget of $6.3 million but actual costs of $115,000. Overall, the capital
outlay costs of the capital improvement program are expected to approximate
$150.9 million, or 102.2 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 September 30, 2020, 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 September 30, 2020, no principal payments have been
made through the end of the first quarter. Total principal payments are expected to
approximate budget at year-end. Interest costs are expensed ratably throughout the
fiscal year. Interest expense is anticipated to approximate budget at year-end.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
09/30/20 Actual
Capital Outlay
$27,862,355
Projected 2020-21
Capital Outlay
$150,852,900
2020-21 Capital Outlay
Cashflow Budget
$147,562,000
Consolidated Financial Reports
Section 1 - Page 11
Self-Insurance Budget Reviews: Section 5 is the Self-Insurance Section. Through
September 30, the Self-Insurance Fund revenues totaled $705,000, or 33.6 percent of
the budget, while expenses were $674,000, or 23.6 percent of the budget.
Separate fund accounting is used for recording the revenue and expenses incurred in
managing these liability claims. The revenues to these funds represent charges to
operating divisions. Expenses to these funds include actual claims paid, claims
administration, and excess loss policies.
FY 2020-21 First Quarter Financial Report
Section 1 - Page 12
This Page Intentionally Left Blank
Operating Budget Review
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September 30, 2020
Budget Actual
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Collection, Treatment, & Disposal Expenses by Major Category
Budget and Actual (in thousands)
September 30, 2020
Budget Actual
Section 2 - Page 1
Divisional Contributions to Cost Per Million Gallons
For the Three Months Ended September 30, 2020
2020-21
09/30/18 09/30/19 Annual 09/30/20
Actual Actual Budget Actual
Flow in Million Gallons 17,286.08 17,268.33 68,620.00 17,208.88
Flow in Million Gallons per Day 187.89 187.70 188.00 187.05
Executive Management Department
General Management Administration 28.94$ 33.90$ 27.85$ 27.48$
Board Services 8.50 8.62 17.43 12.13
Public Affairs 13.74 16.84 18.95 15.66
Subtotal 51.18 59.36 64.23 55.27
Human Resources Department
Human Resources 51.22 58.62 60.77 44.53
Risk Management / Safety / Security 68.34 77.04 57.23 50.30
Subtotal 119.56 135.66 118.00 94.83
Administrative Services Department
Administrative Services 6.78 7.58 3.72 7.45
Consolidated Services - - 110.49 90.21
Financial Management 34.32 38.81 60.44 58.14
Contracts, Purchasing, & Materials Mgmt.64.97 60.76 67.31 68.44
Information Technology 202.83 243.60 176.24 239.80
Subtotal 308.90 350.75 418.20 464.04
Environmental Services Department
Environmental Services Administration 12.88 33.21 13.34 35.19
Resource Protection 83.11 77.56 89.34 81.70
Laboratory, Monitoring and Compliance 149.46 176.72 179.10 167.64
Subtotal 245.45 287.49 281.78 284.53
Engineering Department
Engineering Administration 6.99 13.22 18.63 16.89
Planning 50.22 51.38 60.05 46.52
Project Management Office 42.65 65.18 61.17 61.22
Design 120.78 105.39 108.07 86.01
Construction Management 70.98 93.14 96.73 93.03
Subtotal 291.62 328.31 344.65 303.67
Operations & Maintenance Department
Operations & Maintenance Administration 8.61 3.86 10.34 1.87
Collections Facilities O & M 194.08 160.12 224.94 182.77
Fleet Services 26.27 25.83 29.73 25.00
Plant No. 1 Operations 402.43 445.91 442.03 479.38
Plant No. 2 Operations 300.46 261.64 272.38 252.10
Plant No. 1 Maintenance 197.38 357.46 340.07 334.45
Maintenance Reliability and Planning 85.40 - - -
Plant No. 2 Maintenance 156.85 279.25 295.26 292.54
Subtotal 1,371.48 1,534.07 1,614.75 1,568.11
Total Operating Expenses 2,388.19 2,695.64 2,841.61 2,770.45
Cost Allocation (305.76) (299.74) (301.61) (291.38)
Net Operating Requirements 2,082.43$ 2,395.90$ 2,540.00$ 2,479.07$
FY 2020-21 First Quarter Financial Report
Section 2 - Page 2
Comparison of Expenses by Department
For the Three Months Ended September 30, 2020
2020-21
09/30/18 09/30/19 Year to Date Budget %
Department and Division Actual Actual Budget 09/30/20 Realized
Executive Management Department
General Management Administration 500,317$ 585,471$ 1,910,830$ 472,840$ 24.75%
Board Services 146,867 148,781 1,195,850 208,682 17.45%
Public Affairs 237,539 290,832 1,300,290 269,532 20.73%
Subtotal 884,723 1,025,084 4,406,970 951,054 21.58%
Human Resources Department
Human Resources 885,374 1,012,301 4,169,885 766,293 18.38%
Risk Management / Safety / Security 1,181,374 1,330,391 3,927,283 865,640 22.04%
Subtotal 2,066,748 2,342,692 8,097,168 1,631,933 20.15%
Administrative Services Department
Administrative Services 117,171 130,873 255,180 128,223 50.25%
Consolidated Services - - 7,582,154 1,552,414 20.47%
Financial Management 593,289 670,249 4,147,493 1,000,514 24.12%
Contracts, Purchasing, & Materials Mgmt. 1,123,009 1,049,256 4,619,006 1,177,730 25.50%
Information Technology 3,506,102 4,206,492 12,093,310 4,126,727 34.12%
Subtotal 5,339,571 6,056,870 28,697,143 7,985,608 27.83%
Environmental Services Department
Environmental Services Administration 222,718 573,469 915,720 605,630 66.14%
Resource Protection 1,436,715 1,339,345 6,130,250 1,406,037 22.94%
Laboratory, Monitoring and Compliance 2,583,600 3,051,597 12,289,727 2,884,969 23.47%
Subtotal 4,243,033 4,964,411 19,335,697 4,896,636 25.32%
Engineering Department
Engineering Administration 120,828 228,357 1,278,080 290,687 22.74%
Planning 868,073 887,257 4,120,560 800,525 19.43%
Project Management Office 737,206 1,125,582 4,197,645 1,053,555 25.10%
Design 2,087,898 1,819,922 7,416,060 1,480,157 19.96%
Construction Management 1,226,924 1,608,438 6,637,750 1,600,982 24.12%
Subtotal 5,040,929 5,669,556 23,650,095 5,225,906 22.10%
Operations & Maintenance Department
Operations & Maintenance Administration 148,869 66,693 709,620 32,176 4.53%
Collections Facilities O & M 3,354,942 2,764,942 15,435,673 3,145,299 20.38%
Fleet Services 454,126 446,011 2,040,071 430,164 21.09%
Plant No. 1 Operations 6,956,506 7,700,099 30,331,900 8,249,611 27.20%
Plant No. 2 Operations 5,193,785 4,518,161 18,690,716 4,338,364 23.21%
Plant No. 1 Maintenance 3,411,921 6,172,705 23,335,730 5,755,499 24.66%
Maintenance Reliability and Planning 1,476,165 - - - 0.00%
Plant No. 2 Maintenance 2,711,247 4,822,142 20,260,443 5,034,229 24.85%
Subtotal 23,707,561 26,490,753 110,804,153 26,985,342 24.35%
Total Operating Expenses 41,282,565 46,549,366 194,991,226 47,676,479 24.45%
Cost Allocation (5,285,554) (5,176,213) (20,825,710) (5,014,470) 24.08%
Net Operating Requirements 35,997,011$ 41,373,153$ 174,165,516$ 42,662,009$ 24.50%
Operating Budget Review
Section 2 - Page 3
Summary of Collection, Treatment, & Disposal Expenses by Major Category
For the Three Months Ended September 30, 2020
Expense Expense Increase Increase Percent
Budget Through Through (Decrease)(Decrease)Budget Remaining
2020-21 09/30/20 09/30/19 $%Realized Budget
Salary & Wages 79,271,100$ 18,586,099 17,994,172 591,927$ 3.29%23.45%60,685,001$
Employee Benefits 22,810,700 6,187,934 6,216,211 (28,277) -0.45%27.13%16,622,766
Administrative Expenses 2,034,004 532,979 780,131 (247,152) -31.68%26.20%1,501,025
Printing & Publication 415,375 49,612 71,705 (22,093) -30.81%11.94%365,763
Training & Meetings 1,076,761 97,059 129,506 (32,447) -25.05%9.01%979,702
Operating Materials & Supplies 21,460,704 5,129,250 4,848,888 280,362 5.78%23.90%16,331,454
Contractual Services 19,235,353 4,150,945 4,480,474 (329,529) -7.35%21.58%15,084,408
Professional Services 5,746,479 657,391 761,765 (104,374) -13.70%11.44%5,089,088
Research & Monitoring 1,304,700 671,879 719,513 (47,634) -6.62%51.50%632,821
Repairs & Maintenance 28,372,645 8,159,770 7,469,206 690,564 9.25%28.76%20,212,875
Utilities 8,364,954 2,547,235 2,356,960 190,275 8.07%30.45%5,817,719
Other Materials, Supplies,
and Services 5,048,451 906,326 720,835 185,491 25.73%17.95%4,142,125
Net Cost Allocation (20,825,710) (5,014,470) (5,176,213) 161,743 -3.12%24.08%(15,811,240)
Net Operating Requirements 174,315,516 42,662,009 41,373,153 1,288,856 3.12%24.47%131,653,507
Gallonage Flow (MG)68,620.00 17,208.88 17,268.33 (59.45) -0.34%
Gallonage Flow (MGD)188.00 187.05 187.70 (0.65) -0.35%
Gallonage Flow ($'s /MG)$2,540.00 $2,479.07 $2,395.90 $83.17 3.47%
Description
FY 2020-21 First Quarter Financial Report
Section 2 - Page 4
Revenue Percent Revenue Increase Increase
Budget Through Budget Remaining Through (Decrease)(Decrease)
Description 2020-21 09/30/20 Realized Budget 09/30/19 $%
Service Fees 298,144,470$ 40,083$ 0.01% 298,104,387$ 7,095$ 32,988$ 464.95%
Permit Fees 12,845,756 2,190,682 17.05% 10,655,074 3,289,220 (1,098,538) -33.40%
Inter District Sewer Use-SAWPA & SBSD 2,639,000 667,650 25.30% 1,971,350 726,065 (58,415) -8.05%
Intra District Sewer Use-IRWD 4,655,516 964,502 20.72% 3,691,014 1,168,597 (204,095) -17.46%
Sludge Disposal-IRWD 6,100,000 2,705,266 44.35% 3,394,734 2,244,149 461,117 20.55%
Capital Assessments-IRWD 5,194,000 520,230 10.02% 4,673,770 502,008 18,222 3.63%
Capital Facilities Capacity Charges 20,125,170 1,390,677 6.91% 18,734,493 3,324,839 (1,934,162) -58.17%
Property Taxes 99,935,520 2,241,318 2.24% 97,694,202 2,326,912 (85,594) -3.68%
Interest Earnings 13,177,000 1,757,304 13.34% 11,419,696 5,788,216 (4,030,912) -69.64%
CIP Reimbursements 11,643,517 - 0.00% 11,643,517 657,477 (657,477) -100.00%
Wastehauler 750,000 148,666 19.82% 601,334 194,244 (45,578) -23.46%
Grant Revenue 464,000 - 0.00% 464,000 - - 0.00%
CNG Sales 400,000 47,821 11.96% 352,179 70,670 (22,849) -32.33%
Rents & Leases 600,000 197,660 32.94% 402,340 226,838 (29,178) -12.86%
Other Revenues 2,485,671 98,007 3.94% 2,387,664 73,051 24,956 34.16%
Power Sales 25,000 10,477 41.91% 14,523 32,306 (21,829) -67.57%
Other Sales 50,000 983 1.97% 49,017 8,867 (7,884) -88.91%
Total Revenues 479,234,620$ 12,981,326$ 2.71% 466,253,294$ 20,640,554$ (7,659,228)$ -37.11%
Summary of Revenues
For the Three Months Ended September 30, 2020
Operating Budget Review
Section 2 - Page 5
FY 2020-21 First Quarter Financial Report
Summary of Collection, Treatment, & Disposal Expenses by Line Item
For the Three Months Ended September 30, 2020
Expense Percent Expense Increase
Budget Through Budget Remaining Through (Decrease)
Description 2020-21 09/30/20 Expensed Budget 09/30/19 $
Salaries, Wages & Benefits
Salaries & Wages 79,271,100$ 18,586,099$ 23.45% 60,685,001$ 17,994,172$ 591,927$ 3.29%
Employee Benefits
Retirement 11,685,000 3,046,351 26.07%8,638,649 3,073,082 (26,731) -0.87%
Group Insurances 9,705,500 2,721,516 28.04%6,983,984 2,715,032 6,484 0.24%
Tuition & Certification Reimb 138,400 19,216 13.88%119,184 20,241 (1,025) -5.06%
Edu. degrees, Cert. & Lic.542,600 164,950 30.40%377,650 157,169 7,781 4.95%
Uniform Rental 107,600 26,667 24.78%80,933 29,322 (2,655) -9.05%
Workers' Compensation 518,900 129,703 25.00%389,197 194,998 (65,295) -33.48%
Unemployment Insurance 2,300 51,381 2233.96%(49,081) 328 51,053 15564.94%
EMT Supplemental Benefits 110,400 28,150 25.50%82,250 26,039 2,111 8.11%
Total Benefits 22,810,700 6,187,934 27.13% 16,622,766 6,216,211 (28,277) -0.45%
Salaries, Wages & Benefits 102,081,800 24,774,033 24.27% 77,307,767 24,210,383 563,650 2.33%
Matl, Supply, & Services
Administrative Expenses
Memberships 598,217 277,300 46.35%320,917 320,515 (43,215) -13.48%
Office Exp - Supplies 64,655 5,845 9.04%58,810 15,832 (9,987) -63.08%
Postage 32,700 11,397 34.85%21,303 7,097 4,300 60.59%
Books & Publications 44,352 7,035 15.86%37,317 35,617 (28,582) -80.25%
Forms 580 - 0.00%580 - - N/A
Small Computer Items 925,500 190,140 20.54%735,360 350,785 (160,645) -45.80%
Minor Furniture & Fixtures 368,000 41,262 11.21%326,738 50,285 (9,023) -17.94%
Subtotal 2,034,004 532,979 26.20%1,501,025 780,131 (247,152) -31.68%
Printing & Publication
Repro-In-House 230,375 37,622 16.33%192,753 58,805 (21,183) -36.02%
Printing-Outside 47,950 8,154 17.01%39,796 2,200 5,954 270.64%
Notices & Ads 137,000 3,836 2.80%133,164 10,700 (6,864) -64.15%
Photo Processing 50 - 0.00%50 - - N/A
Subtotal 415,375 49,612 11.94%365,763 71,705 (22,093) -30.81%
Training & Meetings
Meetings 167,796 2,230 1.33%165,566 23,932 (21,702) -90.68%
Training 908,965 94,829 10.43%814,136 105,574 (10,745) -10.18%
Subtotal 1,076,761 97,059 9.01%979,702 129,506 (32,447) -25.05%
Operating Mat'ls & Supplies
Chemical Coagulants 10,550,546 2,470,859 23.42%8,079,687 2,656,756 (185,897) -7.00%
Odor Control 6,907,776 1,630,570 23.60%5,277,206 1,493,511 137,059 9.18%
Disinfection 218,000 173,091 79.40%44,909 63,200 109,891 173.88%
Chemicals - Misc & Cogen 418,000 75,097 17.97%342,903 72,115 2,982 4.14%
Gasoline, Diesel & Oil 554,633 135,462 24.42%419,171 120,227 15,235 12.67%
Tools 923,230 213,333 23.11%709,897 103,645 109,688 105.83%
Safety equipment/tools 731,637 156,032 21.33%575,605 129,730 26,302 20.27%
Solv, Paints & Jan. Supplies 111,053 27,602 24.85%83,451 31,603 (4,001) -12.66%
Lab Chemicals & Supplies 652,969 155,402 23.80%497,567 149,353 6,049 4.05%
Misc. Operating Supplies 166,360 87,197 52.41%79,163 27,703 59,494 214.76%
Property Tax Fees 76,500 4,605 6.02%71,895 1,045 3,560 340.67%
Subtotal 21,310,704 5,129,250 24.07%16,181,454 4,848,888 280,362 5.78%
Contractual Services
Solids Removal 12,380,000 2,940,211 23.75%9,439,789 3,019,756 (79,545) -2.63%
Other Waste Disposal 899,500 222,783 24.77%676,717 179,945 42,838 23.81%
Groundskeeping 200,000 42,906 21.45%157,094 49,562 (6,656) -13.43%
Janitorial 495,000 211,295 42.69%283,705 129,636 81,659 62.99%
Outside Lab Services 286,750 36,047 12.57%250,703 35,592 455 1.28%
Oxygen 335,000 128,006 38.21%206,994 93,789 34,217 36.48%
County Service Fee 489,003 5,137 1.05%483,866 4,560 577 12.65%
Temporary Services 481,360 82,546 17.15%398,814 86,676 (4,130) -4.76%
Security Services 1,600,000 414,128 25.88%1,185,872 411,424 2,704 0.66%
Other 2,068,740 67,886 3.28%2,000,854 469,534 (401,648) -85.54%
Subtotal 19,235,353 4,150,945 21.58%15,084,408 4,480,474 (329,529) -7.35%
Increase
(Decrease)
%
Section 2 - Page 6
(Continued)
Operating Budget Review
Summary of Collection, Treatment, & Disposal Expenses by Line Item
For the Three Months Ended September 30, 2020
Expense Expense Increase Increase
Budget Through Remaining Through (Decrease)(Decrease)
Description 2020-21 09/30/20 Expensed Budget 09/30/19 $%
Continued:
Professional Services
Legal 1,620,290 44,222 2.73% 1,576,068 303,212 (258,990) -85.42%
Audit & Accounting 225,400 28,465 12.63% 196,935 31,925 (3,460) -10.84%
Engineering 980,000 167,398 17.08% 812,602 69,894 97,504 139.50%
Enviro Scientific Consulting 265,000 4,130 1.56% 260,870 388 3,742 964.43%
Software Prgm Consulting 305,000 193,395 63.41% 111,605 129,033 64,362 49.88%
Advocacy Efforts 187,685 35,100 18.70% 152,585 42,400 (7,300) -17.22%
Industrial Hygiene Services 50,000 - 0.00% 50,000 110 (110) -100.00%
Labor Negotiation Services 30,000 - 0.00% 30,000 28,748 (28,748) -100.00%
Other 2,083,104 184,681 8.87% 1,898,423 156,055 28,626 18.34%
Subtotal 5,746,479 657,391 11.44% 5,089,088 761,765 (104,374) -13.70%
Research & Monitoring
Environmental Monitoring 654,700 150,018 22.91% 504,682 176,467 (26,449) -14.99%
Air Quality Monitoring 150,000 21,861 14.57% 128,139 68,046 (46,185) -67.87%
Research 500,000 500,000 100.00% - 475,000 25,000 5.26%
Subtotal 1,304,700 671,879 51.50% 632,821 719,513 (47,634) -6.62%
Repairs & Maintenance
Materials & Services 23,891,620 5,856,209 24.51% 18,035,411 5,409,985 446,224 8.25%
Svc. Mtc. Agreements 4,481,025 2,303,561 51.41% 2,177,464 2,059,221 244,340 11.87%
Subtotal 28,372,645 8,159,770 28.76% 20,212,875 7,469,206 690,564 9.25%
Utilities
Telephone 505,971 127,617 25.22% 378,354 127,794 (177) -0.14%
Diesel For Generators 42,500 3,165 7.45% 39,335 5,635 (2,470) -43.83%
Natural Gas 710,801 247,341 34.80% 463,460 242,957 4,384 1.80%
Power 6,064,165 1,899,956 31.33% 4,164,209 1,738,100 161,856 9.31%
Water 1,041,517 269,156 25.84% 772,361 242,474 26,682 11.00%
Subtotal 8,364,954 2,547,235 30.45% 5,817,719 2,356,960 190,275 8.07%
Other Operating Supplies
Outside Equip Rental 100,000 8,520 8.52% 91,480 21,766 (13,246) -60.86%
Insurance Premiums 30,000 31,451 104.84% (1,451) 28,501 2,950 10.35%
Prop & Gen Liab Insurance 2,205,000 551,241 25.00% 1,653,759 429,999 121,242 28.20%
Freight 100,000 45,804 45.80% 54,196 22,562 23,242 103.01%
Misc. Operating Expense 304,457 73,236 24.05% 231,221 63,728 9,508 14.92%
Regulatory Operating Fees 976,600 186,060 19.05% 790,540 118,791 67,269 56.63%
Subtotal 3,716,057 896,312 24.12% 2,819,745 685,347 210,965 30.78%
General Mgr Contingency
& Reappropriations 1,195,574 - 0.00% 1,195,574 - - N/A
Other Non-Oper Expense 136,820 10,014 7.32% 126,806 35,488 (25,474) -71.78%
Total Materials,
Supplies & Services 92,909,426 22,902,446 24.65% 70,006,980 22,338,983 563,463 2.52%
Total Expenditures 194,991,226 47,676,479 24.45% 147,314,747 46,549,366 1,127,113 2.42%
Cost Allocation (20,825,710) (5,014,470) 24.08% (15,811,240) (5,176,213) 161,743 3.12%
Net Operating Requirements 174,165,516$ 42,662,009$ 24.50%131,503,507$ 41,373,153$ 1,288,856$ 3.12%
Percent
Budget
Section 2 - Page 7
FY 2020-21 First Quarter Financial Report
Summary of Collection, Treatment, & Disposal Expenses by Process
For the Three Months Ended September 30, 2020
Increase Increase
Actual Actual (Decrease)(Decrease)
09/30/20 09/30/19 $%
Process:
Preliminary Treatment 3,036,592$ 1,729,329$ 1,307,263$ 75.59%
Primary Treatment 4,691,716 6,252,735 (1,561,019) -24.97%
Secondary Treatment 2,810,940 2,738,688 72,252 2.64%
Cryogenic Plant (Plant 2)260,474 190,774 69,700 36.54%
Effluent Disposal 293,220 183,311 109,909 59.96%
Solids Handling 11,240,485 12,425,127 (1,184,642) -9.53%
Cogeneration 5,013,827 4,659,215 354,612 7.61%
Utilities 1,292,600 948,216 344,384 36.32%
Electrical Distribution 540,508 418,488 122,020 29.16%
Miscellaneous Buildings 2,926,468 2,457,228 469,240 19.10%
External Location 163,253 87,689 75,564 86.17%
Nerissa Vessel 68,865 66,771 2,094 3.14%
Laboratory 4,586,642 4,451,240 135,402 3.04%
Collections 5,736,419 4,764,342 972,077 20.40%
Net Operating Requirements 42,662,009$ 41,373,153$ 1,288,856$ 3.12%
Section 2 - Page 8
Staffing Trends
Full Time Equivalents
September 30, 2020
At September 30, 2020, the total head count was 619 employees, or a full time equivalency of 608.
Operating Budget Review
450
500
550
600
650
700
6/30/17 6/30/18 6/30/19 6/30/20 9/30/20
578 603 614 606 608
49
32 22 34 31
Actual Vacant
627 635 636 640 639
Section 2 - Page 9
FY 2020-21 First Quarter Financial Report
This Page Intentionally Left Blank
Section 2 - Page 10
Capital Improvement Program
By Process Area and Project Driver
For the Three Months Ended September 30, 2020
Capital Improvement Program Budget Review
Total Capital Improvement Outlays - $27,862,355
Rehabilitation and Replacement: 61.3%
Strategic Initiatives: 23.5%
Additional Capacity: 11.5%
Regulatory: 3.7%
Total Capital Improvement Outlays - $27,862,355
Collections Facilities: 40.6%
Liquid Treatment: 43.0%
Solids Handling & Digestion: 1.3%
Utility Systems: 3.5%
Support Facilities: 3.9%
Other: 7.7%
Section 3 - Page 1
FY 2020-21 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2020
2020-21 2020-21 2020-21
Cashflow Actual at Projected
Budget 9/30/2020 Outlay
Collection System Improvement Projects
Collections Facilities
Taft Branch Capacity Improvements 314,739 19,052 79,100
Newhope - Placentia Trunk Grade Separation Replacement 92,123 - 1,200
Newhope-Placentia Trunk Replacement 18,441,383 5,730,921 16,761,200
Westminster Blvd Force Main Replacement 11,561,567 4,822,876 19,448,800
Rehabilitation of Western Regional Sewers 5,711,536 145,559 4,429,400
Interstate 405 Widening Project Impacts on OCSD Sewers 35,032 12,771 15,500
Seal Beach Pump Station Replacement 3,427,428 27,525 2,608,400
Bay Bridge Pump Station Replacement 5,684,572 183,004 3,887,200
Newport Beach Pump Station Pressurization Improvements 378,513 41,706 320,800
District 6 Trunk Sewer Relief 30,036 - -
Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation 823,405 29,053 870,900
MacArthur Force Main Improvement 45,631 6,415 22,300
Edinger Pump Station Replacement 102,369 - 52,400
Small Construction Projects Program - Collections 1,771,201 171,453 991,400
Operations & Maintenance Capital Program - Collections - - 221,400
Planning Studies Program - Collections - 24,791 204,300
SARI Rock Stabilizers Removal 45,869 11,641 37,200
Sunflower and Red Hill Interceptor Repairs 359,017 79,290 302,000
Total Collection System Improvement Projects 48,824,421 11,306,057 50,253,500
Section 3 - Page 2
(Continued)
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2020
2020-21 2020-21 2020-21
Cashflow Actual at Projected
Budget 9/30/2020 Outlay
Treatment & Disposal Projects
Headworks
Headworks Rehabilitation at Plant 1 9,418,986 300,474 6,268,400
Headworks Modifications at P2 for GWRS Final Expansion 5,413,951 1,872,238 5,853,200
Subtotal - Headworks 14,832,937 2,172,712 12,121,600
Primary Treatment
Primary Sedimentation Basins 3-5 Replacement at Plant 1 61,054 - 110,400
Primary Sedimentation Basins 6-31 Reliability Improv at P1 1,291,277 144,256 775,800
Primary Treatment Rehabilitation at Plant 2 8,087,122 1,980,354 6,473,600
Subtotal - Primary Treatment 9,439,453 2,124,610 7,359,800
Secondary Treatment
Return Activated Sludge Piping Replacement at Plant 1 5,566,916 3,562,990 5,151,200
Return Activated Sludge Piping Replacement at Plant 2 6,075,061 915,814 6,048,200
Subtotal - Secondary Treatment 11,641,977 4,478,804 11,199,400
Solids Handling & Digestion
Sludge Dewatering and Odor Control at Plant 1 896,419 70,923 246,000
Digester Ferric Chloride Piping Replacement at Plant 1 170,893 65,574 173,600
Sludge Dewatering and Odor Control at Plant 2 5,216,415 165,466 1,068,300
Interim Food Waste Receiving Facility 1,058,172 10,307 88,500
TPAD Digester Facility at Plant 2 1,787,669 57,762 2,091,100
Digesters Rehabilitation at Plant No. 2 589,432 - 89,500
Subtotal - Solids Handling & Digestion 9,719,000 370,032 3,757,000
Ocean Outfall Systems
Ocean Outfall System Rehabilitation 26,108,350 3,213,645 29,848,500
Sodium Bisulfite Station Rehabilitation at Plant 2 101,848 - 51,900
Subtotal - Ocean Outfall Systems 26,210,198 3,213,645 29,900,400
Utility Systems
Electrical Power Distribution System Improvements 1,823,293 209,238 1,630,600
Digester Gas Facilities Rehabilitation 4,282,106 535,304 5,357,100
Natural Gas Pipelines Replacement at Plants 1 and 2 1,038,492 52,930 1,012,000
Central Generation Engine Overhauls at Plants 1 and 2 291,727 - 186,600
Uninterruptable Power Supply Improvements at Plant 1 928,600 97,447 697,600
Consolidated Demolition and Utility Improvements at P2 914,715 11,055 267,600
Warehouse, Electrical, & 12kV Serv Center Replace at P2 717,257 76,409 1,347,600
Subtotal - Utility Systems 9,996,190 982,383 10,499,100
Capital Improvement Program Budget Review
Section 3 - Page 3
(Continued)
FY 2020-21 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2020
2020-21 2020-21 2020-21
Cashflow Actual at Projected
Budget 9/30/2020 Outlay
Process Related Special Projects
Safety Improvements Program 1,326,635 568,919 649,800
Subtotal - Process Related Special Projects 1,326,635 568,919 649,800
Information Management Systems
Process Control Systems Upgrades 10,000 - -
Project Management Information System 306,250 2,270 217,000
Information Technology Capital Program 3,061,700 154,433 586,100
Geographic Information System 59,707 117,164 149,500
EAM Software and Process Implementation - 154,823 843,000
Process Control Systems Upgrades Study 1,355,751 185,302 1,166,700
Subtotal - Information Management Systems 4,793,408 613,992 2,962,300
Strategic & Master Planning
Planning Studies Program 5,818,770 222,941 4,936,000
Subtotal - Strategic & Master Planning 5,818,770 222,941 4,936,000
Water Management Projects
GWRS Final Expansion Coordination 243,477 71,506 258,500
Subtotal - Water Management Projects 243,477 71,506 258,500
Research
Research Program 931,220 23,118 562,400
Subtotal - Research 931,220 23,118 562,400
Support Facilities
Small Construction Projects Program 6,668,877 504,651 3,243,000
Operations & Maintenance Capital Program 1,442,561 366,005 930,500
Fleet Services UST Leak Remediation at Plant 1 - 112 200
Title 24 Access Compliance and Building Rehab Project 575,678 17,477 175,400
Headquarters Complex 6,339,527 115,213 6,156,500
South Perimeter Security & Utility Improvements at Plant 1 680,311 68,648 709,300
Support Buildings Seismic Improvements at Plant 1 259,739 - 89,800
Subtotal - Support Facilities 15,966,693 1,072,106 11,304,700
Section 3 - Page 4
(Continued)
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2020
2020-21 2020-21 2020-21
Cashflow Actual at Projected
Budget 9/30/2020 Outlay
Others
Capital Improvement Program Management Services 26,901 781 10,800
Subtotal - Others 26,901 781 10,800
Total Treatment and Disposal Projects 110,946,859 15,931,091 95,537,600
Capital Equipment Purchases 5,061,800 625,207 5,061,800
Total Collection, Treatment and Disposal Projects
and Capital Equipment Purchases 164,833,080 27,862,355 150,852,900
Less: Savings and Deferrals (17,271,000) - -
Net Collection, Treatment and Disposal Projects
and Capital Equipment Purchases 147,562,080$ 27,862,355$ 150,852,900$
Capital Improvement Program Budget Review
Section 3 - Page 5
FY 2020-21 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2020
Current Total
Approved June 30, 2020 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30, 2021 Budget
Collection System Improvement Projects
Collections Facilities
Santa Ana Trunk Sewer Rehabilitation 54,620,000 - - - 54,620,000
Greenville-Sullivan Trunk Improvements 48,600,000 - - - 48,600,000
Taft Branch Capacity Improvements 14,000,000 56,207 79,100 135,307 13,864,693
Newhope - Placentia Trunk Grade Separation Replacement 4,300,000 4,201,046 1,200 4,202,246 97,754
Newhope-Placentia Trunk Replacement 112,000,000 84,639,453 16,761,200 101,400,653 10,599,347
Yorba Linda Dosing Station Installation 14,080,000 - - - 14,080,000
Beach Relief / Knott / Miller Holder Trunk Rehabilitation 35,132,000 - - - 35,132,000
Westminster Blvd Force Main Replacement 44,000,000 11,848,266 19,448,800 31,297,066 12,702,934
Rehabilitation of Western Regional Sewers 70,000,000 18,006,959 4,429,400 22,436,359 47,563,641
Interstate 405 Widening Project Impacts on OCSD Sewers 250,000 120,181 15,500 135,681 114,319
Seal Beach Pump Station Replacement 78,900,000 1,227,409 2,608,400 3,835,809 75,064,191
Los Alamitos Sub-Trunk Extension 84,124,000 - - - 84,124,000
Crystal Cove Pump Station Rehabilitation 13,200,000 - - - 13,200,000
Bay Bridge Pump Station Replacement 74,000,000 1,105,544 3,887,200 4,992,744 69,007,256
Newport Beach Pump Station Pressurization Improvements 4,300,000 118,338 320,800 439,138 3,860,862
District 6 Trunk Sewer Relief 7,250,000 7,154,952 - 7,154,952 95,048
MacArthur Pump Station Rehabilitation 9,800,000 - - - 9,800,000
Main Street Pump Station Rehabilitation 39,450,000 - - - 39,450,000
Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation 21,000,000 75,383 870,900 946,283 20,053,717
MacArthur Force Main Improvement 2,468,000 - 22,300 22,300 2,445,700
North Trunk Improvements 9,200,000 - - - 9,200,000
Edinger Pump Station Replacement 10,153,000 - 52,400 52,400 10,100,600
Slater Pump Station Rehabilitation 26,622,000 - - - 26,622,000
Small Construction Projects Program - Collections 10,103,000 4,753,104 991,400 5,744,504 4,358,496
Operations & Maintenance Capital Program - Collections 623,000 153,952 221,400 375,352 247,648
Planning Studies Program - Collections 4,259,000 3,480,009 204,300 3,684,309 574,691
Research Program - Collections 154,000 46,250 - 46,250 107,750
SARI Rock Stabilizers Removal 4,860,000 3,699,556 37,200 3,736,756 1,123,244
Sunflower and Red Hill Interceptor Repairs 4,700,000 218,182 302,000 520,182 4,179,818
Total Collection System Improvement Projects 802,148,000 140,904,791 50,253,500 191,158,291 610,989,709
Section 3 - Page 6
(Continued)
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2020
Current Total
Approved June 30, 2020 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30, 2021 Budget
Treatment & Disposal Projects
Headworks
Headworks Rehabilitation at Plant 1 406,000,000 29,367,809 6,268,400 35,636,209 370,363,791
Headworks Modifications at P2 for GWRS Final Expansion 32,000,000 8,077,454 5,853,200 13,930,654 18,069,346
Subtotal - Headworks 438,000,000 37,445,263 12,121,600 49,566,863 388,433,137
Primary Treatment
Primary Sedimentation Basins 3-5 Replacement at Plant 1 117,700,000 523,034 110,400 633,434 117,066,566
Primary Sedimentation Basins 6-31 Reliability Improv at P1 10,100,000 945,035 775,800 1,720,835 8,379,165
Primary Treatment Rehabilitation at Plant 2 237,000,000 28,788,870 6,473,600 35,262,470 201,737,530
B/C-Side Primary Clarifiers Rehabilitation at Plant 2 279,842,000 - - - 279,842,000
Subtotal - Primary Treatment 644,642,000 30,256,939 7,359,800 37,616,739 607,025,261
Secondary Treatment
Return Activated Sludge Piping Replacement at Plant 1 10,300,000 4,038,731 5,151,200 9,189,931 1,110,069
Return Activated Sludge Piping Replacement at Plant 2 10,800,000 2,029,755 6,048,200 8,077,955 2,722,045
Activated Sludge Aeration Basin Rehabilitation at Plant 2 65,600,000 - - - 65,600,000
Subtotal - Secondary Treatment 86,700,000 6,068,486 11,199,400 17,267,886 69,432,114
Solids Handling & Digestion
Sludge Dewatering and Odor Control at Plant 1 197,000,000 195,780,280 246,000 196,026,280 973,720
Digester Ferric Chloride Piping Replacement at Plant 1 1,360,000 124,687 173,600 298,287 1,061,713
Sludge Dewatering and Odor Control at Plant 2 90,477,000 85,102,044 1,068,300 86,170,344 4,306,656
Interim Food Waste Receiving Facility 6,300,000 1,289,539 88,500 1,378,039 4,921,961
TPAD Digester Facility at Plant 2 455,000,000 503,810 2,091,100 2,594,910 452,405,090
Digester P, Q, R, and S Replacement 165,900,000 - - - 165,900,000
Digesters Rehabilitation at Plant No. 2 40,632,000 - 89,500 89,500 40,542,500
Subtotal - Solids Handling & Digestion 956,669,000 282,800,360 3,757,000 286,557,360 670,111,640
Ocean Outfall Systems
Ocean Outfall System Rehabilitation 166,000,000 58,201,457 29,848,500 88,049,957 77,950,043
Sodium Bisulfite Station Rehabilitation at Plant 2 3,834,000 - 51,900 51,900 3,782,100
Subtotal - Ocean Outfall Systems 169,834,000 58,201,457 29,900,400 88,101,857 81,732,143
Utility Systems
Electrical Power Distribution System Improvements 26,500,000 388,036 1,630,600 2,018,636 24,481,364
Digester Gas Facilities Rehabilitation 173,000,000 8,304,560 5,357,100 13,661,660 159,338,340
Natural Gas Pipelines Replacement at Plants 1 and 2 1,610,000 471,007 1,012,000 1,483,007 126,993
Central Generation Engine Overhauls at Plants 1 and 2 26,000,000 - 186,600 186,600 25,813,400
Power Building Structural Seismic Improv at Plants 1 & 2 7,080,000 - - - 7,080,000
Capital Improvement Program Budget Review
Section 3 - Page 7
(Continued)
FY 2020-21 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2020
Current Total
Approved June 30, 2020 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30, 2021 Budget
Utility Systems (continued)
Central Generation Rehabilitation at Plant 1 68,452,000 - - - 68,452,000
Uninterruptable Power Supply Improvements at Plant 1 7,000,000 444,334 697,600 1,141,934 5,858,066
12.47 kV Switchgear Replacement at CenGen at Plant 1 14,800,000 - - - 14,800,000
Network and Server Relocation at Plant 1 3,027,000 - - - 3,027,000
Consolidated Demolition and Utility Improvements at P2 30,000,000 29,343,019 267,600 29,610,619 389,381
Central Generation Rehabilitation at Plant 2 108,000,000 - - - 108,000,000
Warehouse, Electrical, & 12kV Serv Center Replace at P2 65,000,000 - 1,347,600 1,347,600 63,652,400
Subtotal - Utility Systems 530,469,000 38,950,956 10,499,100 49,450,056 481,018,944
Process Related Special Projects
Safety Improvements Program 16,000,000 14,598,193 649,800 15,247,993 752,007
Subtotal - Process Related Special Projects 16,000,000 14,598,193 649,800 15,247,993 752,007
Information Management Systems
Process Control Systems Upgrades 33,000,000 - - - 33,000,000
Project Management Information System 2,280,000 1,311,043 217,000 1,528,043 751,957
Information Technology Capital Program 10,000,000 1,265,752 586,100 1,851,852 8,148,148
Geographic Information System 4,700,000 3,370,462 149,500 3,519,962 1,180,038
EAM Software and Process Implementation 7,500,000 5,592,229 843,000 6,435,229 1,064,771
Process Control Systems Upgrades Study 3,400,000 1,810,226 1,166,700 2,976,926 423,074
Subtotal - Information Management Systems 60,880,000 13,349,712 2,962,300 16,312,012 44,567,988
Strategic & Master Planning
Planning Studies Program 24,393,000 10,548,748 4,936,000 15,484,748 8,908,252
Subtotal - Strategic & Master Planning 24,393,000 10,548,748 4,936,000 15,484,748 8,908,252
Water Management Projects
GWRS Final Expansion Coordination 1,132,000 409,905 258,500 668,405 463,595
Subtotal - Water Management Projects 1,132,000 409,905 258,500 668,405 463,595
Research
Research Program 8,346,000 898,471 562,400 1,460,871 6,885,129
Subtotal - Research 8,346,000 898,471 562,400 1,460,871 6,885,129
Section 3 - Page 8
(Continued)
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2020
Current Total
Approved June 30, 2020 Year Projected Remaining
Project Accumulated Projected Cost at Future
Budget Cost Cost June 30, 2021 Budget
Support Facilities
Small Construction Projects Program 39,945,000 14,794,320 3,243,000 18,037,320 21,907,680
Operations & Maintenance Capital Program 14,999,000 2,232,839 930,500 3,163,339 11,835,661
Fleet Services UST Leak Remediation at Plant 1 14,952,000 1,202,456 200 1,202,656 13,749,344
Laboratory Rehabilitation at Plant 1 44,200,000 - - - 44,200,000
Title 24 Access Compliance and Building Rehab Project 18,400,000 17,648,352 175,400 17,823,752 576,248
Headquarters Complex 167,500,000 30,390,098 6,156,500 36,546,598 130,953,402
South Perimeter Security & Utility Improvements at Plant 1 10,000,000 1,171,563 709,300 1,880,863 8,119,137
Support Buildings Seismic Improvements at Plant 1 23,730,000 - 89,800 89,800 23,640,200
Collections Yard Relocation 1,840,000 - - - 1,840,000
Operations and Maintenance Complex at Plant 2 95,000,000 - - - 95,000,000
Subtotal - Support Facilities 430,566,000 67,439,628 11,304,700 78,744,328 351,821,672
Others
Capital Improvement Program Management Services 700,000 302,928 10,800 313,728 386,272
Subtotal - Others 700,000 302,928 10,800 313,728 386,272
Additional Charges to CIP Completed at 6/30/20 - - 15,800 15,800 (15,800)
Total Treatment and Disposal Projects 3,368,331,000 561,271,046 95,537,600 656,808,646 2,711,522,354
Capital Equipment Purchases 9,062,800 - 5,061,800 5,061,800 4,001,000
Total Collection, Treatment and Disposal Projects
and Capital Equipment Purchases 4,179,541,800$ $702,175,837 $150,852,900 $853,028,737 $3,326,513,063
Capital Improvement Program Budget Review
Section 3 - Page 9
FY 2020-21 First Quarter Financial Report
This Page Intentionally Left Blank
Section 3 - Page 10
Capital Assets Schedule
For the Three Months Ended September 30, 2020
Balance Year-to-Date Balance
07/01/20 Activity 09/30/20
CONSTRUCTION IN PROGRESS:
Treatment Plant 98,764,377$ 16,556,298$ 115,320,675$
Collection System 265,166,458 11,306,057 276,472,515
Subtotal 363,930,835 27,862,355 391,793,190
PROPERTY, PLANT & EQUIPMENT (at cost):
Land and Property Rights 41,967,355 - 41,967,355
Collection Lines and Pump Stations 892,975,053 - 892,975,053
Treatment Facilities 2,746,327,817 - 2,746,327,817
Effluent disposal facilities 96,972,016 - 96,972,016
Solids disposal facilities 3,463,236 - 3,463,236
General and administrative facilities 259,148,327 - 259,148,327
Excess purchase price over book value on acquired assets 19,979,000 - 19,979,000
Subtotal 4,060,832,804 - 4,060,832,804
Total Property, Plant & Equipment & CIP 4,424,763,639$ 27,862,355$ 4,452,625,994$
2020-21 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 17,390,000 - 0.00%17,390,000
2014A COP 7,850,000 - 0.00%7,850,000
2015A COP - - 0.00%-
2016A COP 4,635,000 - 0.00%4,635,000
2017A COP 555,000 - 0.00%555,000
2018A CANs - - 0.00%-
Subtotal Principal Payments 30,430,000 - 0.00% 30,430,000
Interest Expense by Debt Issue:
2010A BABs 2,897,639 992,097 34.24%1,905,542
2010C BABs 6,523,780 2,233,718 34.24%4,290,062
2011A COP 3,348,350 837,175 25.00%2,511,175
2012A COP 3,735,900 934,050 25.00%2,801,850
2012B COP 1,145,650 286,325 24.99%859,325
2014A COP 3,196,500 799,150 25.00%2,397,350
2015A COP 6,375,500 1,593,850 25.00%4,781,650
2016A COP 6,756,550 1,689,175 25.00%5,067,375
2017A COP 3,318,500 829,650 25.00%2,488,850
2018A CANs 5,110,000 1,277,500 25.00%3,832,500
Subtotal Interest Expense 42,408,369 11,472,690 27.05% 30,935,679
Total Debt Service 72,838,369$ 11,472,690$ 15.75% 61,365,679$
Section 4 - Page 1
Capital Facilities Budget Review
Capital Assets Schedule & Debt Service Budget Review
Debt Service Budget Review
FY 2020-21 First Quarter Financial Report
This Page Intentionally Left Blank
Section 4 - Page 2
General Liability and Property Fund Budget Review
For the Three Months Ended September 30, 2020
Actual Actual
2020-21 Through Through
Budget 09/30/20 09/30/19
Revenues:
In-Lieu Premiums 1,471,000$ 551,241$ 37.47%919,759$ 429,999$ 121,242$
Miscellaneous Other Revenue - - N/A - 135,416 (135,416)
Service Department Allocations - 1,776 N/A (1,776) (774) 2,550
Total Revenues 1,471,000 553,017 37.59%917,983 564,641 (11,624)
Expenses:
Benefits/Claims 40,000 - 0.00%40,000 - -
Legal Services 40,000 - 0.00%40,000 - -
Professional Services 20,000 - 0.00%20,000 - -
Subtotal 100,000 - 0.00%100,000 - -
Policy Premium Expense 1,980,000 485,048 24.50%1,494,952 354,732 130,316
Total Expenses 2,080,000 485,048 23.32%1,594,952 354,732 130,316
Excess Revenue (Expense)(609,000) 67,969 (676,969)$ 209,909 (141,940)
Beginning Reserves 98,609,000 98,648,623 55,389,842 43,258,781
Ending Reserves 98,000,000$ 98,716,592$ 55,599,751$ 43,116,841$
(1) Beginning reserves were increased by $43 million to align with approved catastrophic loss, or self-insurance criterion for
non-reimbursed costs.
09/30/20 Budget (Decrease)
Self Insurance Budget Review
Percent
of Budget Remaining
Through 2020-21 Increase
(1)(1)
Section 5 - Page 1
FY 2020-21 First Quarter Financial Report
Workers' Compensation Fund Budget Review
For the Three Months Ended September 30, 2020
Actual Actual
2020-21 Through Through
Budget 09/30/20 09/30/20 09/30/19
Revenues:
In-Lieu Premiums 518,800$ 129,700$ 25.00% 389,100$ 195,000$ (65,300)$
Service Department Allocations 110,000 22,425 20.39% 87,575 27,174 (4,749)
Total Revenues 628,800 152,125 24.19%476,675 222,174 (70,049)
Expenses:
Benefits/Claims 420,000 123,769 29.47% 296,231 159,525 (35,756)
Legal Services 90,000 13,759 15.29% 76,241 38,978 (25,219)
Professional Services 50,000 - 0.00% 50,000 11,417 (11,417)
Subtotal 560,000 137,528 24.56%422,472 209,920 (72,392)
Policy Premium Expense 220,000 51,192 23.27%168,808 54,441 (3,249)
Total Expenses 780,000 188,720 24.19%591,280 264,361 (75,641)
Excess Revenue (Expense)(151,200) (36,595) (114,605)$ (42,187) 5,592
Beginning Reserves 2,151,200 2,235,687 2,036,708 198,979
Ending Reserves 2,000,000$ 2,199,092$ 1,994,521$ 204,571$
Budget (Decrease)
Percent
of Budget Remaining
Through 2020-21 Increase
Section 5 - Page 2
OCSD ♦ P.O. Box 8127 ♦ Fountain Valley, CA 92728-8127 ♦ (714) 962-2411
October 31, 2020
STAFF REPORT
Quarterly Treasurer’s Report
For the Period Ended September 30, 2020
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 September 30, 2020. The Liquid Operating Monies portfolio, with an
average maturity of 117 days, consists entirely of high quality fixed income investments
consistent with the OCSD’s investment policy.
Portfolio Performance Summary
The following table presents a performance summary of OCSD's portfolios as compared
to their benchmarks as of September 30, 2020.
Quarterly Treasurer’s Report
For the Period Ended September 30, 2020
Page 2 of 4
(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.
Quarter
Ending
Liquid
Operating
Monies ($M)
Long-Term
Operating
Monies ($M)
30 Dec 19 175.6 579.9
31 Mar 20 113.5 590.3
30 Jun 20 178.6 623.3
30 Sep 20 128.7 625.2
Portfolio Performance Summary As of September 30, 2020
Liquid Operating Monies (%)Long-Term Operating Monies (%)
Total Rate of Return Benchmark(1) Total Rate of Return Benchmark(1)
3 Months 0.04 0.04 0.29 0.24
6 Months 0.11 0.06 1.62 1.27
9 Months 0.83 0.64 4.16 4.27
12 Months 1.34 1.10 4.67 4.73
Annualized Since inception 30 Nov 2014 1.16 1.03 2.32 2.29
Market Value $128.7 M $625.2 M
Average Quality “AAA”/”Aaa” “AA”/”Aa1”
Current Yield (%) 0.5 2.0
Estimated Yield to Maturity (%) 0.2 0.3
Quarterly Deposits (Withdrawals) ($50.0 M) $0.0 M
Estimated Annual Income $0.2 M $0.1 M
Quarterly Treasurer’s Report
For the Period Ended September 30, 2020
Page 3 of 4
Orange County Sanitation District’s Investment Account Balances as of September 30, 2020
Investment Accounts
Book Balances
September 30, 2020
Estimated
Yield (%)
State of California LAIF
Banc of California – General
Banc of California – Sweep
Banc of California – Workers Compensation
Banc of California – Property, Liability Claim, Exp
Union Bank – Mount Langley
Union Bank – Bandilier
Chandler/U.S. Bank – Short-Term Portfolio
Chandler/U.S Bank – Long-Term Portfolio
Petty Cash
BNY Mellon OCIP Reserve
TOTAL
Debt Service Reserves w/Trustees
$43,123,251
3,000,000
35
86,710
50,000
252,186
536,391
128,685,054
625,212,761
6,500
500,444
$801,453,332
$129
0.69
0.55
0.32
0.55
0.55
0.70
0.70
0.17
0.26
N/A
0.00
0.27
0.04
Orange County Sanitation District’s Cost of Funds on Debt Issues as of September 30, 2020
Cost of Funds
Issue Description
Outstanding
COP Balance
Annual
Interest
Rate (%)
2010A Fixed
2010C Fixed
2011A Fixed
2012A Fixed
2012B Fixed
2014A Fixed
2015A Fixed
2016A Fixed
2017A Fixed
2018A Fixed
TOTAL
Weighted Avg. Cost of Funds
80,000,000
157,000,000
75,370,000
100,645,000
25,560,000
63,930,000
127,510,000
141,465,000
66,370,000
102,200,000
$940,050,000
3.68
4.11
2.61
3.54
1.50
2.34
3.30
3.02
2.55
2.02
3.09
Quarterly Treasurer’s Report
For the Period Ended September 30, 2020
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
1
September 30, 2020
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
US equities experienced a moderate selloff in September (with the S&P 500 index down 3.9% month-over-month) and
investment grade corporate credit spreads widened modestly (based on the ICE BofA US Corporate Index). In our view,
the recent repricing of risk assets has been rational and consistent with the evolving economic and political backdrop. The
economy has improved significantly from the depths of the pandemic crisis earlier this year, but the recovery is losing
steam. We continue to believe the outlook for the economy hinges largely on the course of the pandemic, the timing and
amount of additional fiscal relief, and the timeline for a vaccine. While we remain optimistic about the progress toward a
vaccine, we are seeing a resurgence of the virus in some locations and negotiations in Congress over a Phase 4 fiscal relief
package remain at a stalemate. While we have a high degree of confidence that another round of fiscal stimulus will
ultimately be passed, the timeline has been pushed out and the chances of getting something done before the November
election have dimmed. This may not bode well for the fourth quarter and we anticipate near-term economic data may
soften. We believe financial markets are potentially poised for increased volatility through year-end.
The Federal Open Market Committee (FOMC) kept monetary policy unchanged in September with the fed funds target
rate in a range of 0.0% to 0.25%. Monetary policy remains highly accommodative and policymakers remain dovish. The
Fed’s balance sheet has grown to over $7.0 trillion from about $4.2 trillion prior to the pandemic, and the Fed has indicated
it will continue to use its balance sheet to support smooth financial market functioning, as needed. In the September
policy statement, the FOMC noted that inflation continues to run below its 2.0% target, as weaker demand and lower oil
prices are holding down consumer prices. Longer-term, the FOMC will allow inflation to run above 2.0% for some period
of time before it looks to tighten policy, which implies the fed funds target rate will remain anchored near zero for years.
The Fed’s summary of economic projections signals that the target fed funds rate will remain unchanged through at least
2023.
The Treasury yield curve was little changed in September on a month-over-month basis, following moderate curve
steepening in August. In the first week of October, the yield curve has steepened further, driven by an increase in longer-
dated Treasury yields.
2
At September month-end, Treasury yields were much lower on a year-over-year basis. The 3-month T-bill yield was down
172 basis points, the 2-year Treasury yield was down 150 basis points, and the 10-Year Treasury yield was down 98 basis
points, year-over-year. Yields declined precipitously in March 2020, with the Fed cutting rates by a total of 150 basis points
and a flight to safe-haven assets driving down yields across the curve. The Fed has signaled plans to keep the front end of
the Treasury yield curve anchored near zero for at least the next few years. In the past few months, the Treasury yield
curve has steepened, which we believe has been driven by a flood of new issuance as well as rising inflation expectations.
Consumer Prices
The Consumer Price Index (CPI) was up 1.3% year-over-year in August, versus up 1.0% in July. Core CPI (CPI less food and
energy) was up 1.7% year-over-year in August, versus up 1.6% in July. The Personal Consumption Expenditures (PCE) index
was up 1.4% year-over-year in August, versus up 1.1% year-over-year in July. Core PCE, which is the Fed's primary inflation
gauge, was up 1.6% year-over-year in August, versus up 1.4% year-over-year in July. Pricing pressures are increasing but
remain below the Fed's inflation target.
Retail Sales
Retail sales were softer than expected in August and sales for July were revised down. On a year-over-year basis, retail
sales were up 2.6% in August, versus up 2.4% in July. On a month-over-month basis, retail sales were up just 0.6% in
August, following a 0.9% increase in July. Control group retail sales fell 0.2% in August, well below expectations for a 0.5%
increase.
Labor Market
U.S. nonfarm payrolls were lower than expected, up 661,000 in September versus expectations of 859,000. The
unemployment rate declined to 7.9% in September from 8.4% in August. The decline in the unemployment rate was better
than expected, however, it was partially driven by a decline in the labor participation rate to 61.4% in September from
61.7% in August. The labor participation rate improved modestly after plunging to 60.2% in April, but remains near the
lowest levels since the 1970’s. Nearly 4.5 million people have dropped out of the labor force since January, and 12.6 million
people in the labor force were unemployed in September, according to the U.S. Bureau of Labor Statistics household
survey. Workers who classified themselves as employed but absent from work in the September survey understated the
unemployment rate by about 0.4%. The U-6 underemployment rate, which includes those who are marginally attached to
the labor force and employed part time for economic reasons, remained high but eased to 12.8% in September from 14.2%
in August.
Housing Starts
Total housing starts fell 5.1% in August to an annual pace of 1,416,000. Single family starts rose 4.1% to an annualized rate
of 1,021,000, while multi-family starts declined 22.7% to an annualized rate of 395,000. On a year-over-year basis, total
housing starts were up 2.8% in August.
3
TREASURY YIELDS 9/30/2020 6/30/2020 CHANGE
3 Month 0.09 0.13 (0.04)
2 Year 0.13 0.15 (0.02)
3 Year 0.16 0.17 (0.01)
5 Year 0.28 0.29 (0.01)
7 Year 0.47 0.49 (0.02)
10 Year 0.68 0.66 0.02
30 Year 1.46 1.41 0.05
4
Performance Attribution
Long-Term Portfolio
The portfolio generated a positive absolute and relative total return during the quarter of 0.29% compared to the 0.24%
return of the ICE Bank of America Merrill Lynch 1-5 Year US Corporate and Government AAA-A Index. Asset prices
improved on a quarter-over-quarter basis as the economy continues to reopen, stimulating growth, despite the reality the
overall strength of the economy remains well below pre-pandemic levels. The asset allocation of the portfolio continues
to have a higher risk profile than the benchmark, primarily expressed via the above benchmark allocations to the Agency
and Corporate sectors of the market. The out of benchmark exposure to the Asset Backed sector was also additive to the
relative performance of the portfolio during the quarter. The Chandler team remains comfortable with the mix of
securities in the portfolio and will be looking to continue to add attractively priced securities consistent with our asset
allocation and term structure objectives in the coming quarters.
Several securities were purchased across the Agency, Asset Backed and Corporate sectors of the market to keep the
portfolio structure and duration in line with Chandler targets. The purchased securities ranged in maturity from July 2012
to September 2025. Two securities were sold and several matured to facilitate the new holdings in the portfolio. The
sector allocation was relatively stable. Some of the notable changes include the 4.2% increase in the Agency sector, to
34.3% of the portfolio, partially offset by the 1.8% decline in the US Treasury allocation, to 32.5% of the portfolio. The
duration of the portfolio was close to unchanged, currently 2.52 compared to 2.55 at the end of the prior quarter.
Monetary policy is poised to stay highly accommodative over an intermediate time horizon and the Chandler team
anticipates keeping the duration close to the benchmark in coming quarters.
Liquid Portfolio
The Liquidity Portfolio generated a total return of 0.04% during the quarter compared to the 0.04% return of the ICE Bank
of America Merrill Lynch 3 Month Treasury Bill Index. Multiple securities were purchased across the Treasury, Commercial
Paper and Corporate sectors of the market to keep the portfolio structure consistent with Chandler’s objectives for the
strategy. The purchased securities ranged in maturity from November 2020 to July 2021. One security was called, many
matured and $50 million was withdrawn from the portfolio during the quarter. The sector allocation was stable despite
the $50 million withdrawal out of the portfolio. Exposure to the Agency sector remains low with short maturity discount
notes not offering much in the way of relative value compared to the Treasury sector. The duration of the portfolio was
relatively stable, contracting to 0.32 years compared to 0.35 years at the end of the prior quarter. The Chandler team will
continue to invest the portfolio consistent with the forecasted liquidity needs of the district.
5
Economic Outlook
The impact of the coronavirus pandemic continues to influence the direction of asset prices and the ultimate trajectory of
the recovery. Initially the virus imposed a synchronized hit to the global economy however due to varying policy responses
and changes in behavior going forward the Chandler team expects the recovery to be de-synchronized across regions,
industries and individuals. The strict lockdowns experienced earlier in the year are very unlikely to be re-instituted on a
national level due to both healthcare systems being much better prepared for COVID patients and the widely held
acknowledgement lockdowns should be avoided at all costs. The degree of uncertainty related to the coronavirus
continues to dissipate. Investment grade and high yield bond spreads tightened, and equity indices posted positive
returns, however the rate of change in both broad asset classes slowed in Q3 compared to Q2. Economic growth will
remain below pre-pandemic levels until a vaccine for the coronavirus is widely available and consumer behavior evolves.
We expect a vaccine to be available in the first half of 2021 and this view is largely reflected in current asset prices in
Chandler’s judgement.
Economic data points improved during the quarter however many metrics remains well short of pre-pandemic valuations.
The unemployment rate continued to improve, coming in at 7.9% in September, compared to 11.1% at the end of June
however still well above the 3.5% rate at the end of December 2019. The three-month and six-month moving averages
on non-farm payrolls are currently 1.30 million and -1.56 million, respectively, highlighting the severe loss of jobs due to
the pandemic and the tentative recovery in the job market. Weekly and continuing jobless are trending lower, a positive,
but the lack of additional fiscal stimulus has negatively impacted the rate of improvement with both metrics remaining at
stressed levels. Risk assets have largely ignored the lack of progress on additional fiscal stimulus to support the recovery
as most investors believe the challenging political environment (late in the Presidential election cycle) is a contributing
factor to the lack of progress. Post the election results the Chandler team expects additional fiscal stimulus to be
implemented to further support the economic recovery.
Monetary policy remains highly stimulative, and the Federal Reserve took further actions during the quarter to solidify
the view rates will remain low for the foreseeable future. Notably the Federal Reserve will no longer view a low
unemployment rate as a harbinger to inflation risks, and is poised to allow inflation to be above the 2% threshold for a
period of time before adjusting policy tighter to make up for the periods of inflation being below 2%. The Federal Reserve
continues to emphasize they will do whatever it takes to support the recovery and we expect the unconventional policy
tools implemented at the height of the pandemic to remain in place for an extended time period to support the recovery.
In the short-to-intermediate term investment grade spreads will be well supported as investors are comfortable with
belief the Federal Reserve will step in to support markets (via asset purchases) if spreads become dislocated. In a welcome
development for the Federal Reserve, ten year TIPS spreads moved higher by 29 basis points, closing the quarter at 1.63%,
however until the breakeven rate is above 2.3% for an extended period of time the Federal Reserve will remain content
to keep front end rates pegged at zero. Treasury yields were stable during the quarter; however, we expect volatility in
rates further out the curve in 2021 as the impact of the outsized fiscal and monetary stimulus, as well as the path of the
global economic recovery, will influence valuations.
6
Strategy
Strategy highlights for the Long-Term Portfolio in coming months:
• Focus on adding securities with attractive relative value which is becoming challenging in several sectors due to
the outsized influence of Federal Reserve actions to stabilize markets earlier in the year.
o The banking sector continues to profile as attractive in the Chandler teams view and we will look to
continue to optimize the mix of securities in the sub sector.
o Look to add select Asset Backed securities in the new issue market provided spreads remain at
reasonable valuations. Look to avoid the securities trading at extremely tight valuations.
• Although spreads in the Agency sector grinded tighter during the quarter we still find the sector attractive,
particularly compared to the highest quality segments of the Corporate market. We will continue to be active in
the new issue market provided spreads remain in the current range.
• Interest rates are poised to remain low over an intermediate time horizon, particularly within the 1-5 year
maturity profile of the strategy, thus the duration of the portfolio will remain consistent with the benchmark in
coming quarters.
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.
7
Compliance Issues
Category Standard Comment
Treasury Issues 10% minimum; 5 years max maturity Complies*
U.S. Agencies 20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 5 years max maturity Complies
Supranational Obligations
"AA" rated or better by a NRSRO; 30% maximum; 5 years max maturity; U.S. dollar denominated senior unsecured unsubordinated obligations issued or
unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-
American Development Bank ("IADB")
Complies
Corporate Medium Term Notes "A" rated or better long term debt by a NRSRO; 30% maximum; 5% max issuer; 5 years max maturity; Issued by corporations organized and operating
within the U.S. or issued by depository institutions licensed by the U.S. or any state and operating within the U.S.Complies
Municipal Securities "A" rated or higher by a NRSRO; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% maximum; 5% max issuer; 5 years max
maturity Complies
Mortgage-Backed Securities/ Collateralized
Mortgage Obligations/ Asset-Backed
Securities
"AA" rated or better by a NRSRO; 20% maximum (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 5 years max maturity Complies*
Negotiable Certificates of Deposit (NCD)"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 years max maturity Complies
Certificates of Deposit 5% max issuer; 5 years max maturity; Secured/ collateralized Complies
Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% maximum; 5% max issuer; 180 days max maturity Complies
Commercial Paper A-1 rated or better by a NRSRO; "A" rated or better long term debt issuer by a NRSRO; Issuer is a corporation organized and operating in the U.S. with assets
> $500 million; 25% maximum; 5% max issuer; 10% max of the outstanding commercial paper of any single issuer; 270 days max maturity Complies
Mutual Fund & Money Market Mutual
Fund
Highest rating or "AAA" rated by two NRSROs; SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% maximum in Mutual
Funds; 10% per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds; 20% max of OCSD's surplus money Complies
Repurchase Agreements 102% collateralization Complies
Reverse Repurchase Agreements 5% maximum, 90 days max maturity Complies
Local Agency Investment Fund (LAIF)No more than the lesser of 15% of the portfolio or the statutory maximum invested in LAIF; Not used by investment adviser; Investment of OCSD funds in
LAIF shall be subject to investigation and due diligence prior to investing Complies
OCCIP 15% maximum; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in
OCCIP shall be subject to investigation and due diligence prior to investing Complies
Prohibited Mortgage Derivatives, which include interest-only payments (IOs) and principal-only payments (POs); Inverse floaters, and RE-REMICS (Real Estate Mortgage
Investment Conduits) Complies
Avg Duration Not to exceed 60 months - (80% to 120% of the benchmark)Complies
Max Per Holding 5% max of the total debt outstanding of any issuer per individual holding Complies
Max Per Issuer 5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Fund)Complies
Maximum Maturity 5 years maximum maturity Complies*
Orange County Sanitation District Long Term
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
*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.
Category Standard Comment
Treasury Issues 10% minimum; 1 year max maturity CompliesU.S. Agencies 20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 1 year max maturity Complies
Supranational Obligations "AA" rated or better by a NRSRO; 30% maximum; 1 year max maturity; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-American Development Bank ("IADB") Complies
Corporate Medium Term Notes "A" rated or better long term debt by a NRSRO; 30% maximum; 5% max issuer; 1 year max maturity; Issued by corporations organized and operating within the U.S. or issued by depository
institutions licensed by the U.S. or any state and operating within the U.S.Complies
Municipal Securities "A" rated or higher by a NRSRO; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% maximum; 5% max issuer; 1 year max maturity Complies
Mortgage-Backed Securities/ Collateralized
Mortgage Obligations/ Asset-Backed
Securities
"AA" rated or better by a NRSRO; 20% maximum (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 1 year max maturity Complies
Negotiable Certificates of Deposit (NCD)"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 year max maturity Complies
Certificates of Deposit 5% max issuer; 1 year max maturity; Secured/collateralized CompliesBanker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% maximum; 5% max issuer; 180 days max maturity Complies
Commercial Paper A-1 rated or better by a NRSRO; "A" rated or better long term debt issuer by a NRSRO; Issuer is a corporation organized and operating in the U.S. with assets > $500 million; 25% maximum; 5% max issuer; 10% max of the outstanding commercial paper of any single issuer; 270 days max maturity Complies
Mutual Fund & Money Market Mutual Fund Highest rating or "AAA" rated by two NRSROs; SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% maximum in Mutual Funds; 10% per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds; 20% max of OCSD's surplus money Complies
Repurchase Agreements 102% collateralization CompliesReverse Repurchase Agreements 5% maximum, 90 days max maturity Complies
Local Agency Investment Fund (LAIF)No more than the lesser of 15% of the portfolio or the statutory maximum invested in LAIF; Not used by investment adviser; Investment of OCSD funds in LAIF shall be subject to investigation and due diligence prior to investing Complies
OCCIP 15% maximum; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP shall be subject to investigation
and due diligence prior to investing Complies
Prohibited Mortgage Derivatives, which include interest-only payments (IOs) and principal-only payments (POs); Inverse floaters, and RE-REMICS (Real Estate Mortgage Investment Conduits) Complies
Avg Duration Not to exceed 180 days Complies
Max Per Holding 5% max of the total debt outstanding of any issuer per individual holding Complies
Max Per Issuer 5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Fund)Complies
Maximum Maturity 1 year maximum maturity Complies
Orange County Sanitation District Liquid
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
8
Defaulted Bonds
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 CompliesU.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 3 NRSROS; 10% maximum; 5% max issuer; 5 years maximum maturity CompliesAsset Backed/ CMOs/ Mortgage-backed "AA" or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; 20% maximum; 5% max issuer (excluding MBS/govt agency); 5 years max maturity Complies
Negotiable CDs "A" or better on its long term debt by 1 of 3 NRSROs ; "A1/P1" or highest short term ratings by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity Complies
CDs/ TDS 5% max issuer; 5 years max maturity CompliesBanker’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; 270 days max maturity CompliesMoney Market Fund Highest rating by 2 of 3 NRSROs; 20% maximum; 10% max issuer CompliesRepurchase Agreements 102% collateralization Complies
Reverse Repurchase Agreements 5% maximum, 90 days max maturity CompliesLAIFNot used by investment adviser CompliesAvg Duration Not to exceed 60 months - (80% to 120% of the benchmark)Complies
Maximum Maturity 5 years maximum maturity Complies
OCSD Lehman Exposure
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
* Account holds $2 million face value (cusip 525ESC0Y6) and $600,000 face value (cusip 525ESC1B7) of defaulted Lehman Bros Holdings that were purchased by the previous manager. Complied at time of purchase.
OCSD Lehman Exposure -Account #10284
9
Ratings
10
HISTORICAL YIELD CURVE
ACCOUNT SUMMARY
Beg. Values
as of 8/31/20
End Values
as of 9/30/20
Market Value 128,570,084 128,521,870
Accrued Interest 83,431 145,679
Total Market Value 128,653,515 128,667,549
Income Earned 69,269 17,527
Cont/WD 0
Par 128,528,157 128,270,536
Book Value 128,561,308 128,516,587
Cost Value 128,578,226 128,542,215
TOP ISSUERS
Government of United States 77.3%
Federal Home Loan Bank 9.9%
Toyota Motor Corp 2.4%
First American Govt Obligation 2.3%
Toronto Dominion Holdings 1.4%
Royal Bank of Canada 1.2%
Charles Schwab Corp/The 1.1%
Apple Inc 0.9%
Total 96.4%
PORTFOLIO CHARACTERISTICS
Average Modified Duration 0.32
Average Coupon 0.54%
Average Purchase YTM 0.17%
Average Market YTM 0.17%
Average S&P/Moody Rating AAA/Aaa
Average Final Maturity 0.32 yrs
Average Life 0.10 yrs
CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION
Portfolio Summary
As of September 30, 2020
Orange County Sanitation District Liquid
Account #10282
PERFORMANCE REVIEW
Annualized
TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS 11/30/2014
Orange County Sanitation District Liquid 0.01% 0.04% 0.83% 1.34% 1.92% 1.82% 1.32% N/A 1.16%
ICE BAML 3-Month US Treasury Bill Index 0.01% 0.04% 0.64% 1.10% 1.74% 1.69% 1.20% N/A 1.03%
Execution Time: 10/1/2020 6:48:51 PMChandler Asset Management - CONFIDENTIAL Page 1
ACCOUNT SUMMARY
Beg. Values
as of 8/31/20
End Values
as of 9/30/20
Market Value 622,461,668 622,737,098
Accrued Interest 2,645,806 2,480,511
Total Market Value 625,107,474 625,217,609
Income Earned 1,001,510 983,134
Cont/WD 57,215
Par 597,424,840 598,650,838
Book Value 598,312,851 599,519,389
Cost Value 597,583,821 598,796,201
TOP ISSUERS
Government of United States 32.5%
Federal National Mortgage Assoc 15.2%
Federal Home Loan Bank 9.2%
Federal Home Loan Mortgage Corp 8.0%
Intl Bank Recon and Development 2.7%
Inter-American Dev Bank 2.4%
Federal Farm Credit Bank 2.3%
Honda ABS 1.6%
Total 73.7%
PORTFOLIO CHARACTERISTICS
Average Modified Duration 2.52
Average Coupon 1.97%
Average Purchase YTM 1.97%
Average Market YTM 0.26%
Average S&P/Moody Rating AA/Aa1
Average Final Maturity 2.74 yrs
Average Life 2.60 yrs
CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION
Portfolio Summary
As of September 30, 2020
Orange County Sanitation District Long Term
Account #10268
PERFORMANCE REVIEW
Annualized
TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS 11/30/2014
Orange County Sanitation District Long Term 0.01% 0.29% 4.16% 4.67% 5.09% 3.35% 2.51% N/A 2.32%
ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index 0.00% 0.24% 4.27% 4.73% 5.26% 3.34% 2.41% N/A 2.29%
ICE BAML US 1-5 Yr US Corp/Govt Rated AAA-BBB Indx 0.00% 0.42% 4.26% 4.82% 5.42% 3.47% 2.60% N/A 2.44%
Execution Time: 10/1/2020 6:47:12 PMChandler Asset Management - CONFIDENTIAL Page 1
Par Value Book Value Market Value Rate Yield
Balance
September 1, 2020 $71,423,251 $71,423,251 $71,423,251 0.69 0.69
Deposits:
- - - 0.69 0.69
Total Deposits - - - 0.69 0.69
Quarterly
Interest
Distribution - - - 0.69 0.69
Withdrawals:
9/2/2020 (4,200,000) (4,200,000) (4,200,000) 0.69 0.69
9/8/2020 (2,200,000) (2,200,000) (2,200,000) 0.69 0.69
9/16/2020 (8,300,000) (8,300,000) (8,300,000) 0.69 0.69
9/22/2020 (4,500,000) (4,500,000) (4,500,000) 0.69 0.69
9/23/2020 (4,600,000) (4,600,000) (4,600,000) 0.69 0.69
9/30/2020 (4,500,000) (4,500,000) (4,500,000) 0.69 0.69
Total Withdrawals (28,300,000) (28,300,000) (28,300,000) 0.69 0.69
Balance
September 30, 2020 $43,123,251 $43,123,251 $43,123,251 0.69 0.69
Orange County Sanitation District
Investment Transactions and Balances in the
State of California Local Agency Investment Fund
September 30, 2020
U.S. Bank
Asset Summary - Liquid
As of 09/30/2020
Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
COMMERCIAL PAPER 1,500,000.0000 1,498,721.67 1,499,685.00 1.17 963.33
FIRST AMERICAN SHORT TERM FDS 2,920,536.2900 2,920,536.29 2,920,536.29 2.27 -
U. S. GOVERNMENT 88,250,000.0000 88,172,336.26 88,224,727.50 68.64 52,391.24
Cash Equivalents Total 92,670,536.2900 92,591,594.22 92,644,948.79 72.08 53,354.57
Fixed Income
CONSUMER DISCRETIONARY 1,500,000.0000 1,523,295.00 1,523,490.00 1.19 195.00
CONSUMER STAPLES 750,000.0000 768,877.50 761,100.00 0.59 (7,777.50)
FINANCE 3,545,000.0000 3,600,897.05 3,570,653.75 2.78 (30,243.30)
FOREIGN FIXED INCOME 2,750,000.0000 2,785,332.50 2,769,870.00 2.15 (15,462.50)
INDUSTRIAL 600,000.0000 607,086.00 606,312.00 0.47 (774.00)
INFORMATION TECHNOLOGY 1,155,000.0000 1,182,327.30 1,172,209.50 0.91 (10,117.80)
SHORT TERM FUNDS 1,500,000.0000 1,500,000.00 1,504,920.00 1.17 4,920.00
U. S. GOVERNMENT 11,000,000.0000 11,191,406.26 11,186,600.00 8.70 (4,806.26)
US AGY - LONG TERM ISSUES 12,800,000.0000 12,791,399.33 12,799,030.00 9.96 7,630.67
Fixed Income Total 35,600,000.0000 35,950,620.94 35,894,185.25 27.92 (56,435.69)
Grand Total 128,270,536.2900 128,542,215.16 128,539,134.04 100.00 (3,081.12)
1 of 1
U.S. Bank
Asset Summary - Long-Term
As of 09/30/2020
Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
FIRST AMERICAN SHORT TERM FDS 946,228.2600 946,228.26 946,228.26 0.15 -
Cash Equivalents Total 946,228.2600 946,228.26 946,228.26 0.15 -
Fixed Income
CONSUMER DISCRETIONARY 9,064,000.0000 9,174,701.78 9,534,355.32 1.53 359,653.54
CONSUMER STAPLES 3,880,000.0000 3,878,991.40 4,191,874.40 0.67 312,883.00
ENERGY 9,000,000.0000 8,942,542.40 9,285,555.00 1.49 343,012.60
FINANCE 64,764,000.0000 63,957,544.03 65,499,253.38 10.52 1,541,709.35
FOREIGN CORPORATE 14,500,000.0000 14,676,215.00 15,591,615.00 2.50 915,400.00
HEALTH CARE 2,000,000.0000 1,948,640.00 2,132,460.00 0.34 183,820.00
INDUSTRIAL 4,410,000.0000 4,388,275.50 4,586,341.10 0.74 198,065.60
INFORMATION TECHNOLOGY 23,715,000.0000 23,631,389.55 24,817,032.10 3.99 1,185,642.55
INVESTMENT GRADE-MUNI REVENUE 1,800,000.0000 1,800,000.00 1,815,154.00 0.29 15,154.00
MTG RELATED SECURITY 30,904,780.0900 30,967,547.76 31,377,766.61 5.04 410,218.85
SUPRANATIONAL 36,215,000.0000 35,935,625.05 36,846,449.25 5.92 910,824.20
U. S. GOVERNMENT 182,505,221.9400 181,010,078.18 190,310,265.23 30.56 9,300,187.05
U.S. GOVERNMENT TIPS 11,346,608.0000 11,201,888.09 12,003,917.00 1.93 802,028.91
US AGY - LONG TERM ISSUES 206,200,000.0000 207,649,063.05 213,788,645.85 34.33 6,139,582.80
Fixed Income Total 600,304,610.0300 599,162,501.79 621,780,684.24 99.85 22,618,182.45
Grand Total 601,250,838.2900 600,108,730.05 622,726,912.50 100.00 22,618,182.45
1 of 1
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
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
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.
