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HomeMy WebLinkAbout02-10-2021 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 OCSanClerk@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 Tuesday, February 9, 2021. You may also submit comments and questions for the Administration 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. February 3, 2021 NOTICE OF MEETING ADMINISTRATION COMMITTEE ORANGE COUNTY SANITATION DISTRICT Wednesday, February 10, 2021 – 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 Wednesday, February 10, 2021 at 5:00 p.m. ADMINISTRATION COMMITTEE MEETING DATE BOARD MEETING DATE 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 11/10/21 11/17/21 * 12/08/21 12/15/21 * JANUARY DARK 01/26/22 * 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: February 10, 2021 Time: 5:00 p.m. Adjourn: COMMITTEE MEMBERS (13) Chad Wanke, Chair Glenn Parker, Vice-Chair Brad Avery Art Brown Kim Carr Mark Chirco Rose Espinoza Marshall Goodman Patrick Harper Anthony Kuo Andrew Nguyen 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 1/27/2021 BOARD OF DIRECTORS Complete Roster AGENCY/CITIES ACTIVE DIRECTOR ALTERNATE DIRECTOR Anaheim Stephen Faessel Jose Diaz Brea Glenn Parker Steven Vargas Buena Park Art Brown Connor Traut Cypress Stacy Berry Anne Hertz Fountain Valley Patrick Harper Glenn Grandis Fullerton Jesus J. Silva Nick Dunlap Garden Grove Steve Jones John O’Neill Huntington Beach Kim Carr Dan Kalmick Irvine Anthony Kuo Farrah N. Khan La Habra Rose Espinoza Jose Medrano La Palma Marshall Goodman Nitesh Patel Los Alamitos Mark A. Chirco Ron Bates Newport Beach Brad Avery Joy Brenner Orange Mark Murphy Kim Nichols Placentia Chad Wanke Ward Smith Santa Ana Johnathan Ryan Hernandez Nelida Mendoza Seal Beach Sandra Massa-Lavitt Schelly Sustarsic Stanton David Shawver Carol Warren Tustin Ryan Gallagher Austin Lumbard Villa Park Chad Zimmerman Robert Collacott Sanitary/Water Districts Costa Mesa Sanitary District Bob Ooten Art Perry Midway City Sanitary District Andrew Nguyen Sergio Contreras 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 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 10, 2021 - 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 Wednesday, February 10, 2021 CALL TO ORDER PLEDGE OF ALLEGIANCE Clerk of the Board 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 OCSanClerk@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 February 9, 2021. You may also submit comments and questions for the Administration 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. 1.2020-1391APPROVAL OF MINUTES RECOMMENDATION: Approve Minutes of the Regular Meeting of the Administration Committee held December 9, 2020. Originator:Kelly Lore Agenda Report 12-09-2020 Administration Committee Minutes Attachments: 2.2021-1456GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST RECOMMENDATION: Recommend to the Board of Directors to: Page 1 of 4 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 10, 2021 A. Receive and file Orange County Sanitation District purchases made under the General Manager’s authority for the period of October 1, 2020 to December 31, 2020; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2020 to December 31, 2020: ·FONTAINE-AQUANOX - Replacement Parts, Equipment and Service ·GOOCH THERMAL SYSTEMS, INC - Spiral Heat Exchangers ·HIDROSTAL, LLC - Pumps and Replacement Parts ·RODNEY HUNT, INC. - Diversion Gates and Actuators ·SMARTCOVER SYSTEMS - Sewer Level Monitors Originator:Lorenzo Tyner Agenda ReportAttachments: 3.2020-1326MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2020 RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Mid-Year Financial Report for the period ended December 31, 2020. Originator:Lorenzo Tyner Agenda Report FY 2020-21 Mid-Year Financial Report 12-31-2020 Attachments: 4.2020-1366BUSINESS ANALYSIS SERVICES FOR RESOURCE PROTECTION DIVISION RECOMMENDATION: Recommend to the Board of Directors to: A. Award a Professional Consultant Services Agreement to EEC Environmental, Inc. for Pretreatment Program Consulting Services, for the procurement of Business Analysis services to document Resource Protection division business processes, Specification No. CS-2020-1167BD, for a total amount not to exceed $385,625; and B. Approve a contingency in the amount of $38,563 (10%). Originator:Lorenzo Tyner Agenda Report CS-2020-1167BD Final Contract Attachments: Page 2 of 4 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 10, 2021 NON-CONSENT: 5.2021-1437PURCHASE OF AN IMAGING FLOWCYTOBOT (IFCB) RECOMMENDATION: Approve a sole source purchase order to McLane Research Laboratories, Inc. for an Imaging FlowCytobot for an amount not to exceed $148,939 including estimated tax and shipping. Originator:Lan Wiborg Agenda ReportAttachments: 6.2021-1447CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FISCAL YEAR 2021-22 BUDGET UPDATE RECOMMENDATION: Approve the FY 2021-22 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2021-22 budget update. Originator:Lorenzo Tyner Agenda Report FY21-22 Budget Assumptions Budget Calendar FY21-22 Item 6 PPP_Budget Assumptions for FY21-22 Attachments: INFORMATION ITEMS: 7.2020-1327INVESTMENT PERFORMANCE RESULTS RECOMMENDATION: Information Item. Originator:Lorenzo Tyner Agenda Report Item 7 PPP_Reserves and Investments Chandler Presentation Attachments: DEPARTMENT HEAD REPORTS: CLOSED SESSION: None. Page 3 of 4 ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, February 10, 2021 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, March 10, 2021 at 5:00 p.m. Page 4 of 4 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2020-1391 Agenda Date:2/10/2021 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 December 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. OC SAN 21-01 ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Minutes of the Administration Committee meeting held December 9, 2020 Orange County Sanitation District Printed on 2/2/2021Page 1 of 1 powered by Legistar™ Orange County Sanitation District Minutes for the ADMINISTRATION COMMITTEE Wednesday, December 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, December 9, 2020 at 5:00 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 in accordance with Governor's Executive Order No. N-29-20 due to the Coronavirus Pandemic. Director Glenn Parker led the Flag Salute. ROLL CALL AND DECLARATION OF QUORUM: Roll call was taken and a quorum was declared present, as follows: PRESENT: ABSENT: Chad Wanke, Mark Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, David Shawver, John Withers, Patrick Harper (Alternate), Anthony Kuo (Alternate), Robert Ooten (Alternate) and Nitesh Patel (Alternate) None STAFF PRESENT: Jim Herberg, General Manager; Kelly Lore, Clerk of the Board; and Brian Engeln were present in the Board Room. 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; Jennifer Cabral; Mortimer Caparas; Tina Knapp; Wally Ritchie; and Thomas Vu were in attendance telephonically. OTHERS PRESENT: Brad Hogin, General Counsel was present in the Board Room; and La Palma Council Member Marshall Goodman was present telephonically. PUBLIC COMMENTS: None. The Clerk of the Board indicated that late communication was distributed pertaining to agenda Item No. 2 which provided the actual amount of the invoice to be approved for payment. REPORTS: Chair Wanke welcomed the four Alternate Directors attending the meeting. General Manager Herberg did not provide a report. Page 1 of 4 ADMINISTRATION COMMITTEE Minutes December 9, 2020 CONSENT CALENDAR: 1. APPROVAL OF MINUTES 2020-1362 Originator: Kelly Lore MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Administration Committee held November 10, 2020. AYES:Chad Wanke, Richard Murphy, Mark Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, David Shawver, John Withers, Patrick Harper (Alternate), Anthony Kuo (Alternate), Robert Ooten (Alternate) and Nitesh Patel (Alternate) NOES:None ABSENT:None ABSTENTIONS:None 2. PAYMENT OF ANNUAL NATIONAL POLLUTANT DISCHARGE AND ELIMINATION SYSTEM (NPDES) PERMIT FEES 2020-1363 Originator: Lan Wiborg MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve payment of $712,888 for annual NPDES ocean discharge permit fees. AYES:Chad Wanke, Richard Murphy, Mark Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, David Shawver, John Withers, Patrick Harper (Alternate), Anthony Kuo (Alternate), Robert Ooten (Alternate) and Nitesh Patel (Alternate) NOES:None ABSENT:None ABSTENTIONS:None NON-CONSENT: Board Chair Shawver appeared to be disconnected from the meeting during Item No. 3. 3. ADOPT ORANGE COUNTY SANITATION DISTRICT’S DEBT POLICY 2020-1360 Originator: Lorenzo Tyner Assistant General Manager Lorenzo Tyner provided a brief introduction to the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Page 2 of 4 ADMINISTRATION COMMITTEE Minutes December 9, 2020 Directors to: Adopt Resolution No. OCSD 20-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Adopting the Orange County Sanitation District’s Debt Policy and Repealing Resolution No. OCSD 18-16”. AYES:Chad Wanke, Richard Murphy, Mark Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, John Withers, Patrick Harper (Alternate), Anthony Kuo (Alternate), Robert Ooten (Alternate) and Nitesh Patel (Alternate) NOES:None ABSENT:David Shawver ABSTENTIONS: None Board Vice-Chair Withers appeared to be disconnected from the meeting during Item No. 4. 4. INVEST AND/OR REINVEST ORANGE COUNTY SANITATION 2020-1325 DISTRICT’S FUNDS AND ADOPT INVESTMENT POLICY STATEMENT Originator: Lorenzo Tyner Controller Wally Ritchie provided a PowerPoint presentation including information regarding Local Agency Investment Guidelines, Senate Bill No. 998 regarding allowable limits, Local Agency Investment Fund, and a summary of the proposed changes to the Investment Policy. 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, Authorizing the Orange County Sanitation District’s Treasurer to Invest and/or Reinvest the Orange County Sanitation District’s Funds, Adopting the Orange County Sanitation District’s Investment Policy Statement and Performance Benchmarks, and Repealing Resolution No. OCSD 19-21”. AYES: Chad Wanke, Richard Murphy, Mark Murphy, Andrew Nguyen, Glenn Parker, Erik Peterson, Tim Shaw, David Shawver, Patrick Harper (Alternate), Anthony Kuo (Alternate), Robert Ooten (Alternate) and Nitesh Patel (Alternate) NOES:None ABSENT:John Withers ABSTENTIONS:None Page 3 of 4 ADMINISTRATION COMMITTEE Minutes December 9, 2020 INFORMATION ITEMS: None. 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: Alternate Director Bob Ooten requested an information item be provided regarding No Drugs Down the Drain. ADJOURNMENT: Chair Wanke declared the meeting adjourned at 5:22 p.m. to the Regular meeting to be held on Wednesday, February 10, 2021 at 5:00 p.m. Submitted by: __________________ Kelly A. Lore, MMC Clerk of the Board Page 4 of 4 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1456 Agenda Date:2/10/2021 Agenda Item No:2. 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 Orange County Sanitation District purchases made under the General Manager’s authority for the period of October 1, 2020 to December 31, 2020; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2020 to December 31, 2020: ·FONTAINE-AQUANOX - Replacement Parts, Equipment and Service ·GOOCH THERMAL SYSTEMS, INC - Spiral Heat Exchangers ·HIDROSTAL, LLC - Pumps and Replacement Parts ·RODNEY HUNT, INC. - Diversion Gates and Actuators ·SMARTCOVER SYSTEMS - Sewer Level Monitors 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(s) 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 2/2/2021Page 1 of 4 powered by Legistar™ File #:2021-1456 Agenda Date:2/10/2021 Agenda Item No:2. PRIOR COMMITTEE/BOARD ACTIONS December 2016 -Minute Order 12(b)authorized the General Manager to ratify additions or deletions to the OEM Sole Source list on the General Manager’s quarterly approved purchases agenda report. ADDITIONAL INFORMATION In accordance with Board purchasing policies, Ordinance No. OCSD-52 <https://www.ocsd.com/Home/ShowDocument?id=24914>, the General Manager has authority to approve and execute purchases between $50,000 and $100,000. Below is a summary of General Manager approved purchases, in amounts exceeding $50,000, for the second quarter of fiscal year 2020-21: Vendor Name Amount Department Description/Discussion AQUIS $89,000.00 Operations & Maintenance Project No. FR1-0009-Laboratory Building HVAC Repair at Plant 1 Sole Source Justification 2325 Reason: Unique Product/Service ARC $90,000.00 Administrative Services Copy Center Services 1/1/21 - 12/31/21 with 4 Optional Renewal Periods Specification No. S-2020-1177BD CORTECH ENGINEERING $79,265.11 Administrative Services Stock Item Purchase of SEEPEX Rotor and Stator Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 CORTECH ENGINEERING $86,400.00 Administrative Services Stock Item Purchase of Flowserve Pump Board Approved OEM Sole Source List M.O. 5/27/20, Item 14 EMERSON PROCESS MANAGEMENT LLLP -REMIT TO $63,030.00 Administrative Services Three-year Guardian Support of CSI 2130 Machinery Health Analyzer 2/1/2021 - 1/31/24 Sole Source Justification 2317 Reason: Unique Product/Service GEA MECHANICAL EQUIPMENT US, INC. $95,000.00 Operations & Maintenance On-call Maintenance Service Contract for P1 -101 GEA Westfalia Thickening and Dewatering Centrifuges Sole Source Justification 2334 Reason: OEM Parts/Materials Available from Only One Source HACH C/O PONTON INDUSTRIES $53,825.00 Operations & Maintenance Purchase of All Weather Refrigerated Samplers Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 MISCO WATER $51,432.00 Operations & Maintenance Purchase of Eight (8) Watson-Marlow Pump Assembly Sole Source Justification 2342 Reason: OEM Parts/Materials Available from Only One Source OVIVO USA, LLC $54,318.59 Administrative Services Stock Item Purchase of EIMCO Water Technologies Motorized Rotary Distributor (Trickling Filter) Parts Board Approved OEM Sole Source List M.O. 2/28/18, ITEM 13 PUMPACTION CORP - SHG USA $59,617.28 Operations & Maintenance Purchase of Four (4) Putzmeister Wear Parts Kits for Sludge Transfer Pumps Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 ROCKWELL ENGINEERING & EQUIPMENT CO $59,920.00 Operations & Maintenance Purchase of Two (2) Vaughan’s Portable Skid Pumps Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 SMARTCOVER SYSTEMS $80,892.18 Operations & Maintenance Purchase and Installation of Seventeen (17) SmartCover Systems Sewer Level Monitors and Components Sole Source Justification 2354 Reason: Unique Product/Service THE DAVID ROUND COMPANY $51,014.00 Operations & Maintenance Purchase of One (1) Ruger Mobile Floor Crane Sole Source Justification 2333 Reason: Unique Product/Service TRANE COMPANY - EQUIPMENT $77,492.38 Operations & Maintenance HVAC Replacements at Plant Water PS and 12KV Service Center at P1 OMNIA Partners Contract # 15-JLP-023, in Accordance with Ordinance OCSD-52 Section 2.03 (B) Cooperative Purchases WESTERN EPG PRODUCTS, INC.* $71,664.00 Administrative Services Stock Purchase of Multiple Johnson Matthey Selective Catalytic Reduction (SCR) and Oxidation Catalyst Units for Plant 2 Board Approved OEM Sole Source List M.O. 5/23/18, Item 12 WESTERN EPG PRODUCTS, INC.* $72,647.65 Administrative Services Stock Purchase of Multiple Johnson Matthey Selective Catalytic Reduction (SCR) and Oxidation Catalyst Units for Plant 1 Board Approved OEM Sole Source List M.O. 5/23/18, Item 12 XPERT SOLUTIONS, INC. $90,787.20 Administrative Services Blanket PO to Provide Palo Alto Network Items and Services 10/13/2020 - 10/12/2021 Specification No. E-2020-1197BD Orange County Sanitation District Printed on 2/2/2021Page 2 of 4 powered by Legistar™ File #:2021-1456 Agenda Date:2/10/2021 Agenda Item No:2. Vendor Name Amount Department Description/DiscussionAQUIS$89,000.00 Operations &Maintenance Project No. FR1-0009-Laboratory BuildingHVAC Repair at Plant 1 Sole SourceJustification 2325 Reason: UniqueProduct/ServiceARC$90,000.00 AdministrativeServices Copy Center Services 1/1/21 - 12/31/21 with4 Optional Renewal Periods SpecificationNo. S-2020-1177BDCORTECHENGINEERING$79,265.11 AdministrativeServices Stock Item Purchase of SEEPEX Rotor andStator Board Approved OEM Sole SourceList M.O. 12/14/16, Item 12CORTECHENGINEERING$86,400.00 AdministrativeServices Stock Item Purchase of Flowserve PumpBoard Approved OEM Sole Source ListM.O. 5/27/20, Item 14EMERSONPROCESSMANAGEMENT LLLP-REMIT TO $63,030.00 AdministrativeServices Three-year Guardian Support of CSI 2130Machinery Health Analyzer 2/1/2021 -1/31/24 Sole Source Justification 2317Reason: Unique Product/ServiceGEA MECHANICALEQUIPMENT US,INC.$95,000.00 Operations &Maintenance On-call Maintenance Service Contract for P1-101 GEA Westfalia Thickening andDewatering Centrifuges Sole SourceJustification 2334 Reason: OEMParts/Materials Available from Only OneSourceHACH C/O PONTONINDUSTRIES $53,825.00 Operations &Maintenance Purchase of All Weather RefrigeratedSamplers Board Approved OEM SoleSource List M.O. 12/14/16, Item 12MISCO WATER $51,432.00 Operations &Maintenance Purchase of Eight (8) Watson-Marlow PumpAssembly Sole Source Justification 2342Reason: OEM Parts/Materials Available fromOnly One Source OVIVO USA, LLC $54,318.59 Administrative Services Stock Item Purchase of EIMCO Water Technologies Motorized Rotary Distributor (Trickling Filter) Parts Board Approved OEM Sole Source List M.O. 2/28/18, ITEM 13 PUMPACTION CORP - SHG USA $59,617.28 Operations & Maintenance Purchase of Four (4) Putzmeister Wear Parts Kits for Sludge Transfer Pumps Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 ROCKWELL ENGINEERING & EQUIPMENT CO $59,920.00 Operations & Maintenance Purchase of Two (2) Vaughan’s Portable Skid Pumps Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 SMARTCOVER SYSTEMS $80,892.18 Operations & Maintenance Purchase and Installation of Seventeen (17) SmartCover Systems Sewer Level Monitors and Components Sole Source Justification 2354 Reason: Unique Product/Service THE DAVID ROUND COMPANY $51,014.00 Operations & Maintenance Purchase of One (1) Ruger Mobile Floor Crane Sole Source Justification 2333 Reason: Unique Product/Service TRANE COMPANY - EQUIPMENT $77,492.38 Operations & Maintenance HVAC Replacements at Plant Water PS and 12KV Service Center at P1 OMNIA Partners Contract # 15-JLP-023, in Accordance with Ordinance OCSD-52 Section 2.03 (B) Cooperative Purchases WESTERN EPG PRODUCTS, INC.* $71,664.00 Administrative Services Stock Purchase of Multiple Johnson Matthey Selective Catalytic Reduction (SCR) and Oxidation Catalyst Units for Plant 2 Board Approved OEM Sole Source List M.O. 5/23/18, Item 12 WESTERN EPG PRODUCTS, INC.* $72,647.65 Administrative Services Stock Purchase of Multiple Johnson Matthey Selective Catalytic Reduction (SCR) and Oxidation Catalyst Units for Plant 1 Board Approved OEM Sole Source List M.O. 5/23/18, Item 12 XPERT SOLUTIONS, INC. $90,787.20 Administrative Services Blanket PO to Provide Palo Alto Network Items and Services 10/13/2020 - 10/12/2021 Specification No. E-2020-1197BD *Two purchase orders were processed as stock items were purchased for separate Plants. Additionally,in accordance with Board purchasing policies,Ordinance No.OCSD-52,the General Manager has authority to approve and execute maintenance and repair Services Task Orders between $50,000 and $300,000.Below is a summary of General Manager approved maintenance and repair Services Task Orders,in amounts exceeding $50,000,for the second quarter of fiscal year 2020-21: Vendor Name Amount Department Description/Discussion CHARLES KING CO INC. $184,900.00 Operations & Maintenance Headworks 1 Wet Weather Bypass at Plant No.1 Specification No. TOB-2020-1200 of Master Service Contract S-2018-942BD-2 W.A. RASIC CONSTRUCTION CO., INC. $62,495.00 Operations & Maintenance Grating Replacement at Plant No. 1 Specification No. TOB-2020-1206 of Master Service Contract S-2018-942BD-7 Orange County Sanitation District Printed on 2/2/2021Page 3 of 4 powered by Legistar™ File #:2021-1456 Agenda Date:2/10/2021 Agenda Item No:2. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: N/A Orange County Sanitation District Printed on 2/2/2021Page 4 of 4 powered by Legistar™ ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2020-1326 Agenda Date:2/10/2021 Agenda Item No:3. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2020 GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Mid-Year Financial Report for the period ended December 31, 2020. BACKGROUND Included in this consolidated report are the following mid-year financial reports for the period ended December 31, 2020: ·Mid-Year Budget Review The Budget Review Summary provides the Directors,staff,and general public with a comprehensive overview of the mid-year financial results of the Orange County Sanitation District (Sanitation District) for the period ended December 31, 2020. ·Mid-Year Treasurer’s Report This section reports on financial portfolio performance with respect to the Sanitation District’s funds.Both Long-Term and Liquid Operating Monies Portfolios are summarized.A performance summary table can be found on page 2 of this agenda report.The report also contains information on the U.S.and global economic outlook from the Sanitation District’s investment manager, Chandler Asset Management. ·Mid-Year Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. RELEVANT STANDARDS ·Quarterly financial reporting Orange County Sanitation District Printed on 2/2/2021Page 1 of 3 powered by Legistar™ File #:2020-1326 Agenda Date:2/10/2021 Agenda Item No:3. ADDITIONAL INFORMATION The mid-year treasurer’s report contained within the Consolidated Financial Reports for the period ended December 31,2020 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 December 31, 2020 Liquid Operating Monies (%)Long-Term Operating Monies (%) Total Rate of Return Benchmark Total Rate of Return Benchmark 3 Months 0.03 0.03 0.21 0.15 6 Months 0.07 0.07 0.50 0.39 9 Months 0.14 0.09 1.83 1.43 12 Months 0.87 0.67 4.39 4.43 Annualized Since Inception 30 Nov 2014 1.12 0.99 2.26 2.22 ·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 $225.5 M $633.0 M Market Value $225.7 M $657.6 M ·Modified duration of the portfolio compared to the Benchmark: Liquid Operating Long-Term District Policy < 0.50 < 5.00 Benchmark 0.15 2.59 Portfolio 0.33 2.44 ·Dollar change in value of the portfolio for a one percent (1%) change in interest rates: Liquid Operating - $736,951 Long- Term - $16,020,589 ·None of the portfolios are currently invested in reverse repurchase agreements. Orange County Sanitation District Printed on 2/2/2021Page 2 of 3 powered by Legistar™ File #:2020-1326 Agenda Date:2/10/2021 Agenda Item No:3. ·The percent of the Liquid Operating Monies portfolio maturing within 90 days: 45.6% ·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 - 0.9% Cost Maturity Date Moody S&P Fitch SLMA 2008-9 A $10,772.14 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 A2 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. CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Mid-Year Consolidated Financial Report for the period ended December 31, 2020 Orange County Sanitation District Printed on 2/2/2021Page 3 of 3 powered by Legistar™ ORANGE COUNTY SANITATION DISTRICTMid-Year Financial Report for the period ended December 31, 2020 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 Mid-Year Financial Report This Page Intentionally Left Blank Executive Summary Page 1 Consolidated Financial Reports For the Mid-Year Ended December 31, 2020 Included in this consolidated report are the following quarterly financial reports for the period ended December 31, 2020:  Mid-Year Budget Review: The Consolidated Financial Reports Section provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Sanitation District through the mid-year ended December 31, 2020. Contained within the Consolidated Financial Reports is the budget-to-actual status of the Collections, Treatment and Disposal Operations, the Capital Improvement Program, Debt Service Outlays, and the Self-Insurance Program. Also included is a Capital Assets Schedule as of December 31, 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 December 31, 2020: a) Most major expense categories are anticipated to be at or below budget. b) Total revenues are at 53.7 percent of the $479.2 million budget. Except for Intra District Sewer Use-IRWD, Capital Assessments-IRWD, Capital Facilities Capacity Charges, Interest Earnings, CIP Reimbursements, CNG Sales, Other Revenues, and Other Sales, most major revenue sources are currently tracking close to or exceeding revenue estimates. Overall, total revenues are projected to approximate budget at year-end. More detailed information on revenues is provided within Section 1 – Pages 4 through 6. FY 2020-21 Mid-Year Financial Report Page 2 c) Collection, Treatment and Disposal Costs: As indicated within the Consolidated Financial Reports Section of this report, the net operating requirements through the mid-year of $87.0 million is currently tracking at 49.9 percent of the $174.3 million budget. In addition, net operating expenses have increased $6.5 million or 8.1 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 $2,569 based on flows of 184 million gallons per day. This is $29 per million gallons, or 1.1 percent higher 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 $145.7 million, or 98.7 percent of the board approved cash outlay of $147.6 million. The actual cash outlay spending through the mid-year is $63.7 million, or 43.2 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.  