No Transactions This Period
Accrued Estimated Market
Shares/Par Value Asset Description Market Price Market Value Cost Average Cost Income Income Yield
Realized
Transaction Date Transaction Description Income Principal Cost Gains/Losses
Statement Period 09/01/2020 Through 09/30/2020
Statement of Assets Held by Asset Classification
Statement of Transactions by Transaction Date
Account 300282 Base Currency = USD
OCSD LIBERTY MUTUAL
499,000.000 UNITED STATES TREASURY BILL 99.94800 498,740.52 498,369.32 99.87361 0.00 0.00 0.00%
CUSIP: 9127962F5
MATURITY DATE: 03/25/2021
RATE: 0.000%
CASH BALANCE 1,703.59 1,703.59 0.00000 0.00 0.00 0.00%
Total Market Value Plus Total Accrued Income 500,444.11
Cumulative realized capital gain and loss position from 12/31/2019 for securities held in principal of account:
Short Term: 80,464.87 * Long Term: 0.00 *
* The above gain and loss position does not include transactions where tax cost information is incomplete or unavailable.
CASH AND SHORT TERM
Total CASH AND SHORT TERM 500,444.11 500,072.91 0.00 0.00 0.00%
ACCOUNT TOTALS 500,444.11 500,072.91 0.00 0.00 0.00%
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U.S. Bank
Investment Listing - Yield
As of 09/30/2020
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 0.0360% 2,920,536.2900 1.00 2,920,536.29 2,920,536.29
Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 0.0360% 946,228.2600 1.00 946,228.26 946,228.26
Cash Equivalents 89233GLP9 TOYOTA MOTOR CREDIT CO C P 11/23/20 0.0000% 1,500,000.0000 99.98 1,498,721.67 1,499,685.00
Cash Equivalents 912796UC1 U S TREASURY BILL 1/28/21 0.0938% 58,250,000.0000 N/A N/A 99.97 58,193,363.48 58,230,777.50
Cash Equivalents 912796XE4 U S TREASURY BILL 2/25/21 0.0963% 10,000,000.0000 N/A N/A 99.96 9,991,378.33 9,995,900.00
Cash Equivalents 912796TN9 U S TREASURY BILL 10/08/20 0.0500% 5,000,000.0000 N/A N/A 100.00 4,997,484.38 4,999,950.00
Cash Equivalents 9127962S7 U S TREASURY BILL 10/22/20 0.0800% 5,000,000.0000 N/A N/A 100.00 4,997,362.85 4,999,750.00
Cash Equivalents 912796TP4 U S TREASURY BILL 11/05/20 0.0813% 5,000,000.0000 N/A N/A 99.99 4,997,375.00 4,999,600.00
Cash Equivalents 912796TY5 U S TREASURY BILL 12/31/20 0.0950% 5,000,000.0000 N/A N/A 99.98 4,995,372.22 4,998,750.00
Fixed Income 00440EAT4 ACE INA HOLDINGS 2.300% 11/03/20 2.2968% 500,000.0000 A3 A 100.14 503,140.00 500,705.00
Fixed Income 00440EAP2 ACE INA HOLDINGS 2.700% 3/13/23 2.5661% 2,000,000.0000 A3 A 105.22 1,937,000.00 2,104,340.00
Fixed Income 00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 2.7485% 4,169,000.0000 A3 A 104.60 4,232,453.17 4,360,857.38
Fixed Income 02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 2.2679% 1,219,000.0000 A3 A- 105.82 1,213,843.63 1,289,982.37
Fixed Income 02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 3.2000% 845,000.0000 A3 A- 107.81 843,538.15 911,002.95
Fixed Income 02665WCQ2 AMERICAN HONDA MTN 3.625% 10/10/23 3.3284% 2,000,000.0000 A3 A- 108.91 1,998,320.00 2,178,220.00
Fixed Income 03215PFN4 AMRESCO 1.12443% 6/25/29 1.2028% 119,021.6400 N/A A+ 93.49 89,377.81 111,269.76
Fixed Income 037833BS8 APPLE INC 2.250% 2/23/21 2.2343% 4,000,000.0000 AA1 AA+ 100.70 4,050,840.00 4,028,160.00
Fixed Income 037833AR1 APPLE INC 2.850% 5/06/21 2.8082% 1,155,000.0000 AA1 AA+ 101.49 1,182,327.30 1,172,209.50
Fixed Income 037833CU2 APPLE INC 2.850% 5/11/24 2.6413% 3,000,000.0000 AA1 AA+ 107.90 3,017,760.00 3,237,090.00
Fixed Income 06051GHF9 BANK OF AMERICA 3.550% 3/05/24 3.3335% 6,675,000.0000 A2 A- 106.50 6,770,625.75 7,108,608.00
Fixed Income 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 2.5268% 2,500,000.0000 A1 A 102.90 2,504,475.00 2,572,425.00
Fixed Income 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 2.8005% 2,500,000.0000 A1 A 105.34 2,489,555.00 2,633,425.00
Fixed Income 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 2.6106% 2,500,000.0000 AA2 AA 105.34 2,440,950.00 2,633,475.00
Fixed Income 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 2.8770% 4,000,000.0000 AA2 AA 104.27 4,131,120.00 4,170,960.00
Fixed Income 09247XAL5 BLACKROCK INC 3.500% 3/18/24 3.1760% 1,000,000.0000 AA3 AA- 110.20 1,036,330.00 1,102,010.00
Fixed Income 808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 2.5274% 6,750,000.0000 A2 A 104.85 6,729,480.00 7,077,307.50
Fixed Income 808513AW5 CHARLES SCHWAB CORP 3.250% 5/21/21 3.1987% 1,385,000.0000 A2 A 101.60 1,419,472.65 1,407,201.55
Fixed Income 166764BG4 CHEVRON CORP 2.100% 5/16/21 2.0788% 2,500,000.0000 AA2 AA 101.02 2,485,350.00 2,525,450.00
Fixed Income 166764AH3 CHEVRON CORP 3.191% 6/24/23 2.9860% 3,500,000.0000 AA2 AA 106.87 3,441,095.00 3,740,275.00
Fixed Income 30231GAV4 EXXON MOBIL 2.222% 3/01/21 2.2074% 3,000,000.0000 AA1 AA 100.66 3,016,097.40 3,019,830.00
Fixed Income 3133ELYR9 F F C B DEB 0.250% 5/06/22 0.2496% 8,850,000.0000 AAA AA+ 100.15 8,838,760.50 8,863,629.00
Fixed Income 3133EKWV4 F F C B DEB 1.850% 7/26/24 1.7458% 5,000,000.0000 AAA AA+ 105.97 5,048,280.00 5,298,500.00
Fixed Income 3130A1XJ2 F H L B 2.875% 6/14/24 2.6214% 11,110,000.0000 AAA AA+ 109.68 11,589,031.30 12,185,003.60
Fixed Income 3130A7CV5 F H L B DEB 1.375% 2/18/21 1.3686% 5,365,000.0000 AAA AA+ 100.47 5,343,325.40 5,390,161.85
Fixed Income 313379RB7 F H L B DEB 1.875% 6/11/21 1.8525% 4,000,000.0000 AAA AA+ 101.21 4,030,160.00 4,048,560.00
Fixed Income 3130A4CH3 F H L B DEB 2.375% 3/14/25 2.1882% 5,225,000.0000 AAA AA+ 108.54 5,526,848.25 5,671,162.75
Fixed Income 3130A2UW4 F H L B DEB 2.875% 9/13/24 2.6004% 2,500,000.0000 AAA AA+ 110.56 2,635,950.00 2,763,975.00
Fixed Income 313383QR5 F H L B DEB 3.250% 6/09/23 3.0080% 5,000,000.0000 AAA AA+ 108.05 5,083,350.00 5,402,250.00
Fixed Income 313383YJ4 F H L B DEB 3.375% 9/08/23 3.0921% 10,000,000.0000 AAA AA+ 109.15 10,211,831.00 10,915,000.00
Fixed Income 3130A0F70 F H L B DEB 3.375% 12/08/23 3.0727% 10,000,000.0000 AAA AA+ 109.84 10,269,043.75 10,984,000.00
1 of 5
U.S. Bank
Investment Listing - Yield
As of 09/30/2020
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 313385AD8 F H L B DISC NTS 1/04/21 0.0000% 1,500,000.0000 N/A N/A 99.98 1,498,340.00 1,499,640.00
Fixed Income 313384K57 F H L B DISC NTS 10/13/20 0.0000% 6,500,000.0000 N/A N/A 100.00 6,496,403.33 6,499,870.00
Fixed Income 313384Q77 F H L B DISC NTS 11/24/20 0.0000% 4,800,000.0000 N/A N/A 99.99 4,796,656.00 4,799,520.00
Fixed Income 3137EAEP0 F H L M C 1.500% 2/12/25 1.4291% 12,335,000.0000 AAA N/A 104.96 12,510,182.05 12,946,569.30
Fixed Income 3137EAEN5 F H L M C 2.750% 6/19/23 2.5759% 10,000,000.0000 AAA AA+ 106.76 9,956,500.00 10,676,000.00
Fixed Income 3137EAEU9 F H L M C M T N 0.375% 7/21/25 0.3749% 5,030,000.0000 AAA AA+ 100.02 5,004,950.60 5,030,804.80
Fixed Income 3137EAEX3 F H L M C M T N 0.375% 9/23/25 0.3762% 7,660,000.0000 AAA AA+ 99.67 7,636,943.40 7,634,722.00
Fixed Income 3137EAEK1 F H L M C M T N 1.875% 11/17/20 1.8707% 5,000,000.0000 AAA AA+ 100.23 4,986,225.00 5,011,450.00
Fixed Income 3137EAEL9 F H L M C M T N 2.375% 2/16/21 2.3553% 7,500,000.0000 AAA AA+ 100.84 7,484,475.00 7,562,850.00
Fixed Income 31348SWZ3 F H L M C #786064 3.845% 1/01/28 3.8438% 1,626.7500 N/A N/A 100.03 1,587.14 1,627.24
Fixed Income 3133TCE95 F H L M C MLTCL MTG 3.985% 8/15/32 3.9386% 4,760.3500 N/A N/A 101.18 4,765.34 4,816.37
Fixed Income 31394JY35 F H L M C MLTCL MTG 6.500% 9/25/43 5.5647% 585,676.6100 N/A N/A 116.81 663,278.76 684,111.28
Fixed Income 3135G05G4 F N M A 0.250% 7/10/23 0.2501% 6,775,000.0000 AAA AA+ 99.98 6,760,433.75 6,773,577.25
Fixed Income 3135G05X7 F N M A 0.375% 8/25/25 0.3762% 7,945,000.0000 AAA AA+ 99.69 7,907,817.40 7,919,973.25
Fixed Income 3135G04Z3 F N M A 0.500% 6/17/25 0.4977% 9,905,000.0000 AAA AA+ 100.46 9,884,496.65 9,950,662.05
Fixed Income 3135G0F73 F N M A 1.500% 11/30/20 1.4966% 7,500,000.0000 AAA AA+ 100.23 7,370,726.00 7,517,175.00
Fixed Income 3135G0X24 F N M A 1.625% 1/07/25 1.5421% 10,000,000.0000 AAA AA+ 105.38 10,157,936.40 10,537,700.00
Fixed Income 3135G0T45 F N M A 1.875% 4/05/22 1.8269% 5,000,000.0000 AAA AA+ 102.63 4,972,500.00 5,131,650.00
Fixed Income 3135G0S38 F N M A 2.000% 1/05/22 1.9534% 3,000,000.0000 AAA AA+ 102.38 2,994,570.00 3,071,520.00
Fixed Income 3135G0V34 F N M A 2.500% 2/05/24 2.3255% 5,000,000.0000 AAA AA+ 107.50 4,980,850.00 5,375,200.00
Fixed Income 3135G0U35 F N M A 2.750% 6/22/21 2.6990% 7,500,000.0000 AAA AA+ 101.89 7,515,225.00 7,641,600.00
Fixed Income 31371NUC7 F N M A #257179 4.500% 4/01/28 4.1657% 11,104.3500 N/A N/A 108.03 11,743.94 11,995.59
Fixed Income 31376KT22 F N M A #357969 5.000% 9/01/35 4.3408% 82,086.0900 N/A N/A 115.19 88,242.53 94,550.86
Fixed Income 31381PDA3 F N M A #466397 3.400% 11/01/20 3.4013% 328,447.9500 N/A N/A 99.96 321,340.16 328,323.14
Fixed Income 31403DJZ3 F N M A #745580 5.000% 6/01/36 4.3466% 75,792.8500 N/A N/A 115.03 81,477.30 87,186.79
Fixed Income 31403GXF4 F N M A #748678 5.000% 10/01/33 4.4085% 1,670.9100 N/A N/A 113.42 1,796.23 1,895.08
Fixed Income 31406PQY8 F N M A #815971 5.000% 3/01/35 4.3533% 120,390.9900 N/A N/A 114.86 129,420.33 138,276.28
Fixed Income 31406XWT5 F N M A #823358 3.674% 2/01/35 3.5164% 92,694.1200 N/A N/A 104.48 91,969.95 96,849.60
Fixed Income 31407BXH7 F N M A #826080 5.000% 7/01/35 4.3515% 15,398.4800 N/A N/A 114.90 16,553.35 17,693.32
Fixed Income 31410F4V4 F N M A #888336 5.000% 7/01/36 4.3447% 144,221.1700 N/A N/A 115.08 155,037.77 165,972.61
Fixed Income 3138EG6F6 F N M A #AL0869 4.500% 6/01/29 4.1315% 7,682.5500 N/A N/A 108.92 8,125.07 8,367.83
Fixed Income 31417YAY3 F N M A #MA0022 4.500% 4/01/29 4.1317% 12,456.7600 N/A N/A 108.91 13,174.25 13,567.16
Fixed Income 3135G03U5 F N M A DEB 0.625% 4/22/25 0.6166% 14,000,000.0000 AAA AA+ 101.36 13,996,711.60 14,189,700.00
Fixed Income 3135G0J20 F N M A DEB 1.375% 2/26/21 1.3682% 10,000,000.0000 AAA AA+ 100.50 10,040,950.00 10,050,000.00
Fixed Income 3135G0T94 F N M A DEB 2.375% 1/19/23 2.2640% 5,000,000.0000 AAA AA+ 104.91 4,910,990.00 5,245,250.00
Fixed Income 31397QRE0 F N M A GTD REMIC 2.472% 2/25/41 0.8171% 146,233.8600 N/A N/A 101.35 146,188.17 148,209.48
Fixed Income 36225CAZ9 G N M A I I #080023 3.125% 12/20/26 3.0120% 12,588.6000 N/A N/A 103.75 12,796.57 13,061.05
Fixed Income 36225CC20 G N M A I I #080088 2.875% 6/20/27 2.8169% 9,352.0300 N/A N/A 102.06 9,556.61 9,545.06
Fixed Income 36225CNM4 G N M A I I #080395 2.875% 4/20/30 2.7571% 5,221.9400 N/A N/A 104.28 5,174.58 5,445.23
Fixed Income 36225CN28 G N M A I I #080408 2.875% 5/20/30 2.7571% 37,845.1900 N/A N/A 104.28 37,460.83 39,464.21
2 of 5
U.S. Bank
Investment Listing - Yield
As of 09/30/2020
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 36225DCB8 G N M A I I #080965 3.250% 7/20/34 3.1078% 33,988.1600 N/A N/A 104.58 33,966.93 35,543.12
Fixed Income 369550BE7 GENERAL DYNAMICS 3.000% 5/11/21 2.9507% 3,160,000.0000 A2 A 101.67 3,138,038.00 3,212,803.60
Fixed Income 43813KAC6 HONDA AUTO 0.370% 10/18/24 0.3700% 3,235,000.0000 N/A AAA 100.01 3,234,524.78 3,235,323.50
Fixed Income 43814PAC4 HONDA AUTO 1.790% 9/20/21 1.7870% 320,898.6400 N/A AAA 100.17 315,809.39 321,437.75
Fixed Income 43815NAB0 HONDA AUTO 1.900% 4/15/22 1.8893% 2,182,158.8200 AAA AAA 100.57 2,182,006.07 2,194,509.84
Fixed Income 43814WAB1 HONDA AUTO 2.750% 9/20/21 2.7432% 706,874.2800 N/A AAA 100.25 706,828.76 708,620.26
Fixed Income 43815HAC1 HONDA AUTO 2.950% 8/22/22 2.9118% 2,445,741.8400 AAA N/A 101.31 2,445,406.29 2,477,829.97
Fixed Income 43814UAG4 HONDA AUTO 3.010% 5/18/22 2.9760% 937,656.4800 N/A AAA 101.14 937,636.04 948,355.14
Fixed Income 438516CB0 HONEYWELL 1.350% 6/01/25 1.3094% 5,000,000.0000 A2 A 103.10 5,119,000.00 5,155,150.00
Fixed Income 44932HAH6 IBM CREDIT CORP 3.000% 2/06/23 2.8227% 5,670,000.0000 A2 A 106.28 5,603,264.40 6,026,246.10
Fixed Income 458140BD1 INTEL CORP 2.875% 5/11/24 2.6596% 5,000,000.0000 A1 A+ 108.10 5,025,900.00 5,404,900.00
Fixed Income 4581X0CS5 INTER AMER BK M T N 1.875% 3/15/21 1.8615% 5,000,000.0000 AAA AAA 100.72 5,059,610.00 5,036,150.00
Fixed Income 4581X0CZ9 INTER AMER DEV BK 1.750% 9/14/22 1.6997% 6,500,000.0000 AAA AAA 102.96 6,249,655.00 6,692,530.00
Fixed Income 4581X0CW6 INTER AMER DEV BK 2.125% 1/18/22 2.0745% 3,000,000.0000 AAA N/A 102.44 2,996,310.00 3,073,050.00
Fixed Income 459058FH1 INTL BK 1.375% 5/24/21 1.3653% 1,000,000.0000 AAA AAA 100.71 1,010,570.00 1,007,130.00
Fixed Income 459058FY4 INTL BK 2.000% 1/26/22 1.9542% 10,000,000.0000 AAA N/A 102.34 10,006,350.00 10,234,300.00
Fixed Income 459058JB0 INTL BK M T N 0.625% 4/22/25 0.6192% 6,245,000.0000 AAA AAA 100.93 6,220,831.85 6,303,140.95
Fixed Income 45950KCM0 INTL BK M T N 2.250% 1/25/21 2.2357% 2,970,000.0000 AAA AAA 100.64 2,961,268.20 2,988,978.30
Fixed Income 45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 1.1168% 2,500,000.0000 AAA AAA 100.73 2,441,600.00 2,518,300.00
Fixed Income 24422EUM9 JOHN DEERE MTN 3.650% 10/12/23 3.3217% 1,250,000.0000 A2 A 109.88 1,250,237.50 1,373,537.50
Fixed Income 47787NAC3 JOHN DEERE OWNER 0.510% 11/15/24 0.5087% 1,480,000.0000 AAA N/A 100.26 1,479,774.45 1,483,848.00
Fixed Income 47788BAD6 JOHN DEERE OWNER 1.820% 10/15/21 1.8190% 19,300.2100 AAA N/A 100.06 19,298.80 19,310.83
Fixed Income 477870AB5 JOHN DEERE OWNER 2.280% 5/16/22 2.2690% 1,242,530.5500 AAA N/A 100.49 1,242,525.83 1,248,556.82
Fixed Income 47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 2.6455% 391,673.1800 AAA N/A 100.55 391,645.02 393,815.63
Fixed Income 47789JAB2 JOHN DEERE OWNER 2.850% 12/15/21 2.8445% 419,926.3300 AAA N/A 100.19 419,907.19 420,736.79
Fixed Income 47788EAC2 JOHN DEERE OWNER 3.080% 11/15/22 3.0377% 2,901,661.2900 AAA N/A 101.39 2,901,441.35 2,942,110.45
Fixed Income 46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 2.5567% 5,000,000.0000 A2 A- 105.60 4,821,910.00 5,280,150.00
Fixed Income 46647PAU0 JPMORGAN CHASE CO 3.797% 7/23/24 3.5051% 2,500,000.0000 A2 A- 108.33 2,632,175.00 2,708,200.00
Fixed Income 46625HHU7 JPMORGAN CHASE CO 4.250% 10/15/20 4.2440% 1,160,000.0000 WR N/R 100.14 1,176,924.40 1,161,647.20
Fixed Income 494368BF9 KIMBERLY CLARK CORP 3.875% 3/01/21 3.8185% 750,000.0000 A2 A 101.48 768,877.50 761,100.00
Fixed Income 525ESC0Y6 LEHMAN BRTH HLD ESC 0.0000% 2,000,000.0000- 1,026,605.56 -
Fixed Income 525ESCIB7 LEHMAN BRTH MTN ES 0.00001% 1/24/13 0.0008% 600,000.0000 N/A N/A 1.20 318,603.60 7,200.00
Fixed Income 58770FAC6 MERCEDES BENZ AUTO 1.840% 12/15/22 1.8105% 2,050,000.0000 AAA AAA 101.63 2,049,729.81 2,083,374.00
Fixed Income 58933YAF2 MERCK CO INC 2.800% 5/18/23 2.6261% 2,000,000.0000 A1 AA- 106.62 1,948,640.00 2,132,460.00
Fixed Income 594918BP8 MICROSOFT CORP 1.550% 8/08/21 1.5334% 3,045,000.0000 AAA AAA 101.08 3,041,385.15 3,077,886.00
Fixed Income 61747WAL3 MORGAN STANLEY 5.500% 7/28/21 5.2791% 2,800,000.0000 A2 BBB+ 104.19 3,200,848.00 2,917,180.00
Fixed Income 64971M5E8 NEW YORK CITY NY 4.075% 11/01/20 4.0629% 1,400,000.0000 AA1 AAA 100.30 1,400,000.00 1,404,158.00
Fixed Income 65478GAD2 NISSAN AUTO 1.750% 10/15/21 1.7471% 292,650.5800 AAA N/A 100.16 288,112.21 293,130.53
Fixed Income 65479JAD5 NISSAN AUTO 1.930% 7/15/24 1.8835% 4,185,000.0000 AAA AAA 102.47 4,184,779.03 4,288,369.50
Fixed Income 65479GAD1 NISSAN AUTO 3.060% 3/15/23 3.0093% 2,845,516.9800 AAA AAA 101.68 2,845,424.79 2,893,435.49
3 of 5
U.S. Bank
Investment Listing - Yield
As of 09/30/2020
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 68389XBK0 ORACLE CORP 1.900% 9/15/21 1.8733% 3,000,000.0000 A3 A 101.43 2,892,240.00 3,042,750.00
Fixed Income 69371RN93 PACCAR FINANCIAL MTN 2.800% 3/01/21 2.7709% 600,000.0000 A1 A+ 101.05 607,086.00 606,312.00
Fixed Income 69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 2.5478% 1,000,000.0000 A2 A 103.03 974,940.00 1,030,290.00
Fixed Income 69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 3.2565% 5,000,000.0000 A2 A 107.48 4,993,318.05 5,373,900.00
Fixed Income 78015K7H1 ROYAL BANK OF MTN 1.150% 6/10/25 1.1342% 1,500,000.0000 A2 A 101.40 1,515,480.00 1,520,955.00
Fixed Income 78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 2.3837% 6,500,000.0000 A2 A 106.98 6,581,445.00 6,953,505.00
Fixed Income 78012UVJ1 ROYAL BK OF C D 1.000% 2/19/21 0.9967% 1,500,000.0000 100.33 1,500,000.00 1,504,920.00
Fixed Income 83162CLJ0 S B A GTD DEV PART 6.340% 3/01/21 6.2712% 2,984.8600 N/A N/A 101.10 2,984.86 3,017.60
Fixed Income 78445JAA5 S L M A 1.76388% 4/25/23 1.7974% 11,225.8000 BAA3 B 98.14 11,180.25 11,016.66
Fixed Income 89114QBX5 TORONTO DOMINION MTN 2.550% 1/25/21 2.5316% 1,750,000.0000 AA1 AA- 100.73 1,774,762.50 1,762,740.00
Fixed Income 89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 2.4768% 3,000,000.0000 AA3 A 106.99 3,000,570.00 3,209,760.00
Fixed Income 89114QC48 TORONTO MTN 3.500% 7/19/23 3.2238% 5,000,000.0000 AA1 AA- 108.57 5,094,200.00 5,428,350.00
Fixed Income 89239AAB9 TOYOTA AUTO 2.830% 10/15/21 2.8238% 430,940.8400 AAA AAA 100.22 430,901.72 431,893.22
Fixed Income 89237VAB5 TOYOTA AUTO RECV 0.440% 10/15/24 0.4390% 2,960,000.0000 AAA AAA 100.23 2,959,772.08 2,966,748.80
Fixed Income 89236TBJ3 TOYOTA MOTOR MTN 2.750% 5/17/21 2.7076% 1,500,000.0000 A1 A+ 101.57 1,523,295.00 1,523,490.00
Fixed Income 912828WU0 U S TREASURY I P S 0.125% 7/15/24 0.1182% 11,346,608.0000 AAA N/A 105.79 11,201,888.09 12,003,917.00
Fixed Income 912828ZL7 U S TREASURY NT 0.375% 4/30/25 0.3728% 12,000,000.0000 AAA N/A 100.59 11,998,515.63 12,070,800.00
Fixed Income 912828T34 U S TREASURY NT 1.125% 9/30/21 1.1141% 7,000,000.0000 AAA N/A 100.98 6,757,914.08 7,068,390.00
Fixed Income 912828T67 U S TREASURY NT 1.250% 10/31/21 1.2350% 6,000,000.0000 AAA N/A 101.21 5,813,691.98 6,072,660.00
Fixed Income 912828N89 U S TREASURY NT 1.375% 1/31/21 1.3694% 6,000,000.0000 AAA N/A 100.41 5,895,840.41 6,024,600.00
Fixed Income 912828L99 U S TREASURY NT 1.375% 10/31/20 1.3736% 6,500,000.0000 AAA N/A 100.10 6,396,119.99 6,506,760.00
Fixed Income 912828YH7 U S TREASURY NT 1.500% 9/30/24 1.4267% 14,000,000.0000 AAA N/A 105.14 13,859,296.88 14,719,180.00
Fixed Income 912828R69 U S TREASURY NT 1.625% 5/31/23 1.5633% 5,000,000.0000 AAA N/A 103.95 4,757,226.56 5,197,250.00
Fixed Income 912828J76 U S TREASURY NT 1.750% 3/31/22 1.7085% 5,000,000.0000 AAA N/A 102.43 4,976,383.94 5,121,500.00
Fixed Income 912828XW5 U S TREASURY NT 1.750% 6/30/22 1.7018% 5,000,000.0000 AAA N/A 102.83 4,973,454.25 5,141,600.00
Fixed Income 912828L57 U S TREASURY NT 1.750% 9/30/22 1.6952% 16,000,000.0000 AAA N/A 103.23 15,829,492.20 16,517,440.00
Fixed Income 912828U65 U S TREASURY NT 1.750% 11/30/21 1.7177% 7,000,000.0000 AAA N/A 101.88 6,900,492.20 7,131,810.00
Fixed Income 912828V72 U S TREASURY NT 1.875% 1/31/22 1.8323% 3,000,000.0000 AAA N/A 102.33 3,004,814.74 3,069,840.00
Fixed Income 912828L24 U S TREASURY NT 1.875% 8/31/22 1.8145% 6,000,000.0000 AAA N/A 103.33 5,987,832.60 6,199,920.00
Fixed Income 912828XX3 U S TREASURY NT 2.000% 6/30/24 1.8737% 5,000,000.0000 AAA N/A 106.74 5,028,710.94 5,337,100.00
Fixed Income 912828M80 U S TREASURY NT 2.000% 11/30/22 1.9224% 8,000,000.0000 AAA N/A 104.04 7,907,500.00 8,322,800.00
Fixed Income 912828W48 U S TREASURY NT 2.125% 2/29/24 1.9929% 10,000,000.0000 AAA N/A 106.63 9,911,718.75 10,662,900.00
Fixed Income 912828WR7 U S TREASURY NT 2.125% 6/30/21 2.0936% 3,000,000.0000 AAA N/A 101.50 3,047,109.38 3,045,000.00
Fixed Income 912828U57 U S TREASURY NT 2.125% 11/30/23 2.0012% 15,000,000.0000 AAA N/A 106.18 14,723,632.81 15,927,600.00
Fixed Income 9128283J7 U S TREASURY NT 2.125% 11/30/24 1.9698% 16,500,000.0000 AAA N/A 107.88 16,783,886.72 17,800,035.00
Fixed Income 912828N30 U S TREASURY NT 2.125% 12/31/22 2.0341% 5,000,000.0000 AAA N/A 104.47 4,926,562.50 5,223,450.00
Fixed Income 912828V80 U S TREASURY NT 2.250% 1/31/24 2.1049% 7,500,000.0000 AAA 106.90 7,491,503.91 8,017,125.00
Fixed Income 912828WY2 U S TREASURY NT 2.250% 7/31/21 2.2109% 8,000,000.0000 AAA N/A 101.77 8,144,296.88 8,141,600.00
Fixed Income 9128284D9 U S TREASURY NT 2.500% 3/31/23 2.3609% 10,000,000.0000 AAA N/A 105.89 9,887,265.63 10,589,100.00
Fixed Income 912828WJ5 U S TREASURY NT 2.500% 5/15/24 2.3078% 7,000,000.0000 AAA N/A 108.33 7,193,046.88 7,582,960.00
4 of 5
U.S. Bank
Investment Listing - Yield
As of 09/30/2020
Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value
Fixed Income 913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15/21 4.9003% 400,000.0000 AA3 AA- 102.75 400,000.00 410,996.00
Fixed Income 90331HPL1 US BANK NA MTN 2.050% 1/21/25 1.9410% 7,270,000.0000 A1 AA- 105.62 7,254,514.90 7,678,210.50
Fixed Income 90331HNL3 US BANK NA MTN 2.850% 1/23/23 2.7022% 2,000,000.0000 A1 AA- 105.47 1,992,640.00 2,109,360.00
Fixed Income 92826CAB8 VISA INC 2.200% 12/14/20 2.1952% 500,000.0000 AA3 AA- 100.22 501,360.00 501,100.00
Fixed Income 931142EK5 WALMART INC 3.400% 6/26/23 3.1470% 3,880,000.0000 AA2 AA 108.04 3,878,991.40 4,191,874.40
Fixed Income 95000U2B8 WELLS FARGO MTN 2.625% 7/22/22 2.5318% 3,000,000.0000 A2 BBB+ 103.68 2,954,520.00 3,110,400.00
Total Consolidated 751,266,046.54
5 of 5
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2020
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
Cash Equivalents
31846V567 FIRST AM GOVT OB FD CL Z 1.00 2,920,536.2900 2,920,536.29 2,920,536.29 0.39 -
31846V567 FIRST AM GOVT OB FD CL Z 1.00 946,228.2600 946,228.26 946,228.26 0.13 -
89233GLP9 TOYOTA MOTOR CREDIT CO C P 11/23/20 99.98 1,500,000.0000 1,498,721.67 1,499,685.00 0.20 963.33
912796UC1 U S TREASURY BILL 1/28/21 99.97 58,250,000.0000 58,193,363.48 58,230,777.50 7.75 37,414.02
912796XE4 U S TREASURY BILL 2/25/21 99.96 10,000,000.0000 9,991,378.33 9,995,900.00 1.33 4,521.67
912796TN9 U S TREASURY BILL 10/08/20 100.00 5,000,000.0000 4,997,484.38 4,999,950.00 0.67 2,465.62
9127962S7 U S TREASURY BILL 10/22/20 100.00 5,000,000.0000 4,997,362.85 4,999,750.00 0.67 2,387.15
912796TP4 U S TREASURY BILL 11/05/20 99.99 5,000,000.0000 4,997,375.00 4,999,600.00 0.67 2,225.00
912796TY5 U S TREASURY BILL 12/31/20 99.98 5,000,000.0000 4,995,372.22 4,998,750.00 0.67 3,377.78
Cash Equivalents Total 93,616,764.5500 93,537,822.48 93,591,177.05 12.46 53,354.57
Fixed Income
00440EAT4 ACE INA HOLDINGS 2.300% 11/03/20 100.14 500,000.0000 503,140.00 500,705.00 0.07 (2,435.00)
00440EAP2 ACE INA HOLDINGS 2.700% 3/13/23 105.22 2,000,000.0000 1,937,000.00 2,104,340.00 0.28 167,340.00
00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 104.60 4,169,000.0000 4,232,453.17 4,360,857.38 0.58 128,404.21
02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 105.82 1,219,000.0000 1,213,843.63 1,289,982.37 0.17 76,138.74
02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 107.81 845,000.0000 843,538.15 911,002.95 0.12 67,464.80
02665WCQ2 AMERICAN HONDA MTN 3.625% 10/10/23 108.91 2,000,000.0000 1,998,320.00 2,178,220.00 0.29 179,900.00
03215PFN4 AMRESCO 1.12443% 6/25/29 93.49 119,021.6400 89,377.81 111,269.76 0.01 21,891.95
037833BS8 APPLE INC 2.250% 2/23/21 100.70 4,000,000.0000 4,050,840.00 4,028,160.00 0.54 (22,680.00)
037833AR1 APPLE INC 2.850% 5/06/21 101.49 1,155,000.0000 1,182,327.30 1,172,209.50 0.16 (10,117.80)
037833CU2 APPLE INC 2.850% 5/11/24 107.90 3,000,000.0000 3,017,760.00 3,237,090.00 0.43 219,330.00
06051GHF9 BANK OF AMERICA 3.550% 3/05/24 106.50 6,675,000.0000 6,770,625.75 7,108,608.00 0.95 337,982.25
06406RAA5 BANK OF NY MTN 2.600% 2/07/22 102.90 2,500,000.0000 2,504,475.00 2,572,425.00 0.34 67,950.00
06406RAE7 BANK OF NY MTN 2.950% 1/29/23 105.34 2,500,000.0000 2,489,555.00 2,633,425.00 0.35 143,870.00
084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 105.34 2,500,000.0000 2,440,950.00 2,633,475.00 0.35 192,525.00
084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 104.27 4,000,000.0000 4,131,120.00 4,170,960.00 0.56 39,840.00
09247XAL5 BLACKROCK INC 3.500% 3/18/24 110.20 1,000,000.0000 1,036,330.00 1,102,010.00 0.15 65,680.00
808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 104.85 6,750,000.0000 6,729,480.00 7,077,307.50 0.94 347,827.50
808513AW5 CHARLES SCHWAB CORP 3.250% 5/21/21 101.60 1,385,000.0000 1,419,472.65 1,407,201.55 0.19 (12,271.10)
166764BG4 CHEVRON CORP 2.100% 5/16/21 101.02 2,500,000.0000 2,485,350.00 2,525,450.00 0.34 40,100.00
166764AH3 CHEVRON CORP 3.191% 6/24/23 106.87 3,500,000.0000 3,441,095.00 3,740,275.00 0.50 299,180.00
30231GAV4 EXXON MOBIL 2.222% 3/01/21 100.66 3,000,000.0000 3,016,097.40 3,019,830.00 0.40 3,732.60
3133ELYR9 F F C B DEB 0.250% 5/06/22 100.15 8,850,000.0000 8,838,760.50 8,863,629.00 1.18 24,868.50
3133EKWV4 F F C B DEB 1.850% 7/26/24 105.97 5,000,000.0000 5,048,280.00 5,298,500.00 0.71 250,220.00
3130A1XJ2 F H L B 2.875% 6/14/24 109.68 11,110,000.0000 11,589,031.30 12,185,003.60 1.62 595,972.30
3130A7CV5 F H L B DEB 1.375% 2/18/21 100.47 5,365,000.0000 5,343,325.40 5,390,161.85 0.72 46,836.45
313379RB7 F H L B DEB 1.875% 6/11/21 101.21 4,000,000.0000 4,030,160.00 4,048,560.00 0.54 18,400.00
3130A4CH3 F H L B DEB 2.375% 3/14/25 108.54 5,225,000.0000 5,526,848.25 5,671,162.75 0.75 144,314.50
3130A2UW4 F H L B DEB 2.875% 9/13/24 110.56 2,500,000.0000 2,635,950.00 2,763,975.00 0.37 128,025.00
313383QR5 F H L B DEB 3.250% 6/09/23 108.05 5,000,000.0000 5,083,350.00 5,402,250.00 0.72 318,900.00
1 of 5
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2020
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
313383YJ4 F H L B DEB 3.375% 9/08/23 109.15 10,000,000.0000 10,211,831.00 10,915,000.00 1.45 703,169.00
3130A0F70 F H L B DEB 3.375% 12/08/23 109.84 10,000,000.0000 10,269,043.75 10,984,000.00 1.46 714,956.25
313385AD8 F H L B DISC NTS 1/04/21 99.98 1,500,000.0000 1,498,340.00 1,499,640.00 0.20 1,300.00
313384K57 F H L B DISC NTS 10/13/20 100.00 6,500,000.0000 6,496,403.33 6,499,870.00 0.87 3,466.67
313384Q77 F H L B DISC NTS 11/24/20 99.99 4,800,000.0000 4,796,656.00 4,799,520.00 0.64 2,864.00
3137EAEP0 F H L M C 1.500% 2/12/25 104.96 12,335,000.0000 12,510,182.05 12,946,569.30 1.72 436,387.25
3137EAEN5 F H L M C 2.750% 6/19/23 106.76 10,000,000.0000 9,956,500.00 10,676,000.00 1.42 719,500.00
3137EAEU9 F H L M C M T N 0.375% 7/21/25 100.02 5,030,000.0000 5,004,950.60 5,030,804.80 0.67 25,854.20
3137EAEX3 F H L M C M T N 0.375% 9/23/25 99.67 7,660,000.0000 7,636,943.40 7,634,722.00 1.02 (2,221.40)
3137EAEK1 F H L M C M T N 1.875% 11/17/20 100.23 5,000,000.0000 4,986,225.00 5,011,450.00 0.67 25,225.00
3137EAEL9 F H L M C M T N 2.375% 2/16/21 100.84 7,500,000.0000 7,484,475.00 7,562,850.00 1.01 78,375.00
31348SWZ3 F H L M C #786064 3.845% 1/01/28 100.03 1,626.7500 1,587.14 1,627.24 0.00 40.10
3133TCE95 F H L M C MLTCL MTG 3.985% 8/15/32 101.18 4,760.3500 4,765.34 4,816.37 0.00 51.03
31394JY35 F H L M C MLTCL MTG 6.500% 9/25/43 116.81 585,676.6100 663,278.76 684,111.28 0.09 20,832.52
3135G05G4 F N M A 0.250% 7/10/23 99.98 6,775,000.0000 6,760,433.75 6,773,577.25 0.90 13,143.50
3135G05X7 F N M A 0.375% 8/25/25 99.69 7,945,000.0000 7,907,817.40 7,919,973.25 1.05 12,155.85
3135G04Z3 F N M A 0.500% 6/17/25 100.46 9,905,000.0000 9,884,496.65 9,950,662.05 1.32 66,165.40
3135G0F73 F N M A 1.500% 11/30/20 100.23 7,500,000.0000 7,370,726.00 7,517,175.00 1.00 146,449.00
3135G0X24 F N M A 1.625% 1/07/25 105.38 10,000,000.0000 10,157,936.40 10,537,700.00 1.40 379,763.60
3135G0T45 F N M A 1.875% 4/05/22 102.63 5,000,000.0000 4,972,500.00 5,131,650.00 0.68 159,150.00
3135G0S38 F N M A 2.000% 1/05/22 102.38 3,000,000.0000 2,994,570.00 3,071,520.00 0.41 76,950.00
3135G0V34 F N M A 2.500% 2/05/24 107.50 5,000,000.0000 4,980,850.00 5,375,200.00 0.72 394,350.00
3135G0U35 F N M A 2.750% 6/22/21 101.89 7,500,000.0000 7,515,225.00 7,641,600.00 1.02 126,375.00
31371NUC7 F N M A #257179 4.500% 4/01/28 108.03 11,104.3500 11,743.94 11,995.59 0.00 251.65
31376KT22 F N M A #357969 5.000% 9/01/35 115.19 82,086.0900 88,242.53 94,550.86 0.01 6,308.33
31381PDA3 F N M A #466397 3.400% 11/01/20 99.96 328,447.9500 321,340.16 328,323.14 0.04 6,982.98
31403DJZ3 F N M A #745580 5.000% 6/01/36 115.03 75,792.8500 81,477.30 87,186.79 0.01 5,709.49
31403GXF4 F N M A #748678 5.000% 10/01/33 113.42 1,670.9100 1,796.23 1,895.08 0.00 98.85
31406PQY8 F N M A #815971 5.000% 3/01/35 114.86 120,390.9900 129,420.33 138,276.28 0.02 8,855.95
31406XWT5 F N M A #823358 3.674% 2/01/35 104.48 92,694.1200 91,969.95 96,849.60 0.01 4,879.65
31407BXH7 F N M A #826080 5.000% 7/01/35 114.90 15,398.4800 16,553.35 17,693.32 0.00 1,139.97
31410F4V4 F N M A #888336 5.000% 7/01/36 115.08 144,221.1700 155,037.77 165,972.61 0.02 10,934.84
3138EG6F6 F N M A #AL0869 4.500% 6/01/29 108.92 7,682.5500 8,125.07 8,367.83 0.00 242.76
31417YAY3 F N M A #MA0022 4.500% 4/01/29 108.91 12,456.7600 13,174.25 13,567.16 0.00 392.91
3135G03U5 F N M A DEB 0.625% 4/22/25 101.36 14,000,000.0000 13,996,711.60 14,189,700.00 1.89 192,988.40
3135G0J20 F N M A DEB 1.375% 2/26/21 100.50 10,000,000.0000 10,040,950.00 10,050,000.00 1.34 9,050.00
3135G0T94 F N M A DEB 2.375% 1/19/23 104.91 5,000,000.0000 4,910,990.00 5,245,250.00 0.70 334,260.00
31397QRE0 F N M A GTD REMIC 2.472% 2/25/41 101.35 146,233.8600 146,188.17 148,209.48 0.02 2,021.31
36225CAZ9 G N M A I I #080023 3.125% 12/20/26 103.75 12,588.6000 12,796.57 13,061.05 0.00 264.48
36225CC20 G N M A I I #080088 2.875% 6/20/27 102.06 9,352.0300 9,556.61 9,545.06 0.00 (11.55)
36225CNM4 G N M A I I #080395 2.875% 4/20/30 104.28 5,221.9400 5,174.58 5,445.23 0.00 270.65
36225CN28 G N M A I I #080408 2.875% 5/20/30 104.28 37,845.1900 37,460.83 39,464.21 0.01 2,003.38
2 of 5
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2020
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
36225DCB8 G N M A I I #080965 3.250% 7/20/34 104.58 33,988.1600 33,966.93 35,543.12 0.00 1,576.19
369550BE7 GENERAL DYNAMICS 3.000% 5/11/21 101.67 3,160,000.0000 3,138,038.00 3,212,803.60 0.43 74,765.60
43813KAC6 HONDA AUTO 0.370% 10/18/24 100.01 3,235,000.0000 3,234,524.78 3,235,323.50 0.43 798.72
43814PAC4 HONDA AUTO 1.790% 9/20/21 100.17 320,898.6400 315,809.39 321,437.75 0.04 5,628.36
43815NAB0 HONDA AUTO 1.900% 4/15/22 100.57 2,182,158.8200 2,182,006.07 2,194,509.84 0.29 12,503.77
43814WAB1 HONDA AUTO 2.750% 9/20/21 100.25 706,874.2800 706,828.76 708,620.26 0.09 1,791.50
43815HAC1 HONDA AUTO 2.950% 8/22/22 101.31 2,445,741.8400 2,445,406.29 2,477,829.97 0.33 32,423.68
43814UAG4 HONDA AUTO 3.010% 5/18/22 101.14 937,656.4800 937,636.04 948,355.14 0.13 10,719.10
438516CB0 HONEYWELL 1.350% 6/01/25 103.10 5,000,000.0000 5,119,000.00 5,155,150.00 0.69 36,150.00
44932HAH6 IBM CREDIT CORP 3.000% 2/06/23 106.28 5,670,000.0000 5,603,264.40 6,026,246.10 0.80 422,981.70
458140BD1 INTEL CORP 2.875% 5/11/24 108.10 5,000,000.0000 5,025,900.00 5,404,900.00 0.72 379,000.00
4581X0CS5 INTER AMER BK M T N 1.875% 3/15/21 100.72 5,000,000.0000 5,059,610.00 5,036,150.00 0.67 (23,460.00)
4581X0CZ9 INTER AMER DEV BK 1.750% 9/14/22 102.96 6,500,000.0000 6,249,655.00 6,692,530.00 0.89 442,875.00
4581X0CW6 INTER AMER DEV BK 2.125% 1/18/22 102.44 3,000,000.0000 2,996,310.00 3,073,050.00 0.41 76,740.00
459058FH1 INTL BK 1.375% 5/24/21 100.71 1,000,000.0000 1,010,570.00 1,007,130.00 0.13 (3,440.00)
459058FY4 INTL BK 2.000% 1/26/22 102.34 10,000,000.0000 10,006,350.00 10,234,300.00 1.36 227,950.00
459058JB0 INTL BK M T N 0.625% 4/22/25 100.93 6,245,000.0000 6,220,831.85 6,303,140.95 0.84 82,309.10
45950KCM0 INTL BK M T N 2.250% 1/25/21 100.64 2,970,000.0000 2,961,268.20 2,988,978.30 0.40 27,710.10
45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 100.73 2,500,000.0000 2,441,600.00 2,518,300.00 0.34 76,700.00
24422EUM9 JOHN DEERE MTN 3.650% 10/12/23 109.88 1,250,000.0000 1,250,237.50 1,373,537.50 0.18 123,300.00
47787NAC3 JOHN DEERE OWNER 0.510% 11/15/24 100.26 1,480,000.0000 1,479,774.45 1,483,848.00 0.20 4,073.55
47788BAD6 JOHN DEERE OWNER 1.820% 10/15/21 100.06 19,300.2100 19,298.80 19,310.83 0.00 12.03
477870AB5 JOHN DEERE OWNER 2.280% 5/16/22 100.49 1,242,530.5500 1,242,525.83 1,248,556.82 0.17 6,030.99
47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 100.55 391,673.1800 391,645.02 393,815.63 0.05 2,170.61
47789JAB2 JOHN DEERE OWNER 2.850% 12/15/21 100.19 419,926.3300 419,907.19 420,736.79 0.06 829.60
47788EAC2 JOHN DEERE OWNER 3.080% 11/15/22 101.39 2,901,661.2900 2,901,441.35 2,942,110.45 0.39 40,669.10
46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 105.60 5,000,000.0000 4,821,910.00 5,280,150.00 0.70 458,240.00
46647PAU0 JPMORGAN CHASE CO 3.797% 7/23/24 108.33 2,500,000.0000 2,632,175.00 2,708,200.00 0.36 76,025.00
46625HHU7 JPMORGAN CHASE CO 4.250% 10/15/20 100.14 1,160,000.0000 1,176,924.40 1,161,647.20 0.15 (15,277.20)
494368BF9 KIMBERLY CLARK CORP 3.875% 3/01/21 101.48 750,000.0000 768,877.50 761,100.00 0.10 (7,777.50)
525ESC0Y6 LEHMAN BRTH HLD ESC - 2,000,000.0000 1,026,605.56 - - (1,026,605.56)
525ESCIB7 LEHMAN BRTH MTN ES 0.00001% 1/24/13 1.20 600,000.0000 318,603.60 7,200.00 0.00 (311,403.60)
58770FAC6 MERCEDES BENZ AUTO 1.840% 12/15/22 101.63 2,050,000.0000 2,049,729.81 2,083,374.00 0.28 33,644.19
58933YAF2 MERCK CO INC 2.800% 5/18/23 106.62 2,000,000.0000 1,948,640.00 2,132,460.00 0.28 183,820.00
594918BP8 MICROSOFT CORP 1.550% 8/08/21 101.08 3,045,000.0000 3,041,385.15 3,077,886.00 0.41 36,500.85
61747WAL3 MORGAN STANLEY 5.500% 7/28/21 104.19 2,800,000.0000 3,200,848.00 2,917,180.00 0.39 (283,668.00)
64971M5E8 NEW YORK CITY NY 4.075% 11/01/20 100.30 1,400,000.0000 1,400,000.00 1,404,158.00 0.19 4,158.00
65478GAD2 NISSAN AUTO 1.750% 10/15/21 100.16 292,650.5800 288,112.21 293,130.53 0.04 5,018.32
65479JAD5 NISSAN AUTO 1.930% 7/15/24 102.47 4,185,000.0000 4,184,779.03 4,288,369.50 0.57 103,590.47
65479GAD1 NISSAN AUTO 3.060% 3/15/23 101.68 2,845,516.9800 2,845,424.79 2,893,435.49 0.39 48,010.70
68389XBK0 ORACLE CORP 1.900% 9/15/21 101.43 3,000,000.0000 2,892,240.00 3,042,750.00 0.41 150,510.00
69371RN93 PACCAR FINANCIAL MTN 2.800% 3/01/21 101.05 600,000.0000 607,086.00 606,312.00 0.08 (774.00)
3 of 5
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2020
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 103.03 1,000,000.0000 974,940.00 1,030,290.00 0.14 55,350.00
69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 107.48 5,000,000.0000 4,993,318.05 5,373,900.00 0.72 380,581.95
78015K7H1 ROYAL BANK OF MTN 1.150% 6/10/25 101.40 1,500,000.0000 1,515,480.00 1,520,955.00 0.20 5,475.00
78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 106.98 6,500,000.0000 6,581,445.00 6,953,505.00 0.93 372,060.00
78012UVJ1 ROYAL BK OF C D 1.000% 2/19/21 100.33 1,500,000.0000 1,500,000.00 1,504,920.00 0.20 4,920.00
83162CLJ0 S B A GTD DEV PART 6.340% 3/01/21 101.10 2,984.8600 2,984.86 3,017.60 0.00 32.74
78445JAA5 S L M A 1.76388% 4/25/23 98.14 11,225.8000 11,180.25 11,016.66 0.00 (163.59)
89114QBX5 TORONTO DOMINION MTN 2.550% 1/25/21 100.73 1,750,000.0000 1,774,762.50 1,762,740.00 0.23 (12,022.50)
89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 106.99 3,000,000.0000 3,000,570.00 3,209,760.00 0.43 209,190.00
89114QC48 TORONTO MTN 3.500% 7/19/23 108.57 5,000,000.0000 5,094,200.00 5,428,350.00 0.72 334,150.00
89239AAB9 TOYOTA AUTO 2.830% 10/15/21 100.22 430,940.8400 430,901.72 431,893.22 0.06 991.50
89237VAB5 TOYOTA AUTO RECV 0.440% 10/15/24 100.23 2,960,000.0000 2,959,772.08 2,966,748.80 0.39 6,976.72
89236TBJ3 TOYOTA MOTOR MTN 2.750% 5/17/21 101.57 1,500,000.0000 1,523,295.00 1,523,490.00 0.20 195.00
912828WU0 U S TREASURY I P S 0.125% 7/15/24 105.79 11,346,608.0000 11,201,888.09 12,003,917.00 1.60 802,028.91
912828ZL7 U S TREASURY NT 0.375% 4/30/25 100.59 12,000,000.0000 11,998,515.63 12,070,800.00 1.61 72,284.37
912828T34 U S TREASURY NT 1.125% 9/30/21 100.98 7,000,000.0000 6,757,914.08 7,068,390.00 0.94 310,475.92
912828T67 U S TREASURY NT 1.250% 10/31/21 101.21 6,000,000.0000 5,813,691.98 6,072,660.00 0.81 258,968.02
912828N89 U S TREASURY NT 1.375% 1/31/21 100.41 6,000,000.0000 5,895,840.41 6,024,600.00 0.80 128,759.59
912828L99 U S TREASURY NT 1.375% 10/31/20 100.10 6,500,000.0000 6,396,119.99 6,506,760.00 0.87 110,640.01
912828YH7 U S TREASURY NT 1.500% 9/30/24 105.14 14,000,000.0000 13,859,296.88 14,719,180.00 1.96 859,883.12
912828R69 U S TREASURY NT 1.625% 5/31/23 103.95 5,000,000.0000 4,757,226.56 5,197,250.00 0.69 440,023.44
912828J76 U S TREASURY NT 1.750% 3/31/22 102.43 5,000,000.0000 4,976,383.94 5,121,500.00 0.68 145,116.06
912828XW5 U S TREASURY NT 1.750% 6/30/22 102.83 5,000,000.0000 4,973,454.25 5,141,600.00 0.68 168,145.75
912828L57 U S TREASURY NT 1.750% 9/30/22 103.23 16,000,000.0000 15,829,492.20 16,517,440.00 2.20 687,947.80
912828U65 U S TREASURY NT 1.750% 11/30/21 101.88 7,000,000.0000 6,900,492.20 7,131,810.00 0.95 231,317.80
912828V72 U S TREASURY NT 1.875% 1/31/22 102.33 3,000,000.0000 3,004,814.74 3,069,840.00 0.41 65,025.26
912828L24 U S TREASURY NT 1.875% 8/31/22 103.33 6,000,000.0000 5,987,832.60 6,199,920.00 0.83 212,087.40
912828XX3 U S TREASURY NT 2.000% 6/30/24 106.74 5,000,000.0000 5,028,710.94 5,337,100.00 0.71 308,389.06
912828M80 U S TREASURY NT 2.000% 11/30/22 104.04 8,000,000.0000 7,907,500.00 8,322,800.00 1.11 415,300.00
912828W48 U S TREASURY NT 2.125% 2/29/24 106.63 10,000,000.0000 9,911,718.75 10,662,900.00 1.42 751,181.25
912828WR7 U S TREASURY NT 2.125% 6/30/21 101.50 3,000,000.0000 3,047,109.38 3,045,000.00 0.41 (2,109.38)
912828U57 U S TREASURY NT 2.125% 11/30/23 106.18 15,000,000.0000 14,723,632.81 15,927,600.00 2.12 1,203,967.19
9128283J7 U S TREASURY NT 2.125% 11/30/24 107.88 16,500,000.0000 16,783,886.72 17,800,035.00 2.37 1,016,148.28
912828N30 U S TREASURY NT 2.125% 12/31/22 104.47 5,000,000.0000 4,926,562.50 5,223,450.00 0.70 296,887.50
912828V80 U S TREASURY NT 2.250% 1/31/24 106.90 7,500,000.0000 7,491,503.91 8,017,125.00 1.07 525,621.09
912828WY2 U S TREASURY NT 2.250% 7/31/21 101.77 8,000,000.0000 8,144,296.88 8,141,600.00 1.08 (2,696.88)
9128284D9 U S TREASURY NT 2.500% 3/31/23 105.89 10,000,000.0000 9,887,265.63 10,589,100.00 1.41 701,834.37
912828WJ5 U S TREASURY NT 2.500% 5/15/24 108.33 7,000,000.0000 7,193,046.88 7,582,960.00 1.01 389,913.12
913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15/21 102.75 400,000.0000 400,000.00 410,996.00 0.05 10,996.00
90331HPL1 US BANK NA MTN 2.050% 1/21/25 105.62 7,270,000.0000 7,254,514.90 7,678,210.50 1.02 423,695.60
90331HNL3 US BANK NA MTN 2.850% 1/23/23 105.47 2,000,000.0000 1,992,640.00 2,109,360.00 0.28 116,720.00
92826CAB8 VISA INC 2.200% 12/14/20 100.22 500,000.0000 501,360.00 501,100.00 0.07 (260.00)
4 of 5
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2020
CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss
931142EK5 WALMART INC 3.400% 6/26/23 108.04 3,880,000.0000 3,878,991.40 4,191,874.40 0.56 312,883.00
95000U2B8 WELLS FARGO MTN 2.625% 7/22/22 103.68 3,000,000.0000 2,954,520.00 3,110,400.00 0.41 155,880.00
Fixed Income Total 635,904,610.0300 635,113,122.7300 657,674,869.4900 87.54 22,561,746.7600
Grand Total 729,521,374.58 728,650,945.21 751,266,046.54 100.00 22,615,101.33
5 of 5
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
ACQUISITIONS
07/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 144.6100 1.000000 -144.61 144.61 0.00
07/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 464.9300 1.000000 -464.93 464.93 0.00
07/06/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 89,625.0000 1.000000 -89,625.00 89,625.00 0.00
07/07/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 79,895.8300 1.000000 -79,895.83 79,895.83 0.00
07/09/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 999,855.0800 1.000000 -999,855.08 999,855.08 0.00
07/10/2020 3135G05G4 PURCHASED PAR VALUE OF F N M A 0.250% 7/10/23 /CITIGROUP GLOBAL
MARKETS INC./6,775,000 PAR VALUE AT 99.785 %
6,775,000.0000 0.997850 -6,760,433.75 6,760,433.75 0.00
07/14/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,576.2500 1.000000 -14,576.25 14,576.25 0.00
07/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,398,472.5300 1.000000 -4,398,472.53 4,398,472.53 0.00
07/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 266,492.8700 1.000000 -266,492.87 266,492.87 0.00
07/16/2020 78015K7H1 PURCHASED PAR VALUE OF ROYAL BANK OF MTN 1.150% 6/10/25 /BMO CAPITAL
MARKETS CORP/BONDS/1,500,000 PAR VALUE AT 101.032 %
1,500,000.0000 1.010320 -1,515,480.00 1,515,480.00 0.00
07/20/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 462,924.2000 1.000000 -462,924.20 462,924.20 0.00
07/20/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 355,519.6900 1.000000 -355,519.69 355,519.69 0.00
07/21/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 258,932.4300 1.000000 -258,932.43 258,932.43 0.00
07/21/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 74,517.5000 1.000000 -74,517.50 74,517.50 0.00
07/22/2020 47787NAC3 PURCHASED PAR VALUE OF JOHN DEERE OWNER 0.00001% 11/15/24 /RBC CAPITAL
MARKETS, LLC/1,480,000 PAR VALUE AT 99.98476014 %
1,480,000.0000 0.999848 -1,479,774.45 1,479,774.45 0.00
07/22/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 65,000.0000 1.000000 -65,000.00 65,000.00 0.00
07/22/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 8,759,158.5500 1.000000 -8,759,158.55 8,759,158.55 0.00
07/23/2020 3137EAEU9 PURCHASED PAR VALUE OF F H L M C M T N 0.375% 7/21/25 /WELLS FARGO
SECURITIES, LLC/5,030,000 PAR VALUE AT 99.502 %
5,030,000.0000 0.995020 -5,004,950.60 5,004,950.60 0.00
07/27/2020 89237VAB5 PURCHASED PAR VALUE OF TOYOTA AUTO RECV 0.00001% 10/15/24 /RBC CAPITAL
MARKETS, LLC/2,960,000 PAR VALUE AT 99.9923 %
2,960,000.0000 0.999923 -2,959,772.08 2,959,772.08 0.00
07/27/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,522,312.5000 1.000000 -2,522,312.50 2,522,312.50 0.00
07/28/2020 89233GLP9 PURCHASED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 11/23/20 /DBTC
AMERICAS/COMMERCIAL PAPER/1,500,000 PAR VALUE AT 99.914778 %
1,500,000.0000 0.999148 -1,498,721.67 1,498,721.67 0.00
07/28/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 77,000.0000 1.000000 -77,000.00 77,000.00 0.00
07/29/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,000,000.0000 1.000000 -5,000,000.00 5,000,000.00 0.00
07/29/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 36,875.0000 1.000000 -36,875.00 36,875.00 0.00
07/30/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,500,000.0000 1.000000 -3,500,000.00 3,500,000.00 0.00
07/31/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 153,750.0000 1.000000 -153,750.00 153,750.00 0.00
08/04/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 233.6300 1.000000 -233.63 233.63 0.00
08/04/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 299.0400 1.000000 -299.04 299.04 0.00
08/05/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 62,500.0000 1.000000 -62,500.00 62,500.00 0.00
08/06/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 85,050.0000 1.000000 -85,050.00 85,050.00 0.00
1 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/07/2020 912796UC1 PURCHASED PAR VALUE OF U S TREASURY BILL 1/28/21 /NOMURA
SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99.94925 %
5,000,000.0000 0.999493 -4,997,462.50 4,997,462.50 0.00
08/07/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 32,500.0000 1.000000 -32,500.00 32,500.00 0.00
08/10/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 23,598.7500 1.000000 -23,598.75 23,598.75 0.00
08/12/2020 912796UC1 PURCHASED PAR VALUE OF U S TREASURY BILL 1/28/21 /NOMURA
SECURITIES INTERNATIONA/2,750,000 PAR VALUE AT 99.94836109 %
2,750,000.0000 0.999484 -2,748,579.93 2,748,579.93 0.00
08/12/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 91,484.5900 1.000000 -91,484.59 91,484.59 0.00
08/17/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,930,235.7800 1.000000 -1,930,235.78 1,930,235.78 0.00
08/17/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 788.7100 1.000000 -788.71 788.71 0.00
08/18/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 36,884.3800 1.000000 -36,884.38 36,884.38 0.00
08/18/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 622,943.0200 1.000000 -622,943.02 622,943.02 0.00
08/20/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,849.9700 1.000000 -1,849.97 1,849.97 0.00
08/21/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,914,180.3100 1.000000 -4,914,180.31 4,914,180.31 0.00
08/24/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 45,000.0000 1.000000 -45,000.00 45,000.00 0.00
08/25/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,036.8700 1.000000 -14,036.87 14,036.87 0.00
08/25/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 820,789.3800 1.000000 -820,789.38 820,789.38 0.00
08/26/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 68,750.0000 1.000000 -68,750.00 68,750.00 0.00
08/27/2020 3135G05X7 PURCHASED PAR VALUE OF F N M A 0.375% 8/25/25 /BARCLAYS CAPITAL
INC. FIXED IN/7,945,000 PAR VALUE AT 99.532 %
7,945,000.0000 0.995320 -7,907,817.40 7,907,817.40 0.00
08/27/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,000,000.0000 1.000000 -13,000,000.00 13,000,000.00 0.00
08/31/2020 912796XE4 PURCHASED PAR VALUE OF U S TREASURY BILL 2/25/21 /NOMURA
SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99.9446222 %
5,000,000.0000 0.999446 -4,997,231.11 4,997,231.11 0.00
08/31/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 37,354,375.0000 1.000000 -37,354,375.00 37,354,375.00 0.00
08/31/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 162,500.0000 1.000000 -162,500.00 162,500.00 0.00
09/01/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,531.2500 1.000000 -14,531.25 14,531.25 0.00
09/01/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,079.5000 1.000000 -3,079.50 3,079.50 0.00
09/01/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 33,330.0000 1.000000 -33,330.00 33,330.00 0.00
09/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 410.1400 1.000000 -410.14 410.14 0.00
09/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 408.3700 1.000000 -408.37 408.37 0.00
09/08/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 287,231.2500 1.000000 -287,231.25 287,231.25 0.00
09/14/2020 69371RN93 PURCHASED PAR VALUE OF PACCAR FINANCIAL MTN 2.800% 3/01/21
/MARKETAXESS CORP/600,000 PAR VALUE AT 101.181 %
600,000.0000 1.011810 -607,086.00 607,086.00 0.00
09/14/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 181,859.3800 1.000000 -181,859.38 181,859.38 0.00
09/15/2020 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
09/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,700,251.7300 1.000000 -1,700,251.73 1,700,251.73 0.00
09/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,291.4600 1.000000 -1,291.46 1,291.46 0.00
2 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/17/2020 912828WR7 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 6/30/21 /NOMURA
SECURITIES INTERNATIONA/3,000,000 PAR VALUE AT 101.57031267 %
3,000,000.0000 1.015703 -3,047,109.38 3,047,109.38 0.00
09/17/2020 912828WY2 PURCHASED PAR VALUE OF U S TREASURY NT 2.250% 7/31/21 /GOLDMAN
SACHS & CO. LLC/3,000,000 PAR VALUE AT 101.84765633 %
3,000,000.0000 1.018477 -3,055,429.69 3,055,429.69 0.00
09/18/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 582,513.2100 1.000000 -582,513.21 582,513.21 0.00
09/21/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 245,551.7800 1.000000 -245,551.78 245,551.78 0.00
09/24/2020 92826CAB8 PURCHASED PAR VALUE OF VISA INC 2.200% 12/14/20 /MARKETAXESS
CORP/500,000 PAR VALUE AT 100.272 %
500,000.0000 1.002720 -501,360.00 501,360.00 0.00
09/24/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 503,429.8500 1.000000 -503,429.85 503,429.85 0.00
09/25/2020 3137EAEX3 PURCHASED PAR VALUE OF F H L M C M T N 0.00001% 9/23/25 /CITIGROUP
GLOBAL MARKETS INC./7,660,000 PAR VALUE AT 99.699 %
7,660,000.0000 0.996990 -7,636,943.40 7,636,943.40 0.00
09/25/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,573.2500 1.000000 -28,573.25 28,573.25 0.00
09/28/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,000,000.0000 1.000000 -3,000,000.00 3,000,000.00 0.00
09/29/2020 43813KAC6 PURCHASED PAR VALUE OF HONDA AUTO 0.370% 10/18/24 /BARCLAYS
CAPITAL INC. FIXED IN/3,235,000 PAR VALUE AT 99.98531005 %
3,235,000.0000 0.999853 -3,234,524.78 3,234,524.78 0.00
09/29/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,010,625.0000 1.000000 -1,010,625.00 1,010,625.00 0.00
09/30/2020 89236TBJ3 PURCHASED PAR VALUE OF TOYOTA MOTOR MTN 2.750% 5/17/21
/MARKETAXESS CORP/1,500,000 PAR VALUE AT 101.553 %
1,500,000.0000 1.015530 -1,523,295.00 1,523,295.00 0.00
09/30/2020 912828WY2 PURCHASED PAR VALUE OF U S TREASURY NT 2.250% 7/31/21 /NOMURA
SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 101.7773438 %
5,000,000.0000 1.017773 -5,088,867.19 5,088,867.19 0.00
09/30/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 453,125.0000 1.000000 -453,125.00 453,125.00 0.00
TOTAL ACQUISITIONS 165,864,727.5700 -165,994,566.50 165,994,566.50 0.00
DISPOSITIONS
07/09/2020 9127963Q0 SOLD PAR VALUE OF U S TREASURY BILL 8/25/20 /NOMURA SECURITIES
INTERNATIONA/1,000,000 PAR VALUE AT 99.985508 %
-1,000,000.0000 0.999855 999,781.44 -999,781.44 0.00
07/10/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,760,433.7500 1.000000 6,760,433.75 -6,760,433.75 0.00
07/15/2020 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 3.846% 1/01/28 JUNE FHLMC
DUE 7/15/20
-15.8300 0.000000 15.83 -15.44 0.39
07/15/2020 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.020% 8/15/32 -116.8500 0.000000 116.85 -116.97 -0.12
07/15/2020 43815NAB0 PAID DOWN PAR VALUE OF HONDA AUTO 1.900% 4/15/22 -294,923.1300 0.000000 294,923.13 -294,902.49 20.64
07/15/2020 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820% 10/15/21 -19,064.2900 0.000000 19,064.29 -19,062.89 1.40
07/15/2020 477870AB5 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.280% 5/16/22 -176,903.8000 0.000000 176,903.80 -176,903.13 0.67
07/15/2020 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -61,704.0100 0.000000 61,704.01 -61,699.57 4.44
07/15/2020 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850% 12/15/21 -224,254.9300 0.000000 224,254.93 -224,244.70 10.23
07/15/2020 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -208,450.0500 0.000000 208,450.05 -208,434.25 15.80
07/15/2020 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -141,376.2300 0.000000 141,376.23 -139,183.79 2,192.44
07/15/2020 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -230,692.9800 0.000000 230,692.98 -230,685.51 7.47
07/15/2020 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -256,521.2300 0.020811 256,521.23 -256,497.94 23.29
3 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/15/2020 9127963Q0 SOLD PAR VALUE OF U S TREASURY BILL 8/25/20 /WELLS FARGO SECURITIES,
LLC/3,000,000 PAR VALUE AT 99.98649267 %
-3,000,000.0000 0.999865 2,999,344.33 -2,999,344.33 0.00
07/16/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,434,330.0000 1.000000 1,434,330.00 -1,434,330.00 0.00
07/20/2020 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 3.125% 12/20/26 JUNE GNMA DUE
7/20/20
-429.6500 0.000000 429.65 -436.75 -7.10
07/20/2020 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 3.875% 6/20/27 JUNE GNMA DUE
7/20/20
-1,598.8100 0.000000 1,598.81 -1,633.79 -34.98
07/20/2020 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 3.875% 4/20/30 JUNE GNMA DUE
7/20/20
-172.5700 0.000000 172.57 -171.01 1.56
07/20/2020 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 3.875% 5/20/30 JUNE GNMA DUE
7/20/20
-3,707.1700 0.000000 3,707.17 -3,669.52 37.65
07/20/2020 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 3.250% 7/20/34 JUNE GNMA DUE
7/20/20
-2,447.3400 0.000000 2,447.34 -2,445.81 1.53
07/20/2020 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -138,891.1400 0.000000 138,891.14 -136,688.41 2,202.73
07/20/2020 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -351,511.3500 0.000000 351,511.35 -351,488.71 22.64
07/20/2020 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 -118,241.6600 0.000000 118,241.66 -118,239.08 2.58
07/21/2020 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -251,103.8100 0.000000 251,103.81 -251,069.36 34.45
07/22/2020 94974BGM6 MATURED PAR VALUE OF WELLS FARGO CO MTN 2.600% 7/22/20 5,000,000 PAR
VALUE AT 100 %
-5,000,000.0000 1.000000 5,000,000.00 -5,001,650.00 -1,650.00
07/22/2020 9127963Q0 SOLD PAR VALUE OF U S TREASURY BILL 8/25/20 /MIZUHO SECURITIES USA
FXD INC/5,200,000 PAR VALUE AT 99.9915 %
-5,200,000.0000 0.999915 5,198,863.51 -5,198,863.51 0.00
07/23/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,928,988.1000 1.000000 4,928,988.10 -4,928,988.10 0.00
07/27/2020 313384ZX0 MATURED PAR VALUE OF F H L B DISC NTS 7/27/20 2,500,000 PAR VALUE AT
100 %
-2,500,000.0000 1.000000 2,498,737.50 -2,498,737.50 0.00
07/27/2020 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -5,901.5900 0.000000 5,901.59 -6,683.55 -781.96
07/27/2020 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 JUNE FNMA DUE
7/25/20
-490.0600 0.000000 490.06 -518.29 -28.23
07/27/2020 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 JUNE FNMA DUE
7/25/20
-461.7800 0.000000 461.78 -496.41 -34.63
07/27/2020 31381PDA3 PAID DOWN PAR VALUE OF F N M A #466397 3.400% 11/01/20 JUNE FNMA DUE
7/25/20
-775.2100 0.000000 775.21 -758.43 16.78
07/27/2020 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 JUNE FNMA DUE
7/25/20
-1,396.9600 0.000000 1,396.96 -1,501.73 -104.77
07/27/2020 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 JUNE FNMA DUE
7/25/20
-9.4000 0.000000 9.40 -10.11 -0.71
07/27/2020 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 JUNE FNMA DUE
7/25/20
-654.0300 0.000000 654.03 -703.08 -49.05
07/27/2020 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 3.674% 2/01/35 JUNE FNMA DUE
7/25/20
-608.2800 0.000000 608.28 -603.53 4.75
4 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/27/2020 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 JUNE FNMA DUE
7/25/20
-75.2800 0.000000 75.28 -80.93 -5.65
07/27/2020 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 JUNE FNMA DUE
7/25/20
-3,512.2900 0.000000 3,512.29 -3,775.71 -263.42
07/27/2020 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 JUNE FNMA DUE
7/25/20
-313.5900 0.000000 313.59 -331.65 -18.06
07/27/2020 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 JUNE FNMA DUE
7/25/20
-326.0900 0.000000 326.09 -344.87 -18.78
07/27/2020 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -4,314.8000 0.000000 4,314.80 -4,313.45 1.35
07/27/2020 78445JAA5 PAID DOWN PAR VALUE OF S L M A 2.51906% 4/25/23 -407.5200 0.000000 407.52 -405.87 1.65
07/27/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,664,521.4900 1.000000 2,664,521.49 -2,664,521.49 0.00
07/28/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,498,721.6700 1.000000 1,498,721.67 -1,498,721.67 0.00
07/29/2020 313384ZZ5 MATURED PAR VALUE OF F H L B DISC NTS 7/29/20 5,000,000 PAR VALUE AT
100 %
-5,000,000.0000 1.000000 4,998,750.00 -4,998,750.00 0.00
07/30/2020 912796WY1 MATURED PAR VALUE OF U S TREASURY BILL 7/30/20 3,500,000 PAR VALUE AT
100 %
-3,500,000.0000 1.000000 3,497,087.22 -3,497,087.22 0.00
08/07/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,997,462.5000 1.000000 4,997,462.50 -4,997,462.50 0.00
08/12/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,748,579.9300 1.000000 2,748,579.93 -2,748,579.93 0.00
08/17/2020 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 3.846% 1/01/28 JULY FHLMC
DUE 8/15/20
-10.7300 0.000000 10.73 -10.47 0.26
08/17/2020 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.020% 8/15/32 -120.6000 0.000000 120.60 -120.73 -0.13
08/17/2020 43815NAB0 PAID DOWN PAR VALUE OF HONDA AUTO 1.900% 4/15/22 -305,359.6800 0.000000 305,359.68 -305,338.30 21.38
08/17/2020 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820% 10/15/21 -24,281.8000 0.000000 24,281.80 -24,280.02 1.78
08/17/2020 477870AB5 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.280% 5/16/22 -234,157.1100 0.000000 234,157.11 -234,156.22 0.89
08/17/2020 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -77,806.1100 0.000000 77,806.11 -77,800.52 5.59
08/17/2020 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850% 12/15/21 -271,977.5000 0.000000 271,977.50 -271,965.10 12.40
08/17/2020 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -249,194.8900 0.000000 249,194.89 -249,176.00 18.89
08/17/2020 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -135,105.6300 0.000000 135,105.63 -133,010.44 2,095.19
08/17/2020 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -228,272.6800 0.000000 228,272.68 -228,265.28 7.40
08/17/2020 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -261,006.6500 0.000000 261,006.65 -260,982.95 23.70
08/18/2020 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -140,314.5200 0.000000 140,314.52 -138,089.22 2,225.30
08/18/2020 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -357,366.6800 0.000000 357,366.68 -357,343.67 23.01
08/18/2020 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 -118,280.5300 0.000000 118,280.53 -118,277.95 2.58
08/20/2020 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 3.125% 12/20/26 JULY GNMA DUE
8/20/20
-168.5000 0.000000 168.50 -171.28 -2.78
08/20/2020 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.875% 6/20/27 JULY GNMA DUE
8/20/20
-137.5600 0.000000 137.56 -140.57 -3.01
5 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/20/2020 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 2.875% 4/20/30 JULY GNMA DUE
8/20/20
-40.7500 0.000000 40.75 -40.38 0.37
08/20/2020 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 2.875% 5/20/30 JULY GNMA DUE
8/20/20
-347.6300 0.000000 347.63 -344.10 3.53
08/20/2020 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 3.250% 7/20/34 JULY GNMA DUE
8/20/20
-897.3900 0.000000 897.39 -896.83 0.56
08/21/2020 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -250,431.4900 0.000000 250,431.49 -250,397.13 34.36
08/21/2020 404280BF5 PURCHASE OFFER PAR VALUE OF HSBC HOLDINGS PLC 2.650% 1/05/22
/TENDER/PURCHASE OFFER/TENDER OFFER PAID AT $1031.40 PER $1000
-4,500,000.0000 1.031400 4,641,300.00 -4,429,980.00 211,320.00
08/25/2020 9127963Q0 MATURED PAR VALUE OF U S TREASURY BILL 8/25/20 800,000 PAR VALUE AT
100 %
-800,000.0000 1.000000 799,825.16 -799,825.16 0.00
08/25/2020 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -10,766.0500 0.000000 10,766.05 -12,192.55 -1,426.50
08/25/2020 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 JULY FNMA DUE
8/25/20
-128.9100 0.000000 128.91 -136.34 -7.43
08/25/2020 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 JULY FNMA DUE
8/25/20
-1,365.5600 0.000000 1,365.56 -1,467.98 -102.42
08/25/2020 31381PDA3 PAID DOWN PAR VALUE OF F N M A #466397 3.400% 11/01/20 JULY FNMA DUE
8/25/20
-734.1500 0.000000 734.15 -718.26 15.89
08/25/2020 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 JULY FNMA DUE
8/25/20
-1,201.1000 0.000000 1,201.10 -1,291.18 -90.08
08/25/2020 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 JULY FNMA DUE
8/25/20
-9.4400 0.000000 9.44 -10.15 -0.71
08/25/2020 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 JULY FNMA DUE
8/25/20
-3,898.3800 0.000000 3,898.38 -4,190.76 -292.38
08/25/2020 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 3.674% 2/01/35 JULY FNMA DUE
8/25/20
-858.4000 0.000000 858.40 -851.69 6.71
08/25/2020 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 JULY FNMA DUE
8/25/20
-581.4700 0.000000 581.47 -625.08 -43.61
08/25/2020 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 JULY FNMA DUE
8/25/20
-4,900.0400 0.000000 4,900.04 -5,267.54 -367.50
08/25/2020 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 JULY FNMA DUE
8/25/20
-154.6200 0.000000 154.62 -163.53 -8.91
08/25/2020 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 JULY FNMA DUE
8/25/20
-292.0300 0.000000 292.03 -308.85 -16.82
08/25/2020 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -3,157.3500 0.000000 3,157.35 -3,156.36 0.99
08/27/2020 912796XG9 MATURED PAR VALUE OF U S TREASURY BILL 8/27/20 13,000,000 PAR VALUE
AT 100 %
-13,000,000.0000 1.000000 12,995,164.01 -12,995,164.01 0.00
08/27/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,907,817.4000 1.000000 7,907,817.40 -7,907,817.40 0.00
08/31/2020 459052E28 MATURED PAR VALUE OF INTL BK DISC NTS 8/31/20 5,000,000 PAR VALUE AT
100 %
-5,000,000.0000 1.000000 5,000,000.00 -4,993,483.33 6,516.67
6 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/31/2020 912828L32 MATURED PAR VALUE OF U S TREASURY NT 1.375% 8/31/20 15,000,000 PAR
VALUE AT 100 %
-15,000,000.0000 1.000000 15,000,000.00 -14,977,929.69 22,070.31
08/31/2020 912828VV9 MATURED PAR VALUE OF U S TREASURY NT 2.125% 8/31/20 15,000,000 PAR
VALUE AT 100 %
-15,000,000.0000 1.000000 15,000,000.00 -15,049,804.69 -49,804.69
08/31/2020 9128284Y3 MATURED PAR VALUE OF U S TREASURY NT 2.625% 8/31/20 7,000,000 PAR VALUE
AT 100 %
-7,000,000.0000 1.000000 7,000,000.00 -7,042,382.81 -42,382.81
08/31/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -49,997,231.1100 1.000000 49,997,231.11 -49,997,231.11 0.00
09/01/2020 83162CLJ0 PAID DOWN PAR VALUE OF S B A GTD DEV PART 6.340% 3/01/21 -2,893.1700 0.000000 2,893.17 -2,893.17 0.00
09/14/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -607,692.6700 1.000000 607,692.67 -607,692.67 0.00
09/15/2020 9127963Y3 MATURED PAR VALUE OF U S TREASURY BILL 9/15/20 7,000,000 PAR VALUE AT
100 %
-7,000,000.0000 1.000000 6,997,021.50 -6,997,021.50 0.00
09/15/2020 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 3.845% 1/01/28 AUGUST FHLMC
DUE 9/15/20
-21.1000 0.000000 21.10 -20.59 0.51
09/15/2020 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.020% 8/15/32 -163.7000 0.000000 163.70 -163.87 -0.17
09/15/2020 43815NAB0 PAID DOWN PAR VALUE OF HONDA AUTO 1.900% 4/15/22 -286,303.2600 0.000000 286,303.26 -286,283.22 20.04
09/15/2020 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820% 10/15/21 -18,876.4400 0.000000 18,876.44 -18,875.06 1.38
09/15/2020 477870AB5 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.280% 5/16/22 -156,970.1000 0.000000 156,970.10 -156,969.50 0.60
09/15/2020 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -66,121.2300 0.000000 66,121.23 -66,116.48 4.75
09/15/2020 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850% 12/15/21 -209,611.5600 0.000000 209,611.56 -209,602.00 9.56
09/15/2020 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -226,460.2900 0.000000 226,460.29 -226,443.12 17.17
09/15/2020 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -125,754.8000 0.000000 125,754.80 -123,804.62 1,950.18
09/15/2020 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -215,436.2500 0.000000 215,436.25 -215,429.27 6.98
09/15/2020 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -246,803.8200 0.000000 246,803.82 -246,781.41 22.41
09/17/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,125,028.8800 1.000000 6,125,028.88 -6,125,028.88 0.00
09/18/2020 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -124,157.9600 0.000000 124,157.96 -122,188.89 1,969.07
09/18/2020 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -327,886.2500 0.000000 327,886.25 -327,865.13 21.12
09/18/2020 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 -107,312.6600 0.000000 107,312.66 -107,310.32 2.34
09/21/2020 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 3.125% 12/20/26 AUGUST GNMA
DUE 9/20/20
-192.9500 0.000000 192.95 -196.14 -3.19
09/21/2020 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.875% 6/20/27 AUGUST GNMA
DUE 9/20/20
-112.5100 0.000000 112.51 -114.97 -2.46
09/21/2020 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 2.875% 4/20/30 AUGUST GNMA
DUE 9/20/20
-43.0400 0.000000 43.04 -42.65 0.39
09/21/2020 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 2.875% 5/20/30 AUGUST GNMA
DUE 9/20/20
-925.2900 0.000000 925.29 -915.89 9.40
09/21/2020 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 3.250% 7/20/34 AUGUST GNMA
DUE 9/20/20
-182.3200 0.000000 182.32 -182.21 0.11
09/21/2020 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -237,245.9700 0.000000 237,245.97 -237,213.42 32.55
7 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/24/2020 912828L99 SOLD PAR VALUE OF U S TREASURY NT 1.375% 10/31/20 /J.P. MORGAN
SECURITIES LLC/500,000 PAR VALUE AT 100.136718 %
-500,000.0000 1.001367 500,683.59 -492,618.86 8,064.73
09/24/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -504,415.5600 1.000000 504,415.56 -504,415.56 0.00
09/25/2020 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -7,402.5000 0.000000 7,402.50 -8,383.33 -980.83
09/25/2020 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 AUGUST FNMA
DUE 9/25/20
-838.0600 0.000000 838.06 -886.33 -48.27
09/25/2020 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 AUGUST FNMA
DUE 9/25/20
-843.0400 0.000000 843.04 -906.27 -63.23
09/25/2020 31381PDA3 PAID DOWN PAR VALUE OF F N M A #466397 3.400% 11/01/20 AUGUST FNMA
DUE 9/25/20
-737.2000 0.000000 737.20 -721.25 15.95
09/25/2020 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 AUGUST FNMA
DUE 9/25/20
-1,829.2900 0.000000 1,829.29 -1,966.49 -137.20
09/25/2020 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 AUGUST FNMA
DUE 9/25/20
-8.9500 0.000000 8.95 -9.62 -0.67
09/25/2020 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 AUGUST FNMA
DUE 9/25/20
-2,096.9200 0.000000 2,096.92 -2,254.19 -157.27
09/25/2020 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 3.674% 2/01/35 AUGUST FNMA
DUE 9/25/20
-423.0400 0.000000 423.04 -419.73 3.31
09/25/2020 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 AUGUST FNMA
DUE 9/25/20
-256.7600 0.000000 256.76 -276.02 -19.26
09/25/2020 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 AUGUST FNMA
DUE 9/25/20
-2,920.0400 0.000000 2,920.04 -3,139.04 -219.00
09/25/2020 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 AUGUST FNMA
DUE 9/25/20
-193.0900 0.000000 193.09 -204.21 -11.12
09/25/2020 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 AUGUST FNMA
DUE 9/25/20
-304.4600 0.000000 304.46 -322.00 -17.54
09/25/2020 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -4,050.3200 0.000000 4,050.32 -4,049.05 1.27
09/25/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,636,943.4000 1.000000 7,636,943.40 -7,636,943.40 0.00
09/28/2020 313312H60 MATURED PAR VALUE OF F F C B DISC NTS 9/28/20 3,000,000 PAR VALUE AT
100 %
-3,000,000.0000 1.000000 2,998,615.83 -2,998,615.83 0.00
09/29/2020 46625HNX4 FULL CALL PAR VALUE OF JPMORGAN CHASE CO 2.550% 10/29/20 /CALLS/ -1,000,000.0000 1.000000 1,000,000.00 -1,005,900.00 -5,900.00
09/29/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,234,524.7800 1.000000 3,234,524.78 -3,234,524.78 0.00
09/30/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,646,049.8700 1.000000 6,646,049.87 -6,646,049.87 0.00
TOTAL DISPOSITIONS -212,252,819.0900 212,377,993.18 -212,221,934.61 156,058.57
OTHER TRANSACTIONS
07/01/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
6/30/2020 INTEREST FROM 6/1/20 TO 6/30/20
0.0000 0.000000 144.61 0.00 0.00
07/01/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
6/30/2020 INTEREST FROM 6/1/20 TO 6/30/20
0.0000 0.000000 464.93 0.00 0.00
8 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/06/2020 3135G0S38 INTEREST EARNED ON F N M A 2.000% 1/05/22 $1 PV ON 3000000.0000
SHARES DUE 7/5/2020
0.0000 0.000000 30,000.00 0.00 0.00
07/06/2020 404280BF5 INTEREST EARNED ON HSBC HOLDINGS PLC 2.650% 1/05/22 $1 PV ON
4500000.0000 SHARES DUE 7/5/2020
0.0000 0.000000 59,625.00 0.00 0.00
07/07/2020 3135G0X24 INTEREST EARNED ON F N M A 1.625% 1/07/25 $1 PV ON 10000000.0000
SHARES DUE 7/7/2020
0.0000 0.000000 79,895.83 0.00 0.00
07/09/2020 9127963Q0 INTEREST EARNED ON U S TREASURY BILL 8/25/20 $1 PV ON 1000000.0000
SHARES DUE 7/8/2020 1,000,000 PAR VALUE AT 99.985508 %
0.0000 0.000000 73.64 0.00 0.00
07/13/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -2392.00 UNITS
DECREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
07/13/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -2392.00 UNITS
DECREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 -2,392.00 0.00
07/13/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -2392.0000 UNITS
DECREASE TO ADJUST FOR CHANGE IN CPI
-2,392.0000 0.000000 0.00 0.00 0.00
07/13/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -2392.00 UNITS
DECREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
07/14/2020 02665WCJ8 INTEREST EARNED ON AMERICAN HONDA MTN 3.450% 7/14/23 $1 PV ON
845000.0000 SHARES DUE 7/14/2020
0.0000 0.000000 14,576.25 0.00 0.00
07/15/2020 31348SWZ3 INTEREST EARNED ON F H L M C #786064 3.846% 1/01/28 $1 PV ON 5.3700 SHARES
DUE 7/15/2020 MAY FHLMC DUE 7/15/20
0.0000 0.000000 5.37 0.00 0.00
07/15/2020 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.020% 8/15/32 $1 PV ON 17.3000
SHARES DUE 7/15/2020 $0.00335/PV ON 5,161.50 PV DUE 7/15/20
0.0000 0.000000 17.30 0.00 0.00
07/15/2020 43815NAB0 INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22 $1 PV ON 4858.8500
SHARES DUE 7/15/2020 $0.00158/PV ON 3,068,744.89 PV DUE 7/15/20
0.0000 0.000000 4,858.85 0.00 0.00
07/15/2020 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 123.6400
SHARES DUE 7/15/2020 $0.00152/PV ON 81,522.74 PV DUE 7/15/20
0.0000 0.000000 123.64 0.00 0.00
07/15/2020 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22 $1 PV ON 3440.0700
SHARES DUE 7/15/2020 $0.00190/PV ON 1,810,561.56 PV DUE 7/15/20
0.0000 0.000000 3,440.07 0.00 0.00
07/15/2020 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22 $1 PV ON 1324.0200
SHARES DUE 7/15/2020 $0.00222/PV ON 597,304.53 PV DUE 7/15/20
0.0000 0.000000 1,324.02 0.00 0.00
07/15/2020 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 2673.7100
SHARES DUE 7/15/2020 $0.00238/PV ON 1,125,770.32 PV DUE 7/15/20
0.0000 0.000000 2,673.71 0.00 0.00
07/15/2020 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 9203.4700
SHARES DUE 7/15/2020 $0.00257/PV ON 3,585,766.52 PV DUE 7/15/20
0.0000 0.000000 9,203.47 0.00 0.00
07/15/2020 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 3143.3300
SHARES DUE 7/15/2020 $0.00153/PV ON 2,050,000.00 PV DUE 7/15/20
0.0000 0.000000 3,143.33 0.00 0.00
07/15/2020 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750% 10/15/21 $1 PV ON 1013.3800
SHARES DUE 7/15/2020 $0.00146/PV ON 694,887.24 PV DUE 7/15/20
0.0000 0.000000 1,013.38 0.00 0.00
07/15/2020 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 6730.8700
SHARES DUE 7/15/2020 $0.00161/PV ON 4,185,000.00 PV DUE 7/15/20
0.0000 0.000000 6,730.87 0.00 0.00
9 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/15/2020 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 8975.7900
SHARES DUE 7/15/2020 $0.00255/PV ON 3,519,918.89 PV DUE 7/15/20
0.0000 0.000000 8,975.79 0.00 0.00
07/15/2020 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830% 10/15/21 $1 PV ON 2818.8500
SHARES DUE 7/15/2020 $0.00236/PV ON 1,195,272.54 PV DUE 7/15/20
0.0000 0.000000 2,818.85 0.00 0.00
07/15/2020 9127963Q0 INTEREST EARNED ON U S TREASURY BILL 8/25/20 $1 PV ON 3000000.0000
SHARES DUE 7/14/2020 3,000,000 PAR VALUE AT 99.98649267 %
0.0000 0.000000 250.45 0.00 0.00
07/15/2020 912828WU0 INTEREST EARNED ON U S TREASURY I P S 0.125% 7/15/24 $1 PV ON
11229816.0000 SHARES DUE 7/15/2020
0.0000 0.000000 7,018.64 0.00 0.00
07/16/2020 78013XZU5 INTEREST EARNED ON ROYAL BANK OF MTN 2.550% 7/16/24 $1 PV ON
6500000.0000 SHARES DUE 7/16/2020
0.0000 0.000000 82,875.00 0.00 0.00
07/16/2020 78015K7H1 PAID ACCRUED INTEREST ON PURCHASE OF ROYAL BANK OF MTN 1.150% 6/10/25 0.0000 0.000000 -1,725.00 0.00 0.00
07/20/2020 3135G0T94 INTEREST EARNED ON F N M A DEB 2.375% 1/19/23 $1 PV ON 5000000.0000
SHARES DUE 7/19/2020
0.0000 0.000000 59,375.00 0.00 0.00
07/20/2020 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 3.125% 12/20/26 $1 PV ON 34.8400
SHARES DUE 7/20/2020 JUNE GNMA DUE 7/20/20
0.0000 0.000000 34.84 0.00 0.00
07/20/2020 36225CC20 INTEREST EARNED ON G N M A I I #080088 3.875% 6/20/27 $1 PV ON 36.1700
SHARES DUE 7/20/2020 JUNE GNMA DUE 7/20/20
0.0000 0.000000 36.17 0.00 0.00
07/20/2020 36225CNM4 INTEREST EARNED ON G N M A I I #080395 3.875% 4/20/30 $1 PV ON 17.6900
SHARES DUE 7/20/2020 JUNE GNMA DUE 7/20/20
0.0000 0.000000 17.69 0.00 0.00
07/20/2020 36225CN28 INTEREST EARNED ON G N M A I I #080408 3.875% 5/20/30 $1 PV ON 138.2900
SHARES DUE 7/20/2020 JUNE GNMA DUE 7/20/20
0.0000 0.000000 138.29 0.00 0.00
07/20/2020 36225DCB8 INTEREST EARNED ON G N M A I I #080965 3.250% 7/20/34 $1 PV ON 101.6000
SHARES DUE 7/20/2020 JUNE GNMA DUE 7/20/20
0.0000 0.000000 101.60 0.00 0.00
07/20/2020 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 1080.3600
SHARES DUE 7/18/2020 $0.00149/PV ON 724,262.26 PV DUE 7/18/20
0.0000 0.000000 1,080.36 0.00 0.00
07/20/2020 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 3995.8400
SHARES DUE 7/18/2020 $0.00229/PV ON 1,743,638.56 PV DUE 7/18/20
0.0000 0.000000 3,995.84 0.00 0.00
07/20/2020 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22 $1 PV ON 3214.4100
SHARES DUE 7/18/2020 $0.00251/PV ON 1,281,491.33 PV DUE 7/18/20
0.0000 0.000000 3,214.41 0.00 0.00
07/20/2020 4581X0CW6 INTEREST EARNED ON INTER AMER DEV BK 2.125% 1/18/22 $1 PV ON
3000000.0000 SHARES DUE 7/18/2020
0.0000 0.000000 31,875.00 0.00 0.00
07/20/2020 45950KCJ7 INTEREST EARNED ON INTL FINANCE CORP 1.125% 7/20/21 $1 PV ON 2500000.0000
SHARES DUE 7/20/2020
0.0000 0.000000 14,075.00 0.00 0.00
07/20/2020 89114QC48 INTEREST EARNED ON TORONTO MTN 3.500% 7/19/23 $1 PV ON 5000000.0000
SHARES DUE 7/19/2020
0.0000 0.000000 87,500.00 0.00 0.00
07/21/2020 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22 $1 PV ON 7828.6200
SHARES DUE 7/21/2020 $0.00246/PV ON 3,184,523.11 PV DUE 7/21/20
0.0000 0.000000 7,828.62 0.00 0.00
07/21/2020 90331HPL1 INTEREST EARNED ON US BANK NA MTN 2.050% 1/21/25 $1 PV ON 7270000.0000
SHARES DUE 7/21/2020
0.0000 0.000000 74,517.50 0.00 0.00
07/22/2020 9127963Q0 INTEREST EARNED ON U S TREASURY BILL 8/25/20 $1 PV ON 5200000.0000
SHARES DUE 7/21/2020 5,200,000 PAR VALUE AT 99.9915 %
0.0000 0.000000 694.49 0.00 0.00
10 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/22/2020 94974BGM6 INTEREST EARNED ON WELLS FARGO CO MTN 2.600% 7/22/20 $1 PV ON
5000000.0000 SHARES DUE 7/22/2020 INTEREST ON 7/22/20 MATURITY
0.0000 0.000000 65,000.00 0.00 0.00
07/22/2020 95000U2B8 INTEREST EARNED ON WELLS FARGO MTN 2.625% 7/22/22 $1 PV ON
3000000.0000 SHARES DUE 7/22/2020
0.0000 0.000000 39,375.00 0.00 0.00
07/23/2020 46647PAU0 INTEREST EARNED ON JPMORGAN CHASE CO 3.797% 7/23/24 $1 PV ON
2500000.0000 SHARES DUE 7/23/2020
0.0000 0.000000 47,462.50 0.00 0.00
07/23/2020 90331HNL3 INTEREST EARNED ON US BANK NA MTN 2.850% 1/23/23 $1 PV ON 2000000.0000
SHARES DUE 7/23/2020
0.0000 0.000000 28,500.00 0.00 0.00
07/27/2020 03215PFN4 INTEREST EARNED ON AMRESCO 1.19948% 6/25/29 $1 PV ON 118.9700
SHARES DUE 7/25/2020 $0.00100/PV ON 119,021.64 PV DUE 7/25/20
0.0000 0.000000 118.97 0.00 0.00
07/27/2020 808513AT2 INTEREST EARNED ON CHARLES SCHWAB CORP 2.650% 1/25/23 $1 PV ON
6750000.0000 SHARES DUE 7/25/2020
0.0000 0.000000 89,437.50 0.00 0.00
07/27/2020 3133EKWV4 INTEREST EARNED ON F F C B DEB 1.850% 7/26/24 $1 PV ON 5000000.0000
SHARES DUE 7/26/2020
0.0000 0.000000 46,250.00 0.00 0.00
07/27/2020 313384ZX0 INTEREST EARNED ON F H L B DISC NTS 7/27/20 $1 PV ON 2500000.0000
SHARES DUE 7/27/2020 2,500,000 PAR VALUE AT 100 %
0.0000 0.000000 1,262.50 0.00 0.00
07/27/2020 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 3302.7900
SHARES DUE 7/25/2020 $0.00542/PV ON 609,746.75 PV DUE 7/25/20
0.0000 0.000000 3,302.79 0.00 0.00
07/27/2020 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 47.1100 SHARES
DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 47.11 0.00 0.00
07/27/2020 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 353.1500
SHARES DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 353.15 0.00 0.00
07/27/2020 31381PDA3 INTEREST EARNED ON F N M A #466397 3.400% 11/01/20 $1 PV ON 936.9700
SHARES DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 936.97 0.00 0.00
07/27/2020 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 334.2500
SHARES DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 334.25 0.00 0.00
07/27/2020 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 7.0800 SHARES
DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 7.08 0.00 0.00
07/27/2020 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 529.3300
SHARES DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 529.33 0.00 0.00
07/27/2020 31406XWT5 INTEREST EARNED ON F N M A #823358 3.674% 2/01/35 $1 PV ON 289.5800
SHARES DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 289.58 0.00 0.00
07/27/2020 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 67.9700 SHARES
DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 67.97 0.00 0.00
07/27/2020 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 648.1400
SHARES DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 648.14 0.00 0.00
07/27/2020 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 31.2900
SHARES DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 31.29 0.00 0.00
07/27/2020 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 50.1700
SHARES DUE 7/25/2020 JUNE FNMA DUE 7/25/20
0.0000 0.000000 50.17 0.00 0.00
11 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
07/27/2020 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 113.6500
SHARES DUE 7/25/2020 $0.00072/PV ON 157,756.33 PV DUE 7/25/20
0.0000 0.000000 113.65 0.00 0.00
07/27/2020 459058FY4 INTEREST EARNED ON INTL BK 2.000% 1/26/22 $1 PV ON 10000000.0000
SHARES DUE 7/26/2020
0.0000 0.000000 100,000.00 0.00 0.00
07/27/2020 45950KCM0 INTEREST EARNED ON INTL BK M T N 2.250% 1/25/21 $1 PV ON 2970000.0000
SHARES DUE 7/25/2020
0.0000 0.000000 33,412.50 0.00 0.00
07/27/2020 78445JAA5 INTEREST EARNED ON S L M A 2.51906% 4/25/23 $1 PV ON 73.2600 SHARES
DUE 7/25/2020 $0.00630/PV ON 11,633.32 PV DUE 7/25/20
0.0000 0.000000 73.26 0.00 0.00
07/27/2020 89114QBX5 INTEREST EARNED ON TORONTO DOMINION MTN 2.550% 1/25/21 $1 PV ON
1750000.0000 SHARES DUE 7/25/2020
0.0000 0.000000 22,312.50 0.00 0.00
07/28/2020 61747WAL3 INTEREST EARNED ON MORGAN STANLEY 5.500% 7/28/21 $1 PV ON
2800000.0000 SHARES DUE 7/28/2020
0.0000 0.000000 77,000.00 0.00 0.00
07/29/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 104.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
07/29/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 104.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 104.00 0.00
07/29/2020 06406RAE7 INTEREST EARNED ON BANK OF NY MTN 2.950% 1/29/23 $1 PV ON 2500000.0000
SHARES DUE 7/29/2020
0.0000 0.000000 36,875.00 0.00 0.00
07/29/2020 313384ZZ5 INTEREST EARNED ON F H L B DISC NTS 7/29/20 $1 PV ON 5000000.0000
SHARES DUE 7/29/2020 5,000,000 PAR VALUE AT 100 %
0.0000 0.000000 1,250.00 0.00 0.00
07/29/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 104.0000 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
104.0000 0.000000 0.00 0.00 0.00
07/29/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 104.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
07/30/2020 912796WY1 INTEREST EARNED ON U S TREASURY BILL 7/30/20 $1 PV ON 3500000.0000
SHARES DUE 7/30/2020 3,500,000 PAR VALUE AT 100 %
0.0000 0.000000 2,912.78 0.00 0.00
07/31/2020 912828N89 INTEREST EARNED ON U S TREASURY NT 1.375% 1/31/21 $1 PV ON 6000000.0000
SHARES DUE 7/31/2020
0.0000 0.000000 41,250.00 0.00 0.00
07/31/2020 912828V72 INTEREST EARNED ON U S TREASURY NT 1.875% 1/31/22 $1 PV ON 3000000.0000
SHARES DUE 7/31/2020
0.0000 0.000000 28,125.00 0.00 0.00
07/31/2020 912828V80 INTEREST EARNED ON U S TREASURY NT 2.250% 1/31/24 $1 PV ON 7500000.0000
SHARES DUE 7/31/2020
0.0000 0.000000 84,375.00 0.00 0.00
08/03/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
7/31/2020 INTEREST FROM 7/1/20 TO 7/31/20
0.0000 0.000000 233.63 0.00 0.00
08/03/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
7/31/2020 INTEREST FROM 7/1/20 TO 7/31/20
0.0000 0.000000 299.04 0.00 0.00
08/05/2020 3135G0V34 INTEREST EARNED ON F N M A 2.500% 2/05/24 $1 PV ON 5000000.0000
SHARES DUE 8/5/2020
0.0000 0.000000 62,500.00 0.00 0.00
08/06/2020 44932HAH6 INTEREST EARNED ON IBM CREDIT CORP 3.000% 2/06/23 $1 PV ON 5670000.0000
SHARES DUE 8/6/2020
0.0000 0.000000 85,050.00 0.00 0.00
12 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/07/2020 06406RAA5 INTEREST EARNED ON BANK OF NY MTN 2.600% 2/07/22 $1 PV ON 2500000.0000
SHARES DUE 8/7/2020
0.0000 0.000000 32,500.00 0.00 0.00
08/10/2020 594918BP8 INTEREST EARNED ON MICROSOFT CORP 1.550% 8/08/21 $1 PV ON 3045000.0000
SHARES DUE 8/8/2020
0.0000 0.000000 23,598.75 0.00 0.00
08/12/2020 3137EAEP0 INTEREST EARNED ON F H L M C 1.500% 2/12/25 $1 PV ON 12335000.0000
SHARES DUE 8/12/2020
0.0000 0.000000 91,484.59 0.00 0.00
08/13/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 27768.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
08/13/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 27768.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 27,768.00 0.00
08/13/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 27768.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
27,768.0000 0.000000 0.00 0.00 0.00
08/13/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 27768.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
08/17/2020 3137EAEL9 INTEREST EARNED ON F H L M C M T N 2.375% 2/16/21 $1 PV ON 7500000.0000
SHARES DUE 8/16/2020
0.0000 0.000000 89,062.50 0.00 0.00
08/17/2020 31348SWZ3 INTEREST EARNED ON F H L M C #786064 3.846% 1/01/28 $1 PV ON 5.3200 SHARES
DUE 8/15/2020 JUNE FHLMC DUE 8/15/20
0.0000 0.000000 5.32 0.00 0.00
08/17/2020 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.020% 8/15/32 $1 PV ON 16.9100
SHARES DUE 8/15/2020 $0.00335/PV ON 5,044.65 PV DUE 8/15/20
0.0000 0.000000 16.91 0.00 0.00
08/17/2020 43815NAB0 INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22 $1 PV ON 4391.8900
SHARES DUE 8/15/2020 $0.00158/PV ON 2,773,821.76 PV DUE 8/15/20
0.0000 0.000000 4,391.89 0.00 0.00
08/17/2020 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 94.7300
SHARES DUE 8/15/2020 $0.00152/PV ON 62,458.45 PV DUE 8/15/20
0.0000 0.000000 94.73 0.00 0.00
08/17/2020 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22 $1 PV ON 3103.9500
SHARES DUE 8/15/2020 $0.00190/PV ON 1,633,657.76 PV DUE 8/15/20
0.0000 0.000000 3,103.95 0.00 0.00
08/17/2020 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22 $1 PV ON 1187.2500
SHARES DUE 8/15/2020 $0.00222/PV ON 535,600.52 PV DUE 8/15/20
0.0000 0.000000 1,187.25 0.00 0.00
08/17/2020 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 2141.1000
SHARES DUE 8/15/2020 $0.00238/PV ON 901,515.39 PV DUE 8/15/20
0.0000 0.000000 2,141.10 0.00 0.00
08/17/2020 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 8668.4400
SHARES DUE 8/15/2020 $0.00257/PV ON 3,377,316.47 PV DUE 8/15/20
0.0000 0.000000 8,668.44 0.00 0.00
08/17/2020 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 3143.3300
SHARES DUE 8/15/2020 $0.00153/PV ON 2,050,000.00 PV DUE 8/15/20
0.0000 0.000000 3,143.33 0.00 0.00
08/17/2020 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750% 10/15/21 $1 PV ON 807.2000
SHARES DUE 8/15/2020 $0.00146/PV ON 553,511.01 PV DUE 8/15/20
0.0000 0.000000 807.20 0.00 0.00
08/17/2020 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 6730.8700
SHARES DUE 8/15/2020 $0.00161/PV ON 4,185,000.00 PV DUE 8/15/20
0.0000 0.000000 6,730.87 0.00 0.00
08/17/2020 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 8387.5300
SHARES DUE 8/15/2020 $0.00255/PV ON 3,289,225.91 PV DUE 8/15/20
0.0000 0.000000 8,387.53 0.00 0.00
13 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/17/2020 69353RFB9 INTEREST EARNED ON PNC BANK NA MTN 2.625% 2/17/22 $1 PV ON 1000000.0000
SHARES DUE 8/17/2020
0.0000 0.000000 13,125.00 0.00 0.00
08/17/2020 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830% 10/15/21 $1 PV ON 2213.8900
SHARES DUE 8/15/2020 $0.00236/PV ON 938,751.31 PV DUE 8/15/20
0.0000 0.000000 2,213.89 0.00 0.00
08/17/2020 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.264% 10/15/24 $1 PV ON 651.2000
SHARES DUE 8/15/2020 $0.00022/PV ON 2,960,000.00 PV DUE 8/15/20
0.0000 0.000000 651.20 0.00 0.00
08/18/2020 3130A7CV5 INTEREST EARNED ON F H L B DEB 1.375% 2/18/21 $1 PV ON 5365000.0000
SHARES DUE 8/18/2020
0.0000 0.000000 36,884.38 0.00 0.00
08/18/2020 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 873.1800
SHARES DUE 8/18/2020 $0.00149/PV ON 585,371.12 PV DUE 8/18/20
0.0000 0.000000 873.18 0.00 0.00
08/18/2020 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 3190.2900
SHARES DUE 8/18/2020 $0.00229/PV ON 1,392,127.21 PV DUE 8/18/20
0.0000 0.000000 3,190.29 0.00 0.00
08/18/2020 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22 $1 PV ON 2917.8200
SHARES DUE 8/18/2020 $0.00251/PV ON 1,163,249.67 PV DUE 8/18/20
0.0000 0.000000 2,917.82 0.00 0.00
08/20/2020 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 3.125% 12/20/26 $1 PV ON 33.7200
SHARES DUE 8/20/2020 JULY GNMA DUE 8/20/20
0.0000 0.000000 33.72 0.00 0.00
08/20/2020 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.875% 6/20/27 $1 PV ON 23.0100
SHARES DUE 8/20/2020 JULY GNMA DUE 8/20/20
0.0000 0.000000 23.01 0.00 0.00
08/20/2020 36225CNM4 INTEREST EARNED ON G N M A I I #080395 2.875% 4/20/30 $1 PV ON 12.7100
SHARES DUE 8/20/2020 JULY GNMA DUE 8/20/20
0.0000 0.000000 12.71 0.00 0.00
08/20/2020 36225CN28 INTEREST EARNED ON G N M A I I #080408 2.875% 5/20/30 $1 PV ON 93.7200
SHARES DUE 8/20/2020 JULY GNMA DUE 8/20/20
0.0000 0.000000 93.72 0.00 0.00
08/20/2020 36225DCB8 INTEREST EARNED ON G N M A I I #080965 3.250% 7/20/34 $1 PV ON 94.9800
SHARES DUE 8/20/2020 JULY GNMA DUE 8/20/20
0.0000 0.000000 94.98 0.00 0.00
08/21/2020 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22 $1 PV ON 7211.3200
SHARES DUE 8/21/2020 $0.00246/PV ON 2,933,419.30 PV DUE 8/21/20
0.0000 0.000000 7,211.32 0.00 0.00
08/21/2020 404280BF5 INTEREST EARNED ON HSBC HOLDINGS PLC 2.650% 1/05/22 $1 PV ON
4500000.0000 SHARES DUE 8/18/2020 $3.38611 PER $1000 ACCD INT (46 DAYS)
0.0000 0.000000 15,237.50 0.00 0.00
08/24/2020 037833BS8 INTEREST EARNED ON APPLE INC 2.250% 2/23/21 $1 PV ON 4000000.0000
SHARES DUE 8/23/2020
0.0000 0.000000 45,000.00 0.00 0.00
08/25/2020 03215PFN4 INTEREST EARNED ON AMRESCO 1.07458% 6/25/29 $1 PV ON 106.5800
SHARES DUE 8/25/2020 $0.00090/PV ON 119,021.64 PV DUE 8/25/20
0.0000 0.000000 106.58 0.00 0.00
08/25/2020 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 3270.8200
SHARES DUE 8/25/2020 $0.00542/PV ON 603,845.16 PV DUE 8/25/20
0.0000 0.000000 3,270.82 0.00 0.00
08/25/2020 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 45.2700 SHARES
DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 45.27 0.00 0.00
08/25/2020 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 351.2300
SHARES DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 351.23 0.00 0.00
08/25/2020 31381PDA3 INTEREST EARNED ON F N M A #466397 3.400% 11/01/20 $1 PV ON 965.9300
SHARES DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 965.93 0.00 0.00
14 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/25/2020 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 328.4300
SHARES DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 328.43 0.00 0.00
08/25/2020 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 7.0400 SHARES
DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 7.04 0.00 0.00
08/25/2020 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 526.6100
SHARES DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 526.61 0.00 0.00
08/25/2020 31406XWT5 INTEREST EARNED ON F N M A #823358 3.674% 2/01/35 $1 PV ON 287.7200
SHARES DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 287.72 0.00 0.00
08/25/2020 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 67.6500 SHARES
DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 67.65 0.00 0.00
08/25/2020 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 633.5100
SHARES DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 633.51 0.00 0.00
08/25/2020 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 30.1100
SHARES DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 30.11 0.00 0.00
08/25/2020 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 48.9500
SHARES DUE 8/25/2020 JULY FNMA DUE 8/25/20
0.0000 0.000000 48.95 0.00 0.00
08/25/2020 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 108.9000
SHARES DUE 8/25/2020 $0.00071/PV ON 153,441.53 PV DUE 8/25/20
0.0000 0.000000 108.90 0.00 0.00
08/25/2020 9127963Q0 INTEREST EARNED ON U S TREASURY BILL 8/25/20 $1 PV ON 800000.0000
SHARES DUE 8/25/2020 800,000 PAR VALUE AT 100 %
0.0000 0.000000 174.84 0.00 0.00
08/26/2020 3135G0J20 INTEREST EARNED ON F N M A DEB 1.375% 2/26/21 $1 PV ON 10000000.0000
SHARES DUE 8/26/2020
0.0000 0.000000 68,750.00 0.00 0.00
08/27/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 31720.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
08/27/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 31720.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 31,720.00 0.00
08/27/2020 912796XG9 INTEREST EARNED ON U S TREASURY BILL 8/27/20 $1 PV ON 13000000.0000
SHARES DUE 8/27/2020 13,000,000 PAR VALUE AT 100 %
0.0000 0.000000 4,835.99 0.00 0.00
08/27/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 31720.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
31,720.0000 0.000000 0.00 0.00 0.00
08/27/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 31720.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
08/31/2020 CASH DISBURSEMENT PAID TO BANC OF CALIFORNIA OUTGOING DOMESTIC WIRE
PER DIR DTD 8/26/2020
0.0000 0.000000 -50,000,000.00 0.00 0.00
08/31/2020 912828L32 INTEREST EARNED ON U S TREASURY NT 1.375% 8/31/20 $1 PV ON
15000000.0000 SHARES DUE 8/31/2020
0.0000 0.000000 103,125.00 0.00 0.00
08/31/2020 912828L24 INTEREST EARNED ON U S TREASURY NT 1.875% 8/31/22 $1 PV ON 6000000.0000
SHARES DUE 8/31/2020
0.0000 0.000000 56,250.00 0.00 0.00
08/31/2020 912828W48 INTEREST EARNED ON U S TREASURY NT 2.125% 2/29/24 $1 PV ON
10000000.0000 SHARES DUE 8/31/2020
0.0000 0.000000 106,250.00 0.00 0.00
15 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
08/31/2020 912828VV9 INTEREST EARNED ON U S TREASURY NT 2.125% 8/31/20 $1 PV ON
15000000.0000 SHARES DUE 8/31/2020
0.0000 0.000000 159,375.00 0.00 0.00
08/31/2020 9128284Y3 INTEREST EARNED ON U S TREASURY NT 2.625% 8/31/20 $1 PV ON 7000000.0000
SHARES DUE 8/31/2020
0.0000 0.000000 91,875.00 0.00 0.00
09/01/2020 30231GAV4 INTEREST EARNED ON EXXON MOBIL 2.222% 3/01/21 $1 PV ON 3000000.0000
SHARES DUE 9/1/2020
0.0000 0.000000 33,330.00 0.00 0.00
09/01/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
8/31/2020 INTEREST FROM 8/1/20 TO 8/31/20
0.0000 0.000000 410.14 0.00 0.00
09/01/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE
8/31/2020 INTEREST FROM 8/1/20 TO 8/31/20
0.0000 0.000000 408.37 0.00 0.00
09/01/2020 494368BF9 INTEREST EARNED ON KIMBERLY CLARK CORP 3.875% 3/01/21 $1 PV ON
750000.0000 SHARES DUE 9/1/2020
0.0000 0.000000 14,531.25 0.00 0.00
09/01/2020 83162CLJ0 INTEREST EARNED ON S B A GTD DEV PART 6.340% 3/01/21 $1 PV ON 186.3300
SHARES DUE 9/1/2020 $0.03170/PV ON 5,878.03 PV DUE 9/ 1/20
0.0000 0.000000 186.33 0.00 0.00
09/08/2020 06051GHF9 INTEREST EARNED ON BANK OF AMERICA 3.550% 3/05/24 $1 PV ON 6675000.0000
SHARES DUE 9/5/2020
0.0000 0.000000 118,481.25 0.00 0.00
09/08/2020 313383YJ4 INTEREST EARNED ON F H L B DEB 3.375% 9/08/23 $1 PV ON 10000000.0000
SHARES DUE 9/8/2020
0.0000 0.000000 168,750.00 0.00 0.00
09/11/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
09/11/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 28,600.00 0.00
09/11/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
28,600.0000 0.000000 0.00 0.00 0.00
09/11/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
09/14/2020 00440EAP2 INTEREST EARNED ON ACE INA HOLDINGS 2.700% 3/13/23 $1 PV ON 2000000.0000
SHARES DUE 9/13/2020
0.0000 0.000000 27,000.00 0.00 0.00
09/14/2020 3130A4CH3 INTEREST EARNED ON F H L B DEB 2.375% 3/14/25 $1 PV ON 5225000.0000
SHARES DUE 9/14/2020
0.0000 0.000000 62,046.88 0.00 0.00
09/14/2020 3130A2UW4 INTEREST EARNED ON F H L B DEB 2.875% 9/13/24 $1 PV ON 2500000.0000
SHARES DUE 9/13/2020
0.0000 0.000000 35,937.50 0.00 0.00
09/14/2020 4581X0CZ9 INTEREST EARNED ON INTER AMER DEV BK 1.750% 9/14/22 $1 PV ON
6500000.0000 SHARES DUE 9/14/2020
0.0000 0.000000 56,875.00 0.00 0.00
09/14/2020 69371RN93 PAID ACCRUED INTEREST ON PURCHASE OF PACCAR FINANCIAL MTN 2.800%
3/01/21
0.0000 0.000000 -606.67 0.00 0.00
09/15/2020 084670BR8 INTEREST EARNED ON BERKSHIRE HATHAWAY 2.750% 3/15/23 $1 PV ON
2500000.0000 SHARES DUE 9/15/2020
0.0000 0.000000 34,375.00 0.00 0.00
09/15/2020 31348SWZ3 INTEREST EARNED ON F H L M C #786064 3.845% 1/01/28 $1 PV ON 5.2800 SHARES
DUE 9/15/2020 JULY FHLMC DUE 9/15/20
0.0000 0.000000 5.28 0.00 0.00
16 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/15/2020 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 4.020% 8/15/32 $1 PV ON 16.5300
SHARES DUE 9/15/2020 $0.00335/PV ON 4,924.05 PV DUE 9/15/20
0.0000 0.000000 16.53 0.00 0.00
09/15/2020 43815NAB0 INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22 $1 PV ON 3908.4000
SHARES DUE 9/15/2020 $0.00158/PV ON 2,468,462.08 PV DUE 9/15/20
0.0000 0.000000 3,908.40 0.00 0.00
09/15/2020 4581X0CS5 INTEREST EARNED ON INTER AMER BK M T N 1.875% 3/15/21 $1 PV ON
5000000.0000 SHARES DUE 9/15/2020
0.0000 0.000000 46,875.00 0.00 0.00
09/15/2020 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.901% 11/15/24 $1 PV ON 1111.2300
SHARES DUE 9/15/2020 $0.00075/PV ON 1,480,000.00 PV DUE 9/15/20
0.0000 0.000000 1,111.23 0.00 0.00
09/15/2020 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 57.9000
SHARES DUE 9/15/2020 $0.00152/PV ON 38,176.65 PV DUE 9/15/20
0.0000 0.000000 57.90 0.00 0.00
09/15/2020 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22 $1 PV ON 2659.0500
SHARES DUE 9/15/2020 $0.00190/PV ON 1,399,500.65 PV DUE 9/15/20
0.0000 0.000000 2,659.05 0.00 0.00
09/15/2020 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22 $1 PV ON 1014.7800
SHARES DUE 9/15/2020 $0.00222/PV ON 457,794.41 PV DUE 9/15/20
0.0000 0.000000 1,014.78 0.00 0.00
09/15/2020 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 1495.1500
SHARES DUE 9/15/2020 $0.00237/PV ON 629,537.89 PV DUE 9/15/20
0.0000 0.000000 1,495.15 0.00 0.00
09/15/2020 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 8028.8400
SHARES DUE 9/15/2020 $0.00257/PV ON 3,128,121.58 PV DUE 9/15/20
0.0000 0.000000 8,028.84 0.00 0.00
09/15/2020 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 3143.3300
SHARES DUE 9/15/2020 $0.00153/PV ON 2,050,000.00 PV DUE 9/15/20
0.0000 0.000000 3,143.33 0.00 0.00
09/15/2020 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750% 10/15/21 $1 PV ON 610.1700
SHARES DUE 9/15/2020 $0.00146/PV ON 418,405.38 PV DUE 9/15/20
0.0000 0.000000 610.17 0.00 0.00
09/15/2020 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 6730.8700
SHARES DUE 9/15/2020 $0.00161/PV ON 4,185,000.00 PV DUE 9/15/20
0.0000 0.000000 6,730.87 0.00 0.00
09/15/2020 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 7805.4300
SHARES DUE 9/15/2020 $0.00255/PV ON 3,060,953.23 PV DUE 9/15/20
0.0000 0.000000 7,805.43 0.00 0.00
09/15/2020 68389XBK0 INTEREST EARNED ON ORACLE CORP 1.900% 9/15/21 $1 PV ON 3000000.0000
SHARES DUE 9/15/2020
0.0000 0.000000 28,500.00 0.00 0.00
09/15/2020 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830% 10/15/21 $1 PV ON 1598.3500
SHARES DUE 9/15/2020 $0.00236/PV ON 677,744.66 PV DUE 9/15/20
0.0000 0.000000 1,598.35 0.00 0.00
09/15/2020 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300
SHARES DUE 9/15/2020 $0.00037/PV ON 2,960,000.00 PV DUE 9/15/20
0.0000 0.000000 1,085.33 0.00 0.00
09/15/2020 9127963Y3 INTEREST EARNED ON U S TREASURY BILL 9/15/20 $1 PV ON 7000000.0000
SHARES DUE 9/15/2020 7,000,000 PAR VALUE AT 100 %
0.0000 0.000000 2,978.50 0.00 0.00
09/17/2020 912828WR7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.125% 6/30/21 0.0000 0.000000 -13,685.46 0.00 0.00
09/17/2020 912828WY2 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.250% 7/31/21 0.0000 0.000000 -8,804.35 0.00 0.00
09/18/2020 09247XAL5 INTEREST EARNED ON BLACKROCK INC 3.500% 3/18/24 $1 PV ON 1000000.0000
SHARES DUE 9/18/2020
0.0000 0.000000 17,500.00 0.00 0.00
09/18/2020 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 663.8800
SHARES DUE 9/18/2020 $0.00149/PV ON 445,056.60 PV DUE 9/18/20
0.0000 0.000000 663.88 0.00 0.00
17 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/18/2020 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 2371.3300
SHARES DUE 9/18/2020 $0.00229/PV ON 1,034,760.53 PV DUE 9/18/20
0.0000 0.000000 2,371.33 0.00 0.00
09/18/2020 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22 $1 PV ON 2621.1300
SHARES DUE 9/18/2020 $0.00251/PV ON 1,044,969.14 PV DUE 9/18/20
0.0000 0.000000 2,621.13 0.00 0.00
09/21/2020 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 3.125% 12/20/26 $1 PV ON 33.2900
SHARES DUE 9/20/2020 AUGUST GNMA DUE 9/20/20
0.0000 0.000000 33.29 0.00 0.00
09/21/2020 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.875% 6/20/27 $1 PV ON 22.6800
SHARES DUE 9/20/2020 AUGUST GNMA DUE 9/20/20
0.0000 0.000000 22.68 0.00 0.00
09/21/2020 36225CNM4 INTEREST EARNED ON G N M A I I #080395 2.875% 4/20/30 $1 PV ON 12.6100
SHARES DUE 9/20/2020 AUGUST GNMA DUE 9/20/20
0.0000 0.000000 12.61 0.00 0.00
09/21/2020 36225CN28 INTEREST EARNED ON G N M A I I #080408 2.875% 5/20/30 $1 PV ON 92.8900
SHARES DUE 9/20/2020 AUGUST GNMA DUE 9/20/20
0.0000 0.000000 92.89 0.00 0.00
09/21/2020 36225DCB8 INTEREST EARNED ON G N M A I I #080965 3.250% 7/20/34 $1 PV ON 92.5500
SHARES DUE 9/20/2020 AUGUST GNMA DUE 9/20/20
0.0000 0.000000 92.55 0.00 0.00
09/21/2020 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22 $1 PV ON 6595.6800
SHARES DUE 9/21/2020 $0.00246/PV ON 2,682,987.81 PV DUE 9/21/20
0.0000 0.000000 6,595.68 0.00 0.00
09/24/2020 92826CAB8 PAID ACCRUED INTEREST ON PURCHASE OF VISA INC 2.200% 12/14/20 0.0000 0.000000 -3,055.56 0.00 0.00
09/24/2020 912828L99 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.375% 10/31/20 0.0000 0.000000 2,746.26 0.00 0.00
09/25/2020 03215PFN4 INTEREST EARNED ON AMRESCO 1.15232% 6/25/29 $1 PV ON 114.2900
SHARES DUE 9/25/2020 $0.00096/PV ON 119,021.64 PV DUE 9/25/20
0.0000 0.000000 114.29 0.00 0.00
09/25/2020 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 3212.5100
SHARES DUE 9/25/2020 $0.00542/PV ON 593,079.11 PV DUE 9/25/20
0.0000 0.000000 3,212.51 0.00 0.00
09/25/2020 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 44.7800 SHARES
DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 44.78 0.00 0.00
09/25/2020 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 345.5400
SHARES DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 345.54 0.00 0.00
09/25/2020 31381PDA3 INTEREST EARNED ON F N M A #466397 3.400% 11/01/20 $1 PV ON 963.7800
SHARES DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 963.78 0.00 0.00
09/25/2020 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 323.4300
SHARES DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 323.43 0.00 0.00
09/25/2020 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 7.0000 SHARES
DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 7.00 0.00 0.00
09/25/2020 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 510.3700
SHARES DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 510.37 0.00 0.00
09/25/2020 31406XWT5 INTEREST EARNED ON F N M A #823358 3.674% 2/01/35 $1 PV ON 285.0900
SHARES DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 285.09 0.00 0.00
09/25/2020 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 65.2300 SHARES
DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 65.23 0.00 0.00
09/25/2020 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 613.0900
SHARES DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 613.09 0.00 0.00
18 of 19
U.S. Bank
Transaction History
07/01/2020 Thru 09/30/2020
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
09/25/2020 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 29.5300
SHARES DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 29.53 0.00 0.00
09/25/2020 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 47.8500
SHARES DUE 9/25/2020 AUGUST FNMA DUE 9/25/20
0.0000 0.000000 47.85 0.00 0.00
09/25/2020 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 107.0900
SHARES DUE 9/25/2020 $0.00071/PV ON 150,284.18 PV DUE 9/25/20
0.0000 0.000000 107.09 0.00 0.00
09/28/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
09/28/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 28,600.00 0.00
09/28/2020 313312H60 INTEREST EARNED ON F F C B DISC NTS 9/28/20 $1 PV ON 3000000.0000
SHARES DUE 9/28/2020 3,000,000 PAR VALUE AT 100 %
0.0000 0.000000 1,384.17 0.00 0.00
09/28/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.0000
UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
28,600.0000 0.000000 0.00 0.00 0.00
09/28/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 28600.00 UNITS
INCREASE TO ADJUST FOR CHANGE IN CPI
0.0000 0.000000 0.00 0.00 0.00
09/29/2020 46625HNX4 INTEREST EARNED ON JPMORGAN CHASE CO 2.550% 10/29/20 $1 PV ON
1000000.0000 SHARES DUE 9/29/2020
0.0000 0.000000 10,625.00 0.00 0.00
09/30/2020 912828T34 INTEREST EARNED ON U S TREASURY NT 1.125% 9/30/21 $1 PV ON 7000000.0000
SHARES DUE 9/30/2020
0.0000 0.000000 39,375.00 0.00 0.00
09/30/2020 912828YH7 INTEREST EARNED ON U S TREASURY NT 1.500% 9/30/24 $1 PV ON
14000000.0000 SHARES DUE 9/30/2020
0.0000 0.000000 105,000.00 0.00 0.00
09/30/2020 912828J76 INTEREST EARNED ON U S TREASURY NT 1.750% 3/31/22 $1 PV ON 5000000.0000
SHARES DUE 9/30/2020
0.0000 0.000000 43,750.00 0.00 0.00
09/30/2020 912828L57 INTEREST EARNED ON U S TREASURY NT 1.750% 9/30/22 $1 PV ON
16000000.0000 SHARES DUE 9/30/2020
0.0000 0.000000 140,000.00 0.00 0.00
09/30/2020 9128284D9 INTEREST EARNED ON U S TREASURY NT 2.500% 3/31/23 $1 PV ON
10000000.0000 SHARES DUE 9/30/2020
0.0000 0.000000 125,000.00 0.00 0.00
09/30/2020 89236TBJ3 PAID ACCRUED INTEREST ON PURCHASE OF TOYOTA MOTOR MTN 2.750%
5/17/21
0.0000 0.000000 -15,239.58 0.00 0.00
09/30/2020 912828WY2 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.250% 7/31/21 0.0000 0.000000 -18,648.10 0.00 0.00
TOTAL OTHER TRANSACTIONS 114,400.0000 -46,383,426.68 114,400.00 0.00
19 of 19
September 30, 2020
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.
Orange County Sanitation District
Executive Summary for Period Ending September 30, 2020
Asset Allocation
Performance
* Current Quarter Target = 80.0% ML 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, $50.0 million was withdrawn from the Liquid Operating Monies.
Organizational Issues
N/A
Fixed Income Market Snapshot
U.S. Treasury yields held steady over the course of 3Q in spite of strong equity markets and
better-than-expected economic data. The 10-year U.S. Treasury yield closed the quarter at
0.69%, up three basis points from June 30 but off far more sharply from the year-end level of
1.92%. The 10-year yield hit an all-time low of 0.52% in August. TIPS (Bloomberg U.S. TIPS:
+3.0%) strong outperformed nominal U.S. Treasuries for the quarter as 10-year break even
spreads widened from 134 bps to 163 bps. The Bloomberg Barclays Aggregate Index gained
0.6%, with the corporate and commercial mortgage-backed sectors performing the best. Supply
September 30, 2020 June 30, 2020
Market Value Weight Net New Inv.Inv. Return Market Value Weight
Domestic Fixed IncomeLong Term Operating Fund*625,212,761 82.93%0 1,911,165 623,301,596 77.73%
Liquid Operating Monies*128,685,054 17.07%(50,000,000)83,756 178,601,297 22.27%
Total Fund $753,897,814 100.0%$(50,000,000)$1,994,922 $801,902,893 100.0%
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Fund^0.31%4.72%3.42%2.57%2.24%
Chandler 0.31%4.72%3.42%2.57%-
Blmbg Govt/Cred 1-5 Year Idx 0.37%4.88%3.47%2.59%2.29%
ML 1-5 Govt/Corp 0.42%4.82%3.47%2.60%2.32%
Liquid Operating Monies^0.05%1.32%1.80%1.31%0.97%
Chandler 0.05%1.32%1.80%1.31%-
Citigroup 3-Month Treasury Bill 0.03%1.02%1.65%1.16%0.83%
Total Fund 0.26%4.08%3.13%2.28%1.98%
Target*0.34%4.05%3.11%2.31%2.03%
2
Orange County Sanitation District
hit record levels as companies rushed to take advantage of ultra-low interest rates. The
Bloomberg Barclays High Yield Bond Index was up 4.6% and it now roughly flat year-to-date.
Manager Performance
The Long Term Operating Fund returned 0.31% in the first quarter, which trailed the 0.42%
return of the ML U.S. 1-5 Corp/Gov Index. Over the trailing one-year period, the Long Term
Operating Fund gained 4.72%, which trailed the benchmark return of 4.82%. The manager
ranked in the bottom quartile among the Callan Short Term Fixed Income peer group in the third
quarter, but is still in the top quartile over the trailing year. The fund ranks above median over all
trailing periods longer than one year.
Risk assets continued to outperform in the third quarter, which led to modest underperformance
for Chandler’s more conservatively positioned portfolio relative to the benchmark. Positive
attribution stemmed from the fund’s out-of-benchmark exposure to asset-backed securities,
which outperformed the overall index. Sector allocation remained relatively stable during the
quarter, with a 4.2% increase to agencies and a 1.8% reduction in U.S. Treasuries. The
portfolio had less than 30% invested in credit (22%) and less than the permitted 20% invested
in the combination of asset-backed securities (5%), commercial mortgage backed securities
(0%), and CMOs (0%) as of September 30, 2020 (see page 20).
The Liquid Operating Portfolio appreciated 0.01% (after fees) in the third quarter, trailing the
Citigroup 3-Month Treasury Bill Index’s return of 0.03% by two basis points. Over the trailing
year, the fund gained 1.17%, which outpaced the benchmark by 15 basis points.
Cordially,
Alex Ford
Vice President
Table of Contents
September 30, 2020
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 3131
Capital Market Review
Russell 3000
Russell 1000
Russell 1000 Growth
Russell 1000 Value
S&P 500
Russell Midcap
Russell 2500
Russell 2000
U.S. Equity: Quarterly Returns
9.2%
9.5%
13.2%
5.6%
8.9%
7.5%
5.9%
4.9%
Russell 3000
Russell 1000
Russell 1000 Growth
Russell 1000 Value
S&P 500
Russell Midcap
Russell 2500
Russell 2000
U.S. Equity: One-Year Returns
15.0%
16.0%
37.5%
-5.0%
15.1%
4.6%
2.2%
0.4%
Source: S&P Dow Jones Indices
U.S. EQUITY
Gains YTD
–S&P +8.9% for the quarter, bringing YTD to +5.6%
–Consumer Discretionary (+15%) and Industrials (+13%)
dominated, with Tech (+12%) a close third in risk-on market.
–S&P 500 YTD would be negative if not for Facebook,
Microsoft, Amazon, Alphabet, and Apple, representing 33%
of the return.
–YTD, pandemic punished some sectors, rewarded others
–Tech +29% YTD; Cons. Disc. +23% (online retailers +60%)
–Energy -48% amid declining crude and natural gas prices
–Demand from hotels/cruise lines/airlines down as those
industries have dropped 40%+
Small cap reverses to trail large cap
–Following a stellar 2Q20 recovery, small cap trailed large.
–Behind large cap by a wide margin over last 12 months
Growth continues to outpace value across market caps
–Growth, value dispersion near all-time high driven by Tech
–YTD RUS1G +25% vs. RUS1V -12%
–Growth stock P/E near 2x historical average across market
caps
–Today’s index concentration surpasses levels seen in the
late 90’s Dot-Com boom.
–Index concentration of the top five names is at 5 standard
deviations above the 30-year average of approximately 13%.
–Large and small value indices continue to underperform
large and small growth in 3Q20 and YTD.
–Higher interest rates, a steeper yield curve, economic
growth, and improving consumer confidence are among the
catalysts that could result in value outperforming.
–S&P 500 Index currently delivers a dividend yield well above
the 10-year Treasury, which can help support current
valuation levels.
Capital Markets Overview September 30, 2020
Sources: FTSE Russell, S&P Dow Jones Indices
S&P Sector Returns, Quarter Ended September 30, 2020
Last Quarter
8.9%
15.1%
10.4%
-19.7%
4.4%5.9%
12.0%12.5%13.3%
1.9%
6.1%
Services
Communication
Discretionary
Consumer
Staples
Consumer Energy Financials Health Care Industrials
Technology
Information Materials Real Estate Utilities
Capital Markets Overview (continued) September 30, 2020
MSCI EAFE
MSCI ACWI
MSCI World
MSCI ACWI ex USA
MSCI World ex USA
MSCI ACWI ex USA SC
MSCI World ex USA SC
MSCI Europe ex UK
MSCI United Kingdom
MSCI Pacific ex Japan
MSCI Japan
MSCI Emerging Markets
MSCI China
MSCI Frontier Markets
Global Equity: Quarterly Returns
4.8%
8.1%
7.9%
6.3%
4.9%
10.5%
10.1%
5.9%
-0.2%
2.0%
6.9%
9.6%
12.5%
8.3%
MSCI EAFE
MSCI ACWI
MSCI World
MSCI ACWI ex USA
MSCI World ex USA
MSCI ACWI ex USA SC
MSCI World ex USA SC
MSCI Europe ex UK
MSCI United Kingdom
MSCI Pacific ex Japan
MSCI Japan
MSCI Emerging Markets
MSCI China
MSCI Frontier Markets
Global Equity: One-Year Returns
0.5%
10.4%
10.4%
3.0%
0.2%
7.0%
6.9%
4.4%
-15.8%
-6.1%
6.9%
10.5%
33.6%
-2.7%
Source: MSCI
GLOBAL/GLOBAL EX-U.S. EQUITY
Continued recovery into 3Q20
–Returns broadly positive across developed and emerging
markets but muted YTD
–Recent support from ultra-low interest rates and upward
earnings revisions
–EM recovery driven by global risk-on environment; key
countries within EM (China and South Korea) have better
managed the pandemic
–Small cap continued to outperform large as lockdowns eased
and business confidence improved.
Rebound for cyclicals
–Materials, Industrials, and Consumer Discretionary
outperformed as consumption and production resumed.
–Factor performance led by momentum (rebound) and
volatility (risk-on market mentality)
U.S. dollar vs. other currencies
–U.S. dollar lost ground versus every developed market
currency on expectation of lower-for-longer U.S. rates due to
Fed’s shift in approach toward inflation and employment.
COVID-19 exacerbated outperformance of growth vs. value
–Growth outpaced value by 34% year-to-date as of Sept. 30.
–Extremely narrow market with performance dominated by
Tech
–Growth benefited from strong performance by Information
Technology (27%), while Financials (-22%) and Energy (-
46%) weighed on value.
–YTD performance gap between growth and value has not
been seen over the past 45 years.
What may stoke value rotation?
–Higher bond yields may be needed to drive value rebound.
–Bond yields correlated to value/growth since the GFC
Key drivers: global recovery, U.S. elections
–Management of COVID-19 a key variable to recovery
–Advanced economies have struggled to contain the
pandemic relative to emerging markets.
–Asian currencies have maintained resiliency relative to the
U.S. dollar due to better COVID-19 management and
economic outlook.
–Greater probability of Democratic sweep is expected to
pressure USD to the downside on a medium-term basis.
–Potentially easier fiscal policy and a larger budget deficit in
the aftermath of a “Blue Wave” may yield lower dollar.
Blmberg Barclays Gov/Cr 1-3 Yr
Blmberg Barclays Interm Gov/Cr
Blmberg Barclays Aggregate
Blmberg Barclays Long Gov/Cr
Blmberg Barclays Universal
CS Leveraged Loans
Blmberg Barclays High Yield
Blmberg Barclays TIPS
U.S. Fixed Income: Quarterly Returns
0.6%
1.0%
0.2%
0.6%
1.2%
4.1%
4.6%
3.0%
Blmberg Barclays Gov/Cr 1-3 Yr
Blmberg Barclays Interm Gov/Cr
Blmberg Barclays Aggregate
Blmberg Barclays Long Gov/Cr
Blmberg Barclays Universal
CS Leveraged Loans
Blmberg Barclays High Yield
Blmberg Barclays TIPS
U.S. Fixed Income: One-Year Returns
7.0%
6.7%
3.7%
6.3%
12.9%
0.8%
3.3%
10.1%
U.S. Treasury Yield Curves
U.S. FIXED INCOME
Treasury yields largely unchanged
–10-year UST yield at 0.69% in 3Q20, up 3 bps from 2Q20
but off sharply from year-end level of 1.92%
–TIPS did well as inflation expectations rose from 1.34% to
1.63%.
–No rate hikes expected until at least 2023
Bloomberg Barclays Aggregate roughly flat
–Corporate and CMBS the strongest investment grade
sectors as investors hunted for yield
–Corporate supply ($1 trillion YTD) at a record as companies
rushed to take advantage of ultra-low interest rates
Risk-on sentiment helped high yield and loans
–Non-investment grade sectors rallied, but remain roughly
flat YTD.
–The high yield bond market also experienced high levels of
net new issuance (over $120 billion YTD).
Munis boosted by favorable supply/demand dynamics
–Robust demand and muted supply of tax-exempt municipals
–Issuance in taxable municipals sharply higher
–Tax revenues better than expected, but challenges remain
and stimulus uncertain (but needed)
High yield trended higher in quality
–BB/Ba-rated debt, the highest-quality category within high
yield, experienced a surge of new issuance as 2020 remains
a year of record new issuance across corporate debt.
–Reconstitution of downgraded investment grade debt into
high yield has also added to the category.
–BBs now represents over half of the Bloomberg Barclays US
High Yield Index.
–Historically, composition changes have generated market
inefficiencies that managers can seek to exploit.
Default rate has trended higher, but below GFC levels
–Additionally, spreads at the height of COVID-19 implied a
16.8% default rate, but thus far defaults have been well
below market expectations at 5.77%.
High yield spreads have rallied; managers are putting a
greater focus on security selection
–Recovery rates remain low relative to the 30-year average,
concentrated within pandemic-sensitive sectors (particularly
retail and energy) and subordinated debt.
–The ratio of downgrades to upgrades is higher than in 2008.
Capital Markets Overview (continued) September 30, 2020
Sources: Bloomberg, Bloomberg Barclays, Credit Suisse
0%
1%
2%
3%
0 5 10 15 20 25 30
Maturity (Years)
09/30/20 06/30/20 09/30/19
Blmberg Barclays Gl Aggregate
Blmberg Barclays Gl Agg (hdg)
Blmberg Barclays Gl High Yield
Blmberg Barclays Gl Agg ex US
JPM EMBI Global Diversified
JPM GBI-EM Global Diversified
JPM EMBI Gl Div/JPM GBI-EM Gl Div
JPM CEMBI
Global Fixed Income: Quarterly Returns
2.7%
0.7%
4.3%
4.1%
2.3%
0.6%
1.5%
2.7%
Blmberg Barclays Gl Aggregate
Blmberg Barclays Gl Agg (hdg)
Blmberg Barclays Gl High Yield
Blmberg Barclays Gl Agg ex US
JPM EMBI Global Diversified
JPM GBI-EM Global Diversified
JPM EMBI Gl Div/JPM GBI-EM Gl Div
JPM CEMBI
Global Fixed Income: One-Year Returns
6.2%
4.1%
2.9%
5.5%
1.3%
-1.4%
-0.1%
5.6%
Change in 10-Year Global Government Bond Yields
GLOBAL FIXED INCOME
Global fixed income rose amid rate cuts
–Central banks continued to act aggressively to provide
support via rate cuts, asset purchase programs, and other
forms of stimulus.
–Broad-based U.S. dollar weakness dampened hedged
returns as the USD lost 4% versus the euro and the British
pound, and 2% versus the yen.
–Over 70% of global sovereign debt has negative real yields,
a record high, according to JP Morgan.
Emerging market debt made up ground
–Emerging market debt indices gained in 3Q20 but remain
down from year-end.
–U.S. dollar-denominated index (EMBI Global Diversified)
outperformed local currency as U.S. rates fell; returns were
mixed across the 70+ constituents, but most were positive.
–Local currency index (GBI-EM Global Diversified) was up
slightly but returns varied widely among constituents: Russia:
-8%; Brazil: -3%; Mexico and S. Africa: +6%
–Staggered inclusion of China bonds continued with the
weight rising to 7% in the JPM GBI-EM Global Diversified
Index.
Capital Markets Overview (continued) September 30, 2020
Sources: Bloomberg, Bloomberg Barclays, JP Morgan
3 bps
-7 bps
6 bps
3 bps
-1 bps
-8 2
U.S. Treasury
Germany
U.K.
Canada
Japan
2Q20 to 3Q20
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 September 30, 2020
Re
t
u
r
n
s
(4%)
(2%)
0%
2%
4%
6%
8%
10%
12%
14%
16%
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
(53)
(49)(77)
(93)
(52)
(33)
10th Percentile 13.00 11.47 11.41 1.50 5.79 2.50
25th Percentile 11.08 8.45 9.38 1.28 5.36 1.20
Median 9.20 4.73 7.18 1.12 4.64 0.35
75th Percentile 5.26 2.64 4.92 0.84 4.24 (0.17)90th Percentile 3.22 1.05 3.27 0.71 0.12 (1.14)
Index 8.93 4.93 4.80 0.62 4.59 0.74
Range of Separate Account Manager Returns by Asset Class
One Year Ended September 30, 2020
Re
t
u
r
n
s
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
50%
Large Cap Small Cap Non-US Domestic Non-US Real
Equity Equity Equity Fixed Income Fixed Income Estatevs vs vs vs vs vsS&P 500 Russell 2000 MSCI EAFE Blmbg Aggr Bd Citi Non-US Govt NCREIF Index
(49)
(44)(68)
(89)(53)(32)
10th Percentile 39.33 31.09 21.53 8.87 8.33 6.68
25th Percentile 33.29 14.70 13.42 8.35 7.69 3.08Median 14.01 (3.24)4.71 7.88 5.69 0.44
75th Percentile (3.02) (13.45) (1.37)7.33 4.31 (2.86)
90th Percentile (8.09) (17.49) (6.82)6.86 (3.36) (5.49)
Index 15.15 0.39 0.49 6.98 5.60 2.00
7Orange County Sanitation District
Domestic Fixed Income
Active Management Overview
U.S. Treasury yields were largely unchanged over the course of the third quarter. The 10-year U.S. Treasury yield closed the
quarter at 0.69%; up 3 bps from June 30 but off far more sharply from the year-end level of 1.92%. Its yield hit an all-time low
of 0.52% in August. TIPS (Bloomberg Barclays US TIPS: +3.0%) strongly outperformed nominal U.S. Treasuries for the
quarter as 10-year breakeven spreads widened from 134 bps to 163 bps. The Bloomberg Barclays US Aggregate Bond
Index gained 0.6%, with the corporate and commercial mortgage-backed sectors performing the best. Supply hit record
levels as companies rushed to take advantage of ultra low interest rates. The Bloomberg Barclays High Yield Bond Index
was up 4.6% and is now roughly flat y-t-d. High yield and leveraged loan default rates (5.8% and 4.3% y-o-y as of
September) continued to trend higher but remain below levels reached in the GFC.
Separate Account Style Group Median Returns
for Quarter Ended September 30, 2020
0%
1%
2%
3%
4%
5%
6%
7%
0.60
Defensive
0.84
Intermed
1.12
Core
Bond
1.73
Core Plus
1.44
Extended
Maturity
3.55
Bank
Loans
4.81
High Yield
Re
t
u
r
n
s
Blmbg Aggregate: 0.62%
Blmbg High Yield: 4.60%
Blmbg Long Gov/Cred: 1.22%
Separate Account Style Group Median Returns
for One Year Ended September 30, 2020
0%
5%
10%
15%
20%
4.09
Defensive
6.75
Intermed
7.88
Core
Bond
7.69
Core Plus
13.98
Extended
Maturity
1.10
Bank
Loans
3.44
High Yield
Re
t
u
r
n
s
Blmbg Aggregate: 6.98%
Blmbg High Yield: 3.25%
Blmbg Long Gov/Cred: 12.92%
8Orange County Sanitation District
Asset Allocation
Investment Manager Asset Allocation
The table below contrasts the distribution of assets across the Fund’s investment managers as of September 30, 2020, with
the distribution as of June 30, 2020. 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
September 30, 2020 June 30, 2020
Market Value Weight Net New Inv. Inv. Return Market Value Weight
Domestic Fixed Income
Long Term Operating Fund* 625,212,761 82.93% 0 1,911,165 623,301,596 77.73%
Liquid Operating Monies* 128,685,054 17.07%(50,000,000)83,756 178,601,297 22.27%
Total Fund $753,897,814 100.0%$(50,000,000)$1,994,922 $801,902,893 100.0%
*Chandler replaced PIMCO during the 4th quarter of 2014. Assets were transferred in-kind as of 12/01/2014.