Mid-Year Treasurer’s Report This section reports on financial portfolio performance with respect to the Sanitation District’s funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the national economic outlook from the Sanitation District’s money manager, Chandler Asset Management (Chandler). Chandler notes the Long-Term Portfolio quarterly return of 21 basis points outperformed the ICE BAML 1-5 Year US Corp/Govt Rated AAA-A Index return of 15 basis points, while the Liquid Operating Monies Portfolio quarterly return of 3 basis points matched the ICE BAML 3-Month US Treasury Bill Index return. Chandler further notes that while they remain optimistic about the longer-term outlook, recent economic data suggests that the economy has lost momentum as virus cases have risen. They believe the near-term will remain challenging as the labor market remains under pressure and many regions have renewed business restrictions due to the virus. However, the passage of a new $900 billion COVID- 19 fiscal relief bill should help cushion the economy over the next few months, and they believe the incoming Presidential administration will have a keen focus on accelerating vaccine distribution and getting the economy back on track. While the vaccine rollout has gotten off to a slow start, they expect more widespread distribution of vaccines in the second and third quarter of 2021. They also expect Executive Summary Page 3 the Fed’s highly accommodative monetary policy framework will continue to provide support for the financial markets. The Federal Open Market Committee (FOMC) kept monetary policy unchanged at their December meeting as expected, with the fed funds target rate in a range of 0.0% to 0.25%. The Fed intends to remain highly accommodative until their goals of maximum employment and higher inflation are achieved. The Fed’s summary of economic projections continues to signal that the target fed funds rate will remain unchanged until at least 2023, as policymakers do not expect inflation to exceed 2.0% during that timeframe. Until the Fed has made substantial progress toward achieving their dual mandate of maximum employment and price stability, they have set a floor for monthly asset purchases of at least $80 billion per month of Treasuries and $40 billion per month of agency mortgage-backed securities. Notably, the Fed's outlook for GDP over the next few years was revised higher and the outlook for unemployment was revised lower compared with their previous forecasts in September, which suggests increased optimism. Nevertheless, the outlook remains uncertain and Fed Chair Powell indicated that the Fed would increase policy accommodation further if progress toward their dual mandate slows. The Treasury yield curve steepened in December, due at least in part by favorable developments on the vaccine front and anticipation of improving economic activity in 2021. The yield on 2-year Treasuries was down slightly to 0.12% while the yield on 10-year Treasuries was up nearly eight basis point to 0.92%. In 2020, Treasury yields declined but the curve steepened as short-term rates declined more than long-term rates. The 3-month T-bill yield was down 149 basis points, the 2-year Treasury yield was down 145 basis points, and the 10-Year Treasury yield was down 100 basis points, year-over-year. The Consumer Price Index (CPI) was up 1.2% year-over-year in November, unchanged from October. Core CPI (CPI less food and energy) was up 1.6% year- over-year in November, also unchanged from October. The Personal Consumption Expenditures (PCE) index was up 1.1% year-over-year in November, versus up 1.2% year-over-year in October. Core PCE, which is the Fed's primary inflation gauge, was up 1.4% year-over-year in November, unchanged from October. Inflation remains below the Fed's target. Economic Outlook Increasing coronavirus case counts and the subsequent decrease in consumer mobility was poised to adversely impact the market and economic outlook in the fourth quarter of 2020. However, in early November markets received unambiguous positive news with the results of the clinical trial for the Pfizer BioNTech Vaccine being released and exhibiting a very high efficacy rate for the COVID-19 coronavirus. The timeline for a viable vaccine was consistent with market expectations however the high efficacy rate was viewed as “new news” FY 2020-21 Mid-Year Financial Report Page 4 which changed sentiment and propelled risk assets higher. Markets began to aggressively position for the “reopening trade” as both investment grade and high yield credit spreads moved tighter, and equity market breadth improved materially with the small cap sector outperforming the large cap sector. Consistent with the improved global outlook correlated with the vaccine developments, the US dollar moved lower and Treasury yields moved moderately higher, with longer maturity yields moving higher at a faster pace as the Treasury curve began to steepen. Political rhetoric related to the election and additional fiscus stimulus dominated the headlines throughout the quarter. Despite the almost daily back and forth between Congressional leadership, late in the quarter additional fiscal stimulus was finally passed, which should help to stabilize the economy as the vaccination process quickens in Q1 and Q2 of 2021. The incoming Biden administration is also expected to seek further fiscal support to enhance economic growth in 2021. Additionally, the Federal Reserve continues to provide strong support to the economic recovery despite the sunsetting of several liquidity tools implemented at the height of the crisis in March and April of 2020. The Chandler team does not have any immediate concerns about the expiration of the Fed backstops. In the event the market becomes dislocated again due to another exogenous shock to the economy they have a high level of confidence the US Treasury and Federal Reserve would work closely together to reimplement the tools to stabilize markets. The Federal Reserve also updated their Summary of Economic Projections in mid- December. The Fed continues to emphasize a willingness to keep policy highly stimulative until their dual mandate of full employment and stable prices is achieved. Notably, the Fed is looking for inflation to average 2% over the cycle and is expressing a willingness to tolerate inflation above the target for a period of time to make up for the shortfalls below the target over the past decade. Market based measure of inflation continue to price in a higher probability of the Fed meeting their inflation objective as the Ten Year TIP breakeven spread – a market based measure of longer term inflation expectations – increased to 1.99% as of December 31 compared to 1.63% at the end of September. The Chandler team expects the Fed Funds rate to remain at the zero lower bound for all of 2021 and is closely monitoring market based measures of inflation; the Ten Year TIP breakeven spread needs to trade in a consistent range of 2.30% to 2.60% for a period of time before Fed officials would consider altering their stance on the zero lower bound in Chandler’s view. Economic data continues to recover from the shock to the system in March and April of 2020. However, many metrics will not fully recover until a large portion of the domestic population has achieved immunity from the coronavirus. Nonfarm payrolls were robust through the summer, but the rate of improvement slowed late in the year. The three month moving average on nonfarm payroll growth moved down to 283k in December compared to 1,321k as of September. The U3 unemployment rate is currently at 6.7%, after having topped out at 14.8% in April 2020 while the U6 Underemployment rate remains elevated at 11.7% compared to 22.9% in April. The manufacturing indices have been a bright spot, with the ISM Executive Summary Page 5 Manufacturing Index reaching a YTD high in December at 60.7 with the ISM Non- Manufacturing Index most recent reading at 57.2. The consumer facing portion of the economy continues to face strong headwinds, however the Chandler team is confident substantial pent-up demand has the potential to propel the economy forward in the 2nd half of 2021. The current fiscal and monetary policy settings should continue to provide a constructive backdrop for asset prices in 2021 despite the secular changes to the economy due to the pandemic.  Mid-Year Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. FY 2020-21 Mid-Year Financial Report Page 6 This Page Intentionally Left Blank Consolidated Financial Reports Section 1 - Page 1 Mid-Year Financial Report December 31, 2020 Financial Management is pleased to present the FY 2020-21 mid-year financial report. This report provides a comprehensive overview of the financial activities of the Sanitation District and reports on the status of all capital projects in progress. A summary of the sections contained within this report is provided below. Operating Budget Review: This section reports on collection, treatment, and disposal net operating requirements. At December 31, 2020, 49.9 percent, or $87.0 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 $6.5 million, or 8.1 percent, mainly due to an increase of $3.1 million in Repairs and Maintenance, $2.5 million in Salaries and Benefits, $1.0 million in Other Operating Supplies, $802,000 in Operating Materials and Supplies, and $609,000 in Utilities, partially offset by a decrease of $640,000 in Contractual Services, $294,000 in Professional Services, $128,000 in Training and Meetings, and an increase of $341,000 in indirect costs allocated out to capital projects. 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 December 31, 2020, 53.7 percent, or $257.3 million of the FY 2020-21 budgeted total revenues of $479.2 million has been recognized. Revenues increased from the same period last year by $9.3 million, or 3.8 percent, mainly due to an increase of $10.7 million in property taxes, $4.9 million in Sludge Disposal-IRWD, $1.5 million in Service Fees, $1.4 million in CIP Reimbursements, $404,000 in Intra District Sewer Use-IRWD, and $361,000 in Other Revenues, offset primarily by a decrease of $6.1 million in Interest Earnings, $3.3 million in Capital Facilities Capacity Charges, $266,000 in Capital Assessments-IRWD, $121,000 in Wastehauler fees, $102,000 in Other Sales, and $100,000 in Permit Fees. These and other variances that factor into this net increase in revenues are discussed in more detail below. Overall, staff expects the total revenues to be at or slightly below budget at the end of the fiscal year. Significant operating results as of December 31, 2020 include the following:  Salaries, Wages and Benefits – Personnel costs of $51.9 million are on target at 50.9 percent of the budget through the mid-year of FY 2020-21. The budget is based on a 5 percent vacancy factor, and staffing is 18 full-time equivalents (FTEs), or 2.8 percent below the total 639 FTEs approved in the FY 2020-21 budget. Salary and benefit costs are $2.5 million or 5.1 percent higher than the $49.4 million incurred in the same period last year, mainly due to an increase of $1.7 million in salaries and wages resulting from cost of living adjustments included in the current Memorandums of Understanding for all employee bargaining units, and an increase FY 2020-21 Mid-Year Financial Report Section 1 - Page 2 of $514,000 in group insurance costs. Net operating personnel costs are expected to approximate budget throughout the remainder of the year.  Administrative Expenses – Administrative Expenses totaled $1.0 million, or 51.2 percent of the $2.0 million budget through December 31. These costs are $57,000, or 5.2 percent lower at December 31 in comparison with the prior year, mainly due to decreases of $59,000 in purchases of small computer items including HP Elitebooks, $33,000 in books and publications such as various engineering design standards and manuals of practice, and $20,000 in Office Supplies, partially offset by an increase of $40,000 in Minor Furniture & Fixtures for installation of additional cubicles and a warehouse shelving system. It is anticipated that administrative costs will approximate budget at year-end.  Printing and Publication Expenses – Printing and Publication Expenses totaled $112,000, or 27.0 percent of the $415,000 budget through December 31. These costs are $35,000, or 23.9 percent lower at December 31 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 $184,000 are below target at 17.1 percent of the $1.1 million budget through December 31. 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 $128,000, or 41.1 percent. Total training and meeting costs are anticipated to be below budget at year-end.  Operating Materials and Supplies – Operating materials and supplies of $10.5 million is on target at 49.1 percent of the $21.3 million budget through December 31. Operating Materials and Supplies are higher than the prior year by $802,000, or 8.3 percent, primarily due to an increase in Tools of $294,000 for large purchases including portable samplers and smart sensor sewer covers, Odor Control of $250,000 mostly due to the increase in unit price and usage of calcium nitrate, and Disinfection of $145,000 for purchase of sodium hypochlorite (bleach). Based on current processes, operating materials and supplies are anticipated to approximate budget at year-end.  Contractual Services – Contractual services is below target at $8.4 million, or 43.6 percent of the $19.2 million budget through December 31. Solids Removal costs, budgeted at $12.4 million, comprise the majority of this expense category at $5.8 million, or 47.0 percent of its budget at December 31. Contractual Services is lower by $640,000, or 7.1 percent over the same period last year, due to the decrease of $731,000 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 $235,000 in Solids Removal costs due to reduced biosolids production attributable to the new Consolidated Financial Reports Section 1 - Page 3 dewatering centrifuges. These decreases are partially offset by increases of $166,000 in Janitorial costs attributable to additional cleaning services for COVID- 19, $66,000 in Oxygen for liquid oxygen and associated vaporization system maintenance, $63,000 in Temporary Services as a result of position vacancies in the current period, and $59,000 in Other Waste Disposal for hazardous waste packing, transportation, and disposal. County Service Fees totaled only $11,000, or 2.2 percent of the $489,000 budget through the mid-year as the preponderance of these fees are billed by the County in the fourth quarter. Total contractual services costs are anticipated to approximate budget at year-end.  Professional Services – Professional services costs totaled $1.5 million, or 26.8 percent of the $5.7 million budget through December 31. Professional service costs, such as Legal, Audit & Accounting, Environmental Scientific Consulting, Industrial Hygiene Services, Labor Negotiation Services, and Other Professional Services, are proportionately low through December 31 due to a variety of factors such as timing of services and re-evaluation of need for services. These costs are $294,000, or 16.1 percent lower at December 31 in comparison with the prior year, mainly due to a decrease of $346,000 in Legal Services and $60,000 in Software Program Consulting, offset by an increase of $170,000 in Engineering Services. It is anticipated that the costs for this category will be below budget at year-end.  Research and Monitoring – Research and monitoring costs totaled $842,000, or 64.5 percent of the $1.3 million budget through December 31. These costs are $56,000, or 7.1 percent higher at December 31 in comparison with the prior year, due to increases of $57,000 in Environmental Monitoring costs for ocean water quality analysis and $25,000 in Research costs reflecting the higher annual contribution to Southern California Coastal Water Research Project, offset by a decrease of $26,000 in Air Quality Monitoring costs for emissions testing. Total research and monitoring costs are anticipated to approximate budget at year- end.  Repairs and Maintenance – Repair and maintenance costs totaled $15.5 million, or 54.7 percent of the $28.4 million budget through December 31. These costs are $3.1 million, or 24.7 percent higher at December 31 in comparison with the prior year, mainly due to an increase in repair and maintenance services such as digester cleaning, mechanical rehabilitation of primary clarifier tanks, and information technology software maintenance. It is anticipated that the costs for this category will approximate budget at year-end.  Utilities – Utilities costs totaled $5.1 million, or 60.5 percent of the $8.4 million budget through December 31. These costs are $609,000, or 13.7 percent higher at December 31 in comparison with the prior year, primarily due to an increase of $322,000 for Power, $205,000 for Natural Gas, and $106,000 for Water because of greater demand on these resources by the new biosolids dewatering centrifuges. In addition, utility costs for the mid-year are typically more than the proportionate budget due to increased summer electricity rates administered by Southern FY 2020-21 Mid-Year Financial Report Section 1 - Page 4 California Edison in the first three months of the fiscal year. It is anticipated that the costs will approximate or be slightly above budget at year-end.  Other Operating Supplies – Other operating supplies costs totaled $2.3 million, or 61.4 percent of the $3.7 million budget through December 31. Property and General Liability Insurance, budgeted at $2.2 million, comprise the majority of this expense category at $1.1 million. These costs are $242,000, or 28.2 percent higher at December 31 in comparison with the prior year, primarily due to an increase in budgeted in-lieu premium charges to maintain recommended reserve balances. In addition, Regulatory Operating Fees is $795,000 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 December 31, revenues from service fees are at $168.4 million, or 56.5 percent of the $298.1 million budget and property taxes are at $58.3 million, or 58.4 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 increase of $1.5 million, or 0.9 percent in service fee revenue over the prior year is primarily due to the timing of receipts. The property tax revenue increase of $10.7 million, or 22.6 percent over the prior year is a result of the timing of tax receipts, primarily related to redevelopment agencies, as well as growth in assessed property values. These revenues are expected to approximate budget at year-end.  Revenues – Permit Fees – Permit Fees are at $6.2 million, or 48.6 percent of the $12.8 million budget. The revenues through the mid-year are lower than the same period last year by $87,000, or 1.4 percent, largely in part to the impact COVID-19 had on these users’ flow. Additionally, the number of permittees fluctuates from year to year as businesses establish or cease their operations. Permit fees revenues are expected to approximate or below budget at year-end.  Revenues – Inter District Sewer Use – SAWPA and SBSD – Inter District Sewer revenues-SAWPA and SBSD are at $1.4 million, or 51.8 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 mid-year are higher than the same period last year by $15,000, or 1.1 percent due to an increase 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 $988,000, or 21.2 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 mid-year are higher than the same period last year by $404,000, or 69.1 percent, mainly due to an increase of $611,000 in operating Consolidated Financial Reports Section 1 - Page 5 and maintenance charges to IRWD, resulting from a prior year adjustment. This increase in revenue is offset by an increase in allocated interest income of $110,000 based on higher cash reserves held on behalf of this agency, and an increase of $97,000 in property tax income allocated to IRWD. These revenues are expected to be below budget at year-end.  Revenues – Sludge Disposal – IRWD – Sludge Disposal-IRWD fees are at $9.4 million, or 154.1 percent of the $6.1 million budget. This revenue is for the handling, treatment, and disposal of solids derived from flows discharged by IRWD to the Sanitation District. The revenues through the mid-year are higher than the same period last year by $4.9 million, or 109.4 percent, mainly due to increased quarterly estimated billings for solids received from IRWD through the mid-year, and the timing of prior fiscal year estimates adjusted to actual. The budget reflects the anticipated completion of IRWD solids processing facilities that would cease solids to the Sanitation District’s line by the end of the second quarter. It is anticipated that IRWD sludge disposal revenues will exceed budget at year-end.  Revenues – Capital Assessments – IRWD – Capital Assessments-IRWD are at $1.3 million, or 24.5 percent of the $5.2 million budget. The revenues through the mid-year are lower than the same period last year by $266,000, or 17.3 percent, mainly due to a decrease in joint capital costs allocable to IRWD. It is estimated that IRWD capital assessments revenues will be below budget at year-end.  Revenues – Capital Facilities Capacity Charges (CFCC) – CFCC are at $4.4 million, or 21.8 percent of the $20.1 million budget. The revenues through the mid-year are lower than the same period last year by $3.3 million, or 42.6 percent, due to decreases in connection fees collected from cities and supplemental capital facilities capacity charges assessed to industrial dischargers, largely due to impacts from COVID-19. These revenues are expected to be below budget at year-end.  Revenues – Interest Earnings – Interest Earnings are at $3.1 million, or 23.5 percent of the $13.2 million budget. The revenues through the mid-year are lower than the same period last year by $6.1 million, or 66.2 percent due to lower yields earned on securities held in investment portfolios. It is estimated that interest earnings will be below budget at year-end.  Revenues – CIP Reimbursements – CIP Reimbursements are at $2.1 million, or 17.9 percent of the $11.6 million budget. This revenue is $1.4 million, or 215.3 percent higher 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.  Revenues – Wastehauler – Wastehauler revenues are at $381,000, or 50.8 percent of the $750,000 budget. This revenue is derived from fees charged to FY 2020-21 Mid-Year Financial Report Section 1 - Page 6 wastehaulers, allowing them to dump waste into the Sanitation District’s system. The revenues through the mid-year are lower than the same period last year by $121,000, or 24.2 percent due to a decrease in waste dumping. These revenues are expected to approximate budget at year-end.  Revenues – CNG Sales – CNG Sales revenues are at $107,000, or 26.9 percent of the $400,000 budget. This revenue is derived from public sales at the Sanitation District’s Compressed Natural Gas (CNG) fueling station. The revenues through the mid-year are lower than the same period last year by $26,000, or 19.6 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 $352,000, or 58.7 percent of the $600,000 budget. The revenues through the mid-year are lower than the same period last year by $22,000, or 5.8 percent due to less rent received as tenants have moved 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 $827,000, or 33.3 percent of the $2.5 million budget. These revenues are $361,000, or 77.6 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 Mid-Year 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 mid-year has been between 1.1 percent higher and 8.2 percent lower than the annual budget. The FY 2020-21 mid-year cost per million gallons of $2,569 is 1.1 percent higher when compared with this year’s budget. The increase in cost per million gallons of $236 from the previous year is primarily due to an increase in operating expenses, which are 8.1 percent higher than the same period last year, and a decrease in flows, which are 1.8 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 December 31 is $2,569 based on flows of 184 million gallons per day. This is $29 per million gallons, or 1.1 percent higher than the budgeted cost per million gallons of $2,540. There is an inverse relationship between the amount of flows and the cost per unit of collection, treatment, and disposal. Consequently, the higher cost per million gallons is due to flows of 184 million gallons per day being 2.1 percent less than the budgeted flow of 188 million gallons per day, partially offset by net expenses being 0.2 percent lower than the proportionate budget through December 31. More detailed information on operating revenues, costs, and related information is provided within Section 2. FY 2020-21 Mid-Year Financial Report Section 1 - Page 8 Following are data tables showing the last five years of Single Family Residential User Fees (SFR) and the cost per million gallons (MG) to collect, treat, and dispose of wastewater for the Orange County Sanitation District (OC San) and similar agencies. The agencies used in the tables were determined to be those that most closely resembled OC San in terms of services provided and treatment levels. The summaries demonstrate that OC San’s SFR and cost per MG are each one of the lowest in their respective groups. 2016 2017 2018 2019 2020 Agency SFR SFR SFR SFR SFR Notes San Francisco 842$ 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 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Agency Svc. Trt. Cost/MG Cost/MG Cost/MG Cost/MG Cost/MG Notes Vallejo Sanitation/Flood Control District B 3 5,396$ 4,745$ 5,393$ 6,137$ 8,682$ Note 5 San Francisco B 3 5,268$ 4,916$ 5,295$ 5,995$ N/A Union Sanitary District B 3 3,957$ 4,039$ 4,757$ 4,838$ 5,655$ Central Contra Costa Sanitary District B 4 6,454$ 6,081$ 5,588$ 3,980$ 5,284$ Note 4 City of San Diego B 4 3,606$ 3,834$ 4,147$ 4,180$ 3,977$ Dublin San Ramon Services District B 4 2,896$ 2,961$ 3,422$ 3,692$ 3,441$ Sacramento County T 4 2,571$ 2,752$ 2,831$ 2,812$ 3,407$ East Bay MUD T 3 2,599$ 2,353$ 3,137$ 2,710$ 3,122$ Note 3 City of Los Angeles B 4 2,452$ 2,487$ 2,329$ 3,046$ 3,021$ Note 2 Orange County Sanitation District B 3 2,110$ 2,055$ 2,069$ 2,275$ 2,422$ Los Angeles County B 4 1,371$ 1,965$ 2,077$ 2,264$ 2,343$ Note 1 City of Fresno B 4 1,678$ 1,796$ 1,813$ 1,945$ 1,993$ 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) - In FY19-20, agency updated data for FY16-17 and after to include administrative costs. (3) - FY18-19 operating expense decreased $1.1 million. (5) - In FY19-20, agency updated FY18-19 CAFR treatment cost. N/A - Not currently available. Benchmark Study Five-Year Cost per MG (4) - FY18-19 operating expense decreased $36.4 million; $30.4 million due to an adjustment to the agency's Other Post Employment Benefit Plan (OPEB) - Transition to CalPers Health Insurance. (2) - FY17-18 influent flow has not been reduced by the amount of sludge discharged to the sewers from DCTWRP and LAGWRP. FY 2020-21 Mid-Year Financial Report Section 1 - Page 10 Capital Outlay Review: As depicted by the preceding chart, Capital Outlays totaled $63.7 million, or 43.2 percent of the capital outlay cash flow budget for FY 2020-21 as of December 31, 2020. Costs are slightly lower than the proportionate budget through the mid-year as some projects are still in the design phase or have experienced various delays or deferrals. Examples as of December 31 are Headworks Rehabilitation at Plant 1, which has a budget of $9.4 million but actual costs of $618,000, Rehabilitation of Western Regional Sewers, which has a budget of $5.7 million but actual costs of $215,000, and Ocean Outfall System Rehabilitation, which has a budget of $26.1 million but actual costs of $9.6 million. Overall, the capital outlay costs of the capital improvement program are expected to approximate $145.7 million, or 98.7 percent of the capital outlay cash flow budget at year-end. More detailed information on the capital improvement program is provided within Section 3. Capital Assets Schedule and Debt Service Budget Review: Section 4 is the Capital Assets Schedule and Debt Service Section. This section shows the cost value of the Sanitation District’s capital facilities at December 31, 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 December 31, 2020, no principal payments have been made through the end of the mid-year. 