10Orange County Sanitation District
Investment Manager Returns
The table below details the rates of return for the Fund’s investment managers over various time periods ended September
30, 2020. 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 September 30, 2020
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Fund^ 0.31% 4.72% 3.42% 2.57% 2.24%
Chandler 0.31% 4.72% 3.42% 2.57% -
Blmbg Govt/Cred 1-5 Year Idx 0.37% 4.88% 3.47% 2.59% 2.29%
ML 1-5 Govt/Corp 0.42% 4.82% 3.47% 2.60% 2.32%
Liquid Operating Monies^ 0.05% 1.32% 1.80% 1.31% 0.97%
Chandler 0.05% 1.32% 1.80% 1.31% -
Citigroup 3-Month Treasury Bill 0.03% 1.02% 1.65% 1.16% 0.83%
Total Fund 0.26% 4.08% 3.13% 2.28% 1.98%
Target* 0.34% 4.05% 3.11% 2.31% 2.03%
* 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.
11Orange County Sanitation District
Investment Manager Returns
The table below details the rates of return for the Fund’s investment managers over various time periods ended September
30, 2020. 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 September 30, 2020
Last Last Last
10 15 25
Years Years Years
Domestic Fixed Income
Long Term Operating Fund^ 2.10% 3.29% 4.27%
Blmbg Govt/Cred 1-5 Year Idx 2.09% 3.15% 4.11%
ML 1-5 Govt/Corp 2.14% 3.18% 4.14%
Liquid Operating Monies^ 0.74% 1.44% 2.53%
Citigroup 3-Month Treasury Bill 0.60% 1.22% 2.23%
Total Fund 1.84% 2.94% 3.99%
Target*1.83% 2.79% 3.76%
* 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.
12Orange County Sanitation District
Investment Manager Returns
The table below details the rates of return for the Fund’s investment managers over various time periods. Negative returns
are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each
asset class represents the composite returns for all the fund’s accounts for that asset class.
12/2019-
9/2020 2019 2018 2017 2016
Domestic Fixed Income
Long Term Operating Fund^ 4.19% 4.70% 1.60% 1.18% 1.58%
Chandler 4.19% 4.70% 1.60% 1.18% 1.58%
Blmbg Govt/Cred 1-5 Year Idx 4.36% 5.01% 1.38% 1.27% 1.56%
ML 1-5 Govt/Corp 4.26% 5.08% 1.40% 1.28% 1.62%
Liquid Operating Monies^ 0.82% 2.39% 1.90% 0.91% 0.47%
Chandler 0.82% 2.39% 1.90% 0.91% 0.47%
Citigroup 3-Month Treasury Bill 0.56% 2.25% 1.86% 0.84% 0.27%
Total Fund 3.56% 4.26% 1.72% 1.02% 1.15%
Target* 3.52% 4.51% 1.49% 1.19% 1.35%
* 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.
13Orange County Sanitation District
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.
2015 2014 2013 2012 2011
Domestic Fixed Income
Long Term Operating Fund^ 0.85% 1.98%(1.77%)3.06% 4.59%
Blmbg Govt/Cred 1-5 Year Idx 0.97% 1.42% 0.28% 2.24% 3.14%
ML 1-5 Govt/Corp 1.05% 1.51% 0.32% 2.47% 3.10%
Liquid Operating Monies^ 0.22% 0.09% 0.13% 0.17% 0.24%
Citigroup 3-Month Treasury Bill 0.03% 0.03% 0.05% 0.07% 0.08%
Total Fund 0.80% 1.73%(1.49%)2.70% 3.70%
Target* 0.85% 1.21% 0.26% 1.99% 2.49%
* 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.
14Orange County Sanitation District
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
0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2.2%
2.4%
2.6%
Total Fund
Blmbg Gov/Cred 1-5 Yr
FTSE 3 Mo T-Bill
Total Fund Target
ML:Corp/Gov 1-5 Yr
Standard Deviation
Re
t
u
r
n
s
Seven Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
0.30%0.40%0.50%0.60%0.70%0.80%0.90%1.00%1.10%1.20%1.30%1.40%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2.2%
2.4%
Total Fund
Callan Money Market Funds
Callan Short Fixed Inc
Standard Deviation
Re
t
u
r
n
s
15Orange County Sanitation District
Manager Analysis
Chandler-Long Term Operating Fund
Period Ended September 30, 2020
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
Long Term Operating Fund’s portfolio posted a 0.31% return
for the quarter placing it in the 80 percentile of the Callan
Short Term Fixed Income group for the quarter and in the 18
percentile for the last year.
Long Term Operating Fund’s portfolio underperformed the
ML:Corp/Gov 1-5 Yr by 0.12% for the quarter and
underperformed the ML:Corp/Gov 1-5 Yr for the year by
0.10%.
Quarterly Asset Growth
Beginning Market Value $623,301,596
Net New Investment $0
Investment Gains/(Losses) $1,911,165
Ending Market Value $625,212,761
Performance vs Callan Short Term Fixed Income (Gross)
0%
1%
2%
3%
4%
5%
6%
Last Quarter Last Last 3 Years Last 5 Years Last 5-3/4 Last 7 Years Last 10 Years Last 25 Years
Year Years
B(74)A(80)(68)
B(15)A(18)(16)
B(21)A(26)(21)
B(40)A(41)(39)B(34)
A(41)(34)B(35)
A(39)(34)A(43)
B(44)(41)
A(14)B(26)(23)
10th Percentile 1.16 5.06 3.71 3.08 2.94 2.76 2.73 4.40
25th Percentile 0.77 4.57 3.43 2.86 2.69 2.50 2.42 4.12
Median 0.60 4.09 3.15 2.48 2.39 2.17 2.02 3.89
75th Percentile 0.35 3.66 2.98 2.30 2.18 1.97 1.78 3.63
90th Percentile 0.22 2.56 2.54 2.03 1.91 1.72 1.36 3.07
Long Term
Operating Fund A 0.31 4.72 3.42 2.57 2.44 2.24 2.10 4.27
Blmbg Govt/Cred
1-5 Year Idx B 0.37 4.88 3.47 2.59 2.52 2.29 2.09 4.11
ML:Corp/Gov 1-5 Yr 0.42 4.82 3.47 2.60 2.54 2.32 2.14 4.14
Relative Return vs ML:Corp/Gov 1-5 Yr
Re
l
a
t
i
v
e
R
e
t
u
r
n
s
(0.8%)
(0.6%)
(0.4%)
(0.2%)
0.0%
0.2%
0.4%
0.6%
0.8%
13 2014 2015 2016 2017 2018 2019 2020
Long Term Operating Fund
Callan Short Term Fixed Income (Gross)
Annualized Seven Year Risk vs Return
0 1 2 3 4 5
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Blmbg Govt/Cred 1-5 Year Idx
ML:Corp/Gov 1-5 Yr
Long Term Operating Fund
Standard Deviation
Re
t
u
r
n
s
17Orange County Sanitation District
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)
(3%)(2%)(1%)0%1%2%3%4%5%6%7%
12/19- 9/20 2019 2018 2017 2016 2015 2014 2013 2012 2011
B(13)A(18)16 B(20)A(34)19
A(65)B(87)87 B(58)A(65)57 A(49)B(50)47 B(35)
A(64)24 A(4)B(17)10
B(90)
A(100)
89
A(21)
B(38)27
A(1)
B(4)4
10th Percentile 4.46 5.47 2.00 2.23 2.82 1.17 1.50 1.20 4.46 2.7225th Percentile 3.87 4.92 1.82 1.74 2.17 1.01 1.27 0.80 2.60 2.30
Median 3.45 4.52 1.69 1.31 1.56 0.91 1.11 0.65 1.81 1.85
75th Percentile 3.03 4.10 1.54 0.95 1.18 0.76 0.87 0.40 1.45 1.65
90th Percentile 1.83 3.59 1.33 0.66 1.04 0.64 0.73 0.29 0.92 1.44
Long Term
Operating Fund A 4.19 4.70 1.60 1.18 1.58 0.85 1.98 (1.77)3.06 4.59
Blmbg Govt/Cred
1-5 Year Idx B 4.36 5.01 1.38 1.27 1.56 0.97 1.42 0.28 2.24 3.14
ML:Corp/Gov
1-5 Yr 4.26 5.08 1.40 1.28 1.62 1.05 1.51 0.32 2.47 3.10
Cumulative and Quarterly Relative Return vs ML:Corp/Gov 1-5 Yr
Re
l
a
t
i
v
e
R
e
t
u
r
n
s
(4%)
(3%)
(2%)
(1%)
0%
1%
2%
3%
10 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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 September 30, 2020
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2.0
Alpha Sharpe Excess Return
Ratio Ratio
A(89)B(96)
A(67)B(68)
A(58)B(65)
10th Percentile 0.89 1.27 0.42
25th Percentile 0.68 1.14 0.13
Median 0.40 1.02 (0.14)
75th Percentile 0.18 0.83 (0.52)
90th Percentile 0.04 0.69 (0.75)
Long Term Operating Fund A 0.07 0.93 (0.20)
Blmbg Govt/Cred 1-5 Year Idx B (0.05)0.91 (0.31)
18Orange County Sanitation District
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 September 30, 2020
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Average Effective Coupon OA
Duration Life Yield Rate Convexity
(10)(9)(19)(19)
(82)
(73)
(48)
(27)
10th Percentile 2.49 3.01 1.88 2.88 0.14
25th Percentile 1.97 2.60 1.13 2.63 0.09
Median 1.87 2.06 0.84 2.27 0.02
75th Percentile 1.73 1.87 0.50 1.92 (0.01)
90th Percentile 1.05 1.28 0.32 1.38 (0.16)
Long Term
Operating Fund 2.52 2.74 - 1.97 -
ML:Corp/Gov 1-5 Yr 2.61 2.75 0.43 2.33 0.07
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
September 30, 2020
0%10%20%30%40%50%60%70%80%
Gov Related
34.3
2.2
10.6
US Trsy
32.5
50
%
Mg
r
M
V
50
%
Mg
r
M
V
16.3
63.0
Corp (incl 144A)
21.8
56.2
26.5
Other
5.8
ABS
4.7
18.1
Tax-Exempt US Muni
0.3
Cash
0.2
1.4
CMBS
0.2
4.3
CMOs
0.2
0.8
RMBS 0.9
Long Term Operating Fund Callan Short Term Fixed Income
ML:Corp/Gov 1-5 Yr
Quality Ratings
vs Callan Short Term Fixed Income
A-
A
A+
AA-
AA
AA+
AAA
Trsy
Weighted Average
Quality Rating
(55)(9)
10th Percentile AA
25th Percentile AA
Median AA
75th Percentile A
90th Percentile A
Long TermOperating Fund AA
ML:Corp/Gov 1-5 Yr AA
19Orange County Sanitation District
Long Term Operating Fund
Portfolio Characteristics Summary
As of September 30, 2020
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
Long Term Operating Fund
Gov Related
34%
Cash
0%
US Trsy33%
CMBS
0%
Corp (incl 144A)
22%
CMOs
0%
Other
6%
Tax-Exempt US Muni
0%
ABS
5%
ML:Corp/Gov 1-5 Yr
US Trsy
63%
Gov Related
11%
Corp (incl 144A)
26%
Duration Distribution
0%
10%
20%
30%
40%
50%
60%
70%
80%
<1
18.8
1.9
1-3
39.8
60.2
3-5
41.4 37.9
5-7 7-10 >10
Years Duration
Pe
r
c
e
n
t
o
f
P
o
r
t
f
o
l
i
o
Weighted Average: Duration
Long Term Operating Fund:
ML:Corp/Gov 1-5 Yr:
2.52
2.61
Quality Distribution
0%
20%
40%
60%
80%
100%
AAA
7.9
69.7
AA
72.5
4.5
A
13.0 12.5
BBB
1.0
13.3
BB B CCC CC C N/R
5.6
Quality Rating
Pe
r
c
e
n
t
o
f
P
o
r
t
f
o
l
i
o
Weighted Average: Quality
Long Term Operating Fund:
ML:Corp/Gov 1-5 Yr:
AA
AA
20Orange County Sanitation District
Chandler-Liquid Operating Money
Period Ended September 30, 2020
Investment Philosophy
Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Quarterly Summary and Highlights
Liquid Operating Money Net’s portfolio posted a 0.01%
return for the quarter placing it in the 36 percentile of the
Callan Money Market Funds group for the quarter and in the
23 percentile for the last year.
Liquid Operating Money Net’s portfolio underperformed the
Citigroup 3-Month Treasury Bill by 0.02% for the quarter and
outperformed the Citigroup 3-Month Treasury Bill for the
year by 0.15%.
Quarterly Asset Growth
Beginning Market Value $178,601,297
Net New Investment $-50,000,000
Investment Gains/(Losses) $83,756
Ending Market Value $128,685,054
Performance vs Callan Money Market Funds (Net)
(0.5%)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Last Quarter Last Last 3 Years Last 5 Years Last 5-3/4 Last 7 Years Last 10 Years Last 25 Years
Year Years
(36)(28)
(23)(25)
(24)(24)
(26)(26)
(25)(26)
(25)(24)
(21)(19)
(11)
(22)
10th Percentile 0.54 2.07 2.16 1.77 1.59 1.35 1.03 2.45
25th Percentile 0.05 1.02 1.64 1.17 1.02 0.82 0.55 2.21
Median 0.01 0.70 1.33 0.90 0.78 0.64 0.44 2.07
75th Percentile 0.00 0.59 1.18 0.76 0.66 0.54 0.37 1.95
90th Percentile 0.00 0.44 0.95 0.60 0.52 0.43 0.30 1.82
Liquid Operating
Money Net 0.01 1.17 1.65 1.15 1.01 0.82 0.59 2.38
Citigroup 3-Month
Treasury Bill 0.03 1.02 1.65 1.16 1.01 0.83 0.60 2.23
Relative Returns vs
Citigroup 3-Month Treasury Bill
Re
l
a
t
i
v
e
R
e
t
u
r
n
s
(0.20%)
(0.10%)
0.00%
0.10%
0.20%
0.30%
0.40%
13 2014 2015 2016 2017 2018 2019 2020
Liquid Operating Money Net
Callan Money Market Funds (Net)
Annualized Seven Year Risk vs Return
0 1 2 3 4 5 6
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Citigroup 3-Month Treasury Bill
Liquid Operating Money Net
Standard Deviation
Re
t
u
r
n
s
21Orange County Sanitation District
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)
(0.5%)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
12/19- 9/20 2019 2018 2017 2016 2015 2014 2013 2012 2011
2126
2827
2212
3530
3033 2236 9822 9820 4424 1315
10th Percentile 1.41 3.20 1.89 1.42 1.32 0.28 0.35 0.30 0.85 0.12
25th Percentile 0.56 2.32 1.72 0.91 0.40 0.06 0.03 0.04 0.06 0.04
Median 0.32 1.96 1.53 0.61 0.14 0.01 0.01 0.01 0.01 0.01
75th Percentile 0.25 1.76 1.30 0.42 0.04 0.01 0.01 0.01 0.01 0.0190th Percentile 0.17 1.50 1.04 0.23 0.01 0.00 0.00 0.00 0.00 0.00
Liquid Operating
Money Net 0.70 2.24 1.75 0.76 0.32 0.07 (0.06) (0.02)0.02 0.09
Citigroup 3-Month
Treasury Bill 0.56 2.25 1.86 0.84 0.27 0.03 0.03 0.05 0.07 0.08
Cumulative and Quarterly Relative Return vs Citigroup 3-Month Treasury Bill
Re
l
a
t
i
v
e
R
e
t
u
r
n
s
(1.4%)
(1.2%)
(1.0%)
(0.8%)
(0.6%)
(0.4%)
(0.2%)
0.0%
0.2%
0.4%
0.6%
10 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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 September 30, 2020
(3.5)
(3.0)
(2.5)
(2.0)
(1.5)
(1.0)
(0.5)
0.0
0.5
1.0
1.5
Alpha Sharpe Excess Return
Ratio Ratio
(29)(25)(25)
10th Percentile 0.91 0.41 0.49
25th Percentile 0.00 (0.09) (0.10)
Median (0.19) (0.59) (2.30)
75th Percentile (0.28) (0.90) (2.63)
90th Percentile (0.39) (1.47) (2.76)
Liquid Operating Money Net (0.06) (0.10) (0.10)
22Orange County Sanitation District
Callan Research/Education
Research and Educational Programs
The Callan Institute provides research to update clients on the latest industry trends and carefully structured educational programs
to enhance the knowledge of industry professionals. Visit www.callan.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
2020 ESG Survey | Callan’s eighth annual survey assessing the
status of environmental, social, and governance (ESG) investing in
the U.S. institutional investment market.
Coping with COVID-19: How Work Is Evolving for Investment
Managers—2nd Edition | Following up on our June publication,
Callan again surveyed investment managers regarding how their
irms were responding to the COVID-19 pandemic, focusing on
ofice closures and reopenings, work-from-home approaches,
business travel, and meetings. Respondents relected a variety
of irms by location, employee size, ownership structure, and as-
sets under management.
Private Equity Fees and Terms Study | To help institutional in-
vestors better evaluate private equity funds, Callan conducted an
extensive analysis of the fees and terms for private equity part-
nerships. Using that data, we created this study to help investors
evaluate a partnership’s terms compared to its peers.
Real Estate Indicators: Too Hot to Touch or Cool Enough to
Handle? | Callan’s Real Assets Consulting group identiies seven
indicators that, combined with an understanding of prevailing market
dynamics, have helped signal when the institutional real estate mar-
ket is overheated or cooled.
Blog Highlights
How Investors Can Address Climate Risk in Real Estate |
Climate risk, which refers to the hazards associated with climate
change, can signiicantly threaten real estate portfolios. Institutional
investors and real estate investment managers must evaluate the
increasing signiicance of climate risk given the material inancial
impact that climate change can have on real estate portfolios.
Fine-Tuning Implementation of the CARES Act | Drafting the
CARES Act was expedited, which means there is a limited con-
gressional record to clarify provisions. The IRS has issued two
notices and a FAQ to clarify how deined contribution (DC) plan
sponsors should implement the provisions, touching on required
notices, tax reporting, and recordkeeping.
DOL Proposes Tightened Proxy Voting Guidelines | The depart-
ment’s new proposal dovetails with SEC guidance inalized in 2020
and would create a reined set of circumstances in which plan idu-
ciaries may engage in proxy voting.
Quarterly Periodicals
Private Equity Trends, 2Q20 | A high-level summary of private
equity activity in the quarter through all the investment stages
Active vs. Passive Charts, 2Q20 | A comparison of active man-
agers alongside relevant benchmarks over the long term
Market Pulse Flipbook, 2Q20 | A quarterly market reference
guide covering trends in the U.S. economy, developments for in-
stitutional investors, and the latest data on the capital markets
Capital Market Review, 2Q20 | Analysis and a broad overview of
the economy and public and private market activity each quarter
across a wide range of asset classes
Hedge Fund Quarterly, 2Q20 | Commentary on developments for
hedge funds and multi-asset class (MAC) strategies
Real Assets Reporter, 2Q20 | In this quarter’s edition, Barbara
Bernard and Sally Haskins discuss how new risk-retention rules
affect the CMBS market. In addition, it includes analysis of the
performance of real estate and other real assets in 2Q20.
Education
3rd Quarter 2020
Events
Miss out on a Callan conference or workshop? Event summa-
ries and speakers’ presentations are available on our website:
www.callan.com/library/
Please mark your calendar and look forward to upcoming invitations:
2021 National Conference
June 21-23, 2021
San Francisco | Palace Hotel
For more information about events, please contact Barb
Gerraty: 415-274-3093 / gerraty@callan.com
Education
Founded in 1994, the “Callan College” offers educational sessions
for industry professionals involved in the investment decision-mak-
ing process.
Introduction to Investments—Virtual
This program familiarizes institutional investor trustees and staff
and asset management advisers with basic investment theory,
terminology, and practices. It is held over three days with virtual
modules of 2.5-3 hours. This course is designed for individuals
with less than two years of experience with asset-management
oversight and/or support responsibilities. Tuition is $950 per per-
son and includes instruction and digital materials.
Please look for our updated schedule for 2021 in November
Additional information including registration can be found at:
www.callan.com/cc-introduction-virtual/
Introduction to Investments—In Person
This program familiarizes institutional investor trustees and staff
and asset management advisers with basic investment theory,
terminology, and practices. It lasts one-and-a-half days and is de-
signed for individuals with less than two years of experience with
asset-management oversight and/or support responsibilities. Tu-
ition is $2,350 per person and includes instruction, all materials,
breakfast and lunch on each day, and dinner on the irst evening
with the instructors.
Additional information including dates and registration can be
found at: www.callan.com/callan-college-intro-2/
Unique pieces of research the
Institute generates each year50+
Total attendees of the “Callan
College” since 19943,700
Attendees (on average) of the
Institute’s annual National Conference525
Education: By the Numbers
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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.
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.
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
par.
Average Years to Expected Maturity - This is a measure of the market-value-weighted average of the years to expected
maturity across all of the securities in the portfolio. Expected years to maturity takes into account any put or call options
embedded in the security, any expected sinking-fund paydowns or any expected mortgage principal prepayments.
Average Years to Stated Maturity - The average years to stated maturity is the market value weighted average time to
stated maturity for all securities in the portfolio. This measure does not take into account imbedded options, sinking fund
paydowns, or prepayments.
Current Yield - The current yield is the current annual income generated by the total portfolio market value. It is equal to the
total portfolio coupon payments per year divided by the current total portfolio market value.
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.
30
Disclosures
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 ongoing 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.
Quarterly List as of
September 30, 2020
Manager Name
Aberdeen Standard Investments
Acadian Asset Management LLC
AEGON USA Investment Management Inc.
AllianceBernstein
Allianz
American Century Investments
Amundi Pioneer Asset Management
AQR Capital Management
Ares Management LLC
Ariel Investments, LLC
Aristotle Capital Management, LLC
Atlanta Capital Management Co., LLC
Aviva Investors Americas
AXA Investment Managers
Baillie Gifford International, LLC
Baird Advisors
Baron Capital Management, Inc.
Barrow, Hanley, Mewhinney & Strauss, LLC
Manager Name
BlackRock
BMO Global Asset Management
BNP Paribas Asset Management
BNY Mellon Asset Management
Boston Partners
Brandes Investment Partners, L.P.
Brandywine Global Investment Management, LLC
BrightSphere Investment Group
Brown Brothers Harriman & Company
Cambiar Investors, LLC
CapFinancial Partners, LLC
Capital Group
Carillon Tower Advisers
CastleArk Management, LLC
Causeway Capital Management LLC
Chartwell Investment Partners
ClearBridge Investments, LLC
Cohen & Steers Capital Management, Inc.
Manager Name
Columbia Management Investments
Columbus Circle Investors
Credit Suisse Asset Management
D.E. Shaw Investment Management, L.L.C.
DePrince, Race & Zollo, Inc.
Dimensional Fund Advisors LP
Doubleline
Duff & Phelps Investment Management Co.
DWS
EARNEST Partners, LLC
Eaton Vance Management
Epoch Investment Partners, Inc.
Fayez Sarofim & Company
Federated Hermes, Inc.
Fidelity Institutional Asset Management
Fiera Capital Corporation
First Hawaiian Bank Wealth Management Division
First State Investments
Fisher Investments
Franklin Templeton
Fred Alger Management, Inc.
GAM (USA) Inc.
GCM Grosvenor
Glenmeade Investment Management, LP
GlobeFlex Capital, L.P.
Goldman Sachs
Green Square Capital Advisors, LLC
Guggenheim Investments
GW&K Investment Management
Harbor Capital Group Trust
Hartford Investment Management Co.
Heitman LLC
Hotchkis & Wiley Capital Management, LLC
Income Research + Management, Inc.
Insight Investment Management Limited
Intech Investment Management, LLC
Intercontinental Real Estate Corporation
Invesco
Investec Asset Management North America, Inc.
Ivy Investments
Manager Name
J.P. Morgan
Janus
Jennison Associates LLC
Jobs Peak Advisors
KeyCorp
Lazard Asset Management
Legal & General Investment Management America
Lincoln National Corporation
Longview Partners
Loomis, Sayles & Company, L.P.
Lord Abbett & Company
Los Angeles Capital Management
LSV Asset Management
MacKay Shields LLC
Macquarie Investment Management (MIM)
Manulife Investment Management
Marathon Asset Management, L.P.
McKinley Capital Management, LLC
Mellon
MetLife Investment Management
MFS Investment Management
MidFirst Bank
Mondrian Investment Partners Limited
Montag & Caldwell, LLC
Morgan Stanley Investment Management
Mountain Pacific Advisors, LLC
MUFG Union Bank, N.A.
Natixis Investment Managers
Neuberger Berman
Newton Investment Management
Nikko Asset Management Co., Ltd.
Nile Capital Group LLC
Northern Trust Asset Management
Nuveen
P/E Investments
Pacific Investment Management Company
Parametric Portfolio Associates LLC
Pathway Capital Management
Peregrine Capital Management, LLC
Perkins Investment Management
Manager Name
PFM Asset Management LLC
PGIM Fixed Income
PineBridge Investments
PNC Capital Advisors, LLC
Polen Capital Management
Principal Global Investors
Putnam Investments, LLC
QMA LLC
RBC Global Asset Management
Regions Financial Corporation
Robeco Institutional Asset Management, US Inc.
Rothschild & Co. Asset Management US
S&P Dow Jones Indices
Schroder Investment Management North America Inc.
SLC Management
Smith Graham & Co. Investment Advisors, L.P.
State Street Global Advisors
Stone Harbor Investment Partners L.P.
Strategic Global Advisors
T. Rowe Price Associates, Inc.
Manager Name
The TCW Group, Inc.
Thompson, Siegel & Walmsley LLC
Thornburg Investment Management, Inc.
Tri-Star Trust Bank
UBS Asset Management
USAA Real Estate
VanEck
Versus Capital Group
Victory Capital Management Inc.
Virtus Investment Partners, Inc.
Vontobel Asset Management, Inc.
Voya
WCM Investment Management
WEDGE Capital Management
Wellington Management Company LLP
Wells Fargo Asset Management
Western Asset Management Company LLC
Westfield Capital Management Company, LP
William Blair & Company LLC
CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending September 30, 2020
Orange County Sanitation District
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
Table of Contents As of September 30, 2020
1
SECTION ||||||||||||||Section 1 |Economic Update
2
Economic Update
The US economy continues toexperience asomewhat uneven and slowing pace of economic growth, consistent with more
of a U-shaped (rather than V-shaped) recovery, following a sharp decline in economic activity in the second quarter. The
outlook for the economy remains uncertain and is largely dependent on the course of the pandemic, the amount of
additional fiscal relief, and the timeline for a vaccine, in our view. The Fed’s highly accommodative monetary policy
framework, alongwith aswift and robustfiscal policy response fromthe government earlierthis year, has provided support
for the financial markets amid a challenging economic backdrop. However,we believe financial markets are poised for
increased volatility through year-enddue tothe upcomingelection, aresurgence in virus cases, and an unclear outlook for
additional fiscal relief.Ifthe expectedtimeline foraCOVID-19vaccine was pushed into second half of nextyear orbeyond,
we believe that would fuel a significant amount of financial market volatility.
The Federal OpenMarketCommittee (FOMC) keptmonetary policyunchanged in September with the fed funds targetrate
in a range of 0.0% to 0.25%. Monetary policy remains highly accommodative andFed ChairPowell maintaineda dovishtone
during his press conference. The Fed will continue to use its balance sheet tosupport smooth financial marketfunctioning
by purchasing Treasury and agency mortgage-backed securities and will continue touse itslending facilitiesto support the
flow of credit to businesses and municipalities, as needed. In the September policy statement, the FOMC noted that
inflation continues torun below its 2.0% target, as weaker demand and loweroil prices are holding down consumerprices.
Longer-term, the FOMC will allow inflation to run above 2.0% for some period of time before it looks to tighten policy,
which implies the fed funds target rate will remain anchored nearzero foryears. The Fed’s updated summary of economic
projections signals that the target fed funds rate will remain unchanged through at least 2023, as policymakers do not
expect inflation to exceed 2.0% during that timeframe.
On a year-to-date basis, the yield on 2-year Treasuries was down 144 basis points to 0.13% and the yield on 10-year
Treasuries was down about 123 basis points to 0.68% atthe end of September.In September, the Treasury yield curve was
little changed on a month-over-month basis, following moderate curve steepening in August. We believe a wave of new
Treasury issuance in August put increased upward pressure on longer-term rates.
3
Source: US Department of Labor Source: US Department of Labor
Employment
U.S. nonfarm payrolls were lower than expected, up 661,000 in September versus expectations of 859,000. The unemployment rate declined to
7.9% in Septemberfrom8.4% in August. The decline in the unemployment rate was betterthan expected, however, itwas partially driven by a
decline in the labor participation rate to 61.4% in September from 61.7% in August. The labor participation rate improved modestly after
plunging to 60.2% in April, but remains near the lowest levels since the 1970’s.Nearly 4.5million people have droppedout ofthe laborforce
since January, and 12.6 million people in the labor force were unemployed in September, according to the U.S. Bureau of Labor Statistics
household survey. Workers who classified themselves as employed but absent from work in the September survey understated the
unemployment rate by about 0.4%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and
employed part time for economic reasons, remained high but eased to 12.8% in September from 14.2% in August.
-22,000
-18,000
-14,000
-10,000
-6,000
-2,000
2,000
6,000
10,000
MO
M
C
h
a
n
g
e
I
n
(
0
0
0
'
s
)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
28.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Ra
t
e
(
%
)
4
Initial Claims for Unemployment
840 849 873 866 893 884 1,011 1,104 971 1,191 1,435 1,422 1,308 1,310
10,976
11,979 12,747 12,747 13,544 13,292
14,492 14,759
15,480 16,090 16,951 16,151
17,304
-
5,000
10,000
15,000
20,000
25,000
In
t
h
o
u
s
a
n
d
s
Initial Jobless Claims
Continuing Claims
Initial Claims For Unemployment July 03, 2020 -October 02, 2020
In the most recent week, the number of initial jobless claims declined to 840,000 compared to 849,000 in the prior week. The level of
continuing unemployment claims (where the datais lagged by one week) declinedto about11.0millionfrom roughly12.0millionin the prior
week.Continuingjoblessclaimshave declinedfromthe peakofnearly25millioninearlyMay,buttheyremain well above the 2019 average of
1.7 million.
Source: US Department of Labor
5
Source: US Department of Labor Source: US Department of Commerce
Inflation
The Consumer Price Index (CPI) was up 1.4% year-over-year in September, versus up 1.3% inAugust. Core CPI (CPI less foodand energy) was
up 1.7% year-over-year in September, unchanged from August. The Personal Consumption Expenditures (PCE) index was up 1.4% year-over-
year in August, versus up 1.1% year-over-year in July. Core PCE, which is the Fed's primary inflation gauge, was up 1.6% year-over-year in
August, versus up 1.4% year-over-year in July. Pricing pressures are increasing but remain below the Fed's inflation target.
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
6
Retail sales were softer than expected in August and sales for July were revised down. Ona year-over-yearbasis, retail sales were up 2.6% in
August, versus up 2.4% in July. On a month-over-month basis, retail sales were up just0.6% in August, following a0.9% increase in July. Control
group retail sales fell 0.2% in August, well below expectations for a 0.5% increase. The Consumer Confidence index jumped to 101.8 in
September from 86.3 in August. The improvement in consumer confidence was much better than expected in September but the index
remains well below pre-pandemic levels at the start of this year.
Source: US Department of Commerce Source: The Conference Board
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
Retail Sales YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
80
90
100
110
120
130
140
150
In
d
e
x
L
e
v
e
l
Consumer Confidence
Consumer
7
Source: The Conference Board Source: Federal Reserve Bank of Chicago
Economic Activity
The Conference Board’s Leading Economic Index (LEI) rose 1.2% in August, following a 2.0% increase in July. On a year-over-yearbasis, the LEI
was down 4.7% in August versus down 6.1% in July. According to the Conference Board, the recovery is losing steamand the US economy will
likely head into 2021 under substantially weakened economic conditions. The Chicago Fed National Activity Index (CFNAI) declined to 0.79in
August from 2.54 in July. On a 3-month moving average basis, the CFNAI declined to 3.05 in August from 4.23 in July. Although the CFNAI
declined in August on a 3-month moving basis, it is above the -0.7 recessionary level.
-8.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
Chicago Fed National Activity Index (CFNAI)
3
M
o
n
t
h
A
v
e
r
a
g
e
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
Leading Economic Indicators (LEI)
MO
M
(
%
)
C
h
a
n
g
e
8
Source: US Department of Commerce Source: S&P
Housing
0
200
400
600
800
1000
1200
1400
1600
1800
2000
MO
M
C
h
a
n
g
e
(
I
n
T
h
o
u
s
a
n
d
s
o
f
U
n
i
t
s
)
Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
S&P/Case-Shiller 20 City Composite Home Price Index
YO
Y
(
%
)
C
h
a
n
g
e
Total housing starts fell 5.1% in August to an annual pace of 1,416,000. Single family starts rose 4.1% to an annualized rate of 1,021,000, while
multi-family starts declined 22.7% to an annualized rate of 395,000. On a year-over-year basis, total housing starts were up 2.8% in August.
Meanwhile, permits declined 0.9%in Auguston amonth-over-month basis,to an annualized rate of 1,470,000 (flat on a year-over-year basis).
According to the Case-Shiller 20-City home price index, home prices were up 3.9% year-over-year in July versus up 3.5% year-over-year in June.
The housing market has remained strong during the pandemic. Very low mortgage rates, solid stock market performance, and a meaningful
shift toward working from home are providing strong tailwinds for the housing sector, despite an otherwise challenging economic backdrop.
9
Source: Institute for Supply Management Source: Federal Reserve
Manufacturing
The Institute for Supply Management (ISM) manufacturing index slipped to 55.4 in September from 56.0 in August. New orders remained
strongbutdeclined to 60.2in Septemberfrom67.6in August. Readings above 50.0are indicative of expansion in the manufacturing sector. The
Industrial Production index was down 7.7% year-over-year in August, versus down 7.4% in July. On a month-over-month basis, the Industrial
Production index increased just 0.4% in August, missing expectations of 1.2%,following a3.5% increase in July.Capacity Utilizationimproved
to 71.4% in August from 71.1% in July, but remains well below the long-run average of 79.8%. Overall manufacturing conditions have improved,
following a deep contraction, but the pace of improvement is slowing.
40
42
44
46
48
50
52
54
56
58
60
62
Institute of Supply Management Purchasing Manager
Index
EXPANDING
CONTRACTING
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%
0.0%
4.0%
8.0%
Industrial Production
YO
Y
(
%
)
C
h
a
n
g
e
10
Source: US Department of Commerce Source: US Department of Commerce
9/19 12/19 3/20 6/20
1.8% 1.1% -4.8% -24.0%
0.3% -0.6% -1.6% -8.8%
0.0% 1.5% 1.1% 0.6%
0.3% 0.3% 0.1% 1.2%
0.1% 0.2% 0.1% -0.4%
2.6% 2.4% -5.0% -31.4%
Gross Private Domestic Investment
Personal Consumption Expenditures
Components of GDP
Federal Government Expenditures
State and Local (Consumption and
Gross Investment)
Net Exports and Imports
Total
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Gross Domestic Product (GDP)
According to the third estimate, US gross domestic product (GDP) declined at an annual rate of 31.4% in the second quarter, just slightly less
negative than the initial and second estimates but still the largest decline on record. This follows a 5.0% annualized decline in first quarter
GDP. Personal consumption expenditures plunged 33.2% in the second quarter, following a 6.9% decline in the first quarter. The consensus
forecastcalls forastrongrebound in consumerspending and overall economicactivity in the third quarter, and a slowerpace of improvement
in activity thereafter.
11
Federal Reserve
Source: Federal Reserve Source: Bloomberg
The Fed has taken a wide range ofaggressive actionsto helpstabilize andprovide liquidity to the financial markets. The Fed has lowered the
fed funds target rate to a range of 0.0%-0.25% and continues to purchase Treasury and agency mortgage-backed securities to support smooth
market functioning. Policymakers reinstated the Commercial PaperFunding Facilityand MoneyMarket Mutual Fund LiquidityFacility inorder
to provide liquidity to the commercial paper, money markets, and the municipal bond markets. The Fed has established the Primary Market
Corporate Credit Facility and Secondary Market Corporate Credit Facility to support the corporate bond market. The Term Asset-Backed
SecuritiesLoanFacilityhasbeenestablishedto enable the issuance of asset-backed securities backed by student loans, autoloans, creditcard
loans, and loans guaranteed by the Small Business Administration. The Fed hasestablished thePaycheck ProtectionProgram LiquidityFacility
and Fed’s Main Street Lending Facility to support the flow of credit to businesses. The Fed established the Municipal Liquidity Facility to
purchase short-term debt directly from US states, counties, and cities. The Fed has also provided short-term fundingthrough large-scale repo
operations and lowered the reserve requirement for depository institutions.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
Effective Federal Funds Rate
Yi
e
l
d
(
%
)
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
7,000,000
7,500,000
Federal Reserve Balance Sheet Assets
In
$
m
i
l
l
i
o
n
s
12
Source: Bloomberg Source: Bloomberg
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yi
e
l
d
(
%
)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
US Treasury Yield Curve
Sep-20
Jun-20
Sep-19
Yi
e
l
d
(
%
)
Bond Yields
AtSeptembermonth-end, Treasury yields were much loweron ayear-over-yearbasis. The 3-month T-bill yield was down 172basis points, the
2-year Treasury yield was down 150 basis points, and the 10-Year Treasury yield was down 98basis points, year-over-year. Yields declined
precipitously in March 2020, with the Fed cutting rates by a total of 150 basispoints anda flightto safe-havenassets drivingdown yieldsacross
the curve. The Fed has signaled plans to keep the front end of the Treasury yield curve anchored near zero for at least the next few years.
13
Section 2|SECTION ||||||||||||||Section 2 |Account Profile
14
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.
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.
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.
As of September 30, 2020
15
Compliance As of September 30, 2020
Category Standard Comment
Treasury Issues 10% minimum; 5 years max maturity Complies*
U.S. Agencies 20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 5 years max maturity Complies
Supranational Obligations
"AA" rated or better by a NRSRO; 30% maximum; 5 years max maturity; U.S. dollar denominated senior unsecured unsubordinated obligations issued or
unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-
American Development Bank ("IADB")
Complies
Corporate Medium Term Notes "A" rated or better long term debt by a NRSRO; 30% maximum; 5% max issuer; 5 years max maturity; Issued by corporations organized and operating within the
U.S. or issued by depository institutions licensed by the U.S. or any state and operating within the U.S.Complies
Municipal Securities "A" rated or higher by a NRSRO; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% maximum; 5% max issuer; 5 years max maturity Complies
Mortgage-Backed Securities/ Collateralized
Mortgage Obligations/ Asset-Backed
Securities
"AA" rated or better by a NRSRO; 20% maximum (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 5 years max maturity Complies*
Negotiable Certificates of Deposit (NCD) "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 years max maturity Complies
Certificates of Deposit 5% max issuer; 5 years max maturity; Secured/ collateralized Complies
Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% maximum; 5% max issuer; 180 days max maturity Complies
Commercial Paper A-1 rated or better by a NRSRO; "A" rated or better long term debt issuer by a NRSRO; Issuer is a corporation organized and operating in the U.S. with assets >
$500 million; 25% maximum; 5% max issuer; 10% max of the outstanding commercial paper of any single issuer; 270 days max maturity Complies
Mutual Fund & Money Market Mutual
Fund
Highest rating or "AAA" rated by two NRSROs; SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% maximum in Mutual Funds;
10% per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds; 20% max of OCSD's surplus money Complies
Repurchase Agreements 102% collateralization Complies
Reverse Repurchase Agreements 5% maximum, 90 days max maturity Complies
Local Agency Investment Fund (LAIF)No more than the lesser of 15% of the portfolio or the statutory maximum invested in LAIF; Not used by investment adviser; Investment of OCSD funds in LAIF
shall be subject to investigation and due diligence prior to investing Complies
OCCIP 15% maximum; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP
shall be subject to investigation and due diligence prior to investing Complies
Prohibited Mortgage Derivatives, which include interest-only payments (IOs) and principal-only payments (POs); Inverse floaters, and RE-REMICS (Real Estate Mortgage
Investment Conduits) Complies
Avg Duration Not to exceed 60 months - (80% to 120% of the benchmark)Complies
Max Per Holding 5% max of the total debt outstanding of any issuer per individual holding Complies
Max Per Issuer 5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Fund)Complies
Maximum Maturity 5 years maximum maturity Complies*
Orange County Sanitation District Long Term
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
*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.
16
Portfolio Characteristics
Orange County Sanitation District Long Term
9/30/2020 6/30/2020
Benchmark* Portfolio Portfolio
Average Maturity (yrs)2.69 2.74 2.77
Average Modified Duration 2.59 2.52 2.55
Average Purchase Yield n/a 1.97% 2.04%
Average Market Yield 0.28% 0.26% 0.33%
Average Quality**AAA AA/Aa1 AA/Aa1
Total Market Value 625,217,609 623,291,089
*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 Agency, Asset Backed and Corporate sectors of the market to keep the portfolio
structure and duration in line with Chandler targets. The purchased securities ranged in maturity from July 2012 to September
2025. Two securities were sold and several matured to facilitate the new holdings in the portfolio.
As of September 30, 2020
17
Orange County Sanitation District Long Term
Sector Distribution
ABS
4.7%
Agency
34.3%
CMO
0.2%Corporate
21.8%
Money Market
Fund FI
0.2%
Mortgage Pass
Thru
0.2%
Municipal Bonds
0.3%
Supranational
5.9%
US Treasury
32.5%
September 30, 2020 June 30, 2020
ABS
4.7%
Agency
30.1%
CMO
0.2%
Corporate
23.3%
Money Market
Fund FI
1.0%
Mortgage Pass
Thru
0.2%
Municipal Bonds
0.3%
Supranational
6.0%
US Treasury
34.3%
As of September 30, 2020
The sector allocation was relatively stable. Some of the notable changes include the 4.2% increase in the Agency sector, to
34.3% of the portfolio, partially offset by the 1.8% decline in the US Treasury allocation, to 32.5% of the portfolio.
18
Issue Name Investment Type % Portfolio
Government of United States US Treasury 32.46%
Federal National Mortgage Association Agency 14.99%
Federal Home Loan Bank Agency 9.22%
Federal Home Loan Mortgage Corp Agency 7.84%
Intl Bank Recon and Development Supranational 2.65%
Inter-American Dev Bank Supranational 2.37%
Federal Farm Credit Bank Agency 2.27%
Honda ABS ABS 1.58%
US Bancorp Corporate 1.57%
Toronto Dominion Holdings Corporate 1.39%
Royal Bank of Canada Corporate 1.36%
JP Morgan Chase & Co Corporate 1.29%
Nissan ABS ABS 1.20%
Apple Inc Corporate 1.17%
Bank of America Corp Corporate 1.14%
Charles Schwab Corp/The Corporate 1.14%
Berkshire Hathaway Corporate 1.10%
Chubb Corporation Corporate 1.04%
John Deere ABS ABS 1.04%
PNC Financial Services Group Corporate 1.03%
ChevronTexaco Corp Corporate 1.01%
IBM Corp Corporate 0.97%
International Finance Corp Supranational 0.88%
Intel Corp Corporate 0.87%
Bank of New York Corporate 0.84%
Honeywell Corp Corporate 0.83%
Honda Motor Corporation Corporate 0.71%
Wal-Mart Stores Corporate 0.68%
Toyota ABS ABS 0.54%
General Dynamics Corp Corporate 0.52%
Wells Fargo Corp Corporate 0.50%
Microsoft Corporate 0.49%
Oracle Corp Corporate 0.49%
Exxon Mobil Corp Corporate 0.48%
Morgan Stanley Corporate 0.47%
Merck & Company Corporate 0.34%
Mercedes-Benz Auto Lease Trust ABS 0.33%
New York City Transitional Finance Authority Municipal Bonds 0.23%
Issuers
Orange County Sanitation District Long Term – Account #10268
As of September 30, 2020
19
Issue Name Investment Type % Portfolio
Deere & Company Corporate 0.22%
BlackRock Inc/New York Corporate 0.18%
Federal National Mortgage Association Mortgage Pass Thru 0.15%
First American Govt Obligation Fund Class-Z Money Market Fund FI 0.15%
Federal Home Loan Mortgage Corp CMO 0.11%
University of California Municipal Bonds 0.07%
Federal National Mortgage Association CMO 0.02%
AMRESCO Residental Securities Corp CMO 0.02%
GNMA Mortgage Pass Thru 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%
Issuers
Orange County Sanitation District Long Term – Account #10268
As of September 30, 2020
20
AAA AA A <A NR
09/30/20 7.9% 72.5% 13.0% 1.0% 5.7%
06/30/20 10.1% 68.5% 14.9% 0.5% 6.0%
Source: S&P Ratings
September 30, 2020 vs. June 30, 2020
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
AAA AA A <A NR
9/30/2020 6/30/2020
Quality Distribution
Orange County Sanitation District Long Term
As of September 30, 2020
21
AAA AA A <A NR
09/30/20 77.5% 6.3% 15.3% 0.0% 0.9%
06/30/20 72.4% 6.3% 16.8% 0.0% 4.5%
Source: Moody’s Ratings
September 30, 2020 vs. June 30, 2020
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
AAA AA A <A NR
9/30/2020 6/30/2020
Quality Distribution
Orange County Sanitation District Long Term
As of September 30, 2020
22
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
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 Compared to the Benchmark as of September 30, 2020
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+
Portfolio 4.1% 8.0% 6.7% 17.9% 21.9% 24.2% 17.1% 0.0%
Benchmark* 0.3% 0.1% 1.7% 32.4% 28.7% 20.0% 16.8% 0.0%
*ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index
Duration Distribution
Orange County Sanitation District Long Term
As of September 30, 2020
The duration of the portfolio was close to unchanged, currently 2.52 compared to 2.55 at the end of the prior quarter. Monetary
policy is poised to stay highly accommodative over an intermediate time horizon and the Chandler team anticipates keeping the
duration close to the benchmark in coming quarters.
23
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
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
Total Rate of Return Annualized Since Inception 11/30/2014
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 0.29% 4.67% 5.09% 3.35%2.51% N/A 2.32%
ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index 0.24% 4.73% 5.26% 3.34% 2.41% N/A 2.29%
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.
Investment Performance
Orange County Sanitation District Long Term
As of September 30, 2020
24
Compliance As of September 30, 2020
Category Standard Comment
Treasury Issues 10% minimum; 1 year max maturity Complies
U.S. Agencies 20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 1 year max maturity Complies
Supranational Obligations
"AA" rated or better by a NRSRO; 30% maximum; 1 year max maturity; U.S. dollar denominated senior unsecured unsubordinated obligations issued or
unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC") or the Inter-
American Development Bank ("IADB")
Complies
Corporate Medium Term Notes "A" rated or better long term debt by a NRSRO; 30% maximum; 5% max issuer; 1 year max maturity; Issued by corporations organized and operating within the
U.S. or issued by depository institutions licensed by the U.S. or any state and operating within the U.S.Complies
Municipal Securities "A" rated or higher by a NRSRO; Taxable or tax-exempt municipal bonds issued by any of the 50 states; 10% maximum; 5% max issuer; 1 year max maturity Complies
Mortgage-Backed Securities/ Collateralized
Mortgage Obligations/ Asset-Backed
Securities
"AA" rated or better by a NRSRO; 20% maximum (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its agencies) ; 1 year max maturity Complies
Negotiable Certificates of Deposit (NCD) "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 year max maturity Complies
Certificates of Deposit 5% max issuer; 1 year max maturity; Secured/collateralized Complies
Banker’s Acceptances A-1 rated or highest short term rating by a NRSRO; 40% maximum; 5% max issuer; 180 days max maturity Complies
Commercial Paper A-1 rated or better by a NRSRO; "A" rated or better long term debt issuer by a NRSRO; Issuer is a corporation organized and operating in the U.S. with assets >
$500 million; 25% maximum; 5% max issuer; 10% max of the outstanding commercial paper of any single issuer; 270 days max maturity Complies
Mutual Fund & Money Market Mutual
Fund
Highest rating or "AAA" rated by two NRSROs; SEC registered adviser with AUM >$500 million and experience > than 5 years; 20% maximum in Mutual Funds; 10%
per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds; 20% max of OCSD's surplus money Complies
Repurchase Agreements 102% collateralization Complies
Reverse Repurchase Agreements 5% maximum, 90 days max maturity Complies
Local Agency Investment Fund (LAIF)No more than the lesser of 15% of the portfolio or the statutory maximum invested in LAIF; Not used by investment adviser; Investment of OCSD funds in LAIF shall
be subject to investigation and due diligence prior to investing Complies
OCCIP 15% maximum; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of OCSD funds in OCCIP
shall be subject to investigation and due diligence prior to investing Complies
Prohibited Mortgage Derivatives, which include interest-only payments (IOs) and principal-only payments (POs); Inverse floaters, and RE-REMICS (Real Estate Mortgage
Investment Conduits) Complies
Avg Duration Not to exceed 180 days Complies
Max Per Holding 5% max of the total debt outstanding of any issuer per individual holding Complies
Max Per Issuer 5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Fund)Complies
Maximum Maturity 1 year maximum maturity Complies
Orange County Sanitation District Liquid
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
25
Portfolio Characteristics
Orange County Sanitation District Liquid
9/30/2020 6/30/2020
Benchmark* Portfolio Portfolio
Average Maturity (yrs)0.16 0.32 0.35
Average Modified Duration 0.16 0.32 0.35
Average Purchase Yield n/a 0.17% 0.48%
Average Market Yield 0.10% 0.17% 0.18%
Average Quality**AAA AAA/Aaa AAA/Aaa
Total Market Value 128,667,549 178,600,244
*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, Commercial Paper and Corporate sectors of the market to keep the portfolio
structure consistent with Chandler’s objectives for the strategy. The purchased securities ranged in maturity from November 2020 to
July 2021. One security was called, many matured and $50 million was withdrawn from the portfolio during the quarter.
As of September 30, 2020
26
Orange County Sanitation District Liquid
Sector Distribution
Agency
9.9%
Corporate
7.4%
Money Market
Fund FI
2.3%
Negotiable CD
1.2%
Supranational
0.8%
US Treasury
77.3%
Commercial
Paper
1.2%
September 30, 2020 June 30, 2020
Agency
13.0%
Corporate
4.4%
Money Market
Fund FI
2.0%
Negotiable CD
0.8%
Supranational
3.4%
US Treasury
76.3%
As of September 30, 2020
The sector allocation was stable despite the $50 million withdrawal out of the portfolio. Exposure to the Agency sector remains low
with short maturity discount notes not offering much in the way of relative value compared to the Treasury sector.
27
Issue Name Investment Type % Portfolio
Government of United States US Treasury 77.29%
Federal Home Loan Bank Agency 9.95%
First American Govt Obligation Fund Class-Z Money Market Fund FI 2.27%
Toronto Dominion Holdings Corporate 1.38%
Toyota Motor Corp Corporate 1.20%
Royal Bank of Canada Negotiable CD 1.17%
Toyota Motor Corp Commercial Paper 1.17%
Charles Schwab Corp/The Corporate 1.11%
Apple Inc Corporate 0.92%
JP Morgan Chase & Co Corporate 0.92%
Intl Bank Recon and Development Supranational 0.79%
Kimberly-Clark Corporate 0.59%
Paccar Financial Corporate 0.47%
Chubb Corporation Corporate 0.39%
Visa Inc Corporate 0.39%
TOTAL 100.00%
Issuers
Orange County Sanitation District Liquid – Account #10282
As of September 30, 2020
28
AAA AA A <A NR
09/30/20 83.9% 11.4% 4.7% 0.0% 0.0%
06/30/20 74.7% 22.6% 2.7% 0.0% 0.0%
Source: S&P Ratings
September 30, 2020 vs. June 30, 2020
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
AAA AA A <A NR
9/30/2020 6/30/2020
Quality Distribution
Orange County Sanitation District Liquid
As of September 30, 2020
29
AAA AA A <A NR
09/30/20 92.6% 2.7% 4.7% 0.0% 0.0%
06/30/20 95.6% 1.7% 2.7% 0.0% 0.0%
Source: Moody’s Ratings
September 30, 2020 vs. June 30, 2020
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
AAA AA A <A NR
9/30/2020 6/30/2020
Quality Distribution
Orange County Sanitation District Liquid
As of September 30, 2020
30
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
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 Compared to the Benchmark as of September 30, 2020
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 1.5 1.5 - 2 2 - 2.5 2.5 - 3 3+
Portfolio 25.6% 61.7% 12.7% 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 US Treasury Bill Index
Duration Distribution
Orange County Sanitation District Liquid
As of September 30, 2020
The duration of the portfolio was relatively stable, contracting to 0.32 years compared to 0.35 years at the end of the prior quarter.
The Chandler team will continue to invest the portfolio consistent with the forecasted liquidity needs of the district.
31
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
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
Total Rate of Return Annualized Since Inception 11/30/2014
Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years
Since
Inception
Orange County Sanitation District Liquid 0.04% 1.34% 1.92% 1.82% 1.32% N/A 1.16%
ICE BAML 3-Month US Treasury Bill Index 0.04% 1.10% 1.74% 1.69% 1.20% N/A 1.03%
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.
Investment Performance
Orange County Sanitation District Liquid
As of September 30, 2020
32
Compliance As of September 30, 2020
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 3 NRSROS; 10% maximum; 5% max issuer; 5 years maximum maturity Complies
Asset Backed/ CMOs/ Mortgage-backed "AA" or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; 20% maximum; 5% max issuer (excluding MBS/govt agency); 5 years max
maturity Complies
Negotiable CDs "A" or better on its long term debt by 1 of 3 NRSROs ; "A1/P1" or highest short term ratings by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max
maturity Complies
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; 270 days max maturity Complies
Money Market Fund Highest rating by 2 of 3 NRSROs; 20% maximum; 10% max issuer Complies
Repurchase Agreements 102% collateralization Complies
Reverse Repurchase Agreements 5% maximum, 90 days max maturity Complies
LAIF 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
OCSD Lehman Exposure
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
* Account holds $2 million face value (cusip 525ESC0Y6) and $600,000 face value (cusip 525ESC1B7) of defaulted Lehman Bros Holdings that were purchased by the previous manager. Complied at time of purchase.
33
Portfolio Characteristics
OCSD Lehman Exposure
9/30/2020
Portfolio
6/30/2020
Portfolio
Average Maturity (yrs)12.32 12.07
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 56,821 54,741
*Portfolio is S&P and Moody’s, respectively.
As of September 30, 2020
34
SECTION ||||||||||||||Section 3 |Consolidated Information
35
Portfolio Characteristics
Orange County Sanitation District Consolidated
9/30/2020 6/30/2020
Portfolio Portfolio
Average Maturity (yrs)2.33 2.24
Modified Duration 2.15 2.06
Average Purchase Yield 1.65% 1.68%
Average Market Yield 0.24% 0.30%
Average Quality*AA+/Aa1 AA+/Aa1
Total Market Value 753,941,979 801,946,074
* Portfolio is S&P and Moody’s respectively.