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 12/31/20 Actual Capital Outlay $63,709,365 Projected 2020-21 Capital Outlay $145,702,700 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 December 31, the Self-Insurance Fund revenues totaled $1.4 million, or 67.2 percent of the budget, while expenses are $1.3 million, or 46.3 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 Mid-Year Financial Report Section 1 - Page 12 This Page Intentionally Left Blank Operating Budget Review $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Ex e c u t i v e M a n a g e m e n t Hu m a n R e s o u r c e s Ad m i n i s t r a t i v e S e r v i c e s En v i o r n m e n t a l S e r v i c e s En g i n e e r i n g Op e r a t i o n s & M a i n t e n a n c e Cost per Million Gallons by Department Budget and Actual December 31, 2020 Budget Actual $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Sa l a r y & W a g e s Em p l o y e e B e n e f i t s Ad m i n i s t r a t i v e E x p e n s e s Pr i n t i n g & P u b l i c a t i o n Tr a i n i n g & M e e t i n g s Op e r a t i n g E x p e n s e s Co n t r a c t u a l S e r v i c e s Pr o f e s s i o n a l S e r v i c e s Re s e a r c h & M o n i t o r i n g Re p a i r s & M a i n t e n a n c e Ut i l i t i e s Ot h e r M a t e r i a l s , S u p p l i e s , & S v c s Collection, Treatment, & Disposal Expenses by Major Category Budget and Actual (in thousands) December 31, 2020 Budget Actual Section 2 - Page 1 Divisional Contributions to Cost Per Million Gallons For the Six Months Ended December 31, 2020 2020-21 12/31/18 12/31/19 Annual 12/31/20 Actual Actual Budget Actual Flow in Million Gallons 34,032.65 34,481.22 68,620.00 33,859.20 Flow in Million Gallons per Day 184.96 187.40 188.00 184.02 Executive Management Department General Management Administration 28.16$ 32.42$ 27.85$ 24.78$ Board Services 11.18 9.24 17.43 13.00 Public Affairs 14.62 16.70 18.95 16.43 Subtotal 53.96 58.36 64.23 54.21 Human Resources Department Human Resources 59.44 61.43 60.77 52.23 Risk Management / Safety / Security 71.06 79.97 57.23 51.61 Subtotal 130.50 141.40 118.00 103.84 Administrative Services Department Administrative Services 6.92 9.03 3.72 7.66 Consolidated Services - - 110.49 89.59 Financial Management 36.45 40.85 60.44 64.42 Contracts, Purchasing, & Materials Mgmt.94.04 61.12 67.31 68.61 Information Technology 179.28 204.08 176.24 197.32 Subtotal 316.69 315.08 418.20 427.60 Environmental Services Department Environmental Services Administration 13.10 19.61 13.34 21.17 Resource Protection 88.03 81.27 89.34 86.62 Laboratory, Monitoring and Compliance 174.85 167.18 179.10 195.29 Subtotal 275.98 268.06 281.78 303.08 Engineering Department Engineering Administration 8.35 15.27 18.63 19.57 Planning 53.25 52.69 60.05 50.94 Project Management Office 44.65 69.03 61.17 66.97 Design 128.17 108.70 108.07 97.97 Construction Management 78.35 94.69 96.73 101.58 Subtotal 312.77 340.38 344.65 337.03 Operations & Maintenance Department Operations & Maintenance Administration 8.69 3.97 10.34 2.00 Collections Facilities O & M 185.53 162.97 224.94 207.83 Fleet Services 29.99 27.31 29.73 27.19 Plant No. 1 Operations 392.67 448.06 442.03 490.11 Plant No. 2 Operations 304.12 259.52 272.38 266.15 Plant No. 1 Maintenance 193.49 314.30 340.07 355.83 Maintenance Reliability and Planning 93.02 - - - Plant No. 2 Maintenance 216.89 285.03 295.26 300.51 Subtotal 1,424.40 1,501.16 1,614.75 1,649.62 Total Operating Expenses 2,514.30 2,624.44 2,841.61 2,875.38 Cost Allocation (298.74) (290.83) (301.61) (306.26) Net Operating Requirements 2,215.56$ 2,333.61$ 2,540.00$ 2,569.12$ FY 2020-21 Mid-Year Financial Report Section 2 - Page 2 Comparison of Expenses by Department For the Six Months Ended December 31, 2020 2020-21 12/31/18 12/31/19 Year to Date Budget % Department and Division Actual Actual Budget 12/31/20 Realized Executive Management Department General Management Administration 958,205$ 1,117,989$ 1,910,830$ 838,923$ 43.90% Board Services 380,550 318,659 1,195,850 440,176 36.81% Public Affairs 497,665 575,927 1,300,290 556,430 42.79% Subtotal 1,836,420 2,012,575 4,406,970 1,835,529 41.65% Human Resources Department Human Resources 2,022,731 2,118,082 4,169,885 1,768,493 42.41% Risk Management / Safety / Security 2,418,359 2,757,525 3,927,283 1,747,465 44.50% Subtotal 4,441,090 4,875,607 8,097,168 3,515,958 43.42% Administrative Services Department Administrative Services 235,612 311,306 255,180 259,313 101.62% Consolidated Services - - 7,582,154 3,033,609 40.01% Financial Management 1,240,322 1,408,491 4,147,493 2,181,071 52.59% Contracts, Purchasing, & Materials Mgmt. 3,200,484 2,107,389 4,619,006 2,322,923 50.29% Information Technology 6,101,429 7,037,087 12,093,310 6,681,141 55.25% Subtotal 10,777,847 10,864,273 28,697,143 14,478,057 50.45% Environmental Services Department Environmental Services Administration 445,932 676,272 915,720 716,753 78.27% Resource Protection 2,995,873 2,802,305 6,130,250 2,932,772 47.84% Laboratory, Monitoring and Compliance 5,950,505 5,764,716 12,289,727 6,612,361 53.80% Subtotal 9,392,310 9,243,293 19,335,697 10,261,886 53.07% Engineering Department Engineering Administration 284,155 526,555 1,278,080 662,593 51.84% Planning 1,812,174 1,816,775 4,120,560 1,724,783 41.86% Project Management Office 1,519,557 2,380,242 4,197,645 2,267,587 54.02% Design 4,361,898 3,747,941 7,416,060 3,317,329 44.73% Construction Management 2,666,322 3,264,991 6,637,750 3,439,486 51.82% Subtotal 10,644,106 11,736,504 23,650,095 11,411,778 48.25% Operations & Maintenance Department Operations & Maintenance Administration 295,795 136,893 709,620 67,707 9.54% Collections Facilities O & M 6,313,957 5,619,439 15,435,673 7,036,860 45.59% Fleet Services 1,020,570 941,739 2,040,071 920,572 45.12% Plant No. 1 Operations 13,363,543 15,449,718 30,331,900 16,594,660 54.71% Plant No. 2 Operations 10,350,051 8,948,614 18,690,716 9,011,578 48.21% Plant No. 1 Maintenance 6,584,980 10,837,403 23,335,730 12,048,246 51.63% Maintenance Reliability and Planning 3,165,726 - - - 0.00% Plant No. 2 Maintenance 7,381,359 9,828,144 20,260,443 10,175,189 50.22% Subtotal 48,475,981 51,761,950 110,804,153 55,854,812 50.41% Total Operating Expenses 85,567,754 90,494,202 194,991,226 97,358,020 49.93% Cost Allocation (10,166,490) (10,028,374) (20,825,710) (10,369,765) 49.79% Net Operating Requirements 75,401,264$ 80,465,828$ 174,165,516$ 86,988,255$ 49.95% Operating Budget Review Section 2 - Page 3 Summary of Collection, Treatment, & Disposal Expenses by Major Category For the Six Months Ended December 31, 2020 Expense Expense Increase Increase Percent Budget Through Through (Decrease)(Decrease)Budget Remaining 2020-21 12/31/20 12/31/19 $%Realized Budget Salary & Wages 79,271,100$ 39,409,659 37,684,874 1,724,785$ 4.58%49.72%39,861,441$ Employee Benefits 22,810,700 12,520,566 11,716,372 804,194 6.86%54.89%10,290,134 Administrative Expenses 2,034,004 1,040,425 1,097,299 (56,874) -5.18%51.15%993,579 Printing & Publication 415,375 111,972 147,174 (35,202) -23.92%26.96%303,403 Training & Meetings 1,076,761 184,172 312,555 (128,383) -41.08%17.10%892,589 Operating Materials & Supplies 21,460,704 10,456,717 9,654,809 801,908 8.31%48.72%11,003,987 Contractual Services 19,235,353 8,382,263 9,022,335 (640,072) -7.09%43.58%10,853,090 Professional Services 5,746,479 1,538,407 1,832,795 (294,388) -16.06%26.77%4,208,072 Research & Monitoring 1,304,700 841,816 786,047 55,769 7.09%64.52%462,884 Repairs & Maintenance 28,372,645 15,508,124 12,434,595 3,073,529 24.72%54.66%12,864,521 Utilities 8,364,954 5,062,823 4,453,822 609,001 13.67%60.52%3,302,131 Other Materials, Supplies, and Services 5,048,451 2,301,076 1,351,525 949,551 70.26%45.58%2,747,375 Net Cost Allocation (20,825,710) (10,369,765) (10,028,374) (341,391) 3.40%49.79%(10,455,945) Net Operating Requirements 174,315,516 86,988,255 80,465,828 6,522,427 8.11%49.90%87,327,261 Gallonage Flow (MG)68,620.00 33,859.20 34,481.22 (622.02) -1.80% Gallonage Flow (MGD)188.00 184.02 187.40 (3.38) -1.80% Gallonage Flow ($'s /MG)$2,540.00 $2,569.12 $2,333.61 $235.51 10.09% Description FY 2020-21 Mid-Year Financial Report Section 2 - Page 4 Revenue Percent Revenue Increase Increase Budget Through Budget Remaining Through (Decrease)(Decrease) Description 2020-21 12/31/20 Realized Budget 12/31/19 $% Service Fees 298,144,470$ 168,422,191$ 56.49% 129,722,279$ 166,912,638$ 1,509,553$ 0.90% Permit Fees 12,845,756 6,242,567 48.60% 6,603,189 6,329,653 (87,086) -1.38% Inter District Sewer Use-SAWPA & SBSD 2,639,000 1,365,831 51.76% 1,273,169 1,351,132 14,699 1.09% Intra District Sewer Use-IRWD 4,655,516 988,239 21.23% 3,667,277 584,513 403,726 69.07% Sludge Disposal-IRWD 6,100,000 9,397,106 154.05% (3,297,106) 4,488,298 4,908,808 109.37% Capital Assessments-IRWD 5,194,000 1,274,266 24.53% 3,919,734 1,540,161 (265,895) -17.26% Capital Facilities Capacity Charges 20,125,170 4,379,324 21.76% 15,745,846 7,634,042 (3,254,718) -42.63% Property Taxes 99,935,520 58,311,944 58.35% 41,623,576 47,582,816 10,729,128 22.55% Interest Earnings 13,177,000 3,098,447 23.51% 10,078,553 9,162,650 (6,064,203) -66.18% CIP Reimbursements 11,643,517 2,086,932 17.92% 9,556,585 661,814 1,425,118 215.34% Wastehauler 750,000 380,905 50.79% 369,095 502,155 (121,250) -24.15% Grant Revenue 464,000 - 0.00% 464,000 50,651 (50,651) -100.00% CNG Sales 400,000 107,457 26.86% 292,543 133,607 (26,150) -19.57% Rents & Leases 600,000 352,138 58.69% 247,862 373,785 (21,647) -5.79% Other Revenues 2,485,671 826,657 33.26% 1,659,014 465,378 361,279 77.63% Power Sales 25,000 18,812 75.25% 6,188 46,869 (28,057) -59.86% Other Sales 50,000 4,233 8.47% 45,767 106,216 (101,983) -96.01% Total Revenues 479,234,620$ 257,257,049$ 53.68% 221,977,571$ 247,926,378$ 9,330,671$ 3.76% Summary of Revenues For the Six Months Ended December 31, 2020 Operating Budget Review Section 2 - Page 5 FY 2020-21 Mid-Year Financial Report Summary of Collection, Treatment, & Disposal Expenses by Line Item For the Six Months Ended December 31, 2020 Expense Percent Expense Increase Budget Through Budget Remaining Through (Decrease) Description 2020-21 12/31/20 Expensed Budget 12/31/19 $ Salaries, Wages & Benefits Salaries & Wages 79,271,100$ 39,409,659$ 49.72% 39,861,441$ 37,684,874$ 1,724,785$ 4.58% Employee Benefits Retirement 11,685,000 6,157,450 52.70%5,527,550 5,858,404 299,046 5.10% Group Insurances 9,705,500 5,538,617 57.07%4,166,883 5,024,730 513,887 10.23% Tuition & Certification Reimb 138,400 39,506 28.54%98,894 40,172 (666) -1.66% Edu. degrees, Cert. & Lic.542,600 335,521 61.84%207,079 297,322 38,199 12.85% Uniform Rental 107,600 56,703 52.70%50,897 53,849 2,854 5.30% Workers' Compensation 518,900 259,400 49.99%259,500 390,002 (130,602) -33.49% Unemployment Insurance 2,300 75,677 3290.30%(73,377) 1,125 74,552 6626.84% EMT Supplemental Benefits 110,400 57,692 52.26%52,708 50,768 6,924 13.64% Total Benefits 22,810,700 12,520,566 54.89% 10,290,134 11,716,372 804,194 6.86% Salaries, Wages & Benefits 102,081,800 51,930,225 50.87% 50,151,575 49,401,246 2,528,979 5.12% Matl, Supply, & Services Administrative Expenses Memberships 598,217 397,735 66.49%200,482 392,624 5,111 1.30% Office Exp - Supplies 64,655 16,755 25.91%47,900 36,305 (19,550) -53.85% Postage 32,700 23,510 71.90%9,190 14,654 8,856 60.43% Books & Publications 44,352 12,276 27.68%32,076 45,228 (32,952) -72.86% Forms 580 - 0.00%580 - - N/A Small Computer Items 925,500 446,534 48.25%478,966 505,034 (58,500) -11.58% Minor Furniture & Fixtures 368,000 143,615 39.03%224,385 103,454 40,161 38.82% Subtotal 2,034,004 1,040,425 51.15%993,579 1,097,299 (56,874) -5.18% Printing & Publication Repro-In-House 230,375 84,051 36.48%146,324 112,344 (28,293) -25.18% Printing-Outside 47,950 14,152 29.51%33,798 16,557 (2,405) -14.53% Notices & Ads 137,000 13,769 10.05%123,231 18,231 (4,462) -24.47% Photo Processing 50 - 0.00%50 42 (42) -100.00% Subtotal 415,375 111,972 26.96%303,403 147,174 (35,202) -23.92% Training & Meetings Meetings 167,796 4,131 2.46%163,665 53,454 (49,323) -92.27% Training 908,965 180,041 19.81%728,924 259,101 (79,060) -30.51% Subtotal 1,076,761 184,172 17.10%892,589 312,555 (128,383) -41.08% Operating Mat'ls & Supplies Chemical Coagulants 10,550,546 5,299,290 50.23%5,251,256 5,268,168 31,122 0.59% Odor Control 6,907,776 3,085,214 44.66%3,822,562 2,834,913 250,301 8.83% Disinfection 218,000 231,254 106.08%(13,254) 86,014 145,240 168.86% Chemicals - Misc & Cogen 418,000 198,228 47.42%219,772 173,041 25,187 14.56% Gasoline, Diesel & Oil 554,633 279,991 50.48%274,642 251,180 28,811 11.47% Tools 923,230 539,092 58.39%384,138 245,492 293,600 119.60% Safety equipment/tools 731,637 351,426 48.03%380,211 306,576 44,850 14.63% Solv, Paints & Jan. Supplies 111,053 51,149 46.06%59,904 57,792 (6,643) -11.49% Lab Chemicals & Supplies 652,969 306,361 46.92%346,608 331,073 (24,712) -7.46% Misc. Operating Supplies 166,360 101,565 61.05%64,795 62,360 39,205 62.87% Property Tax Fees 76,500 13,147 17.19%63,353 38,200 (25,053) -65.58% Subtotal 21,310,704 10,456,717 49.07%10,853,987 9,654,809 801,908 8.31% Contractual Services Solids Removal 12,380,000 5,823,992 47.04%6,556,008 6,058,861 (234,869) -3.88% Other Waste Disposal 899,500 452,805 50.34%446,695 394,020 58,785 14.92% Groundskeeping 200,000 89,745 44.87%110,255 93,768 (4,023) -4.29% Janitorial 495,000 405,168 81.85%89,832 239,052 166,116 69.49% Outside Lab Services 286,750 69,915 24.38%216,835 100,998 (31,083) -30.78% Oxygen 335,000 266,402 79.52%68,598 200,689 65,713 32.74% County Service Fee 489,003 10,566 2.16%478,437 14,580 (4,014) -27.53% Temporary Services 481,360 214,503 44.56%266,857 151,407 63,096 41.67% Security Services 1,600,000 815,589 50.97%784,411 803,965 11,624 1.45% Other 2,068,740 233,578 11.29%1,835,162 964,995 (731,417) -75.79% Subtotal 19,235,353 8,382,263 43.58%10,853,090 9,022,335 (640,072) -7.09% Increase (Decrease) % Section 2 - Page 6 (Continued) Operating Budget Review Summary of Collection, Treatment, & Disposal Expenses by Line Item For the Six Months Ended December 31, 2020 Expense Expense Increase Increase Budget Through Remaining Through (Decrease)(Decrease) Description 2020-21 12/31/20 Expensed Budget 12/31/19 $% Continued: Professional Services Legal 1,620,290 332,243 20.51% 1,288,047 677,813 (345,570) -50.98% Audit & Accounting 225,400 67,010 29.73% 158,390 75,165 (8,155) -10.85% Engineering 980,000 538,099 54.91% 441,901 368,296 169,803 46.11% Enviro Scientific Consulting 265,000 35,398 13.36% 229,602 30,990 4,408 14.22% Software Prgm Consulting 305,000 135,499 44.43% 169,501 195,419 (59,920) -30.66% Advocacy Efforts 187,685 83,900 44.70% 103,785 57,800 26,100 45.16% Industrial Hygiene Services 50,000 11,618 23.24% 38,382 26,102 (14,484) -55.49% Labor Negotiation Services 30,000 - 0.00% 30,000 30,080 (30,080) -100.00% Other 2,083,104 334,640 16.06% 1,748,464 371,130 (36,490) -9.83% Subtotal 5,746,479 1,538,407 26.77% 4,208,072 1,832,795 (294,388) -16.06% Research & Monitoring Environmental Monitoring 654,700 292,540 44.68% 362,160 235,559 56,981 24.19% Air Quality Monitoring 150,000 49,276 32.85% 100,724 75,488 (26,212) -34.72% Research 500,000 500,000 100.00% - 475,000 25,000 5.26% Subtotal 1,304,700 841,816 64.52% 462,884 786,047 55,769 7.09% Repairs & Maintenance Materials & Services 23,891,620 12,431,790 52.03% 11,459,830 9,612,456 2,819,334 29.33% Svc. Mtc. Agreements 4,481,025 3,076,334 68.65% 1,404,691 2,822,139 254,195 9.01% Subtotal 28,372,645 15,508,124 54.66% 12,864,521 12,434,595 3,073,529 24.72% Utilities Telephone 505,971 247,897 48.99% 258,074 268,534 (20,637) -7.69% Diesel For Generators 42,500 6,818 16.04% 35,682 10,144 (3,326) -32.79% Natural Gas 710,801 578,308 81.36% 132,493 372,939 205,369 55.07% Power 6,064,165 3,582,043 59.07% 2,482,122 3,260,260 321,783 9.87% Water 1,041,517 647,757 62.19% 393,760 541,945 105,812 19.52% Subtotal 8,364,954 5,062,823 60.52% 3,302,131 4,453,822 609,001 13.67% Other Operating Supplies Outside Equip Rental 100,000 18,197 18.20% 81,803 42,801 (24,604) -57.48% Insurance Premiums 30,000 31,451 104.84% (1,451) 28,501 2,950 10.35% Prop & Gen Liab Insurance 2,205,000 1,102,494 50.00% 1,102,506 859,998 242,496 28.20% Freight 100,000 83,062 83.06% 16,938 53,782 29,280 54.44% Misc. Operating Expense 304,457 108,067 35.49% 196,390 132,570 (24,503) -18.48% Regulatory Operating Fees 976,600 938,849 96.13% 37,751 143,666 795,183 553.49% Subtotal 3,716,057 2,282,120 61.41% 1,433,937 1,261,318 1,020,802 80.93% General Mgr Contingency & Reappropriations 1,195,574 - 0.00% 1,195,574 - - N/A Other Non-Oper Expense 136,820 18,956 13.85% 117,864 90,207 (71,251) -78.99% Total Materials, Supplies & Services 92,909,426 45,427,795 48.89% 47,481,631 41,092,956 4,334,839 10.55% Total Expenditures 194,991,226 97,358,020 49.93% 97,633,206 90,494,202 6,863,818 7.58% Cost Allocation (20,825,710) (10,369,765) 49.79% (10,455,945) (10,028,374) (341,391) 3.40% Net Operating Requirements 174,165,516$ 86,988,255$ 49.95%87,177,261$ 80,465,828$ 6,522,427$ 8.11% Percent Budget Section 2 - Page 7 FY 2020-21 Mid-Year Financial Report Summary of Collection, Treatment, & Disposal Expenses by Process For the Six Months Ended December 31, 2020 Increase Increase Actual Actual (Decrease)(Decrease) 12/31/20 12/31/19 $% Process: Preliminary Treatment 5,480,790$ 3,387,645$ 2,093,145$ 61.79% Primary Treatment 9,375,267 10,676,160 (1,300,893) -12.19% Secondary Treatment 5,852,570 6,024,345 (171,775) -2.85% Cryogenic Plant (Plant 2)616,806 444,696 172,110 38.70% Effluent Disposal 923,804 674,408 249,396 36.98% Solids Handling 23,607,348 23,835,292 (227,944) -0.96% Cogeneration 9,906,589 9,057,895 848,694 9.37% Utilities 2,442,024 1,993,360 448,664 22.51% Electrical Distribution 1,563,468 949,665 613,803 64.63% Miscellaneous Buildings 5,663,386 5,074,797 588,589 11.60% External Location 253,469 147,050 106,419 72.37% Nerissa Vessel 145,773 122,668 23,105 18.84% Laboratory 10,219,449 8,617,374 1,602,075 18.59% Collections 10,937,512 9,460,473 1,477,039 15.61% Net Operating Requirements 86,988,255$ 80,465,828$ 6,522,427$ 8.11% Section 2 - Page 8 Staffing Trends Full Time Equivalents December 31, 2020 At December 31, 2020, the total head count was 631 employees, or a full time equivalency of 621. Operating Budget Review 450 500 550 600 650 700 6/30/17 6/30/18 6/30/19 6/30/20 12/31/20 578 603 614 606 621 49 32 22 34 18 Actual Vacant 627 635 636 640 639 Section 2 - Page 9 FY 2020-21 Mid-Year Financial Report This Page Intentionally Left Blank Section 2 - Page 10 Capital Improvement Program By Process Area and Project Driver For the Six Months Ended December 31, 2020 Capital Improvement Program Budget Review Total Capital Improvement Outlays - $63,709,365 Rehabilitation and Replacement: 59.4% Strategic Initiatives: 26.2% Additional Capacity: 11.0% Regulatory: 3.4% Total Capital Improvement Outlays - $63,709,365 Collections Facilities: 39.3% Liquid Treatment: 37.8% Solids Handling & Digestion: 2.5% Utility Systems: 4.4% Support Facilities: 7.4% Other: 8.6% Section 3 - Page 1 FY 2020-21 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2020 2020-21 2020-21 2020-21 Cashflow Actual at Projected Budget 12/31/2020 Outlay Collection System Improvement Projects Collections Facilities Taft Branch Capacity Improvements 314,739 63,469 103,600 Newhope - Placentia Trunk Grade Separation Replacement 92,123 - - Newhope-Placentia Trunk Replacement 18,441,383 12,259,166 17,147,300 Westminster Blvd Force Main Replacement 11,561,567 10,365,991 14,659,600 Rehabilitation of Western Regional Sewers 5,711,536 214,713 1,574,900 Interstate 405 Widening Project Impacts on OC San Sewers 35,032 14,703 24,600 Seal Beach Pump Station Replacement 3,427,428 423,469 2,589,700 Bay Bridge Pump Station Replacement 5,684,572 409,861 4,350,000 Newport Beach Pump Station Pressurization Improvements 378,513 114,118 203,100 District 6 Trunk Sewer Relief 30,036 3,111 6,000 Gisler Red-Hill Interceptor & Baker Force Main Rehabilitation 823,405 71,450 1,084,600 MacArthur Force Main Improvement 45,631 24,382 30,000 Edinger Pump Station Replacement 102,369 - - Small Construction Projects Program - Collections 1,614,473 733,013 1,043,300 Operations & Maintenance Capital Program - Collections - 90,044 144,800 Planning Studies Program - Collections - 39,358 381,700 SARI Rock Stabilizers Removal 45,869 20,148 20,300 Sunflower and Red Hill Interceptor Repairs 359,017 194,715 288,600 Total Collection System Improvement Projects 48,667,693 25,041,711 43,652,100 Section 3 - Page 2 (Continued) Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2020 2020-21 2020-21 2020-21 Cashflow Actual at Projected Budget 12/31/2020 Outlay Treatment & Disposal Projects Headworks Headworks Rehabilitation at Plant 1 9,418,986 618,397 2,959,200 Headworks Modifications at P2 for GWRS Final Expansion 5,413,951 3,084,482 7,630,600 Subtotal - Headworks 14,832,937 3,702,879 10,589,800 Primary Treatment Primary Sedimentation Basins 3-5 Replacement at Plant 1 61,054 329 400 Primary Sedimentation Basins 6-31 Reliability Improv at P1 1,291,277 545,928 837,500 Primary Treatment Rehabilitation at Plant 2 8,087,122 3,421,321 6,241,100 Subtotal - Primary Treatment 9,439,453 3,967,578 7,079,000 Secondary Treatment Return Activated Sludge Piping Replacement at Plant 1 5,566,916 5,051,833 5,113,200 Return Activated Sludge Piping Replacement at Plant 2 6,075,061 1,762,519 3,898,000 Subtotal - Secondary Treatment 11,641,977 6,814,352 9,011,200 Solids Handling & Digestion Sludge Dewatering and Odor Control at Plant 1 896,419 288,281 454,700 Digester Ferric Chloride Piping Replacement at Plant 1 170,893 102,916 230,500 Sludge Dewatering and Odor Control at Plant 2 5,216,415 424,351 1,427,900 Interim Food Waste Receiving Facility 1,058,172 23,540 133,200 TPAD Digester Facility at Plant 2 1,787,669 758,562 7,859,600 Digesters Rehabilitation at Plant No. 2 589,432 - - Subtotal - Solids Handling & Digestion 9,719,000 1,597,650 10,105,900 Ocean Outfall Systems Ocean Outfall System Rehabilitation 26,108,350 9,621,964 21,507,500 Sodium Bisulfite Station Rehabilitation at Plant 2 101,848 - 101,900 Subtotal - Ocean Outfall Systems 26,210,198 9,621,964 21,609,400 Utility Systems Electrical Power Distribution System Improvements 1,823,293 408,276 1,369,500 Digester Gas Facilities Rehabilitation 4,282,106 1,847,926 4,784,400 Natural Gas Pipelines Replacement at Plants 1 and 2 1,038,492 225,985 1,126,400 Central Generation Engine Overhauls at Plants 1 and 2 291,727 4,942 75,100 Uninterruptable Power Supply Improvements at Plant 1 928,600 156,624 912,400 Consolidated Demolition and Utility Improvements at P2 914,715 32,932 73,000 Warehouse, Electrical, & 12kV Serv Center Replace at P2 717,257 97,585 950,600 Subtotal - Utility Systems 9,996,190 2,774,270 9,291,400 Capital Improvement Program Budget Review Section 3 - Page 3 (Continued) FY 2020-21 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2020 2020-21 2020-21 2020-21 Cashflow Actual at Projected Budget 12/31/2020 Outlay Process Related Special Projects Safety Improvements Program 1,326,635 954,564 1,145,800 Subtotal - Process Related Special Projects 1,326,635 954,564 1,145,800 Information Management Systems Process Control Systems Upgrades 10,000 - - Project Management Information System 306,250 29,952 168,000 Information Technology Capital Program 3,061,700 483,415 1,395,100 Geographic Information System 59,707 175,790 190,000 EAM Software and Process Implementation - 625,351 1,125,400 Process Control Systems Upgrades Study 1,355,751 418,332 1,115,100 Subtotal - Information Management Systems 4,793,408 1,732,840 3,993,600 Strategic & Master Planning Planning Studies Program 5,818,770 1,674,874 5,079,500 Subtotal - Strategic & Master Planning 5,818,770 1,674,874 5,079,500 Water Management Projects GWRS Final Expansion Coordination 243,477 148,948 295,900 Subtotal - Water Management Projects 243,477 148,948 295,900 Research Research Program 931,220 52,111 878,900 Subtotal - Research 931,220 52,111 878,900 Support Facilities Small Construction Projects Program 6,825,605 1,404,550 4,361,700 Operations & Maintenance Capital Program 1,442,561 987,604 3,528,500 Fleet Services UST Leak Remediation at Plant 1 - 112 284,900 Title 24 Access Compliance and Building Rehab Project 575,678 163,403 201,900 Headquarters Complex 6,339,527 1,942,431 8,867,900 South Perimeter Security & Utility Improvements at Plant 1 680,311 200,476 543,000 Support Buildings Seismic Improvements at Plant 1 259,739 - 14,200 Subtotal - Support Facilities 16,123,421 4,698,576 17,802,100 Section 3 - Page 4 (Continued) Summary of Capital Improvement Construction Requirements - Current Year For the Six Months Ended December 31, 2020 2020-21 2020-21 2020-21 Cashflow Actual at Projected Budget 12/31/2020 Outlay Others Capital Improvement Program Management Services 26,901 7,736 53,200 Subtotal - Others 26,901 7,736 53,200 Total Treatment and Disposal Projects 111,103,587 37,763,884 96,988,800 Capital Equipment Purchases 5,061,800 903,770 5,061,800 Total Collection, Treatment and Disposal Projects and Capital Equipment Purchases 164,833,080 63,709,365 145,702,700 Less: Savings and Deferrals (17,271,000) - - Net Collection, Treatment and Disposal Projects and Capital Equipment Purchases 147,562,080$ 63,709,365$ 145,702,700$ Capital Improvement Program Budget Review Section 3 - Page 5 FY 2020-21 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 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 56,207 103,600 159,807 13,840,193 Newhope - Placentia Trunk Grade Separation Replacement 4,300,000 4,201,046 - 4,201,046 98,954 Newhope-Placentia Trunk Replacement 112,000,000 84,639,453 17,147,300 101,786,753 10,213,247 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 14,659,600 26,507,866 17,492,134 Rehabilitation of Western Regional Sewers 70,000,000 18,006,959 1,574,900 19,581,859 50,418,141 Interstate 405 Widening Project Impacts on OC San Sewers 250,000 120,181 24,600 144,781 105,219 Seal Beach Pump Station Replacement 78,900,000 1,227,409 2,589,700 3,817,109 75,082,891 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 4,350,000 5,455,544 68,544,456 Newport Beach Pump Station Pressurization Improvements 4,300,000 118,338 203,100 321,438 3,978,562 District 6 Trunk Sewer Relief 7,250,000 7,154,952 6,000 7,160,952 89,048 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 1,084,600 1,159,983 19,840,017 MacArthur Force Main Improvement 2,468,000 - 30,000 30,000 2,438,000 North Trunk Improvements 9,200,000 - - - 9,200,000 Edinger Pump Station Replacement 10,153,000 - - - 10,153,000 Slater Pump Station Rehabilitation 26,622,000 - - - 26,622,000 Small Construction Projects Program - Collections 10,103,000 4,753,104 1,043,300 5,796,404 4,306,596 Operations & Maintenance Capital Program - Collections 623,000 153,952 144,800 298,752 324,248 Planning Studies Program - Collections 4,259,000 3,480,009 381,700 3,861,709 397,291 Research Program - Collections 154,000 46,250 - 46,250 107,750 SARI Rock Stabilizers Removal 4,860,000 3,699,556 20,300 3,719,856 1,140,144 Sunflower and Red Hill Interceptor Repairs 4,700,000 218,182 288,600 506,782 4,193,218 Total Collection System Improvement Projects 802,148,000 140,904,791 43,652,100 184,556,891 617,591,109 Section 3 - Page 6 (Continued) Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 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 2,959,200 32,327,009 373,672,991 Headworks Modifications at P2 for GWRS Final Expansion 32,000,000 8,077,454 7,630,600 15,708,054 16,291,946 Subtotal - Headworks 438,000,000 37,445,263 10,589,800 48,035,063 389,964,937 Primary Treatment Primary Sedimentation Basins 3-5 Replacement at Plant 1 117,700,000 523,034 400 523,434 117,176,566 Primary Sedimentation Basins 6-31 Reliability Improv at P1 10,100,000 945,035 837,500 1,782,535 8,317,465 Primary Treatment Rehabilitation at Plant 2 237,000,000 28,788,870 6,241,100 35,029,970 201,970,030 B/C-Side Primary Clarifiers Rehabilitation at Plant 2 279,842,000 - - - 279,842,000 Subtotal - Primary Treatment 644,642,000 30,256,939 7,079,000 37,335,939 607,306,061 Secondary Treatment Return Activated Sludge Piping Replacement at Plant 1 10,300,000 4,038,731 5,113,200 9,151,931 1,148,069 Return Activated Sludge Piping Replacement at Plant 2 10,800,000 2,029,755 3,898,000 5,927,755 4,872,245 Activated Sludge Aeration Basin Rehabilitation at Plant 2 65,600,000 - - - 65,600,000 Subtotal - Secondary Treatment 86,700,000 6,068,486 9,011,200 15,079,686 71,620,314 Solids Handling & Digestion Sludge Dewatering and Odor Control at Plant 1 197,000,000 195,780,280 454,700 196,234,980 765,020 Digester Ferric Chloride Piping Replacement at Plant 1 1,360,000 124,687 230,500 355,187 1,004,813 Sludge Dewatering and Odor Control at Plant 2 90,477,000 85,102,044 1,427,900 86,529,944 3,947,056 Interim Food Waste Receiving Facility 6,300,000 1,289,539 133,200 1,422,739 4,877,261 TPAD Digester Facility at Plant 2 455,000,000 503,810 7,859,600 8,363,410 446,636,590 Digester P, Q, R, and S Replacement 165,900,000 - - - 165,900,000 Digesters Rehabilitation at Plant No. 2 40,632,000 - - - 40,632,000 Subtotal - Solids Handling & Digestion 956,669,000 282,800,360 10,105,900 292,906,260 663,762,740 Ocean Outfall Systems Ocean Outfall System Rehabilitation 166,000,000 58,201,457 21,507,500 79,708,957 86,291,043 Sodium Bisulfite Station Rehabilitation at Plant 2 3,834,000 - 101,900 101,900 3,732,100 Subtotal - Ocean Outfall Systems 169,834,000 58,201,457 21,609,400 79,810,857 90,023,143 Utility Systems Electrical Power Distribution System Improvements 26,500,000 388,036 1,369,500 1,757,536 24,742,464 Digester Gas Facilities Rehabilitation 173,000,000 8,304,560 4,784,400 13,088,960 159,911,040 Natural Gas Pipelines Replacement at Plants 1 and 2 1,610,000 471,007 1,126,400 1,597,407 12,593 Central Generation Engine Overhauls at Plants 1 and 2 26,000,000 - 75,100 75,100 25,924,900 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 Mid-Year Financial Report Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 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 7,000,000 444,334 912,400 1,356,734 5,643,266 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 73,000 29,416,019 583,981 Central Generation Rehabilitation at Plant 2 108,000,000 - - - 108,000,000 Warehouse, Electrical, & 12kV Serv Center Replace at P2 65,000,000 - 950,600 950,600 64,049,400 Subtotal - Utility Systems 530,469,000 38,950,956 9,291,400 48,242,356 482,226,644 Process Related Special Projects Safety Improvements Program 16,000,000 14,598,193 1,145,800 15,743,993 256,007 Subtotal - Process Related Special Projects 16,000,000 14,598,193 1,145,800 15,743,993 256,007 Information Management Systems Process Control Systems Upgrades 33,000,000 - - - 33,000,000 Project Management Information System 2,280,000 1,311,043 168,000 1,479,043 800,957 Information Technology Capital Program 10,000,000 1,265,752 1,395,100 2,660,852 7,339,148 Geographic Information System 4,700,000 3,370,462 190,000 3,560,462 1,139,538 EAM Software and Process Implementation 7,500,000 5,592,229 1,125,400 6,717,629 782,371 Process Control Systems Upgrades Study 3,400,000 1,810,226 1,115,100 2,925,326 474,674 Subtotal - Information Management Systems 60,880,000 13,349,712 3,993,600 17,343,312 43,536,688 Strategic & Master Planning Planning Studies Program 24,393,000 10,548,748 5,079,500 15,628,248 8,764,752 Subtotal - Strategic & Master Planning 24,393,000 10,548,748 5,079,500 15,628,248 8,764,752 Water Management Projects GWRS Final Expansion Coordination 1,132,000 409,905 295,900 705,805 426,195 Subtotal - Water Management Projects 1,132,000 409,905 295,900 705,805 426,195 Research Research Program 8,346,000 898,471 878,900 1,777,371 6,568,629 Subtotal - Research 8,346,000 898,471 878,900 1,777,371 6,568,629 Section 3 - Page 8 (Continued) Summary of Capital Improvement Construction Requirements - Project Life For the Six Months Ended December 31, 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 4,361,700 19,156,020 20,788,980 Operations & Maintenance Capital Program 14,999,000 2,232,839 3,528,500 5,761,339 9,237,661 Fleet Services UST Leak Remediation at Plant 1 14,952,000 1,202,456 284,900 1,487,356 13,464,644 Laboratory Rehabilitation at Plant 1 44,200,000 - - - 44,200,000 Title 24 Access Compliance and Building Rehab Project 18,400,000 17,648,352 201,900 17,850,252 549,748 Headquarters Complex 167,500,000 30,390,098 8,867,900 39,257,998 128,242,002 South Perimeter Security & Utility Improvements at Plant 1 10,000,000 1,171,563 543,000 1,714,563 8,285,437 Support Buildings Seismic Improvements at Plant 1 23,730,000 - 14,200 14,200 23,715,800 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 17,802,100 85,241,728 345,324,272 Others Capital Improvement Program Management Services 700,000 302,928 53,200 356,128 343,872 Subtotal - Others 700,000 302,928 53,200 356,128 343,872 Additional Charges to CIP Completed at 6/30/20 - - 53,100 53,100 (53,100) Total Treatment and Disposal Projects 3,368,331,000 561,271,046 96,988,800 658,259,846 2,710,071,154 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 $145,702,700 $847,878,537 $3,331,663,263 Capital Improvement Program Budget Review Section 3 - Page 9 FY 2020-21 Mid-Year Financial Report This Page Intentionally Left Blank Section 3 - Page 10 Capital Assets Schedule For the Three Months Ended December 31, 2020 Balance Year-to-Date Balance 07/01/20 Activity 12/31/20 CONSTRUCTION IN PROGRESS: Treatment Plant 98,764,377$ 38,667,654$ 137,432,031$ Collection System 265,166,458 25,041,711 290,208,169 Subtotal 363,930,835 63,709,365 427,640,200 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$ 63,709,365$ 4,488,473,004$ 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 2,106,597 72.70%791,042 2010C BABs 6,523,780 3,086,530 47.31%3,437,250 2011A COP 3,348,350 1,674,175 50.00%1,674,175 2012A COP 3,735,900 1,867,950 50.00%1,867,950 2012B COP 1,145,650 572,825 50.00%572,825 2014A COP 3,196,500 1,598,250 50.00%1,598,250 2015A COP 6,375,500 3,187,750 50.00%3,187,750 2016A COP 6,756,550 3,378,275 50.00%3,378,275 2017A COP 3,318,500 1,659,250 50.00%1,659,250 2018A CANs 5,110,000 2,555,000 50.00%2,555,000 Subtotal Interest Expense 42,408,369 21,686,602 51.14% 20,721,767 Total Debt Service 72,838,369$ 21,686,602$ 29.77% 51,151,767$ Section 4 - Page 1 Capital Facilities Budget Review Capital Assets Schedule & Debt Service Budget Review Debt Service Budget Review FY 2020-21 Mid-Year Financial Report This Page Intentionally Left Blank Section 4 - Page 2 General Liability and Property Fund Budget Review For the Six Months Ended December 31, 2020 Actual Actual 2020-21 Through Through Budget 12/31/20 12/31/19 Revenues: In-Lieu Premiums 1,471,000$ 1,102,494$ 74.95%368,506$ 859,998$ 242,496$ Service Department Allocations - 3,552 N/A (3,552) (1,548) 5,100 Total Revenues 1,471,000 1,106,046 75.19%364,954 858,450 247,596 Expenses: Benefits/Claims 40,000 - 0.00%40,000 53,188 (53,188) Legal Services 40,000 - 0.00%40,000 - - Professional Services 20,000 - 0.00%20,000 - - Subtotal 100,000 - 0.00%100,000 53,188 (53,188) Policy Premium Expense 1,980,000 970,096 48.99%1,009,904 708,883 261,213 Total Expenses 2,080,000 970,096 46.64%1,109,904 762,071 208,025 Excess Revenue (Expense)(609,000) 135,950 (744,950)$ 96,379 39,571 Beginning Reserves 98,609,000 98,648,623 55,389,842 43,258,781 Ending Reserves 98,000,000$ 98,784,573$ 55,486,221$ 43,298,352$ (1) Beginning reserves were increased by $43 million to align with approved catastrophic loss, or self-insurance criterion for non-reimbursed costs. 12/31/20 Budget (Decrease) Self Insurance Budget Review Percent of Budget Remaining Through 2020-21 Increase (1)(1) Section 5 - Page 1 FY 2020-21 Mid-Year Financial Report Workers' Compensation Fund Budget Review For the Six Months Ended December 31, 2020 Actual Actual 2020-21 Through Through Budget 12/31/20 12/31/20 12/31/19 Revenues: In-Lieu Premiums 518,800$ 259,400$ 50.00% 259,400$ 390,000$ (130,600)$ Service Department Allocations 110,000 44,850 40.77% 65,150 54,348 (9,498) Total Revenues 628,800 304,250 48.39%324,550 444,348 (140,098) Expenses: Benefits/Claims 420,000 193,539 46.08% 226,461 232,300 (38,761) Legal Services 90,000 25,084 27.87% 64,916 58,078 (32,994) Professional Services 50,000 34,313 68.63% 15,687 19,028 15,285 Subtotal 560,000 252,936 45.17%307,064 309,406 (56,470) Policy Premium Expense 220,000 102,385 46.54%117,615 108,881 (6,496) Total Expenses 780,000 355,321 45.55%424,679 418,287 (62,966) Excess Revenue (Expense)(151,200) (51,071) (100,129)$ 26,061 (77,132) Beginning Reserves 2,151,200 2,235,687 2,036,708 198,979 Ending Reserves 2,000,000$ 2,184,616$ 2,062,769$ 121,847$ Budget (Decrease) Percent of Budget Remaining Through 2020-21 Increase Section 5 - Page 2 January 31, 2021 STAFF REPORT Mid-Year Treasurer’s Report For the Period Ended December 31, 2020 SUMMARY Section 17.0 of the Orange County Sanitation District's (Sanitation District) Investment Policy includes quarterly reporting requirements for the Sanitation District's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by Chandler Asset Management, the Sanitation District’s external money manager. The ongoing monitoring of the Sanitation District's investment program by staff and Callan Associates, the Sanitation District's independent investment advisor, indicates that the Sanitation District’s investments are in compliance with the Sanitation District's adopted Investment Policy and the California Government Code, and that overall performance has tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues are available for the Sanitation District to meet budgeted expenditures for the next six months. The Sanitation District portfolios do not include any reverse repurchase agreements or derivative securities. ADDITIONAL INFORMATION Performance Reports The Quarterly Strategy Review, prepared by Chandler Asset Management, and the Investment Measurement Service Quarterly Review, prepared by Callan Associates, is attached for reference. Also attached are Long-Term and Liquid Operating Monies Summary of Performance Data and Portfolio Statistics charts that depict the performance results, estimated yield and duration, credit quality, and sector diversification of the Sanitation District portfolios, as of December 31, 2020. The Liquid Operating Monies portfolio, with an average maturity of 120 days, consists entirely of high quality fixed income investments consistent with the Sanitation District’s investment policy. Portfolio Performance Summary The following table presents a performance summary of the Sanitation District portfolios as compared to their benchmarks as of December 31, 2020. Quarterly Treasurer’s Report For the Period Ended December 31, 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) 31 Mar 20 113.5 590.3 30 Jun 20 178.6 623.3 30 Sep 20 128.7 625.2 31 Dec 20 225.7 657.6 Portfolio Performance Summary As of December 31, 2020 Liquid Operating Monies (%)Long-Term Operating Monies (%) Total Rate of Return Benchmark(1) Total Rate of Return Benchmark(1) 3 Months 0.03 0.03 0.21 0.15 6 Months 0.07 0.07 0.50 0.39 9 Months 0.14 0.09 1.83 1.43 12 Months 0.87 0.67 4.39 4.43 Annualized Since inception 30 Nov 2014 1.12 0.99 2.26 2.22 Market Value $225.7 M $657.6 M Average Quality “AAA”/”Aaa” “AA”/”Aa1” Current Yield (%) 0.9 1.8 Estimated Yield to Maturity (%) 0.1 0.2 Quarterly Deposits (Withdrawals) $97.0 M $31.0 M Estimated Annual Income $0.3 M $11.7 M Quarterly Treasurer’s Report For the Period Ended December 31, 2020 Page 3 of 4 Orange County Sanitation District Investment Account Balances as of December 31, 2020 Investment Accounts Book Balances December 31, 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 $74,534,691 3,000,000 339,879 82,428 50,000 261,213 549,348 225,711,282 657,618,803 6,500 500,619 $962,654,763 $129 0.54 0.55 0.11 0.55 0.55 0.70 0.70 0.14 0.22 0.00 0.00 0.23 0.01 Orange County Sanitation District Cost of Funds on Debt Issues as of December 31, 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 December 31, 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 December 31, 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 While we remain optimistic about the longer-term outlook, recent economic data suggests that the economy has lost momentum as virus cases have risen. We believe the near-term will remain challenging as the labor market remains under pressure and many regions have renewed business restrictions due to the virus. However, the passage of a new $900 billion COVID-19 fiscal relief bill should help cushion the economy over the next few months, and we believe the incoming Presidential administration will have a keen focus on accelerating vaccine distribution and getting the economy back on track. While the vaccine rollout has gotten off to a slow start, we expect more widespread distribution of vaccines in the second and third quarter of 2021. We also expect the Fed’s highly accommodative monetary policy framework will continue to provide support for the financial markets. The Federal Open Market Committee (FOMC) kept monetary policy unchanged at their December meeting as expected, with the fed funds target rate in a range of 0.0% to 0.25%. The Fed intends to remain highly accommodative until their goals of maximum employment and higher inflation are achieved. The Fed’s summary of economic projections continues to signal that the target fed funds rate will remain unchanged until at least 2023, as policymakers do not expect inflation to exceed 2.0% during that timeframe. Until the Fed has made substantial progress toward achieving their dual mandate of maximum employment and price stability, they have set a floor for monthly asset purchases of at least $80 billion per month of Treasuries and $40 billion per month of agency mortgage-backed securities. Notably, the Fed's outlook for GDP over the next few years was revised higher and the outlook for unemployment was revised lower compared with their previous forecasts in September, which suggests increased optimism. Nevertheless, the outlook remains uncertain and Fed Chair Powell indicated that the Fed would increase policy accommodation further if progress toward their dual mandate slows. The Treasury yield curve steepened in December, due at least in part by favorable developments on the vaccine front and anticipation of improving economic activity in 2021. The yield on 2-year Treasuries was down slightly to 0.12% while the yield on 10-year Treasuries was up nearly eight basis point to 0.92%. In 2020, Treasury yields declined but the curve steepened as short-term rates declined more than long-term rates. The 3- month T-bill yield was down 149 basis points, the 2-year Treasury yield was down 145 basis points, and the 10-Year Treasury yield was down 100 basis points, year-over-year. 2 Consumer Prices The Consumer Price Index (CPI) was up 1.2% year-over-year in November, unchanged from October. Core CPI (CPI less food and energy) was up 1.6% year-over-year in November, also unchanged from October. The Personal Consumption Expenditures (PCE) index was up 1.1% year-over-year in November, versus up 1.2% year-over-year in October. Core PCE, which is the Fed's primary inflation gauge, was up 1.4% year-over-year in November, unchanged from October. Inflation remains below the Fed's target. Retail Sales Consumer spending trends softened in November. On a year-over-year basis, retail sales were up 4.1% in November versus 5.5% in October. On a month-over-month basis, retail sales declined 1.1% in November, with broad-based declines in many categories on a seasonally adjusted basis. Excluding vehicles and gas, retail sales fell 0.8% in November, following a 0.1% decline in October. Notably, retail sales make up roughly one third of the personal consumption expenditures component of US gross domestic product (GDP), while services revenue comprises roughly two thirds. Spending on services has been hit particularly hard by the pandemic and lagged the pick-up in overall third quarter GDP. While retail sales remain higher on a year-over-year basis, we believe this has been partially boosted by the contraction in spending on services. Labor Market U.S. nonfarm payrolls declined by 140,000 in December. It was the first monthly decline in nonfarm payrolls since April of last year and came in well below expectations for a 50,000 gain. The monthly decline was led by the leisure and hospitality sector which experienced a 498,000 net decline in payrolls in December, along with modest declines in government jobs and education and health services. The unemployment rate was unchanged in December at 6.7% and has improved significantly from the peak of 14.8% last April. Nevertheless, more than 10.7 million people remain unemployed. Workers who classified themselves as employed but absent from work in December continued to understate the unemployment rate by about 0.6%. 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 declined to 11.7% in December from 12.0% in November. The labor participation rate was unchanged at 61.5% in December and remains well below pre-pandemic levels. Housing Starts Total housing starts increased 1.2% in November to an annual pace of 1,547,000. Single family starts inched up 0.4% to a very strong annualized rate of 1,186,000, while multi-family starts increased 4.0% to an annualized rate of 361,000. On a year-over-year basis, total housing starts were up 12.8% in November, driven by growth in single-family starts. Meanwhile, permits were up 6.2% on a month-over-month basis in November, to an annualized rate of 1,639,000 (the strongest rate since 2006). 3 TREASURY YIELDS 12/31/2020 9/30/2020 CHANGE 3 Month 0.07 0.09 (0.02) 2 Year 0.2 0.13 0.07 3 Year 0.17 0.16 0.01 5 Year 0.36 0.28 0.08 7 Year 0.65 0.47 0.18 10 Year 0.92 0.68 0.24 30 Year 1.65 1.46 0.19 4 Performance Attribution Long-Term Portfolio The portfolio generated a positive absolute and relative return during the quarter of 0.21% compared to the 0.15% return of the ICE Bank of America Merrill Lynch 1-5 Year US Corporate and Government AAA-A Index. The overweight to the Agency sector compared to the benchmark aided the performance of the portfolio. The out of benchmark exposure to the Asset Backed sector was also beneficial as spreads in the Agency, Asset Backed and Corporate sectors all rallied during the quarter. The Corporate allocation was a modest detractor from performance per the attribution model due to the underlying mix of securities. The OC San portfolio has an up in quality bias within the underlying Corporate holdings in the portfolio and the lower quality portions of the benchmark experienced greater spread compression during the quarter. The Chandler team will continue to optimize the structure of the portfolio and underlying mix of securities to deliver consistent, stable investment returns over the coming quarters. Multiple securities were purchased across the Treasury, Agency, Supranational, Certificate of Deposit and Corporate sectors of the allocation. The purchased securities ranged in maturity from February 2021 to December 2025. Two securities were sold, several matured, and $31 million was contributed into the portfolio to facilitate the new holdings. The sector allocation was relatively stable. The Supranational exposure increased due to the Chandler team participating in a new issue deal in the sector while the ABS allocation contracted due to the pay down of principal and interest during the quarter. The duration of the portfolio contracted to 2.44 compared to 2.52 at the end of the prior quarter. The large cash contribution late in the year contributed to the shortening of the duration of the portfolio. The Chandler team will be working to keep the duration close to the benchmark duration in coming quarters. Liquid Portfolio Many securities were purchase across the Treasury, Agency, and Certificate of Deposit sectors to keep the portfolio positioned consistent with the strategy and to spend down the $97 million contribution late in December. The purchased securities ranged in maturity between January 2021 to July 2021. Multiple securities also matured during the quarter. The sector allocation was relatively stable. The Treasury allocation increased to 81.2% of the portfolio due to the large contribution late in the year when liquidity in other investment vehicles was lacking. The duration of the portfolio was stable ending the quarter at 0.33 compared to 0.32 at the end of September. 5 Economic Outlook Increasing coronavirus case counts and the subsequent decrease in consumer mobility was poised to adversely impact the market and economic outlook in the fourth quarter of 2020. However, in early November markets received unambiguous positive news with the results of the clinical trial for the Pfizer BioNTech Vaccine being released and exhibiting a very high efficacy rate for the COVID-19 coronavirus. The timeline for a viable vaccine was consistent with market expectations however the high efficacy rate was viewed as “new news” which changed sentiment and propelled risk assets higher. Markets began to aggressively position for the “reopening trade” as both investment grade and high yield credit spreads moved tighter, and equity market breadth improved materially with the small cap sector outperforming the large cap sector. Consistent with the improved global outlook correlated with the vaccine developments, the US dollar moved lower and Treasury yields moved moderately higher, with longer maturity yields moving higher at a faster pace as the Treasury curve began to steepen. Political rhetoric related to the election and additional fiscus stimulus dominated the headlines throughout the quarter. Despite the almost daily back and forth between Congressional leadership, late in the quarter additional fiscal stimulus was finally passed, which should help to stabilize the economy as the vaccination process quickens in Q1 and Q2 of 2021. The incoming Biden administration is also expected to seek further fiscal support to enhance economic growth in 2021. Additionally, the Federal Reserve continues to provide strong support to the economic recovery despite the sunsetting of several liquidity tools implemented at the height of the crisis in March and April of 2020. The Chandler team does not have any immediate concerns about the expiration of the Fed backstops. In the event the market becomes dislocated again due to another exogenous shock to the economy we have a high level of confidence the US Treasury and Federal Reserve would work closely together to reimplement the tools to stabilize markets. The Federal Reserve also updated their Summary of Economic Projections in mid-December. The Fed continues to emphasize a willingness to keep policy highly stimulative until their dual mandate of full employment and stable prices is achieved. Notably, the Fed is looking for inflation to average 2% over the cycle and is expressing a willingness to tolerate inflation above the target for a period of time to make up for the shortfalls below the target over the past decade. Market based measure of inflation continue to price in a higher probability of the Fed meeting their inflation objective as the Ten Year TIP breakeven spread – a market based measure of longer term inflation expectations – increased to 1.99% as of December 31 compared to 1.63% at the end of September. The Chandler team expects the Fed Funds rate to remain at the zero lower bound for all of 2021 and is closely monitoring market based measures of inflation; the Ten Year TIP breakeven spread needs to trade in a consistent range of 2.30% to 2.60% for a period of time before Fed officials would consider altering their stance on the zero lower bound in Chandler’s view. Economic data continues to recover from the shock to the system in March and April of 2020. However, many metrics will not fully recover until a large portion of the domestic population has achieved immunity from the coronavirus. Nonfarm payrolls were robust through the summer, but the rate of improvement slowed late in the year. The three month moving average on nonfarm payroll growth moved down to 283k in December compared to 1,321k as of September. The U3 unemployment rate is currently at 6.7%, after having topped out at 14.8% in April 2020 while the U6 Underemployment rate remains elevated at 11.7% compared to 22.9% in April. The manufacturing indices have been a bright spot, with the ISM Manufacturing Index reaching a YTD high in December at 60.7 with the ISM Non-Manufacturing Index most recent reading at 57.2. The consumer facing portion of the economy continues to face strong headwinds, however the Chandler team is confident substantial pent-up demand has the potential to propel the economy forward in the 2nd half of 2021. The current fiscal and monetary policy settings should continue to provide a constructive backdrop for asset prices in 2021 despite the secular changes to the economy due to the pandemic. 