As of September 30, 2020
36
Orange County Sanitation District Consolidated
Sector Distribution
ABS
3.9%
Agency
30.2%
CMO
0.1%
Corporate
19.4%
Money Market
Fund FI
0.5%
Mortgage Pass
Thru
0.1%
Municipal Bonds
0.2%
Negotiable CD
0.2%
Supranational
5.0%
US Treasury
40.1%
Commercial
Paper
0.2%
September 30, 2020 June 30, 2020
ABS
3.7%
Agency
26.3%
CMO
0.1%
Corporate
19.1%
Money Market
Fund FI
1.3%
Mortgage Pass
Thru
0.1%
Municipal Bonds
0.2%
Negotiable CD
0.2%
Supranational
5.4%
US Treasury
43.6%
As of September 30, 2020
37
SECTION ||||||||||||||Section 4 |Portfolio Holdings
38
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
83162CLJ0 Small Business Administration 2001-20C 1
6.340% Due 03/01/2021
2,984.86 03/06/2001
6.34%
2,984.86
2,984.86
101.10
3.39%
3,017.60
15.77
0.00%
32.74
Aaa / AA+
AAA
0.42
0.40
43814PAC4 Honda Auto Receivables Trust 2017-3 A3
1.790% Due 09/20/2021
320,898.64 06/28/2018
2.78%
315,809.39
319,370.57
100.17
0.32%
321,437.69
207.43
0.05%
2,067.12
NR / AAA
AAA
0.97
0.11
43814WAB1 Honda Auto Receivables Trust 2019-1 A2
2.750% Due 09/20/2021
706,874.28 02/19/2019
2.77%
706,828.76
706,857.06
100.25
0.10%
708,620.57
701.97
0.11%
1,763.51
NR / AAA
AAA
0.97
0.09
47788BAD6 John Deere Owner Trust 2017-B A3
1.820% Due 10/15/2021
19,300.21 07/11/2017
1.83%
19,298.80
19,299.87
100.05
0.15%
19,310.78
15.61
0.00%
10.91
Aaa / NR
AAA
1.04
0.03
65478GAD2 Nissan Auto Receivables Trust 2017-B A3
1.750% Due 10/15/2021
292,650.58 11/06/2018
3.10%
288,112.21
291,046.06
100.16
0.09%
293,129.91
227.62
0.05%
2,083.85
Aaa / NR
AAA
1.04
0.10
89239AAB9 Toyota Auto Receivables Trust 2019-A A2A
2.830% Due 10/15/2021
430,940.84 02/05/2019
2.85%
430,901.72
430,925.63
100.22
0.12%
431,892.62
542.03
0.07%
966.99
Aaa / AAA
NR
1.04
0.08
47789JAB2 John Deere Owner Trust 2019-A A2
2.850% Due 12/15/2021
419,926.33 03/05/2019
2.87%
419,907.19
419,917.98
100.19
0.10%
420,736.78
531.91
0.07%
818.80
Aaa / NR
AAA
1.21
0.07
43815NAB0 Honda Auto Receivables Trust 2019-3 A2
1.900% Due 04/15/2022
2,182,158.82 08/20/2019
1.92%
2,182,006.07
2,182,108.67
100.57
0.24%
2,194,498.75
1,842.71
0.35%
12,390.08
Aaa / AAA
NR
1.54
0.34
47788CAC6 John Deere Owner Trust 2018-A A3
2.660% Due 04/18/2022
391,673.18 02/21/2018
2.68%
391,645.02
391,662.66
100.55
0.35%
393,815.84
463.04
0.06%
2,153.18
Aaa / NR
AAA
1.55
0.24
477870AB5 John Deere Owner Trust 2019-B A2
2.280% Due 05/16/2022
1,242,530.55 07/16/2019
2.29%
1,242,525.83
1,242,527.83
100.49
0.22%
1,248,562.69
1,259.10
0.20%
6,034.86
Aaa / NR
AAA
1.62
0.24
43814UAG4 Honda Auto Receivables Trust 2018-2 A3
3.010% Due 05/18/2022
937,656.48 05/22/2018
3.03%
937,636.04
937,648.10
101.14
0.28%
948,352.28
1,019.18
0.15%
10,704.18
NR / AAA
AAA
1.63
0.42
43815HAC1 Honda Auto Receivables Trust 2018-3 A3
2.950% Due 08/22/2022
2,445,741.84 08/21/2018
2.98%
2,445,406.29
2,445,582.71
101.31
0.39%
2,477,836.89
2,004.15
0.40%
32,254.18
Aaa / NR
AAA
1.89
0.51
47788EAC2 John Deere Owner Trust 2018-B A3
3.080% Due 11/15/2022
2,901,661.29 07/18/2018
3.10%
2,901,441.35
2,901,553.00
101.39
0.10%
2,942,116.14
3,972.05
0.47%
40,563.14
Aaa / NR
AAA
2.13
0.47
58770FAC6 Mercedes Benz Auto Lease Trust 2020-A A3
1.840% Due 12/15/2022
2,050,000.00 01/21/2020
1.85%
2,049,729.81
2,049,793.05
101.63
0.54%
2,083,380.15
1,676.44
0.33%
33,587.10
Aaa / AAA
NR
2.21
1.24
65479GAD1 Nissan Auto Receivables Trust 2018-B A3
3.060% Due 03/15/2023
2,845,516.98 07/17/2018
3.08%
2,845,424.79
2,845,481.41
101.68
0.40%
2,893,429.65
3,869.90
0.46%
47,948.24
Aaa / AAA
NR
2.45
0.63
78445JAA5 SLM Student Loan Trust 2008-9 A
1.747% Due 04/25/2023
11,225.80 08/22/2008
1.81%
11,180.25
11,217.84
98.14
2.44%
11,016.64
37.04
0.00%
(201.20)
Baa3 / B
B
2.57
2.58
65479JAD5 Nissan Auto Receivables Owner 2019-C A3
1.930% Due 07/15/2024
4,185,000.00 10/16/2019
1.94%
4,184,779.03
4,184,823.04
102.47
0.43%
4,288,356.95
3,589.80
0.69%
103,533.91
Aaa / AAA
NR
3.79
1.62
As of September 30, 2020
39
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
89237VAB5 Toyota Auto Receivables Trust 2020-C A3
0.440% Due 10/15/2024
2,960,000.00 07/21/2020
0.44%
2,959,772.08
2,959,781.84
100.23
0.32%
2,966,751.76
578.84
0.47%
6,969.92
Aaa / AAA
NR
4.04
1.89
43813KAC6 Honda Auto Receivables Trust 2020-3 A3
0.370% Due 10/18/2024
3,235,000.00 09/22/2020
0.38%
3,234,524.78
3,234,525.61
100.01
0.37%
3,235,336.44
66.50
0.52%
810.83
NR / AAA
AAA
4.05
2.17
47787NAC3 John Deere Owner Trust 2020-B A3
0.510% Due 11/15/2024
1,480,000.00 07/14/2020
0.52%
1,479,774.45
1,479,787.04
100.26
0.39%
1,483,840.60
335.47
0.24%
4,053.56
Aaa / NR
AAA
4.13
2.16
TOTAL ABS 29,061,740.68 1.98%
29,049,688.72
29,056,894.83 0.33%
29,365,440.73
22,956.56
4.70%
308,545.90
Aaa / AAA
Aaa
2.72
1.08
Agency
3137EAEK1 FHLMC Note
1.875% Due 11/17/2020
5,000,000.00 Various
1.97%
4,986,225.00
4,999,398.35
100.23
0.12%
5,011,435.00
34,895.83
0.81%
12,036.65
Aaa / AA+
AAA
0.13
0.13
3135G0F73 FNMA Note
1.500% Due 11/30/2020
7,500,000.00 Various
1.87%
7,370,726.00
7,495,716.03
100.23
0.13%
7,517,145.00
37,812.50
1.21%
21,428.97
Aaa / AA+
AAA
0.17
0.17
3137EAEL9 FHLMC Note
2.375% Due 02/16/2021
7,500,000.00 02/26/2018
2.45%
7,484,475.00
7,498,025.39
100.84
0.16%
7,562,812.50
22,265.63
1.21%
64,787.11
Aaa / AA+
AAA
0.38
0.38
3130A7CV5 FHLB Note
1.375% Due 02/18/2021
5,365,000.00 02/17/2016
1.46%
5,343,325.40
5,363,339.11
100.47
0.15%
5,390,167.22
8,811.27
0.86%
26,828.11
Aaa / AA+
AAA
0.39
0.38
3135G0J20 FNMA Note
1.375% Due 02/26/2021
10,000,000.00 Various
1.28%
10,040,950.00
10,003,616.54
100.50
0.14%
10,049,960.00
13,368.06
1.61%
46,343.46
Aaa / AA+
AAA
0.41
0.41
313379RB7 FHLB Note
1.875% Due 06/11/2021
4,000,000.00 08/30/2017
1.67%
4,030,160.00
4,005,529.33
101.21
0.13%
4,048,556.00
22,916.67
0.65%
43,026.67
Aaa / AA+
AAA
0.70
0.69
3135G0U35 FNMA Note
2.750% Due 06/22/2021
7,500,000.00 06/28/2018
2.68%
7,515,225.00
7,503,690.91
101.89
0.15%
7,641,577.50
56,718.75
1.23%
137,886.59
Aaa / AA+
AAA
0.73
0.72
3135G0S38 FNMA Note
2.000% Due 01/05/2022
3,000,000.00 01/30/2017
2.04%
2,994,570.00
2,998,609.32
102.38
0.11%
3,071,517.00
14,333.33
0.49%
72,907.68
Aaa / AA+
AAA
1.27
1.25
3135G0T45 FNMA Note
1.875% Due 04/05/2022
5,000,000.00 05/05/2017
1.99%
4,972,500.00
4,991,549.08
102.63
0.13%
5,131,670.00
45,833.33
0.83%
140,120.92
Aaa / AA+
AAA
1.51
1.49
3133ELYR9 FFCB Note
0.250% Due 05/06/2022
8,850,000.00 04/30/2020
0.31%
8,838,760.50
8,841,039.19
100.15
0.15%
8,863,646.70
8,911.46
1.42%
22,607.51
Aaa / AA+
AAA
1.60
1.60
3135G0T94 FNMA Note
2.375% Due 01/19/2023
5,000,000.00 Various
2.78%
4,910,990.00
4,957,093.76
104.91
0.24%
5,245,265.00
23,750.00
0.84%
288,171.24
Aaa / AA+
AAA
2.30
2.24
313383QR5 FHLB Note
3.250% Due 06/09/2023
5,000,000.00 08/28/2018
2.87%
5,083,350.00
5,046,857.51
108.05
0.25%
5,402,260.00
50,555.56
0.87%
355,402.49
Aaa / AA+
NR
2.69
2.58
3137EAEN5 FHLMC Note
2.750% Due 06/19/2023
10,000,000.00 Various
2.84%
9,956,500.00
9,976,102.86
106.76
0.25%
10,676,010.00
77,916.66
1.72%
699,907.14
Aaa / AA+
AAA
2.72
2.62
As of September 30, 2020
40
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3135G05G4 FNMA Note
0.250% Due 07/10/2023
6,775,000.00 07/08/2020
0.32%
6,760,433.75
6,761,537.86
99.98
0.26%
6,773,604.35
3,810.94
1.08%
12,066.49
Aaa / AA+
AAA
2.78
2.76
313383YJ4 FHLB Note
3.375% Due 09/08/2023
10,000,000.00 Various
2.88%
10,211,831.00
10,133,634.21
109.15
0.25%
10,914,960.00
21,562.50
1.75%
781,325.79
Aaa / AA+
NR
2.94
2.82
3130A0F70 FHLB Note
3.375% Due 12/08/2023
10,000,000.00 Various
2.79%
10,269,043.75
10,173,641.79
109.84
0.27%
10,984,000.00
105,937.50
1.77%
810,358.21
Aaa / AA+
AAA
3.19
3.03
3135G0V34 FNMA Note
2.500% Due 02/05/2024
5,000,000.00 02/27/2019
2.58%
4,980,850.00
4,987,020.91
107.50
0.25%
5,375,215.00
19,444.44
0.86%
388,194.09
Aaa / AA+
AAA
3.35
3.22
3130A1XJ2 FHLB Note
2.875% Due 06/14/2024
11,110,000.00 Various
1.96%
11,589,031.30
11,465,261.74
109.68
0.25%
12,185,003.60
94,936.49
1.96%
719,741.86
Aaa / AA+
NR
3.71
3.52
3133EKWV4 FFCB Note
1.850% Due 07/26/2024
5,000,000.00 08/13/2019
1.65%
5,048,280.00
5,037,224.73
105.97
0.28%
5,298,500.00
16,701.39
0.85%
261,275.27
Aaa / AA+
AAA
3.82
3.70
3130A2UW4 FHLB Note
2.875% Due 09/13/2024
2,500,000.00 09/12/2019
1.73%
2,635,950.00
2,607,375.94
110.56
0.19%
2,763,970.00
3,593.75
0.44%
156,594.06
Aaa / AA+
AAA
3.96
3.77
3135G0X24 FNMA Note
1.625% Due 01/07/2025
10,000,000.00 Various
1.28%
10,157,936.40
10,141,286.64
105.38
0.35%
10,537,730.00
37,916.66
1.69%
396,443.36
Aaa / AA+
AAA
4.27
4.12
3137EAEP0 FHLMC Note
1.500% Due 02/12/2025
12,335,000.00 Various
1.20%
12,510,182.05
12,489,848.00
104.96
0.35%
12,946,532.30
25,183.96
2.07%
456,684.30
Aaa / NR
AAA
4.37
4.23
3130A4CH3 FHLB Note
2.375% Due 03/14/2025
5,225,000.00 03/19/2020
1.18%
5,526,848.25
5,494,507.37
108.54
0.44%
5,671,162.75
5,859.98
0.91%
176,655.38
Aaa / AA+
AAA
4.45
4.25
3135G03U5 FNMA Note
0.625% Due 04/22/2025
14,000,000.00 Various
0.63%
13,996,711.60
13,997,037.17
101.35
0.33%
14,189,672.00
38,159.72
2.28%
192,634.83
Aaa / AA+
AAA
4.56
4.48
3135G04Z3 FNMA Note
0.500% Due 06/17/2025
9,905,000.00 06/17/2020
0.54%
9,884,496.65
9,885,665.70
100.46
0.40%
9,950,671.96
14,032.08
1.59%
65,006.26
Aaa / AA+
AAA
4.72
4.65
3137EAEU9 FHLMC Note
0.375% Due 07/21/2025
5,030,000.00 07/21/2020
0.48%
5,004,950.60
5,005,911.93
100.02
0.37%
5,030,824.92
3,562.92
0.81%
24,912.99
Aaa / AA+
AAA
4.81
4.76
3135G05X7 FNMA Note
0.375% Due 08/25/2025
7,945,000.00 08/25/2020
0.47%
7,907,817.40
7,908,530.88
99.68
0.44%
7,919,965.31
2,813.85
1.27%
11,434.43
Aaa / AA+
AAA
4.90
4.85
3137EAEX3 FHLMC Note
0.375% Due 09/23/2025
7,660,000.00 09/23/2020
0.44%
7,636,943.40
7,637,019.24
99.67
0.44%
7,634,744.98
478.75
1.22%
(2,274.26)
Aaa / AA+
AAA
4.98
4.93
TOTAL Agency 206,200,000.00 1.62%
207,649,063.05
207,406,071.49 0.26%
213,788,579.09
812,083.98
34.32%
6,382,507.60
Aaa / AA+
Aaa
2.90
2.82
CMO
03215PFN4 AMRESCO Residential Securities 1999-1 A
1.086% Due 06/25/2029
119,021.64 05/20/2011
4.55%
89,377.81
104,713.46
95.53
1.78%
113,697.80
21.55
0.02%
8,984.34
NR / A+
BBB
8.74
7.22
As of September 30, 2020
41
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3133TCE95 FHLMC FSPC E3 A
3.985% Due 08/15/2032
4,760.35 03/11/1998
3.95%
4,765.34
4,762.08
100.89
2.32%
4,802.48
15.81
0.00%
40.40
Aaa / AA+
AAA
11.88
3.13
31397QRE0 FNMA FNR 2011-3 FA
0.826% Due 02/25/2041
146,233.86 12/20/2010
0.83%
146,188.17
146,202.87
101.60
0.45%
148,576.53
20.13
0.02%
2,373.66
Aaa / AA+
AAA
20.42
4.19
31394JY35 FHLMC FSPC T-58 2A
6.500% Due 09/25/2043
585,676.61 06/09/2011
5.40%
663,278.76
640,921.50
119.36
0.10%
699,057.74
634.48
0.11%
58,136.24
Aaa / AA+
AAA
23.00
1.70
TOTAL CMO 855,692.46 4.59%
903,610.08
896,599.91 0.36%
966,134.55
691.97
0.15%
69,534.64
Aaa / AA+
Aaa
20.87
2.74
Corporate
037833BS8 Apple Inc Callable Note Cont 1/23/2021
2.250% Due 02/23/2021
4,000,000.00 05/23/2016
1.96%
4,050,840.00
4,003,403.26
100.70
0.01%
4,028,140.00
9,500.00
0.65%
24,736.74
Aa1 / AA+
NR
0.40
0.31
30231GAV4 Exxon Mobil Corp Callable Note Cont 2/1/2021
2.222% Due 03/01/2021
3,000,000.00 Various
2.10%
3,016,097.40
3,001,397.76
100.66
0.64%
3,019,833.01
5,555.01
0.48%
18,435.25
Aa1 / AA
NR
0.42
0.42
369550BE7 General Dynamics Corp Note
3.000% Due 05/11/2021
3,160,000.00 05/08/2018
3.24%
3,138,038.00
3,155,551.49
101.67
0.27%
3,212,790.96
36,866.67
0.52%
57,239.47
A2 / A
NR
0.61
0.61
166764BG4 Chevron Corp Callable Note Cont 4/15/2021
2.100% Due 05/16/2021
2,500,000.00 05/20/2016
2.23%
2,485,350.00
2,498,169.76
101.02
0.22%
2,525,437.50
19,687.50
0.41%
27,267.74
Aa2 / AA
NR
0.62
0.54
61747WAL3 Morgan Stanley Note
5.500% Due 07/28/2021
2,800,000.00 06/06/2014
3.24%
3,200,848.00
2,846,180.65
104.19
0.43%
2,917,191.20
26,950.00
0.47%
71,010.55
A3 / BBB+
A
0.82
0.81
594918BP8 Microsoft Callable Note Cont 7/8/2021
1.550% Due 08/08/2021
3,045,000.00 Various
1.57%
3,041,385.15
3,044,384.33
101.08
0.15%
3,077,879.91
6,948.52
0.49%
33,495.58
Aaa / AAA
AA+
0.85
0.77
68389XBK0 Oracle Corp Callable Note Cont 8/15/2021
1.900% Due 09/15/2021
3,000,000.00 06/28/2018
3.08%
2,892,240.00
2,967,965.72
101.42
0.27%
3,042,747.00
2,533.33
0.49%
74,781.28
A3 / A
A-
0.96
0.87
06406RAA5 Bank of NY Mellon Corp Callable Note Cont 1/7/2022
2.600% Due 02/07/2022
2,500,000.00 02/08/2017
2.56%
2,504,475.00
2,501,158.15
102.90
0.31%
2,572,412.50
9,750.00
0.41%
71,254.35
A1 / A
AA-
1.36
1.25
69353RFB9 PNC Bank Callable Note Cont 1/18/2022
2.625% Due 02/17/2022
1,000,000.00 03/26/2018
3.32%
974,940.00
991,117.97
103.03
0.29%
1,030,288.00
3,208.33
0.17%
39,170.03
A2 / A
A+
1.38
1.28
084664BT7 Berkshire Hathaway Note
3.000% Due 05/15/2022
4,000,000.00 05/23/2017
2.30%
4,131,120.00
4,042,695.27
104.27
0.36%
4,170,968.00
45,333.33
0.67%
128,272.73
Aa2 / AA
A+
1.62
1.58
95000U2B8 Wells Fargo & Company Note
2.625% Due 07/22/2022
3,000,000.00 Various
2.99%
2,954,520.00
2,981,719.49
103.68
0.58%
3,110,394.00
15,093.76
0.50%
128,674.51
A2 / BBB+
A+
1.81
1.77
00440EAU1 Chubb INA Holdings Inc Callable Note Cont 9/3/2022
2.875% Due 11/03/2022
4,169,000.00 Various
2.54%
4,232,453.17
4,194,358.52
104.60
0.47%
4,360,874.06
49,275.26
0.71%
166,515.54
A3 / A
A
2.09
1.86
As of September 30, 2020
42
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
90331HNL3 US Bank NA Callable Note Cont 12/23/2022
2.850% Due 01/23/2023
2,000,000.00 01/29/2018
2.93%
1,992,640.00
1,996,583.15
105.47
0.39%
2,109,356.00
10,766.67
0.34%
112,772.85
A1 / AA-
AA-
2.32
2.16
808513AT2 Charles Schwab Corp Callable Note Cont 12/25/2022
2.650% Due 01/25/2023
6,750,000.00 05/21/2019
2.74%
6,729,480.00
6,737,073.78
104.85
0.47%
7,077,280.50
32,793.75
1.14%
340,206.72
A2 / A
A
2.32
2.17
06406RAE7 Bank of NY Mellon Corp Callable Note Cont 12/29/2022
2.950% Due 01/29/2023
2,500,000.00 Various
3.03%
2,489,555.00
2,495,550.81
105.34
0.56%
2,633,425.00
12,701.39
0.42%
137,874.19
A1 / A
AA-
2.33
2.18
44932HAH6 IBM Credit Corp Note
3.000% Due 02/06/2023
5,670,000.00 Various
3.26%
5,603,264.40
5,637,650.74
106.28
0.31%
6,026,251.78
25,987.50
0.97%
388,601.04
A2 / A
NR
2.35
2.28
00440EAP2 Chubb INA Holdings Inc Note
2.700% Due 03/13/2023
2,000,000.00 05/24/2018
3.42%
1,937,000.00
1,967,833.62
105.22
0.56%
2,104,348.00
2,700.00
0.34%
136,514.38
A3 / A
A
2.45
2.38
084670BR8 Berkshire Hathaway Callable Note Cont 1/15/2023
2.750% Due 03/15/2023
2,500,000.00 04/20/2018
3.28%
2,440,950.00
2,470,408.87
105.34
0.41%
2,633,480.00
3,055.56
0.42%
163,071.13
Aa2 / AA
A+
2.45
2.23
58933YAF2 Merck & Co Note
2.800% Due 05/18/2023
2,000,000.00 10/26/2018
3.41%
1,948,640.00
1,970,346.63
106.62
0.27%
2,132,452.00
20,688.89
0.34%
162,105.37
A1 / AA-
A+
2.63
2.53
46625HRL6 JP Morgan Chase Callable Note Cont 3/18/2023
2.700% Due 05/18/2023
5,000,000.00 Various
3.59%
4,821,910.00
4,893,083.70
105.60
0.41%
5,280,125.00
49,875.00
0.85%
387,041.30
A2 / A-
AA-
2.63
2.38
69353RFL7 PNC Bank Callable Note Cont 5/9/2023
3.500% Due 06/08/2023
5,000,000.00 Various
3.53%
4,993,318.05
4,996,408.38
107.48
0.61%
5,373,900.00
54,930.56
0.87%
377,491.62
A2 / A
NR
2.69
2.49
166764AH3 Chevron Corp Callable Note Cont 3/24/2023
3.191% Due 06/24/2023
3,500,000.00 11/08/2018
3.59%
3,441,095.00
3,465,160.70
106.86
0.41%
3,740,261.00
30,092.90
0.60%
275,100.30
Aa2 / AA
NR
2.73
2.39
931142EK5 Wal-Mart Stores Callable Note Cont 5/26/2023
3.400% Due 06/26/2023
3,880,000.00 Various
3.41%
3,878,991.40
3,879,448.45
108.04
0.36%
4,191,858.88
34,812.22
0.68%
312,410.43
Aa2 / AA
AA
2.74
2.54
02665WCJ8 American Honda Finance Note
3.450% Due 07/14/2023
845,000.00 07/11/2018
3.49%
843,538.15
844,185.72
107.81
0.62%
911,002.95
6,235.40
0.15%
66,817.23
A3 / A-
NR
2.79
2.66
89114QC48 Toronto Dominion Bank Note
3.500% Due 07/19/2023
5,000,000.00 02/26/2019
3.04%
5,094,200.00
5,060,036.33
108.57
0.42%
5,428,370.00
35,000.00
0.87%
368,333.67
Aa1 / AA-
AA
2.80
2.68
02665WCQ2 American Honda Finance Note
3.625% Due 10/10/2023
2,000,000.00 Various
3.64%
1,998,320.00
1,998,969.64
108.91
0.65%
2,178,214.00
34,437.50
0.35%
179,244.36
A3 / A-
NR
3.03
2.85
24422EUM9 John Deere Capital Corp Note
3.650% Due 10/12/2023
1,250,000.00 11/28/2018
3.64%
1,250,237.50
1,250,147.82
109.88
0.37%
1,373,532.50
21,418.40
0.22%
123,384.68
A2 / A
A
3.03
2.86
06051GHF9 Bank of America Corp Callable Note 1X 3/5/2023
3.550% Due 03/05/2024
6,675,000.00 Various
2.77%
6,770,625.75
6,741,666.69
106.50
0.84%
7,108,608.00
17,113.96
1.14%
366,941.31
A2 / A-
A+
3.43
2.34
09247XAL5 Blackrock Inc Note
3.500% Due 03/18/2024
1,000,000.00 05/09/2019
2.69%
1,036,330.00
1,025,929.49
110.20
0.53%
1,102,010.00
1,263.89
0.18%
76,080.51
Aa3 / AA-
NR
3.47
3.29
As of September 30, 2020
43
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
458140BD1 Intel Corp Callable Note Cont 3/11/2024
2.875% Due 05/11/2024
5,000,000.00 05/09/2019
2.76%
5,025,900.00
5,018,455.95
108.10
0.50%
5,404,905.00
55,902.78
0.87%
386,449.05
A1 / A+
A+
3.61
3.27
037833CU2 Apple Inc Callable Note Cont 3/11/2024
2.850% Due 05/11/2024
3,000,000.00 05/17/2019
2.72%
3,017,760.00
3,012,713.17
107.90
0.53%
3,237,093.00
33,250.00
0.52%
224,379.83
Aa1 / AA+
NR
3.61
3.27
89114QCA4 Toronto Dominion Bank Note
2.650% Due 06/12/2024
3,000,000.00 06/12/2019
2.65%
3,000,570.00
3,000,421.64
106.99
0.73%
3,209,772.00
24,070.83
0.52%
209,350.36
Aa3 / A
AA-
3.70
3.52
02665WCZ2 American Honda Finance Note
2.400% Due 06/27/2024
1,219,000.00 07/10/2019
2.49%
1,213,843.63
1,215,115.65
105.82
0.82%
1,289,976.28
7,639.07
0.21%
74,860.63
A3 / A-
NR
3.74
3.57
78013XZU5 Royal Bank of Canada Note
2.550% Due 07/16/2024
6,500,000.00 09/10/2019
2.28%
6,581,445.00
6,563,719.55
106.98
0.68%
6,953,531.00
34,531.25
1.12%
389,811.45
A2 / A
AA
3.79
3.62
46647PAU0 JP Morgan Chase & Co Callable Note 1X 7/23/2023
3.797% Due 07/23/2024
2,500,000.00 09/12/2019
2.11%
2,632,175.00
2,603,755.88
108.33
0.80%
2,708,202.50
17,930.28
0.44%
104,446.62
A2 / A-
AA-
3.81
2.91
90331HPL1 US Bank NA Callable Note Cont 12/21/2024
2.050% Due 01/21/2025
7,270,000.00 01/16/2020
2.10%
7,254,514.90
7,256,667.73
105.61
0.70%
7,678,188.69
28,979.03
1.23%
421,520.96
A1 / AA-
AA-
4.31
4.04
438516CB0 Honeywell Intl Callable Note Cont 5/1/2025
1.350% Due 06/01/2025
5,000,000.00 06/23/2020
0.85%
5,119,000.00
5,112,415.02
103.10
0.66%
5,155,170.00
24,937.50
0.83%
42,754.98
A2 / A
A
4.67
4.43
78015K7H1 Royal Bank of Canada Note
1.150% Due 06/10/2025
1,500,000.00 07/14/2020
0.93%
1,515,480.00
1,514,814.10
101.40
0.85%
1,520,952.00
5,318.75
0.24%
6,137.90
A2 / A
AA
4.70
4.55
TOTAL Corporate 128,733,000.00 2.73%
129,253,090.50
128,956,665.58 0.50%
135,631,222.22
857,134.79
21.83%
6,674,556.64
A1 / A+
A+
2.62
2.39
Money Market Fund FI
31846V567 First American Govt Obligation MMKT Class-Z 946,228.26 Various
0.05%
946,228.26
946,228.26
1.00
0.05%
946,228.26
0.00
0.15%
0.00
Aaa / AAA
AAA
0.00
0.00
TOTAL Money Market Fund FI 946,228.26 0.05%
946,228.26
946,228.26 0.05%
946,228.26
0.00
0.15%
0.00
Aaa / AAA
Aaa
0.00
0.00
Mortgage Pass Thru
31381PDA3 FNMA FN 466397
3.400% Due 11/01/2020
328,447.94 12/01/2010
3.80%
321,340.15
328,387.04
99.96
2.09%
328,322.80
217.14
0.05%
(64.24)
Aaa / AA+
AAA
0.09
0.13
36225CAZ9 GNMA Pool# G2 80023
3.030% Due 12/20/2026
12,588.60 08/08/1997
2.92%
12,797.07
12,632.81
103.75
1.00%
13,061.10
31.79
0.00%
428.29
Aaa / AA+
AAA
6.22
2.65
36225CC20 GNMA Pool# G2 80088
1.670% Due 06/20/2027
9,352.02 08/11/1997
1.54%
9,556.60
9,398.10
102.06
0.86%
9,545.08
13.01
0.00%
146.98
Aaa / AA+
AAA
6.72
1.87
31348SWZ3 FHLMC FH 786064
3.887% Due 01/01/2028
1,626.74 02/18/2000
4.09%
1,587.13
1,616.43
100.03
1.75%
1,627.23
5.27
0.00%
10.80
Aaa / AA+
AAA
7.26
3.57
As of September 30, 2020
44
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
31371NUC7 FNMA FN 257179
4.500% Due 04/01/2028
11,104.34 12/05/2011
3.72%
11,743.93
11,398.52
108.03
0.74%
11,995.55
41.64
0.00%
597.03
Aaa / AA+
AAA
7.51
2.44
31417YAY3 FNMA Pool# FN MA0022
4.500% Due 04/01/2029
12,456.75 12/05/2011
3.76%
13,174.24
12,809.14
108.91
0.90%
13,567.18
46.71
0.00%
758.04
Aaa / AA+
AAA
8.51
2.67
3138EG6F6 FNMA FN AL0869
4.500% Due 06/01/2029
7,682.55 12/05/2011
3.77%
8,125.07
7,902.04
108.92
0.95%
8,367.81
6.72
0.00%
465.77
Aaa / AA+
AAA
8.67
2.71
36225CNM4 GNMA Pool# G2 80395
1.670% Due 04/20/2030
5,221.94 03/15/2000
1.73%
5,174.58
5,206.82
104.28
0.98%
5,445.22
7.27
0.00%
238.40
Aaa / AA+
AAA
9.56
3.45
36225CN28 GNMA Pool# G2 80408
1.670% Due 05/20/2030
37,845.23 03/15/2000
1.73%
37,460.86
37,721.77
104.28
0.69%
39,464.10
52.67
0.01%
1,742.33
Aaa / AA+
AAA
9.64
2.47
31403GXF4 FNMA Pool# FN 748678
5.000% Due 10/01/2033
1,670.91 06/10/2013
4.16%
1,796.23
1,751.50
113.42
0.75%
1,895.08
6.96
0.00%
143.58
Aaa / AA+
AAA
13.01
3.41
36225DCB8 GNMA Pool# G2 80965
3.230% Due 07/20/2034
33,988.15 07/19/2004
3.24%
33,966.92
33,978.35
104.57
0.63%
35,543.01
91.48
0.01%
1,564.66
Aaa / AA+
AAA
13.81
2.64
31406XWT5 FNMA Pool# FN 823358
3.640% Due 02/01/2035
92,694.12 01/11/2006
3.71%
91,969.95
92,336.41
104.48
1.49%
96,849.88
281.16
0.02%
4,513.47
Aaa / AA+
AAA
14.35
6.31
31406PQY8 FNMA Pool# FN 815971
5.000% Due 03/01/2035
120,391.00 06/10/2013
4.21%
129,420.34
126,408.27
114.86
0.90%
138,276.77
501.63
0.02%
11,868.50
Aaa / AA+
AAA
14.42
3.67
31407BXH7 FNMA Pool# FN 826080
5.000% Due 07/01/2035
15,398.49 06/10/2013
4.22%
16,553.37
16,173.98
114.90
0.91%
17,693.25
64.16
0.00%
1,519.27
Aaa / AA+
AAA
14.76
3.68
31376KT22 FNMA FN 357969
5.000% Due 09/01/2035
82,086.08 06/10/2013
4.22%
88,242.52
86,235.56
115.19
0.94%
94,550.93
79.81
0.02%
8,315.37
Aaa / AA+
AAA
14.93
3.71
31403DJZ3 FNMA Pool #745580
5.000% Due 06/01/2036
75,792.84 06/10/2013
4.26%
81,477.29
79,684.96
115.03
0.96%
87,186.63
315.80
0.01%
7,501.67
Aaa / AA+
AAA
15.68
3.72
31410F4V4 FNMA Pool# FN 888336
5.000% Due 07/01/2036
144,221.19 06/10/2013
4.25%
155,037.80
151,639.47
115.08
0.93%
165,971.91
600.92
0.03%
14,332.44
Aaa / AA+
AAA
15.76
3.70
TOTAL Mortgage Pass Thru 992,568.89 3.86%
1,019,424.05
1,015,281.17 1.31%
1,069,363.53
2,364.14
0.17%
54,082.36
Aaa / AA+
Aaa
9.78
2.69
Municipal Bonds
64971M5E8 New York NY TE-REV
4.075% Due 11/01/2020
1,400,000.00 10/27/2010
4.08%
1,400,000.00
1,400,000.00
100.30
0.61%
1,404,158.00
23,770.83
0.23%
4,158.00
Aa1 / AAA
AAA
0.09
0.09
As of September 30, 2020
45
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
913366EJ5 Univ of California Rgts Med TE-REV
5.035% Due 05/15/2021
400,000.00 11/09/2010
5.04%
400,000.00
400,000.00
102.75
0.62%
410,996.00
7,608.44
0.07%
10,996.00
Aa3 / AA-
AA-
0.62
0.61
TOTAL Municipal Bonds 1,800,000.00 4.29%
1,800,000.00
1,800,000.00 0.62%
1,815,154.00
31,379.27
0.30%
15,154.00
Aa1 / AAA
Aaa
0.21
0.21
Supranational
45950KCM0 International Finance Corp Note
2.250% Due 01/25/2021
2,970,000.00 01/18/2018
2.35%
2,961,268.20
2,969,075.83
100.64
0.25%
2,988,966.42
12,251.25
0.48%
19,890.59
Aaa / AAA
NR
0.32
0.32
4581X0CS5 Inter-American Dev Bank Note
1.875% Due 03/15/2021
5,000,000.00 Various
1.69%
5,059,610.00
5,004,114.78
100.72
0.30%
5,036,145.00
4,166.67
0.81%
32,030.22
Aaa / AAA
AAA
0.45
0.46
45950KCJ7 International Finance Corp Note
1.125% Due 07/20/2021
2,500,000.00 11/09/2016
1.64%
2,441,600.00
2,490,045.07
100.73
0.21%
2,518,302.50
5,546.88
0.40%
28,257.43
Aaa / AAA
NR
0.80
0.80
4581X0CW6 Inter-American Dev Bank Note
2.125% Due 01/18/2022
3,000,000.00 01/10/2017
2.15%
2,996,310.00
2,999,042.14
102.44
0.25%
3,073,062.00
12,927.08
0.49%
74,019.86
Aaa / NR
AAA
1.30
1.28
459058FY4 Intl. Bank Recon & Development Note
2.000% Due 01/26/2022
10,000,000.00 Various
1.99%
10,006,350.00
10,001,266.08
102.34
0.22%
10,234,300.00
36,111.12
1.64%
233,033.92
Aaa / NR
AAA
1.32
1.31
4581X0CZ9 Inter-American Dev Bank Note
1.750% Due 09/14/2022
6,500,000.00 Various
2.65%
6,249,655.00
6,393,048.72
102.96
0.23%
6,692,497.50
5,371.52
1.07%
299,448.78
Aaa / AAA
AAA
1.96
1.93
459058JB0 Intl. Bank Recon & Development Note
0.625% Due 04/22/2025
6,245,000.00 04/15/2020
0.70%
6,220,831.85
6,222,976.01
100.93
0.42%
6,303,147.20
17,238.80
1.01%
80,171.19
Aaa / AAA
NR
4.56
4.48
TOTAL Supranational 36,215,000.00 1.87%
35,935,625.05
36,079,568.63 0.27%
36,846,420.62
93,613.32
5.91%
766,851.99
Aaa / AAA
Aaa
1.75
1.73
US Treasury
912828L99 US Treasury Note
1.375% Due 10/31/2020
6,500,000.00 Various
1.81%
6,402,702.41
6,497,782.72
100.10
0.14%
6,506,753.51
37,401.49
1.05%
8,970.79
Aaa / AA+
AAA
0.08
0.08
912828N89 US Treasury Note
1.375% Due 01/31/2021
6,000,000.00 Various
1.81%
5,895,840.41
5,991,604.84
100.41
0.15%
6,024,612.00
13,899.45
0.97%
33,007.16
Aaa / AA+
AAA
0.34
0.33
912828T34 US Treasury Note
1.125% Due 09/30/2021
7,000,000.00 Various
1.88%
6,757,914.08
6,949,777.65
100.98
0.15%
7,068,362.00
216.35
1.13%
118,584.35
Aaa / AA+
AAA
1.00
1.00
912828T67 US Treasury Note
1.250% Due 10/31/2021
6,000,000.00 12/13/2016
1.92%
5,813,691.98
5,958,702.77
101.21
0.13%
6,072,654.00
31,385.87
0.98%
113,951.23
Aaa / AA+
AAA
1.08
1.07
912828U65 US Treasury Note
1.750% Due 11/30/2021
7,000,000.00 12/28/2016
2.06%
6,900,492.20
6,976,465.88
101.88
0.13%
7,131,796.00
41,168.03
1.15%
155,330.12
Aaa / AA+
AAA
1.17
1.15
912828V72 US Treasury Note
1.875% Due 01/31/2022
3,000,000.00 02/27/2017
1.84%
3,004,814.74
3,001,304.10
102.33
0.13%
3,069,843.00
9,476.90
0.49%
68,538.90
Aaa / AA+
AAA
1.34
1.32
As of September 30, 2020
46
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
912828J76 US Treasury Note
1.750% Due 03/31/2022
5,000,000.00 04/25/2017
1.85%
4,976,383.94
4,992,836.46
102.43
0.13%
5,121,485.00
240.38
0.82%
128,648.54
Aaa / AA+
AAA
1.50
1.49
912828XW5 US Treasury Note
1.750% Due 06/30/2022
5,000,000.00 07/25/2017
1.86%
4,973,454.25
4,990,605.75
102.83
0.13%
5,141,600.00
22,112.77
0.83%
150,994.25
Aaa / AA+
AAA
1.75
1.72
912828L24 US Treasury Note
1.875% Due 08/31/2022
6,000,000.00 09/27/2017
1.92%
5,987,832.60
5,995,269.74
103.33
0.13%
6,199,920.00
9,633.98
0.99%
204,650.26
Aaa / AA+
AAA
1.92
1.89
912828L57 US Treasury Note
1.750% Due 09/30/2022
16,000,000.00 Various
1.98%
15,822,656.25
15,929,559.31
103.23
0.13%
16,517,504.00
769.23
2.64%
587,944.69
Aaa / AA+
AAA
2.00
1.97
912828M80 US Treasury Note
2.000% Due 11/30/2022
8,000,000.00 12/22/2017
2.25%
7,907,500.00
7,959,402.78
104.04
0.13%
8,322,816.00
53,770.49
1.34%
363,413.22
Aaa / AA+
AAA
2.17
2.12
912828N30 US Treasury Note
2.125% Due 12/31/2022
5,000,000.00 01/24/2018
2.44%
4,926,562.50
4,966,522.94
104.47
0.14%
5,223,440.00
26,851.22
0.84%
256,917.06
Aaa / AA+
AAA
2.25
2.20
9128284D9 US Treasury Note
2.500% Due 03/31/2023
10,000,000.00 Various
2.75%
9,887,265.63
9,943,060.92
105.89
0.14%
10,589,060.00
686.82
1.69%
645,999.08
Aaa / AA+
AAA
2.50
2.44
912828R69 US Treasury Note
1.625% Due 05/31/2023
5,000,000.00 05/30/2018
2.67%
4,757,226.56
4,870,769.01
103.95
0.14%
5,197,265.00
27,305.33
0.84%
326,495.99
Aaa / AA+
AAA
2.67
2.61
912828U57 US Treasury Note
2.125% Due 11/30/2023
15,000,000.00 Various
2.53%
14,723,632.81
14,819,045.29
106.18
0.17%
15,927,540.00
107,120.90
2.56%
1,108,494.71
Aaa / AA+
AAA
3.17
3.06
912828V80 US Treasury Note
2.250% Due 01/31/2024
7,500,000.00 Various
2.27%
7,491,503.91
7,494,074.96
106.89
0.18%
8,017,087.50
28,430.70
1.29%
523,012.54
Aaa / AA+
AAA
3.34
3.22
912828W48 US Treasury Note
2.125% Due 02/29/2024
10,000,000.00 04/24/2019
2.32%
9,911,718.75
9,937,889.08
106.63
0.18%
10,662,890.00
18,197.51
1.71%
725,000.92
Aaa / AA+
AAA
3.42
3.31
912828WJ5 US Treasury Note
2.500% Due 05/15/2024
7,000,000.00 06/10/2019
1.91%
7,193,046.88
7,141,782.21
108.33
0.19%
7,582,967.00
66,100.54
1.22%
441,184.79
Aaa / AA+
AAA
3.62
3.46
912828XX3 US Treasury Note
2.000% Due 06/30/2024
5,000,000.00 07/12/2019
1.88%
5,028,710.94
5,021,675.81
106.74
0.19%
5,337,110.00
25,271.74
0.86%
315,434.19
Aaa / AA+
AAA
3.75
3.62
912828WU0 US Treasury Inflation Index Note
0.125% Due 07/15/2024
11,346,608.00 Various
0.23%
11,234,820.76
11,304,099.96
105.79
(1.36%)
12,003,917.05
3,006.19
1.92%
699,817.09
Aaa / AA+
AAA
3.79
3.81
912828YH7 US Treasury Note
1.500% Due 09/30/2024
14,000,000.00 Various
1.72%
13,859,296.88
13,882,434.87
105.14
0.21%
14,719,138.00
576.92
2.35%
836,703.13
Aaa / AA+
AAA
4.00
3.90
9128283J7 US Treasury Note
2.125% Due 11/30/2024
16,500,000.00 Various
1.76%
16,783,886.72
16,738,824.22
107.88
0.22%
17,800,018.50
117,832.99
2.87%
1,061,194.28
Aaa / AA+
AAA
4.17
3.99
As of September 30, 2020
47
Holdings Report
Orange County Sanitation District Long Term - Account #10268
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
912828ZL7 US Treasury Note
0.375% Due 04/30/2025
12,000,000.00 Various
0.38%
11,998,515.63
11,998,587.62
100.59
0.25%
12,070,776.00
18,831.52
1.93%
72,188.38
Aaa / AA+
AAA
4.58
4.54
TOTAL US Treasury 193,846,608.00 1.87%
192,239,470.83
193,362,078.89 0.08%
202,308,554.56
660,287.32
32.46%
8,946,475.67
Aaa / AA+
Aaa
2.75
2.68
TOTAL PORTFOLIO 598,650,838.29 1.99%
598,796,200.54
599,519,388.76 0.26%
622,737,097.56
2,480,511.35
100.00%
23,217,708.80
Aa1 / AA
Aaa
2.74
2.52
TOTAL MARKET VALUE PLUS ACCRUALS 625,217,608.91
As of September 30, 2020
48
Holdings Report
Orange County Sanitation District Liquid - Account #10282
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
Agency
313384K57 FHLB Discount Note
0.120% Due 10/13/2020
6,500,000.00 04/30/2020
0.12%
6,496,403.33
6,499,740.00
100.00
0.12%
6,499,740.00
0.00
5.05%
0.00
P-1 / A-1+
F-1+
0.04
0.04
313384Q77 FHLB Discount Note
0.120% Due 11/24/2020
4,800,000.00 04/29/2020
0.12%
4,796,656.00
4,799,136.00
99.98
0.12%
4,799,136.00
0.00
3.73%
0.00
P-1 / A-1+
F-1+
0.15
0.15
313385AD8 FHLB Discount Note
0.160% Due 01/04/2021
1,500,000.00 04/30/2020
0.16%
1,498,340.00
1,499,366.67
99.96
0.16%
1,499,366.67
0.00
1.17%
0.00
P-1 / A-1+
F-1+
0.26
0.26
TOTAL Agency 12,800,000.00 0.13%
12,791,399.33
12,798,242.67 0.13%
12,798,242.67
0.00
9.95%
0.00
Aaa / AAA
Aaa
0.11
0.11
Commercial Paper
89233GLP9 Toyota Motor Credit Discount CP
0.260% Due 11/23/2020
1,500,000.00 07/28/2020
0.26%
1,498,721.67
1,499,425.83
99.96
0.26%
1,499,425.83
0.00
1.17%
0.00
P-1 / A-1+
F-1
0.15
0.15
TOTAL Commercial Paper 1,500,000.00 0.26%
1,498,721.67
1,499,425.83 0.26%
1,499,425.83
0.00
1.17%
0.00
P-1 / A-1+
F-1
0.15
0.15
Corporate
46625HHU7 JP Morgan Chase Note
4.250% Due 10/15/2020
1,160,000.00 05/26/2020
0.41%
1,176,924.40
1,161,692.44
100.14
0.82%
1,161,647.20
22,732.78
0.92%
(45.24)
A2 / A-
AA-
0.04
0.04
00440EAT4 Chubb INA Holdings Inc Callable Note Cont 10/3/2020
2.300% Due 11/03/2020
500,000.00 05/26/2020
0.49%
503,140.00
500,049.06
100.14
0.54%
500,706.50
4,727.78
0.39%
657.44
A3 / A
A
0.09
0.01
92826CAB8 Visa Inc Callable Note Cont 11/14/2020
2.200% Due 12/14/2020
500,000.00 09/22/2020
0.24%
501,360.00
501,173.33
100.22
0.40%
501,098.50
3,269.44
0.39%
(74.83)
Aa3 / AA-
NR
0.21
0.12
89114QBX5 Toronto Dominion Bank Note
2.550% Due 01/25/2021
1,750,000.00 05/06/2020
0.56%
1,774,762.50
1,760,963.55
100.73
0.27%
1,762,733.00
8,181.25
1.38%
1,769.45
Aa1 / AA-
AA
0.32
0.32
494368BF9 Kimberly-Clark Note
3.875% Due 03/01/2021
750,000.00 05/14/2020
0.66%
768,877.50
759,932.06
101.48
0.34%
761,098.50
2,421.88
0.59%
1,166.44
A2 / A
NR
0.42
0.42
69371RN93 Paccar Financial Corp Note
2.800% Due 03/01/2021
600,000.00 09/08/2020
0.25%
607,086.00
606,368.96
101.05
0.29%
606,310.20
1,400.00
0.47%
(58.76)
A1 / A+
NR
0.42
0.42
037833AR1 Apple Inc Note
2.850% Due 05/06/2021
1,155,000.00 05/08/2020
0.44%
1,182,327.30
1,171,518.17
101.49
0.36%
1,172,207.19
13,258.44
0.92%
689.02
Aa1 / AA+
NR
0.60
0.59
89236TBJ3 Toyota Motor Credit Corp Note
2.750% Due 05/17/2021
1,500,000.00 09/28/2020
0.28%
1,523,295.00
1,523,193.28
101.57
0.26%
1,523,491.50
15,354.17
1.20%
298.22
A1 / A+
A+
0.63
0.62
As of September 30, 2020
49
Holdings Report
Orange County Sanitation District Liquid - Account #10282
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
808513AW5 Charles Schwab Corp Callable Note Cont 4/21/2021
3.250% Due 05/21/2021
1,385,000.00 05/26/2020
0.47%
1,419,472.65
1,406,230.11
101.60
0.37%
1,407,196.01
16,254.51
1.11%
965.90
A2 / A
A
0.64
0.55
TOTAL Corporate 9,300,000.00 0.43%
9,457,245.35
9,391,120.96 0.39%
9,396,488.60
87,600.25
7.37%
5,367.64
A1 / A+
A+
0.41
0.39
Money Market Fund FI
31846V567 First American Govt Obligation MMKT Class-Z 2,920,536.29 Various
0.05%
2,920,536.29
2,920,536.29
1.00
0.05%
2,920,536.29
0.00
2.27%
0.00
Aaa / AAA
AAA
0.00
0.00
TOTAL Money Market Fund FI 2,920,536.29 0.05%
2,920,536.29
2,920,536.29 0.05%
2,920,536.29
0.00
2.27%
0.00
Aaa / AAA
Aaa
0.00
0.00
Negotiable CD
78012UVJ1 Royal Bank of Canada Yankee CD
1.000% Due 02/19/2021
1,500,000.00 04/20/2020
1.00%
1,500,000.00
1,500,000.00
100.00
1.00%
1,500,000.00
6,791.67
1.17%
0.00
P-1 / A-1+
F-1+
0.39
0.39
TOTAL Negotiable CD 1,500,000.00 1.00%
1,500,000.00
1,500,000.00 1.00%
1,500,000.00
6,791.67
1.17%
0.00
Aaa / AAA
Aaa
0.39
0.39
Supranational
459058FH1 Intl. Bank Recon & Development Note
1.375% Due 05/24/2021
1,000,000.00 06/19/2020
0.22%
1,010,570.00
1,007,414.78
100.71
0.28%
1,007,130.00
4,850.69
0.79%
(284.78)
Aaa / AAA
AAA
0.65
0.65
TOTAL Supranational 1,000,000.00 0.22%
1,010,570.00
1,007,414.78 0.28%
1,007,130.00
4,850.69
0.79%
(284.78)
Aaa / AAA
Aaa
0.65
0.65
US Treasury
912796TN9 US Treasury Bill
0.113% Due 10/08/2020
5,000,000.00 04/29/2020
0.11%
4,997,484.38
4,999,890.63
100.00
0.11%
4,999,890.63
0.00
3.89%
0.00
P-1 / A-1+
F-1+
0.02
0.02
9127962S7 US Treasury Bill
0.109% Due 10/22/2020
5,000,000.00 04/30/2020
0.11%
4,997,362.85
4,999,683.54
99.99
0.11%
4,999,683.54
0.00
3.89%
0.00
P-1 / A-1+
F-1+
0.06
0.06
912796TP4 US Treasury Bill
0.100% Due 11/05/2020
5,000,000.00 04/30/2020
0.10%
4,997,375.00
4,999,513.89
99.99
0.10%
4,999,513.89
0.00
3.89%
0.00
P-1 / A-1+
F-1+
0.10
0.10
912796TY5 US Treasury Bill
0.136% Due 12/31/2020
5,000,000.00 04/29/2020
0.14%
4,995,372.22
4,998,281.11
99.97
0.14%
4,998,281.11
0.00
3.88%
0.00
P-1 / A-1+
F-1+
0.25
0.25
912796UC1 US Treasury Bill
0.149% Due 01/28/2021
58,250,000.00 Various
0.15%
58,193,363.48
58,221,262.34
99.95
0.15%
58,221,262.34
0.00
45.25%
0.00
P-1 / A-1+
F-1+
0.33
0.33
As of September 30, 2020
50
Holdings Report
Orange County Sanitation District Liquid - Account #10282
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
912796XE4 US Treasury Bill
0.126% Due 02/25/2021
10,000,000.00 Various
0.13%
9,991,378.33
9,994,855.00
99.95
0.13%
9,994,855.00
0.00
7.77%
0.00
P-1 / A-1+
F-1+
0.41
0.41
912828WR7 US Treasury Note
2.125% Due 06/30/2021
3,000,000.00 09/16/2020
0.12%
3,047,109.38
3,044,803.33
101.50
0.12%
3,045,000.00
16,110.73
2.38%
196.67
Aaa / AA+
AAA
0.75
0.74
912828WY2 US Treasury Note
2.250% Due 07/31/2021
8,000,000.00 Various
0.12%
8,144,296.88
8,141,556.55
101.77
0.13%
8,141,560.00
30,326.08
6.35%
3.45
Aaa / AA+
AAA
0.83
0.83
TOTAL US Treasury 99,250,000.00 0.14%
99,363,742.52
99,399,846.39 0.14%
99,400,046.51
46,436.81
77.29%
200.12
Aaa / AAA
Aaa
0.35
0.35
TOTAL PORTFOLIO 128,270,536.29 0.17%
128,542,215.16
128,516,586.92 0.17%
128,521,869.90
145,679.42
100.00%
5,282.98
Aaa / AAA
Aaa
0.32
0.32
TOTAL MARKET VALUE PLUS ACCRUALS 128,667,549.32
As of September 30, 2020
51
Holdings Report
OCSD Lehman Exposure - Account #10284
CUSIP Security Description Par Value/Units
Purchase Date
Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
Common Stock
SLHOPNTA4 Lehman Brothers, Inc Open Position Long Exposure
0.000% Due 09/30/2020
60,641.49 11/21/2014
0.00%
57,842.64
57,842.64
0.42
0.00%
25,621.03
0.00
45.09%
(32,221.61)
NR / NR
NR
0.00
0.00
TOTAL Common Stock 60,641.49 0.00%
57,842.64
57,842.64 0.00%
25,621.03
0.00
45.09%
(32,221.61)
NR / NR
NR
0.00
0.00
Corporate
525ESCIB7 Lehman Brothers Note-Defaulted
0.000% Due 01/24/2021
600,000.00 09/19/2008
0.00%
318,603.60
318,603.60
1.20
0.00%
7,200.00
0.00
12.67%
(311,403.60)
NR / NR
NR
0.32
0.00
525ESC0Y6 Lehman Brothers Note-Defaulted
0.000% Due 10/22/2049
2,000,000.00 09/18/2008
0.00%
1,026,605.56
1,026,605.56
1.20
0.00%
24,000.00
0.00
42.24%
(1,002,605.56)
NR / NR
NR
29.08
0.00
TOTAL Corporate 2,600,000.00 0.00%
1,345,209.16
1,345,209.16 0.00%
31,200.00
0.00
54.91%
(1,314,009.16)
NR / NR
NR
22.44
0.00
TOTAL PORTFOLIO 2,660,641.49 0.00%
1,403,051.80
1,403,051.80 0.00%
56,821.03
0.00
100.00%
(1,346,230.77)
NR / NR
NR
12.32
0.00
TOTAL MARKET VALUE PLUS ACCRUALS 56,821.03
As of September 30, 2020
52
SECTION ||||||||||||||Section 5 |Transactions
53
Transaction Ledger
Orange County Sanitation District Long Term - Account #10268
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 07/10/2020 3135G05G4 6,775,000.00 FNMA Note
0.25% Due: 07/10/2023
99.785 0.32% 6,760,433.75 0.00 6,760,433.75 0.00
Purchase 07/16/2020 78015K7H1 1,500,000.00 Royal Bank of Canada Note
1.15% Due: 06/10/2025
101.032 0.93% 1,515,480.00 1,725.00 1,517,205.00 0.00
Purchase 07/22/2020 47787NAC3 1,480,000.00 John Deere Owner Trust 2020-B A3
0.51% Due: 11/15/2024
99.985 0.52% 1,479,774.45 0.00 1,479,774.45 0.00
Purchase 07/23/2020 3137EAEU9 5,030,000.00 FHLMC Note
0.375% Due: 07/21/2025
99.502 0.48% 5,004,950.60 0.00 5,004,950.60 0.00
Purchase 07/27/2020 89237VAB5 2,960,000.00 Toyota Auto Receivables Trust 2020-C A3
0.44% Due: 10/15/2024
99.992 0.44% 2,959,772.08 0.00 2,959,772.08 0.00
Purchase 08/27/2020 3135G05X7 7,945,000.00 FNMA Note
0.375% Due: 08/25/2025
99.532 0.47% 7,907,817.40 0.00 7,907,817.40 0.00
Purchase 09/25/2020 3137EAEX3 7,660,000.00 FHLMC Note
0.375% Due: 09/23/2025
99.699 0.44% 7,636,943.40 0.00 7,636,943.40 0.00
Purchase 09/29/2020 43813KAC6 3,235,000.00 Honda Auto Receivables Trust 2020-3 A3
0.37% Due: 10/18/2024
99.985 0.38% 3,234,524.78 0.00 3,234,524.78 0.00
Subtotal 36,585,000.00 36,499,696.46 1,725.00 36,501,421.46 0.00
Security
Contribution
08/31/2020 912828WU0 59,488.00 US Treasury Inflation Index Note
0.125% Due: 07/15/2024
100.000 59,488.00 9.50 59,497.50 0.00
Security
Contribution
09/30/2020 912828WU0 57,200.00 US Treasury Inflation Index Note
0.125% Due: 07/15/2024
100.000 57,200.00 14.96 57,214.96 0.00
Subtotal 116,688.00 116,688.00 24.46 116,712.46 0.00
TOTAL ACQUISITIONS 36,701,688.00 36,616,384.46 1,749.46 36,618,133.92 0.00
June 30, 2020 through September 30, 2020
As of September 30, 2020
54
Transaction Ledger
Orange County Sanitation District Long Term - Account #10268
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
DISPOSITIONS
Sale 07/09/2020 9127963Q0 1,000,000.00 US Treasury Bill
0.141% Due: 08/25/2020
99.986 0.14% 999,855.08 0.00 999,855.08 38.51
Sale 07/15/2020 9127963Q0 3,000,000.00 US Treasury Bill
0.141% Due: 08/25/2020
99.986 0.14% 2,999,594.78 0.00 2,999,594.78 74.82
Sale 07/22/2020 9127963Q0 5,200,000.00 US Treasury Bill
0.141% Due: 08/25/2020
99.992 0.14% 5,199,558.00 0.00 5,199,558.00 248.01
Sale 09/24/2020 912828L99 500,000.00 US Treasury Note
1.375% Due: 10/31/2020
100.137 1.77% 500,683.59 2,746.26 503,429.85 893.94
Subtotal 9,700,000.00 9,699,691.45 2,746.26 9,702,437.71 1,255.28
Redemption 08/21/2020 404280BF5 3,000,000.00 HSBC Holdings PLC Note
2.65% Due: 01/05/2022
103.140 2.89% 3,094,200.00 10,158.33 3,104,358.33 103,678.76
Redemption 08/21/2020 404280BF5 1,500,000.00 HSBC Holdings PLC Note
2.65% Due: 01/05/2022
103.140 3.46% 1,547,100.00 5,079.17 1,552,179.17 62,540.03
Subtotal 4,500,000.00 4,641,300.00 15,237.50 4,656,537.50 166,218.79
Maturity 07/22/2020 94974BGM6 5,000,000.00 Wells Fargo Corp Note
2.6% Due: 07/22/2020
100.000 5,000,000.00 0.00 5,000,000.00 0.00
Maturity 08/25/2020 9127963Q0 800,000.00 US Treasury Bill
0.141% Due: 08/25/2020
100.000 800,000.00 0.00 800,000.00 0.00
Subtotal 5,800,000.00 5,800,000.00 0.00 5,800,000.00 0.00
Security
Withdrawal
07/31/2020 912828WU0 2,288.00 US Treasury Inflation Index Note
0.125% Due: 07/15/2024
99.865 0.14% 2,288.00 0.00 2,288.00 9.04
Subtotal 2,288.00 2,288.00 0.00 2,288.00 9.04
TOTAL DISPOSITIONS 20,002,288.00 20,143,279.45 17,983.76 20,161,263.21 167,483.11
June 30, 2020 through September 30, 2020
As of September 30, 2020
55
Transaction Ledger
Orange County Sanitation District Liquid - Account #10282
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 07/28/2020 89233GLP9 1,500,000.00 Toyota Motor Credit Discount CP
0.26% Due: 11/23/2020
99.915 0.26% 1,498,721.67 0.00 1,498,721.67 0.00
Purchase 08/07/2020 912796UC1 5,000,000.00 US Treasury Bill
0.105% Due: 01/28/2021
99.949 0.11% 4,997,462.50 0.00 4,997,462.50 0.00
Purchase 08/12/2020 912796UC1 2,750,000.00 US Treasury Bill
0.11% Due: 01/28/2021
99.948 0.11% 2,748,579.93 0.00 2,748,579.93 0.00
Purchase 08/31/2020 912796XE4 5,000,000.00 US Treasury Bill
0.112% Due: 02/25/2021
99.945 0.11% 4,997,231.11 0.00 4,997,231.11 0.00
Purchase 09/14/2020 69371RN93 600,000.00 Paccar Financial Corp Note
2.8% Due: 03/01/2021
101.181 0.25% 607,086.00 606.67 607,692.67 0.00
Purchase 09/17/2020 912828WR7 3,000,000.00 US Treasury Note
2.125% Due: 06/30/2021
101.570 0.12% 3,047,109.38 13,685.46 3,060,794.84 0.00
Purchase 09/17/2020 912828WY2 3,000,000.00 US Treasury Note
2.25% Due: 07/31/2021
101.848 0.12% 3,055,429.69 8,804.35 3,064,234.04 0.00
Purchase 09/24/2020 92826CAB8 500,000.00 Visa Inc Callable Note Cont 11/14/2020
2.2% Due: 12/14/2020
100.272 0.24% 501,360.00 3,055.56 504,415.56 0.00
Purchase 09/30/2020 89236TBJ3 1,500,000.00 Toyota Motor Credit Corp Note
2.75% Due: 05/17/2021
101.553 0.28% 1,523,295.00 15,239.58 1,538,534.58 0.00
Purchase 09/30/2020 912828WY2 5,000,000.00 US Treasury Note
2.25% Due: 07/31/2021
101.777 0.12% 5,088,867.19 18,648.10 5,107,515.29 0.00
Subtotal 27,850,000.00 28,065,142.47 60,039.72 28,125,182.19 0.00
TOTAL ACQUISITIONS 27,850,000.00 28,065,142.47 60,039.72 28,125,182.19 0.00
June 30, 2020 through September 30, 2020
As of September 30, 2020
56
Transaction Ledger
Orange County Sanitation District Liquid - Account #10282
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
DISPOSITIONS
Call 09/29/2020 46625HNX4 1,000,000.00 JP Morgan Chase Callable Note Cont 09/29/2020
2.55% Due: 10/29/2020
100.000 1.17% 1,000,000.00 10,625.00 1,010,625.00 0.00
Subtotal 1,000,000.00 1,000,000.00 10,625.00 1,010,625.00 0.00
Maturity 07/27/2020 313384ZX0 2,500,000.00 FHLB Discount Note
0.18% Due: 07/27/2020
100.000 2,500,000.00 0.00 2,500,000.00 0.00
Maturity 07/29/2020 313384ZZ5 5,000,000.00 FHLB Discount Note
0.1% Due: 07/29/2020
100.000 5,000,000.00 0.00 5,000,000.00 0.00
Maturity 07/30/2020 912796WY1 3,500,000.00 US Treasury Bill
0.28% Due: 07/30/2020
100.000 3,500,000.00 0.00 3,500,000.00 0.00
Maturity 08/27/2020 912796XG9 13,000,000.00 US Treasury Bill
0.108% Due: 08/27/2020
100.000 13,000,000.00 0.00 13,000,000.00 0.00
Maturity 08/31/2020 459052E28 5,000,000.00 IBRD Discount Note
0.34% Due: 08/31/2020
100.000 5,000,000.00 0.00 5,000,000.00 0.00
Maturity 08/31/2020 9128284Y3 7,000,000.00 US Treasury Note
2.625% Due: 08/31/2020
100.000 7,000,000.00 0.00 7,000,000.00 0.00
Maturity 08/31/2020 912828L32 15,000,000.00 US Treasury Note
1.375% Due: 08/31/2020
100.000 15,000,000.00 0.00 15,000,000.00 0.00
Maturity 08/31/2020 912828VV9 15,000,000.00 US Treasury Note
2.125% Due: 08/31/2020
100.000 15,000,000.00 0.00 15,000,000.00 0.00
Maturity 09/15/2020 9127963Y3 7,000,000.00 US Treasury Bill
0.111% Due: 09/15/2020
100.000 7,000,000.00 0.00 7,000,000.00 0.00
Maturity 09/28/2020 313312H60 3,000,000.00 FFCB Discount Note
0.11% Due: 09/28/2020
100.000 3,000,000.00 0.00 3,000,000.00 0.00
Subtotal 76,000,000.00 76,000,000.00 0.00 76,000,000.00 0.00
TOTAL DISPOSITIONS 77,000,000.00 77,000,000.00 10,625.00 77,010,625.00 0.00
June 30, 2020 through September 30, 2020
As of September 30, 2020
57
Important Disclosures
2020 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 Part2A.
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. Economic factors, market conditions or changes in investment strategies,
contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the
deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ice Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and
all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included
in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the
index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their
respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be
reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to
change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of
future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a
substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk.Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the
borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in
general could decline due to economic conditions, especially during periods of rising interest rates.
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.
As of September 30, 2020
58
Benchmark Disclosures
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.
Pleasevisit 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
scheduleand a minimum amount outstanding of $1billion for US Treasuriesand $250million for all other securities. (Index:BVA0. Please visit www.mlindex.ml.com for more information)
As of September 30, 2020
59
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
Aa1
Aa2
Aa3
AA+
AA
AA-
AA+
AA
AA-
Upper Medium Grade
A1
A2
A3
A+
A
A-
A+
A
A-
Medium Grade
Baa1
Baa2
Baa3
BBB+
BBB
BBB-
BBB+
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 "1", "2", or "3" based on the strength of
the issue within each category. Accordingly, "A1" would be the strongest group of A
securities and "A3" 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 “AA” has a very strong capacity to pay interest and repay principal and
differs from the highest rated issues only in small degree.
A - Debt rated "A" has a strong capacity to pay interest and repay principal although it is
somewhat more susceptible to the adverse effects of changes in circumstances and
economic conditions than debt in higher rated categories.
BBB - Debt rated "BBB" is regarded as having an adequate capacity to pay interest and
repay principal. Whereas it normally exhibits adequate protection parameters, adverse
economic conditions or changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for debt in this category than in higher rated
categories.
Standard and Poor's - Speculative Grade Rating
Debt rated "BB", "B", "CCC", “CC" and "C" is regarded as having predominantly
speculative characteristics with respect to capacity to pay interest and repay principal.
"BB" indicates the least degree of speculation and "C" the highest. While such debt will
likely have some quality and protective characteristics these are outweighed by major
uncertainties or major exposures to adverse conditions.
BB - Debt rated "BB" has less near-term vulnerability to default than other speculative
issues. However, it faces major ongoing uncertainties or exposure to adverse business,
financial, or economic conditions which could lead to inadequate capacity to meet timely
interest and principal payments. The "BB" rating category is also used for debt
subordinated to senior debt that is assigned an actual or implied "BBB" rating.
B - Debt rated "B" has a greater vulnerability to default but currently has the capacity to
meet interest payments and principal repayments. Adverse business, financial, or
economic conditions will likely impair capacity or willingness to pay interest and repay
principal. The "B" rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied "BB" or "BB" rating.
CCC - Debt rated "CCC" has a currently identifiable vulnerability to default, and is
dependent upon favorable business, financial, and economic conditions to meet timely
payment of interest and repayment of principal. In the event of adverse business,
financial, or economic conditions, it is not likely to have the capacity to pay interest and
repay principal. The "CCC" rating category is also used for debt subordinated to senior
debt that is assigned an actual or implied "B" or "B" rating.
CC - The rating "CC" typically is applied to debt subordinated to senior debt that is
assigned an actual or implied "CCC" debt rating.
C - The rating “C” typically is applied to debt subordinated to senior debt which is assigned
an actual or implied “CCC” debt rating. The “C” rating may be used to cover a situation
where a bankruptcy petition has been filed, but debt service payments are continued.
Cl - The rating "Cl" is reserved for income bonds on which no interest is being paid.
D - Debt rated “D” is in payment default. The "D" rating category is used when interest
payments or principal payments are not made on the date due even if the applicable grace
period has not expired, unless S&P believes that such payments will be made during such
grace period. The “D” rating also will be used upon the filing of a bankruptcy petition if
debt service payments are jeopardized.
Plus (+) or Minus (-) - The ratings from "AA" to "CCC" may be modified by the addition
of a plus or minus sign to show relative standing within the major rating categories.
NR - Indicates no rating has been requested, that there is insufficient information on which
to base a rating, or that S&P does not rate a particular type of obligation as a matter of
policy.
OCSD ♦ P.O. Box 8127 ♦ Fountain Valley, CA 92728-8127 ♦ (714) 962-2411
October 31, 2020
STAFF REPORT
Certificates of Participation (COP) Quarterly Report
for the Period Ended September 30, 2020
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 2012B, 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.
Quarterly COP Report
For the Period Ended September 30, 2020
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.
Attachment
1. Graph - OCSD COP Rate History Report
H:\dept\asd\220\Common\Monthly and Quarterly Treasurer's Report\FY 20-21\COP Rate History Report FY 20-21
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(
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DATE
OCSD COP RATE HISTORY REPORT
SEPTEMBER 2020
Series 2010A Fixed Series 2010C Fixed Series 2011A Fixed Series 2012A Fixed Series 2012B Fixed
Series 2014A Fixed Series 2015A Fixed Series 2016A Fixed Series 2017A Fixed Series 2018A Fixed
FY 2020-21 First Quarter Financial Report
This Page Intentionally Left Blank
Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2020-1315 Agenda Date:11/10/2020 Agenda Item No:3.
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: Recommend to the Board of Directors to:
A. Receive and file District purchases made under the General Manager’s authority for the period
of July 1, 2020 to September 30, 2020; and
B. Approve the following additions to the pre-approved OEM Sole Source List for the period of
July 1, 2020 to September 30, 2020:
·CHEVROLET - Chevrolet Truck Engine Replacements
·SANS - Vouchers for Cyber Security Trainings
·TOTAL RESOURCE MANAGEMENT - IBM Maximo Level 3 Support
·WATSON MARLOW - Pumps
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.
RELEVANT STANDARDS
·Quarterly financial reporting
·Ensure the public’s money is wisely spent
Orange County Sanitation District Printed on 11/3/2020Page 1 of 3
powered by Legistar™
File #:2020-1315 Agenda Date:11/10/2020 Agenda Item No:3.
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.OCS D-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 first quarter of fiscal
year 2020-21:
Vendor Name Amount Department Description/Discussion
ALL AMERICAN
ASPHALT
$79,756.07 Operations &
Maintenance
Manhole and Vault Abandonment near Slater
Pump Station Sole Source Justification
2308 Reason: Unique Product/Service
CORTECH
ENGINEERING
$92,290.32 Administrative
Services
Stock Item Purchase of a SEEPEX Rotor
and Stator for Process Pumps Board
Approved OEM Sole Source List M.O.
12/14/16, Item 12
E&M ELECTRIC AND
MACHINERY INC.
$77,165.00 Administrative
Services
Annual Renewal for Wonderware Premium
First Level Support Service 11/16/20 to
11/15/21 Board Approved OEM Sole Source
List M.O. 8/28/19, Item 3
HACH C/O PONTON
INDUSTRIES
$69,394.67 Operations &
Maintenance
Purchase of Multiple Hach Samplers for
Sampling Activities Board Approved OEM
Sole Source List M.O. 12/14/16, Item 12
KPR CONSULTING
INC
$77,514.00 Operations &
Maintenance
Purchase of Three (3) Each 24-inch
Diameter Metal-Seated Gate Valves (FRC-
0004) Specification No. E-2020-1188BD
OFS BRANDS
HOLDINGS INC.
$75,258.00 Operations &
Maintenance
Purchase of OFS Flexxy Guest/Multi-Use
Chairs for Board Room Omnia/National IPA
Contract# R191813, in Accordance with
Ordinance OCSD-52 Section 2.03 (B)
Cooperative Purchases
PUMPACTION CORP
- SHG USA
$76,089.87 Operations &
Maintenance
Purchase of Putzmeister Hydraulic Pump
Units for Sludge Transfer Pumps Board
Approved OEM Sole Source List M.O.
12/14/16, Item 12
SMS PIPELINE SVCS
dba LIBERTY
ENERGY SVC
$72,435.00 Operations &
Maintenance
Blanket PO to provide Operator Qualified
Construction Inspector to support the OCWD
project Sole Source Justification 2302
Reason: Unique Product/Service
SOUTHERN
CALIFORNIA NEWS
GROUP
$99,000.00 Administrative
Services
Convenience Blanket PO for Notices,
Classified, and Legal Advertising 7/1/20 to
6/30/21 GM Article 2, Section 2.2 (b) (1)
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
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File #:2020-1315 Agenda Date:11/10/2020 Agenda Item No:3.
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 first quarter of fiscal year
2020-21:
Vendor Name Amount Department Description/Discussion
CHARLES KING CO
INC.
$197,840.00 Operations &
Maintenance
East Coast Highway Trunk Repair (FRC-0005)
Specification No. TOB-2019-1187 of Master
Service Contract S-2018-942BD-2
CHARLES KING CO
INC.
$298,850.00 Operations &
Maintenance
Newhope-Placentia Grade Separation
Replacement Repair (FE19-09) Specification
No. TOB-2019-1173 of Master Service
Contract S-2018-942BD-2
J R FILANC
CONSTRUCTION
$84,175.00 Operations &
Maintenance
A-Side Primary Basin Launder Cover Repair
at Plant 2 Specification No. TOB-2019-1166
of Master Service Contract S-2018-942BD-4
J R FILANC
CONSTRUCTION
$100,775.00 Operations &
Maintenance
Effluent Pump Station Annex Discharge Pipe
Repair at Plant 2 Specification No. TOB-
2019-1175 of Master Service Contract S-
2018-942BD-4
JAMISON
ENGINEERING
CONTRACTORS
INC.
$131,000.00 Operations &
Maintenance
Digester O Repairs at Plant 2 (FR2-0019)
Specification No. TOB-2019-1190 of Master
Service Contract S-2018-942BD-5
O’CONNELL
ENGINEERING &
CONSTRUCTION
INC
$227,775.00 Operations &
Maintenance
Plant 2 Digesters P, Q, & T Pump Room
Roof Replacements Specification No. TOB-
2019-1174 of Master Service Contract S-
2018-942BD-6
W.A. RASIC
CONSTRUCTION
CO., INC.
$57,700.00 Operations &
Maintenance
Plant 1 Ramp Repair Specification No. TOB-
2019-1179 of Master Service Contract S-
2018-942BD-7
ATTACHMENT
The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda
package:
N/A
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Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2020-1266 Agenda Date:11/10/2020 Agenda Item No:4.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
IBM MAXIMO EMERGENCY AND LEVEL 3 SUPPORT
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
A. Approve a Sole Source Professional Services Agreement to Total Resource Management, Inc
to provide Emergency and Level 3 support for IBM Maximo software, for the time period of
January 1, 2021 through December 31, 2021, for a total amount not to exceed $160,000; and
B. Authorize an option for four (4) one-year renewals at $160,000 per year.
BACKGROUND
The Operations,Maintenance,Warehouse,and Fleet Divisions utilize IBM-Maximo as their core
business software.The benefits of IBM-Maximo include improved asset and labor productivity,
optimization of maintenance resources,scheduling of all maintenance activities,and efficiency in
inventory management.The Orange County Sanitation District (Sanitation District)requires
Emergency and Level 3 support (the uppermost level of support to solve the most difficult problems)
from a third-party vendor to support this software.Total Resource Management,Inc.(TRM)has
been providing this support efficiently for the last four years.
RELEVANT STANDARDS
·Ensure the public’s money is wisely spent
·Maintain a culture of improving efficiency to reduce the cost to provide the current service level
or standard
·Protect Orange County Sanitation District assets
·Maintain a proactive asset management program
PROBLEM
Ongoing IBM-Maximo software support including troubleshooting,upgrades,implementing new
functionality,testing,and documentation is necessary as the Sanitation District’s Operations,
Maintenance,Collections,Warehouse,and Fleet Divisions all utilize IBM-Maximo as their core
business software.
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File #:2020-1266 Agenda Date:11/10/2020 Agenda Item No:4.
PROPOSED SOLUTION
Approve a Sole Source Professional Services Agreement to TRM to provide on-call support on an as
needed basis.
TIMING CONCERNS
The current agreement with TRM expires on December 31, 2020.
RAMIFICATIONS OF NOT TAKING ACTION
The decision not to award a professional service contract to TRM will result in lower levels of service
in supporting IBM-Maximo software and its functionality which would result in decreased efficiency,
reliability, compliance, and safety in the Operations, Maintenance, Warehouse, and Fleet Divisions.
PRIOR COMMITTEE/BOARD ACTIONS
November 2016 -Authorized a sole source purchase order agreement with Total Resource
Management,Inc.for Maximo Emergency and Level 3 Support for one year commencing January 1,
2017 through December 31,2017 for a total amount not to exceed $160,000;and authorized an
option for three annual renewals at $160,000 per year for a total amount of $480,000.
ADDITIONAL INFORMATION
This Professional Services Contract is being sole sourced because TRM is the developer of Rules
Manager (RM)which is a proprietary software used by the Sanitation District to enforce all business
rules within IBM-Maximo.TRM is also the developer of the Lock Out Tag Out (LOTO)module
implemented within Maximo.The LOTO module tracks the safety procedures that are followed
during maintenance work.In addition,over the past eight years,TRM has provided best practices
and Maximo expertise in assisting the Sanitation District in succeeding with our business principles.
TRM has assisted with the Maximo system architecture,setup,and implementation.TRM also has
been providing very good Emergency and Level 3 Support for the past four years.TRM has a
distinctive advantage because the Sanitation District uses TRM’s proprietary software and they are
familiar with the Sanitation District’s business processes, personnel, and Maximo infrastructure.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing Ordinance.This
item has been budgeted.(FY 2020-21 &2021-22 Budget,Section 8,Page 83,EAM Software &
Process Implementation (SP-100)).
ATTACHMENT
The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda
package:
·Professional Consultant Services Agreement
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Orange County Sanitation District 1 of 10 Sole Source No. 2337 Version 080919
PROFESSIONAL CONSULTANT SERVICES AGREEMENT IBM-MAXIMO Emergency and Level 3 Support
Sole Source No. 2337
THIS AGREEMENT 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 Total Resource Management, Inc. with a principal place of business at 5695 King Centre Drive, Suite 200, Alexandria, VA 22315
(hereinafter referred to as "Consultant") collectively referred to as the “Parties”. W I T N E S S E T H
WHEREAS, based on Consultant’s expertise and experience, OCSD desires to temporarily engage Consultant to provide IBM-Maximo emergency and Level 3 support, "Services” as
described in Exhibit “A”; and WHEREAS, Consultant submitted its Proposal, dated September 8, 2020 and
WHEREAS, on November 10, 2020, the Administration Committee of OCSD, by minute order, authorized execution of this Agreement between OCSD and Consultant; and WHEREAS, OCSD has chosen Consultant to conduct Services in accordance with Ordinance No. OCSD-52; and 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 Agreement and all exhibits hereto (called the "Agreement") is made by OCSD and the Consultant. The terms and conditions herein exclusively govern the purchase of Services as described in Exhibit “A”.
1.2 Exhibits to this Agreement are incorporated by reference and made a part of this Agreement as though fully set forth at length herein. Exhibit “A” Scope of Work Exhibit “B” Proposal
Exhibit “C” Determined Insurance Requirement Form Exhibit “D” Contractor Safety Standards Exhibit “E” Human Resources Policies 1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the exhibits hereto, the provisions of this Agreement shall in all respects govern and control. 1.4 This Agreement may not be modified, changed, or supplemented, nor may any obligations hereunder be waived or extensions of time for performance granted, except by written instrument signed by both Parties.
1.5 The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any section or provision hereof.
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1.6 The term “days”, when used in the Agreement, shall mean calendar days, unless otherwise noted as workdays.
1.7 The term “workday”. Workdays are defined as all days that are not Saturday, Sunday, or OCSD observed holidays. Meetings with OCSD staff shall be scheduled from Monday
through Thursday between the hours of 8 a.m. and 4 p.m. (exception is Operations staff who maintain plant operations 24/7 and work a rotated 12-hour shift) and shall conform to OCSD work schedules. OCSD review periods shall not include OCSD observed holidays. 1.8 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. 1.9 Work Hours: The work required under this Agreement may include normal business hours, evenings, and weekends. OCSD will not pay for travel time.
1.10 Consultant shall provide OCSD with all required premiums and/or overtime work at no charge beyond the total amount of the Agreement.
1.11 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Consultant as a result of work performed in anticipation of purchases of said services by OCSD.
2. Scope of Work Subject to the terms of this Agreement, Consultant shall perform the Services identified in Exhibit “A”. Consultant warrants that all of its Services shall be
performed in a competent, professional, and satisfactory manner. 3. 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. A review of the time required for the modification will be made by OCSD and Consultant and the Agreement period adjusted accordingly. 4. Compensation Compensation to be paid by OCSD to Consultant for the Services provided under this Agreement shall be a total amount not to exceed One Hundred Sixty Thousand Dollars ($160,000.00).
5. California Department of Industrial Relations (DIR)Registration and Record of Wages 5.1 To the extent Consultant’s employees and/or subconsultants who will perform work 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. 5.2 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 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per
Section 1776. 5.3 Pursuant to Labor Code Section 1776, the Consultant and subconsultants shall furnish a copy of all certified payroll records to OCSD and/or general public upon request, provided
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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.
5.4 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. Payment and Invoicing 6.1 OCSD shall pay, net thirty (30) days, upon receipt and approval, by OCSD’s Project Manager or designee, of itemized invoices submitted monthly for Services rendered in accordance with Exhibit “A”. OCSD, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. 6.2 Invoices shall be emailed by Consultant to OCSD Accounts Payable at APStaff@OCSD.com and “INVOICE” with the Purchase Order Number and Sole Source No. 2337 shall be referenced in the subject line.
7. Audit Rights Consultant agrees that, during the term of this Agreement 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 Consultant relating to the invoices submitted by Consultant pursuant to this Agreement.
8. Commencement and Term The Services provided under this Agreement shall be for the period of one (1) year commencing on January 1, 2021 and continuing through December 31, 2021.
9. Renewals 9.1 OCSD may exercise the option to renew this Agreement for up to four (4) one-year periods, under the terms and conditions contained herein. OCSD shall make no obligation to renew
nor give reason if it elects not to renew. 9.2 This Agreement may be renewed by OCSD Purchase Order.
10. Extensions The term of this Agreement 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 Agreement for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD. Upon receipt of a termination notice, Consultant shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Consultant for work performed (cost and fee) to the date of termination. Consultant expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Agreement. Such notice of termination shall terminate this
Agreement and release OCSD from any further fee, cost or claim hereunder by Consultant other than for work performed to the date of termination.
12.2 OCSD reserves the right to terminate this Agreement immediately upon OCSD’s determination that Consultant is not complying with the Scope of Work requirements, if the level of service is inadequate, or any other default of this Agreement.
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12.3 OCSD may also immediately terminate for default of this Agreement in whole or in part by written notice to Consultant:
• if Consultant becomes insolvent or files a petition under the Bankruptcy Act; or
• if Consultant sells its business; or
• if Consultant breaches any of the terms of this Agreement; or
• if total amount of compensation exceeds the amount authorized under this Agreement. 12.4 All OCSD property in the possession or control of Consultant shall be returned by Consultant to OCSD on demand, or at the termination of this Agreement, whichever occurs first.
13. Indemnification and Hold Harmless Provision Consultant 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 Consultant's services under this Agreement, or by its subconsultant(s) or by anyone directly or indirectly employed by Consultant, and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the sole active negligence of or willful misconduct of OCSD, Consultant 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 Consultant's performance under the Agreement, 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 Agreement, and/or (c) on account of any goods and services provided under this
Agreement. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Consultant or anyone employed by or working under Consultant. To the maximum extent permitted by law, Consultant'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. Consultant agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. This section shall survive the expiration or early termination of the Agreement.
14. Insurance Consultant and all subconsultants shall purchase and maintain, throughout the life of this Agreement and any periods of warranty or extensions, insurance in amounts equal
to the requirements set forth in the signed Determined Insurance Requirement Form, Exhibit “C“. Consultant shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OCSD, nor shall Consultant allow any subconsultant to
commence service pursuant to a subcontract until all insurance required of the subconsultant has been obtained. Failure to maintain required insurance coverage shall result in termination of this Agreement. 15. Confidentiality and Non-Disclosure 15.1 Consultant acknowledges that in performing the Services hereunder, OCSD may have to disclose to Consultant orally and in writing certain confidential information that OCSD considers proprietary and has developed at great expense and effort.
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15.2 Consultant agrees to maintain in confidence and not disclose to any person, firm, or corporation, without OCSD's prior written consent, any trade secret or confidential
information, knowledge or data relating to the products, process, or operation of OCSD. 15.3 Consultant further agrees to maintain in confidence and not to disclose to any person, firm,
or corporation any data, information, technology, or material developed or obtained by Consultant during the term of this Agreement. 15.4 Consultant agrees as follows:
• To use the confidential information only for the purposes described herein; to not reproduce the confidential information; to hold in confidence and protect the confidential information from dissemination to and use by anyone not a party to this Agreement; and to not use the confidential information to benefit itself or others.
• To restrict access to the confidential information to its Consultant or personnel of Consultant who (1) have a need to have such access and (2) have been advised of and have agreed in writing to treat such information in accordance with the terms of this Agreement.
• To return all confidential information in Consultant's possession upon termination of this Agreement or upon OCSD's request, whichever occurs first.
• To hold in confidence information and materials, if any, developed pursuant to the Services hereunder.
15.5 The provisions of this section shall survive termination or expiration of this Agreement and shall continue for so long as the material remains confidential.
16. Ownership of Documents All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, and agents in the performance of this Agreement shall be the property of OCSD and shall be promptly delivered to OCSD upon request of OCSD’s Project Manager or designee, or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by OCSD of its full rights of ownership of the documents and materials hereunder. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Consultant will be at OCSD's sole risk and without liability to Consultant. Consultant shall ensure that all its subconsultants shall provide for assignment to OCSD of any documents or materials prepared by them.
17. Ownership of Intellectual Property 17.1 Consultant agrees that all designs, plans, reports, specifications, drawings, schematics, prototypes, models, inventions, and all other information and items made during the course of this Agreement and arising from the Services (hereinafter referred to as "New Developments") shall be and are assigned to OCSD as its sole and exclusive property. 17.2 Consultant agrees to promptly disclose to OCSD all such New Developments. Upon OCSD's request, Consultant agrees to assist OCSD, at OCSD's expense, to obtain patents or copyrights for such New Developments, including the disclosure of all pertinent information and data with respect thereto, the execution of all applications, specifications, assignments,
and all other instruments and papers which OCSD shall deem necessary to apply for and to assign or convey to OCSD, its successors and assigns, the sole and exclusive right, title and interest in such New Developments. Consultant agrees to obtain or has obtained written
assurances from its employees and contract personnel of their agreement to the terms hereof with regard to New Developments and confidential information.
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17.3 Consultant warrants that Consultant has good title to any New Developments, and the right to assign New Developments to OCSD free of any proprietary rights of any other party or
any other encumbrance whatever. 17.4 The originals of all computations, drawings, designs, graphics, studies, reports, manuals,
photographs, videotapes, data, computer files, and other documents prepared or caused to be prepared by Consultant or its subconsultants in connection with these Services shall be delivered to and shall become the exclusive property of OCSD. OCSD may utilize these documents for OCSD applications on other projects or extensions of this project, at its own risk.
18. No Solicitation of Employees 18.1 Consultant agrees that it shall not, during the term of this Agreement and for a period of one (1) year immediately following termination of this Agreement, or any extension hereof, call on, solicit, or take away any of the employees whom Consultant became aware of as a result of Consultant's Services to OCSD. 18.2 Consultant acknowledges that OCSD’s employees are critical to its business and OCSD expends significant resources to hire, employ, and train employees. Should Consultant
employ or otherwise engage OCSD’s employees during the term of this Agreement and for a period of one (1) year following termination of this Agreement, Consultant will pay OCSD fifty percent (50%) of the former employee’s most recent annual salary earned at OCSD to
accurately reflect the reasonable value of OCSD’s time and costs. This payment is in addition to any other rights and remedies OCSD may have at law.
19. Independent Contractor Capacity 19.1 The relationship of Consultant to OCSD is that of an independent contractor and nothing herein shall be construed as creating an employment or agency relationship. 19.2 Consultant shall act independently and not as an officer or employee of OCSD. OCSD assumes no liability for Consultant’s action and performance, nor assumes responsibility for taxes, funds, payments or other commitments, implied or expressed, by or for Consultant. 19.3 Consultant shall not be considered an agent of OCSD for any purpose whatsoever, nor shall Consultant have the right to, and shall not, commit OCSD to any agreement, contract or undertaking. Consultant shall not use OCSD’s name in its promotional material or for any
advertising or publicity purposes without expressed written consent. 19.4 Consultant shall not be entitled to any benefits accorded to those individuals listed on
OCSD’s payroll as regular employees including, without limitation, worker's compensation, disability insurance, vacation, holiday or sick pay. Consultant shall be responsible for providing, at Consultant’s expense, disability, worker's compensation or other insurance as
well as licenses and permits usual or necessary for conducting the Services hereunder. 19.5 Consultant shall be obligated to pay any and all applicable Federal, State and local payroll and other taxes incurred as a result of fees hereunder. Consultant hereby indemnifies OCSD for any claims, losses, costs, fees, liabilities, damages or penalties suffered by OCSD arising out of Consultant's breach of this provision. 19.6 Consultant shall not be eligible to join or participate in any benefit plans offered to those individuals listed on OCSD's payroll as regular employees. Consultant shall remain ineligible for such benefits or participation in such benefit plans even if a court later decides that OCSD misclassified Consultant for tax purposes.
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20. Licenses, Permits Consultant represents and warrants to OCSD that it has obtained all licenses, permits, qualification 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 work performed under the terms of this Agreement will be paid by Consultant.
21. Consultant's Representations In the performance of duties under this Agreement, Consultant shall adhere to the highest fiduciary standards, ethical practices and standards of care and competence for their trade/profession. Consultant agrees to comply with all applicable Federal, State and local laws and regulations.
22. Familiarity with Work By executing this Agreement, Consultant 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 Agreement. Should Consultant 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 Consultant’s risk, until written instructions are received from OCSD.
23. Right to Review Services, Facilities, and Records 23.1 OCSD reserves the right to review any portion of the Services performed by Consultant under this Agreement, and Consultant agrees to cooperate to the fullest extent possible.
23.2 Consultant shall furnish to OCSD such reports, statistical data, and other information pertaining to Consultant's Services as shall be reasonably required by OCSD to carry out
its rights and responsibilities under its agreements with its bondholders or noteholders and any other agreement relating to the development of the project(s) and in connection with the issuance of its official statements and other prospectuses with respect to the offering, sale, and issuance of its bonds and other obligations. 23.3 The right of OCSD to review or approve drawings, specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Consultant shall not relieve Consultant of any obligation set forth herein.
24. Force Majeure 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 Agreement.
25. Severability If any section, subsection, or provision of this Agreement, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or
provision is held invalid, the remainder of this Agreement 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. 26. Waiver The waiver of either party of any breach or violation of, or default under, any
provision of this Agreement, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Any breach by Consultant 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.
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27. Remedies In addition to other remedies available in law or equity, if the Consultant fails to make delivery of the goods or Services or repudiates its obligations under this Agreement,
or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) terminate the Agreement; (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 Consultant. In the event OCSD elects to “cover” as described in (3), OCSD shall be entitled to recover from Consultant as damages the difference between the cost of the substitute goods or Services and the Agreement price, together with any incidental or consequential damages.
28. Governing Law This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Agreement or the performance thereof.
29. Environmental Compliance Consultant shall, at its own cost and expense, comply with all Federal, State, and local environmental laws, regulations, and policies which apply to the Consultant, its sub-consultants, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations.
30. 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 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. 31. Dispute Resolution
31.1 In the event of a dispute as to the construction or interpretation of this Agreement, 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. Damage to OCSD's Property Any OCSD property damaged by Consultant will be subject
to repair or replacement by Consultant at no cost to OCSD. 33. Contractor Safety Standards OCSD requires Consultant and its subconsultants to follow and ensure their employees follow all Federal, State and local regulations as well as Contractor Safety Standards while working at OCSD locations. If during the course of the
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Agreement it is discovered that Contractor Safety Standards do not comply with Federal, State or local regulations, then the Consultant is required to follow the most stringent
regulatory requirement at no additional cost to OCSD. Consultant and all of its employees and subconsultants, shall adhere to all applicable Contractor Safety Standards attached hereto in Exhibit “D” and the Human Resources Policies in Exhibit “E”.
34. Freight (F.O.B. Destination) Consultant assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Agreement. 35. Assignments Consultant shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void.
36. Conflict of Interest and Reporting 36.1 Consultant shall at all times avoid conflicts of interest or appearance of conflicts of interest in performance of this Agreement. 36.2 Consultant affirms that to the best of its knowledge there exists no actual or potential conflict
between Consultant’s families, business or financial interest or its Services under this Agreement, and in the event of change in either its private interests or Services under this Agreement, it will raise with OCSD any question regarding possible conflict of interest which
may arise as a result of such change. 37. Third Party Rights Nothing in this Agreement shall be construed to give any rights or
benefits to anyone other than OCSD and Consultant. 38. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to Consultant, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 39. Authority to Execute The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the Parties are formally bound.