6 Strategy Strategy highlights for the Long-Term Portfolio in coming months: • Focus on positioning the portfolio with a term structure and asset allocation that will benefit the performance as the domestic economy gradually reopens through the course of 2021 with the distribution of vaccines to combat the COVID-19 coronavirus. o Utilize the new issue market in the Corporate and ABS sector to increase exposure. o Remain opportunistic and patient in adding risk exposure to the portfolio as valuations at year-end were full. o Selectively increase exposure to the Supranational sector while it is trading at a relative value discount to the Agency sector. • Monetary policy is poised to remain at the zero lower bound for all of 2021. The Chandler team anticipates keeping the duration of the portfolio consistent with the benchmark during the 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 CompliesCertificates 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 CompliesMax 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 CompliesCertificates 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 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 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 OC SAN 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. OC SAN Lehman Exposure - Account #10284 9 Ratings 10 HISTORICAL YIELD CURVE ACCOUNT SUMMARY Beg. Values as of 11/30/20 End Values as of 12/31/20 Market Value 128,388,322 225,317,647 Accrued Interest 326,239 387,715 Total Market Value 128,714,561 225,705,362 Income Earned 17,537 17,754 Cont/WD 97,000,001 Par 127,918,335 224,489,076 Book Value 128,371,585 225,327,863 Cost Value 128,476,063 225,504,962 TOP ISSUERS Government of United States 81.2% Federal Home Loan Bank 8.6% First American Govt Obligation 4.7% MUFG Bank Ltd/NY 1.1% Toronto Dominion Holdings 0.8% Toyota Motor Corp 0.7% Royal Bank of Canada 0.7% Charles Schwab Corp/The 0.6% Total 98.4% PORTFOLIO CHARACTERISTICS Average Modified Duration 0.33 Average Coupon 0.87% Average Purchase YTM 0.13% Average Market YTM 0.14% Average S&P/Moody Rating AAA/Aaa Average Final Maturity 0.33 yrs Average Life 0.29 yrs CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION Portfolio Summary As of December 31, 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 0.00% 0.03% 0.87% 0.87% 1.64% 1.73% 1.31% N/A 1.12% ICE BAML 3-Month US Treasury Bill Index 0.01% 0.03% 0.67% 0.67% 1.47% 1.60% 1.20% N/A 0.99% Execution Time: 1/4/2021 7:06:14 PMChandler Asset Management - CONFIDENTIAL Page 1 ACCOUNT SUMMARY Beg. Values as of 11/30/20 End Values as of 12/31/20 Market Value 622,779,259 655,005,456 Accrued Interest 2,878,963 2,623,087 Total Market Value 625,658,221 657,628,543 Income Earned 948,221 945,314 Cont/WD 31,005,209 Par 600,127,383 632,352,584 Book Value 601,146,261 633,352,660 Cost Value 600,773,284 632,986,847 TOP ISSUERS Government of United States 34.2% Federal National Mortgage Assoc 14.5% Federal Home Loan Bank 8.7% Federal Home Loan Mortgage Corp 6.8% Intl Bank Recon and Development 3.6% Inter-American Dev Bank 2.3% Federal Farm Credit Bank 2.2% First American Govt Obligation 1.6% Total 73.7% PORTFOLIO CHARACTERISTICS Average Modified Duration 2.44 Average Coupon 1.80% Average Purchase YTM 1.78% Average Market YTM 0.22% Average S&P/Moody Rating AA+/Aa1 Average Final Maturity 2.62 yrs Average Life 2.49 yrs CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION Portfolio Summary As of December 31, 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 0.15% 0.21% 4.39% 4.39% 4.52% 3.51% 2.62% N/A 2.26% ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index 0.11% 0.15% 4.43% 4.43% 4.52% 3.50% 2.56% N/A 2.22% ICE BAML US 1-5 Yr US Corp/Govt Rated AAA-BBB Indx 0.17% 0.37% 4.65% 4.65% 4.86% 3.69% 2.79% N/A 2.40% Execution Time: 1/5/2021 11:47:30 AMChandler Asset Management - CONFIDENTIAL Page 1 Par Value Book Value Market Value Rate Yield Balance December 1, 2020 $74,734,691 $74,734,691 $74,734,691 0.54 0.54 Deposits: 12/23/2020 7,000,000 7,000,000 7,000,000 0.54 0.54 12/31/2020 6,400,000 6,400,000 6,400,000 0.54 0.54 Total Deposits 13,400,000 13,400,000 13,400,000 0.54 0.54 Quarterly Interest Distribution - - - 0.54 0.54 Withdrawals: 12/1/2020 (2,000,000) (2,000,000) (2,000,000) 0.54 0.54 12/3/2020 (2,900,000) (2,900,000) (2,900,000) 0.54 0.54 12/9/2020 (2,100,000) (2,100,000) (2,100,000) 0.54 0.54 12/15/2020 (2,700,000) (2,700,000) (2,700,000) 0.54 0.54 12/17/2020 (900,000) (900,000) (900,000) 0.54 0.54 12/29/2020 (3,000,000) (3,000,000) (3,000,000) 0.54 0.54 Total Withdrawals (13,600,000) (13,600,000) (13,600,000) 0.54 0.54 Balance December 31, 2020 $74,534,691 $74,534,691 $74,534,691 0.54 0.54 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund December 31, 2020 U.S. Bank Asset Summary - Liquid As of 12/31/2020 Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss Cash Equivalents FIRST AMERICAN SHORT TERM FDS 10,599,075.5200 10,599,075.52 10,599,075.52 4.70 - U. S. GOVERNMENT 68,250,000.0000 68,184,741.81 68,246,670.00 30.29 61,928.19 Cash Equivalents Total 78,849,075.5200 78,783,817.33 78,845,745.52 34.99 61,928.19 Fixed Income CONSUMER DISCRETIONARY 1,500,000.0000 1,523,295.00 1,513,560.00 0.67 (9,735.00) CONSUMER STAPLES 750,000.0000 768,877.50 754,005.00 0.33 (14,872.50) FINANCE 1,385,000.0000 1,419,472.65 1,397,395.75 0.62 (22,076.90) FOREIGN FIXED INCOME 1,750,000.0000 1,774,762.50 1,752,082.50 0.78 (22,680.00) INDUSTRIAL 600,000.0000 607,086.00 602,052.00 0.27 (5,034.00) INFORMATION TECHNOLOGY 1,155,000.0000 1,182,327.30 1,164,390.15 0.52 (17,937.15) SHORT TERM FUNDS 4,000,000.0000 4,000,000.00 4,001,790.00 1.78 1,790.00 SUPRANATIONAL 1,000,000.0000 1,010,570.00 1,004,490.00 0.45 (6,080.00) U. S. GOVERNMENT 114,000,000.0000 114,937,656.30 114,788,460.00 50.94 (149,196.30) US AGY - LONG TERM ISSUES 19,500,000.0000 19,497,097.50 19,499,100.00 8.65 2,002.50 Fixed Income Total 145,640,000.0000 146,721,144.75 146,477,325.40 65.01 (243,819.35) Grand Total 224,489,075.5200 225,504,962.08 225,323,070.92 100.00 (181,891.16) 1 of 1 U.S. Bank Asset Summary - Long-Term As of 12/31/2020 Industry Name Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss Cash Equivalents FIRST AMERICAN SHORT TERM FDS 10,413,934.7200 10,413,934.72 10,413,934.72 1.59 - U. S. GOVERNMENT 15,000,000.0000 14,998,725.00 14,999,250.00 2.29 525.00 Cash Equivalents Total 25,413,934.7200 25,412,659.72 25,413,184.72 3.88 525.00 Fixed Income CONSUMER DISCRETIONARY 9,064,000.0000 9,174,701.78 9,561,362.15 1.46 386,660.37 CONSUMER STAPLES 3,880,000.0000 3,878,991.40 4,166,887.20 0.64 287,895.80 ENERGY 9,000,000.0000 8,942,542.40 9,240,375.00 1.41 297,832.60 FINANCE 66,764,000.0000 66,159,243.30 67,611,374.13 10.32 1,452,130.83 FOREIGN FIXED INCOME 14,500,000.0000 14,676,215.00 15,576,235.00 2.38 900,020.00 HEALTH CARE 2,000,000.0000 1,948,640.00 2,120,960.00 0.32 172,320.00 INDUSTRIAL 4,410,000.0000 4,388,275.50 4,555,080.80 0.70 166,805.30 INFORMATION TECHNOLOGY 23,715,000.0000 23,631,389.55 24,735,663.00 3.78 1,104,273.45 INVESTMENT GRADE-MUNI REVENUE 400,000.0000 400,000.00 406,632.00 0.06 6,632.00 MTG RELATED SECURITY 24,306,131.0300 24,379,719.87 24,686,961.77 3.77 307,241.90 SHORT TERM FUNDS 5,000,000.0000 5,000,000.00 4,999,800.00 0.76 (200.00) SUPRANATIONAL 43,135,000.0000 42,847,805.45 43,663,899.00 6.67 816,093.55 U. S. GOVERNMENT 190,004,774.0500 188,686,150.52 197,004,506.73 30.08 8,318,356.21 U.S. GOVERNMENT TIPS 11,404,744.0000 11,260,024.09 12,210,831.31 1.86 950,807.22 US AGY - LONG TERM ISSUES 201,955,000.0000 203,517,559.15 209,045,625.75 31.92 5,528,066.60 Fixed Income Total 609,538,649.0800 608,891,258.01 629,586,193.84 96.12 20,694,935.83 Grand Total 634,952,583.8000 634,303,917.73 654,999,378.56 100.00 20,695,460.83 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 valuesfor 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 valuesused 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 12/01/2020 Through 12/31/2020 Statement of Assets Held by Asset Classification Statement of Transactions by Transaction Date Account 300282 Base Currency = USDOCSD LIBERTY MUTUAL 499,000.000 UNITED STATES TREASURY BILL 99.98300 498,915.17 498,369.32 99.87361 0.00 0.00 0.00%CUSIP: 9127962F5 MATURITY DATE: 03/25/2021RATE: 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 500,618.76 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 500,618.76 500,072.91 0.00 0.00 0.00% ACCOUNT TOTALS 500,618.76 500,072.91 0.00 0.00 0.00% e 1 3 2 5 4 9 n 1 1 5 5 1 2 a 0 1 t D O M i W I s 6 8 6 , 7 4 3 U.S. Bank Investment Listing - Yield As of 12/31/2020 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 0.0260% 10,599,075.5200 1.00 10,599,075.52 10,599,075.52 Cash Equivalents 31846V567 FIRST AM GOVT OB FD CL Z 0.0260% 10,413,934.7200 1.00 10,413,934.72 10,413,934.72 Cash Equivalents 9127963W7 U S TREASURY BILL 2/04/21 0.0563% 15,000,000.0000 N/A N/A 100.00 14,998,725.00 14,999,250.00 Cash Equivalents 912796UC1 U S TREASURY BILL 1/28/21 0.0500% 58,250,000.0000 N/A N/A 100.00 58,193,363.48 58,247,670.00 Cash Equivalents 912796XE4 U S TREASURY BILL 2/25/21 0.0638% 10,000,000.0000 N/A N/A 99.99 9,991,378.33 9,999,000.00 Fixed Income 00440EAP2 ACE INA HOLDINGS 2.700% 3/13/23 2.5640% 2,000,000.0000 A3 A 105.31 1,937,000.00 2,106,120.00 Fixed Income 00440EAS6 ACE INA HOLDING 3.150% 3/15/25 2.8539% 2,000,000.0000 A3 A 110.38 2,203,740.00 2,207,520.00 Fixed Income 00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 2.7580% 4,169,000.0000 A3 A 104.24 4,232,453.17 4,345,848.98 Fixed Income 02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 3.2033% 845,000.0000 A3 A- 107.70 843,538.15 910,090.35 Fixed Income 02665WCQ2 AMERICAN HONDA MTN 3.625% 10/10/23 3.3318% 2,000,000.0000 A3 A- 108.80 1,998,320.00 2,176,000.00 Fixed Income 02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 2.2595% 1,219,000.0000 A3 A- 106.22 1,213,843.63 1,294,821.80 Fixed Income 03215PFN4 AMRESCO 1.01546% 6/25/29 1.0769% 119,021.6400 N/A A+ 94.30 89,377.81 112,232.65 Fixed Income 037833AR1 APPLE INC 2.850% 5/06/21 2.8270% 1,155,000.0000 AA1 AA+ 100.81 1,182,327.30 1,164,390.15 Fixed Income 037833BS8 APPLE INC 2.250% 2/23/21 2.2473% 4,000,000.0000 AA1 AA+ 100.12 4,050,840.00 4,004,760.00 Fixed Income 037833CU2 APPLE INC 2.850% 5/11/24 2.6432% 3,000,000.0000 AA1 AA+ 107.83 3,017,760.00 3,234,750.00 Fixed Income 06051GHF9 BANK OF AMERICA 3.550% 3/05/24 3.3231% 6,675,000.0000 A2 A- 106.83 6,770,625.75 7,130,835.75 Fixed Income 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 2.5398% 2,500,000.0000 A1 A 102.37 2,504,475.00 2,559,250.00 Fixed Income 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 2.8045% 2,500,000.0000 A1 A 105.19 2,489,555.00 2,629,675.00 Fixed Income 06417MMB8 BANK OF NOVA C D 0.280% 11/24/21 0.2800% 5,000,000.0000 100.00 5,000,000.00 4,999,800.00 Fixed Income 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 2.8898% 4,000,000.0000 AA2 AA 103.81 4,131,120.00 4,152,560.00 Fixed Income 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 2.6186% 2,500,000.0000 AA2 AA 105.02 2,440,950.00 2,625,400.00 Fixed Income 09247XAL5 BLACKROCK INC 3.500% 3/18/24 3.1865% 1,000,000.0000 AA3 AA- 109.84 1,036,330.00 1,098,400.00 Fixed Income 166764AH3 CHEVRON CORP 3.191% 6/24/23 3.0003% 3,500,000.0000 AA2 AA 106.36 3,441,095.00 3,722,460.00 Fixed Income 166764BG4 CHEVRON CORP 2.100% 5/16/21 2.0886% 2,500,000.0000 AA2 AA 100.55 2,485,350.00 2,513,625.00 Fixed Income 24422EUM9 JOHN DEERE MTN 3.650% 10/12/23 3.3433% 1,250,000.0000 A2 A 109.17 1,250,237.50 1,364,650.00 Fixed Income 30231GAV4 EXXON MOBIL 2.222% 3/01/21 2.2188% 3,000,000.0000 AA1 AA 100.14 3,016,097.40 3,004,290.00 Fixed Income 3130A0F70 F H L B DEB 3.375% 12/08/23 3.0892% 10,000,000.0000 AAA AA+ 109.25 10,269,043.75 10,925,200.00 Fixed Income 3130A1XJ2 F H L B 2.875% 6/14/24 2.6338% 11,110,000.0000 AAA AA+ 109.16 11,589,031.30 12,127,342.70 Fixed Income 3130A2UW4 F H L B DEB 2.875% 9/13/24 2.6215% 2,500,000.0000 AAA AA+ 109.67 2,635,950.00 2,741,700.00 Fixed Income 3130A4CH3 F H L B DEB 2.375% 3/14/25 2.1936% 5,225,000.0000 AAA AA+ 108.27 5,526,848.25 5,657,107.50 Fixed Income 3130A7CV5 F H L B DEB 1.375% 2/18/21 1.3729% 5,365,000.0000 AAA AA+ 100.16 5,343,325.40 5,373,369.40 Fixed Income 313379RB7 F H L B DEB 1.875% 6/11/21 1.8610% 4,000,000.0000 AAA AA+ 100.75 4,030,160.00 4,030,080.00 Fixed Income 313383QR5 F H L B DEB 3.250% 6/09/23 3.0260% 5,000,000.0000 AAA AA+ 107.40 5,083,350.00 5,370,200.00 Fixed Income 313383YJ4 F H L B DEB 3.375% 9/08/23 3.1091% 10,000,000.0000 AAA AA+ 108.55 10,211,831.00 10,855,300.00 Fixed Income 313385AD8 F H L B DISC NTS 1/04/21 0.0000% 1,500,000.0000 N/A N/A 1.00 1,498,340.00 1,500,000.00 Fixed Income 313385AX4 F H L B DISC NTS 1/22/21 0.0000% 9,000,000.0000 N/A N/A 100.00 8,999,543.75 8,999,730.00 Fixed Income 313385BL9 F H L B DISC NTS 2/04/21 0.0000% 9,000,000.0000 N/A N/A 99.99 8,999,213.75 8,999,370.00 Fixed Income 3133EKWV4 F F C B DEB 1.850% 7/26/24 1.7520% 5,000,000.0000 AAA AA+ 105.60 5,048,280.00 5,279,800.00 Fixed Income 3133ELYR9 F F C B DEB 0.250% 5/06/22 0.2495% 8,850,000.0000 AAA AA+ 100.19 8,838,760.50 8,866,815.00 Fixed Income 3133TCE95 F H L M C MLTCL MTG 3.929% 8/15/32 3.8850% 4,473.7000 N/A N/A 101.13 4,478.39 4,524.42 1 of 4 U.S. Bank Investment Listing - Yield As of 12/31/2020 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 31348SWZ3 F H L M C #786064 2.752% 1/01/28 2.7540% 1,579.2700 N/A N/A 99.93 1,540.81 1,578.10 Fixed Income 3135G03U5 F N M A DEB 0.625% 4/22/25 0.6177% 14,000,000.0000 AAA AA+ 101.18 13,996,711.60 14,164,640.00 Fixed Income 3135G04Z3 F N M A 0.500% 6/17/25 0.4974% 9,905,000.0000 AAA AA+ 100.53 9,884,496.65 9,957,595.55 Fixed Income 3135G05G4 F N M A 0.250% 7/10/23 0.2494% 6,775,000.0000 AAA AA+ 100.24 6,760,433.75 6,791,192.25 Fixed Income 3135G05X7 F N M A 0.375% 8/25/25 0.3751% 7,945,000.0000 AAA AA+ 99.98 7,907,817.40 7,943,252.10 Fixed Income 3135G06G3 F N M A 0.500% 11/07/25 0.4979% 8,255,000.0000 AAA AA+ 100.42 8,225,447.10 8,289,505.90 Fixed Income 3135G0J20 F N M A DEB 1.375% 2/26/21 1.3725% 10,000,000.0000 AAA AA+ 100.18 10,040,950.00 10,018,400.00 Fixed Income 3135G0S38 F N M A 2.000% 1/05/22 1.9627% 3,000,000.0000 AAA AA+ 101.90 2,994,570.00 3,057,090.00 Fixed Income 3135G0T45 F N M A 1.875% 4/05/22 1.8345% 5,000,000.0000 AAA AA+ 102.21 4,972,500.00 5,110,500.00 Fixed Income 3135G0T94 F N M A DEB 2.375% 1/19/23 2.2710% 5,000,000.0000 AAA AA+ 104.58 4,910,990.00 5,229,000.00 Fixed Income 3135G0U35 F N M A 2.750% 6/22/21 2.7163% 7,500,000.0000 AAA AA+ 101.24 7,515,225.00 7,593,000.00 Fixed Income 3135G0V34 F N M A 2.500% 2/05/24 2.3341% 5,000,000.0000 AAA AA+ 107.11 4,980,850.00 5,355,300.00 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 31371NUC7 F N M A #257179 4.500% 4/01/28 4.1552% 10,705.2100 N/A N/A 108.30 11,321.81 11,593.42 Fixed Income 31376KT22 F N M A #357969 5.000% 9/01/35 4.2993% 78,622.3900 N/A N/A 116.30 84,519.05 91,437.05 Fixed Income 3137EAEL9 F H L M C M T N 2.375% 2/16/21 2.3687% 7,500,000.0000 AAA AA+ 100.27 7,484,475.00 7,520,100.00 Fixed Income 3137EAEN5 F H L M C 2.750% 6/19/23 2.5866% 10,000,000.0000 AAA AA+ 106.32 9,956,500.00 10,631,700.00 Fixed Income 3137EAEP0 F H L M C 1.500% 2/12/25 1.4299% 12,335,000.0000 AAA AA+ 104.90 12,510,182.05 12,939,785.05 Fixed Income 3137EAEU9 F H L M C M T N 0.375% 7/21/25 0.3748% 5,030,000.0000 AAA AA+ 100.05 5,004,950.60 5,032,665.90 Fixed Income 3137EAEX3 F H L M C M T N 0.375% 9/23/25 0.3756% 7,660,000.0000 AAA AA+ 99.83 7,636,943.40 7,647,284.40 Fixed Income 3138EG6F6 F N M A #AL0869 4.500% 6/01/29 4.1187% 6,954.1500 N/A N/A 109.26 7,354.71 7,597.90 Fixed Income 31394JY35 F H L M C MLTCL MTG 6.500% 9/25/43 5.5906% 561,133.9500 N/A N/A 116.27 635,484.20 652,413.61 Fixed Income 31397QRE0 F N M A GTD REMIC 2.472% 2/25/41 0.8168% 135,973.2200 N/A N/A 101.37 135,930.74 137,840.13 Fixed Income 31403DJZ3 F N M A #745580 5.000% 6/01/36 4.3049% 70,722.8100 N/A N/A 116.15 76,027.01 82,142.42 Fixed Income 31403GXF4 F N M A #748678 5.000% 10/01/33 4.4291% 1,318.1100 N/A N/A 112.89 1,416.97 1,488.03 Fixed Income 31406PQY8 F N M A #815971 5.000% 3/01/35 4.3008% 105,426.6600 N/A N/A 116.26 113,333.68 122,565.87 Fixed Income 31406XWT5 F N M A #823358 2.937% 2/01/35 2.8133% 91,103.5200 N/A N/A 104.40 90,391.78 95,110.25 Fixed Income 31407BXH7 F N M A #826080 5.000% 7/01/35 4.3003% 13,805.5700 N/A N/A 116.27 14,840.97 16,051.74 Fixed Income 31410F4V4 F N M A #888336 5.000% 7/01/36 4.3145% 130,793.5200 N/A N/A 115.89 140,603.04 151,573.99 Fixed Income 31417YAY3 F N M A #MA0022 4.500% 4/01/29 4.1547% 11,574.1200 N/A N/A 108.31 12,240.77 12,535.93 Fixed Income 36225CAZ9 G N M A I I #080023 3.125% 12/20/26 3.0224% 11,409.5500 N/A N/A 103.39 11,598.04 11,796.68 Fixed Income 36225CC20 G N M A I I #080088 2.875% 6/20/27 2.8224% 8,992.7500 N/A N/A 101.87 9,189.47 9,160.46 Fixed Income 36225CN28 G N M A I I #080408 2.875% 5/20/30 2.7634% 35,807.2900 N/A N/A 104.04 35,443.62 37,252.83 Fixed Income 36225CNM4 G N M A I I #080395 2.875% 4/20/30 2.7635% 4,774.0500 N/A N/A 104.04 4,730.75 4,966.73 Fixed Income 36225DCB8 G N M A I I #080965 2.250% 7/20/34 2.1555% 31,941.8600 N/A N/A 104.39 31,921.91 33,342.83 Fixed Income 369550BE7 GENERAL DYNAMICS 3.000% 5/11/21 2.9714% 3,160,000.0000 A2 A 100.96 3,138,038.00 3,190,430.80 Fixed Income 43813KAC6 HONDA AUTO 0.370% 10/18/24 0.3694% 3,235,000.0000 N/A AAA 100.17 3,234,524.78 3,240,467.15 Fixed Income 43814UAG4 HONDA AUTO 3.010% 5/18/22 2.9851% 631,002.3200 N/A AAA 100.83 630,988.57 636,264.88 Fixed Income 43815HAC1 HONDA AUTO 2.950% 8/22/22 2.9155% 1,791,651.3800 AAA N/A 101.19 1,791,405.57 1,812,882.45 Fixed Income 43815NAB0 HONDA AUTO 1.900% 4/15/22 1.8932% 1,347,348.3800 AAA AAA 100.36 1,347,254.07 1,352,171.89 2 of 4 U.S. Bank Investment Listing - Yield As of 12/31/2020 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 438516CB0 HONEYWELL 1.350% 6/01/25 1.3030% 5,000,000.0000 A2 A 103.61 5,119,000.00 5,180,450.00 Fixed Income 44932HAH6 IBM CREDIT CORP 3.000% 2/06/23 2.8328% 5,670,000.0000 A2 A 105.90 5,603,264.40 6,004,643.40 Fixed Income 458140BD1 INTEL CORP 2.875% 5/11/24 2.6643% 5,000,000.0000 A1 A+ 107.91 5,025,900.00 5,395,350.00 Fixed Income 4581X0CS5 INTER AMER BK M T N 1.875% 3/15/21 1.8691% 5,000,000.0000 AAA AAA 100.32 5,059,610.00 5,015,850.00 Fixed Income 4581X0CW6 INTER AMER DEV BK 2.125% 1/18/22 2.0846% 3,000,000.0000 AAA N/A 101.94 2,996,310.00 3,058,110.00 Fixed Income 4581X0CZ9 INTER AMER DEV BK 1.750% 9/14/22 1.7044% 6,500,000.0000 AAA AAA 102.68 6,249,655.00 6,673,875.00 Fixed Income 459058FH1 INTL BK 1.375% 5/24/21 1.3689% 1,000,000.0000 AAA AAA 100.45 1,010,570.00 1,004,490.00 Fixed Income 459058FY4 INTL BK 2.000% 1/26/22 1.9625% 10,000,000.0000 AAA N/A 101.91 10,006,350.00 10,191,200.00 Fixed Income 459058JB0 INTL BK M T N 0.625% 4/22/25 0.6190% 6,245,000.0000 AAA AAA 100.97 6,220,831.85 6,305,326.70 Fixed Income 459058JL8 INTL BK M T N 0.500% 10/28/25 0.4991% 6,920,000.0000 AAA AAA 100.19 6,912,180.40 6,932,940.40 Fixed Income 45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 1.1193% 2,500,000.0000 AAA AAA 100.51 2,441,600.00 2,512,825.00 Fixed Income 45950KCM0 INTL BK M T N 2.250% 1/25/21 2.2471% 2,970,000.0000 AAA AAA 100.13 2,961,268.20 2,973,771.90 Fixed Income 46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 2.5681% 5,000,000.0000 A2 A- 105.14 4,821,910.00 5,256,750.00 Fixed Income 46647PAU0 JPMORGAN CHASE CO 3.797% 7/23/24 3.5003% 2,500,000.0000 A2 A- 108.48 2,632,175.00 2,711,900.00 Fixed Income 477870AB5 JOHN DEERE OWNER 2.280% 5/16/22 2.2754% 646,522.3800 AAA N/A 100.20 646,519.92 647,834.82 Fixed Income 47787NAC3 JOHN DEERE OWNER 0.510% 11/15/24 0.5084% 1,480,000.0000 AAA N/A 100.32 1,479,774.45 1,484,750.80 Fixed Income 47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 2.6533% 165,799.5700 AAA N/A 100.25 165,787.65 166,215.73 Fixed Income 47788EAC2 JOHN DEERE OWNER 3.080% 11/15/22 3.0491% 2,145,869.8100 AAA N/A 101.01 2,145,707.16 2,167,628.93 Fixed Income 494368BF9 KIMBERLY CLARK CORP 3.875% 3/01/21 3.8544% 750,000.0000 A2 A 100.53 768,877.50 754,005.00 Fixed Income 525ESC0Y6 LEHMAN BRTH HLD ESC 0.0000% 2,000,000.0000 - 1,025,037.05 - Fixed Income 525ESCIB7 LEHMAN BRTH MTN ES 0.00001% 1/24/13 0.0009% 600,000.0000 N/A N/A 1.12 318,131.38 6,720.00 Fixed Income 55380TMD9 MUFG BK LTD N Y C D 0.240% 4/21/21 0.2400% 2,500,000.0000 100.00 2,500,000.00 2,500,050.00 Fixed Income 58770FAC6 MERCEDES BENZ AUTO 1.840% 12/15/22 1.8146% 2,050,000.0000 AAA AAA 101.40 2,049,729.81 2,078,638.50 Fixed Income 58933YAF2 MERCK CO INC 2.800% 5/18/23 2.6403% 2,000,000.0000 A1 AA- 106.05 1,948,640.00 2,120,960.00 Fixed Income 594918BP8 MICROSOFT CORP 1.550% 8/08/21 1.5394% 3,045,000.0000 AAA AAA 100.69 3,041,385.15 3,065,949.60 Fixed Income 61747WAL3 MORGAN STANLEY 5.500% 7/28/21 5.3429% 2,800,000.0000 A2 BBB+ 102.94 3,200,848.00 2,882,320.00 Fixed Income 65479GAD1 NISSAN AUTO 3.060% 3/15/23 3.0186% 2,222,777.0100 AAA AAA 101.37 2,222,705.00 2,253,295.74 Fixed Income 65479JAD5 NISSAN AUTO 1.930% 7/15/24 1.8914% 4,185,000.0000 AAA AAA 102.04 4,184,779.03 4,270,374.00 Fixed Income 68389XBK0 ORACLE CORP 1.900% 9/15/21 1.8811% 3,000,000.0000 A3 A 101.01 2,892,240.00 3,030,210.00 Fixed Income 69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 2.5627% 1,000,000.0000 A2 A 102.43 974,940.00 1,024,300.00 Fixed Income 69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 3.2603% 5,000,000.0000 A2 A 107.35 4,993,318.05 5,367,600.00 Fixed Income 69371RN93 PACCAR FINANCIAL MTN 2.800% 3/01/21 2.7905% 600,000.0000 A1 A+ 100.34 607,086.00 602,052.00 Fixed Income 78012UVJ1 ROYAL BK OF C D 1.000% 2/19/21 0.9988% 1,500,000.0000 100.12 1,500,000.00 1,501,740.00 Fixed Income 78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 2.3846% 6,500,000.0000 A2 A 106.94 6,581,445.00 6,950,775.00 Fixed Income 78015K7H1 ROYAL BANK OF MTN 1.150% 6/10/25 1.1254% 1,500,000.0000 A2 A 102.19 1,515,480.00 1,532,805.00 Fixed Income 78445JAA5 S L M A 1.76388% 4/25/23 1.7647% 10,816.0300 BAA3 B 99.95 10,772.14 10,810.95 Fixed Income 808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 2.5297% 6,750,000.0000 A2 A 104.76 6,729,480.00 7,071,030.00 Fixed Income 808513AW5 CHARLES SCHWAB CORP 3.250% 5/21/21 3.2212% 1,385,000.0000 A2 A 100.90 1,419,472.65 1,397,395.75 Fixed Income 83162CLJ0 S B A GTD DEV PART 6.340% 3/01/21 6.3122% 2,984.8600 N/A N/A 100.44 2,984.86 2,998.02 Fixed Income 89114QBX5 TORONTO DOMINION MTN 2.550% 1/25/21 2.5470% 1,750,000.0000 AA1 AA- 100.12 1,774,762.50 1,752,082.50 3 of 4 U.S. Bank Investment Listing - Yield As of 12/31/2020 Asset Category CUSIP Asset Short Name Yield Shares/Units Moody's S&P Rating Price Cost Basis Market Value Fixed Income 89114QC48 TORONTO MTN 3.500% 7/19/23 3.2342% 5,000,000.0000 AA1 AA- 108.22 5,094,200.00 5,410,900.00 Fixed Income 89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 2.4731% 3,000,000.0000 AA3 A 107.15 3,000,570.00 3,214,560.00 Fixed Income 89236TBJ3 TOYOTA MOTOR MTN 2.750% 5/17/21 2.7254% 1,500,000.0000 A1 A+ 100.90 1,523,295.00 1,513,560.00 Fixed Income 89237VAB5 TOYOTA AUTO RECV 0.440% 10/15/24 0.4385% 2,960,000.0000 AAA AAA 100.35 2,959,772.08 2,970,389.60 Fixed Income 90331HNL3 US BANK NA MTN 2.850% 1/23/23 2.7095% 2,000,000.0000 A1 AA- 105.19 1,992,640.00 2,103,720.00 Fixed Income 90331HPL1 US BANK NA MTN 2.050% 1/21/25 1.9372% 7,270,000.0000 A1 AA- 105.82 7,254,514.90 7,693,259.40 Fixed Income 9128283J7 U S TREASURY NT 2.125% 11/30/24 1.9806% 16,500,000.0000 AAA N/A 107.29 16,783,886.72 17,703,345.00 Fixed Income 9128284D9 U S TREASURY NT 2.500% 3/31/23 2.3742% 10,000,000.0000 AAA N/A 105.30 9,887,265.63 10,529,700.00 Fixed Income 9128287A2 U S TREASURY NT 1.625% 6/30/21 1.6130% 19,000,000.0000 AAA N/A 100.74 19,180,937.51 19,140,980.00 Fixed Income 912828J76 U S TREASURY NT 1.750% 3/31/22 1.7152% 5,000,000.0000 AAA N/A 102.03 4,976,383.94 5,101,550.00 Fixed Income 912828L24 U S TREASURY NT 1.875% 8/31/22 1.8222% 6,000,000.0000 AAA N/A 102.90 5,987,832.60 6,173,880.00 Fixed Income 912828L57 U S TREASURY NT 1.750% 9/30/22 1.7019% 16,000,000.0000 AAA N/A 102.82 15,829,492.20 16,451,840.00 Fixed Income 912828M80 U S TREASURY NT 2.000% 11/30/22 1.9308% 8,000,000.0000 AAA N/A 103.58 7,907,500.00 8,286,560.00 Fixed Income 912828N30 U S TREASURY NT 2.125% 12/31/22 2.0436% 5,000,000.0000 AAA N/A 103.98 4,926,562.50 5,199,050.00 Fixed Income 912828R69 U S TREASURY NT 1.625% 5/31/23 1.5690% 5,000,000.0000 AAA N/A 103.57 4,757,226.56 5,178,300.00 Fixed Income 912828S27 U S TREASURY NT 1.125% 6/30/21 1.1194% 27,000,000.0000 AAA N/A 100.50 27,141,328.14 27,135,000.00 Fixed Income 912828S76 U S TREASURY NT 1.125% 7/31/21 1.1184% 43,000,000.0000 AAA N/A 100.59 43,267,968.77 43,251,980.00 Fixed Income 912828T34 U S TREASURY NT 1.125% 9/30/21 1.1166% 7,000,000.0000 AAA N/A 100.75 6,757,914.08 7,052,780.00 Fixed Income 912828T67 U S TREASURY NT 1.250% 10/31/21 1.2385% 6,000,000.0000 AAA N/A 100.93 5,813,691.98 6,055,800.00 Fixed Income 912828U57 U S TREASURY NT 2.125% 11/30/23 2.0098% 15,000,000.0000 AAA N/A 105.73 14,723,632.81 15,859,650.00 Fixed Income 912828U65 U S TREASURY NT 1.750% 11/30/21 1.7245% 7,000,000.0000 AAA N/A 101.48 6,900,492.20 7,103,390.00 Fixed Income 912828V72 U S TREASURY NT 1.875% 1/31/22 1.8402% 3,000,000.0000 AAA N/A 101.89 3,004,814.74 3,056,730.00 Fixed Income 912828V80 U S TREASURY NT 2.250% 1/31/24 2.1148% 7,500,000.0000 AAA 106.39 7,491,503.91 7,979,325.00 Fixed Income 912828W48 U S TREASURY NT 2.125% 2/29/24 2.0022% 10,000,000.0000 AAA N/A 106.13 9,911,718.75 10,613,300.00 Fixed Income 912828WJ5 U S TREASURY NT 2.500% 5/15/24 2.3200% 7,000,000.0000 AAA N/A 107.76 7,193,046.88 7,543,060.00 Fixed Income 912828WR7 U S TREASURY NT 2.125% 6/30/21 2.1041% 8,000,000.0000 AAA N/A 100.99 8,118,398.44 8,079,360.00 Fixed Income 912828WU0 U S TREASURY I P S 0.125% 7/15/24 0.1167% 11,404,744.0000 AAA N/A 107.07 11,260,024.09 12,210,831.31 Fixed Income 912828WY2 U S TREASURY NT 2.250% 7/31/21 2.2227% 8,000,000.0000 AAA N/A 101.23 8,144,296.88 8,098,160.00 Fixed Income 912828XW5 U S TREASURY NT 1.750% 6/30/22 1.7084% 5,000,000.0000 AAA N/A 102.43 4,973,454.25 5,121,700.00 Fixed Income 912828XX3 U S TREASURY NT 2.000% 6/30/24 1.8823% 5,000,000.0000 AAA N/A 106.25 5,028,710.94 5,312,700.00 Fixed Income 912828YC8 U S TREASURY NT 1.500% 8/31/21 1.4863% 9,000,000.0000 AAA N/A 100.92 9,084,726.56 9,082,980.00 Fixed Income 912828YH7 U S TREASURY NT 1.500% 9/30/24 1.4325% 14,000,000.0000 AAA N/A 104.72 13,859,296.88 14,660,100.00 Fixed Income 912828ZL7 U S TREASURY NT 0.375% 4/30/25 0.3736% 12,000,000.0000 AAA N/A 100.36 11,998,515.63 12,043,560.00 Fixed Income 91282CAM3 U S TREASURY NT 0.250% 9/30/25 0.2510% 6,500,000.0000 AAA N/A 99.62 6,477,656.25 6,475,365.00 Fixed Income 91282CBA8 U S TREASURY NT 0.125% 12/15/23 0.1251% 6,500,000.0000 AAA N/A 99.88 6,491,367.19 6,492,395.00 Fixed Income 91282CBC4 U S TREASURY NT 0.375% 12/31/25 0.3747% 7,000,000.0000 AAA N/A 100.08 6,999,453.13 7,005,460.00 Fixed Income 913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15/21 4.9529% 400,000.0000 AA3 AA- 101.66 400,000.00 406,632.00 Fixed Income 931142EK5 WALMART INC 3.400% 6/26/23 3.1659% 3,880,000.0000 AA2 AA 107.39 3,878,991.40 4,166,887.20 Fixed Income 95000U2B8 WELLS FARGO MTN 2.625% 7/22/22 2.5359% 3,000,000.0000 A2 BBB+ 103.51 2,954,520.00 3,105,360.00 Total Consolidated 880,322,449.48 4 of 4 U.S. Bank Asset Detail - Consolidated As of 12/31/2020 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 10,599,075.5200 10,599,075.52 10,599,075.52 1.20 - 31846V567 FIRST AM GOVT OB FD CL Z 1.00 10,413,934.7200 10,413,934.72 10,413,934.72 1.18 - 9127963W7 U S TREASURY BILL 2/04/21 100.00 15,000,000.0000 14,998,725.00 14,999,250.00 1.70 525.00 912796UC1 U S TREASURY BILL 1/28/21 100.00 58,250,000.0000 58,193,363.48 58,247,670.00 6.62 54,306.52 912796XE4 U S TREASURY BILL 2/25/21 99.99 10,000,000.0000 9,991,378.33 9,999,000.00 1.14 7,621.67 Cash Equivalents Total 104,263,010.2400 104,196,477.05 104,258,930.24 11.84 62,453.19 Fixed Income 00440EAP2 ACE INA HOLDINGS 2.700% 3/13/23 105.31 2,000,000.0000 1,937,000.00 2,106,120.00 0.24 169,120.00 00440EAS6 ACE INA HOLDING 3.150% 3/15/25 110.38 2,000,000.0000 2,203,740.00 2,207,520.00 0.25 3,780.00 00440EAU1 ACE INA HOLDINGS 2.875% 11/03/22 104.24 4,169,000.0000 4,232,453.17 4,345,848.98 0.49 113,395.81 02665WCJ8 AMERICAN HONDA MTN 3.450% 7/14/23 107.70 845,000.0000 843,538.15 910,090.35 0.10 66,552.20 02665WCQ2 AMERICAN HONDA MTN 3.625% 10/10/23 108.80 2,000,000.0000 1,998,320.00 2,176,000.00 0.25 177,680.00 02665WCZ2 AMERICAN HONDA MTN 2.400% 6/27/24 106.22 1,219,000.0000 1,213,843.63 1,294,821.80 0.15 80,978.17 03215PFN4 AMRESCO 1.01546% 6/25/29 94.30 119,021.6400 89,377.81 112,232.65 0.01 22,854.84 037833AR1 APPLE INC 2.850% 5/06/21 100.81 1,155,000.0000 1,182,327.30 1,164,390.15 0.13 (17,937.15) 037833BS8 APPLE INC 2.250% 2/23/21 100.12 4,000,000.0000 4,050,840.00 4,004,760.00 0.45 (46,080.00) 037833CU2 APPLE INC 2.850% 5/11/24 107.83 3,000,000.0000 3,017,760.00 3,234,750.00 0.37 216,990.00 06051GHF9 BANK OF AMERICA 3.550% 3/05/24 106.83 6,675,000.0000 6,770,625.75 7,130,835.75 0.81 360,210.00 06406RAA5 BANK OF NY MTN 2.600% 2/07/22 102.37 2,500,000.0000 2,504,475.00 2,559,250.00 0.29 54,775.00 06406RAE7 BANK OF NY MTN 2.950% 1/29/23 105.19 2,500,000.0000 2,489,555.00 2,629,675.00 0.30 140,120.00 06417MMB8 BANK OF NOVA C D 0.280% 11/24/21 100.00 5,000,000.0000 5,000,000.00 4,999,800.00 0.57 (200.00) 084664BT7 BERKSHIRE HATHAWAY 3.000% 5/15/22 103.81 4,000,000.0000 4,131,120.00 4,152,560.00 0.47 21,440.00 084670BR8 BERKSHIRE HATHAWAY 2.750% 3/15/23 105.02 2,500,000.0000 2,440,950.00 2,625,400.00 0.30 184,450.00 09247XAL5 BLACKROCK INC 3.500% 3/18/24 109.84 1,000,000.0000 1,036,330.00 1,098,400.00 0.12 62,070.00 166764AH3 CHEVRON CORP 3.191% 6/24/23 106.36 3,500,000.0000 3,441,095.00 3,722,460.00 0.42 281,365.00 166764BG4 CHEVRON CORP 2.100% 5/16/21 100.55 2,500,000.0000 2,485,350.00 2,513,625.00 0.29 28,275.00 24422EUM9 JOHN DEERE MTN 3.650% 10/12/23 109.17 1,250,000.0000 1,250,237.50 1,364,650.00 0.16 114,412.50 30231GAV4 EXXON MOBIL 2.222% 3/01/21 100.14 3,000,000.0000 3,016,097.40 3,004,290.00 0.34 (11,807.40) 3130A0F70 F H L B DEB 3.375% 12/08/23 109.25 10,000,000.0000 10,269,043.75 10,925,200.00 1.24 656,156.25 3130A1XJ2 F H L B 2.875% 6/14/24 109.16 11,110,000.0000 11,589,031.30 12,127,342.70 1.38 538,311.40 3130A2UW4 F H L B DEB 2.875% 9/13/24 109.67 2,500,000.0000 2,635,950.00 2,741,700.00 0.31 105,750.00 3130A4CH3 F H L B DEB 2.375% 3/14/25 108.27 5,225,000.0000 5,526,848.25 5,657,107.50 0.64 130,259.25 3130A7CV5 F H L B DEB 1.375% 2/18/21 100.16 5,365,000.0000 5,343,325.40 5,373,369.40 0.61 30,044.00 313379RB7 F H L B DEB 1.875% 6/11/21 100.75 4,000,000.0000 4,030,160.00 4,030,080.00 0.46 (80.00) 313383QR5 F H L B DEB 3.250% 6/09/23 107.40 5,000,000.0000 5,083,350.00 5,370,200.00 0.61 286,850.00 313383YJ4 F H L B DEB 3.375% 9/08/23 108.55 10,000,000.0000 10,211,831.00 10,855,300.00 1.23 643,469.00 313385AD8 F H L B DISC NTS 1/04/21 1.00 1,500,000.0000 1,498,340.00 1,500,000.00 0.17 1,660.00 313385AX4 F H L B DISC NTS 1/22/21 100.00 9,000,000.0000 8,999,543.75 8,999,730.00 1.02 186.25 313385BL9 F H L B DISC NTS 2/04/21 99.99 9,000,000.0000 8,999,213.75 8,999,370.00 1.02 156.25 3133EKWV4 F F C B DEB 1.850% 7/26/24 105.60 5,000,000.0000 5,048,280.00 5,279,800.00 0.60 231,520.00 1 of 4 U.S. Bank Asset Detail - Consolidated As of 12/31/2020 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 3133ELYR9 F F C B DEB 0.250% 5/06/22 100.19 8,850,000.0000 8,838,760.50 8,866,815.00 1.01 28,054.50 3133TCE95 F H L M C MLTCL MTG 3.929% 8/15/32 101.13 4,473.7000 4,478.39 4,524.42 0.00 46.03 31348SWZ3 F H L M C #786064 2.752% 1/01/28 99.93 1,579.2700 1,540.81 1,578.10 0.00 37.29 3135G03U5 F N M A DEB 0.625% 4/22/25 101.18 14,000,000.0000 13,996,711.60 14,164,640.00 1.61 167,928.40 3135G04Z3 F N M A 0.500% 6/17/25 100.53 9,905,000.0000 9,884,496.65 9,957,595.55 1.13 73,098.90 3135G05G4 F N M A 0.250% 7/10/23 100.24 6,775,000.0000 6,760,433.75 6,791,192.25 0.77 30,758.50 3135G05X7 F N M A 0.375% 8/25/25 99.98 7,945,000.0000 7,907,817.40 7,943,252.10 0.90 35,434.70 3135G06G3 F N M A 0.500% 11/07/25 100.42 8,255,000.0000 8,225,447.10 8,289,505.90 0.94 64,058.80 3135G0J20 F N M A DEB 1.375% 2/26/21 100.18 10,000,000.0000 10,040,950.00 10,018,400.00 1.14 (22,550.00) 3135G0S38 F N M A 2.000% 1/05/22 101.90 3,000,000.0000 2,994,570.00 3,057,090.00 0.35 62,520.00 3135G0T45 F N M A 1.875% 4/05/22 102.21 5,000,000.0000 4,972,500.00 5,110,500.00 0.58 138,000.00 3135G0T94 F N M A DEB 2.375% 1/19/23 104.58 5,000,000.0000 4,910,990.00 5,229,000.00 0.59 318,010.00 3135G0U35 F N M A 2.750% 6/22/21 101.24 7,500,000.0000 7,515,225.00 7,593,000.00 0.86 77,775.00 3135G0V34 F N M A 2.500% 2/05/24 107.11 5,000,000.0000 4,980,850.00 5,355,300.00 0.61 374,450.00 3135G0X24 F N M A 1.625% 1/07/25 105.38 10,000,000.0000 10,157,936.40 10,537,700.00 1.20 379,763.60 31371NUC7 F N M A #257179 4.500% 4/01/28 108.30 10,705.2100 11,321.81 11,593.42 0.00 271.61 31376KT22 F N M A #357969 5.000% 9/01/35 116.30 78,622.3900 84,519.05 91,437.05 0.01 6,918.00 3137EAEL9 F H L M C M T N 2.375% 2/16/21 100.27 7,500,000.0000 7,484,475.00 7,520,100.00 0.85 35,625.00 3137EAEN5 F H L M C 2.750% 6/19/23 106.32 10,000,000.0000 9,956,500.00 10,631,700.00 1.21 675,200.00 3137EAEP0 F H L M C 1.500% 2/12/25 104.90 12,335,000.0000 12,510,182.05 12,939,785.05 1.47 429,603.00 3137EAEU9 F H L M C M T N 0.375% 7/21/25 100.05 5,030,000.0000 5,004,950.60 5,032,665.90 0.57 27,715.30 3137EAEX3 F H L M C M T N 0.375% 9/23/25 99.83 7,660,000.0000 7,636,943.40 7,647,284.40 0.87 10,341.00 3138EG6F6 F N M A #AL0869 4.500% 6/01/29 109.26 6,954.1500 7,354.71 7,597.90 0.00 243.19 31394JY35 F H L M C MLTCL MTG 6.500% 9/25/43 116.27 561,133.9500 635,484.20 652,413.61 0.07 16,929.41 31397QRE0 F N M A GTD REMIC 2.472% 2/25/41 101.37 135,973.2200 135,930.74 137,840.13 0.02 1,909.39 31403DJZ3 F N M A #745580 5.000% 6/01/36 116.15 70,722.8100 76,027.01 82,142.42 0.01 6,115.41 31403GXF4 F N M A #748678 5.000% 10/01/33 112.89 1,318.1100 1,416.97 1,488.03 0.00 71.06 31406PQY8 F N M A #815971 5.000% 3/01/35 116.26 105,426.6600 113,333.68 122,565.87 0.01 9,232.19 31406XWT5 F N M A #823358 2.937% 2/01/35 104.40 91,103.5200 90,391.78 95,110.25 0.01 4,718.47 31407BXH7 F N M A #826080 5.000% 7/01/35 116.27 13,805.5700 14,840.97 16,051.74 0.00 1,210.77 31410F4V4 F N M A #888336 5.000% 7/01/36 115.89 130,793.5200 140,603.04 151,573.99 0.02 10,970.95 31417YAY3 F N M A #MA0022 4.500% 4/01/29 108.31 11,574.1200 12,240.77 12,535.93 0.00 295.16 36225CAZ9 G N M A I I #080023 3.125% 12/20/26 103.39 11,409.5500 11,598.04 11,796.68 0.00 198.64 36225CC20 G N M A I I #080088 2.875% 6/20/27 101.87 8,992.7500 9,189.47 9,160.46 0.00 (29.01) 36225CN28 G N M A I I #080408 2.875% 5/20/30 104.04 35,807.2900 35,443.62 37,252.83 0.00 1,809.21 36225CNM4 G N M A I I #080395 2.875% 4/20/30 104.04 4,774.0500 4,730.75 4,966.73 0.00 235.98 36225DCB8 G N M A I I #080965 2.250% 7/20/34 104.39 31,941.8600 31,921.91 33,342.83 0.00 1,420.92 369550BE7 GENERAL DYNAMICS 3.000% 5/11/21 100.96 3,160,000.0000 3,138,038.00 3,190,430.80 0.36 52,392.80 43813KAC6 HONDA AUTO 0.370% 10/18/24 100.17 3,235,000.0000 3,234,524.78 3,240,467.15 0.37 5,942.37 43814UAG4 HONDA AUTO 3.010% 5/18/22 100.83 631,002.3200 630,988.57 636,264.88 0.07 5,276.31 43815HAC1 HONDA AUTO 2.950% 8/22/22 101.19 1,791,651.3800 1,791,405.57 1,812,882.45 0.21 21,476.88 43815NAB0 HONDA AUTO 1.900% 4/15/22 100.36 1,347,348.3800 1,347,254.07 1,352,171.89 0.15 4,917.82 2 of 4 U.S. Bank Asset Detail - Consolidated As of 12/31/2020 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 438516CB0 HONEYWELL 1.350% 6/01/25 103.61 5,000,000.0000 5,119,000.00 5,180,450.00 0.59 61,450.00 44932HAH6 IBM CREDIT CORP 3.000% 2/06/23 105.90 5,670,000.0000 5,603,264.40 6,004,643.40 0.68 401,379.00 458140BD1 INTEL CORP 2.875% 5/11/24 107.91 5,000,000.0000 5,025,900.00 5,395,350.00 0.61 369,450.00 4581X0CS5 INTER AMER BK M T N 1.875% 3/15/21 100.32 5,000,000.0000 5,059,610.00 5,015,850.00 0.57 (43,760.00) 4581X0CW6 INTER AMER DEV BK 2.125% 1/18/22 101.94 3,000,000.0000 2,996,310.00 3,058,110.00 0.35 61,800.00 4581X0CZ9 INTER AMER DEV BK 1.750% 9/14/22 102.68 6,500,000.0000 6,249,655.00 6,673,875.00 0.76 424,220.00 459058FH1 INTL BK 1.375% 5/24/21 100.45 1,000,000.0000 1,010,570.00 1,004,490.00 0.11 (6,080.00) 459058FY4 INTL BK 2.000% 1/26/22 101.91 10,000,000.0000 10,006,350.00 10,191,200.00 1.16 184,850.00 459058JB0 INTL BK M T N 0.625% 4/22/25 100.97 6,245,000.0000 6,220,831.85 6,305,326.70 0.72 84,494.85 459058JL8 INTL BK M T N 0.500% 10/28/25 100.19 6,920,000.0000 6,912,180.40 6,932,940.40 0.79 20,760.00 45950KCJ7 INTL FINANCE CORP 1.125% 7/20/21 100.51 2,500,000.0000 2,441,600.00 2,512,825.00 0.29 71,225.00 45950KCM0 INTL BK M T N 2.250% 1/25/21 100.13 2,970,000.0000 2,961,268.20 2,973,771.90 0.34 12,503.70 46625HRL6 JP MORGAN CHASE CO 2.700% 5/18/23 105.14 5,000,000.0000 4,821,910.00 5,256,750.00 0.60 434,840.00 46647PAU0 JPMORGAN CHASE CO 3.797% 7/23/24 108.48 2,500,000.0000 2,632,175.00 2,711,900.00 0.31 79,725.00 477870AB5 JOHN DEERE OWNER 2.280% 5/16/22 100.20 646,522.3800 646,519.92 647,834.82 0.07 1,314.90 47787NAC3 JOHN DEERE OWNER 0.510% 11/15/24 100.32 1,480,000.0000 1,479,774.45 1,484,750.80 0.17 4,976.35 47788CAC6 JOHN DEERE OWNER 2.660% 4/18/22 100.25 165,799.5700 165,787.65 166,215.73 0.02 428.08 47788EAC2 JOHN DEERE OWNER 3.080% 11/15/22 101.01 2,145,869.8100 2,145,707.16 2,167,628.93 0.25 21,921.77 494368BF9 KIMBERLY CLARK CORP 3.875% 3/01/21 100.53 750,000.0000 768,877.50 754,005.00 0.09 (14,872.50) 525ESC0Y6 LEHMAN BRTH HLD ESC - 2,000,000.0000 1,025,037.05 - - (1,025,037.05) 525ESCIB7 LEHMAN BRTH MTN ES 0.00001% 1/24/13 1.12 600,000.0000 318,131.38 6,720.00 0.00 (311,411.38) 55380TMD9 MUFG BK LTD N Y C D 0.240% 4/21/21 100.00 2,500,000.0000 2,500,000.00 2,500,050.00 0.28 50.00 58770FAC6 MERCEDES BENZ AUTO 1.840% 12/15/22 101.40 2,050,000.0000 2,049,729.81 2,078,638.50 0.24 28,908.69 58933YAF2 MERCK CO INC 2.800% 5/18/23 106.05 2,000,000.0000 1,948,640.00 2,120,960.00 0.24 172,320.00 594918BP8 MICROSOFT CORP 1.550% 8/08/21 100.69 3,045,000.0000 3,041,385.15 3,065,949.60 0.35 24,564.45 61747WAL3 MORGAN STANLEY 5.500% 7/28/21 102.94 2,800,000.0000 3,200,848.00 2,882,320.00 0.33 (318,528.00) 65479GAD1 NISSAN AUTO 3.060% 3/15/23 101.37 2,222,777.0100 2,222,705.00 2,253,295.74 0.26 30,590.74 65479JAD5 NISSAN AUTO 1.930% 7/15/24 102.04 4,185,000.0000 4,184,779.03 4,270,374.00 0.49 85,594.97 68389XBK0 ORACLE CORP 1.900% 9/15/21 101.01 3,000,000.0000 2,892,240.00 3,030,210.00 0.34 137,970.00 69353RFB9 PNC BANK NA MTN 2.625% 2/17/22 102.43 1,000,000.0000 974,940.00 1,024,300.00 0.12 49,360.00 69353RFL7 PNC BANK NA MTN 3.500% 6/08/23 107.35 5,000,000.0000 4,993,318.05 5,367,600.00 0.61 374,281.95 69371RN93 PACCAR FINANCIAL MTN 2.800% 3/01/21 100.34 600,000.0000 607,086.00 602,052.00 0.07 (5,034.00) 78012UVJ1 ROYAL BK OF C D 1.000% 2/19/21 100.12 1,500,000.0000 1,500,000.00 1,501,740.00 0.17 1,740.00 78013XZU5 ROYAL BANK OF MTN 2.550% 7/16/24 106.94 6,500,000.0000 6,581,445.00 6,950,775.00 0.79 369,330.00 78015K7H1 ROYAL BANK OF MTN 1.150% 6/10/25 102.19 1,500,000.0000 1,515,480.00 1,532,805.00 0.17 17,325.00 78445JAA5 S L M A 1.76388% 4/25/23 99.95 10,816.0300 10,772.14 10,810.95 0.00 38.81 808513AT2 CHARLES SCHWAB CORP 2.650% 1/25/23 104.76 6,750,000.0000 6,729,480.00 7,071,030.00 0.80 341,550.00 808513AW5 CHARLES SCHWAB CORP 3.250% 5/21/21 100.90 1,385,000.0000 1,419,472.65 1,397,395.75 0.16 (22,076.90) 83162CLJ0 S B A GTD DEV PART 6.340% 3/01/21 100.44 2,984.8600 2,984.86 2,998.02 0.00 13.16 89114QBX5 TORONTO DOMINION MTN 2.550% 1/25/21 100.12 1,750,000.0000 1,774,762.50 1,752,082.50 0.20 (22,680.00) 89114QC48 TORONTO MTN 3.500% 7/19/23 108.22 5,000,000.0000 5,094,200.00 5,410,900.00 0.61 316,700.00 89114QCA4 TORONTO DOMINION MTN 2.650% 6/12/24 107.15 3,000,000.0000 3,000,570.00 3,214,560.00 0.37 213,990.00 3 of 4 U.S. Bank Asset Detail - Consolidated As of 12/31/2020 CUSIP Asset Short Name Price Shares/Units Cost Basis Market Value Percent of Total Unrealized Gain/Loss 89236TBJ3 TOYOTA MOTOR MTN 2.750% 5/17/21 100.90 1,500,000.0000 1,523,295.00 1,513,560.00 0.17 (9,735.00) 89237VAB5 TOYOTA AUTO RECV 0.440% 10/15/24 100.35 2,960,000.0000 2,959,772.08 2,970,389.60 0.34 10,617.52 90331HNL3 US BANK NA MTN 2.850% 1/23/23 105.19 2,000,000.0000 1,992,640.00 2,103,720.00 0.24 111,080.00 90331HPL1 US BANK NA MTN 2.050% 1/21/25 105.82 7,270,000.0000 7,254,514.90 7,693,259.40 0.87 438,744.50 9128283J7 U S TREASURY NT 2.125% 11/30/24 107.29 16,500,000.0000 16,783,886.72 17,703,345.00 2.01 919,458.28 9128284D9 U S TREASURY NT 2.500% 3/31/23 105.30 10,000,000.0000 9,887,265.63 10,529,700.00 1.20 642,434.37 9128287A2 U S TREASURY NT 1.625% 6/30/21 100.74 19,000,000.0000 19,180,937.51 19,140,980.00 2.17 (39,957.51) 912828J76 U S TREASURY NT 1.750% 3/31/22 102.03 5,000,000.0000 4,976,383.94 5,101,550.00 0.58 125,166.06 912828L24 U S TREASURY NT 1.875% 8/31/22 102.90 6,000,000.0000 5,987,832.60 6,173,880.00 0.70 186,047.40 912828L57 U S TREASURY NT 1.750% 9/30/22 102.82 16,000,000.0000 15,829,492.20 16,451,840.00 1.87 622,347.80 912828M80 U S TREASURY NT 2.000% 11/30/22 103.58 8,000,000.0000 7,907,500.00 8,286,560.00 0.94 379,060.00 912828N30 U S TREASURY NT 2.125% 12/31/22 103.98 5,000,000.0000 4,926,562.50 5,199,050.00 0.59 272,487.50 912828R69 U S TREASURY NT 1.625% 5/31/23 103.57 5,000,000.0000 4,757,226.56 5,178,300.00 0.59 421,073.44 912828S27 U S TREASURY NT 1.125% 6/30/21 100.50 27,000,000.0000 27,141,328.14 27,135,000.00 3.08 (6,328.14) 912828S76 U S TREASURY NT 1.125% 7/31/21 100.59 43,000,000.0000 43,267,968.77 43,251,980.00 4.91 (15,988.77) 912828T34 U S TREASURY NT 1.125% 9/30/21 100.75 7,000,000.0000 6,757,914.08 7,052,780.00 0.80 294,865.92 912828T67 U S TREASURY NT 1.250% 10/31/21 100.93 6,000,000.0000 5,813,691.98 6,055,800.00 0.69 242,108.02 912828U57 U S TREASURY NT 2.125% 11/30/23 105.73 15,000,000.0000 14,723,632.81 15,859,650.00 1.80 1,136,017.19 912828U65 U S TREASURY NT 1.750% 11/30/21 101.48 7,000,000.0000 6,900,492.20 7,103,390.00 0.81 202,897.80 912828V72 U S TREASURY NT 1.875% 1/31/22 101.89 3,000,000.0000 3,004,814.74 3,056,730.00 0.35 51,915.26 912828V80 U S TREASURY NT 2.250% 1/31/24 106.39 7,500,000.0000 7,491,503.91 7,979,325.00 0.91 487,821.09 912828W48 U S TREASURY NT 2.125% 2/29/24 106.13 10,000,000.0000 9,911,718.75 10,613,300.00 1.21 701,581.25 912828WJ5 U S TREASURY NT 2.500% 5/15/24 107.76 7,000,000.0000 7,193,046.88 7,543,060.00 0.86 350,013.12 912828WR7 U S TREASURY NT 2.125% 6/30/21 100.99 8,000,000.0000 8,118,398.44 8,079,360.00 0.92 (39,038.44) 912828WU0 U S TREASURY I P S 0.125% 7/15/24 107.07 11,404,744.0000 11,260,024.09 12,210,831.31 1.39 950,807.22 912828WY2 U S TREASURY NT 2.250% 7/31/21 101.23 8,000,000.0000 8,144,296.88 8,098,160.00 0.92 (46,136.88) 912828XW5 U S TREASURY NT 1.750% 6/30/22 102.43 5,000,000.0000 4,973,454.25 5,121,700.00 0.58 148,245.75 912828XX3 U S TREASURY NT 2.000% 6/30/24 106.25 5,000,000.0000 5,028,710.94 5,312,700.00 0.60 283,989.06 912828YC8 U S TREASURY NT 1.500% 8/31/21 100.92 9,000,000.0000 9,084,726.56 9,082,980.00 1.03 (1,746.56) 912828YH7 U S TREASURY NT 1.500% 9/30/24 104.72 14,000,000.0000 13,859,296.88 14,660,100.00 1.67 800,803.12 912828ZL7 U S TREASURY NT 0.375% 4/30/25 100.36 12,000,000.0000 11,998,515.63 12,043,560.00 1.37 45,044.37 91282CAM3 U S TREASURY NT 0.250% 9/30/25 99.62 6,500,000.0000 6,477,656.25 6,475,365.00 0.74 (2,291.25) 91282CBA8 U S TREASURY NT 0.125% 12/15/23 99.88 6,500,000.0000 6,491,367.19 6,492,395.00 0.74 1,027.81 91282CBC4 U S TREASURY NT 0.375% 12/31/25 100.08 7,000,000.0000 6,999,453.13 7,005,460.00 0.80 6,006.87 913366EJ5 UNIV OF CALIFORNIA 5.035% 5/15/21 101.66 400,000.0000 400,000.00 406,632.00 0.05 6,632.00 931142EK5 WALMART INC 3.400% 6/26/23 107.39 3,880,000.0000 3,878,991.40 4,166,887.20 0.47 287,895.80 95000U2B8 WELLS FARGO MTN 2.625% 7/22/22 103.51 3,000,000.0000 2,954,520.00 3,105,360.00 0.35 150,840.00 Fixed Income Total 755,178,649.0800 755,612,402.76 776,063,519.24 88.16 20,451,116.48 Grand Total 859,441,659.3200 859,808,879.81 880,322,449.48 100.00 20,513,569.67 4 of 4 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss ACQUISITIONS10/01/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 472.2200 1.000000 -472.22 472.22 0.00 10/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 240.1000 1.000000 -240.10 240.10 0.00 10/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,568.5100 1.000000 -1,568.51 1,568.51 0.00 10/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 294.6200 1.000000 -294.62 294.62 0.00 10/05/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 46,875.0000 1.000000 -46,875.00 46,875.00 0.00 10/08/2020 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 10/13/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 6,500,000.0000 1.000000 -6,500,000.00 6,500,000.00 0.00 10/13/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 59,062.5000 1.000000 -59,062.50 59,062.50 0.00 10/14/2020 912828WR7 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 6/30/21 /NOMURA SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 101.4257812 % 5,000,000.0000 1.014258 -5,071,289.06 5,071,289.06 0.00 10/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,184,650.0000 1.000000 -1,184,650.00 1,184,650.00 0.00 10/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,627,997.9300 1.000000 -1,627,997.93 1,627,997.93 0.00 10/19/2020 91282CAM3 PURCHASED PAR VALUE OF U S TREASURY NT 0.250% 9/30/25 /GOLDMAN SACHS & CO. LLC/6,500,000 PAR VALUE AT 99.65625 % 6,500,000.0000 0.996563 -6,477,656.25 6,477,656.25 0.00 10/19/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 124,664.1600 1.000000 -124,664.16 124,664.16 0.00 10/19/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 6,584.2000 1.000000 -6,584.20 6,584.20 0.00 10/20/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,934.1000 1.000000 -1,934.10 1,934.10 0.00 10/21/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 232,267.1200 1.000000 -232,267.12 232,267.12 0.00 10/22/2020 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 10/22/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 6,588,050.7500 1.000000 -6,588,050.75 6,588,050.75 0.00 10/22/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 19,546.8500 1.000000 -19,546.85 19,546.85 0.00 10/26/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,715.8500 1.000000 -28,715.85 28,715.85 0.00 10/26/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 329,378.5500 1.000000 -329,378.55 329,378.55 0.00 10/27/2020 912828S76 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 7/31/21 /J.P. MORGAN SECURITIES LLC/5,000,000 PAR VALUE AT 100.7578126 %5,000,000.0000 1.007578 -5,037,890.63 5,037,890.63 0.00 10/27/2020 9128287A2 PURCHASED PAR VALUE OF U S TREASURY NT 1.625% 6/30/21 /J.P. MORGAN SECURITIES LLC/5,000,000 PAR VALUE AT 101.015625 %5,000,000.0000 1.010156 -5,050,781.25 5,050,781.25 0.00 10/28/2020 459058JL8 PURCHASED PAR VALUE OF INTL BK M T N 0.500% 10/28/25 /MORGAN STANLEY & CO. LLC/6,920,000 PAR VALUE AT 99.887 %6,920,000.0000 0.998870 -6,912,180.40 6,912,180.40 0.00 10/30/2020 00440EAS6 PURCHASED PAR VALUE OF ACE INA HOLDING 3.150% 3/15/25 /WELLS FARGO SECURITIES, LLC/2,000,000 PAR VALUE AT 110.187 % 2,000,000.0000 1.101870 -2,203,740.00 2,203,740.00 0.00 10/30/2020 9128287A2 PURCHASED PAR VALUE OF U S TREASURY NT 1.625% 6/30/21 /J.P. MORGAN SECURITIES LLC/4,000,000 PAR VALUE AT 101.0078125 % 4,000,000.0000 1.010078 -4,040,312.50 4,040,312.50 0.00 11/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,488,525.0000 1.000000 -1,488,525.00 1,488,525.00 0.00 11/03/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 505,994.9200 1.000000 -505,994.92 505,994.92 0.00 11/03/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 60,022.9600 1.000000 -60,022.96 60,022.96 0.00 1 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/05/2020 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 11/06/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 16,458.7500 1.000000 -16,458.75 16,458.75 0.00 11/06/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 11,062.5000 1.000000 -11,062.50 11,062.50 0.00 11/10/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,555,925.0000 1.000000 -7,555,925.00 7,555,925.00 0.00 11/12/2020 3135G06G3 PURCHASED PAR VALUE OF F N M A 0.500% 11/07/25 /BARCLAYS CAPITAL INC. FIXED IN/8,255,000 PAR VALUE AT 99.642 %8,255,000.0000 0.996420 -8,225,447.10 8,225,447.10 0.00 11/16/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,522,847.6400 1.000000 -1,522,847.64 1,522,847.64 0.00 11/16/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 374,284.2700 1.000000 -374,284.27 374,284.27 0.00 11/17/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 20,625.0000 1.000000 -20,625.00 20,625.00 0.00 11/17/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,046,875.0000 1.000000 -5,046,875.00 5,046,875.00 0.00 11/18/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 524,925.8300 1.000000 -524,925.83 524,925.83 0.00 11/18/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 118,021.4100 1.000000 -118,021.41 118,021.41 0.00 11/20/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,757.1000 1.000000 -2,757.10 2,757.10 0.00 11/23/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,522,506.2500 1.000000 -1,522,506.25 1,522,506.25 0.00 11/23/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 230,574.3400 1.000000 -230,574.34 230,574.34 0.00 11/24/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,806,875.0000 1.000000 -4,806,875.00 4,806,875.00 0.00 11/24/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5.0000 1.000000 -5.00 5.00 0.00 11/25/2020 06417MMB8 PURCHASED PAR VALUE OF BANK OF NOVA C D 0.280% 11/24/21 /GOLDMAN SACHS & CO. LLC/5,000,000 PAR VALUE AT 100 % 5,000,000.0000 1.000000 -5,000,000.00 5,000,000.00 0.00 11/25/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 23,578.1100 1.000000 -23,578.11 23,578.11 0.00 11/30/2020 9128287A2 PURCHASED PAR VALUE OF U S TREASURY NT 1.625% 6/30/21 /J.P. MORGAN SECURITIES LLC/5,000,000 PAR VALUE AT 100.8984376 % 5,000,000.0000 1.008984 -5,044,921.88 5,044,921.88 0.00 11/30/2020 9128287A2 PURCHASED PAR VALUE OF U S TREASURY NT 1.625% 6/30/21 /J.P. MORGAN SECURITIES LLC/5,000,000 PAR VALUE AT 100.8984376 % 5,000,000.0000 1.008984 -5,044,921.88 5,044,921.88 0.00 11/30/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 516,562.5000 1.000000 -516,562.50 516,562.50 0.00 12/01/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 36,187.5000 1.000000 -36,187.50 36,187.50 0.00 12/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 156.6000 1.000000 -156.60 156.60 0.00 12/02/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 111.9900 1.000000 -111.99 111.99 0.00 12/08/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 256,250.0000 1.000000 -256,250.00 256,250.00 0.00 12/09/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 81,250.0000 1.000000 -81,250.00 81,250.00 0.00 12/10/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 8,625.0000 1.000000 -8,625.00 8,625.00 0.00 12/11/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 37,500.0000 1.000000 -37,500.00 37,500.00 0.00 12/14/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 505,500.0000 1.000000 -505,500.00 505,500.00 0.00 12/14/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 159,706.2500 1.000000 -159,706.25 159,706.25 0.00 12/14/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 39,750.0000 1.000000 -39,750.00 39,750.00 0.00 12/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 894,881.1500 1.000000 -894,881.15 894,881.15 0.00 2 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/15/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 58,163.1600 1.000000 -58,163.16 58,163.16 0.00 12/17/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 24,487.3600 1.000000 -24,487.36 24,487.36 0.00 12/18/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 228,855.3400 1.000000 -228,855.34 228,855.34 0.00 12/21/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 347,181.4800 1.000000 -347,181.48 347,181.48 0.00 12/21/2020 55380TMD9 PURCHASED PAR VALUE OF MUFG BK LTD N Y C D 0.240% 4/21/21 /MUFG UNION BK NA/MMI/PIMS/IPA/2,500,000 PAR VALUE AT 100 % 2,500,000.0000 1.000000 -2,500,000.00 2,500,000.00 0.00 12/22/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 103,125.0000 1.000000 -103,125.00 103,125.00 0.00 12/23/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 97,000,000.0000 1.000000 -97,000,000.00 97,000,000.00 0.00 12/23/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 31,000,000.0000 1.000000 -31,000,000.00 31,000,000.00 0.00 12/24/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 55,842.5000 1.000000 -55,842.50 55,842.50 0.00 12/28/2020 313385AX4 PURCHASED PAR VALUE OF F H L B DISC NTS 1/22/21 /MORGAN STANLEY & CO. LLC/9,000,000 PAR VALUE AT 99.99493056 %9,000,000.0000 0.999949 -8,999,543.75 8,999,543.75 0.00 12/28/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 108,001.4800 1.000000 -108,001.48 108,001.48 0.00 12/29/2020 313385BL9 PURCHASED PAR VALUE OF F H L B DISC NTS 2/04/21 /GOLDMAN SACHS & CO. LLC/9,000,000 PAR VALUE AT 99.99126389 % 9,000,000.0000 0.999913 -8,999,213.75 8,999,213.75 0.00 12/29/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 