40. Read and Understood By signing this Agreement, Consultant represents that it has read and understood the terms and conditions of the Agreement.
41. Entire Agreement This Agreement 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.
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42. Notices All notices under this Agreement 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. Any facsimile notice must be followed within three (3) days by written notice. Rejection or other refusal to accept 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: Jackie Lagade Principal Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Consultant: Lori Wilkins Director, Contracts Total Resource Management, Inc. 5695 King Centre Drive, Suite 200
Alexandria, VA 22315 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 Agreement to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: _________________ By: ___________________________________ Chad Wanke Chair, Administration Committee
Dated: _________________ By: ___________________________________ Kelly A. Lore
Clerk of the Board Dated: _________________ By: ___________________________________ Ruth Zintzun
Purchasing & Contracts Manager TOTAL RESOURCE MANAGEMENT, INC.
Dated: _________________ By: ___________________________________
______________________________________ Print Name and Title of Officer
EXHIBIT “A” Page 1 of 2 Sole Source 2337
EXHIBIT “A” SCOPE OF WORK IBM-MAXIMO Emergency and Level 3 Support Sole Source #2337 The Orange County Sanitation District (OCSD) operates the third largest wastewater agency west of the Mississippi River. Since 1954, OCSD has safely collected, treated, and disposed of
and/or reclaimed the wastewater generated by 2.6 million people living and working in central and northwestern Orange County, California. A professional staff of more than 600 employees manages the day-to-day activities of OCSD. OCSD’s facilities include 587 miles of sewer pipes, located throughout the county, and 2 treatment plants – one in Fountain Valley, CA and the other in Huntington Beach, CA – where wastewater is treated in accordance with strict Federal, State, and local standards. 1. Project Background OCSD is utilizing IBM-MAXIMO as the core software for its Enterprise Asset Management
Program. OCSD is running IBM-MAXIMO version 7.6.1.0 on IBM WebSphere 9.0.0.10. Within the next several months, OCSD will be upgrading to IBM-MAXMIO version 7.6.1.2. OCSD currently has four different IBM-MAXIMO environments installed (Vanilla, Development, Training,
and Production). The IBM-MAXIMO environments are installed on Microsoft Windows Server 2016 64-bit server on VMWare. The IBM-MAXIMO database resides on a Microsoft SQL Server 2016 64-bit on VMWare. OCSD also utilizes IBM-SCHEDULER version 7.6.7.1, IBM-
TRANSPORTATION version 7.6.2.5, IBM-SPATIAL version 7.6.0.5, TRM’s Rules Manager Studio, and TRM’s LOTO Module to provide additional functionality for the IBM-MAXIMO software.
2. Purpose The purpose of this project is for OCSD to contract with Consultant to provide remote Emergency and Level 3 support for IBM-MAXIMO. This is an on-call support contract on an as needed basis and no hours are guaranteed. OCSD will be billed at the agreed upon hourly rate as specified within the contract. Based on past history, OCSD is predicting 1,000 hours of support will be required within the next several years (but no hours are guaranteed). 3. Scope
Consultant will provide a qualified technical resource in a timely manner for level 3 support request and one (1) hour for an emergency support request. Emergency support is defined as
OCSD’s IBM-MAXIMO production system is down. OCSD is seeking support for but not limited to, the following modules/applications:
• IBM WebSphere
• Inventory
• Purchasing
• Self-Service (Desktop Requisition and Service Request)
• Asset and Location
• Work Order Management
• Planning and Scheduling
• Spatial / GIS
• Preventive Maintenance
• Job Plans
EXHIBIT “A” Page 2 of 2 Sole Source 2337
• Application Development and Support
• Rules Manager
• Integration between IBM-MAXIMO and OCSD’s system such as the Financial System, Time Card System (Workforce Software), GIS, and etc...
• Transportation
• LOTO 4. Staff Assistance The Consultant will be assigned a single point of contact on this contract. Any meetings and/or correspondence related to this project shall be scheduled and approved by OCSD’s assigned representative.
Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2020-1311 Agenda Date:11/10/2020 Agenda Item No:5.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
CORITY PLATFORM IMPLEMENTATION -MY CORITY,INDUSTRIAL HYGIENE,AND
ERGONOMICS
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
A. Authorize a Purchase Order to Cority Software Inc. for the implementation and annual software
maintenance of myCority, Industrial Hygiene, and Ergonomics, using the approved U.S.
General Services Agreement (GSA) IT Schedule 70 (M.O. 5/25/16, Item #13), for a total
amount not to exceed $134,834, in accordance with Ordinance No. OCSD-52, Section 2.03(B)
Cooperative Purchases; and
B. Approve a contingency in the amount of $13,483 (10%).
BACKGROUND
The Orange County Sanitation District (Sanitation District)is seeking to enhance existing Cority
software to provide a safer workplace for staff and maintain compliance with the state of California
Occupational Safety and Health Administration (Cal OSHA)regulations regarding industrial hygiene,
ergonomics, auditing, and workplace reporting.
The Sanitation District currently utilizes a Microsoft Access database to manage industrial hygiene
exposure data.The database is limited in its functionality and has inefficiencies with data entry.The
Sanitation District is seeking to leverage Cority Software Inc.(Cority)Industrial Hygiene module to
perform statistical analysis of exposure results to make better decisions regarding engineering
controls and personal protective equipment,ultimately saving time and money for the Sanitation
District.The Industrial Hygiene module also allows for laboratory and other survey reports to be
retained in the system,notify employees of their exposure results,streamline data entry,enable
multiple users to enter data simultaneously, create sampling plans, and track surveys to completion.
The Sanitation District currently uses a SharePoint site to manage office-based ergonomic
evaluations.The SharePoint site is also limited in functionality as it only permits safety staff to be
notified when an assessment is initially requested and when the assessment is closed out.The
Sanitation District is seeking to leverage Cority’s Ergonomics module for ergonomic assessment
requests,identify risks,assign corrective actions,perform audits for both industrial and office
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requests,identify risks,assign corrective actions,perform audits for both industrial and office
workplaces, and track audits to completion.
The Sanitation District is also seeking to upgrade to myCority,which is a simplified user interface
which will enhance the existing Cority system.The myCority upgrade will provide a more streamlined
process for employees to complete safety tasks such as the submission of near misses,
observations,injury reports,and the completion of inspections.Additionally,myCority is available for
use on tablets and mobile phones,providing greater mobility options and improving accuracy of the
information collected while reducing duplication of documentation efforts.
RELEVANT STANDARDS
·Commitment to safety & reducing risk in all operations
·Protect Orange County Sanitation District assets
·Provide a safe and collegial workplace
·Meet OSHA training requirements
·Ensure the public’s money is wisely spent
·Maintain a culture of improving efficiency to reduce the cost to provide the current service level
or standard
PROBLEM
The current system and process for collecting Industrial Hygiene information is limited in its function,
inefficient,and does not permit transparent communication with the Sanitation District employees
regarding exposures to hazardous chemicals.The current SharePoint site for ergonomics does not
permit tracking of corrective actions or facilitate identifying and mitigating risks.The existing interface
for Cority requires staff to input information from the office while the end user predominately
completes these actions and submissions while in the field.
PROPOSED SOLUTION
To provide a greater level of safety and health to the Sanitation District employees,the Risk
Management Division and Information Technology Division request to purchase the Industrial
Hygiene module and Ergonomics module,as well as upgrade to myCority.These modules will
enable the Risk Management Division to better asses the hazards and risks associated with the
Sanitation District staff as it relates to industrial hygiene and ergonomics.Risk Management will be
able to provide better guidance regarding engineering controls,administrative controls,and personal
protective equipment.
TIMING CONCERNS
Safety and health records of the workforce generated by the Risk Management Division continue to
augment as days/months go by,thus increasing the difficulty of maintaining quality data.Risk
Management will continue to be overwhelmed with maintaining manual records which could
potentially result in errors and non-compliance of regulatory requirements.
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RAMIFICATIONS OF NOT TAKING ACTION
A decision not to purchase the Cority solution would result in continued inefficiencies,limitations in
responding to employee requests, evaluating hazards, and determining appropriate safety controls.
PRIOR COMMITTEE/BOARD ACTIONS
May 2016 -Authorized purchases of information technology hardware,software,services,and
licensing &maintenance agreements using the U.S.General Services Agreement (GSA)IT Schedule
70.
ADDITIONAL INFORMATION
·Cority Occupational Health System was implemented in April 2017 and is being used by the
Sanitation District’s Risk Management Division. The cost of implementation was $32,000.
·Cority Safety Management System was implemented in April 2019 and is being used by the
Sanitation District’s Risk Management Division. The cost of implementation was $38,000.
·Current annual maintenance cost for Cority Occupational Health and Safety Management
modules $55,861.
·Cority annual maintenance cost will be increased by $40,112 after this purchase,and the new
total annual maintenance cost would be $95,972.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing Ordinance.This
item has been budgeted.(FY2020-21 &2021-22 Budget,Section 8,Page 49,Information
Technology Capital Program (M-MC-IT)).
ATTACHMENT
The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda
package:
N/A
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Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2020-1309 Agenda Date:11/10/2020 Agenda Item No:6.
FROM:James D. Herberg, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
PFAS INVESTIGATIVE ORDER
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Professional Services Agreement to CDM Smith, Inc. (CDM Smith) to provide PFAS
Sampling and Analysis Services, Specification No. CS-2020-1178BD, for a total amount not to
exceed $369,006; and
B. Approve a contingency in the amount of $55,351 (15%).
BACKGROUND
The Orange County Sanitation District (Sanitation District)received a Per-and Poly-fluoroalkyl
Substances (PFAS)Phase III Investigative Order WQ-2020-0015-DWQ (Order)from the State Water
Resources Control Board (SWRCB)on July 13,2020.The SWRCB is authorized by Water Code
Sections 13267 and 13383 to require suspected dischargers of PFAS into the environment to furnish
technical or monitoring reports of the release or the disposal of waste containing PFAS.The Order
requires the Sanitation District to sample and analyze wastewater influent,effluent,and biosolids at
both Reclamation Plant No. 1 and Treatment Plant No. 2 quarterly for a period of one year.
RELEVANT STANDARDS
·Ensure the public’s money is wisely spent
·Maintain a culture of improving efficiency to reduce the cost to provide the current service level
or standard
·Protect Orange County Sanitation District assets
·Commitment to safety & reducing risk in all operations
PROBLEM
PFAS are ubiquitous and can be found in many consumer products used daily,including cosmetics,
personal care products,clothing,equipment,and materials.Therefore,there are significant
challenges associated with sampling and analyzing for PFAS due to high potential for cross-
contamination.In addition,these chemicals are very complex in nature and the Sanitation District
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has limited experience in sampling and analyzing these chemicals.Therefore,the Sanitation District
requires external expert support with the sampling and analysis to ensure the collection,analysis,
and reporting are conducted in accordance with the Order.An experienced service provider is also
needed to assist the Sanitation District with building internal capacity for PFAS sampling and
analysis.
PROPOSED SOLUTION
The Sanitation District proposes hiring the above-listed qualified consulting firm (Consultant)to assist
the Sanitation District with meeting the requirements of the Order,which will require the development
of work plans,final reports,and presentations associated with the PFAS sampling and analysis for
sites located at Reclamation Plant No.1 and Treatment Plant No.2.The Sanitation District will also
require PFAS sampling and analysis at twelve (12)additional locations to determine PFAS loading to
the Sanitation District’s facilities.Lastly,the Consultant will provide written documentation to and
training for Sanitation District staff on PFAS sampling at select locations within the Sanitation
District’s facilities and service area.
TIMING CONCERNS
As written,the Order requires the first quarterly sampling event to take place during the second
quarter of the Sanitation District’s Fiscal Year 2020-2021 (October to December 2020).
However,the SWRCB postponed the project kickoff to the third quarter of Fiscal Year 2020-2021
(January to March 2021),but is requiring the Sanitation District to conduct two sets of sampling
events within this timeframe to retain the original project end date.
Board approval of this Professional Service Agreement will enable Sanitation District staff and
Consultant to meet the Order’s key deadlines.
RAMIFICATIONS OF NOT TAKING ACTION
If a consultant is not hired to conduct the PFAS sampling and analysis,the lack of internal expertise
of Sanitation District staff may result in non-compliance with the Order and/or unreliable data.
ADDITIONAL INFORMATION
On July 9,2020,the Sanitation District issued a Request for Proposals (RFP)to hire a Consultant to
provide PFAS Sampling and Analysis Services.The following evaluation criterion were described in
the RFP and used to determine the most qualified firm.
CRITERION WEIGHT
1. Qualifications of the Firm 30%
2. Staffing and Project Organization 20%
3. Work Plan 20%
4. Oral Interviews 10%
5. Cost 20%
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The RFP closed on September 1,2020.The Sanitation District received responses from eight (8)
companies.The RFP evaluation team consisted of three (3)Sanitation District staff and included a
Resource Protection Division Engineering Supervisor,Laboratory Principal Environmental Specialist,
and Environmental Compliance Senior Regulatory Specialist.This RFP used the individual scoring
method.The evaluation team first reviewed and scored the proposals based upon the first three
criteria listed above.
Rank Proposer Criterion 1
(Max 30%)
Criterion 2
(Max 20%)
Criterion 3
(Max 20%)
Subtotal Score
(Max 70%)
1 CDM Smith 24 15 17 56
2 AECOM 20 14 14 48
3 TRC Companies, Inc.19 13 12 44
4 Parsons 18 10 9 37
5 Geosyntec 17 9 10 36
6 GHD 18 9 9 36
7 Wood Environment 16 11 9 36
8 Trihydro Corp.15 10 9 34
The three highest ranking firms,CDM Smith,AECOM,and TRC Companies,Inc.(TRC)were
selected for interviews.The interviews were conducted from October 7 to October 8,2020.
Following the interviews,the evaluation team ranked the firms based on both the proposals and
interviews using the evaluation criteria and weighting listed above.
Rank Proposer Subtotal Score
(Max 70%)
Interview
(Max 10%)
Total Weighted
Score (Max 80%)
1 CDM Smith 56 7 63
2 AECOM 48 7 55
3 TRC Companies, Inc.44 6 50
All proposals were accompanied by a sealed cost proposal.Only the cost proposals for the two
highest ranked firms were opened and negotiated.
Rank Proposer Subtotal Score
(Max 80%)
Cost (Max
20%)
Total Weighted
Score (Max 100%)
1 CDM Smith 63 13 76
2 AECOM 55 20 75
Based on these results,staff recommends awarding the Agreement to CDM Smith.The term of this
Agreement will begin upon the effective date of the Notice to Proceed.
CEQA
N/A
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FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District’s Purchasing Ordinance.This
item has been budgeted. (FY2020-21 & 2021-22 Budget, Environmental Services Division Program).
ATTACHMENT
The following attachment(s)may be viewed on-line at the Sanitation District’s website (www.ocsd.com)with the complete
agenda package:
·Draft Professional Services Agreement
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PROFESSIONAL SERVICES AGREEMENT PFAS Sampling and Analysis Plan Specification No. CS-2020-1178BD
THIS AGREEMENT 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 [______________________] with a principal place of business at [___________________________] (hereinafter referred to
as "Consultant") collectively referred to as the “Parties”.
W I T N E S S E T H
WHEREAS, based on Consultant’s expertise and experience, OCSD desires to temporarily engage Consultant to provide assistance in meeting the anticipated requirements of the State
Water Resources Control Board’s (SWRCB’s) Per- and Poly-fluoroalkyl Substances (PFAS) Phase III Investigative Order (Order) "Services” as described in Exhibit “A”; and
WHEREAS, Consultant submitted its Proposal, dated [_______]; and
WHEREAS, on [____________________], the Board of Directors of OCSD, by minute order, authorized execution of this Agreement between OCSD and Consultant; and
WHEREAS, OCSD has chosen Consultant to conduct Services in accordance with Ordinance No. OCSD-52; and
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 Agreement and all exhibits hereto (called the "Agreement") is made by OCSD and the Consultant. The terms and conditions herein exclusively govern the purchase of Services
as described in Exhibit “A”. 1.2 Exhibits to this Agreement are incorporated by reference and made a part of this Agreement as though fully set forth at length herein.
Exhibit “A” Scope of Work
Exhibit “B” Proposal
Exhibit “C” Acknowledgement of Insurance Requirements
Exhibit “D” OCSD Safety Standards and Safety SOP-102 Personal Protective Equipment (PPE) Exhibit “E” Human Resources Policies 1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the exhibits hereto, the provisions of this Agreement shall in all respects govern and control. 1.4 This Agreement may not be modified, changed, or supplemented, nor may any obligations
hereunder be waived or extensions of time for performance granted, except by written instrument signed by both Parties.
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1.5 The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any section or provision hereof.
1.6 The term “days”, when used in the Agreement, shall mean calendar days, unless otherwise noted as workdays. 1.7 The term “workday”. Workdays are defined as all days that are not Saturday, Sunday, or OCSD observed holidays. OCSD review periods shall not include OCSD observed holidays. 1.8 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. 1.9 Work Hours: All work with OCSD staff shall be scheduled Monday through Thursday, between the hours of 7:30 a.m. and 4:30 p.m. OCSD will not pay for travel time.
1.10 Consultant shall provide OCSD with all required premiums and/or overtime work at no charge beyond the total amount of the Agreement.
1.11 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Consultant as a result of work performed in anticipation of purchases of said Services by OCSD.
2. Scope of Work 2.1 Consultant agrees to furnish necessary professional Services to accomplish those project elements outlined in the Scope of Work attached hereto as "Exhibit A", and by this reference made a part of this Agreement. 2.2 The Consultant shall be responsible for the professional quality, technical accuracy, and completeness and coordination of the work and Services furnished by the Consultant under this Agreement, including the work performed by its subconsultants and subcontractors. Where approval by OCSD is indicated, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all applicable laws, regulations, 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 or subcontractors.
2.3 Consultant is responsible for the quality of work prepared under this Agreement and shall ensure that all work is performed to the highest industry standards for clarity, uniformity, and
completeness. Consultant shall timely respond to all comments, suggestions, and recommendations from OCSD. All comments from OCSD, or its agent, shall be incorporated into the work prior to the next review deadline or addressed, in writing, as to
why the comment(s) has/have not been incorporated. Consultant shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization, spelling, punctuation, etc.). 2.4 In the event that Consultant's services and/or work product(s) is not to the satisfaction of the OCSD and/or does not conform to the requirements of this Agreement or the applicable
industry standards, the Consultant shall, without additional compensation, promptly correct or revise any errors or deficiencies in its work product(s) within the timeframe specified by the Project Manager. OCSD may charge to Consultant all costs, expenses and damages associated with any such corrections or revisions.
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2.5 All Services performed by the Consultant, including, but not limited to, all drafts, data, correspondence, proposals, and reports compiled or composed by the Consultant, pursuant
to this Agreement, are for the sole use of OCSD, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of OCSD. 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 OCSD, or (b) subsequently becomes publicly known to the Consultant other than through disclosure by OCSD. 2.6 Consultant warrants that all of its Services shall be performed in a competent, professional, and satisfactory manner.
3. 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. A review of the time required for the modification will be made by OCSD and Consultant and the Agreement period adjusted accordingly.
4. Compensation Compensation to be paid by OCSD to Consultant for the Services provided under this Agreement shall be a total amount not to exceed [________________] Dollars
($[________].00).
5. California Department of Industrial Relations (DIR)Registration and Record of Wages
5.1 To the extent Consultant’s employees and/or subconsultants who will perform work 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. 5.2 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 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. 5.3 Pursuant to Labor Code Section 1776, the Consultant and subconsultants 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.
5.4 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. Payment and Invoicing 6.1 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”, not to exceed the prices agreed to in Exhibit “B”. OCSD, at its
sole discretion, shall be the determining party as to whether the Milestones have been satisfactorily completed.
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6.2 Invoices shall be emailed by Consultant to OCSD Accounts Payable at APStaff@OCSD.com and “INVOICE” with the Purchase Order Number and CS-2020-
1178BD shall be referenced in the subject line.
7. Audit Rights Consultant agrees that, during the term of this Agreement 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 Consultant relating to the invoices submitted by Consultant pursuant to this Agreement.
8. Commencement and Term The Services provided under this Agreement shall be for the period of one (1) year commencing on the date of the Notice to Proceed.
9. Renewals 9.1 OCSD may exercise the option to renew this Agreement for up to four (4) one-year periods, under the terms and conditions contained herein. OCSD shall make no obligation to renew nor give reason if it elects not to renew.
9.2 This Agreement may be renewed by OCSD Purchase Order.
10. Extensions The term of this Agreement 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 Agreement for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD. Upon receipt of a termination notice, Consultant shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Consultant for work performed (cost and fee) to the date of termination. Consultant expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Agreement. Such notice of termination shall terminate this Agreement and release OCSD from any further fee, cost or claim hereunder by Consultant other than for work performed to the date of termination. 12.2 OCSD reserves the right to terminate this Agreement immediately upon OCSD’s
determination that Consultant is not complying with the Scope of Work requirements, if the level of service is inadequate, or any other default of this Agreement.
12.3 OCSD may also immediately terminate for default of this Agreement in whole or in part by written notice to Consultant:
if Consultant becomes insolvent or files a petition under the Bankruptcy Act; or
if Consultant sells its business; or
if Consultant breaches any of the terms of this Agreement; or
if total amount of compensation exceeds the amount authorized under this Agreement. 12.4 All OCSD property in the possession or control of Consultant shall be returned by Consultant to OCSD on demand, or at the termination of this Agreement, whichever occurs first.
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13. Indemnification and Hold Harmless Provision Consultant 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 Consultant's services under this Agreement, or by its subconsultant(s) or by anyone directly or indirectly employed by Consultant, and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the sole active negligence of or willful misconduct of OCSD, Consultant 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 Consultant's performance under the Agreement, 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 Agreement, and/or (c) on account of any goods and services provided under this Agreement. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Consultant
or anyone employed by or working under Consultant. To the maximum extent permitted by law, Consultant'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. Consultant agrees to provide this defense immediately upon
written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. This section shall survive the expiration or early termination of the Agreement.
14. Insurance Consultant and all subconsultants shall purchase and maintain, throughout the life of this Agreement and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements,
Exhibit “C“. Consultant shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OCSD, nor shall Consultant allow any subconsultant to commence service pursuant to a subcontract until all insurance required of the subconsultant has been obtained. Failure to maintain required insurance coverage shall result in termination of this Agreement.
15. Key Personnel Personnel, as provided in Exhibit “B”, are considered “key” to the work
under this Agreement and will be available for the term of the Agreement. No person designated as key under this Agreement shall be removed or replaced without prior written consent of OCSD. If OCSD asks Consultant to remove a person designated as key under
this Agreement, Consultant agrees to do so immediately regardless of the reason, or the lack of reason, for OCSD's request. Consultant shall assign only competent personnel to perform services pursuant to this Agreement.
16. Confidentiality and Non-Disclosure 16.1 Consultant acknowledges that in performing the Services hereunder, OCSD may have to disclose to Consultant orally and in writing certain confidential information that OCSD considers proprietary and has developed at great expense and effort.
16.2 Consultant agrees to maintain in confidence and not disclose to any person, firm, or corporation, without OCSD's prior written consent, any trade secret or confidential information, knowledge or data relating to the products, process, or operation of OCSD.
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16.3 Consultant further agrees to maintain in confidence and not to disclose to any person, firm, or corporation any data, information, technology, or material developed or obtained by
Consultant during the term of this Agreement. 16.4 Consultant agrees as follows:
To use the confidential information only for the purposes described herein; to not reproduce
the confidential information; to hold in confidence and protect the confidential information from dissemination to and use by anyone not a party to this Agreement; and to not use the confidential information to benefit itself or others.
To restrict access to the confidential information to its Consultant or personnel of Consultant who (1) have a need to have such access and (2) have been advised of and have agreed in writing to treat such information in accordance with the terms of this Agreement.
To return all confidential information in Consultant's possession upon termination of this
Agreement or upon OCSD's request, whichever occurs first.
To hold in confidence information and materials, if any, developed pursuant to the Services
hereunder. 16.5 The provisions of this section shall survive termination or expiration of this Agreement and
shall continue for so long as the material remains confidential.
17. Ownership of Documents All drawings, specifications, reports, records, documents,
memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, and agents in the performance of this Agreement shall be the property of OCSD and shall be promptly delivered to OCSD upon request of OCSD’s Project Manager or designee, or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by OCSD of its full rights of ownership of the documents and materials hereunder. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Consultant will be at OCSD's sole risk and without liability to Consultant. Consultant shall ensure that all its subconsultants shall provide for assignment to OCSD of any documents or materials prepared by them.
18. Ownership of Intellectual Property 18.1 Consultant agrees that all designs, plans, reports, specifications, drawings, schematics, prototypes, models, inventions, and all other information and items made during the course of this Agreement and arising from the Services (hereinafter referred to as "New Developments") shall be and are assigned to OCSD as its sole and exclusive property. 18.2 Consultant agrees to promptly disclose to OCSD all such New Developments. Upon OCSD's request, Consultant agrees to assist OCSD, at OCSD's expense, to obtain patents or copyrights for such New Developments, including the disclosure of all pertinent information and data with respect thereto, the execution of all applications, specifications, assignments, and all other instruments and papers which OCSD shall deem necessary to apply for and to assign or convey to OCSD, its successors and assigns, the sole and exclusive right, title and interest in such New Developments. Consultant agrees to obtain or has obtained written assurances from its employees and contract personnel of their
agreement to the terms hereof with regard to New Developments and confidential information.
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18.3 Consultant warrants that Consultant has good title to any New Developments, and the right to assign New Developments to OCSD free of any proprietary rights of any other party or
any other encumbrance whatever. 18.4 The originals of all computations, drawings, designs, graphics, studies, reports, manuals, photographs, videotapes, data, computer files, and other documents prepared or caused to be prepared by Consultant or its subconsultants in connection with these Services shall be delivered to and shall become the exclusive property of OCSD. OCSD may utilize these documents for OCSD applications on other projects or extensions of this project, at its own risk.
19. No Solicitation of Employees 19.1 Consultant agrees that it shall not, during the term of this Agreement and for a period of one (1) year immediately following termination of this Agreement, or any extension hereof, call on, solicit, or take away any of the employees whom Consultant became aware of as a result of Consultant's Services to OCSD.
19.2 Consultant acknowledges that OCSD’s employees are critical to its business and OCSD expends significant resources to hire, employ, and train employees. Should Consultant
employ or otherwise engage OCSD’s employees during the term of this Agreement and for a period of one (1) year following termination of this Agreement, Consultant will pay OCSD
fifty percent (50%) of the former employee’s most recent annual salary earned at OCSD to
accurately reflect the reasonable value of OCSD’s time and costs. This payment is in addition to any other rights and remedies OCSD may have at law.
20. Independent Contractor Capacity 20.1 The relationship of Consultant to OCSD is that of an independent contractor and nothing herein shall be construed as creating an employment or agency relationship. 20.2 Consultant shall act independently and not as an officer or employee of OCSD. OCSD assumes no liability for Consultant’s action and performance, nor assumes responsibility for taxes, funds, payments or other commitments, implied or expressed, by or for Consultant. 20.3 Consultant shall not be considered an agent of OCSD for any purpose whatsoever, nor shall Consultant have the right to, and shall not, commit OCSD to any agreement, contract or undertaking. Consultant shall not use OCSD’s name in its promotional material or for any
advertising or publicity purposes without expressed written consent. 20.4 Consultant shall not be entitled to any benefits accorded to those individuals listed on
OCSD’s payroll as regular employees including, without limitation, worker's compensation, disability insurance, vacation, holiday or sick pay. Consultant shall be responsible for providing, at Consultant’s expense, disability, worker's compensation or other insurance as
well as licenses and permits usual or necessary for conducting the Services hereunder. 20.5 Consultant shall be obligated to pay any and all applicable Federal, State and local payroll and other taxes incurred as a result of fees hereunder. Consultant hereby indemnifies OCSD for any claims, losses, costs, fees, liabilities, damages or penalties suffered by OCSD arising out of Consultant's breach of this provision.
20.6 Consultant shall not be eligible to join or participate in any benefit plans offered to those individuals listed on OCSD's payroll as regular employees. Consultant shall remain ineligible for such benefits or participation in such benefit plans even if a court later decides that OCSD misclassified Consultant for tax purposes.
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21. Licenses, Permits Consultant represents and warrants to OCSD that it has obtained all
licenses, permits, qualification 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 work performed under the terms of this Agreement will be paid by Consultant.
22. Consultant's Representations In the performance of duties under this Agreement, Consultant shall adhere to the highest fiduciary standards, ethical practices and standards of care and competence for their trade/profession. Consultant agrees to comply with all applicable Federal, State and local laws and regulations.
23. Familiarity with Work By executing this Agreement, Consultant 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 Agreement. Should Consultant 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 Consultant’s risk, until written instructions are received from OCSD.
24. Right to Review Services, Facilities, and Records 24.1 OCSD reserves the right to review any portion of the Services performed by Consultant
under this Agreement, and Consultant agrees to cooperate to the fullest extent possible. 24.2 Consultant shall furnish to OCSD such reports, statistical data, and other information pertaining to Consultant's Services as shall be reasonably required by OCSD to carry out its rights and responsibilities under its agreements with its bondholders or noteholders and any other agreement relating to the development of the project(s) and in connection with the issuance of its official statements and other prospectuses with respect to the offering, sale, and issuance of its bonds and other obligations. 24.3 The right of OCSD to review or approve drawings, specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Consultant shall not relieve Consultant of any obligation set forth herein.
25. Force Majeure 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 Agreement.
26. Severability If any section, subsection, or provision of this Agreement, or any agreement
or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Agreement 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.
27. Waiver The waiver of either party of any breach or violation of, or default under, any provision of this Agreement, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Any breach by Consultant 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.
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28. Remedies In addition to other remedies available in law or equity, if the Consultant fails to
make delivery of the goods or Services or repudiates its obligations under this Agreement, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) terminate the Agreement; (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 Consultant. In the event OCSD elects to “cover” as described in (3), OCSD shall be entitled to recover from Consultant as damages the difference between the cost of the substitute goods or Services and the Agreement price, together with any incidental or consequential damages.
29. Governing Law This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Agreement or the performance thereof.
30. Environmental Compliance Consultant shall, at its own cost and expense, comply with all
Federal, State, and local environmental laws, regulations, and policies which apply to the Consultant, its sub-consultants, and the Services, including, but not limited to, all applicable Federal, State, and local air pollution control laws and regulations.
31. 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
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.
32. Dispute Resolution 32.1 In the event of a dispute as to the construction or interpretation of this Agreement, 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. 32.2 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.
33. Damage to OCSD's Property Any OCSD property damaged by Consultant will be subject to repair or replacement by Consultant at no cost to OCSD.
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34. OCSD Safety Standards OCSD requires Consultant and its subconsultants 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 Agreement it is discovered that OCSD Safety Standards do not comply with Federal, State or local regulations, then the Consultant is required to follow the most stringent regulatory requirement at no additional cost to OCSD. Consultant and all of its employees and subconsultants, shall adhere to all applicable OCSD Safety Standards attached hereto in
Exhibit “D” including Safety SOP-102 Personal Protective Equipment (PPE) and the Human
Resources Policies in Exhibit “E”.
35. Freight (F.O.B. Destination) Consultant assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Agreement.
36. Assignments Consultant shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OCSD. Any such attempted delegation or
assignment shall be void.
37. Conflict of Interest and Reporting
37.1 Consultant shall at all times avoid conflicts of interest or appearance of conflicts of interest in performance of this Agreement.
37.2 Consultant affirms that to the best of its knowledge there exists no actual or potential conflict between Consultant’s families, business or financial interest or its Services under this Agreement, and in the event of change in either its private interests or Services under this Agreement, it will raise with OCSD any question regarding possible conflict of interest which may arise as a result of such change.
38. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OCSD and Consultant.
39. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to Consultant, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.
40. Authority to Execute The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the Parties are formally bound.
41. Read and Understood By signing this Agreement, Consultant represents that it has read and understood the terms and conditions of the Agreement.
42. Entire Agreement This Agreement 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.
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43. Notices All notices under this Agreement 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. Any facsimile notice must be followed within three (3) days by written notice. Rejection or other refusal to accept 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 92708-7018 Consultant: [Contact Name]
[Contact Title] [Company Name] [Street Address]
[City, State, Zip Code] Each party shall provide the other party written notice of any change in address as soon as
practicable.
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IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Agreement 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 & Contracts Manager [COMPANY] Dated: _________________ By: ___________________________________ ______________________________________ Print Name and Title of Officer
______________________________________
IRS Employer’s I.D. Number
Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2020-1307 Agenda Date:11/10/2020 Agenda Item No:7.
FROM:James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT
(CAFR) FOR THE YEAR END JUNE 30, 2020
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District’s Comprehensive Annual Financial Report for
the year ended June 30, 2020, prepared by staff and audited by Macias Gini & O’Connell LLP
(MGO), Certified Public Accountants, along with the following reports prepared by MGO:
1. Report to the Board of Directors; and
2. Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit
Worksheets.
BACKGROUND
The CAFR for the year ended June 30,2020 is enclosed for the Committee’s consideration.Included
within the report are the Orange County Sanitation District’s financial statements for the year ended
June 30, 2020, along with the Independent Auditor’s Report that includes the unmodified opinion.
RELEVANT STANDARDS
·Produce appropriate financial reporting - annual financial report & audit letter
ATTACHMENT
The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.com)with the complete agenda
package:
·Report to the Board of Directors
·Independent Accountant's Report on Applying Agreed-Upon Procedures Related to
Appropriations Limit Calculation
·Comprehensive Annual Financial Report for the Year Ended June 30, 2020
·OCSD Staff Presentation
·Auditor’s Presentation
Orange County Sanitation District Printed on 11/3/2020Page 1 of 1
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www.mgocpa.com
Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660
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October 28, 2020
To the Board of Directors
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California
We have audited the financial statements of the Orange County Sanitation District (OCSD) as of and
for the year ended June 30, 2020, and have issued our report thereon dated October 28, 2020.
Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our auditor and management responsibility letter dated September 16, 2020, our
responsibility, as described by professional standards, is to form and express an opinion about whether
the financial statements that have been prepared by management with your oversight are presented
fairly, in all material respects, in accordance with accounting principles generally accepted in the
United States of America. Our audit of the financial statements does not relieve you or management of
your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial
reporting. Accordingly, as part of our audit, we considered the internal control of OCSD solely for the
purpose of determining our audit procedures and not to provide any assurance concerning such internal
control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to
you in our auditor and management responsibility letter dated September 16, 2020 and our planning
communication letter also dated September 16, 2020.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm, have complied with all relevant
ethical requirements regarding independence.
2
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of
significant accounting policies adopted by OCSD is included in Note 1 to the financial statements. OCSD
implemented Govermental Accounting Standard Board (GASB) Statement No. 84, Fiduciary Activities,
No. 90, Majority Equity Insterests – an amendment of GASB Statement No. 14 and No. 61, and No. 95,
Postponement of the Effective Dates of Certain Authoritative Guidance for the year ended June 30, 2020,
as described in Note 1. There is no significant impact to OCSD’s financial statements due to the
implementation of those new pronouncements. No matters have come to our attention that would require
us, under professional standards, to inform you about (1) the methods used to account for significant
unusual transactions and (2) the effect of significant accounting policies in controversial or emerging
areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s current judgments. Those judgments are normally based on knowledge and
experience about past and current events and assumptions about future events. Certain accounting
estimates are particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ markedly from management’s current
judgments.
The most sensitive accounting estimates affecting the financial statements are –
Valuations of actuarially determined contributions, deferred outflows of resources, deferred
inflows of resources, and net pension liability/asset for OCSD’s employee pension plan and
additional retiree benefit account plan are based on actuarial calculations, which incorporate
actuarial methods and assumptions adopted by the Board of Directors.
Valuations of actuarially determined contributions, deferred outflows of resources, deferred
inflows of resources, and net OPEB liability for OCSD’s employee OPEB plan are based on
actuarial calculations, which incorporate actuarial methods and assumptions adopted by the Board
of Directors.
Management’s estimates of workers’ compensation and general liability are based on reports
prepared by third party actuarial valuations. We evaluated the key factors and assumptions used
to develop the estimate liability in determining that they are reasonable in relation to the financial
statements taken as a whole.
Management’s estimate of the allowance for uncollectible accounts is based on evaluating
individual customer accounts receivable at least one year past due and considering the customer’s
financial condition, credit history and current economic conditions. We evaluated the key factors
and assumptions used to assess the collectability of the receivables in determining that they are
reasonable in relation to the financial statements taken as a whole.
Management’s estimate of depreciation is based on the useful-lives of the related capital assets.
We evaluated the key factors and assumptions used to develop the useful-lives of the related
capital assets in determining that they are reasonable in relation to the financial statements taken
as a whole.
3
Fair values of investments are based on quoted market prices or significant other observable
inputs from independent published sources. We evaluated the key factors and assumptions used to
develop the fair value of investments in determining that it is reasonable in relation to the
financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because
of their significance to financial statement users. The most sensitive disclosures affecting OCSD’s
financial statements relate to:
The disclosure of net pension liability and OPEB benefits in Notes 5 and 6 to the financial
statements, respectively, are based on actuarial valuations.
Transactions with Irvine Ranch Water District – Revenue Area No. 14 as disclosed in Note 7 to
the basic financial statements.
Commitments and contingencies that will impact future resources of OCSD as disclosed in Note
8 to the basic financial statements.
Impact of COVID-19 pandemic to OCSD as disclosed in Note 9 to the basic financial statements.
Difficulties Encountered during the Audit
We encountered no difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely
misstatements identified during the audit, other than those that we believe are trivial, and communicate
them to the appropriate level of management. Further, professional standards require us to also
communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of
transactions, account balances or disclosures, and the financial statements as a whole. There were no
misstatements detected as a result of audit procedures and corrected by management which were material,
either individually or in the aggregate, to the financial statements taken as a whole. In addition, there were
no uncorrected misstatements noted as a result of the audit procedures.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing
matter, which could be significant to OCSD’s financial statements or the auditor’s report. No such
disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the attached
letter dated October 28, 2020 (Attachment A).
4
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management informed us that, and to our knowledge, there were no consultations with other
accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with OCSD, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, operating and
regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of
material misstatement. None of the matters discussed resulted in a condition to our retention as OCSD’s
auditors.
This report is intended solely for the information and use of the Board of Directors and management of
OCSD and is not intended to be, and should not be, used by anyone other than these specified parties.
Newport Beach, California
ORANGE COUNTY SANITATION DISTRICT
Independent Accountant’s Report on Applying
Agreed-Upon Procedures Related to
Appropriations Limit Calculation
Year Ended June 30, 2020
www.mgocpa.com
Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660
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Independent Accountant’s Report on
Applying Agreed-Upon Procedures
To the Board of Directors
Orange County Sanitation District
We have performed the procedures enumerated below to the accompanying Appropriations Limit
Worksheet of the Orange County Sanitation District (OCSD) for the year ended June 30, 2020. These
procedures, which were agreed to by OCSD and the League of California Cities as presented in the
publication titled Agreed-Upon Procedures Applied to the Appropriations Limitation Prescribed by Article
XIII-B of the California Constitution, were performed solely to assist OCSD in meeting the requirements
of Section 1.5 of Article XIII-B of the California Constitution. OCSD’s management is responsible for the
Appropriations Limit Worksheet. The sufficiency of these procedures is solely the responsibility of the
parties specified in this report. Consequently, we make no representation regarding the sufficiency of the
procedures enumerated below either for the purpose for which this report has been requested or for any
other purpose.
The procedures performed and our findings are as follows:
1.We obtained the completed worksheets setting forth the calculations necessary to establish OCSD’s
appropriations limit and compared the limit and annual adjustment factors included in those
worksheets to the limit and annual adjustment factors that were adopted by resolution of OCSD’s
Board of Directors. We also compared the population and inflation options included in the
aforementioned worksheets to those that were selected by a recorded vote of OCSD’s Board of
Directors.
Finding: No exceptions were noted as a result of our procedures.
2.For the accompanying Appropriations Limit Calculation, we added Line A, last year’s limit, to
Line E, total adjustments, and compared the resulting amount to Line F, current year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3.We compared the current year information presented in the accompanying Appropriations Limit
Calculation to the appropriate supporting calculations described in item 1 above.
Finding: No exceptions were noted as a result of our procedures.
4.We compared the prior year Appropriations Limit presented in the accompanying Appropriations
Limit Calculation to the prior year Appropriations Limit adopted by the Board of Directors for the
prior year.
Finding: No exceptions were noted as a result of our procedures.
2
This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. We were not engaged to and did not
conduct an examination or review, the objective of which would be the expression of an opinion or
conclusion, respectively, on the accompanying Appropriations Limit Calculation of OCSD. Accordingly,
we do not express such an opinion or conclusion. Had we performed additional procedures, other matters
might have come to our attention that would have been reported to you. No procedures have been performed
with respect to the determination of the appropriations limit for the base year, as defined by Article XIII-B
of the California Constitution.
This report is intended solely for the information and use of the Board of Directors and management of
OCSD, and is not intended to be, and should not be, used by anyone other than these specified parties.
Newport Beach, California
October 28, 2020
ORANGE COUNTY SANITATION DISTRICT
Appropriations Limit Calculation
Year Ended June 30, 2020
3
Amount Source
A. Last year’s limit 110,229,598 $
B. Adjustment factors:
1. Population change 0.99960000 State Finance
2. Per capita change 1.03850000 State Finance
Total adjustments [(B.1 x B.2)-1.0]0.03808460
C. Annual adjustment 4,198,050 (BxA)
D. Other adjustments:
1. Lost responsibility (-)-
2. Transfer to private (-)-
3. Transfer to fees (-)-
4. Assumed responsibility (+)-
Subtotal -
E. Total adjustments 4,198,050 (C+D)
F. This year’s limit 114,427,648 $ (A+E)
Orange County, California
ORANGE COUNTY SANITATION DISTRICT
ORANGE COUNTY, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2020
Prepared By:
Administrative Services Department
Financial Management Division
Wally Ritchie
Controller
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ORANGE COUNTY SANITATION DISTRICT
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30, 2020
Page
INTRODUCTORY SECTION (Unaudited):
Letter of Transmittal ..................................................................................................................... i-vii
GFOA Certificate of Achievement ............................................................................................... viii
Board of Directors ........................................................................................................................ ix
Organization Chart....................................................................................................................... x
Map of Service Area .................................................................................................................... xi
FINANCIAL SECTION:
Independent Auditor’s Report ...................................................................................................... 1-2
Management Discussion and Analysis – Required Supplementary Information (Unaudited) .... 3-9
Basic Financial Statements:
Statement of Net Position ................................................................................................... 12
Statement of Revenues, Expenses, and Change in Net Position ...................................... 13
Statement of Cash Flows .................................................................................................... 14
Notes to Basic Financial Statements .................................................................................. 15-48
Required Supplementary Information (Unaudited):
Proportionate Share of the Net Pension Liability (Asset) – OCERS Pension Plan ............ 50
Schedule of District Contributions – OCERS Pension Plan ............................................... 51
Total Pension Liability – Additional Retiree Benefit Account .............................................. 52
Changes in Total Pension Liability – Additional Retiree Benefit Account ........................... 53
Total OPEB Liability –Post-Employment Medical Benefits Plan ......................................... 54
Changes in Total OPEB Liability –Post-Employment Medical Benefits Plan ..................... 55
Supplementary Information:
Combining Area Schedule of Net Position .......................................................................... 58
Combining Area Schedule of Revenues, Expenses, and Change in Net Position ............ 59
Combining Area Schedule of Cash Flows .......................................................................... 60 STATISTICAL SECTION (Unaudited):
Net Position by Component – Last Ten Fiscal Years .................................................................. 62
Revenues and Gross Capital Contributions by Source – Last Ten Fiscal Years ........................ 63
Expenses by Type – Last Ten Fiscal Years ................................................................................ 64
Change in Net Position – Last Ten Fiscal Years ......................................................................... 65
Cash and Investment Reserve Balances – Last Ten Fiscal Years ............................................. 66
Sewer Service Fees – Last Nine Fiscal Years and Next Fiscal Year .......................................... 67
Number of Accounts and Revenues by Customer Class – Last Ten Fiscal Years ..................... 68
Principal Sewer Service Customers – Current Fiscal Year and Nine Years Ago ....................... 69
Ratio of Annual Debt Service to Total Expenses – Last Ten Fiscal Years ................................. 70
Debt Coverage Ratios – Last Ten Fiscal Years .......................................................................... 71
Ratios of Outstanding Debt – Last Ten Fiscal Years .................................................................. 72
Comparison of the Volume of Wastewater Treated – Last Ten Fiscal Years ............................. 73
Authorized Full-time Equivalents by Function – Last Ten Fiscal Years ...................................... 74
Biosolids Produced – Last Ten Fiscal Years ............................................................................... 75
Capital Asset Statistics – Last Ten Fiscal Years ......................................................................... 76
Demographic Statistics – Last Ten Fiscal Years ......................................................................... 77
Estimated Population Served by Orange County Sanitation District .......................................... 78
Principal Orange County Employers – Current Fiscal Year and Nine Years Ago ....................... 79
Operating Indicators .................................................................................................................... 80 OTHER DATA & TRENDS (Unaudited):
Cash and Investment Portfolio ................................................................................................... 82
Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years ............... 83
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ................ 84
Property Tax and User Fee Levies and Collections – Last Ten Fiscal Years ............................. 85
Property Value and Construction – Last Ten Fiscal Years ......................................................... 86
Insurance in Force ....................................................................................................................... 87
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i
October 28, 2020
The Board of Directors of the
Orange County Sanitation District,
Orange County, California
Submitted herewith is the Comprehensive Annual Financial Report of the Orange County Sanitation
District (OCSD), Orange County, California for the fiscal year ended June 30, 2020. This report includes
the financial position and activity of individual revenue areas, as described within the Governmental
Structure below, as of June 30, 2020 and was prepared by the Financial Management Division of
OCSD’s Administrative Services Department.
Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation,
including all disclosures, rests with OCSD. To the best of our knowledge and belief, the enclosed data
is accurate in all material respects and is reported in a manner designed to present fairly the financial
position and changes in the financial position of OCSD. All disclosures necessary to enable the reader
to gain an understanding of the agency’s financial activities have been included.
Included within the accompanying financial statements are all of the organizations, activities, and
functions controlled by OCSD’s Board of Directors in accordance with the Governmental Accounting
Standards Board (GASB). For the purpose of this evaluation, control was determined by the Board’s
responsibility for: (1) adoption of the budget and user charges, (2) taxing authority, and (3)
establishment of policies. The reporting entity and its services are described in further detail in Note 1
of the financial statements.
An audit of the books, financial records, and transactions of OCSD is conducted annually by
independent certified public accountants. OCSD selected the accounting firm of Macias Gini &
O’Connell LLP to perform the audit for the year ended June 30, 2020. The auditor’s report on OCSD’s
basic financial statements and supplementary information is located on page 1 within the financial
section of this report. This report renders an unmodified opinion on OCSD’s basic financial statements
for the year ended June 30, 2020.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the basic financial statements. The
MD&A complements this letter of transmittal and should be read in conjunction with it.
GOVERNMENTAL STRUCTURE
The Orange County Sanitation District encompasses the Northern section of Orange County. OCSD
provides wastewater treatment for an area of the County covering 479 square miles and serving a
population of approximately 2.6 million, or 81 percent of the County’s population. OCSD was originally
incorporated in 1954 as nine separate public corporations, or districts. In April of 1998, at OCSD’s
request, the Board of Supervisors of the County of Orange passed Resolution No. 98-140 ordering the
consolidation of these nine County Sanitation Districts into a new, single sanitation district, to be known
as the Orange County Sanitation District, effective July 1, 1998. This action was recommended to the
Board by the Local Agency Formation Commission in order to simplify governance structures, reduce
the size of the Board, ease administrative processes, streamline decision-making and consolidate
accounting and auditing processes. The boundaries of the nine previous districts had remained intact
for the purpose of collecting sewer user fees at the previously established rate schedules and were
referred to as nine individual revenue areas through June 30, 2000. Effective July 1, 2003, all Revenue
Areas, except Revenue Area 14, consolidated user fee rates and all enterprise fund accounting and
budgeting activities and are now known as the Consolidated Revenue Area.
i
ii
OCSD is managed by an administrative organization composed of directors appointed by the agencies or
cities which are serviced by OCSD. Each of the two remaining Revenue Areas, the Consolidated Revenue
Area and Revenue Area 14, has its own budget and is responsible for the construction and maintenance
of its own collection system. All Revenue Areas, except Revenue Area 14 and the portion of the
Consolidated Revenue Area previously known as Revenue Area 13, receive their own share of the one-
percent ad valorem property tax levy. In addition, all Revenue Areas, except Revenue Area 14, receive
user fees from property owners. Revenue Area 14 receives all of its revenues from service charges to the
Irvine Ranch Water District.
The purpose of OCSD’s wastewater management program is to protect the public’s health, preserve the
beneficial uses of the coastal waters, and maintain air quality. The objectives of operating the treatment
plants are to process and pass on for purification or dispose of the treated wastewater and the separated
solids in accordance with Federal, state, and local laws including the Environmental Protection Agency.
OCSD sewerage system includes approximately 388 miles of sewers that convey wastewater generated
within OCSD’s boundaries to OCSD’s two wastewater treatment plants; Reclamation Plant No. 1 located
in the City of Fountain Valley, and Treatment Plant No. 2 located in the City of Huntington Beach.
Plants No. 1 and No. 2 have secondary treatment capacities of 182 million gallons per day (mgd) and 150
mgd, respectively. In fiscal year 2020-21, both plants are projected to receive a combined average daily
wastewater flow of 188 million gallons per day from residential, commercial, and industrial sources.
After wastewater receives secondary treatment at Plant No. 1, it flows to the Groundwater Water
Replenishment System (GWRS) at the Orange County Water District, located adjacent to OCSD, where it
undergoes a state-of-the-art purification process consisting of microfiltration, reverse osmosis, and
ultraviolet light with hydrogen peroxide. The product water is near-distilled quality. Approximately 35 million
gallons (132,500 cubic meters) per day of the GWRS water are pumped into injection wells to create a
seawater intrusion barrier. Another 65 million gallons (246,000 cubic meters) are pumped daily to Orange
County Water District's percolation basins in Anaheim where the GWRS water naturally filters through sand
and gravel to the deep aquifers of the groundwater basin.
Remaining outflows of treated wastewater from Plants 1 and 2 are combined and discharged to the ocean
off the Huntington Beach coast through an outfall pipe that is 120 inches in diameter and approximately five
miles long. The last mile of the outfall pipe is a diffuser that dilutes the wastewater with seawater in a ratio
of 148 parts seawater to one part treated wastewater at an average depth of 185 feet.
ECONOMIC CONDITIONS AND OUTLOOK
Before the COVID-19 pandemic and shutdown, California’s economy was growing at a relatively low, but
steady rate. The stay at home orders effectively shut down large portions of the State and Orange County
economies.
According to the California Employment Development Department (EDD), Orange County saw a decrease
of approximately 10.7 percent in payroll jobs from August 2019 to August 2020. During this same time
period, unemployment in Orange County increased to 9.9 percent from 3.0 percent while the unemployment
in California as a whole increased to 11.6 percent from 4.2 percent. In June 2020, Chapman University
forecasted Orange County’s 2020 total payroll employment to decrease 8.1 percent over the prior year, or
the subtraction of 135,000 payroll jobs in 2020.
Despite the forecasted decrease in the Orange County job market, Chapman University continues to project
a residential housing appreciation of 1.4 percent. Short-run increases can occur when inventories remain
tight. Longer-run economic and demographic forces will eventually dominate the pricing equation,
especially when affordability, as measured by the median home price-to-median income ratio, is projected
to continue increasing.
iii
According to Chapman University, residential permit valuation in the County is forecasted to decrease from
an 8.9 percent decline in 2019 to a 15.3 percent decline in 2020.
The COVID-19 recession will affect all of California, including Orange County. Orange County is a relatively
diverse economy that is not heavily dependent on any one sector, which mitigates the effect when particular
sectors of the economy weaken.
MAJOR INITIATIVES
Following are the Sanitation District’s current major initiatives as outlined in the General Manager’s work
plan for FY 2020-21:
1. Business Principles
Budget Control and Fiscal Discipline – Provide the Administration Committee with an
analysis of options, including an IRS Section 115 Trust for funding the Sanitation District’s
pension obligations by October 31, 2020.
Asset Management – Update the Asset Management Plan by December 31, 2020 including an
inventory of critical assets for each process area and the collection system; an evaluation of their
condition and performance; and an updated implementation plan to maintain, rehabilitate,
and replace these assets to meet the required levels of service at the lowest life cycle cost
and at an acceptable level of risk.
Headquarters Project – Complete site preparation for the new Headquarters facility, Project
P1-128C, by June 30, 2021.
Cybersecurity/Safety – Develop and conduct two emergency response and recovery drills for
the interplant digester gas line and a cybersecurity breach by June 30, 2021.
Property Management – Inspect real property, easements, and rights-of-way for
encroachments and encumbrances which limit access or impede proper use of the right by
December 31, 2020. Develop action plans by June 30, 2021 that restore long-term use for
identified encroachments or encumbrances.
2. Environmental Stewardship
Energy Independence – Overhaul two Central Generation Engines to begin the second 25-year
operations cycle for the Central Generation Facilities by June 30, 2021.
Climate and Catastrophic Event Resilience – Execute a contingency biosolids disposal
agreement with Orange County Waste and Recycling to formally establish a local emergency
failsafe biosolids disposal option by March 31, 2021.
Food Waste Treatment – Complete market assessment for food waste feedstock co-
digestion at OCSD. Solicit bids to construct the Interim Food Waste Facility at Plant No. 2,
Project P2-124, by December 31, 2020.
Water Reuse – Study alternatives to reduce the use of City Water in its operations by
October 31, 2020 and implement water saving measures by June 30, 2021.
Environmental Water Quality, Stormwater Management and Urban Runoff – Complete
business process mapping for source control permit management, compliance data
management, and Environmental Protection Agency compliant reporting to evaluate the current
system and alternatives for enhancing the system. Complete final report and
recommendations by March 31, 2021.
3. Wastewater Management
Chemical Sustainability – The Sanitation District will develop a plan to maintain at least
two suppliers for Iron based coagulants at all times with a final report out to the Board of Directors
by June 30, 2021.
iv
Biosolids Management – Conduct an annual review of the regulatory aspects of the OCSD
Biosolids Management Plan to adjust for evolving regulations for contaminants of emerging
concern and update contingency options as needed. Provide an informational update to the
Board of Directors by June 30, 2021.
Constituents of Emerging Concern – Continue OCSD's leadership role in developing
analytical capability, advocating for sound science and regulations, and identification of
significant sources in constituents of emerging concerns such as per- and polyfluoroalkyl
(PFAS) and microplastics. Provide an informational briefing to the Board of Directors by June
30, 2021. Provide preliminary results from the California State Water Resources Control
Board investigative order for PFAS by June 30, 2021.
4. Workplace Environment
COVID-19 Pandemic Response and Recovery – Continue to respond to the COVID-19
pandemic with operations remaining in full permit compliance while providing a safe workplace
and complying with the Center for Disease Control and Prevention health official guidance,
and applicable employment and labor laws. Develop a “reopening plan” and present it to the
Board of Directors by September 30, 2020.
Safety and Physical Security – Complete implementation of an Industrial Hygiene Program
and a Job Safety Analysis program to meet the Voluntary Protection Program requirements by
June 30, 2021.
Classification and Compensation Study – Begin preparations for an agency wide
Classification and Compensation Study by completing a Request for Proposal for a specialized
vendor and accessing, discussing, and meeting and conferring regarding the 17 survey
agencies by June 30, 2021.
Succession Planning – Conduct two specialized training classes for supervisors,
managers, and executive management team members and provide organizational awareness
coursework via OCSD University for all employees with a final report out on June 30, 2021.
Strategic Planning
In November 2019, the Board of Directors adopted a new comprehensive strategic plan to steer OCSD’s
efforts. The Strategic Plan developed by the Board of Directors and staff defines the strategic initiatives to
be pursued by OCSD and provides a basis for long-term financial, capital, and operational planning. In
addition, it provides for long-term continuity of vision as Board and staff members change over the many
years it takes to deliver public works infrastructure.
Driven by our Mission, Vision and Core Values, this Strategic Plan continues OCSD’s aggressive efforts to
protect the public health of the more than 2.6 million people we serve while protecting the environment
where we live.
The Strategic Plan is broken down into four broad categories with fourteen topic areas that define our
responsibilities and the services we provide. These areas are:
Business Principles
o Budget Control and Fiscal Discipline
o Asset Management
o Cybersecurity
o Property Management
Environmental Stewardship
o Energy Independence
o Climate and Catastrophic Event Resiliency
o Food Waste Treatment
o Water Reuse
v
o Environmental Water Quality, Stormwater Management and Urban Runoff
Wastewater Management
o Chemical Sustainability
o Biosolids Management
o Constituents of Emerging Concern
Workplace Environment
o Resilient Staffing
o Safety and Physical Security
The Strategic Plan is not a radical departure from the current direction, but rather the well-defined iterative
update to the direction of OCSD. With the adoption of the Strategic Plan, staff will be updating the Asset
Management Plan, Capital Improvement Plan, and Financial Plan that are the basis of a two-year budget
that will be adopted by the Board of Directors. The Budget goals and the General Manager’s work plan are
the accountability steps that measure achievable progress toward the strategic initiatives listed in the
Strategic Plan.
SERVICE EFFORTS AND ACCOMPLISHMENTS
The following service efforts and accomplishments were achieved by OCSD during the year ended June
30, 2020:
Utility of the Future Award – 2020 Water Environmental Research Foundation, National
Association of Clean Water Agencies, Water Environment Federation and Environmental
Protection Agency
Platinum Peak Performance Award – 2020 National Association of Clean Water Agencies
2019 Excellence Award in Information Technology Practices from the Municipal Information
Systems Association of California (MISAC)
American Inhouse Design Award – Graphic Design USA
Grand Prize – 2020 American Academy of Environmental Engineers & Scientists
Turning Red Tape into Red Carpet, Orange County Business Council, Interim Food Waste
Receiving Facility
Investment Policy Certification – California Municipal Treasurers Association (CMTA)
Certificate of Achievement for Excellence in Financial Reporting – Government Finance
Officers Association (GFOA)
District Transparency Certificate of Excellence – Special District Leadership Foundation
Distinguished Budget Presentation Award – GFOA
Excellence in Procurement – California Association of Public Procurement Officers
SARBS/CWEA 2019
o Quarter Century Award, Tony Lee
o 1st Place Community Engagement and Outreach Project of the Year, Large, State
College Sewer Construction Outreach Program (Project Lead Daisy Covarrubias)
o Collections System 2nd Place, Medium
o Laboratory Person of the Year 1st Place, Dawn Myers
o Laboratory Person of the Year 2nd Place, Arturo Diaz
o Operator of the Year 2nd Place, Jennifer Alexander
o SARBS Spotlight Award, Cindy Murra
o 2020 PICK Award, Professionalism, Integrity, Contribution, Knowledge
vi
o 1st Place Winner Community Engagement and Outreach
o 2nd Place Winner Community Engagement and Outreach: Project of the Year
ACCOUNTING AND BUDGETARY CONTROLS
OCSD’s accounting records are maintained on the accrual basis. In developing and evaluating OCSD’s
accounting system, consideration is given to the adequacy of internal accounting controls. Internal
accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the
safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial
records for preparing financial statements and maintaining accountability for assets. The concept of
reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be
derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management.
We believe that OCSD’s internal accounting controls adequately safeguard assets and provide reasonable
assurance of proper recording of financial transactions.
Each year OCSD’s Board of Directors adopts an annual operating plan. A joint works budget is first
prepared that identifies the specific capital projects and operating activities to be undertaken by OCSD
during the year. The budgetary level of control, the level at which expenses cannot exceed budget, is
exercised at the individual district, or fund level. OCSD has adopted a Uniform Purchasing Policy that
identifies the agreed upon purchasing standards.
ACCUMULATED FUNDS AND RESERVES POLICY
The Board of Directors of the Orange County Sanitation District has established the following Accumulated
Funds and Reserves Policy:
Cash Flow Reserve: A cash flow criterion has been established at a level to fund operations, maintenance,
and certificates of participation expenses for the first half of the fiscal year, prior to the receipt of the first
installment of the property tax allocation and the 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.
Operating Contingency Reserve: An operating contingency criterion has been established to provide for
non-recurring operating expenditures that were not anticipated when the annual budget was considered
and adopted. The level of this criterion will be established at an amount equal to ten percent of the current
fiscal year’s annual operating budget.
Capital Improvement Reserve: A capital improvement criterion has been maintained to fund annual
increments of the capital improvement program. The target level of this criterion has been established at
one half of the average annual cash outlay of the capital improvement program through the year 2030.
Levels higher and lower than the target can be expected while the long-term financing and capital
improvement programs are being finalized.
Catastrophic Loss or Self-Insurance Reserves: A catastrophic loss or self-insurance criterion has been
maintained for property damage including fire, flood, and earthquake, for general liability and for workers'
compensation. This reserve criterion is intended to work with purchased insurance policies, FEMA, and
State disaster reimbursements. Based on the plant infrastructure replacement value, the level of this
criterion has been set to fund the Sanitation District's non- reimbursed costs, estimated to be $100 million.
Capital Replacement/Renewal Reserve Policy: A capital replacement/renewal criterion policy has been
established to provide funding to replace or refurbish the current collection, treatment, and recycling
facilities at the end of their useful economic lives. The current replacement value of these facilities is
estimated to be $10.8 billion. The reserve criterion level had been established at $75 million.
vii
Debt Service Reserves: A debt service criterion policy has been established at ten percent of the
outstanding certificate of participation (COP) issues. Other debt service reserves are required to be under
the control of a Trustee by the provisions of the certificate of participation issues. These funds are not
available for the general needs of the Sanitation District and must be maintained at specified levels.
Accumulated Funds exceeding the targets specified by OCSD policy will be maintained for Capital
Improvements and Rate Stabilization. These funds will be applied to future years' CIP needs due to the
timing of the actual CIP outlays, in order to maintain rates or to moderate annual fluctuations.
As of June 30, 2020, OCSD was in compliance with the Accumulated Funds and Reserves Policy with
designated cash and investments totaling $881 million, and have been earmarked for the following specific
purposes in accordance with OCSD’s reserve policy:
Designated Cash and Investments
Designated For Cash Flow Contingency $178 million
Designated For Self-Insurance 57 million
Designated For Capital Improvements 552 million
Designated For Debt Service Requirements 94 million
Total Designated Cash and Investments $ 881 million
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Orange County Sanitation District
for OCSD’s Comprehensive Annual Financial Report for the year ended June 30, 2019. This was the
twenty-fifth consecutive year that OCSD has received this award. In order to be awarded a Certificate of
Achievement, a governmental unit must publish an easily readable and efficiently organized
Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program
requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
This report could not have been accomplished without the dedicated services of the Financial Management
Division staff, and I would like to especially express my appreciation to Kim Cardenas, Accounting
Supervisor, who assisted in its preparation. I would also like to thank OCSD’s Board of Directors and the
General Manager for their interest and support in conducting the financial operations of OCSD in a
responsible and progressive manner.
Respectfully submitted,
Wally Ritchie
Controller
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ORANGE COUNTY SANITATION DISTRICT
Board of Directors
As of June 30, 2020
Agency _ Active Director _ Alternate Director _
Cities:
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 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 Nelida Mendoza 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 Robert Ooten
Midway City Sanitary District Andrew Nguyen Margie Rice
Irvine Ranch Water District John Withers Douglas Reinhart
Yorba Linda Water District Brooke Jones Phil Hawkins
County Areas:
Member of the Board
of Supervisors
Doug Chaffee Donald Wagner
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ORANGE COUNTY SANITATION DISTRICT
Organizational Chart
As of June 30, 2020
xi
ORANGE COUNTY SANITATION DISTRICT
Map of Service Area
As of June 30, 2020
xii
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www.mgocpa.com
Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 1
Independent Auditor’s Report
To the Board of Directors
Orange County Sanitation District
Fountain Valley, California
We have audited the accompanying financial statements of the Orange County Sanitation District (OCSD)
as of and for the year ended June 30, 2020, and the related notes to the financial statements, which
collectively comprise OCSD’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to OCSD’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of OCSD’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Orange County Sanitation District, as of June 30, 2020, and the changes in its financial
position and its cash flows for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
2
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, Schedule of Proportionate Share of the Net Pension Liability (Asset) – OCERS
Pension Plan, Schedule of District Contributions – OCERS Pension Plan, Schedule of Total Pension
Liability – Additional Retiree Benefit Account, Schedule of Changes in Total Pension Liability – Additional
Retiree Benefit Account, Schedule of Total OPEB Liability – Post-Employment Medical Benefits Plan, and
Schedule of Changes in Total OPEB Liability – Post-Employment Medical Benefits Plan, as listed in the
table of contents, be presented to supplement the basic financial statements. Such information, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise OCSD’s basic financial statements. The separate “Combining Area” financial statements,
introductory section, statistical section, and other data and trends are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The “Combining Area” financial statements are the responsibility of management and were derived from,
and relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the “Combining
Area” financial statements are fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
The introductory and statistical sections and other data and trends have not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not express an
opinion or provide any assurance on them.
Newport Beach, California
October 28, 2020
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2020
3
This section of the financial statements of the Orange County Sanitation District (OCSD) is management’s
narrative overview and analysis of the financial activities of OCSD for the fiscal year ended June 30, 2020.
The information presented here is to be considered in conjunction with additional information provided
within the letter of transmittal located in the Introductory Section of this report.
Financial Highlights
As of June 30, 2020, OCSD’s assets and deferred outflows of resources exceeded its liabilities and
deferred inflows of resources by $2,539.0 million (net position). Of this amount, $861.0 million
represents unrestricted net position, which may be used to meet OCSD’s ongoing obligations to citizens
and creditors.
Total net position increased $178.5 million, or 7.6 percent over the prior year.
Net capital assets, consisting of non-depreciable capital assets and depreciable capital assets net of
accumulated depreciation, increased $4.9 million, or 0.2 percent over the prior year.
Net investment in capital assets increased $30.3 million, or 1.8 percent over the prior year.
Unrestricted net position increased $148.2 million, or 20.8 percent over the prior year.
Total outstanding bonded debt decreased by $32.7 million, or 3.4 percent from the prior year, to $940.1
million.
Overview of the Basic Financial Statements
OCSD operates as a utility enterprise and presents its financial statements using the economic resources
measurement focus and the full accrual basis of accounting. As an enterprise fund, OCSD’s basic financial
statements are comprised of two components: financial statements and notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial statements
themselves.
In accordance with the GASB Codification of Governmental Accounting and Financial Reporting Standards,
OCSD’s financial statements include a Statement of Net Position; Statement of Revenues, Expenses, and
Change in Net Position; and a Statement of Cash Flows.
The Statement of Net Position includes OCSD’s assets, deferred outflows of resources, liabilities, and
deferred inflows of resources; and provides information about the nature and amounts of investments in
resources (assets) and the obligations to OCSD’s creditors (liabilities). It also provides the basis for
computing the rate of return, evaluating the capital structure of OCSD, and assessing the liquidity and
financial flexibility of OCSD.
The Statement of Revenues, Expenses, and Change in Net Position accounts for the current year’s
revenues and expenses. This Statement measures the success of OCSD’s operations over the past year
and can be used to determine OCSD’s creditworthiness. It also highlights OCSD’s dependency on property
tax revenues in supplementing user fees and other charges for recovering total cost.
The final required financial statement, the Statement of Cash Flows, reports cash receipts, cash payments,
and net changes in cash resulting from operations, investments, and financial activities of the reporting
period.
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2020
4
Net Position
As previously noted, net position increased $178.5 million, or 7.6 percent over the net position for
FY 2018-19, to $2,539.0 million in FY 2019-20.
(Dollars in thousands)
Assets
Current and other assets 964,535$ 789,769$ 174,766$ 22.1%
Net capital assets 2,674,201 2,669,309 4,892 0.2%
Total assets 3,638,736 3,459,078 179,658 5.2%
Deferred outflows
of resources 63,213 122,683 (59,470) -48.5%
Total assets and
deferred outflows
of resources 3,701,949 3,581,761 120,188 3.4%
Liabilities
Current liabilities 138,390 109,982 28,408 25.8%
Noncurrent liabilities 991,389 1,065,679 (74,290) -7.0%
Total liabilities 1,129,779 1,175,661 (45,882) -3.9%
Deferred inflows
of resources 33,160 45,598 (12,438) -27.3%
Total liabilities
and deferred inflows
of resources 1,162,939 1,221,259 (58,320) -4.8%
Net position
Net investment in
capital assets 1,678,041 1,647,723 30,318 1.8%
Unrestricted 860,969 712,779 148,190 20.8%
Total net position 2,539,010$ 2,360,502$ 178,508$ 7.6%
Increase
(Decrease)
Percentage
Increase
(Decrease)
June 30,
2019
June 30,
2020
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2020
5
Current and other assets increased $174.8 million, or 22.1 percent, due primarily to net cash provided by
operations of $169.0 million, proceeds from property taxes of $104.2 million, OCERS net pension asset of
$49.4 million, net investment activities and other items of $21.8 million, receipt of capital facilities capacity
charges of $20.1 million, interest received of $17.5 million, and contributions from other governments of
$6.5 million, offset by capital outlays of $136.6 million, interest paid of $44.4 million, and bonded debt
retirements of $32.7 million.
Net capital assets increased $4.9 million, or 0.2 percent, due mostly to the ongoing capital improvement
program construction in progress additions of $118.2 million and capital equipment of $1.8 million, offset
by depreciation of $113.9 million and $1.2 million of prior capital project expenses that were written off as
expense. Included in total capital outlay additions is the Ocean Outfall System Rehabilitation with incurred
project costs of $19.8 million FY 2019-20 and a total project budget of $166.0 million. This project will
rehabilitate the Ocean Outfall Booster Station at Plant No. 2, construct a new Low Flow Pump Station and
a Plant Water Pump Station, and replace existing electrical switchgear at CenGen.
Collection system projects include the Newhope-Placentia Trunk Replacement. The Newhope-Placentia
Trunk Replacement incurred outlays of $23.0 million in FY 2019-20 with a total project budget of $112.0
million through the projected completion in FY 2021-22. This project will increase the size of approximately
35,000 feet of the trunk line from Yorba Linda Boulevard to Orangewood Avenue. The upsized sewer will
accommodate flows from the newly abandoned Yorba Linda Pump Station and the newly interconnected
Atwood Sub-trunk.
See page 8 for the Schedule of Capital Assets and listing of other major capital additions for FY 2019-20.
Deferred outflows of resources decreased $59.5 million, or 48.5 percent from the prior year, primarily due
to a $55.7 million decrease in pension deferred outflows attributable to the change in projected and actual
earnings on pension plan investments and changes of actuarial assumptions and other inputs, as well as a
decrease of $3.8 million for the difference between carrying amount of the retired debt and the acquisition
price of COP Series.
Deferred inflows of resources decreased $12.4 million, or 27.3 percent under the prior year, primarily as a
result of the change in projected and actual earnings on pension plan investments and differences between
expected and actual experiences.
Net investment in capital assets increased $30.3 million, or 1.8 percent over the prior year, primarily as a
result of the net increase in capital assets of $4.9 million coupled with a $25.4 million decrease in related
debt.
Unrestricted net position increased $148.2 million, or 20.8 percent, due to the overall increase in net position
of $178.5 million, offset by the increase in net investment in capital assets of $30.3 million.
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2020
6
Change in Net Position
Net position increased $12.8 million in FY 2019-20, or 7.7 percent over the prior year’s increase in net
position.
(Dollars in thousands)
Revenues:
Operating revenues
Service charges 339,895$ 317,291$ 22,604$ 7.1%
Permit and inspection fees 1,169 1,199 (30) -2.5%
Total operating revenues 341,064 318,490 22,574 7.1%
Non-operating revenues
Property taxes 104,492 99,534 4,958 5.0%
Investment and interest income 33,669 29,102 4,567 15.7%
Contrib. from other governments 10,535 27,800 (17,265) -62.1%
Other 2,637 2,162 475 22.0%
Total non-operating revenues 151,333 158,598 (7,265) -4.6%
Total revenues 492,397 477,088 15,309 3.2%
Expenses:
Operating expense other than
depreciation and amortization 168,333 166,586 1,747 1.0%
Depreciation and amortization 113,888 102,239 11,649 11.4%
Non-operating expense 54,261 63,582 (9,321) -14.7%
Total expenses 336,482 332,407 4,075 1.2%
Income before capital
contributions 155,915 144,681 11,234 7.8%
Capital facilities capacity charges 22,593 21,032 1,561 7.4%
Increase in net position 178,508 165,713 12,795 7.7%
Beginning net position 2,360,502 2,194,789 165,713 7.6%
Ending net position 2,539,010$ 2,360,502$ 178,508$ 7.6%
June 30,
2020
June 30,
2019
Increase
(Decrease)
Percentage
Increase
(Decrease)
As previously stated, an enterprise fund is used to account for the operations of OCSD, which is financed
and operated in a manner similar to private business enterprises. This allows OCSD to determine that the
costs (expenses, including depreciation and amortization) of providing wastewater management services
on a continuing basis are financed or recovered primarily through user charges.
Sewer service user fees are evaluated annually based primarily on budget requirements for total operation
and maintenance expenses and capital outlays for providing wastewater management services. Property
tax revenues are dedicated for the payment of debt service.
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2020
7
Operating revenues increased $22.6 million, or 7.1 percent in FY 2019-20 from the prior year, primarily due
to a 1.2 percent increase in the average sewer user fee rate and a decrease in user fee rebates issued
over the prior year, as well as an increase in service charges to IRWD.
Non-operating revenues decrease of $7.3 million, or 4.6 percent, primarily consists of a $17.3 million or
62.1 percent decrease in contributions from other governments, reflective of the decrease in the integration
adjustment of Revenue Area 14’s equity share in OCSD’s Joint Works Treatment Facilities based on the
flows discharged to OCSD. This decrease is offset by a $5.0 million or 5.0 percent increase in property
taxes revenue due to the increase in total assessed valuation of 5.8 percent over the prior year, a $4.5
million or 15.7 percent increase in investment and interest income as a result of higher account balances
held in the investment portfolios, and a $0.5 million or 22.0 percent increase in other revenues attributable
to a retrospective insurance adjustment.
Operating expense before depreciation and amortization increased $1.7 million, or 1.0 percent from the
prior year. The majority of this increase is from a $12.3 million or 38.7 percent rise in supplies, repairs and
maintenance, attributable to delayed rehabilitation projects for primary and secondary clarifiers, increases
in basic repairs and maintenance costs, and Central Generation engine overhaul. This increase is offset by
a $6.6 million or 69.0 percent decrease in other expenses primarily from a reduction in reserves for claims
and judgments and a $1.4 million or 5.6 percent decrease in contractual services resulting from lower
biosolids removal costs due to new dewatering centrifuges that replaced aging belt presses. Additionally,
salaries and benefits decreased by $2.6 million or 3.0 percent over the prior year. When including the
salaries and benefits capitalized within the capital improvement program, total operating salaries and
benefits costs were $99.9 million, a $3.0 million or 2.9 percent decrease from the prior year total of $102.9
million. This decrease is reflective of the $5.9 million or 32.5 percent decrease in retirement expenses as a
result of the change in projected and actual earnings on pension plan investments and changes of
assumptions, somewhat offset by a $2.6 million or 3.6 percent increase in salaries and wages.
Non-operating expense decreased $9.3 million, or 14.7 percent, primarily resulting from the prior year $23.2
million transfer of local sewer service fee assets and replacement funds to the City of Santa Ana, a $4.2
million or 76.4 percent decrease in loss on disposal of capital assets, and a decrease in interest expense
of $0.6 million or 1.8 percent from the prior year total of $34.5 million. Offsetting this decrease is the increase
of $16.4 million in contributions to other governments for the integration adjustment of Revenue Area 14’s
equity share in OCSD’s Joint Works Treatment Facilities based on the flows discharged to OCSD and an
increase of $2.3 million in other non-operating expenses due to project 2-41-8 SARI rock removal.
69%
21%
7%
3%
Sources of Revenue
June 30, 2020
User Fees
Taxes Levied
Interest Income
Other
8%
42%34%
10%
6%
Functional Expenses
June 30, 2020
Collection
System
Treatment &
Disposal
Depreciation &
Amortization
Interest
Expense
Other
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2020
8
Capital facility capacity charges increased $1.6 million, or 7.4 percent from the prior year, due to an increase
in rates and connection fees collected from cities, offset by less supplemental capital facilities capacity
charges assessed to industrial dischargers than last year.
Capital Assets
At June 30, 2020, OCSD had a net investment of $2.7 billion in capital assets. This represents a net
increase (including additions and deletions) of $4.9 million, or 0.2 percent over the prior year.
(Dollars in thousands)
Land 41,967$ 41,967$ -$ 0.0%
Construction in progress 363,931 521,832 (157,901) -30.3%
Sewage collection facilities 494,680 508,164 (13,484) -2.7%
Sewage treatment facilities 1,668,008 1,485,491 182,517 12.3%
Effluent disposal facilities 30,240 31,696 (1,456) -4.6%
Solids disposal facilities 268 278 (10) -3.6%
General and administrative facilities 75,107 79,881 (4,774) -6.0%
Capital assets, net 2,674,201$ 2,669,309$ 4,892$ 0.2%
Schedule of Capital Assets
(Net of Depreciation and Amortization)
June 30,
2020
June 30,
2019
Increase
(Decrease)
Percentage
Increase
(Decrease)
Major capital asset additions for the current fiscal year included the following:
$23.0 million Newhope-Placentia Trunk Replacement
$19.8 million Ocean Outfall System Rehabilitation
$12.0 million Primary Treatment Rehabilitation at Plant No. 2
$ 9.8 million Headworks Rehabilitation and Expansion at Plant No. 1
$ 6.5 million Safety Improvements Program
$ 5.6 million Headquarters Complex and Site Security at Plant No. 1
$ 5.2 million Westminster Blvd Force Main Replacement
$ 4.5 million Sludge Dewatering and Odor control at Plant 1
$ 4.4 million Sludge Dewatering and Odor Control at Plant 2
$ 3.4 million Digester Gas Facilities Rehabilitation
More detailed information about OCSD’s capital assets is provided in Notes 1 and 3 of the Notes to Basic
Financial Statements.
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2020
9
Debt Administration
At June 30, 2020, OCSD had $940.1 million outstanding in bonded debt, a net decrease of $32.7 million,
or 3.4 percent from the prior year. This reduction consisted of the accumulation of principal payments made
in accordance with the schedule of debt service payments.
During OCSD’s most recent debt refundings, Moody’s, Standard and Poor’s, and Fitch Ratings all
reaffirmed their AAA rating of the Orange County Sanitation District. OCSD’s long-range financing plan is
designed to maintain this high rating. Over the next five years, OCSD is projecting over $1.2 billion in future
treatment plant and collection system capital improvements. In accordance with OCSD’s long-term debt
fiscal policy, OCSD will restrict long-term borrowing to capital improvements that cannot be financed from
current revenue. No new debt issuances are being proposed over the next five years to assist with the
funding of the system improvements scheduled over this time period. For more information on long-term
debt activities, see Note 4 of the Notes to Basic Financial Statements.
Economic Factors and Next Year’s Budgets and Rates
The coronavirus pandemic decimated the U.S, California, and Orange County economies in 2020.
There is uncertainty in how quickly California will ease restrictions to reopen the economy and if there
will be renewed shutdowns. Orange County tourism and sales tax revenues have been hard hit and
are affecting many government entity revenue streams. OCSD does not rely on sales or tourism related
taxes for revenue.
The unemployment rate within the County of Orange is at 13.6 percent in June 2020, an increase from
the rate of 3.0 percent in June 2019.
Inflation for the Los Angeles-Long Beach-Anaheim area increased 1.4 percent in June 2020 over the
prior year June 2019 based on the actual percentage change in the consumer price index according to
the U. S. Department of Labor, Bureau of Labor Statistics.
The yield on investments decreased from the 2.0 percent earnings rate in FY 2018-19 to 0.4 percent
for FY 2019-20.
All of these factors are considered in preparing OCSD’s biennium budget.
As members of the community, we understand the financial impacts of COVID-19 on Orange County and
that many of our ratepayers have incurred great losses.
The Board of Directors voted to adopt the two-year budget and not raise the sewer fee for FY 2020-21 as
originally approved in OCSD’s five-year rate schedule. The Single Family Residential (SFR) fee, which is
the underlying rate for all other user rates, is applicable to OCSD’s largest customer base: the SFR fee
remained at $339.00 instead of increasing by 1.2 percent or $4.00 to $343.00. The rate increase has been
eliminated for FY 2020-21 in response to COVID-19 and will resume in FY 2021-22. The revenue from
sewer fees is necessary to support OCSD’s cash flow needs including $174.3 million in operating costs,
$72.8 million in debt service costs and $164.8 million in capital improvement outlays in 2020-21. Capital
Improvement costs are projected to total $2.7 billion over the next 10 years in order to rehabilitate and
upgrade existing facilities and maintain full secondary treatment standards.
Requests for Information
The financial report is designed to provide a general overview of OCSD’s finances. Questions concerning
any of the information provided in this report or requests for additional financial information should be
addressed to the Financial Management Division, Orange County Sanitation District, 10844 Ellis Avenue,
Fountain Valley, CA 92708-7018.
10
(THIS PAGE LEFT INTENTIONALLY BLANK)
ORANGE COUNTY SANITATION DISTRICT
BASIC FINANCIAL STATEMENTS
11
ORANGE COUNTY SANITATION DISTRICT
Statement of Net Position
June 30, 2020
Current assets:
Cash and cash equivalents 106,562,503$
Investments 774,218,874
Accounts receivable, net of allowance for uncollectibles $304,619 15,585,233
Accrued interest receivable 3,261,437
Connection fees receivable 4,276,297
Property tax receivable 1,841,207
Inventories 6,852,604
Prepaid expenses 2,473,418
Total current assets 915,071,573
Noncurrent assets:
Restricted:
Cash and cash equivalents held by fiscal agents 6,998
Unrestricted:
Non-depreciable capital assets 405,898,190
Depreciable capital assets, net of accumulated depreciation 2,268,302,719
Other noncurrent assets, net 10,344
Net pension asset - OCERS 49,446,615
Total noncurrent assets 2,723,664,866
Total assets 3,638,736,439
Deferred outflows of resources:
Deferred charges on defeasances 25,162,613
Deferred outflows related to pensions 38,050,031
Total deferred outflows of resources 63,212,644
Total assets and deferred outflows of resources 3,701,949,083
Current liabilities:
Accounts payable 16,007,700
Accrued expenses 16,259,932
Retentions payable 4,475,945
Interest payable 17,582,050
Due to other governmental agency 34,613,820
Current portion of long-term obligations 49,450,092
Total current liabilities 138,389,539
Noncurrent liabilities:
Noncurrent portion of long-term obligations 967,470,844
Total OPEB liability 2,483,644
Total pension liability - ARBA 21,434,655
Total noncurrent liabilities 991,389,143
Total liabilities 1,129,778,682
Deferred inflows of resources:
Deferred inflows related to pensions 33,160,310
Total liabilities and deferred inflows of resources 1,162,938,992
Net position:
Net investment in capital assets 1,678,041,015
Unrestricted 860,969,076
Total net position 2,539,010,091$
See Accompanying Notes to Basic Financial Statements.
12
ORANGE COUNTY SANITATION DISTRICT
Statement of Revenues, Expenses, and Change in Net Position
For the Year Ended June 30, 2020
Operating revenues:
Service charges 339,895,508$
Permit and inspection fees 1,168,554
Total operating revenues 341,064,062
Operating expenses other than depreciation
and amortization:
Salaries and benefits 82,916,642
Utilities 8,622,358
Supplies, repairs and maintenance 44,062,629
Contractual services 24,624,668
Feasibility studies 5,113,211
Other 2,993,614
Total operating expenses other than
depreciation and amortization 168,333,122
Operating income before depreciation
and amortization 172,730,940
Depreciation and amortization 113,887,828
Operating income 58,843,112
Non-operating revenues:
Property taxes 104,491,530
Investment and interest income 33,669,185
Contributions from other governments 10,535,138
Other 2,637,274
Total non-operating revenues 151,333,127
Non-operating expenses:
Interest 33,832,605
Contributions to other governments 16,408,665
Other 2,725,028
Loss on disposal of assets 1,295,446
Total non-operating expenses 54,261,744
Income before capital contributions 155,914,495
Capital contributions:
Capital facilities capacity charges 22,593,121
Change in net position 178,507,616
Total net position - beginning 2,360,502,475
Total net position - ending 2,539,010,091$
See Accompanying Notes to Basic Financial Statements.
13
ORANGE COUNTY SANITATION DISTRICT
Statement of Cash Flows
For the Year Ended June 30, 2020
Cash flows from operating activities:
Receipts from customers and users 374,305,112$
Payments to employees (118,367,068)
Payments to suppliers (86,927,267)
Net cash provided by operating activities 169,010,777
Cash flows from noncapital financing activities:
Proceeds from property taxes 104,236,994
Payments for other activities (90,298)
Net cash provided by noncapital financing activities 104,146,696
Cash flows from capital and related financing activities:
Capital facilities capacity charges 20,051,888
Additions to capital assets (136,578,436)
Interest paid (44,351,789)
Principal payments on debt obligations (32,730,000)
Contributions from other governments 6,533,131
Net cash used in capital and related financing activities (187,075,206)
Cash flows from investing activities:
Proceeds from the sale of investments 386,346,275
Purchases of investments (459,325,245)
Interest received 17,507,225
Net cash used in investing activities (55,471,745)
Net increase in cash and cash equivalents 30,610,522
Cash and cash equivalents, beginning of year 75,958,979
Cash and cash equivalents, end of year 106,569,501$
Reconciliation of operating income to net cash provided by operating activities:
Operating income 58,843,112$
Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation and amortization 113,887,828
Bad debt expense (net recoveries) (45,354)
(Increase)/decrease in operating assets:
Accounts receivable (1,838,656)
Inventories (920,236)
Due from other governmental agency 465,886
Prepaid expenses (506,972)
Increase/(decrease) in operating liabilities:
Accounts payable 3,728,708
Accrued expenses (198,810)
Due to other governmental agency 34,613,820
Net pension/OPEB liabilities (36,840,589)
Compensated absences 941,645
Claims and judgments (3,119,605)
Net cash provided by operating activities 169,010,777$
Noncash activities:
Unrealized gain on the fair value of investments 16,701,780$
Capital assets acquired through accounts payable (4,171,751)
Capital facilities capacity charges acquired 2,541,233
See Accompanying Notes to Basic Financial Statements.
14
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
15
(1) Summary of Significant Accounting Policies
Reporting Entity The Orange County Sanitation District (OCSD) is a public agency which owns and operates certain
wastewater facilities in order to provide regional wastewater collection, treatment, and disposal
services to approximately 2.6 million people in the northern and central portion of the County of
Orange, California. OCSD is overseen by a Board comprised of directors appointed by the agencies
and cities which are serviced by OCSD.
OCSD’s service area was originally formed in 1954 pursuant to the County Sanitation District Act
and consisted of seven independent special districts. Two additional districts were formed and
additional service areas were added in 1985 and 1986. These special districts were jointly
responsible for the treatment and disposal facilities which they each used. In April of 1998, the Board
of Supervisors of Orange County passed Resolution 98-140 approving the consolidation of the
existing nine special districts into a new, single sanitation district. This action was taken in order to
simplify the governance structures, reduce the size of OCSD’s Board of Directors, ease
administrative processes, streamline decision-making and consolidate accounting and auditing
processes. Pursuant to the Resolution and Government Code Section 57500, the predecessor
special districts transferred and assigned all of their powers, rights, duties, obligations, functions and
properties to OCSD, including all assets, liabilities, and equity.
Effective July 1, 1998, the organization became known as the Orange County Sanitation District.
The boundaries of one of the previous districts, now known as Revenue Area No. 14, have been
maintained separately because their use of OCSD’s collection, treatment, and disposal system is
funded by the Irvine Ranch Water District (IRWD). The boundaries of the other eight districts have
been consolidated and are collectively referred to as the Consolidated Revenue Area. OCSD utilizes
joint operating and capital outlay accounts to pay joint treatment, disposal, and construction costs.
These joint costs are allocated to each revenue area based on gallons of sewage flow. The
supplemental schedules and statements show internal segregations and are not intended to
represent separate funds for presentation as major or non-major funds in the basic financial
statements.
The accompanying financial statements present OCSD and its blended component unit, the Orange
County Sanitation District Financing Corporation (Corporation). The Corporation is a legally separate
entity although in substance it is considered to be part of OCSD’s operations. OCSD is considered
to be financially accountable for the Corporation which is governed by a board comprised entirely of
OCSD’s board members. There is no requirement for separate financial statements of the
Corporation; consequently, separate financial statements for the Corporation are not prepared. The
Corporation had no financial activity during the fiscal year ended June 30, 2020, other than principal
and interest payments on outstanding certificates of participation/ revenue obligations and notes
(see Note 4).
OCSD is independent of and overlaps other formal political jurisdictions. There are many
governmental entities, including the County of Orange, that operate within OCSD’s jurisdiction;
however, financial information for these entities is not included in the accompanying financial
statements in accordance with the Governmental Accounting Standards Board (GASB).
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
16
Measurement Focus and Basis of Accounting OCSD operates as an enterprise activity. Enterprise funds account for operations that are financed
and operated in a manner similar to private business enterprises, where the intent of the Board of
Directors is that the costs (expenses, including depreciation and amortization) of providing services
to the general public on a continuing basis be financed or recovered primarily through user charges.
Basis of accounting refers to when revenues and expenses are recognized in the accounts and
reported in the financial statements. Enterprise funds are accounted for on the flow of economic
resources measurement focus and use the accrual basis of accounting, whereby revenues are
recognized when earned and expenses are recognized when incurred, regardless of the timing of
related cash flows.
The accounting policies of OCSD conform to accounting principles generally accepted in the United
States of America (GAAP) as applicable to governments. The GASB is the accepted standard-
setting body for establishing governmental accounting and financial reporting principles in the United
States.
Operating Plans Each year, OCSD staff prepares an annual operating plan which is adopted by the Board of
Directors. The annual operating plan is used to serve as a basis for monitoring financial progress,
estimating the levy and collection of taxes, and determining future service charge rates. During the
year, these plans may be amended as circumstances or levels of operation dictate.
Cash and Cash Equivalents
Investments with original maturities of three months or less when purchased and money market
mutual funds and external investment pools that can be withdrawn on demand are considered to be
cash equivalents.
Investments
Except for certain investments in monies held by fiscal agents as disclosed in Note 2, section “Fair
Value of Investments”, all other investments are stated at fair value (the price that would be received
to sell an asset in an orderly transaction between market participants acting in their economic best
interest at the measurement date). Changes in fair value that occur during the fiscal year are
reported as part of investment and interest income. Investment and interest income includes interest
earnings and realized and unrealized gains or losses in fair value. Investment and interest income
are recorded as revenues and receivables when declared and realized gains or losses are recorded
when the investment is sold.
Accounts Receivable Accounts receivable is reported net of the allowance for uncollectible receivables. Uncollectible
receivables were $304,619 at June 30, 2020. Unbilled sewer services through June 30, 2020 are
recorded as revenue and receivables. Management determines the allowance for uncollectible
receivables by evaluating individual accounts receivable at least one year past due and considering
a customer’s financial condition, credit history and current economic conditions. Accounts
receivables are written off when deemed uncollectible. Recoveries of accounts receivables
previously written off are recorded when received.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
17
Inventories Inventories, which are held for consumption and not resale, are stated at cost on a weighted-average
basis and are expensed when used.
Capital Assets
Outlays for property, plant, equipment, and construction in progress are recorded in the revenue
area which will use the asset. Such outlays may be for individual revenue area assets or for a
revenue area’s share of joint assets.
Capital assets of property, plant, and equipment are defined as assets with an initial, individual cost
of more than $5,000 and an estimated useful life of at least three years. Such assets are recorded
at cost, except for donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement, which are recorded at acquisition value at the time
received. Cost includes labor; materials; outside services; vehicle and equipment usage; other
ancillary costs consisting of direct charges such as engineering, purchasing, supervision, or fringe
benefits. Interest costs, net of interest earnings, have been capitalized on projects prior to fiscal year
2017-2018. Commencing with fiscal year 2017-2018, OCSD early implemented GASB Statement
No. 89, where interest costs incurred before the end of the construction period are no longer
capitalized.
Depreciation of plant and equipment is provided for over the estimated useful lives of the assets
using the straight-line method in accordance with generally accepted accounting principles. OCSD
also considers the guidelines of estimated useful lives as recommended in the State of California
Controller’s Uniform System of Accounts for Waste Disposal Districts, which range from 3 to 75
years. The following are estimated useful lives for major classes of depreciable assets: Sewage
collection facilities – 50 years, Sewage treatment facilities – 40 years, Sewage disposal facilities –
40 years, General plant and administrative structures – 40 years, and other General plant and
administrative facilities and equipment – 4 to 25 years.
Restricted Assets
Certain assets are classified as restricted because their use is limited by applicable debt covenants.
Specifically, the assets are restricted for installment payments due on certificates of participation
and revenue obligations or are maintained by a trustee as a reserve requirement for the certificates
of participation and revenue obligations. When both restricted and unrestricted resources are
available for use, it is OCSD’s policy to use restricted resources first, then unrestricted resources as
they are needed.
Amortization Amortization of the excess purchase price over the book value of assets acquired is provided using
the straight-line method over an estimated useful life of 30 years.
Premiums and discounts on certificate anticipation notes and wastewater refunding revenue
obligations are amortized to interest expense over the respective terms of the installment obligations
based on the effective interest method (Note 4).
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
18
Deferred Charges on Defeasances For advance refundings resulting in defeasance of debt, the difference between the reacquisition
price and the net carrying amount of the old debt (i.e. deferred charges) is reported as a deferred
outflow of resources and amortized to interest expense based on the effective interest method over
the remaining life of the old debt or the life of the new debt, whichever is shorter. OCSD’s deferred
charges on the refunding debt at June 30, 2020 are $25,162,613.
Net Position Net position represents the total of assets and deferred outflows of resources less liabilities and
deferred inflows of resources, and is classified into two categories:
Net Investment in Capital Assets – This amount consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowings used for the acquisition,
construction or improvement of those assets and excludes unspent debt proceeds. Deferred
outflows of resources that are attributable to the acquisition, construction or improvement of those
assets or related debt also are included in this component of net position.
Unrestricted – This amount represents the residual of amounts not classified in the other category
and represents the net position available for OCSD.
Compensated Absences OCSD’s employees, other than operations and maintenance personnel, are granted vacation and
sick leave in varying amounts with maximum accumulations of 200 hours and 560 hours for vacation
and sick days earned but unused, respectively. Operations and maintenance personnel accrue
between 80 and 250 personal leave hours per year depending on years of service, which can be
accumulated up to a maximum of 440 hours. All accrued and unused vacation or personal leave is
paid to the employee upon termination or retirement of the employee. Accrued and unused sick
leave is paid to the employee at a percentage rate based on years of service, as stated in the
Memorandum of Understanding for each bargaining group.
Vacation and sick leave benefits and personal days are recorded as an expense and liability when
earned by eligible employees. The distribution between current and long-term portions of the liability
is based on historical trends.
Claims and Judgments OCSD records estimated losses when it is probable that a claim liability has been incurred and when
the amount of the loss can be reasonably estimated. Claims payable includes an estimate for
incurred but unreported claims. The distribution between current and long-term portions of the
liability is based on historical trends.
Pensions
OCSD has two defined benefit pension plans for retirees: the plan maintained through and by the
Orange County Employees Retirement System (OCERS) and the Additional Retiree Benefit Account
(ARBA) administered directly by OCSD. For purposes of measuring the net pension liability, deferred
outflows of resources related to pensions, deferred inflows of resources related to pensions, and
pension expense, information about the fiduciary net position of OCSD’s cost sharing multiple-
employer plan with the OCERS plan (Plan) and additions to/deductions from the Plan’s fiduciary net
position have been determined on the same basis as they are reported by OCERS. Benefit
payments (including refunds of employee contributions) are recognized when due and payable in
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
19
accordance with the benefit terms. Investments are reported at fair value. A deferred outflow of
resources and deferred inflow of resources related to pensions result from changes in the
components of the net pension liability and are applicable to a future reporting period (Note 5).
Property Taxes
The County is permitted by State law (Proposition 13) to levy taxes at one percent of full market
value (at time of purchase) and can increase the assessed value no more than two percent per year.
OCSD receives a share of this basic levy, proportionate to what was received in the 1976 to 1978
period.
Property taxes are determined annually and attached as enforceable liens on real property as of
January 1 and are payable in two installments which become delinquent after December 10 and
April 10. The County bills and collects the property taxes and remits them to OCSD in installments
during the year. Property tax revenues are recognized when levied. The Board of Directors has
designated property tax revenue to be used for the annual debt service requirements prior to being
used as funding for current operations.
Capital Facilities Capacity Charges Capital facilities capacity charges represent fees imposed at the time a structure is newly connected
to OCSD’s system, directly or indirectly, or an existing structure or category of use is increased. This
charge is to pay for OCSD facilities in existence at the time the charge is imposed or to pay for new
facilities to be constructed that are of benefit to the property being charged.
Operating and Non-operating Revenues and Expenses
Operating revenues and expenses result from collecting, treating, and disposing of wastewater and
inspection and permitting services. OCSD’s operating revenues consist of charges to customers for
the services provided. Operating expenses include the cost of providing these services,
administrative expenses, and depreciation and amortization expenses. All revenues and expenses
not meeting these definitions and which are not capital in nature are reported as non-operating
revenues and expenses.
Self-Insurance Plans For the year ended June 30, 2020, OCSD was self-insured for portions of workers’ compensation,
property damage, and general liability. The self-insurance portion of the workers’ compensation
exposure is the $1,000,000 deductible per occurrence under the outside excess insurance coverage
to statutory levels. The self-insurance portion of the property damage exposure covering fire and
other perils is the $500,000 per occurrence deductible (for most perils) under the outside excess
property insurance coverage to $1 billion. The self-insurance portion of the property damage
exposure covering flood is the $250,000 per occurrence deductible with outside excess property
insurance coverage to $300 million. The self-insurance portion of the property damage exposure
covering earthquake is the 5% per structure, minimum $5,000,000 deductible with outside excess
insurance coverage to $25 million on covered structures. OCSD has insured a number of key
structures against the peril of earthquake, all other structures are completely self-insured. The self-
insurance portion of the boiler & machinery exposure is the deductible ranging from $25,000 to
$350,000 under the outside excess boiler & machinery insurance coverage to $100 million per
occurrence combined limit. The self-insurance portion of the general liability exposure is the
$500,000 per occurrence deductible under the outside excess liability coverage to $40 million per
occurrence and aggregate. The self-insurance portion of the pollution liability exposure is the
$75,000 per loss deductible under the outside pollution liability insurance coverage to $10 million.
There were no significant changes in insurance coverage during fiscal year ended June 30, 2020.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
20
During the past three fiscal years there have been no settlements in excess of covered amounts.
Claims against OCSD are processed by General Counsel or an outside claim administrator. These
claims are charged to claims expense based on estimated or known amounts which will ultimately
be paid. Claims incurred but not yet reported have been considered in determining the accrual for
loss contingencies. Workers’ compensation reserves are actuarially determined and general liability
estimated loss accruals are estimated using past experience adjusted for current trends and any
other factors that would modify past experience. The estimate of the claims liability also includes
any amounts for incremental and nonincremental claim adjustment expenses. OCSD management
believes that there are no unrecorded claims as of June 30, 2020 that would materially affect the
financial position of OCSD.
Deferred Compensation Plan OCSD offers its employees a deferred compensation plan established in accordance with Internal
Revenue Code Section 457. The plan permits all employees of OCSD to defer a portion of their
salary until future years. The amount deferred is not available to employees until termination,
retirement, death or for unforeseeable emergency. The assets of the plan are held in trust for the
exclusive benefit of the participants and their beneficiaries. Since the plan assets are administered
by an outside party and are not subject to the claims of OCSD’s general creditors, in accordance
with GASB Statement 32, the plan’s assets and liabilities are not included within OCSD’s financial
statements.
New Accounting Pronouncements
OCSD early implemented GASB Statement No. 84, Fiduciary Activities and GASB Statement No.
90, Majority Equity Interests for the fiscal year ended June 30, 2020 by adopting GASB Statement
No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance, which postponed
various GASB pronouncements by at least one year. Implementation of these Standards did not
materially impact OCSD’s financial statements.
The following GASB Statements have been issued but are not yet effective for the year ended June
30, 2020. OCSD is assessing what financial statement impact, if any, these Statements will have:
GASB Statement No. 87, Leases, effective for the fiscal year ending June 30, 2022.
GASB Statement No. 92, Omnibus 2020, effective upon issuance for the requirements related
to the effective date of GASB Statement No. 87 and Implementation Guide 2019-3, reinsurance
recoveries, and terminology used to refer to derivative instruments. The other requirements will
be effective for the fiscal year ending June 30, 2022.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangements, effective for the fiscal year ending June 30, 2023.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements, effective
for the fiscal year ending June 30, 2023.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an
amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement
No. 32, effective for the fiscal year ending June 30, 2022.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
21
(2) Cash and Investments
Cash and investments as of June 30, 2020 are classified within the accompanying Statement of Net
Position as follows:
Statement of Net Position:
Current, Unrestricted:
Cash and cash equivalents 106,562,503$
Investments 774,218,874
Subtotal - current, unrestricted 880,781,377
Restricted:
Cash and cash equivalents 6,998
Total cash and cash equivalents and investments 880,788,375$
Cash and investments consist of the following as of June 30, 2020:
Cash on hand 6,500$
Deposits with financial institutions 9,056,262
Managed portfolio - cash and investments 871,718,615
Subtotal - unrestricted cash and investments 880,781,377
Monies held by trustees:
Cash and cash equivalents 6,998
Grand total cash and investments 880,788,375$
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
22
Investments Authorized by the California Government Code and OCSD’s Investment Policy The following table identifies the investment types that are authorized by the California Government
Code and OCSD’s investment policy. This table and the subsequent tables identify certain provisions
of either the California Government Code or OCSD’s investment policy (whichever is more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
Authorized Maximum
by OCSD's Maximum Investment
Investment Type - Authorized by Investment Maximum Percentage in a Single
the California Government Code Policy? Maturity (1 ) (3)of Portfolio (1 )Issuer (1 )
Local Agency Bonds Yes 5 years 10% (2) 5% (2)
U.S. Treasury Obligations Yes 5 years No limit No limit
California State Treasury Obligations Yes 5 years No limit No limit
U.S. Agency Securities Yes 5 years No limit 20% (2)
Banker's Acceptances Yes 180 days 40% 5% (2)
Commercial Paper Yes 270 days 25% 5% (2)
Negotiable Certificates of Deposit Yes 5 years 30% 5% (2)
Repurchase Agreements Yes 1 year 20% (2) 5% (2)
Reverse Repurchase Agreements Yes 90 days (2) 5% (2) 5% (2)
Corporate Medium-Term Notes Yes 5 years 30% 5% (2)
Mutual Funds Yes N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 20%
Mortgage Pass-Through Securities/
CMO/Asset-Backed Securities Yes 5 years 20% 5% (2)
County Investment Pools Yes N/A 15% (2) 15% (2)
Local Agency Investment Fund (LAIF) Yes N/A 15% (2) 15% (2)
Supranational Obligations Yes 5 years 30% 30%
Notes
(1 ) Restrictions are in accordance with the California Government Code unless indicated otherwise.
(2) The restriction is in accordance with OCSD's Investment Policy which is more restrictive than the California Government Code.
(3) As allowed by California Government Code Section 53601, the Board of Directors has adopted a policy of a maximum
maturity of 5 years for investments purchased by OCSD's external money manager for the long-term investment portfolio.
The duration of the long-term investment portfolio can never exceed 60 months. Investments purchased for the short-term
portfolio are subject to the maturity restrictions noted in this table.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
23
Investments Authorized by Debt Agreements
The investment of debt proceeds held by trustees is governed by provisions of the debt covenant
agreements, rather than the general provisions of the California Government Code or OCSD’s
investment policy. The following table identifies the investment types that are authorized for
investments held by OCSD’s debt trustees. This table and the subsequent tables identify certain
provisions of the debt covenant agreements that address interest rate risk, credit risk, and
concentration of credit risk.
Maximum Maximum
Investment Type - Authorized by the Maximum Percentage Investment in a
Debt Covenant Agreement Maturity of Portfolio Single Issuer
State and Local Agency Bonds 5 years No limit No limit
U.S. Treasury Obligations 5 years No limit No limit
U.S. Agency Securities 5 years No limit No limit
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 40% 10%
Negotiable Certificates of Deposit 5 years 30% 30%
Repurchase Agreements 1 year No limit No limit
Corporate Medium-Term Notes 5 years 30% 30%
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 20%
Local Agency Investment Fund (LAIF) N/A No limit No limit
Guaranteed Investment Contracts N/A No limit No limit
Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer an investment has before maturity, the greater the sensitivity
of its fair value to changes in market interest rates. One of the ways that OCSD manages its exposure
to interest rate risk is by purchasing a combination of shorter term and longer term investments and
by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time, as necessary to provide the cash flow and liquidity needed for operations.
OCSD monitors the interest rate risk inherent in its managed portfolio by measuring the modified
duration of its portfolio. The duration of monies held for shorter term purposes is recommended by
OCSD’s Treasurer and is based on OCSD’s cash flow requirements in meeting current operating
and capital needs. The average duration of monies invested for shorter term purposes may never
exceed 180 days. The duration of monies held for longer term purposes is recommended annually
by OCSD’s Treasurer and is based on OCSD’s five-year cash flow forecast. The average duration
may not exceed 120 percent nor be less than 80 percent of the recommended duration. The average
duration of monies invested for longer term purposes may never exceed 60 months. There is no
stated maximum maturity for the Money Market Mutual Funds. The money market mutual funds for
BlackRock Institutional Fund and First American Government Obligations Fund are daily liquid funds
available on demand.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
24
Following is a table which summarizes OCSD’s managed portfolio investments by purpose with the
modified duration as of June 30, 2020.
Modified Modified
Duration Duration
Investment Type Fair Value (in years)(in months)
Short-Term Portfolio:
U.S. Treasury Bills 99,428,600$ 0.441 5.29
Local Agency Investment Fund 72,372,513 0.522 6.26
U.S. Treasury Notes 37,106,350 0.168 2.02
U.S. Agency Securities 23,290,773 0.253 3.03
Corporate Medium-Term Notes 7,817,805 0.556 6.68
Supranationals 6,008,330 0.292 3.50
Money Market Mutual Funds 3,643,086 - -
Certificates of Deposit 1,507,395 0.638 7.65
Short-term portfolio subtotal 251,174,852$ 0.401 4.81
Long-Term Portfolio:
U.S. Treasury Notes 191,364,585$ 2.840 34.08
U.S. Agency Securities* 187,763,073 2.833 33.99
Corporate Medium-Term Notes 144,063,379 2.483 29.79
Supranationals 36,932,396 1.967 23.61
Asset Backed Securities/CMO* 30,260,229 0.804 9.65
U.S. Treasury Inflation-Protected Securities (TIPS) 11,731,592 4.049 48.59
U.S. Treasury Bills 9,997,900 0.153 1.84
Money Market Mutual Funds 6,486,692 - -
Taxable Municipal Bonds 1,829,068 0.453 5.44
U.S. Govt. Backed Mortgage Pools (GNMA)* 114,849 3.281 39.37
Long-term portfolio subtotal 620,543,763$ 2.547 30.56
Total Portfolio 871,718,615$
* Includes highly sensitive securities.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
25
OCSD monitors the interest rate risk inherent in its other investments using specific identification of
the investments. Following is a table of these investments all held by trustees, as of June 30, 2020.
Fair Value Maturities
Cash equivalents held by fiscal agents:
Money Market Mutual Funds:
First American Government Obligations Fund 5,456$ 43 days
BlackRock Institutional Funds 1,542 42 days
Total fair value of investments held by fiscal agents 6,998$
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations
OCSD’s investments (including investments held by trustees) include the following investments that
are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the
information provided above):
Mortgage-backed securities: These securities are subject to early payment in a period of
declining interest rates. The resulting reduction in expected total cash flows affects the fair
value of these securities, making them highly sensitive to change in interest rates. At fiscal year
end, the fair value of investments in mortgage-backed securities totaled $2,099,218 including
$981,882 of mortgage pass-through securities, $1,002,487 of U.S. agency securities, and
$114,849 of U.S. government backed mortgage pools.
Fair Value of Investments
OCSD measures and records its investments using fair value measurement guidelines established
by generally accepted accounting principles. These guidelines recognize a three-tiered fair value
hierarchy, as follows:
Level 1: Quoted prices for identical investments in active markets;
Level 2: Observable inputs other than quoted market prices; and
Level 3: Unobservable inputs.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
26
At June 30, 2020, OCSD had the following fair value measurements for its managed investment
portfolio:
Quoted Prices
in Active Significant Other
Markets for Observable Unobservable
Identical Assets Inputs Inputs
Investment Type Fair Value Level 1 Level 2 Level 3
Investments in Short-Term Portfolio:
U.S. Treasury Bills 99,428,600$ -$ 99,428,600$ -$
U.S. Treasury Notes 37,106,350 37,106,350 -
U.S. Agency Securities 23,290,773 - 23,290,773 -
Corporate Medium-term Notes 7,817,805 - 7,817,805 -
Supranationals 6,008,330 - 6,008,330 -
Certificates of Deposits 1,507,395 - 1,507,395 -
Investments in Long-Term Portfolio:
U.S. Treasury Notes 191,364,585 - 191,364,585 -
U.S. Agency Securities 187,763,073 - 187,763,073 -
Corporate Medium-term Notes 144,063,379 - 144,063,379 -
Supranationals 36,932,396 - 36,932,396 -
Asset Backed Securities/CMO 30,260,229 - 30,260,229 -
US Treasury Inflation Protected Securities (TIPS) 11,731,592 - 11,731,592 -
U.S. Treasury Bills 9,997,900 - 9,997,900 -
Taxable Municipal Bonds 1,829,068 - 1,829,068 -
U.S. Government Backed Mortgage Pools 114,849 - 114,849 -
Fair Value Hierarchy Totals -$ 789,216,324$ -$
Investments Not Subject To Fair Value Hierarchy:
Local Agency Investment Fund (LAIF)* 72,372,513
Money Market Mutual Funds* 3,643,086
Money Market Mutual Funds** 6,486,692
Total Portfolio 871,718,615$
* Invested in Short-Term Portfolio
** Invested in Long-Term Portfolio
US Bank is the custodial bank for all of OCSD’s investments shown above in the managed portfolio,
except for LAIF. Investments classified as Level 2 are valued using US Bank’s fair value hierarchy
matrix based on the asset type classification. The fair value hierarchy level matrix is based on
discussions with (1) pricing vendors, (2) broker/dealers, (3) investment managers, (4) industry
groups, and (5) independent accounting firms.
Monies held by trustees (fiscal agents) that are invested in money market mutual funds are reported
at carrying cost.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. The following table presents the minimum rating as required by the
California Government Code, OCSD’s investment policy, or debt agreements, and the actual rating
as of year-end for each investment type.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
27
Investments with no legal minimum rating & no required disclosure:
U.S. Treasury Obligations 349,629,027$
U.S. Agency Securities - GNMA 114,849
Subtotal 349,743,876$
Investments with no legal minimum rating:
U.S. Agency Securities (other than GNMA):
Rating of Aaa (Moody's)12,924,736
Rating of AA+ (Standard & Poor's)174,838,337
Rating of P-1 (Moody's)23,290,773
Municipal Bonds:
Rating of Aa1 (Moody's)1,415,764
Rating of Aa3 (Moody's)413,304
Certificates of Deposits;
Rating of P-1 (Moody's)1,507,395
Local Agency Investment Fund (LAIF):
Not rated 72,372,513
Subtotal 286,762,822
Investments with a legal minimum rating (or its equivalent) of A:
Corporate Medium-Term Notes:
Rating of Aa1 (Moody's) 8,454,859
Rating of AA+ (Fitch) 3,086,686
Rating of Aa2 (Moody's) 10,511,356
Rating of AA (Standard & Poor's)3,034,470
Rating of AA- (Standard & Poor's)7,238,623
Rating of Aa3 (Moody's)1,107,750
Rating of A1 (Moody's)17,339,227
Rating of A+ (Fitch)6,843,320
Rating of A2 (Moody's)38,386,511
Rating of A (Standard & Poor's)8,450,765
Rating of A- (Standard & Poor's)*30,064,684
Rating of A3 (Moody's)*14,407,785
Rating of BBB+ (Standard & Poor's)*2,948,428
Not rated 6,720
Subtotal 151,881,184
Investments with a legal minimum rating (or its equivalent) of AA:
Asset Backed Securities/CMO:
Rating of Aaa (Moody's) 25,482,093
Rating of AAA (Standard & Poor's) 3,778,933
Rating of AA+ (Standard and Poor's) 880,203
Rating of BBB (Fitch)*107,618
Rating of B (Standard & Poor's)*11,382
Supranational Obligations:
Rating of Aaa (Moody's) 37,941,976
Rating of P-1 (Moody's)4,998,750
Subtotal 73,200,955
Investments with a legal minimum rating (or its equivalent) of AAA:
Money Market Mutual Funds:
Rating of Aaa (Moody's)10,129,778
Invested with fiscal agents:
Rating of Aaa-mf (Moody's) 6,998
Subtotal 10,136,776
Total 871,725,613$
* Investment was in compliance with legal requirements at the time it was purchased.
Fair ValueInvestment Type and the Lowest Rating Reported at Year End
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
28
Concentration of Credit Risk Limitations on the amount that OCSD is allowed to invest in any one issuer have been identified
previously in the section “Investments Authorized by the California Government Code and OCSD’s
Investment Policy” and in the section “Investments Authorized by Debt Agreements.” OCSD follows
whichever guideline is the most restrictive.
As of June 30, 2020, OCSD had the following investments representing five percent or more of total
investments:
Name of Issuer Fair Value % of Total
Federal Home Loan Bank System (FHLB) 77,837,049$ 8.93%
Federal National Mortgage Association (FNMA) 79,922,212$ 9.17%
Custodial Credit Risk Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover collateral
securities that are in the possession of an outside party. The California Government Code and
OCSD’s investment policy contain legal requirements that limit the exposure to custodial credit risk
for deposits as follows: a financial institution must secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a depository
regulated under state law (unless so waived by the governmental unit). The fair value of the pledged
securities in the collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure deposits by pledging first trust
deed mortgage notes having a value of 150% of the secured public deposits.
Custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g.,
broker-dealer) to a transaction, a government will not be able to recover the value of its investment
or collateral securities that are in the possession of another party. The California Government Code
and OCSD’s investment policy do not contain legal or policy requirements that would limit the
exposure to custodial credit risk for investments. As of June 30, 2020, in accordance with OCSD’s
investment policy, none of OCSD’s investments were held with a counterparty. All of OCSD’s
investments were held with an independent third party custodian bank registered in the name of
OCSD. OCSD uses US Bank as a third party custody and safekeeping service for its investment
securities.
Investment in State Investment Pool OCSD is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The fair value of OCSD’s investment in this pool is reported in the accompanying financial
statements at amounts based upon OCSD’s pro-rata share of the fair value provided by LAIF for the
entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for
withdrawal is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Included in LAIF’s investment portfolio are mortgage-backed securities, other
asset-backed securities, loans to certain state funds, securities with interest rates that vary according
to changes in rates greater than a one-for-one basis, and structured notes. The amounts invested in
LAIF are recorded as cash and cash equivalents at June 30, 2020.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
29
(3) Capital Assets
Capital asset activity for the year ended June 30, 2020 is as follows:
Beginning Ending
Balance at Additions / Deletions / Balance at
July 1, 2019 Transfers Transfers June 30, 2020
Capital assets not depreciated:
Cost:
Land 41,967,355$ -$ -$ 41,967,355$
Construction in progress 521,831,634 118,173,084 (276,073,883) 363,930,835
Total nondepreciable assets 563,798,989 118,173,084 (276,073,883) 405,898,190
Depreciable capital assets:
Cost:
Sewage collection facilities 886,790,503 6,184,550 - 892,975,053
Sewage treatment facilities 2,478,726,934 267,623,249 (22,366) 2,746,327,817
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 2,872,831 (892,849) 259,148,327
Excess purchase price over book
value on acquired assets 19,979,000 - - 19,979,000
Subtotal 3,743,100,034 276,680,630 (915,215) 4,018,865,449
Accumulated depreciation:
Sewage collection facilities (378,625,640) (19,669,198) - (398,294,838)
Sewage treatment facilities (993,236,473) (85,105,837) 22,366 (1,078,319,944)
Effluent disposal facilities (65,276,356) (1,456,254) - (66,732,610)
Solids disposal facilities (3,185,408) (9,718) - (3,195,126)
General and administrative facilities (177,287,240) (7,646,821) 892,849 (184,041,212)
Excess purchase price over book
value on acquired assets (19,979,000) - - (19,979,000)
Subtotal (1,637,590,117) (113,887,828) 915,215 (1,750,562,730)
Net depreciable assets 2,105,509,917 162,792,802 - 2,268,302,719
Net capital assets 2,669,308,906$ 280,965,886$ (276,073,883)$ 2,674,200,909$
For the fiscal year ended June 30, 2020, capital asset additions of $276.7 million in depreciable capital assets are $0.6
million more than the $276.1 million transferred from Construction in Progress due to capital equipment purchases of $1.8
million, partially offset by $1.2 million of prior capital project expenses that were written off as expense.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
30
(4) Long-Term Liabilities
The following is a summary of the changes in long-term liabilities for the year ended June 30, 2020:
Beginning Ending Due w ithin Long-term
Balance, July 1 Additions Deletions Balance, June 30 one year amount
Compensated absences 8,022,669$ 7,620,959$ (6,679,314)$ 8,964,314$ 7,749,164$ 1,215,150$
Claims and judgments 6,860,326 405,346 (3,524,951) 3,740,721 600,560 3,140,161
Certificates of participation,
revenue obligations & notes 972,780,000 - (32,730,000) 940,050,000 30,430,000 909,620,000
Unamortized premium 77,722,373 - (13,556,472) 64,165,901 10,670,368 53,495,533
Totals 1,065,385,368$ 8,026,305$ (56,490,737)$ 1,016,920,936$ 49,450,092$ 967,470,844$
Compensated Absences
OCSD’s policies related to compensated absences are described in Note 1. OCSD’s liability at June
30, 2020 is $8,964,314 with an estimated $7,749,164 to be paid or used within the next fiscal year.
Claims and Judgments Payable OCSD is self-insured in a number of areas as described in Note 1. The following is a summary of
the change in claims and judgments payable for the years ended June 30, 2020 and 2019:
2019-20 2018-19
Claims and judgments payable at July 1 6,860,326$ 4,436,087$
Claims incurred during the fiscal year 405,346 2,820,028
Changes in estimates for claims of prior years (3,122,401) -
Payments on claims during the fiscal year (402,550) (395,789)
Claims and judgments payable at June 30 3,740,721 6,860,326
Less: current portion (600,560) (673,070)
Total long-term claims and judgments payable 3,140,161$ 6,187,256$
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
31
Certificates of Participation/ Revenue Obligations and Notes OCSD issues certificates of participation, revenue obligations and notes in order to finance
construction of the treatment facilities. Each issuance represents a direct and proportionate interest
in the semi-annual interest payments. Installment payments for the issues are payable from any
source of lawfully available funds of OCSD. Certificates of participation, revenue obligations, and
notes at June 30, 2020 are summarized as follows:
Amount
2010A wastewater revenue obligations 80,000,000$
2010C wastewater revenue obligations 157,000,000
2011A wastewater refunding revenue obligations 75,370,000
2012A wastewater refunding revenue obligations 100,645,000
2012B wastewater refunding revenue obligations 25,560,000
2014A wastewater refunding revenue obligations 63,930,000
2015A wastewater refunding revenue obligations 127,510,000
2016A wastewater refunding revenue obligations 141,465,000
2017A wastewater refunding revenue obligations 66,370,000
2018A revenue refunding certificate anticipation notes 102,200,000
Total certificates of participation, revenue obligations, and notes 940,050,000$
Outstanding Certificates of Participation / Revenue Obligations and Notes
All of the outstanding debt of OCSD is senior lien debt with rate covenants that require a minimum
coverage ratio of 1.25. The minimum coverage ratio is the ratio of net annual revenues available for
debt service requirements to total annual debt service requirements. As of June 30, 2020, the
coverage ratio for senior lien debt was 4.24.
May 2010 Wastewater Revenue Obligations, Series 2010A On May 18, 2010, OCSD completed the sale of $80,000,000 of wastewater revenue obligations
under the federally taxable Build America Bonds program. The obligations were issued to
finance and to reimburse OCSD for the acquisition, construction, and installation of additional
improvements made to the wastewater system. The stated interest rate on the obligations is
fixed and will range from 5.56 percent to 5.58 percent, however, in accordance with their
designation as Build America Bonds, OCSD expects to receive a cash subsidy from the United
States Treasury equal to 35 percent of the interest payable with respect to these revenue
obligations. The expected net interest rate on the obligations is fixed and will range from 3.614
percent to 3.627 percent. Annual principal payments are due on February 1, beginning February
1, 2034 through February 1, 2040.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
32
December 2010 Wastewater Revenue Obligations, Series 2010C On December 8, 2010, OCSD completed the sale of $157,000,000 of wastewater revenue
obligations under the federally taxable Build America Bonds program. The obligations were
issued to finance and to reimburse OCSD for the acquisition, construction, and installation of
additional improvements made to the wastewater system. The stated interest rate on the
obligations is fixed and will range from 6.35 percent to 6.40 percent, however, in accordance
with their designation as Build America Bonds, OCSD expects to receive a cash subsidy from
the United States Treasury equal to 35 percent of the interest payable with respect to these
revenue obligations. The expected net interest rate on the obligations is fixed and will range
from 4.1275 percent to 4.16 percent. Annual principal payments are due on February 1,
beginning February 1, 2031 through February 1, 2044.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
October 2011 Wastewater Refunding Revenue Obligations, Series 2011A On October 3, 2011, OCSD completed the sale of $147,595,000 of wastewater refunding
revenue obligations. The obligations were issued to refund $89,800,000 of the outstanding
principal balance of 2000 Series A and B refunding certificates of participation, and $83,320,000
of the outstanding principal balance of 2003 certificates of participation. The stated interest rate
on the obligations is fixed and will range from 3 percent to 5 percent. Annual principal payments
are due on August 1 and February 1, beginning August 1, 2012 through February 1, 2026.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
March 2012 Wastewater Refunding Revenue Obligations, Series 2012A On March 22, 2012, OCSD completed the sale of $100,645,000 of wastewater refunding
revenue obligations. The obligations were issued to refund the $108,180,000 outstanding
principal balance of the 2003 certificates of participation. The stated interest rate on the
obligations is fixed and will range from 3 percent to 4 percent. Annual principal payments are
due on February 1, beginning February 1, 2031 through February 1, 2033.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
August 2012 Wastewater Refunding Revenue Obligations, Series 2012B
On August 16, 2012, OCSD completed the sale of $66,395,000 of wastewater refunding
revenue obligations. The obligations were issued to refund the remaining $91,900,000
outstanding principal balance of the Series 2000A and 2000B refunding certificates of
participation. The stated interest rate on the obligations is fixed and will range from 3 to 5
percent. Annual principal payments are due on February 1, beginning February 1, 2019 through
February 1, 2026.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
33
August 2014 Wastewater Refunding Revenue Obligations, Series 2014A On August 7, 2014, OCSD completed the sale of $85,090,000 of wastewater refunding revenue
obligations. The obligations were issued to partially refund an amount of $93,930,000 of the
outstanding principal balance of 2007 Series B certificates of participation. The stated interest
rate on the obligations is fixed at 5 percent. Annual principal payments are due on February 1,
beginning February 1, 2018 through February 1, 2027.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
February 2015 Wastewater Refunding Revenue Obligations, Series 2015A
On February 12, 2015, OCSD completed the sale of $127,510,000 of wastewater refunding
revenue obligations. The obligations were issued to partially refund an amount of $152,990,000
of the outstanding principal balance of 2007 Series B certificates of participation. The stated
interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on
February 1, beginning February 1, 2028 through February 1, 2037.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
March 2016 Wastewater Refunding Revenue Obligations, Series 2016A On March 30, 2016, OCSD completed the sale of $145,880,000 of wastewater refunding
revenue obligations. The obligations were issued to partially refund an amount of $162,780,000
of the outstanding principal balance of 2009 Series A certificates of participation. The stated
interest rate on the obligations is fixed and will range from 4 to 5 percent. Annual principal
payments are due on February 1, beginning February 1, 2020 through February 1, 2039.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
February 2017 Wastewater Refunding Revenue Obligations, Series 2017A
On February 1, 2017, OCSD completed the sale of $66,370,000 of wastewater refunding
revenue obligations. The obligations were issued to refund $91,620,000 of the outstanding
principal balance of 2007 Series A certificates of participation. The stated interest rate on the
obligations is fixed at 5 percent. Annual principal payments are due on February 1, beginning
February 1, 2021 through February 1, 2030.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
34
November 2018 Revenue Refunding Certificate Anticipation Notes, Series 2018A On November 1, 2018, OCSD completed the sale of $102,200,000 of revenue refunding
certificate anticipation notes. The notes were issued to fully refund the $109,875,000
outstanding principal balance of the 2016 Series B revenue refunding certificate anticipation
notes. The interest rate on the notes is fixed at 5 percent. The notes will mature on August 15,
2021. OCSD expects the principal and interest on the notes to be paid from proceeds of the
sale, prior to the maturity date, of a future series of certificates of participation, notes or other
obligations.
The trust agreement for the certificates does not require the establishment of a reserve.
Annual Amortization Requirements
The annual requirements to amortize all debt related to certificates of participation, revenue
obligations, and anticipation notes as of June 30, 2020, including the Revenue Refunding Certificate
Anticipation Notes, Series 2018A that currently matures in August 2021, are as follows:
Year Ending June 30,Principal Estimated Interest Total
2021 30,430,000$ 42,408,369$ 72,838,369$
2022 130,605,000 38,331,869 168,936,869
2023 29,805,000 34,371,619 64,176,619
2024 31,140,000 33,041,769 64,181,769
2025 32,655,000 31,517,369 64,172,369
2026-2030 184,345,000 133,803,696 318,148,696
2031-2035 262,945,000 83,325,554 346,270,554
2036-2040 192,615,000 30,174,855 222,789,855
2041-2044 45,510,000 3,534,752 49,044,752
Total 940,050,000$ 430,509,852$ 1,370,559,852$
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
35
(5) Pension Benefits
OCSD has two defined benefit pension plans for retirees: the plan maintained through and by the
Orange County Employees Retirement System (OCERS) and the Additional Retiree Benefit Account
(ARBA) administered directly by OCSD.
A summary of pension amounts for OCSD’s plans at June 30, 2020 is presented below:
OCERS ARBA Total
Net pension asset - OCERS 49,446,615$ -$ 49,446,615$
Deferred outflows - pensions 34,617,009 3,433,022 38,050,031
Total pension liability - ARBA - 21,434,655 21,434,655
Deferred inflows - pensions 31,219,913 1,940,397 33,160,310
Pension expenses 11,505,954 1,583,988 13,089,942
A. Orange County Employees Retirement System (OCERS)
Plan Description: All qualified permanent and probationary employees are eligible to participate in
OCSD’s Employee Pension Plan (Plan), which is a cost-sharing multiple employer defined benefit
pension plan administered by the Orange County Employees Retirement System (OCERS). OCERS
was established in 1945 under the provisions of the County Employees Retirement Law of 1937
(CERL). The Plan operates under the provisions of the CERL, the California Public Employees’
Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by
OCERS’ Board of Retirement. The Plan’s authority to establish and amend the benefit terms are set
by the CERL and PEPRA and may be amended by the California state legislature. The Plan is a tax
qualified plan under Section 401(a) of the Internal Revenue Code.
Benefits Provided: OCERS provides service retirement, disability, death and survivor benefits to
plan members who may be public employees or beneficiaries. The CERL and PEPRA establish
benefit terms. Benefits are based on years of credited service equal to one year of full time
employment. Members of plans B, G and H with ten years of service credit are entitled to receive a
retirement allowance beginning at age 50; members of plan U with 5 years of service are eligible to
receive a retirement allowance at age 52. Members attaining age 70 are eligible to retire regardless
of credited service.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
36
Benefits are determined by plan formula, age, years of service and final average salary (FAS) as
follows:
Plan G Plan H Plan B Plan U
Hire Date Prior to 9/21/79
After 9/21/79
Prof/Sup*: Before 10/1/10
OCEA*: Before 8/1/11
501*: Before 7/1/11
Prof/Sup: After 10/1/10
OCEA: After 8/1/11
501: After 7/1/11
All: Before 1/1/2013
On or after 1/1/2013
Final Average
Compensation (FAS)Highest 12 months Highest 36 months Highest 36 months Highest 36 months
Normal Retirement Age Age 55 Age 55 Age 57.5 Age 67
Age 70, any years Age 70, any years Age 70, any years Age 70, any years
Age 50, 10 years Age 50, 10 years Age 50, 10 years Age 52, 5 years
Benefit percent per
year of service for
normal retirement age
2.5% per year of FAS
for every year of
service credit
2.5% per year of
FAS for every year of
service credit
1.667% per year of
FAS for every year of
service credit
2.5% per year of
FAS for every year
of service credit
Benefit Adjustments Reduced before age
55
Reduced before age
55
Reduced before age
57.5
Reduced before age
67
FAS Limitation Internal Revenue Code
Section 401(a)(17)
Internal Revenue Code
Section 401(a)(17)
Internal Revenue Code
Section 401(a)(17)
Public Employees
Pension Reform Act
(PEPRA): 120% of
Social Security
wage base per year
* Prof/Sup: Professional and Supervisor employee groups, bargaining unit SPMG.
* OCEA: Administrative, Clerical, Engineering, and Technical Services employee groups, bargaining unit OCEA.
* 501: Operations and Maintenance employee groups, bargaining unit International Union of Operating Engineers Local 501.
Service Requirement
Eligibility
A cost of living adjustment is provided to benefit recipients based on changes in the Consumer Price
Index (CPI) up to a maximum of 3% per year. Any increase greater than 3% is banked and may be
used in years when the CPI is less than 3%. The increase is established and approved annually by
the Board of Retirement.
The Plan also provides disability and death benefits to eligible members and their beneficiaries,
respectively. For retirees the death benefit is determined by the retirement benefit option chosen.
For all other members the beneficiary is entitled to benefits based on the member’s years of service
and whether or not the cause of death is service related.
At the December 31, 2019 measurement date, the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits508
Inactive employees entitled to but not yet receiving benefits 135
Active employees 608
Total 1,251
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
37
Contributions: Participating employers and active members are required by statute to contribute a
percentage of covered salary to the Plan. CERL requires that the employer contribution rates for all
public employers be determined on an annual basis by the actuary and be effective on the July 1
following notice of a change in rate. Funding contributions are determined annually on an actuarial
basis as of December 31 by OCERS. The actuarially determined rate is the estimated amount
necessary to finance the costs of benefits earned by employees during the year, with an additional
amount to finance any unfunded accrued liability.
Contributions to the Plan from OCSD were $8,739,661 for the year ended June 30, 2020. An
additional $38,000,000 was contributed to pay down OCSD’s Net Pension Liability.
Contribution rates in effect for the fiscal year ended June 30, 2020 are as follows:
Plan G Plan H Plan B Plan U
Employer Contribution Rate, 7/1/19 - 6/30/20 13.30% 13.30% 11.25% 10.37%
Employee Contribution Rate, 7/1/19 - 6/30/20 (2)7.14-12.79% (1)6.69-12.79% (1)7.52-13.02% 7.28-14.49%
Paid by Employer for Employee 3.50% 3.50% 0.00% 0.00%
(1) Net of employer paid portion of 3.5%.
(2) Employee rates are determined by the age of entry into the retirement system.
For the year ended June 30, 2020, the contributions and average employer’s contribution rate as a
percentage of covered payroll were as follows:
Plans
Employer
Contributions
Employee (Paid
by Employer)
Contributions
Average
Employer
Contribution
Rate (%)
Plan G 14,314$ 3,767$ 0.03%
Plan H 5,413,897 1,410,906 9.79%
Plan B 758,267 - 1.09%
Plan U 2,553,183 - 3.66%
Total 8,739,661$ 1,414,673$
Pension Assets / Liabilities: As of June 30, 2020, OCSD reported a net pension asset of $49,446,615
for its proportionate share of OCERS’ net pension liability. The net pension asset was measured as
of December 31, 2019 and the total pension asset used to calculate the net pension asset was
determined by an actuarial valuation as of that date. OCSD’s proportion of the net pension asset
was based on a projection of OCSD’s long-term share of contributions to the pension plan relative
to the projected contribution of all participating employers, actuarially determined.
At December 31, 2019, OCSD’s proportion of the net pension liability was (0.974%), which was a
decrease of 1.442% from its proportion measured as of December 31, 2018. The change in OCSD’s
proportion of the net pension liability during the fiscal year ended June 30, 2020 was caused by
additional contributions made in September and November 2019 and projections noted above.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
38
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions: For the year
ended June 30, 2020, OCSD recognized pension expense of $11,505,954 for its proportionate share
of the pension expense. At June 30, 2020 OCSD reported its share of deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Difference between expected and actual experience 9,606,499$ 5,416,832$
Net difference between projected and actual investment
earnings on pension plan investments - 25,420,889
Changes of assumptions (1) 12,311,067 372,978
Changes in proportion and differences between employer
contributions and proportionate share of contributions 449,137 9,214
Employer contributions paid to OCERS subsequent to
the measurement date 12,250,306 -
Total 34,617,009$ 31,219,913$
• adjustments to the mortality tables,
• % in the rate of marriage for male and female members at retirement or pre-retirement death,
• an increase in the Consumer Price Index of 2.75% per year, maximum increase is 3%,
• and a slight increase of .50% in salaries per year.
• retirement assumptions for deferred vested members (age at retirement 59, increase of 4.25% in reciprocity,
and an increase in compensation increases),
Detail for these changes is available in the Segal Actuarial Valuation for December 31, 2019, Section 3. This report is
available on the OCERS website at www.ocers.org.
(1) The monetary effects of changes in actuarial assumptions and method totals $12,311,067 for deferred outflow s
and $372,978 for deferred inflows of resources. These changes include:
The $12,250,306 reported as deferred outflows of resources related to pensions resulting from
OCSD’s contributions to OCERS subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to OCERS pensions will be
recognized in pension expense as follows:
Year ended June 30 Amount
2021 (5,922,898)$
2022 (2,855,374)
2023 7,473,909
2024 (8,862,635)
2025 1,313,788
Total (8,853,210)$
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
39
Actuarial Assumptions and Methods: The total pension liability in the December 31, 2019 actuarial
valuation was determined using the following actuarial assumptions, applied to all periods included
in the measurement:
Investment rate of return 7.00% of net pension plan investment expenses, including inflation
Discount rate 7.00%
Inflation rate 2.75%
Projected salary increases 4.25% to 12.25%
Cost of living adjustment 2.75% of retirement income
OCERS Economic and Demographic Assumptions: On October 16, 2017, the OCERS Board
adopted the following significant changes to the economic and demographic actuarial assumptions,
used to establish retirement contribution rates effective July 1, 2019:
Reduced the assumed investment rate of return from 7.25% to 7.00%
Reduced the assumed rate of price inflation from 3.00% to 2.75%
Adopted the use of generational tables, which have identified reduced rates of mortality for
members
Additionally, the OCERS Board adopted a three-year phase-in of the impact to the contribution rates
associated with the Unfunded Actuarially Accrued Liability. The cumulative effect of these changes
will have the impact of increasing contribution rates for members and plan sponsors.
The mortality assumptions used in the total pension liability at December 31, 2019 were based on
the Headcount-Weighted RP-2014 Healthy Annuitant Mortality Table as a starting point, projected
generationally using the two-dimensional Scale MP-2016, with age adjustments, and adjusted
separately for healthy and disabled members. The basis for determining the mortality assumptions
used were based on the results of the actuarial experience study for the period January 1, 2014
through December 31, 2016.
Further details of the experience study can be found in the OCERS CAFR, available on their website
at www.ocers.org.
Long-Term Expected Real Rate of Return: The long-term expected rate of return on pension plan
investments was determined using a building-block method in which expected future real rates of
return (expected returns, net of inflation) are developed for each major asset class. These returns
are combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation and
deducting expected investment expenses.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
40
The target allocation and projected arithmetic real rates of return for each major asset class, after
deducting inflation, but before investment expenses, used in the derivation of the long-term expected
investment rate of return assumption are summarized in the following table for the calendar year
ended December 31, 2019:
Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return (Arithmetic)
Global Equity 35.00% 6.38%
Core Bonds 13.00% 1.03%
High Yield Bonds 4.00% 3.52%
Bank Loan 2.00% 2.86%
TIPS 4.00% 0.96%
Emerging Markets Debt 4.00% 3.78%
Real Estate 10.00% 4.33%
Core Infrastructure 2.00% 5.48%
Natural Resources 10.00% 7.86%
Risk Mitigation 5.00% 4.66%
Mezzanine/Distressed Debts 3.00% 6.53%
Private Equity 8.00% 9.48%
Total 100.00%
Discount Rate: The discount rate used to measure the total pension liability was 7.00% for the year
ended December 31, 2019. The projection of cash flows used to determine the discount rate
assumed that plan member contributions will be made at the current contribution rate and that
employer contributions will be made at rates equal to the actuarially determined contribution rates.
For this purpose, only employer contributions that are intended to fund benefits for current plan
members and their beneficiaries are included. Projected employer contributions that are intended to
fund the service costs for future plan members and their beneficiaries, as well as projected
contributions from future plan members, are not included. Based on those assumptions, the pension
plan’s fiduciary net position was projected to be available to make all projected future benefit
payments for current plan members. Therefore, the long-term expected rate of return on pension
plan investments was applied to all periods of projected benefit payments to determine the total
pension liability as of December 31, 2019.
Sensitivity of the Proportionate Share of Net Pension Liability to Changes in the Discount Rate: The
following table represents OCSD’s proportionate share of the net pension liability calculated using
the discount rate of 7.00%, as well as what OCSD’s proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1 percentage point lower (6.00%) or 1
percentage point higher (8.00%) than the current rate:
Net Pension Asset (Liability)
December 31, 2019 $ (58,125,867) $ 49,446,615 $ 136,946,632
(6.00%) (7.00%) (8.00%)
1% Decrease Current Discount Rate 1% Increase
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
41
Pension Plan Fiduciary Net Position: Detailed information about OCERS’ fiduciary net position is
available in a separately issued OCERS comprehensive annual financial report. That report may be
obtained from OCERS at 2223 Wellington Avenue, Santa Ana, California 92708 or at their web site
(www.ocers.org).
B. Additional Retiree Benefit Account (ARBA)
Plan Description: The OCSD ARBA plan is a single-employer defined benefit plan which was
administered by OCERS until February 29, 2008, when OCSD began direct administration. This
benefit was established by the OCSD Board of Directors on October 25, 1992. It provides a monthly
payment to retirees towards the premium costs of health insurance for the retiree and eligible
dependents. The retiree is not required to use this amount for health insurance premium or to remain
on the OCSD medical plan. The plan is currently paying benefits to 384 retirees. The ARBA plan is
not subject to the reporting requirements of GASB 68 and 71 because a trust has not been set up
for the plan. However, GASB 73 has been implemented for the ARBA plan in the fiscal year ended
June 30, 2016. The plan is a funded on a pay-as-you-go plan from general funds and is administered
by OCSD. Stand-alone financial statements are not issued for the plan.
Benefits Provided: Employees who retire receive $10 per month for every year of service up to a
maximum of 25 years, or $250 per month. This amount is independent of salary and is fixed at
retirement. Because OCSD cannot ensure the use of the benefit for payment of eligible health
insurance expenses, the benefit is taxable to the retiree. Survivor benefits are provided in the event
that a retiree pre-deceases his/her spouse. For retirees hired prior to July 1, 1988, OCSD provides
health insurance coverage for 2½ months per year of service (see Note 6 – Other Post-Employment
Benefits). ARBA benefits begin immediately after this benefit ends. For those hired on or after July
1, 1988, ARBA benefits begin immediately upon retirement and continue for life. Employees hired
into the OCEA bargaining group after August 1, 2011 are ineligible for this benefit.
Benefits are determined by hire date, bargaining unit and years of service as follows:
Hire date All: Prior to 7/1/88
All: After 7/1/88
OCEA*: Before 8/1/11
Benefit amount per
year of service for
normal retirement age
$10 per month x years of service up to
a maximum of 25 years
$10 per month x years of service up to
a maximum of 25 years
Service requirement
eligibility
Age 50 or over with 10 or more years
Any age with 30 or more years
Age 70 or over, any years
Age 50 or over with 10 or more years
Any age with 30 or more years
Age 70 or over, any years
Benefit payments Monthly for life Monthly for life
Benefit schedule Immediately after retiree health
insurance coverage ends Immediately upon retirement
* OCEA: Administrative, Clerical, Engineering, and Technical Services employee groups, bargaining unit OCEA.
No cost of living adjustment is provided to benefit recipients.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
42
At June 30, 2020, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits384
Inactive employees entitled to but not yet receiving benefits 36
Active employees 548
Total 968
Contributions: There are no employee contributions for this plan; OCSD covers 100% of the cost.
OCSD utilizes a pay-as-you-go method for funding the plan. Contributions to the plan from OCSD
were $888,120 for the year ended June 30, 2020.
Pension Liabilities: As of June 30, 2020, OCSD reported total pension liability of $21,434,655 for its
ARBA plan. The total pension liability was determined by an actuarial valuation as of July 1, 2019.
OCSD funds benefits on a “pay as you go” basis and elected not to pre-fund its pension obligation.
As a result, there are no plan assets and the total pension liability is equal to the net pension liability.
Standard actuarial update procedures were used to project/discount from July 1, 2019 to the
measurement date of June 30, 2020.
The actuarial valuation performed as of July 1, 2019, used the entry age, level percent of pay cost
method. This method represents the present value of all benefits accrued through the valuation date
assuming that each employee’s liability is expensed from hire date until retirement date as a level
percentage of pay.
The following table shows the changes in the total pension liability:
Total Pension Liability
Increase (Decrease)
Beginning balance at July 1, 2019 21,577,464$
Changes in the year:
Service cost 576,661
Interest on total pension liability 608,775
Difference between expected and actual experience (2,263,797)
Changes of assumptions 1,823,672
Benefit payments (888,120)
Net changes (142,809)
Ending balance at June 30, 2020 21,434,655$
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
43
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension: For the year
ended June 30, 2020, OCSD recognized pension expense of $1,583,988 for its ARBA plan. At June
30, 2020 OCSD reported its share of deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual experience 1,030,512$ 1,940,397$
Changes of assumptions (1) 2,402,510 -
Total 3,433,022$ 1,940,397$
(1) The monetary effects of changes in actuarial assumptions and method totals $2,402,510. These changes
include passage of time, a change in the discount rate from 3.13% to 2.45%, change in actuarial system,
census and other losses.
Amounts reported as deferred outflows of resources related to ARBA pensions will be recognized in
pension expense as follows:
Year ended June 30 Amount
2021 398,552$
2022 398,552
2023 398,552
2024 284,048
2025 75,796
2026 (62,875)
Total 1,492,625$
Actuarial Assumptions and Methods: The total pension liability in the July 1, 2019 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Investment rate of return 3.75% per annum
Discount rate 3.13% per annum as of July 1, 2019 (valuation date)
2.45% per annum as of June 30, 2020 (measurement date)
Inflation rate 3.00% per annum
Projected salary increases 3.00% per annum (for service cost only; benefits not pay-related)
The mortality assumptions used in the total pension liability at July 1, 2019 were based on the RP-
2014 Employee Mortality and Health Annuitant Mortality Tables for Males or Females, as
appropriate, without projection.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
44
Discount Rate: The discount rate used to measure the total pension liability was 3.13% as of the
valuation date, July 1, 2019, and 2.45% as of the measurement date, June 30, 2020. Because there
are no assets held in a trust that meets GASB 68 or 71, the discount rate is based on the 20-year,
tax exempt general obligation municipal bonds with an average rating of AA or higher.
Sensitivity of the Total Pension Liability to Changes in the Discount Rate: The following table
represents the total pension liability calculated using the discount rate of 2.45% as of the
measurement date, as well as what total pension liability would be if it were calculated using a
discount rate that is 1 percentage point lower (1.45%) or 1 percentage point higher (3.45%) than the
current rate:
Total Pension Liability
June 30, 2020 $ 24,603,943 $ 21,434,655 $ 18,831,919
(1.45%) (2.45%) (3.45%)
1% Decrease Current Discount Rate 1% Increase
(6) Other Post-Employment Benefits (OPEB)
Plan Description: The post-employment medical benefits plan is a single-employer defined benefit
plan administered by OCSD. This plan was established and may be modified only by action of the
OCSD Board of Directors. Stand-alone financial statements are not issued.
Benefits Provided: OCSD offers medical insurance to active and retired employees, as well as their
qualified dependents. All retirees may choose coverage in an OCSD medical plan, with retirees
paying the full premium. However, for employees hired prior to July 1, 1988, medical benefits begin
immediately at retirement with OCSD paying 2.5 months of premium for each year of continuous
service toward the cost of coverage under OCSD medical plans. At the termination of this period the
retiree may elect to continue coverage at his/her own expense. For the fiscal year ended June 30,
2020, premiums ranged between $227 and $4,078 per month, depending on the plan and number
of dependents covered.
At June 30, 2020, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits
(includes 115 paying premiums and 36 with premiums paid by OCSD)151
Inactive employees entitled to but not yet receiving benefits 0
Active employees (includes 4 eligible for premiums paid by OCSD)597
Total 748
Contributions: There are no employee contributions to this plan; OCSD covers 100% of the cost for
qualifying employees as stated above. Retirees opting to remain with the plan after employment pay
100% of the premium cost, except for those for whom OCSD pays for a period (see above). OCSD
utilizes a pay-as-you-go method for funding the plan. Contributions to the plan from OCSD were
$739,045 and the estimated implicit subsidy was $865,348, resulting in total payments of
$1,604,393, and retirees contributed $1,148,038 for the year ended June 30, 2020.
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
45
OPEB Liabilities: As of June 30, 2020, OCSD reported total OPEB liability of $2,483,644 for its post-
employment retiree medical benefits plan. The total OPEB liability was determined by an actuarial
valuation as of July 1, 2019. OCSD funds benefits on a “pay as you go” basis and elected not to pre-
fund its OPEB obligation. As a result, there are no plan assets and the total OPEB liability is equal
to the net OPEB liability. Standard actuarial update procedures were used to project/discount from
July 1, 2019 to the measurement date of June 30, 2020.
The actuarial valuation performed as of July 1, 2019 used the entry age, level percent of pay cost
method. This method represents the present value of benefits accrued through the valuation date,
assuming that each employee’s liability is expensed from hire date until retirement date as a level
percentage of pay.
The following table shows the changes in the total OPEB liability:
Total OPEB Liability
Increase (Decrease)
4,013,291$
Changes in the year:
Service cost 4,334
Interest on total OPEB liability 98,047
Difference between expected and actual experience (115,924)
Changes of assumptions 88,289
Benefit payments (1)(1,604,393)
Net changes (1,529,647)
2,483,644$
(1) As part of the July 1, 2019 actuarial valuation report, Demsey, Filliger & Associates
prepared a projection of the expected annual cost to the District to pay OPEB benefits.
Ending balance at June 30, 2020
Beginning balance at July 1, 2019
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB: For the year ended
June 30, 2020, OCSD recognized OPEB expense of $74,746 for its post-employment retiree medical
benefits plan. At June 30, 2020 OCSD reported $0 for its share of deferred outflows/inflows of
resources related to OPEB.
Actuarial Assumptions and Methods: The total OPEB liability in the July 1, 2019 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Investment rate of return 4.00% per annum
Discount rate 2.45% per annum
Inflation rate 3.00% per annum
Healthcare cost trend rate 5.90% for 2020; 5.80% for 2021, 5.70% for 2022; and decreasing
0.10% per year to an ultimate rate of 5.00% for 2029 and later years
Projected salary increases 3.00% per annum
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
46
The mortality assumptions used in the total OPEB liability at July 1, 2019 were based on the RP-
2014 Employee Mortality Table for Males or Females, as appropriate, without projection for pre-
retirement mortality rates and RP-2014 Health Annuitant Mortality Table for Males or Females, as
appropriate, without projection for post-retirement mortality rates.