14,628.0000 1.000000 -14,628.00 14,628.00 0.00 12/29/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2.5000 1.000000 -2.50 2.50 0.00 12/29/2020 912828S27 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 6/30/21 /GOLDMAN SACHS & CO. LLC/9,000,000 PAR VALUE AT 100.52343756 % 9,000,000.0000 1.005234 -9,047,109.38 9,047,109.38 0.00 12/29/2020 912828S27 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 6/30/21 /WELLS FARGO SECURITIES, LLC/9,000,000 PAR VALUE AT 100.52343756 % 9,000,000.0000 1.005234 -9,047,109.38 9,047,109.38 0.00 12/29/2020 912828S27 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 6/30/21 /WELLS FARGO SECURITIES, LLC/9,000,000 PAR VALUE AT 100.52343756 % 9,000,000.0000 1.005234 -9,047,109.38 9,047,109.38 0.00 12/29/2020 912828S76 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 7/31/21 /GOLDMAN SACHS & CO. LLC/9,000,000 PAR VALUE AT 100.60546878 %9,000,000.0000 1.006055 -9,054,492.19 9,054,492.19 0.00 12/29/2020 912828YC8 PURCHASED PAR VALUE OF U S TREASURY NT 1.500% 8/31/21 /WELLS FARGO SECURITIES, LLC/9,000,000 PAR VALUE AT 100.94140622 %9,000,000.0000 1.009414 -9,084,726.56 9,084,726.56 0.00 12/30/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 0.8700 1.000000 -0.87 0.87 0.00 12/30/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 6.3700 1.000000 -6.37 6.37 0.00 12/30/2020 9127963W7 PURCHASED PAR VALUE OF U S TREASURY BILL 2/04/21 /J.P. MORGAN SECURITIES LLC/15,000,000 PAR VALUE AT 99.9915 % 15,000,000.0000 0.999915 -14,998,725.00 14,998,725.00 0.00 12/30/2020 912828S76 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 7/31/21 /NOMURA SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.6054688 % 5,000,000.0000 1.006055 -5,030,273.44 5,030,273.44 0.00 12/30/2020 912828S76 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 7/31/21 /NOMURA SECURITIES INTERNATIONA/6,000,000 PAR VALUE AT 100.60546883 %6,000,000.0000 1.006055 -6,036,328.13 6,036,328.13 0.00 12/30/2020 912828S76 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 7/31/21 /NOMURA SECURITIES INTERNATIONA/9,000,000 PAR VALUE AT 100.60546878 %9,000,000.0000 1.006055 -9,054,492.19 9,054,492.19 0.00 3 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/30/2020 912828S76 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 7/31/21 /NOMURA SECURITIES INTERNATIONA/9,000,000 PAR VALUE AT 100.60546878 % 9,000,000.0000 1.006055 -9,054,492.19 9,054,492.19 0.00 12/30/2020 91282CBA8 PURCHASED PAR VALUE OF U S TREASURY NT 0.125% 12/15/23 /J.P. MORGAN SECURITIES LLC/6,500,000 PAR VALUE AT 99.86718754 % 6,500,000.0000 0.998672 -6,491,367.19 6,491,367.19 0.00 12/31/2020 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,391,250.0000 1.000000 -5,391,250.00 5,391,250.00 0.00 12/31/2020 91282CBC4 PURCHASED PAR VALUE OF U S TREASURY NT 0.250% 12/31/25 /J.P. MORGAN SECURITIES LLC/7,000,000 PAR VALUE AT 99.99218757 % 7,000,000.0000 0.999922 -6,999,453.13 6,999,453.13 0.00 TOTAL ACQUISITIONS 373,127,191.5900 -374,005,768.20 374,005,768.20 0.00 DISPOSITIONS 10/08/2020 912796TN9 MATURED PAR VALUE OF U S TREASURY BILL 10/08/20 5,000,000 PAR VALUE AT 100 % -5,000,000.0000 1.000000 4,997,484.38 -4,997,484.38 0.00 10/13/2020 313384K57 MATURED PAR VALUE OF F H L B DISC NTS 10/13/20 6,500,000 PAR VALUE AT 100 % -6,500,000.0000 1.000000 6,496,403.33 -6,496,403.33 0.00 10/14/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,101,893.6800 1.000000 5,101,893.68 -5,101,893.68 0.00 10/15/2020 46625HHU7 MATURED PAR VALUE OF JPMORGAN CHASE CO 4.250% 10/15/20 1,160,000 PAR VALUE AT 100 % -1,160,000.0000 1.000000 1,160,000.00 -1,176,924.40 -16,924.40 10/15/2020 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 3.846% 1/01/28 SEPTEMBER FHLMC DUE 10/15/20 -10.8100 0.000000 10.81 -10.55 0.26 10/15/2020 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.985% 8/15/32 -69.3000 0.000000 69.30 -69.37 -0.07 10/15/2020 43815NAB0 PAID DOWN PAR VALUE OF HONDA AUTO 1.900% 4/15/22 -292,039.3700 0.000000 292,039.37 -292,018.93 20.44 10/15/2020 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820% 10/15/21 -18,151.5800 0.000000 18,151.58 -18,150.25 1.33 10/15/2020 477870AB5 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.280% 5/16/22 -182,713.9700 0.000000 182,713.97 -182,713.28 0.69 10/15/2020 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -66,844.7500 0.000000 66,844.75 -66,839.94 4.81 10/15/2020 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850% 12/15/21 -222,999.4700 0.000000 222,999.47 -222,989.31 10.16 10/15/2020 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -219,116.3700 0.000000 219,116.37 -219,099.76 16.61 10/15/2020 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -121,975.8200 0.000000 121,975.82 -120,084.24 1,891.58 10/15/2020 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -213,877.4300 0.000000 213,877.43 -213,870.50 6.93 10/15/2020 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 -254,732.0600 0.000000 254,732.06 -254,708.94 23.12 10/19/2020 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -124,185.4900 0.000000 124,185.49 -122,215.99 1,969.50 10/19/2020 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -332,646.6500 0.000000 332,646.65 -332,625.23 21.42 10/19/2020 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 -108,575.5100 0.000000 108,575.51 -108,573.14 2.37 10/19/2020 912828N89 SOLD PAR VALUE OF U S TREASURY NT 1.375% 1/31/21 /GOLDMAN SACHS & CO. LLC/6,000,000 PAR VALUE AT 100.35546883 %-6,000,000.0000 1.003555 6,021,328.13 -5,895,840.41 125,487.72 10/20/2020 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 3.125% 12/20/26 SEPTEMBER GNMA DUE 10/20/20 -160.9000 0.000000 160.90 -163.56 -2.66 10/20/2020 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.875% 6/20/27 SEPTEMBER GNMA DUE 10/20/20 -115.7600 0.000000 115.76 -118.29 -2.53 4 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/20/2020 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 2.875% 4/20/30 SEPTEMBER GNMA DUE 10/20/20 -161.1700 0.000000 161.17 -159.71 1.46 10/20/2020 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 2.875% 5/20/30 SEPTEMBER GNMA DUE 10/20/20 -327.8300 0.000000 327.83 -324.50 3.33 10/20/2020 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 3.250% 7/20/34 SEPTEMBER GNMA DUE 10/20/20 -918.0200 0.000000 918.02 -917.45 0.57 10/21/2020 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -226,254.6700 0.000000 226,254.67 -226,223.63 31.04 10/22/2020 9127962S7 MATURED PAR VALUE OF U S TREASURY BILL 10/22/20 5,000,000 PAR VALUE AT 100 % -5,000,000.0000 1.000000 4,997,362.85 -4,997,362.85 0.00 10/22/2020 912828L99 SOLD PAR VALUE OF U S TREASURY NT 1.375% 10/31/20 /CITIGROUP GLOBAL MARKETS INC./6,500,000 PAR VALUE AT 100.03515631 %-6,500,000.0000 1.000352 6,502,285.16 -6,396,119.99 106,165.17 10/26/2020 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -4,860.0000 0.000000 4,860.00 -5,503.95 -643.95 10/26/2020 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 SEPTEMBER FNMA DUE 10/25/20 -132.0800 0.000000 132.08 -139.69 -7.61 10/26/2020 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 SEPTEMBER FNMA DUE 10/25/20 -1,125.4900 0.000000 1,125.49 -1,209.90 -84.41 10/26/2020 31381PDA3 PAID DOWN PAR VALUE OF F N M A #466397 3.400% 11/01/20 P & I DUE 10/25/20 -328,447.9500 0.000000 328,447.95 -321,340.16 7,107.79 10/26/2020 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 SEPTEMBER FNMA DUE 10/25/20 -1,659.8300 0.000000 1,659.83 -1,784.32 -124.49 10/26/2020 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 SEPTEMBER FNMA DUE 10/25/20 -340.6700 0.000000 340.67 -366.22 -25.55 10/26/2020 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 SEPTEMBER FNMA DUE 10/25/20 -5,542.7200 0.000000 5,542.72 -5,958.42 -415.70 10/26/2020 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 3.674% 2/01/35 SEPTEMBER FNMA DUE 10/25/20 -490.0800 0.000000 490.08 -486.25 3.83 10/26/2020 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 SEPTEMBER FNMA DUE 10/25/20 -739.5100 0.000000 739.51 -794.97 -55.46 10/26/2020 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 SEPTEMBER FNMA DUE 10/25/20 -3,929.8600 0.000000 3,929.86 -4,224.60 -294.74 10/26/2020 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 SEPTEMBER FNMA DUE 10/25/20 -167.3800 0.000000 167.38 -177.02 -9.64 10/26/2020 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 SEPTEMBER FNMA DUE 10/25/20 -198.6200 0.000000 198.62 -210.06 -11.44 10/26/2020 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -3,453.0100 0.000000 3,453.01 -3,451.93 1.08 10/26/2020 78445JAA5 PAID DOWN PAR VALUE OF S L M A 1.76388% 4/25/23 -409.7700 0.000000 409.77 -408.11 1.66 10/27/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,128,396.7500 1.000000 10,128,396.75 -10,128,396.75 0.00 10/28/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,912,180.4000 1.000000 6,912,180.40 -6,912,180.40 0.00 10/30/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,061,861.4100 1.000000 4,061,861.41 -4,061,861.41 0.00 10/30/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,211,615.0000 1.000000 2,211,615.00 -2,211,615.00 0.00 5 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/02/2020 64971M5E8 MATURED PAR VALUE OF NEW YORK CITY NY 4.075% 11/01/20 1,400,000 PAR VALUE AT 100 % -1,400,000.0000 1.000000 1,400,000.00 -1,400,000.00 0.00 11/03/2020 00440EAT4 MATURED PAR VALUE OF ACE INA HOLDINGS 2.300% 11/03/20 500,000 PAR VALUE AT 100 % -500,000.0000 1.000000 500,000.00 -503,140.00 -3,140.00 11/05/2020 912796TP4 MATURED PAR VALUE OF U S TREASURY BILL 11/05/20 5,000,000 PAR VALUE AT 100 %-5,000,000.0000 1.000000 4,997,375.00 -4,997,375.00 0.00 11/10/2020 3135G0F73 SOLD PAR VALUE OF F N M A 1.500% 11/30/20 /MORGAN STANLEY & CO. LLC/7,500,000 PAR VALUE AT 100.079 %-7,500,000.0000 1.000790 7,505,925.00 -7,370,726.00 135,199.00 11/12/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,063,422.1000 1.000000 8,063,422.10 -8,063,422.10 0.00 11/16/2020 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 3.845% 1/01/28 OCTOBER FHLMC DUE 11/15/20 -18.0200 0.000000 18.02 -17.58 0.44 11/16/2020 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.954% 8/15/32 -87.5000 0.000000 87.50 -87.59 -0.09 11/16/2020 43815NAB0 PAID DOWN PAR VALUE OF HONDA AUTO 1.900% 4/15/22 -285,396.1200 0.000000 285,396.12 -285,376.14 19.98 11/16/2020 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820% 10/15/21 CMO FINAL PAYDOWN -1,148.6300 0.000000 1,148.63 -1,148.55 0.08 11/16/2020 477870AB5 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.280% 5/16/22 -262,205.5000 0.000000 262,205.50 -262,204.50 1.00 11/16/2020 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -104,586.1300 0.000000 104,586.13 -104,578.61 7.52 11/16/2020 47789JAB2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.850% 12/15/21 CMO FINAL PAYDOWN -196,926.8600 0.000000 196,926.86 -196,917.88 8.98 11/16/2020 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -326,413.1500 0.000000 326,413.15 -326,388.41 24.74 11/16/2020 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 -112,511.6000 0.000000 112,511.60 -110,766.79 1,744.81 11/16/2020 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -215,744.2900 0.000000 215,744.29 -215,737.30 6.99 11/16/2020 89239AAB9 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.830% 10/15/21 CMO FINAL PAYDOWN -176,208.7800 0.000000 176,208.78 -176,192.78 16.00 11/17/2020 3137EAEK1 MATURED PAR VALUE OF F H L M C M T N 1.875% 11/17/20 5,000,000 PAR VALUE AT 100 %-5,000,000.0000 1.000000 5,000,000.00 -4,986,225.00 13,775.00 11/18/2020 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 -322,255.2900 0.000000 322,255.29 -322,234.54 20.75 11/18/2020 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 -103,235.8600 0.000000 103,235.86 -103,233.61 2.25 11/18/2020 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.78999% 9/20/21 -117,727.9800 0.000000 117,727.98 -115,860.89 1,867.09 11/20/2020 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 3.125% 12/20/26 OCTOBER GNMA DUE 11/20/20 -444.6000 0.000000 444.60 -451.94 -7.34 11/20/2020 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.875% 6/20/27 OCTOBER GNMA DUE 11/20/20 -116.9800 0.000000 116.98 -119.54 -2.56 11/20/2020 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 2.875% 4/20/30 OCTOBER GNMA DUE 11/20/20 -160.1200 0.000000 160.12 -158.67 1.45 11/20/2020 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 2.875% 5/20/30 OCTOBER GNMA DUE 11/20/20 -892.3900 0.000000 892.39 -883.33 9.06 11/20/2020 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 2.250% 7/20/34 OCTOBER GNMA DUE 11/20/20 -924.5000 0.000000 924.50 -923.92 0.58 6 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/23/2020 89233GLP9 MATURED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 11/23/20 1,500,000 PAR VALUE AT 100 % -1,500,000.0000 1.000000 1,498,721.67 -1,498,721.67 0.00 11/23/2020 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -225,118.1000 0.000000 225,118.10 -225,087.21 30.89 11/24/2020 313384Q77 MATURED PAR VALUE OF F H L B DISC NTS 11/24/20 4,800,000 PAR VALUE AT 100 % -4,800,000.0000 1.000000 4,796,656.00 -4,796,656.00 0.00 11/25/2020 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -2,857.8900 0.000000 2,857.89 -3,236.56 -378.67 11/25/2020 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 OCTOBER FNMA DUE 11/25/20 -133.8800 0.000000 133.88 -141.59 -7.71 11/25/2020 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 OCTOBER FNMA DUE 11/25/20 -826.6200 0.000000 826.62 -888.62 -62.00 11/25/2020 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 OCTOBER FNMA DUE 11/25/20 -1,722.0200 0.000000 1,722.02 -1,851.17 -129.15 11/25/2020 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 OCTOBER FNMA DUE 11/25/20 -6.0500 0.000000 6.05 -6.50 -0.45 11/25/2020 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 OCTOBER FNMA DUE 11/25/20 -4,676.9500 0.000000 4,676.95 -5,027.72 -350.77 11/25/2020 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 3.674% 2/01/35 OCTOBER FNMA DUE 11/25/20 -522.2400 0.000000 522.24 -518.16 4.08 11/25/2020 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 OCTOBER FNMA DUE 11/25/20 -404.7700 0.000000 404.77 -435.13 -30.36 11/25/2020 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 OCTOBER FNMA DUE 11/25/20 -2,515.1400 0.000000 2,515.14 -2,703.78 -188.64 11/25/2020 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 OCTOBER FNMA DUE 11/25/20 -294.5800 0.000000 294.58 -311.55 -16.97 11/25/2020 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 OCTOBER FNMA DUE 11/25/20 -443.5300 0.000000 443.53 -469.08 -25.55 11/25/2020 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -3,648.1200 0.000000 3,648.12 -3,646.98 1.14 11/25/2020 31846V567 SOLD 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 11/30/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,157,404.9000 1.000000 10,157,404.90 -10,157,404.90 0.00 12/14/2020 92826CAB8 MATURED PAR VALUE OF VISA INC 2.200% 12/14/20 500,000 PAR VALUE AT 100 %-500,000.0000 1.000000 500,000.00 -501,360.00 -1,360.00 12/15/2020 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.956% 8/15/32 -129.8500 0.000000 129.85 -129.99 -0.14 12/15/2020 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 3.845% 1/01/28 NOVEMBER FHLMC DUE 12/15/20 -18.6500 0.000000 18.65 -18.20 0.45 12/15/2020 43815NAB0 PAID DOWN PAR VALUE OF HONDA AUTO 1.900% 4/15/22 -257,374.9500 0.000000 257,374.95 -257,356.93 18.02 12/15/2020 477870AB5 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.280% 5/16/22 -151,088.7000 0.000000 151,088.70 -151,088.13 0.57 12/15/2020 47788CAC6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.660% 4/18/22 -54,442.7300 0.000000 54,442.73 -54,438.82 3.91 12/15/2020 47788EAC2 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 3.080% 11/15/22 -210,261.9600 0.000000 210,261.96 -210,246.02 15.94 7 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/15/2020 65478GAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.750% 10/15/21 CMO FINAL PAYDOWN -58,163.1600 0.000000 58,163.16 -57,261.18 901.98 12/15/2020 65479GAD1 PAID DOWN PAR VALUE OF NISSAN AUTO 3.060% 3/15/23 -193,118.2500 0.000000 193,118.25 -193,111.99 6.26 12/18/2020 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.78999% 9/20/21 CMO FINAL PAYDOWN -78,985.1700 1.555167 78,985.17 -77,732.51 1,252.66 12/18/2020 43814UAG4 PAID DOWN PAR VALUE OF HONDA AUTO 3.010% 5/18/22 -94,842.7900 0.000000 94,842.79 -94,840.72 2.07 12/18/2020 43814WAB1 PAID DOWN PAR VALUE OF HONDA AUTO 2.750% 9/20/21 CMO FINAL PAYDOWN -51,972.3400 2.363471 51,972.34 -51,968.99 3.35 12/21/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,500,000.0000 1.000000 2,500,000.00 -2,500,000.00 0.00 12/21/2020 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 3.125% 12/20/26 NOVEMBER GNMA DUE 12/20/20 -573.5500 0.000000 573.55 -583.03 -9.48 12/21/2020 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.875% 6/20/27 NOVEMBER GNMA DUE 12/20/20 -126.5400 0.000000 126.54 -129.31 -2.77 12/21/2020 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 2.875% 5/20/30 NOVEMBER GNMA DUE 12/20/20 -817.6800 0.000000 817.68 -809.38 8.30 12/21/2020 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 2.875% 4/20/30 NOVEMBER GNMA DUE 12/20/20 -126.6000 0.000000 126.60 -125.45 1.15 12/21/2020 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 2.250% 7/20/34 NOVEMBER GNMA DUE 12/20/20 -203.7800 0.000000 203.78 -203.65 0.13 12/21/2020 43815HAC1 PAID DOWN PAR VALUE OF HONDA AUTO 2.950% 8/22/22 -202,717.6900 0.000000 202,717.69 -202,689.88 27.81 12/28/2020 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 NOVEMBER FNMA DUE 12/25/20 -133.1800 0.000000 133.18 -140.85 -7.67 12/28/2020 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 NOVEMBER FNMA DUE 12/25/20 -1,511.5900 0.000000 1,511.59 -1,624.96 -113.37 12/28/2020 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 NOVEMBER FNMA DUE 12/25/20 -266.4400 0.000000 266.44 -281.79 -15.35 12/28/2020 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -16,824.7700 0.000000 16,824.77 -19,054.05 -2,229.28 12/28/2020 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41 -3,159.5100 0.000000 3,159.51 -3,158.52 0.99 12/28/2020 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 NOVEMBER FNMA DUE 12/25/20 -1,688.1900 0.000000 1,688.19 -1,814.80 -126.61 12/28/2020 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 NOVEMBER FNMA DUE 12/25/20 -6.0800 0.000000 6.08 -6.54 -0.46 12/28/2020 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 NOVEMBER FNMA DUE 12/25/20 -4,744.6600 0.000000 4,744.66 -5,100.51 -355.85 12/28/2020 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 3.476% 2/01/35 NOVEMBER FNMA DUE 12/25/20 -578.2800 0.000000 578.28 -573.76 4.52 12/28/2020 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 NOVEMBER FNMA DUE 12/25/20 -448.6300 0.000000 448.63 -482.28 -33.65 12/28/2020 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 NOVEMBER FNMA DUE 12/25/20 -6,982.6500 0.000000 6,982.65 -7,506.35 -523.70 8 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/28/2020 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 NOVEMBER FNMA DUE 12/25/20 -240.4900 0.000000 240.49 -254.34 -13.85 12/28/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,999,543.7500 1.000000 8,999,543.75 -8,999,543.75 0.00 12/29/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -45,517,067.9800 1.000000 45,517,067.98 -45,517,067.98 0.00 12/29/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -8,999,213.4100 1.000000 8,999,213.41 -8,999,213.41 0.00 12/30/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -29,310,341.3800 1.000000 29,310,341.38 -29,310,341.38 0.00 12/30/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -21,490,427.0100 1.000000 21,490,427.01 -21,490,427.01 0.00 12/31/2020 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,852,578.1300 1.000000 6,852,578.13 -6,852,578.13 0.00 12/31/2020 912796TY5 MATURED PAR VALUE OF U S TREASURY BILL 12/31/20 5,000,000 PAR VALUE AT 100 % -5,000,000.0000 1.000000 4,995,372.22 -4,995,372.22 0.00 TOTAL DISPOSITIONS -243,265,042.8500 243,273,956.59 -242,903,928.87 370,027.72 OTHER TRANSACTIONS 10/01/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 9/30/2020 INTEREST FROM 9/1/20 TO 9/30/20 0.0000 0.000000 240.10 0.00 0.00 10/01/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 9/30/2020 INTEREST FROM 9/1/20 TO 9/30/20 0.0000 0.000000 294.62 0.00 0.00 10/01/2020 525ESCIB7 Unknown LEHMAN BRTH MTN ES 0.00001% 1/24/13 PARTIAL LIQUIDATING DISTRIBUTION PAID @ 0.78/SHARE 0.0000 0.000000 472.22 -472.22 0.00 10/02/2020 525ESC0Y6 Unknown LEHMAN BRTH HLD ESC PARTIAL LIQUIDATING DISTRIBUTION PAID @ 0.78/SHARE 0.0000 0.000000 1,568.51 -1,568.51 0.00 10/05/2020 3135G0T45 INTEREST EARNED ON F N M A 1.875% 4/05/22 $1 PV ON 5000000.0000 SHARES DUE 10/5/2020 0.0000 0.000000 46,875.00 0.00 0.00 10/08/2020 912796TN9 INTEREST EARNED ON U S TREASURY BILL 10/08/20 $1 PV ON 5000000.0000 SHARES DUE 10/8/2020 5,000,000 PAR VALUE AT 100 % 0.0000 0.000000 2,515.62 0.00 0.00 10/13/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 17992.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 10/13/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 17992.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 17,992.00 0.00 10/13/2020 02665WCQ2 INTEREST EARNED ON AMERICAN HONDA MTN 3.625% 10/10/23 $1 PV ON 2000000.0000 SHARES DUE 10/13/2020 0.0000 0.000000 36,250.00 0.00 0.00 10/13/2020 313384K57 INTEREST EARNED ON F H L B DISC NTS 10/13/20 $1 PV ON 6500000.0000 SHARES DUE 10/13/2020 6,500,000 PAR VALUE AT 100 % 0.0000 0.000000 3,596.67 0.00 0.00 10/13/2020 24422EUM9 INTEREST EARNED ON JOHN DEERE MTN 3.650% 10/12/23 $1 PV ON 1250000.0000 SHARES DUE 10/12/2020 0.0000 0.000000 22,812.50 0.00 0.00 10/13/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 17992.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 17,992.0000 0.000000 0.00 0.00 0.00 10/13/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 17992.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 10/14/2020 912828WR7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.125% 6/30/21 0.0000 0.000000 -30,604.62 0.00 0.00 9 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/15/2020 31348SWZ3 INTEREST EARNED ON F H L M C #786064 3.846% 1/01/28 $1 PV ON 5.2100 SHARES DUE 10/15/2020 AUGUST FHLMC DUE 10/15/20 0.0000 0.000000 5.21 0.00 0.00 10/15/2020 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.985% 8/15/32 $1 PV ON 15.8100 SHARES DUE 10/15/2020 $0.00332/PV ON 4,760.35 PV DUE 10/15/20 0.0000 0.000000 15.81 0.00 0.00 10/15/2020 43815NAB0 INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22 $1 PV ON 3455.0900 SHARES DUE 10/15/2020 $0.00158/PV ON 2,182,158.82 PV DUE 10/15/20 0.0000 0.000000 3,455.09 0.00 0.00 10/15/2020 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV ON 629.0000 SHARES DUE 10/15/2020 $0.00042/PV ON 1,480,000.00 PV DUE 10/15/20 0.0000 0.000000 629.00 0.00 0.00 10/15/2020 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 29.2700 SHARES DUE 10/15/2020 $0.00152/PV ON 19,300.21 PV DUE 10/15/20 0.0000 0.000000 29.27 0.00 0.00 10/15/2020 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22 $1 PV ON 2360.8100 SHARES DUE 10/15/2020 $0.00190/PV ON 1,242,530.55 PV DUE 10/15/20 0.0000 0.000000 2,360.81 0.00 0.00 10/15/2020 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22 $1 PV ON 868.2100 SHARES DUE 10/15/2020 $0.00222/PV ON 391,673.18 PV DUE 10/15/20 0.0000 0.000000 868.21 0.00 0.00 10/15/2020 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 997.3200 SHARES DUE 10/15/2020 $0.00237/PV ON 419,926.33 PV DUE 10/15/20 0.0000 0.000000 997.32 0.00 0.00 10/15/2020 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 7447.6000 SHARES DUE 10/15/2020 $0.00257/PV ON 2,901,661.29 PV DUE 10/15/20 0.0000 0.000000 7,447.60 0.00 0.00 10/15/2020 46625HHU7 INTEREST EARNED ON JPMORGAN CHASE CO 4.250% 10/15/20 $1 PV ON 1160000.0000 SHARES DUE 10/15/2020 0.0000 0.000000 24,650.00 0.00 0.00 10/15/2020 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 3143.3300 SHARES DUE 10/15/2020 $0.00153/PV ON 2,050,000.00 PV DUE 10/15/20 0.0000 0.000000 3,143.33 0.00 0.00 10/15/2020 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750% 10/15/21 $1 PV ON 426.7800 SHARES DUE 10/15/2020 $0.00146/PV ON 292,650.58 PV DUE 10/15/20 0.0000 0.000000 426.78 0.00 0.00 10/15/2020 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 6730.8700 SHARES DUE 10/15/2020 $0.00161/PV ON 4,185,000.00 PV DUE 10/15/20 0.0000 0.000000 6,730.87 0.00 0.00 10/15/2020 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 7256.0700 SHARES DUE 10/15/2020 $0.00255/PV ON 2,845,516.98 PV DUE 10/15/20 0.0000 0.000000 7,256.07 0.00 0.00 10/15/2020 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830% 10/15/21 $1 PV ON 1016.3000 SHARES DUE 10/15/2020 $0.00236/PV ON 430,940.84 PV DUE 10/15/20 0.0000 0.000000 1,016.30 0.00 0.00 10/15/2020 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300 SHARES DUE 10/15/2020 $0.00037/PV ON 2,960,000.00 PV DUE 10/15/20 0.0000 0.000000 1,085.33 0.00 0.00 10/19/2020 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON 631.7200 SHARES DUE 10/18/2020 $0.00020/PV ON 3,235,000.00 PV DUE 10/18/20 0.0000 0.000000 631.72 0.00 0.00 10/19/2020 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 478.6700 SHARES DUE 10/18/2020 $0.00149/PV ON 320,898.64 PV DUE 10/18/20 0.0000 0.000000 478.67 0.00 0.00 10/19/2020 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 1619.9200 SHARES DUE 10/18/2020 $0.00229/PV ON 706,874.28 PV DUE 10/18/20 0.0000 0.000000 1,619.92 0.00 0.00 10/19/2020 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22 $1 PV ON 2351.9500 SHARES DUE 10/18/2020 $0.00251/PV ON 937,656.48 PV DUE 10/18/20 0.0000 0.000000 2,351.95 0.00 0.00 10 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/19/2020 91282CAM3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.250% 9/30/25 0.0000 0.000000 -848.21 0.00 0.00 10/19/2020 912828N89 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.375% 1/31/21 0.0000 0.000000 17,934.78 0.00 0.00 10/20/2020 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 3.125% 12/20/26 $1 PV ON 32.7800 SHARES DUE 10/20/2020 SEPTEMBER GNMA DUE 10/20/20 0.0000 0.000000 32.78 0.00 0.00 10/20/2020 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.875% 6/20/27 $1 PV ON 22.4100 SHARES DUE 10/20/2020 SEPTEMBER GNMA DUE 10/20/20 0.0000 0.000000 22.41 0.00 0.00 10/20/2020 36225CNM4 INTEREST EARNED ON G N M A I I #080395 2.875% 4/20/30 $1 PV ON 12.5100 SHARES DUE 10/20/2020 SEPTEMBER GNMA DUE 10/20/20 0.0000 0.000000 12.51 0.00 0.00 10/20/2020 36225CN28 INTEREST EARNED ON G N M A I I #080408 2.875% 5/20/30 $1 PV ON 90.6700 SHARES DUE 10/20/2020 SEPTEMBER GNMA DUE 10/20/20 0.0000 0.000000 90.67 0.00 0.00 10/20/2020 36225DCB8 INTEREST EARNED ON G N M A I I #080965 3.250% 7/20/34 $1 PV ON 92.0500 SHARES DUE 10/20/2020 SEPTEMBER GNMA DUE 10/20/20 0.0000 0.000000 92.05 0.00 0.00 10/21/2020 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22 $1 PV ON 6012.4500 SHARES DUE 10/21/2020 $0.00246/PV ON 2,445,741.84 PV DUE 10/21/20 0.0000 0.000000 6,012.45 0.00 0.00 10/22/2020 3135G03U5 INTEREST EARNED ON F N M A DEB 0.625% 4/22/25 $1 PV ON 14000000.0000 SHARES DUE 10/22/2020 0.0000 0.000000 43,263.89 0.00 0.00 10/22/2020 459058JB0 INTEREST EARNED ON INTL BK M T N 0.625% 4/22/25 $1 PV ON 6245000.0000 SHARES DUE 10/22/2020 0.0000 0.000000 19,546.85 0.00 0.00 10/22/2020 9127962S7 INTEREST EARNED ON U S TREASURY BILL 10/22/20 $1 PV ON 5000000.0000 SHARES DUE 10/22/2020 5,000,000 PAR VALUE AT 100 % 0.0000 0.000000 2,637.15 0.00 0.00 10/22/2020 912828L99 RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 1.375% 10/31/20 0.0000 0.000000 42,501.70 0.00 0.00 10/26/2020 03215PFN4 INTEREST EARNED ON AMRESCO 1.12443% 6/25/29 $1 PV ON 111.5300 SHARES DUE 10/25/2020 $0.00094/PV ON 119,021.64 PV DUE 10/25/20 0.0000 0.000000 111.53 0.00 0.00 10/26/2020 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 3172.4200 SHARES DUE 10/25/2020 $0.00542/PV ON 585,676.61 PV DUE 10/25/20 0.0000 0.000000 3,172.42 0.00 0.00 10/26/2020 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 41.6400 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 41.64 0.00 0.00 10/26/2020 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 342.0300 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 342.03 0.00 0.00 10/26/2020 31381PDA3 INTEREST EARNED ON F N M A #466397 3.400% 11/01/20 $1 PV ON 930.6000 SHARES DUE 10/25/2020 P & I DUE 10/25/20 0.0000 0.000000 930.60 0.00 0.00 10/26/2020 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 315.8000 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 315.80 0.00 0.00 10/26/2020 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 6.9600 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 6.96 0.00 0.00 10/26/2020 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 501.6300 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 501.63 0.00 0.00 10/26/2020 31406XWT5 INTEREST EARNED ON F N M A #823358 3.674% 2/01/35 $1 PV ON 283.8000 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 283.80 0.00 0.00 11 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 10/26/2020 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 64.1600 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 64.16 0.00 0.00 10/26/2020 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 600.9200 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 600.92 0.00 0.00 10/26/2020 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 28.8100 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 28.81 0.00 0.00 10/26/2020 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 46.7100 SHARES DUE 10/25/2020 SEPTEMBER FNMA DUE 10/25/20 0.0000 0.000000 46.71 0.00 0.00 10/26/2020 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 100.9200 SHARES DUE 10/25/2020 $0.00069/PV ON 146,233.86 PV DUE 10/25/20 0.0000 0.000000 100.92 0.00 0.00 10/26/2020 78445JAA5 INTEREST EARNED ON S L M A 1.76388% 4/25/23 $1 PV ON 49.5000 SHARES DUE 10/25/2020 $0.00441/PV ON 11,225.80 PV DUE 10/25/20 0.0000 0.000000 49.50 0.00 0.00 10/27/2020 912828S76 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 7/31/21 0.0000 0.000000 -13,451.09 0.00 0.00 10/27/2020 9128287A2 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.625% 6/30/21 0.0000 0.000000 -26,273.78 0.00 0.00 10/28/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 18512.