Actuarial assumptions used in the July 1, 2019 valuation were based on a review of plan experience
during the period July 1, 2017 through June 30, 2019.
Discount Rate: The discount rate used to measure the total OPEB liability was 3.13% as of the
valuation date, July 1, 2019, and 2.45% as of the measurement date, June 30, 2020. Because there
are no assets held in a trust, for GASB 75 reporting purposes, the discount rate is based on a yield
or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of
AA/Aa or higher.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate: The following table
represents the total OPEB liability calculated using the discount rate of 2.45% as of the measurement
date, as well as what total OPEB liability would be if it were calculated using a discount rate that is
1 percentage point lower (1.45%) or 1 percentage point higher (3.45%) than the current rate:
Total OPEB Liability
June 30, 2020 $ 2,577,818 $ 2,483,644 $ 2,393,930
(1.45%) (2.45%) (3.45%)
1% Decrease Current Discount Rate 1% Increase
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates: The following
table represents the total OPEB liability calculated using the healthcare cost trend rate of 5.90%
decreasing to 5.00% as of the measurement date, as well as what total OPEB liability would be if it
were calculated using a healthcare cost trend rate that is 1 percentage point lower (4.90%
decreasing to 4.00%) or 1 percentage point higher (6.90% decreasing to 6.00%) than the current
rate:
Total OPEB Liability
June 30, 2020 $ 2,379,523 $ 2,483,644 $ 2,592,795
(4.90% decreasing
to 4.00%)
(5.90% decreasing
to 5.00%)
(6.90% decreasing
to 6.00%)
1% Decrease Current Trend Rate 1% Increase
(7) Transactions with Irvine Ranch Water District – Revenue Area No. 14
Formation of Revenue Area No. 14 & Excess Purchase Price Over Book Value of Acquired Assets On July 1, 1985, Revenue Area No. 14 was formed as an independent special district as a result of
a negotiated agreement between OCSD and IRWD. At the time of Revenue Area 14’s creation,
OCSD consisted of eight independent special districts (see Note 1 – Reporting Entity). The eight
existing districts sold a portion of the joint treatment facilities and land to the newly created district
and recorded capacity rights revenue at the time of the sale.
In accordance with the negotiated agreement between OCSD and IRWD, IRWD paid OCSD
$34,532,000 for an initial 15,000,000 gallons per day capacity in OCSD’s joint treatment facilities
(with an ultimate collection capacity of 32,000,000 gallons per day) and for a pro-rata interest in real
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
47
property (based on flow of 32,000,000 gallons per day). The book value of the assets acquired was
determined to be $14,553,000 as of June 30, 1986; these assets were recorded at book value in
Revenue Area 14. The excess of the purchase price over the assets' book value was $19,979,000
and was recorded as an intangible asset in Revenue Area 14. The excess of the purchase price over
the assets’ book value was amortized over useful lives of the original assets acquired. The excess
of purchase price over the assets' book value was fully amortized as of June 30, 2017.
Annual Transactions IRWD entered into a separate agreement with Revenue Area 14 on January 1, 1986 whereby IRWD
agreed to fund quarterly payments of Revenue Area 14's proportionate share of OCSD's joint capital
outlay revolving fund budget requirements and certain capital improvements during the term of the
agreement, for which contributions of $4,002,007 were recorded as contribution from other
government during the fiscal year ended June 30, 2020. IRWD also agreed to fund the annual
integration adjustment of Revenue Area 14’s equity share in OCSD’s Joint Works Treatment
Facilities based on the flows discharged to OCSD. Integration contributions credited to IRWD of
$16,408,665 from Revenue Area 14 were recognized and reported as contributions to other
governments during the fiscal year ended June 30, 2020. These contributions received from or
credited to IRWD for their agreed-upon share of capital assets and equity share in OCSD’s Joint
Works Treatment Facilities are calculated as prescribed in the agreements.
In addition, a separate agreement for transfer of IRWD’s wastewater solids residuals to OCSD was
entered on April 28, 2010. IRWD agreed to pay OCSD for an interim solids handling charge which
includes annual capital and quarterly operating expense components designed to compensate
OCSD for IRWD’s share of the cost of operating and maintaining the existing facilities for the
treatment of solids. As a result, $2,353,370 in annual solids capital handling charges were reported
as operating revenue in Consolidated Revenue Area, and $10,312,529 in quarterly solids operating
and maintenance charges were reported as operating revenue in Revenue Area No. 14 during the
fiscal year ended June 30, 2020.
Any amounts credited to IRWD are not refunded in cash but are held as a credit to satisfy future
contributions required of IRWD. Amounts owed from IRWD are invoiced on a quarterly or annual
basis. As a result, a balance of $34,613,820 was reported in due to other governmental agency as
of June 30, 2020.
Annual Cash Reserve Requirement The cash reserve contribution requirement from IRWD at June 30, 2020; in accordance with
Amendment No. 2 to the Agreement between IRWD and OCSD Acquiring Ownership Interests,
Assigning Rights, and Establishing Obligations; is $14.2 million. This cash reserve requirement is
recognized as a liability to IRWD.
(8) Commitments and Contingencies
Pollution Remediation: An Underground Storage Tank (UST) at Plant No. 1 failed the pressure test
to ensure its tank integrity. As a result of the test failure, OCSD voluntarily took this UST out of
service and tested the immediate surrounding area and determined that both gasoline and diesel
were present. During the fiscal year ended June 30, 2017, OCSD completed an analysis of
remediation alternatives resulting in a less costly remediation plan for the contaminated soil than the
plan developed during the previous fiscal year. The new remediation plan received approval from
the Orange County Health Care Agency, and based upon their feedback a final design was
completed. The new remediation plan called for removal and disposal of approximately 2,200 tons
of contaminated soil, and some limited groundwater treatment. This work was issued a construction
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2020
48
contract in March 2019 and has been substantially completed as of June 30, 2020. As of June 30,
2020, actual costs of $1,202,457 were incurred. Total remaining costs are estimated not to exceed
$500,000, including a contingency for the remediation effort. This does not include operating costs
for post-remediation monitoring over a five-year period.
Construction Commitments: OCSD has active construction projects to add additional capacity,
improve treatment, or replace/ rehabilitate existing assets. At June 30, 2020, the outstanding
commitments with contractors totaled $145,213,107.
Litigation: Certain claims involving disputed construction costs have arisen in the ordinary course of
business. Additionally, OCSD is a defendant in lawsuits. Although the outcome of these matters is
not presently determinable, management does not expect that the resolution of these matters will
have a material adverse impact on the financial condition of OCSD.
(9) COVID-19 Pandemic
The spread of the novel strain of coronavirus and the disease it causes (now known as “COVID-19”)
is having significant negative impacts throughout the world, including in Southern California. The
World Health Organization declared the COVID-19 outbreak to be a pandemic, and states of
emergency were declared by the United States, the State of California, and numerous counties
throughout the State, including Orange County of which, comprises the service area of OCSD. On
March 17, 2020, OCSD’s General Manager declared a state of emergency at OCSD. The purposes
behind these declarations were to initiate emergency response protocols, coordinate and formalize
emergency actions across federal, state and local governmental agencies, and to proactively
prepare for a wider spread of the virus.
OCSD is assessing the effects the ongoing COVID-19 outbreak will have on OCSD and its business
and operations, as well as in the region, including the adverse financial impacts likely to be
experienced by its member agencies. The degree of impact to OCSD’s finances and operations is
difficult to predict due to the evolving nature of the COVID-19 pandemic, including uncertainties
relating to (i) the ultimate extent of the geographic spread of the virus; (ii) the duration and severity
of the outbreak; (iii) the extent of the disruption to or decline in the local and global economies and
financial markets; (iv) the degree to which business closures, increased unemployment, housing
foreclosures and/or other economic consequences may reduce water and sewer demands in the
region and OCSD's wastewater transactions, or negatively affect future property values in OCSD's
service area and/or OCSD's property tax levy receipts, and reduce OCSD's revenues; (v) the extent
to which a protracted disruption in the manufacturing or construction industry may affect supply
chains or further delay construction schedules for, or the implementation of, OCSD’s capital
improvement programs and projects, or the costs of such programs or projects or OCSD’s sewer
system operations; and (vi) what additional actions may be taken or required by governmental
authorities to contain and respond to the outbreak and what costs or impacts of such actions may
be. The restrictions and limitations instituted related to COVID-19 will likely remain in place for some
period and may increase, that the ongoing economic downturn may continue for many months and
an economic recession has been projected as likely to occur, and that the recovery may be
prolonged. As a result, OCSD’s finances and operations may be adversely impacted by COVID-19.
ORANGE COUNTY SANITATION DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
49
2015 2016 2017 2018 2019 2020
1.13% 0.74% (0.20%) (0.80%) 0.47% (0.97%)
57,418,760$ 42,439,759$ (10,384,508)$ (39,571,100)$ 29,029,147$ (49,446,615)$
58,641,163$ 59,789,927$ 60,000,017$ 62,341,796$ 66,475,479$ 71,395,906$
97.92% 70.98% (17.31%) (63.47%) 43.67% (69.26%)
89.61% 92.74% 101.70% 105.96% 95.86% 106.64%
(1)
(2)
OCSD's proportionate share of the
net pension liability (asset)
Fiscal Year Ended June 30,
OCSD's proportion of the net
pension liability (asset)
ORANGE COUNTY SANITATION DISTRICT
Proportionate Share of the Net Pension Liability (Asset)
Orange County Employees Retirement System (OCERS) Pension Plan
Last 10 Fiscal Years (1)
The amounts presented were determined as of the measurement date December 31. Data for fiscal years ended June 30, 2011 through 2014
is not available in a comparable format.
Covered payroll represents compensation earnable and pensionable compensation for the measurement period ended December 31. Only
compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included.
OCSD's covered payroll (2)
OCSD's proportionate share of the
net pension liability (asset) as a
percentage of covered payroll
OCERS' fiduciary net position as a
percentage of the total pension
liability
50
2015 2016 2017 2018 2019 2020
17,201,569$ 12,222,849$ 7,709,734$ 7,525,655$ 7,769,431$ 8,739,661$
(17,201,569) (12,222,849) (7,709,734) (7,525,655) (7,769,431) (8,739,661)
-$ -$ -$ -$ -$ -$
60,025,942$ 60,595,474$ 62,266,907$ 65,390,144$ 69,101,109$ 69,688,759$
28.66% 20.17% 12.38% 11.51% 11.24% 12.54%
(1)
(2)
Contributions in relation to the
contractually required contribution
Fiscal Year Ended June 30,
Contractually required contribution
ORANGE COUNTY SANITATION DISTRICT
Orange County Employees Retirement System (OCERS) Pension Plan
Schedule of District Contributions
Last 10 Fiscal Years (1)
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2011 through 2014 is not
available in a comparable format.
Covered payroll represents compensation earnable and pensionable compensation for the fiscal year ended June 30. Only compensation
earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included.
Contribution deficiency (excess)
Covered payroll (2)
Contributions as a percentage of
covered payroll
51
2015 2016 2017 2018 2019 2020
16,680,614$ 18,313,122$ 18,467,361$ 20,831,172$ 21,577,464$ 21,434,655$
62,139,375$ 62,977,577$ 65,120,945$ 68,126,103$ 71,948,599$ 74,602,862$
26.84% 29.08% 28.36% 30.58% 29.99% 28.73%
(1)
(2)
(3)
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2011 through
2014 is not available in a comparable format.
This plan is not administered through a trust or equivalent arrangement, thus covered-employee payroll is used. Covered-
employee payroll represents total payroll of employees that are provided benefits through the pension plan for the fiscal year
ended June 30.
There are no assets in a trust compliant with GASB codification P22.101. OCSD funds benefits on a “pay as you go” basis and
elected not to pre-fund its pension obligation. As a result, there are no plan assets and the total pension liability is equal to the net
pension liability.
Covered-employee payroll (2)
Total pension liability as a
percentage of covered-
employee payroll
ORANGE COUNTY SANITATION DISTRICT
Total Pension Liability (3)
Additional Retiree Benefit Account (ARBA)
Last 10 Fiscal Years (1)
Total pension liability
Fiscal Year Ended June 30,
52
2016 2017 2018 2019 2020
16,680,614$ 18,313,122$ 18,467,361$ 20,831,172$ 21,577,464$
Changes in the year:
Service cost 270,223 278,330 553,795 570,409 576,661
Interest on total pension liability 626,386 593,711 649,192 663,852 608,775
Difference between expected and
actual experience - - - - (2,263,797)
Changes of assumptions 1,230,327 (70,952) 1,889,274 328,481 1,823,672
Benefit payments (494,428) (646,850) (728,450) (816,450) (888,120)
Net changes 1,632,508 154,239 2,363,811 746,292 (142,809)
Ending balance at June 30 18,313,122$ 18,467,361$ 20,831,172$ 21,577,464$ 21,434,655$
(1)
(2)
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2011
through 2015 is not available in a comparable format.
OCSD funds benefits on a “pay as you go” basis and elected not to pre-fund its pension obligation. As a result, there are no
plan assets and the total pension liability is equal to the net pension liability.
ORANGE COUNTY SANITATION DISTRICT
Changes in Total Pension Liability (2)
Additional Retiree Benefit Account (ARBA)
Last 10 Fiscal Years (1)
Beginning balance at July 1
Fiscal Year Ended June 30,
53
2017 2018 2019 2020
6,398,694$ 5,025,395$ 4,013,291$ 2,483,644$
65,120,945$ 68,126,103$ 71,948,599$ 74,602,862$
9.83% 7.38% 5.58% 3.33%
(1)
(2)
(3)
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30,
2011 through 2016 is not available in a comparable format.
This plan is not administered through a trust or equivalent arrangement, thus covered-employee payroll is used.
Covered-employee payroll represents total payroll of employees that are provided benefits through the OPEB plan
for the fiscal year ended June 30.
There are no assets in a trust compliant with GASB codification P52.101. OCSD funds benefits on a “pay as you go”
basis and elected not to pre-fund its OPEB obligation. As a result, there are no plan assets and the total OPEB
liability is equal to the net OPEB liability.
Covered-employee payroll (2)
Total OPEB liability as a percentage of
covered-employee payroll
Total OPEB liability
ORANGE COUNTY SANITATION DISTRICT
Total OPEB Liability (3)
Post-Employment Medical Benefits Plan
Last 10 Fiscal Years (1)
Fiscal Year Ended June 30,
54
2018 2019 2020
Beginning balance at July 1 6,398,694$ 5,025,395$ 4,013,291$
Changes in the year:
Service cost 18,182 16,489 4,334
Interest on total OPEB liability 177,395 159,195 98,047
Difference between expected
and actual experience - - (115,924)
Changes of assumptions (95,279) 78,935 88,289
Benefit payments (2) (1,473,597) (1,266,723) (1,604,393)
Net changes (1,373,299) (1,012,104) (1,529,647)
Ending balance at June 30 5,025,395$ 4,013,291$ 2,483,644$
(1)
(2)Benefit payments include implicit subsidy associated with benefits paid.
(3)
The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended
June 30, 2011 through 2017 is not available in a comparable format.
OCSD funds benefits on a “pay as you go” basis and elected not to pre-fund its OPEB obligation. As a
result, there are no plan assets and the total OPEB liability is equal to the net OPEB liability.
Fiscal Year Ended June 30,
ORANGE COUNTY SANITATION DISTRICT
Changes in Total OPEB Liability (3)
Post-Employment Medical Benefits Plan
Last 10 Fiscal Years (1)
55
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56
ORANGE COUNTY SANITATION DISTRICT
SUPPLEMENTARY INFORMATION
57
Revenue Consolidated
Area No. 14 Revenue Area Totals
Current assets:
Cash and cash equivalents 4,187,799$ 102,374,704$ 106,562,503$
Investments 30,426,021 743,792,853 774,218,874
Accounts receivable, net of allowance
for uncollectibles $304,619 - 15,585,233 15,585,233
Accrued interest receivable - 3,261,437 3,261,437
Connection fees receivable - 4,276,297 4,276,297
Property tax receivable - 1,841,207 1,841,207
Inventories - 6,852,604 6,852,604
Prepaid expenses - 2,473,418 2,473,418
Total current assets 34,613,820 880,457,753 915,071,573
Noncurrent assets:
Restricted:
Cash and cash equivalents held by fiscal agents - 6,998 6,998
Unrestricted:
Non-depreciable capital assets 11,668,481 394,229,709 405,898,190
Depreciable capital assets, net of accumulated depreciation 83,272,424 2,185,030,295 2,268,302,719
Other noncurrent assets, net - 10,344 10,344
Net pension asset - OCERS - 49,446,615 49,446,615
Total noncurrent assets 94,940,905 2,628,723,961 2,723,664,866
Total assets 129,554,725 3,509,181,714 3,638,736,439
Deferred outflows of resources:
Deferred charges on defeasances - 25,162,613 25,162,613
Deferred outflows related to pensions - 38,050,031 38,050,031
Total deferred outflows of resources - 63,212,644 63,212,644
Total assets and deferred outflows of resources 129,554,725 3,572,394,358 3,701,949,083
Current liabilities:
Accounts payable - 16,007,700 16,007,700
Accrued expenses - 16,259,932 16,259,932
Retentions payable - 4,475,945 4,475,945
Interest payable - 17,582,050 17,582,050
Due to other governmental agency 34,613,820 - 34,613,820
Current portion of long-term obligations - 49,450,092 49,450,092
Total current liabilities 34,613,820 103,775,719 138,389,539
Noncurrent liabilities:
Noncurrent portion of long-term obligations - 967,470,844 967,470,844
Total OPEB liability - 2,483,644 2,483,644
Total pension liability - ARBA - 21,434,655 21,434,655
Total noncurrent liabilities - 991,389,143 991,389,143
Total liabilities 34,613,820 1,095,164,862 1,129,778,682
Deferred inflows of resources:
Deferred inflows related to pensions - 33,160,310 33,160,310
Total liabilities and deferred inflows of resources 34,613,820 1,128,325,172 1,162,938,992
Net position:
Net investment in capital assets:
Collection system 14,195,529 522,884,262 537,079,791
Treatment and disposal land 1,671,705 36,354,693 38,026,398
Treatment and disposal system 79,073,671 2,020,021,049 2,099,094,720
Capital-related liabilities - (996,159,894) (996,159,894)
Subtotal 94,940,905 1,583,100,110 1,678,041,015
Unrestricted - 860,969,076 860,969,076
Total net position 94,940,905$ 2,444,069,186$ 2,539,010,091$
ORANGE COUNTY SANITATION DISTRICT
Combining Area Schedule of Net Position
June 30, 2020
58
Revenue Consolidated
Area No. 14 Revenue Area Totals
Operating revenues:
Service charges 14,264,898$ 325,630,610$ 339,895,508$
Permit and inspection fees 9,822 1,158,732 1,168,554
Total operating revenues 14,274,720 326,789,342 341,064,062
Operating expenses other than depreciation
and amortization:
Salaries and benefits 4,997,317 77,919,325 82,916,642
Utilities 263,593 8,358,765 8,622,358
Supplies, repairs and maintenance 1,577,732 42,484,897 44,062,629
Contractual services 10,743,592 13,881,076 24,624,668
Feasibility studies 121,461 4,991,750 5,113,211
Other 335,628 2,657,986 2,993,614
Total operating expenses other than
depreciation and amortization 18,039,323 150,293,799 168,333,122
Operating income (loss) before
depreciation and amortization (3,764,603) 176,495,543 172,730,940
Depreciation and amortization 5,018,569 108,869,259 113,887,828
Operating income (loss) (8,783,172) 67,626,284 58,843,112
Non-operating revenues:
Property taxes 3,207,030 101,284,500 104,491,530
Investment and interest income 390,838 33,278,347 33,669,185
Contributions from other governments 4,118,251 6,416,887 10,535,138
Other 55,180 2,582,094 2,637,274
Total non-operating revenues 7,771,299 143,561,828 151,333,127
Non-operating expenses:
Interest - 33,832,605 33,832,605
Contributions to other governments 16,408,665 - 16,408,665
Other 2,145 2,722,883 2,725,028
Loss on disposal of assets 21,515 1,273,931 1,295,446
Total non-operating expenses 16,432,325 37,829,419 54,261,744
Income (loss) before capital contributions (17,444,198) 173,358,693 155,914,495
Capital contributions:
Capital facilities capacity charges - 22,593,121 22,593,121
Change in net position (17,444,198) 195,951,814 178,507,616
Total net position - beginning 112,385,103 2,248,117,372 2,360,502,475
Total net position - ending 94,940,905$ 2,444,069,186$ 2,539,010,091$
ORANGE COUNTY SANITATION DISTRICT
Combining Area Schedule of Revenues, Expenses, and Change in Net Position
For the Year Ended June 30, 2020
59
ORANGE COUNTY SANITATION DISTRICT
Combining Area Schedule of Cash Flows
For the Year Ended June 30, 2020
Revenue Consolidated
Area No. 14 Revenue Area Eliminations Totals
Cash flows from operating activities:
Receipts from customers and users 48,888,540$ 325,416,572$ -$ 374,305,112$
Payments to employees (4,997,317) (113,369,751) - (118,367,068)
Payments to suppliers (13,042,006) (73,885,261) - (86,927,267)
Net cash provided by operating activities 30,849,217 138,161,560 - 169,010,777
Cash flows from noncapital financing activities:
Proceeds from property taxes 3,207,030 101,029,964 - 104,236,994
Receipts (payments) for other activities 50,491 (140,789) - (90,298)
Net cash provided by noncapital financing activities 3,257,521 100,889,175 - 104,146,696
Cash flows from capital and related financing activities:
Capital facilities capacity charges - 20,051,888 - 20,051,888
Additions to capital assets (4,002,007) (136,578,436) 4,002,007 (136,578,436)
Disposal of capital assets 16,408,665 - (16,408,665) -
Interest paid - (44,351,789) - (44,351,789)
Principal payments on debt obligations - (32,730,000) - (32,730,000)
Contributions from (to) other governments (12,290,414) 6,416,887 12,406,658 6,533,131
Net cash provided by (used in) capital and related financing activities 116,244 (187,191,450) - (187,075,206)
Cash flows from investing activities:
Proceeds from the sale of investments 9,774,252 376,572,023 - 386,346,275
Purchases of investments (40,006,396) (419,318,849) - (459,325,245)
Interest received 196,961 17,310,264 - 17,507,225
Net cash used in investing activities (30,035,183) (25,436,562) - (55,471,745)
Net increase in cash and cash equivalents 4,187,799 26,422,723 - 30,610,522
Cash and cash equivalents, beginning of year - 75,958,979 - 75,958,979
Cash and cash equivalents, end of year 4,187,799$ 102,381,702$ -$ 106,569,501$
Reconciliation of operating income (loss) to net cash provided
by operating activities:
Operating income (loss) (8,783,172)$ 67,626,284$ -$ 58,843,112$
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation and amortization 5,018,569 108,869,259 - 113,887,828
Bad debt expense (net recoveries) - (45,354) - (45,354)
(Increase)/decrease in operating assets:
Accounts receivable - (1,838,656) - (1,838,656)
Inventories - (920,236) - (920,236)
Due from other governmental agency - 465,886 - 465,886
Prepaid expenses - (506,972) - (506,972)
Increase/(decrease) in operating liabilities:
Accounts payable - 3,728,708 - 3,728,708
Accrued expenses - (198,810) - (198,810)
Due to other governmental agency 34,613,820 - - 34,613,820
Net pension/OPEB liabilities - (36,840,589) - (36,840,589)
Compensated absences - 941,645 - 941,645
Claims and judgments - (3,119,605) - (3,119,605)
Net cash provided by operating activities 30,849,217$ 138,161,560$ -$ 169,010,777$
Noncash activities:
Unrealized gain on the fair value of investments 193,877$ 16,507,903$ 16,701,780$
Capital assets acquired through accounts payable - (4,171,751) (4,171,751)
Capital facilities capacity charges acquired - 2,541,233 2,541,233
60
ORANGE COUNTY SANITATION DISTRICT
STATISTICAL SECTION
Contents Pages
Financial Position and Trends
62 - 66
Revenue Capacity
67 - 69
Debt Capacity
70 - 72
Operating Information
73 - 76
Demographic and Economic Factors
77 - 80
This part of the comprehensive annual financial report of the Orange County Sanitation District (OCSD)
presents detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about OCSD's overall
financial health.
These schedules contain information to help the reader assess OCSD's most
significant revenue source of sewer service fees.
These schedules offer demographic information to help the reader understand the
environment within which OCSD's financial activities take place.
These schedules contain current and trend information to help the reader understand
OCSD's financial position and how OCSD's financial performance and well-being
have changed over time.
These schedules contain data to help the reader understand how the information in
OCSD's financial report relates to the services it provides and the activities it
These schedules present information to help the reader assess the affordability of
OCSD's current levels of outstanding debt and OCSD's ability to issue additional debt
in the future. All of OCSD's debt is recorded in a proprietary fund; consequently,
many of the schedules which are applicable to governmental funds are not presented.
61
ORANGE COUNTY SANITATION DISTRICT
Net Position by Component
(Dollars in Thousands)
Last Ten Fiscal Years
Fiscal Year
2010-11 1,131,063$ 379,423$ 1,510,486$
2011-12 1,125,966 471,652 1,597,618 (1)
2012-13 1,180,298 520,427 1,700,725
2013-14 1,204,706 617,589 1,822,295
2014-15 1,327,384 434,460 1,761,844 (2)
2015-16 1,429,269 489,303 1,918,572 (3)
2016-17 1,504,898 536,327 2,041,225
2017-18 1,568,118 626,671 2,194,789 (4)
2018-19 1,647,723 712,779 2,360,502
2019-20 1,678,041 860,969 2,539,010
(2) Beginning net position restated due to implementation of GASB 68.
(3) Beginning net position restated due to implementation of GASB 73.
(4) Beginning net position restated due to implementation of GASB 75.
Source: Orange County Sanitation District's Financial Management Division.
Total Net Position
Net Investment in
Capital Assets Unrestricted
(1) Beginning net position restated due to implementation of GASB 65.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Net Investment in Capital Assets Unrestricted
62
ORANGE COUNTY SANITATION DISTRICT
Revenues and Gross Capital Contributions by Source
(Dollars in Thousands)
Last Ten Fiscal Years
Permit & Total
Fiscal Service Total Property Non- Capital
Year Charges Fees Operating Taxes Interest Other Operating Contributions
2010-11 244,465$ 784$ 245,249$ 64,307$ 10,092$ 11,015$ 85,414$ 9,800$
2011-12 259,491 1,030 260,521 67,882 15,747 8,486 92,115 8,936
2012-13 303,400 1,176 304,576 79,240 (3,913) 3,781 79,108 12,797
2013-14 300,611 848 301,459 74,944 6,498 12,595 94,037 14,093
2014-15 301,548 902 302,450 79,835 4,806 9,996 94,637 17,656
2015-16 314,477 951 315,428 84,407 9,183 14,658 108,248 17,974
2016-17 312,237 1,045 313,282 88,284 3,081 27,146 118,511 16,351
2017-18 316,329 1,170 317,499 94,188 3,230 7,611 105,029 18,077
2018-19 317,291 1,199 318,490 99,534 29,102 29,962 158,598 21,032
2019-20 339,895 1,169 341,064 104,492 33,669 13,172 151,333 22,593
Source: Orange County Sanitation District's Financial Management Division.
Non-Operating RevenueOperating Revenue
Inspection
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
$225,000
$250,000
$275,000
$300,000
$325,000
$350,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Operating Revenue Non-Operating Revenue Capital Contributions
63
ORANGE COUNTY SANITATION DISTRICT
Expenses by Type
Operating Expense Non - Operating Expense
Fiscal
Year
Salaries &
Benefits Utilities
Maint &
Other
Depr &
Amort
Total
Operating
Interest
Expense Other
Total Non-
Operating
2010-11 73,112$ 6,948$ 63,328$ 49,288$ 192,676$ 29,129$ 39,245$ 68,374$
2011-12 75,642 7,405 89,272 56,051 228,370 28,700 8,433 37,133
2012-13 76,878 6,403 66,536 63,907 213,724 42,315 37,335 79,650
2013-14 79,179 6,381 60,887 99,805 246,252 40,450 1,317 41,767
2014-15 79,657 7,246 62,323 94,186 243,412 34,112 3,168 37,280
2015-16 75,576 7,246 70,679 90,502 244,003 27,597 6,482 34,079
2016-17 74,291 6,119 69,843 96,320 246,573 25,648 53,270 78,918
2017-18 67,418 7,298 70,840 97,399 242,955 35,011 1,483 36,494
2018-19 85,506 7,733 73,347 102,239 268,825 34,466 29,116 63,582
2019-20 82,917 8,622 76,794 113,888 282,221 33,833 20,428 54,261
Source: Orange County Sanitation District's Financial Management Division.
(Dollars in Thousands)
Last Ten Fiscal Years
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
$225,000
$250,000
$275,000
$300,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Operating Expense Non-Operating Expense
64
ORANGE COUNTY SANITATION DISTRICT
Change in Net Position
(Dollars in Thousands)
Last Ten Fiscal Years
Fiscal Total Total
Year
2010-11 340,463$ 261,050$ 79,413$ 1,431,073$ 1,510,486$
2011-12 361,572 265,503 96,069 1,501,549 (1)1,597,618
2012-13 396,481 293,374 103,107 1,597,618 1,700,725
2013-14 409,589 288,019 121,570 1,700,725 1,822,295
2014-15 414,743 280,692 134,051 1,627,793 (2)1,761,844
2015-16 441,650 278,082 163,568 1,755,004 (3)1,918,572
2016-17 448,144 325,491 122,653 1,918,572 2,041,225
2017-18 440,605 279,449 161,156 2,033,633 (4)2,194,789
2018-19 498,120 332,407 165,713 2,194,789 2,360,502
2019-20 514,990 336,482 178,508 2,360,502 2,539,010
(2) Beginning net position restated due to implementation of GASB 68.
(3) Beginning net position restated due to implementation of GASB 73.
(4) Beginning net position restated due to implementation of GASB 75.
Source: Orange County Sanitation District's Financial Management Division.
Change in Beginning Ending
(1) Beginning net position restated due to implementation of GASB 65.
Net PositionRevenues Expenses Net Position Net Position
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Ending Net Position by Fiscal Year
65
ORANGE COUNTY SANITATION DISTRICT
Cash and Investment Reserve Balances
(Dollars in Millions)
Last Ten Fiscal Years
Fiscal Year Total
2010-11 187$ 57$ 176$ 141$ 561$
2011-12 196 57 186 138 577
2012-13 174 57 234 135 600
2013-14 189 57 296 131 673
2014-15 177 57 194 129 557
2015-16 181 57 190 117 545
2016-17 174 57 173 107 511
2017-18 173 57 350 100 680
2018-19 177 57 429 97 760
2019-20 178 57 552 94 881
Notes:
Source: Orange County Sanitation District's Financial Management Division.
The Debt Service Requirements Reserve is held pursuant to the provisions of certificates of participation issues, and the
monies are not available for the general needs of the District.
Debt
Service
Requirements
Self-
Insurance
Capital
Improvement
Program
Cash Flow
Contingency
The Cash Flow Contingency Reserve is to fund operations, maintenance, and certificates of participation debt service
expenses for the first half of the fiscal year, prior to the receipt of the first installment of the property tax allocation and
sewer service user fees.
The Self-Insurance Reserve is to provide requirements for property damage including fire, flood and earthquake, general
liability and workers' compensation.
The Capital Improvement Program Reserve is to fund annual increments of the capital improvement program with a
target level at one half of the average annual capital improvement program over the next 10 years.
The Board of Directors of the Orange County Sanitation District has established the criteria below to determine the total
funds required as listed in the Accumulated Funds and Reserves Policy:
66
ORANGE COUNTY SANITATION DISTRICT
Sewer Service Fees
Single Family Residence Rate
Last Nine Fiscal Years and Next Fiscal Year
2011-12 267.00$
2012-13 294.00
2013-14 308.00
2014-15 316.00
2015-16 322.00
2016-17 327.00
2017-18 331.00
2018-19 335.00
2019-20 339.00
2020-21 339.00
Source: Orange County Sanitation District's Financial Management Division.
Sewer service fees are comprised of three categories: residential customers, commercial customers, and
industrial customers. Although the majority of sewer service fee revenues are from residential and commercial
customers (see the schedule of Number of Accounts and Revenues by Customer Class), the fee paid by each
residential and commercial customer is less than the individual fees paid by industrial customers. The rates for
commercial and industrial customers are derived from the base sewer service fee charged for a single-family
residence and are based on the type of business and the strength and volume of waste that is discharged into
the sewer system. Due to the complexity of the rate structure for commercial and industrial customers and
since the rates are derivatives of the single-family residence rate, only the single-family residence rate is
presented within the statistical section.
Fiscal Year
Sewer Service
Charge
150
200
250
300
350
400
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
SF
R
A
n
n
u
a
l
F
e
e
Fiscal Year
Annual Sewer Service Fees
Single Family Residence
67
ORANGE COUNTY SANITATION DISTRICT
Number of Accounts and Revenues by Customer Class
(Dollars in Millions)
Last Ten Fiscal Years
Number of Total Percentage Total Percentage
Equivalent Sewer Svc.of Sewer Number of Sewer Svc.of Sewer
Fiscal Single-Family Charge Service Charge Customer Charge Service Charge
Year Dwellings Revenue Revenues Accounts Revenue Revenues
2010-11 878,408 214.3$ 95% 479 10.1$ 5%
2011-12 874,008 233.4 96% 516 9.5 4%
2012-13 883,477 259.8 96% 527 10.8 4%
2013-14 873,308 269.0 95% 489 14.4 5%
2014-15 824,465 260.5 95% 467 14.2 5%
2015-16 863,317 278.0 96% 450 12.6 4%
2016-17 859,869 281.2 95% 466 13.8 5%
2017-18 871,338 288.4 94% 473 17.9 6%
2018-19 871,312 291.9 97% 476 9.4 3%
2019-20 904,886 306.8 96% 473 12.8 4%
Source: Orange County Sanitation District's Financial Management Division.
Residential/Commercial Industrial
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Residential/Commercial Users Industrial Users
68
ORANGE COUNTY SANITATION DISTRICT
Principal Sewer Service Customers
For the Current Fiscal Year and Nine Years Ago
Fiscal Year Ended 6/30/20 Fiscal Year Ended 6/30/11
Industrial % to Total Industrial % to Total
Permittee Service Permittee Service
Service Charge Service Charge
Customer Charges Rank Revenue Charges Rank Revenue
House Foods America Corp. (West) 1,595,677$ 1 0.47% 588,739$ 5 0.24%
Stremicks Heritage Foods, LLC 782,334 2 0.23% 756,778 4 0.31%
Pulmuone Wildwood, Inc. 778,107 3 0.23% 293,669 10 0.12%
Newport Fab, LLC (TowerJazz Semiconductor)589,702 4 0.17% 344,671 7 0.14%
House Foods America Corp. (East) 415,677 5 0.12%
MCP Foods, Inc. 408,862 6 0.12% 1,036,648 2 0.42%
Nor-Cal Beverage Co. Inc. (Main) 396,810 7 0.12%
California State University-Fullerton 332,746 8 0.10%
Patriot Wastewater, LLC (Freedom CWT) 313,793 9 0.09%
Van Law Food Products, Inc. 306,275 10 0.09%
Kimberly-Clark Worldwide, Inc. 1,533,243 1 0.63%
Alstyle Apparel-A&G Inc. 909,188 3 0.37%
Pepsi-Cola Bottling Group 440,707 6 0.18%
Dean Foods Co. of CA Inc. 316,641 8 0.13%
Schreiber Foods Inc. 298,157 9 0.12%
5,919,983$ 1.74%6,518,441$ 2.66%
Source: Orange County Sanitation District's Financial Management Division.
Although the majority of sewer service fee revenues are from residential and commercial customers (see the schedule of
Number of Accounts and Revenues by Customer Class), the fee paid by each residential and commercial customer is less
than the individual fees paid by industrial customers. Consequently, this schedule shows the largest sewer service fee
customers.
69
ORANGE COUNTY SANITATION DISTRICT
Ratio of Annual Debt Service to Total Expenses
(Dollars in Thousands)
Last Ten Fiscal Years
Total
Fiscal Principal Total Debt Operating
Year (1) Interest (4) Service (3) Expenses (2)
2010-11 25,895$ 49,426$ 75,321$ 143,388$ 52.53%
2011-12 14,370 50,975 65,345 172,319 37.92
2012-13 23,965 53,640 77,605 149,817 51.80
2013-14 39,590 53,163 92,753 146,447 63.34
2014-15 27,875 53,586 81,461 149,226 54.59
2015-16 29,405 50,301 79,706 153,501 51.93
2016-17 35,575 47,143 82,718 150,253 55.05
2017-18 32,140 43,466 75,606 145,555 51.94
2018-19 31,655 44,481 76,136 166,586 45.70
2019-20 32,730 43,664 76,394 168,333 45.38
Notes
Source: Orange County Sanitation District's Financial Management Division.
(4) - Excludes amortization of premium/discount and deferred amount.
(3) - Debt consists of certificates of participation, revenue obligations, and anticipation notes.
Ratio of Debt
Service to Total
Operating
Expenses
(2) - Excludes depreciation and amortization expense.
(1) - Excludes principal reductions due to advanced refunding.
0%
10%
20%
30%
40%
50%
60%
70%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
70
ORANGE COUNTY SANITATION DISTRICT
Debt Coverage Ratios
(Dollars in Millions)
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Operating & Non-operating Revenues:
Service Charges, Net of Refunds-Regional 214.3$ 233.4$ 259.8$ 269.0$ 260.5$ 278.0$ 281.2$ 288.4$ 291.9$ 306.8$
Service Charges, Net of Refunds-Local (3) 5.7 5.7 5.8 5.7 5.5 5.7 1.3 (0.1) - -
Industrial Sewer Service Charges 10.1 9.5 10.8 14.4 14.2 12.6 13.8 17.9 9.4 12.8
SAWPA Assessment 4.9 3.6 2.7 2.4 2.7 3.2 3.3 2.7 2.9 2.6
IRWD Assessment 18.2 14.2 25.6 19.6 26.4 26.6 36.0 9.9 36.3 20.8
Ad Valorem Taxes 64.3 67.9 79.2 74.9 79.8 84.4 88.3 94.2 99.5 104.5
Interest Earnings 10.1 15.7 (3.9) 6.5 4.8 9.2 3.1 3.2 29.1 33.7
Other Revenues 3.0 2.5 3.7 3.0 3.2 4.0 5.0 6.4 8.0 11.2
Total Revenues 330.6 352.5 383.7 395.5 397.1 423.7 432.0 422.6 477.1 492.4
Operating Expenses (1) 143.4 172.3 149.8 146.4 149.2 153.5 150.3 145.6 166.6 168.3
Net Revenues 187.2$ 180.2$ 233.9$ 249.1$ 247.9$ 270.2$ 281.7$ 277.0$ 310.5$ 324.1$
Debt Service Requirements
Principal Payments 25.9 14.4 24.0 39.6 27.9 29.4 35.6 32.1 31.7 32.7
Interest Payments 46.5 51.0 53.6 53.2 53.6 50.3 47.1 43.5 44.4 43.7
Total Debt Service Requirements 72.4$ 65.4$ 77.6$ 92.8$ 81.5$ 79.7$ 82.7$ 75.6$ 76.1$ 76.4$
Coverage Ratios 2.59 2.76 3.01 2.68 3.04 3.39 3.41 3.66 4.08 4.24
Ending Reserves (2)420.0$ 439.0$ 465.0$ 542.0$ 428.0$ 428.0$ 404.0$ 580.0$ 663.0$ 787.0$
Notes
(1) - Operating expenses exclude depreciation and amortization expenses.
(2) - Excludes debt service reserves in accordance with the District's reserve policy.
(3) - Local Sewer transferred to East Orange County Water District in FY2016-17.
Source: Orange County Sanitation District's Financial Management Division.
Fiscal Year Ending June 30,
The Orange County Sanitation District has no legal debt limits as imposed by State legislation. The District does have contractual covenants
within the existing Certificates of Participation indenture agreements which require minimum coverage ratios of 1.25. The coverage ratio is
calculated as the ratio of net annual revenues available for debt service payments to total annual debt service requirements.
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2007-08 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
71
ORANGE COUNTY SANITATION DISTRICT
Ratios of Outstanding Debt
Last Ten Fiscal Years
Debt as a
(5)(3)Percentage
Total Median of Median (4)Debt
Fiscal Outstanding Family Family Population per
Year Debt Income (1)Income Estimate (2)Capita
2010-11 1,427,792,453$ 84,200$ 0.006% 2,563,170 557.04
2011-12 1,376,404,782 85,300 0.006% 2,457,571 560.07
2012-13 1,325,928,512 84,100 0.006% 2,472,122 536.35
2013-14 1,278,998,124 84,900 0.007% 2,491,268 513.39
2014-15 1,241,140,357 85,900 0.007% 2,521,803 492.16
2015-16 1,206,722,347 85,000 0.007% 2,548,745 473.46
2016-17 1,140,679,773 88,000 0.008% 2,578,681 442.35
2017-18 1,095,737,610 92,700 0.008% 2,609,419 419.92
2018-19 1,050,502,373 97,900 0.009% 2,607,092 402.94
2019-20 1,004,215,901 103,000 0.010% 2,589,011 387.88
Notes & Data Sources
(1) - Data is for the entire County of Orange.
(2) - Data is for the estimated population served by the Orange County Sanitation District.
(3) - Data Source: U.S. Department of Housing and Urban Development.
(4) - Data Source: Demographic Research Unit, California Department of Finance.
(5) - Data Source: Orange County Sanitation District. Debt includes certificates of participation,
revenue obligations, and anticipation notes and is presented net of original issuance premiums.
72
ORANGE COUNTY SANITATION DISTRICT
Comparison of the Volume of Wastewater Treated
With Revenues and Expenses
Last Ten Fiscal Years
Millions of
Gallons of
Waste-
water
Treated
Fiscal Per
Year Day
2010-11 207 1,816.62$ 192,676$ 68,374$ 245,249$ 85,414$
2011-12 201 1,871.47 228,370 37,133 260,521 92,115
2012-13 200 1,906.01 213,724 79,650 304,576 79,108
2013-14 198 1,936.64 246,252 41,767 301,459 94,037
2014-15 187 2,070.97 243,412 37,280 302,450 94,637
2015-16 183 2,110.43 244,003 34,079 315,428 108,248
2016-17 188 2,054.56 246,573 78,918 313,282 118,511
2017-18 185 2,069.30 242,955 36,494 317,499 105,029
2018-19 191 2,274.73 268,825 63,582 318,490 158,598
2019-20 188 2,421.83 282,221 54,261 341,064 151,333
Source: Orange County Sanitation District.
Total
Non-Operating
Revenues
(In Thousands)
Total
Operating
(In Thousands)
Revenues
Non-Operating
(In Thousands)
Operating
(In Thousands)
TotalTotal
CostsCosts
Gallons
Collection,
Treatment
& Disposal
Cost per
Million
Total expenses in FY 2019-20 increased $75 million, or 28.9 percent since FY 2010-11, primarily as a result of
expansion of the Capital Improvement Program (CIP) and increase in operational services levels with OCSD's
decision beginning in FY 2002-03 to maximize existing secondary treatment facilities as OCSD moved from a 50/50
mix of primary and secondary effluent treatment to meeting secondary treatment standards as of December 31,
2012.
Depreciation expense represents 85.6 percent of the increase as a result of the expansion in capital facilities and the
financing associated with the expansion. Increases were also realized in maintenance, chemicals, utilities, and other
operating costs, primarily due to the increase in the levels of treatment referred to above. These increases are offset
by a decrease in other non-operating expense due to a decrease in integration contributions credited to IRWD. In FY
2019-20, personnel expenses decreased 3.0 percent over the prior year. This decrease is mainly caused by a
reduction in the OCERS retirement contribution rate as a result of paying down the unfunded actuarial accrued
liability in September and November 2019. The full-time equivalent positions authorized increased by 4 in FY 2019-
20.
As depicted from the chart above, actual wastewater treatment flows were 207 mgd in FY 2010-11. The last several
years of California's record-breaking drought and water conservation efforts have resulted in FY 2019-20 flows of
only 188 mgd, a decrease of 19 mgd or 9.18 percent since FY 2010-11.
73
ORANGE COUNTY SANITATION DISTRICT
Authorized Full-time Equivalents by Function
Last Ten Fiscal Years
Fiscal Year Ending June 30,
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General Management (1)13 13 12 12 14 15 15 15 14 15
Human Resources (2)27 17 16 18 16 27 27 27 27 27
Administrative Services (2)85 111 111 110 111 98 99 99 100 101
Environmental Services (3)- - - - - - 91 91 91 92
Facilities Support Services (3)70 84 81 78 76 63 - - - -
Technical Services 102 - - - - - - - - -
Engineering 112 128 125 123 123 127 116 116 116 121
Operations and Maintenance 230 281 281 283 284 294 279 287 288 284
Total FTEs 639 634 626 624 624 624 627 635 636 640
Notes
(1) - Management Discretion positions used on a temporary basis have been excluded from FTE count.
(2) - In 2016, Risk Management moved from Administrative Services to Human Resources Department.
(3) - In 2017, District reorganization created Environmental Services and eliminated Facilities Support Services.
Source: Orange County Sanitation District's Financial Management Division.
0
100
200
300
400
500
600
700
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General Management (1)Human Resources (2)Administrative Services (2)
Environmental Services (3)Facilities Support Services (3)Technical Services
Engineering Operations and Maintenance
74
ORANGE COUNTY SANITATION DISTRICT
Biosolids Produced
Last Ten Fiscal Years
Fiscal Year Wet Tonnage
2010-11 253,557
2011-12 280,572
2012-13 274,957
2013-14 279,362
2014-15 275,943
2015-16 283,052
2016-17 288,771
2017-18 284,039
2018-19 254,616 (1)
2019-20 209,000
Source: Orange County Sanitation District's Environmental Compliance Division.
(1) Beginning in Fiscal Year 2018-19, biosolids produced were reduced due to the commissioning of
dewatering centrifuges at both treatment plants.
180,000
200,000
220,000
240,000
260,000
280,000
300,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Wet Tonnage by Fiscal Year
75
ORANGE COUNTY SANITATION DISTRICT
Capital Asset Statistics
Last Ten Fiscal Years
Number Primary Secondary
Fiscal of Pump Treatment Treatment
Year Stations Capacity (1) Capacity (1)
2010-11 587 17 376 212
2011-12 572 17 376 332
2012-13 572 17 376 332
2013-14 580 17 376 332
2014-15 580 17 376 332
2015-16 570 17 376 332
2016-17 396 (2)17 376 332
2017-18 396 17 376 332
2018-19 389 17 376 332
2019-20 388 17 376 332
Notes
(1) - Capacity is presented as million gallons treated per day.
(2) - In FY 2016-17, local sewers were transferred to East Orange County Water District.
Source: Orange County Sanitation District
Miles of
Trunk &
Subtrunk
Sewers
76
ORANGE COUNTY SANITATION DISTRICT
Demographic Statistics
Covering The Entire County of Orange (1)
Last Ten Fiscal Years
Total (6)
(2)Personal Per Capita Public (7)
Fiscal Population Income Personal School Unemployment
Year Estimates (in thousands)Income Enrollment Rate
2010-11 3,030,000 154,131,535$ (3)50,868$ 84,200$ 502,903 9.2%
2011-12 3,056,000 169,584,000 (4)55,492 85,300 502,195 7.9%
2012-13 3,082,000 166,370,000 (4)53,981 84,100 501,801 6.1%
2013-14 3,114,000 179,141,000 (4)57,528 84,900 500,487 5.2%
2014-15 3,148,000 193,359,000 (4)61,423 85,900 497,116 4.3%
2015-16 3,183,000 199,442,000 (4)62,658 85,000 493,030 4.4%
2016-17 3,194,000 208,653,000 (4)65,327 88,000 490,430 3.8%
2017-18 3,221,000 220,368,000 (4)68,416 92,700 485,835 3.3%
2018-19 3,222,000 230,180,000 (4)71,440 97,900 478,823 3.0%
2019-20 3,194,000 226,531,000 (4),(8)70,924 103,000 473,612 13.6%
Notes and Data Sources
(2) - Data Source: Demographic Research Unit, California Department of Finance.
(3) - Data Source: Bureau of Economic Analysis, U.S. Department of Commerce.
(4) - Data Source: A. Gary Anderson Center for Economic Research, Chapman University.
(5) - Data Source: U.S. Department of Housing and Urban Development.
(6) - Data Source: California Department of Education, Educational Demographics Unit.
(7) - Data Source: State of California, Employment Development Department as of June 30 of each fiscal year.
(8) - Forecasted number.
Median
(5)
(1) -The Orange County Sanitation District services 479 square miles or 60% of the total 799 square miles that
make up the boundaries of the County of Orange.
Income
Family
77
ORANGE COUNTY SANITATION DISTRICT
Estimated Population Served by the
Orange County Sanitation District
June 30, 2020
Anaheim 357,325
Brea 45,629
Buena Park 81,998
Costa Mesa 114,778
Cypress 49,272
Fountain Valley 55,878
Fullerton 141,863
Garden Grove 174,801
Huntington Beach 201,281
Irvine 281,707
La Habra 63,371
La Palma 15,492
Los Alamitos 11,567
Newport Beach 85,780
Orange 140,065
Placentia 51,494
Santa Ana 335,052
Seal Beach 24,992
Stanton 39,077
Tustin 80,382
Villa Park 5,766
Westminster 92,421
Yorba Linda 68,650
Subtotal Cities (1)2,518,641
Estimated Population Served in
Unincorporated Areas (2)70,370
2,589,011
Data Sources:
(1) Demographic Research Unit, State of California Department of Finance
(2) Center for Demographic Research, California State University, Fullerton.
Population
as of
January 1, 2020
78
ORANGE COUNTY SANITATION DISTRICT
Principal Orange County Employers (1)
For the Current Fiscal Year and Nine Years Ago
Fiscal Year Ended 6/30/20 Fiscal Year Ended 6/30/11
Percentage of Percentage of
Number of Total County Number of Total County
Employers Employees (2)Rank Employment (3)Employees (4)Rank Employment (5)
Walt Disney Co. 32,000 1 2.32% 20,000 2 1.40%
University of California, Irvine 24,714 2 1.79% 20,650 1 1.45%
County of Orange 17,365 3 1.26% 17,655 3 1.24%
St. Joseph Health 14,000 4 1.02% 11,965 4 0.84%
Kaiser Permanente 8,200 5 0.60% 5,397 9 0.38%
Albertsons Southern California 7,535 6 0.55%
Boeing Co. 6,600 7 0.48% 8,060 5 0.57%
Hoag Memorial Hospital 6,500 8 0.47%
Wal-Mart Stores Inc. 6,200 9 0.45%
Target Corp. 6,000 10 0.44% 5,325 10 0.37%
BankAmerica Corp. 6,500 6 0.46%
Yum! Brands Inc 6,500 7 0.46%
SuperValu, Inc. 5,900 8 0.41%
Total 129,114 9.38%107,952 7.58%
Notes & Data Sources
(1) - Data is for the entire County of Orange.
(2) - Data Source: Orange County Business Journal Book of Lists published November 2019
(3) - Data Source: State of California, Employment Development Department.
- Percentage is calculated by dividing employees by total employment of 1,377,000 as of June 2020.
(4) - Data Sources: Orange County Business Journal Book of Lists published November 2010; County of Orange
(5) - Data Source: State of California, Employment Development Department.
- Percentage is calculated by dividing employees by total employment of 1,423,600 as of June 2011.
79
ORANGE COUNTY SANITATION DISTRICT
Operating Indicators
June 30, 2020
Consolidated Revenue Area
County of Orange (unincorporated areas)
Cities:
Anaheim Huntington Beach Santa Ana
Brea Irvine Seal Beach
Buena Park La Habra Stanton
Costa Mesa La Palma Tustin
Cypress Los Alamitos Villa Park
Fountain Valley Newport Beach Westminster
Fullerton Orange Yorba Linda
Garden Grove Placentia
Special Districts:
Costa Mesa Sanitary District
Midway City Sanitary District
Yorba Linda Water District
Revenue Area No. 14
County of Orange (unincorporated areas)
Cities:
Irvine
Orange
Tustin
Special District:
Irvine Ranch Water District
Governing Body:25-member Board of Directors
Authorized Full-Time Equivalent Employees:640
Operational Date:July 1, 1954
Authority:California Health & Safety Code Section 4700 et. seq.
Services:Wastewater collection, treatment, and disposal
Service Area:479 square miles
Population Served:2.6 million
Total Miles of Sewers (including force mains):388 miles
Number of Pumping Stations:17
Wastewater System Treatment Capacities (Million Gallons per Day)
Actual Flows Existing Secondary
FY19-20 Treatment Capacity
Plant 1 119 182
Plant 2 69 150
Total 188 332
Source: Orange County Sanitation District's Financial Management Division.
District Organization:The Orange County Sanitation District is one consolidated district made up of two
revenue areas which service unincorporated county areas and twenty-three cities and related special districts,
as follows:
Existing Primary
376
168
208
Treatment Capacity
80
ORANGE COUNTY SANITATION DISTRICT
OTHER DATA & TRENDS
Information within this section consists of other data and trends including
additional annual disclosures as required by the Sanitation District's debt
covenants beyond what is allowed to be reported in the Statistical Section.
81
Net Unrealized
Cost Market Value Gain/(Loss)
Shares Par Base Base % of Total Base
INVESTMENT PORTFOLIO:
CASH & CASH EQUIVALENTS (U.S. DOLLAR):
FIRST AMERICAN SHORT TERM FDS 10,129,778$ 10,129,778$ 10,129,778$ 1.27% -$
COMMERCIAL PAPER 10,000,000 4,998,750 9,997,900 1.25% 4,999,150
US AGENCY 5,000,000 9,997,815 4,999,550 0.62% (4,998,265)
SUBTOTAL - CASH & CASH EQUIVALENTS 25,129,778 25,126,343 25,127,228 3.14% 885
FIXED INCOME SECURITIES (U.S. DOLLAR):
CONSUMER DISCRETIONARY 9,064,000 9,174,702 9,483,848 1.19% 309,146
CONSUMER STAPLES 4,630,000 4,647,869 4,994,583 0.62% 346,714
ENERGY 9,000,000 8,942,542 9,319,070 1.17% 376,528
FINANCE 91,059,000 91,403,503 95,303,699 11.92% 3,900,196
HEALTH CARE 2,000,000 1,948,640 2,131,080 0.27% 182,440
INDUSTRIAL 4,410,000 4,388,275 4,607,339 0.58% 219,064
INFORMATION TECHNOLOGY 24,870,000 24,813,717 26,041,565 3.26% 1,227,848
INVESTMENT GRADE-MUNI REVENUE 1,800,000 1,800,000 1,829,068 0.23% 29,068
MTG RELATED SECURITY 30,789,602 30,845,476 31,371,850 3.92% 526,374
SHORT TERM FUNDS 1,500,000 1,500,000 1,507,395 0.19% 7,395
SUPRANATIONAL 42,215,000 41,939,678 42,940,726 5.37% 1,001,048
U.S. AGENCY 197,090,000 198,627,671 205,051,809 25.65% 6,424,138
U.S. GOVERNMENT 319,504,478 317,991,120 327,905,250 41.02% 9,914,130
U.S. GOVERNMENT TIPS 11,232,208 11,087,488 11,731,592 1.47% 644,104
SUBTOTAL - FIXED INCOME SECURITIES 749,164,288 749,110,681 774,218,874 96.86% 25,108,193
TOTAL INVESTMENT PORTFOLIO 774,294,066$ 774,237,024 799,346,102 100.00% 25,109,078$
DEMAND DEPOSITS AND CASH ON HAND 9,062,762 9,062,762
MONIES HELD WITH FISCAL AGENTS 6,998 6,998
MONIES WITH THE LOCAL AGENCY INVESTMENT FUND 72,018,699 72,372,513
TOTAL CASH AND INVESTMENTS 855,325,483$ 880,788,375$
Source: US Bank and Orange County Sanitation District's Financial Management Division.
ORANGE COUNTY SANITATION DISTRICT
Cash and Investment Portfolio
As of June 30, 2020
82
ORANGE COUNTY SANITATION DISTRICT
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
Tax Rate
OCSD
1958 OCSD's
General Average
Fiscal Basic Obligation Total Share of
Year Levy Bonds Tax Rate Basic Levy
2010-11 1.00% 0.00% 1.00% 1.64%
2011-12 1.00% 0.00% 1.00% 1.64%
2012-13 1.00% 0.00% 1.00% 1.64%
2013-14 1.00% 0.00% 1.00% 1.65%
2014-15 1.00% 0.00% 1.00% 1.63%
2015-16 1.00% 0.00% 1.00% 1.62%
2016-17 1.00% 0.00% 1.00% 1.61%
2017-18 1.00% 0.00% 1.00% 1.59%
2018-19 1.00% 0.00% 1.00% 1.59%
2019-20 1.00% 0.00% 1.00% 1.58%
Notes
Source: Orange County Auditor-Controller's Office.
In 1978, California voters passed Proposition 13 which set the property tax rate at a
1.00% fixed amount of assessed value. This 1.00% is shared by all taxing agencies
within which the subject property resides. In addition to the 1.00% fixed amount,
property owners were charged taxes as a percentage of assessed property values for
the payment of OCSD general obligation bonds (which were paid in full in fiscal year
1998-99).
83
ORANGE COUNTY SANITATION DISTRICT
Assessed and Estimated Actual Value of Taxable Property
(Dollars In Thousands)
Last Ten Fiscal Years
Percent
Change in
Fiscal Assessed
Year Secured Unsecured Total Value
2010-11 298,099,034$ 6,238,834$ 304,337,868$ -0.27%
2011-12 302,526,970 6,163,979 308,690,949 1.43%
2012-13 310,451,986 5,901,040 316,353,026 2.48%
2013-14 323,064,994 6,220,505 329,285,499 4.09%
2014-15 343,102,030 7,378,643 350,480,673 6.44%
2015-16 365,267,850 6,936,768 372,204,618 6.20%
2016-17 385,137,024 6,642,312 391,779,336 5.26%
2017-18 409,310,248 6,990,609 416,300,857 6.26%
2018-19 435,911,818 7,213,037 443,124,855 6.44%
2019-20 461,217,033 7,489,937 468,706,970 5.77%
Source: Orange County Auditor-Controller's Office.
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum
rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property
may be increased by an inflation factor which is limited to a maximum increase of 2%. With a few exceptions,
property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is
reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the
only data currently available with respect to the actual market value of taxable property and is subject to the
limitations described above. Consequently, the assessed and estimated values are the same.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Secured Unsecured
84
ORANGE COUNTY SANITATION DISTRICT
Property Tax and User Fee Levies and Collections
(Dollars in Thousands)
Last Ten Fiscal Years
(1)
Total Tax Current Tax Percent Total Tax % of Total % of Pass-
Fiscal and User and User Fee of Levy Delinquent and User Fee Collection Outstanding Delinquencies Through
Year Fee Levy Collection Collected Collection Collection to Levy Delinquencies to Levy Payments
2010-11 292,646$ 292,689$ 100.01 120$ 292,809$ 100.06 (43)$ (0.01) -$
2011-12 314,077 314,133 100.02 121 314,254 100.06 (56) (0.02) 3,116
2012-13 340,298 340,156 99.96 64 340,220 99.98 142 0.04 14,687
2013-14 356,607 356,108 99.86 76 356,184 99.88 499 0.14 7,274
2014-15 362,978 362,927 99.99 108 363,035 100.02 51 0.01 8,447 (2)
2015-16 371,502 370,170 99.64 637 370,807 99.81 1,332 0.36 9,199 (2)
2016-17 381,226 380,078 99.70 608 380,686 99.86 1,148 0.30 9,751
2017-18 386,538 385,673 99.78 741 386,414 99.97 865 0.22 11,353
2018-19 394,641 393,809 99.79 786 394,595 99.99 832 0.21 12,524
2019-20 401,604 400,865 99.82 931 401,796 100.05 739 0.18 13,469
Notes
Source: Orange County Auditor-Controller's Office.
(1)Upon dissolution of California redevelopment agencies during fiscal year 2011-12, property tax increment formerly remitted
to OCSD by its member city redevelopment agencies was instead deposited into the newly formed Redevelopment Property
Tax Trust Fund (RPTTF) from which the Auditor-Controller makes disbursements on behalf of the successor agencies. There
is no tax levy associated with these collections; thus, they have been excluded from the "% of Total Collection to Levy"
calculation.
(2)In fiscal year 2014-15 and 2015-16, the County did not bill user fees for wholly exempt agencies not subject to property
taxes. In fiscal year 2014-15 and 2015-16, OCSD internally billed user fees of $5 million and $4.5 million, respectively, to
wholly exempt agencies. These amounts have been excluded from the levy and collection amounts above, as only tax and user
fees included on County property tax billings are shown in this schedule.
$270,000
$290,000
$310,000
$330,000
$350,000
$370,000
$390,000
$410,000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Total Tax and User Fee Levy Total Tax and User Fee Collection
85
ORANGE COUNTY SANITATION DISTRICT
Property Value and Construction
Covering The Entire County of Orange (1)
(Dollars In Thousands)
Last Ten Fiscal Years
Non-
Residential
Construction (3)Total
Fiscal Calendar No. of Construction
Year Value Year Value Units Value Value (3)
2010-11 420,751,575$ 2011 1,300,019$ 4,807 1,236,973$ 2,536,992$
2011-12 424,769,642 2012 1,265,430 6,163 1,560,509 2,825,939
2012-13 432,902,274 2013 1,521,280 10,453 2,653,728 4,175,008
2013-14 447,749,156 2014 1,993,154 10,636 2,640,484 4,633,638
2014-15 476,303,290 2015 2,196,000 10,897 2,834,000 5,030,000
2015-16 504,650,360 2016 2,487,000 12,134 3,160,000 5,647,000
2016-17 531,052,158 2017 2,062,000 10,294 3,217,000 5,279,000
2017-18 563,662,044 2018 3,507,000 8,105 2,776,000 6,283,000
2018-19 598,901,016 2019 3,097,000 9,816 2,528,000 5,625,000
2019-20 632,758,256 2020 2,408,000 8,313 2,140,000 4,548,000 (4)
Notes and Data Sources
(2) - Data Source: Orange County Auditor-Controller's Office.
(3) - Data Source: A. Gary Anderson Center for Economic Research, Chapman University.
(4) - Forecasted numbers.
(1)-The Orange County Sanitation District services 479 square miles or 60% of the total 799 square miles
that make up the boundaries of the County of Orange.
Residential
Construction (3)
Assessed
Property Value (2)
86
ORANGE COUNTY SANITATION DISTRICT
Insurance in Force
As of June 30, 2020
Type Insurer Deductible
All-Risk Property
Fire and Other Perils Public Entity Property $500,000 per $1 billion/occurrence
Insurance Program occurrence
(multiple insurers)
Flood Public Entity Property $2500,000 per $300 million/occurrence
Insurance Program occurrence
Earthquake Two insurers 5% per structure,$25 million
(certain structures only)min. $5,000,000
Boiler & Machinery Public Entity Property $25,000 to $100 million/occurrence
Insurance Program $350,000
(multiple insurers)
Crime Insurance Alliant Crime Insurance Program $25,000 $5 million
Cyber Insurance Lloyd's of London (Beazley)$100,000 $2 million
$500,000 for Breach Response
Excess Great American $500,000 $40 million/occurrence
General Liability (first $10 million layer); and annual aggregate
Berkley National
($20 million layer
excess $10 million)
Great American
($10 million layer
excess $30 million)
Travel & Accident Chubb Group of Insurance None Accidental Death & Dismemberment:
Companies Class 1: Elected Officials,
$500,000 per occurrence
Class 2: Employees, 10X annual
salary, up to $500,000 per occur.
Excess Workers'CSAC Excess Insurance $1,000,000 Unlimited statutory coverage
Compensation Authority Program Each Accident each accident, each employee
$4 million employer's liability
Pollution Liability CSAC Excess Insurance $75,000 $10,000,000 per loss
Authority Program
Watercraft
Liability Atlantic Specialty $2,500 BI /$10 million
$10,000 All other
Hull & Machinery Atlantic Specialty $10,000
Pollution Liability Great American Ins. Co,$25,000 $5 million
Source: Orange County Sanitation District's Risk Management Office.
Limit
$600,000
87
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88
ORANGE COUNTY SANITATION DISTRICTFINANCIAL MANAGEMENT DIVISION
10844 Ellis Avenue Fountain Valley, California 92708-7018
714.962.2411 www.ocsd.com
06/30/20
Comprehensive Annual Financial Report
For the Year Ended June 30, 2020
Administration Committee
November 10, 2020
Presenter: Wally Ritchie, Controller
1
CAFR Overview
Meet criteria for GFOA Award -25 Consecutive Awards
Present OCSD’s Financial Information
3 Areas of Review
•Financial Position
•Available Resources
•Financial Performance
Independent Auditor –Macias Gini & O’Connell, LLP
2
Financial Position
•Net Position -$2.5 billion
•Change in Net Position -$178.5 million
(Dollars in thousands)
June 30, 2020 June 30, 2019 Increase (Decrease)% Increase (Decrease)
Total Revenues 492,397 477,088 15,309 3.2%
Total Expenses (336,482) (332,407) 4,075 1.2%
Income before capital
contributions 155,915 144,681 11,234 7.8%
Capital facilities capacity charges 22,593 21,032 1,561 7.4%
Increase in net position 178,508 165,713 12,795 7.7%
Beginning net position 2,360,502 2,194,789 165,713 7.6%
Ending net position $ 2,539,010 $ 2,360,502 $ 178,508 7.6%
CAFR pg. 6 CAFR pg. 65 3
Capital Assets
CAFR pg. 8 4
Available Resources
CAFR pg. 21
•Cash & Investments -$880.8 million
•Increase of $120.3 million
5
Financial Performance –Operations
Category 6/30/2020 6/30/2019 Change %
Salaries and benefits $ 82.9 M $ 85.5 M $ (2.6 M) -3.0%
Utilities 8.6 M 7.7 M 0.9 M 11.7%
Supplies, repairs and
maintenance 44.1 M 31.8 M 12.3 M 38.7%
Contractual services 24.6 M 26.1 M (1.5 M) -5.8%
Feasibility studies 5.1 M 5.9 M (0.8 M) -13.6%
Other 3.0 M 9.6 M (6.6 M) 68.8%
Total $ 168.3 M $ 166.6 M $ 1.7 M 1.0%
•$12.3 million increase in supplies, repairs and maintenance due to $9.9 million increase
in repairs and maintenance services and materials
Information from CAFR pg. 13
and FY 2019 CAFR pg. 13 6
November 10, 2020
Agenda
•Introductions
•Our Audit Responsibilities
•Audit Focus Areas
•Deliverables
•Required Communications to the Administration
Committee
•Questions?
1
Our Responsibilities
•Perform an audit of OCSD’s financial statements as of and for the year ended June 30, 2020.
•The objective of an audit of financial statements is to express an opinion that the financial statements are in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP).
•The audit is performed in accordance with auditing standards generally accepted in the United States of America.
•Those standards require that we plan and perform the audit to obtain reasonable, rather than absolute, assurance about whether OCSD’s financial statements are free of material misstatement whether caused by fraud or error.
2
•Cash and cash equivalents
•Investments
•Accounts and other receivables
•Capital assets
•Net pension asset -OCERS
•Accounts payable and accrued liabilities
•Debt and related accounts
•Pension and OPEB liabilities and related accounts
•Net position classifications
•Proper revenue recognition and expense cutoff testing
•Adequacy and completeness of footnote disclosures
Audit Focus Areas
3
Deliverables
•Unmodified opinion on OCSD’s basic financial statements included in
the Comprehensive Annual Financial Report –GFOA submission
•U.S. Bank debt covenant compliance opinion
•Union Bank debt covenant compliance opinion
•Southern California Edison tangible net worth calculation agreed-upon
procedures report
•GANN Limit Calculation agreed-upon procedures report
•Communications to the Administration Committee including summary
of audit results for OCSD
4
Auditor’s Communication with the Administration Committee
•Auditor’s responsibility under professional standards.
•We affirm our compliance with all ethical requirements regarding independence.
•Accounting practices –adoption of or changes in accounting policies, alternative treatments –GASB Statement No. 95, Postponement of the Effective Dates of Certain
Authoritative Guidance and GASB Statement No. 84, Fiduciary Activities and GASB Statement
No. 90 Majority Equity Interests –an amendment of GASB Statements No. 14 & No. 61.
•There were no auditor or management proposed adjustments or reclassifications made to the financial statements.
•There were no uncorrected misstatements related to current year.
•There were no difficulties encountered in performing our audit.
•There were no disagreements with management.
•Management representations were provided to us.
•There were no consultations with other accountants.
•There were no major issues encountered during the fiscal year that were a condition to our retention as auditors.
•There were no material weaknesses or significant deficiencies noted for FY 19/20.
5
Questions?
Orange County Sanitation District
ADMINISTRATION COMMITTEE
Agenda Report
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
File #:2020-1316 Agenda Date:11/10/2020 Agenda Item No:8.
FROM:James D. Herberg, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
BIOSOLIDS THERMAL CONVERSION RFI UPDATE
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
Information Item.
BACKGROUND
The 2019 Strategic Plan Biosolids Management Policy paper states that the Orange County
Sanitation District (Sanitation District)"will issue a request for information (RFI)to research and
evaluate available emerging markets such as biosolids-to-energy options or other biosolids recycling
operations within a 200-mile radius of the Sanitation District to potentially develop a scope of work
and minimum requirements for a future contract solicitation".
The Biosolids Master Plan strategy also calls for maintaining diversity of biosolids management
options by investigating emerging markets such as thermal conversion of biosolids.A biosolids-to-
energy option RFI was completed in April 2020.The results of the RFI process will be presented
along with anticipated next steps.
RELEVANT STANDARDS
·Maintain and adhere to appropriate internal planning documents (Strategic Plan,Biosolids
Master Plan)
·Safe, beneficial reuse of Biosolids
·Comply with environmental permit requirements
PROBLEM
The Sanitation District has completed the RFI process and is ready to move to the next step.New
and anticipated regulations may limit future options for biosolids recycling and there are only a small
number of established Biosolids Thermal Conversion contractors with limited capacity.
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File #:2020-1316 Agenda Date:11/10/2020 Agenda Item No:8.
PROPOSED SOLUTION
The Sanitation District plans to strategically establish contracts with Biosolids Thermal Conversion
operators to secure capacity for beneficial reuse and/or disposal of biosolids in preparation for new
and anticipated regulations.
TIMING CONCERNS
Several Biosolids Thermal Conversion Operations will be coming online in 2021,and the Sanitation
District would like to secure capacity and demonstrate effectiveness of these technologies in advance
of new and anticipated regulations.
RAMIFICATIONS OF NOT TAKING ACTION
The Sanitation District may be facing inadequate offsite biosolids management capacity if future
environmental regulations limit biosolids recycling options.
ADDITIONAL INFORMATION
The RFI found two viable Biosolids Thermal Conversion options that have available near-term and
long-term capacity that do not require guaranteed biosolids tonnages.These facilities have been
funded for construction independent of the Sanitation District’s potential financial contributions,
making these options low risk.
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 Printed on 11/2/2020Page 2 of 2
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ORANGE COUNTY SANITATION DISTRICT
COMMON ACRONYMS
ACWA Association of California
Water Agencies LOS Level Of Service RFP Request For Proposal
APWA American Public Works
Association MGD Million Gallons Per Day RWQCB Regional Water Quality
Control Board
AQMD Air Quality Management
District MOU Memorandum of
Understanding SARFPA Santa Ana River Flood
Protection Agency
ASCE American Society of Civil Engineers NACWA National Association of Clean Water Agencies SARI Santa Ana River Interceptor
BOD Biochemical Oxygen Demand NEPA National Environmental Policy
Act SARWQCB Santa Ana Regional Water
Quality Control Board
CARB California Air Resources
Board NGOs Non-Governmental
Organizations SAWPA Santa Ana Watershed
Project Authority
CASA California Association of
Sanitation Agencies NPDES National Pollutant Discharge
Elimination System SCADA Supervisory Control And
Data Acquisition
CCTV Closed Circuit Television NWRI National Water Research
Institute SCAP
Southern California
Alliance of Publicly Owned Treatment Works
CEQA California Environmental
Quality Act O & M Operations & Maintenance SCAQMD South Coast Air Quality
Management District
CIP Capital Improvement
Program OCCOG Orange County Council of
Governments SOCWA South Orange County
Wastewater Authority
CRWQCB California Regional Water
Quality Control Board OCHCA Orange County Health Care
Agency SRF Clean Water State
Revolving Fund
CWA Clean Water Act OCSD Orange County Sanitation District SSMP Sewer System Management Plan
CWEA California Water Environment Association OCWD Orange County Water District SSO Sanitary Sewer Overflow
EIR Environmental Impact Report OOBS Ocean Outfall Booster Station SWRCB State Water Resources
Control Board
EMT Executive Management Team OSHA Occupational Safety and
Health Administration TDS Total Dissolved Solids
EPA US Environmental Protection Agency PCSA
Professional
Consultant/Construction
Services Agreement
TMDL Total Maximum Daily Load
FOG Fats, Oils, and Grease PDSA Professional Design Services
Agreement TSS Total Suspended Solids
gpd gallons per day PFAS
Per- and Polyfluoroalkyl
Substances WDR Waste Discharge
Requirements
GWRS Groundwater Replenishment
System PFOA Perfluorooctanoic Acid WEF Water Environment
Federation
ICS Incident Command System PFOS Perfluorooctanesulfonic Acid WERF Water Environment & Reuse Foundation
IERP Integrated Emergency
Response Plan POTW Publicly Owned Treatment
Works WIFIA Water Infrastructure
Finance and Innovation Act
JPA Joint Powers Authority ppm parts per million WIIN Water Infrastructure Improvements for the
Nation Act
LAFCO Local Agency Formation
Commission PSA Professional Services
Agreement 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) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and OCSD 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 GWRS
process and is eliminated using hydrogen peroxide with extra ultra-violet treatment.
NATIONAL BIOSOLIDS PARTNERSHIP (NBP) – An alliance of the NACWA and WEF, with advisory support from the EPA. 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.
PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) – A large group (over 6,000) of human-made compounds that are resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing, cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects.
PERFLUOROOCTANOIC ACID (PFOA) – An ingredient for several industrial applications including carpeting, upholstery, apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon).
PERFLUOROOCTANESULFONIC ACID (PFOS) – A key ingredient in Scotchgard, a fabric protector made by 3M, and used in numerous stain repellents.
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.
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.
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
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. OCSD’s service area is in the Santa Ana River Watershed.