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 10/28/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 18512.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 18,512.00 0.00 10/28/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 18512.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 18,512.0000 0.000000 0.00 0.00 0.00 10/28/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 18512.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 10/30/2020 00440EAS6 PAID ACCRUED INTEREST ON PURCHASE OF ACE INA HOLDING 3.150% 3/15/25 0.0000 0.000000 -7,875.00 0.00 0.00 10/30/2020 9128287A2 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.625% 6/30/21 0.0000 0.000000 -21,548.91 0.00 0.00 11/02/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 10/31/2020 INTEREST FROM 10/1/20 TO 10/31/20 0.0000 0.000000 244.92 0.00 0.00 11/02/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 10/31/2020 INTEREST FROM 10/1/20 TO 10/31/20 0.0000 0.000000 93.58 0.00 0.00 11/02/2020 64971M5E8 INTEREST EARNED ON NEW YORK CITY NY 4.075% 11/01/20 $1 PV ON 1400000.0000 SHARES DUE 11/1/2020 0.0000 0.000000 28,525.00 0.00 0.00 11/02/2020 912828ZL7 INTEREST EARNED ON U S TREASURY NT 0.375% 4/30/25 $1 PV ON 12000000.0000 SHARES DUE 10/31/2020 0.0000 0.000000 22,500.00 0.00 0.00 11/02/2020 912828T67 INTEREST EARNED ON U S TREASURY NT 1.250% 10/31/21 $1 PV ON 6000000.0000 SHARES DUE 10/31/2020 0.0000 0.000000 37,500.00 0.00 0.00 11/03/2020 00440EAT4 INTEREST EARNED ON ACE INA HOLDINGS 2.300% 11/03/20 $1 PV ON 500000.0000 SHARES DUE 11/3/2020 0.0000 0.000000 5,750.00 0.00 0.00 11/03/2020 00440EAU1 INTEREST EARNED ON ACE INA HOLDINGS 2.875% 11/03/22 $1 PV ON 4169000.0000 SHARES DUE 11/3/2020 0.0000 0.000000 59,929.38 0.00 0.00 11/05/2020 912796TP4 INTEREST EARNED ON U S TREASURY BILL 11/05/20 $1 PV ON 5000000.0000 SHARES DUE 11/5/2020 5,000,000 PAR VALUE AT 100 %0.0000 0.000000 2,625.00 0.00 0.00 12 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/06/2020 037833AR1 INTEREST EARNED ON APPLE INC 2.850% 5/06/21 $1 PV ON 1155000.0000 SHARES DUE 11/6/2020 0.0000 0.000000 16,458.75 0.00 0.00 11/06/2020 3133ELYR9 INTEREST EARNED ON F F C B DEB 0.250% 5/06/22 $1 PV ON 8850000.0000 SHARES DUE 11/6/2020 0.0000 0.000000 11,062.50 0.00 0.00 11/10/2020 3135G0F73 RECEIVED ACCRUED INTEREST ON SALE OF F N M A 1.500% 11/30/20 0.0000 0.000000 50,000.00 0.00 0.00 11/12/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 8528.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 11/12/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 8528.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 8,528.00 0.00 11/12/2020 037833CU2 INTEREST EARNED ON APPLE INC 2.850% 5/11/24 $1 PV ON 3000000.0000 SHARES DUE 11/11/2020 0.0000 0.000000 42,750.00 0.00 0.00 11/12/2020 369550BE7 INTEREST EARNED ON GENERAL DYNAMICS 3.000% 5/11/21 $1 PV ON 3160000.0000 SHARES DUE 11/11/2020 0.0000 0.000000 47,400.00 0.00 0.00 11/12/2020 458140BD1 INTEREST EARNED ON INTEL CORP 2.875% 5/11/24 $1 PV ON 5000000.0000 SHARES DUE 11/11/2020 0.0000 0.000000 71,875.00 0.00 0.00 11/12/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 8528.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 8,528.0000 0.000000 0.00 0.00 0.00 11/12/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 8528.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 11/16/2020 084664BT7 INTEREST EARNED ON BERKSHIRE HATHAWAY 3.000% 5/15/22 $1 PV ON 4000000.0000 SHARES DUE 11/15/2020 0.0000 0.000000 60,000.00 0.00 0.00 11/16/2020 166764BG4 INTEREST EARNED ON CHEVRON CORP 2.100% 5/16/21 $1 PV ON 2500000.0000 SHARES DUE 11/16/2020 0.0000 0.000000 26,250.00 0.00 0.00 11/16/2020 31348SWZ3 INTEREST EARNED ON F H L M C #786064 3.845% 1/01/28 $1 PV ON 5.1800 SHARES DUE 11/15/2020 SEPTEMBER FHLMC DUE 11/15/20 0.0000 0.000000 5.18 0.00 0.00 11/16/2020 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.954% 8/15/32 $1 PV ON 15.4600 SHARES DUE 11/15/2020 $0.00330/PV ON 4,691.05 PV DUE 11/15/20 0.0000 0.000000 15.46 0.00 0.00 11/16/2020 43815NAB0 INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22 $1 PV ON 2992.6900 SHARES DUE 11/15/2020 $0.00158/PV ON 1,890,119.45 PV DUE 11/15/20 0.0000 0.000000 2,992.69 0.00 0.00 11/16/2020 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV ON 629.0000 SHARES DUE 11/15/2020 $0.00042/PV ON 1,480,000.00 PV DUE 11/15/20 0.0000 0.000000 629.00 0.00 0.00 11/16/2020 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 1.7400 SHARES DUE 11/15/2020 $0.00152/PV ON 1,148.63 PV DUE 11/15/20 0.0000 0.000000 1.74 0.00 0.00 11/16/2020 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22 $1 PV ON 2013.6500 SHARES DUE 11/15/2020 $0.00190/PV ON 1,059,816.58 PV DUE 11/15/20 0.0000 0.000000 2,013.65 0.00 0.00 11/16/2020 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22 $1 PV ON 720.0400 SHARES DUE 11/15/2020 $0.00222/PV ON 324,828.43 PV DUE 11/15/20 0.0000 0.000000 720.04 0.00 0.00 11/16/2020 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850% 12/15/21 $1 PV ON 467.7000 SHARES DUE 11/15/2020 $0.00238/PV ON 196,926.86 PV DUE 11/15/20 0.0000 0.000000 467.70 0.00 0.00 13 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/16/2020 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 6885.2000 SHARES DUE 11/15/2020 $0.00257/PV ON 2,682,544.92 PV DUE 11/15/20 0.0000 0.000000 6,885.20 0.00 0.00 11/16/2020 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 3143.3300 SHARES DUE 11/15/2020 $0.00153/PV ON 2,050,000.00 PV DUE 11/15/20 0.0000 0.000000 3,143.33 0.00 0.00 11/16/2020 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750% 10/15/21 $1 PV ON 248.9000 SHARES DUE 11/15/2020 $0.00146/PV ON 170,674.76 PV DUE 11/15/20 0.0000 0.000000 248.90 0.00 0.00 11/16/2020 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 6730.8700 SHARES DUE 11/15/2020 $0.00161/PV ON 4,185,000.00 PV DUE 11/15/20 0.0000 0.000000 6,730.87 0.00 0.00 11/16/2020 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 6710.6800 SHARES DUE 11/15/2020 $0.00255/PV ON 2,631,639.55 PV DUE 11/15/20 0.0000 0.000000 6,710.68 0.00 0.00 11/16/2020 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830% 10/15/21 $1 PV ON 415.5600 SHARES DUE 11/15/2020 $0.00236/PV ON 176,208.78 PV DUE 11/15/20 0.0000 0.000000 415.56 0.00 0.00 11/16/2020 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300 SHARES DUE 11/15/2020 $0.00037/PV ON 2,960,000.00 PV DUE 11/15/20 0.0000 0.000000 1,085.33 0.00 0.00 11/16/2020 912828WJ5 INTEREST EARNED ON U S TREASURY NT 2.500% 5/15/24 $1 PV ON 7000000.0000 SHARES DUE 11/15/2020 0.0000 0.000000 87,500.00 0.00 0.00 11/16/2020 913366EJ5 INTEREST EARNED ON UNIV OF CALIFORNIA 5.035% 5/15/21 $1 PV ON 400000.0000 SHARES DUE 11/15/2020 0.0000 0.000000 10,070.00 0.00 0.00 11/17/2020 3137EAEK1 INTEREST EARNED ON F H L M C M T N 1.875% 11/17/20 $1 PV ON 5000000.0000 SHARES DUE 11/17/2020 0.0000 0.000000 46,875.00 0.00 0.00 11/17/2020 89236TBJ3 INTEREST EARNED ON TOYOTA MOTOR MTN 2.750% 5/17/21 $1 PV ON 1500000.0000 SHARES DUE 11/17/2020 0.0000 0.000000 20,625.00 0.00 0.00 11/18/2020 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON 997.4600 SHARES DUE 11/18/2020 $0.00031/PV ON 3,235,000.00 PV DUE 11/18/20 0.0000 0.000000 997.46 0.00 0.00 11/18/2020 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 857.6100 SHARES DUE 11/18/2020 $0.00229/PV ON 374,227.63 PV DUE 11/18/20 0.0000 0.000000 857.61 0.00 0.00 11/18/2020 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22 $1 PV ON 2079.6100 SHARES DUE 11/18/2020 $0.00251/PV ON 829,080.97 PV DUE 11/18/20 0.0000 0.000000 2,079.61 0.00 0.00 11/18/2020 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.78999% 9/20/21 $1 PV ON 293.4300 SHARES DUE 11/18/2020 $0.00149/PV ON 196,713.15 PV DUE 11/18/20 0.0000 0.000000 293.43 0.00 0.00 11/18/2020 46625HRL6 INTEREST EARNED ON JP MORGAN CHASE CO 2.700% 5/18/23 $1 PV ON 5000000.0000 SHARES DUE 11/18/2020 0.0000 0.000000 67,500.00 0.00 0.00 11/18/2020 58933YAF2 INTEREST EARNED ON MERCK CO INC 2.800% 5/18/23 $1 PV ON 2000000.0000 SHARES DUE 11/18/2020 0.0000 0.000000 28,000.00 0.00 0.00 11/20/2020 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 3.125% 12/20/26 $1 PV ON 32.3600 SHARES DUE 11/20/2020 OCTOBER GNMA DUE 11/20/20 0.0000 0.000000 32.36 0.00 0.00 11/20/2020 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.875% 6/20/27 $1 PV ON 22.1300 SHARES DUE 11/20/2020 OCTOBER GNMA DUE 11/20/20 0.0000 0.000000 22.13 0.00 0.00 11/20/2020 36225CNM4 INTEREST EARNED ON G N M A I I #080395 2.875% 4/20/30 $1 PV ON 12.1200 SHARES DUE 11/20/2020 OCTOBER GNMA DUE 11/20/20 0.0000 0.000000 12.12 0.00 0.00 14 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/20/2020 36225CN28 INTEREST EARNED ON G N M A I I #080408 2.875% 5/20/30 $1 PV ON 89.8900 SHARES DUE 11/20/2020 OCTOBER GNMA DUE 11/20/20 0.0000 0.000000 89.89 0.00 0.00 11/20/2020 36225DCB8 INTEREST EARNED ON G N M A I I #080965 2.250% 7/20/34 $1 PV ON 62.0100 SHARES DUE 11/20/2020 OCTOBER GNMA DUE 11/20/20 0.0000 0.000000 62.01 0.00 0.00 11/23/2020 808513AW5 INTEREST EARNED ON CHARLES SCHWAB CORP 3.250% 5/21/21 $1 PV ON 1385000.0000 SHARES DUE 11/21/2020 0.0000 0.000000 22,506.25 0.00 0.00 11/23/2020 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22 $1 PV ON 5456.2400 SHARES DUE 11/21/2020 $0.00246/PV ON 2,219,487.17 PV DUE 11/21/20 0.0000 0.000000 5,456.24 0.00 0.00 11/23/2020 89233GLP9 INTEREST EARNED ON TOYOTA MOTOR CREDIT CO C P 11/23/20 $1 PV ON 1500000.0000 SHARES DUE 11/23/2020 1,500,000 PAR VALUE AT 100 %0.0000 0.000000 1,278.33 0.00 0.00 11/24/2020 313384Q77 INTEREST EARNED ON F H L B DISC NTS 11/24/20 $1 PV ON 4800000.0000 SHARES DUE 11/24/2020 4,800,000 PAR VALUE AT 100 % 0.0000 0.000000 3,344.00 0.00 0.00 11/24/2020 459058FH1 INTEREST EARNED ON INTL BK 1.375% 5/24/21 $1 PV ON 1000000.0000 SHARES DUE 11/24/2020 0.0000 0.000000 6,880.00 0.00 0.00 11/25/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 7904.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 11/25/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 7904.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 7,904.00 0.00 11/25/2020 03215PFN4 INTEREST EARNED ON AMRESCO 1.08922% 6/25/29 $1 PV ON 108.0300 SHARES DUE 11/25/2020 $0.00091/PV ON 119,021.64 PV DUE 11/25/20 0.0000 0.000000 108.03 0.00 0.00 11/25/2020 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 3146.0900 SHARES DUE 11/25/2020 $0.00542/PV ON 580,816.61 PV DUE 11/25/20 0.0000 0.000000 3,146.09 0.00 0.00 11/25/2020 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 41.1500 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 41.15 0.00 0.00 11/25/2020 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 337.3400 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 337.34 0.00 0.00 11/25/2020 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 308.8900 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 308.89 0.00 0.00 11/25/2020 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 5.5400 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 5.54 0.00 0.00 11/25/2020 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 478.5300 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 478.53 0.00 0.00 11/25/2020 31406XWT5 INTEREST EARNED ON F N M A #823358 3.674% 2/01/35 $1 PV ON 282.3000 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 282.30 0.00 0.00 11/25/2020 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 61.0800 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 61.08 0.00 0.00 11/25/2020 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 584.5500 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 584.55 0.00 0.00 11/25/2020 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 28.1800 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 28.18 0.00 0.00 15 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 11/25/2020 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 45.9700 SHARES DUE 11/25/2020 OCTOBER FNMA DUE 11/25/20 0.0000 0.000000 45.97 0.00 0.00 11/25/2020 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 98.6700 SHARES DUE 11/25/2020 $0.00069/PV ON 142,780.85 PV DUE 11/25/20 0.0000 0.000000 98.67 0.00 0.00 11/25/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 7904.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 7,904.0000 0.000000 0.00 0.00 0.00 11/25/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 7904.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 11/30/2020 912828R69 INTEREST EARNED ON U S TREASURY NT 1.625% 5/31/23 $1 PV ON 5000000.0000 SHARES DUE 11/30/2020 0.0000 0.000000 40,625.00 0.00 0.00 11/30/2020 912828U65 INTEREST EARNED ON U S TREASURY NT 1.750% 11/30/21 $1 PV ON 7000000.0000 SHARES DUE 11/30/2020 0.0000 0.000000 61,250.00 0.00 0.00 11/30/2020 912828M80 INTEREST EARNED ON U S TREASURY NT 2.000% 11/30/22 $1 PV ON 8000000.0000 SHARES DUE 11/30/2020 0.0000 0.000000 80,000.00 0.00 0.00 11/30/2020 912828U57 INTEREST EARNED ON U S TREASURY NT 2.125% 11/30/23 $1 PV ON 15000000.0000 SHARES DUE 11/30/2020 0.0000 0.000000 159,375.00 0.00 0.00 11/30/2020 9128283J7 INTEREST EARNED ON U S TREASURY NT 2.125% 11/30/24 $1 PV ON 16500000.0000 SHARES DUE 11/30/2020 0.0000 0.000000 175,312.50 0.00 0.00 11/30/2020 9128287A2 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.625% 6/30/21 0.0000 0.000000 -33,780.57 0.00 0.00 11/30/2020 9128287A2 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.625% 6/30/21 0.0000 0.000000 -33,780.57 0.00 0.00 12/01/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 11/30/2020 INTEREST FROM 11/1/20 TO 11/30/20 0.0000 0.000000 156.60 0.00 0.00 12/01/2020 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 11/30/2020 INTEREST FROM 11/1/20 TO 11/30/20 0.0000 0.000000 111.99 0.00 0.00 12/01/2020 438516CB0 INTEREST EARNED ON HONEYWELL 1.350% 6/01/25 $1 PV ON 5000000.0000 SHARES DUE 12/1/2020 0.0000 0.000000 36,187.50 0.00 0.00 12/08/2020 3130A0F70 INTEREST EARNED ON F H L B DEB 3.375% 12/08/23 $1 PV ON 10000000.0000 SHARES DUE 12/8/2020 0.0000 0.000000 168,750.00 0.00 0.00 12/08/2020 69353RFL7 INTEREST EARNED ON PNC BANK NA MTN 3.500% 6/08/23 $1 PV ON 5000000.0000 SHARES DUE 12/8/2020 0.0000 0.000000 87,500.00 0.00 0.00 12/09/2020 313383QR5 INTEREST EARNED ON F H L B DEB 3.250% 6/09/23 $1 PV ON 5000000.0000 SHARES DUE 12/9/2020 0.0000 0.000000 81,250.00 0.00 0.00 12/10/2020 78015K7H1 INTEREST EARNED ON ROYAL BANK OF MTN 1.150% 6/10/25 $1 PV ON 1500000.0000 SHARES DUE 12/10/2020 0.0000 0.000000 8,625.00 0.00 0.00 12/11/2020 313379RB7 INTEREST EARNED ON F H L B DEB 1.875% 6/11/21 $1 PV ON 4000000.0000 SHARES DUE 12/11/2020 0.0000 0.000000 37,500.00 0.00 0.00 12/11/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 2704.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 12/11/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 2704.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 2,704.00 0.00 16 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/11/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 2704.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 2,704.0000 0.000000 0.00 0.00 0.00 12/11/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 2704.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 12/14/2020 3130A1XJ2 INTEREST EARNED ON F H L B 2.875% 6/14/24 $1 PV ON 11110000.0000 SHARES DUE 12/14/2020 0.0000 0.000000 159,706.25 0.00 0.00 12/14/2020 89114QCA4 INTEREST EARNED ON TORONTO DOMINION MTN 2.650% 6/12/24 $1 PV ON 3000000.0000 SHARES DUE 12/12/2020 0.0000 0.000000 39,750.00 0.00 0.00 12/14/2020 92826CAB8 INTEREST EARNED ON VISA INC 2.200% 12/14/20 $1 PV ON 500000.0000 SHARES DUE 12/14/2020 0.0000 0.000000 5,500.00 0.00 0.00 12/15/2020 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.956% 8/15/32 $1 PV ON 15.1800 SHARES DUE 12/15/2020 $0.00330/PV ON 4,603.55 PV DUE 12/15/20 0.0000 0.000000 15.18 0.00 0.00 12/15/2020 31348SWZ3 INTEREST EARNED ON F H L M C #786064 3.845% 1/01/28 $1 PV ON 5.1200 SHARES DUE 12/15/2020 OCTOBER FHLMC DUE 12/15/20 0.0000 0.000000 5.12 0.00 0.00 12/15/2020 43815NAB0 INTEREST EARNED ON HONDA AUTO 1.900% 4/15/22 $1 PV ON 2540.8100 SHARES DUE 12/15/2020 $0.00158/PV ON 1,604,723.33 PV DUE 12/15/20 0.0000 0.000000 2,540.81 0.00 0.00 12/15/2020 477870AB5 INTEREST EARNED ON JOHN DEERE OWNER 2.280% 5/16/22 $1 PV ON 1515.4600 SHARES DUE 12/15/2020 $0.00190/PV ON 797,611.08 PV DUE 12/15/20 0.0000 0.000000 1,515.46 0.00 0.00 12/15/2020 47787NAC3 INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV ON 629.0000 SHARES DUE 12/15/2020 $0.00042/PV ON 1,480,000.00 PV DUE 12/15/20 0.0000 0.000000 629.00 0.00 0.00 12/15/2020 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22 $1 PV ON 488.2000 SHARES DUE 12/15/2020 $0.00222/PV ON 220,242.30 PV DUE 12/15/20 0.0000 0.000000 488.20 0.00 0.00 12/15/2020 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080% 11/15/22 $1 PV ON 6047.4100 SHARES DUE 12/15/2020 $0.00257/PV ON 2,356,131.77 PV DUE 12/15/20 0.0000 0.000000 6,047.41 0.00 0.00 12/15/2020 58770FAC6 INTEREST EARNED ON MERCEDES BENZ AUTO 1.840% 12/15/22 $1 PV ON 3143.3300 SHARES DUE 12/15/2020 $0.00153/PV ON 2,050,000.00 PV DUE 12/15/20 0.0000 0.000000 3,143.33 0.00 0.00 12/15/2020 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750% 10/15/21 $1 PV ON 84.8200 SHARES DUE 12/15/2020 $0.00146/PV ON 58,163.16 PV DUE 12/15/20 0.0000 0.000000 84.82 0.00 0.00 12/15/2020 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23 $1 PV ON 6160.5300 SHARES DUE 12/15/2020 $0.00255/PV ON 2,415,895.26 PV DUE 12/15/20 0.0000 0.000000 6,160.53 0.00 0.00 12/15/2020 65479JAD5 INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON 6730.8700 SHARES DUE 12/15/2020 $0.00161/PV ON 4,185,000.00 PV DUE 12/15/20 0.0000 0.000000 6,730.87 0.00 0.00 12/15/2020 89237VAB5 INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV ON 1085.3300 SHARES DUE 12/15/2020 $0.00037/PV ON 2,960,000.00 PV DUE 12/15/20 0.0000 0.000000 1,085.33 0.00 0.00 12/17/2020 3135G04Z3 INTEREST EARNED ON F N M A 0.500% 6/17/25 $1 PV ON 9905000.0000 SHARES DUE 12/17/2020 0.0000 0.000000 24,487.36 0.00 0.00 12/18/2020 43813KAC6 INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON 997.4600 SHARES DUE 12/18/2020 $0.00031/PV ON 3,235,000.00 PV DUE 12/18/20 0.0000 0.000000 997.46 0.00 0.00 12/18/2020 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.78999% 9/20/21 $1 PV ON 117.8200 SHARES DUE 12/18/2020 $0.00149/PV ON 78,985.17 PV DUE 12/18/20 0.0000 0.000000 117.82 0.00 0.00 17 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/18/2020 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22 $1 PV ON 1820.6600 SHARES DUE 12/18/2020 $0.00251/PV ON 725,845.11 PV DUE 12/18/20 0.0000 0.000000 1,820.66 0.00 0.00 12/18/2020 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 119.1000 SHARES DUE 12/18/2020 $0.00229/PV ON 51,972.34 PV DUE 12/18/20 0.0000 0.000000 119.10 0.00 0.00 12/21/2020 3137EAEN5 INTEREST EARNED ON F H L M C 2.750% 6/19/23 $1 PV ON 10000000.0000 SHARES DUE 12/19/2020 0.0000 0.000000 137,500.00 0.00 0.00 12/21/2020 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 3.125% 12/20/26 $1 PV ON 31.2100 SHARES DUE 12/20/2020 NOVEMBER GNMA DUE 12/20/20 0.0000 0.000000 31.21 0.00 0.00 12/21/2020 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.875% 6/20/27 $1 PV ON 21.8500 SHARES DUE 12/20/2020 NOVEMBER GNMA DUE 12/20/20 0.0000 0.000000 21.85 0.00 0.00 12/21/2020 36225CN28 INTEREST EARNED ON G N M A I I #080408 2.875% 5/20/30 $1 PV ON 87.7500 SHARES DUE 12/20/2020 NOVEMBER GNMA DUE 12/20/20 0.0000 0.000000 87.75 0.00 0.00 12/21/2020 36225CNM4 INTEREST EARNED ON G N M A I I #080395 2.875% 4/20/30 $1 PV ON 11.7400 SHARES DUE 12/20/2020 NOVEMBER GNMA DUE 12/20/20 0.0000 0.000000 11.74 0.00 0.00 12/21/2020 36225DCB8 INTEREST EARNED ON G N M A I I #080965 2.250% 7/20/34 $1 PV ON 60.2700 SHARES DUE 12/20/2020 NOVEMBER GNMA DUE 12/20/20 0.0000 0.000000 60.27 0.00 0.00 12/21/2020 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22 $1 PV ON 4902.8200 SHARES DUE 12/21/2020 $0.00246/PV ON 1,994,369.07 PV DUE 12/21/20 0.0000 0.000000 4,902.82 0.00 0.00 12/22/2020 3135G0U35 INTEREST EARNED ON F N M A 2.750% 6/22/21 $1 PV ON 7500000.0000 SHARES DUE 12/22/2020 0.0000 0.000000 103,125.00 0.00 0.00 12/23/2020 CASH RECEIPT INCOMING WIRES REC'D FR BANK OF CALIFORNIA- 12/23/2020 0.0000 0.000000 97,000,000.00 0.00 0.00 12/23/2020 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANK OF CALIF 12/23/2020 0.0000 0.000000 31,000,000.00 0.00 0.00 12/24/2020 166764AH3 INTEREST EARNED ON CHEVRON CORP 3.191% 6/24/23 $1 PV ON 3500000.0000 SHARES DUE 12/24/2020 0.0000 0.000000 55,842.50 0.00 0.00 12/28/2020 03215PFN4 INTEREST EARNED ON AMRESCO 1.19911% 6/25/29 $1 PV ON 118.9300 SHARES DUE 12/25/2020 $0.00100/PV ON 119,021.64 PV DUE 12/25/20 0.0000 0.000000 118.93 0.00 0.00 12/28/2020 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 40.6400 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 40.64 0.00 0.00 12/28/2020 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 333.8900 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 333.89 0.00 0.00 12/28/2020 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 27.0800 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 27.08 0.00 0.00 12/28/2020 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 3130.6100 SHARES DUE 12/25/2020 $0.00542/PV ON 577,958.72 PV DUE 12/25/20 0.0000 0.000000 3,130.61 0.00 0.00 12/28/2020 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV ON 96.2500 SHARES DUE 12/25/2020 $0.00069/PV ON 139,132.73 PV DUE 12/25/20 0.0000 0.000000 96.25 0.00 0.00 12/28/2020 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 301.7100 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 301.71 0.00 0.00 12/28/2020 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 5.5200 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 5.52 0.00 0.00 18 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/28/2020 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 459.0500 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 459.05 0.00 0.00 12/28/2020 31406XWT5 INTEREST EARNED ON F N M A #823358 3.476% 2/01/35 $1 PV ON 265.5700 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 265.57 0.00 0.00 12/28/2020 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 59.3900 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 59.39 0.00 0.00 12/28/2020 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 574.0700 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 574.07 0.00 0.00 12/28/2020 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 44.3000 SHARES DUE 12/25/2020 NOVEMBER FNMA DUE 12/25/20 0.0000 0.000000 44.30 0.00 0.00 12/28/2020 931142EK5 INTEREST EARNED ON WALMART INC 3.400% 6/26/23 $1 PV ON 3880000.0000 SHARES DUE 12/26/2020 0.0000 0.000000 65,960.00 0.00 0.00 12/29/2020 02665WCZ2 INTEREST EARNED ON AMERICAN HONDA MTN 2.400% 6/27/24 $1 PV ON 1219000.0000 SHARES DUE 12/29/2020 0.0000 0.000000 14,628.00 0.00 0.00 12/29/2020 31846V567 CASH RECEIPT LONG-TERM CAPITAL GAIN DIV FIRST AM GOVT OB FD CL Z LTCG PAYABLE 12/29/20; FGZXX 0.0000 0.000000 0.34 0.00 0.00 12/29/2020 31846V567 CASH RECEIPT LONG-TERM CAPITAL GAIN DIV FIRST AM GOVT OB FD CL Z LTCG PAYABLE 12/29/20; FGZXX 0.0000 0.000000 2.50 0.00 0.00 12/29/2020 912828S27 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 6/30/21 0.0000 0.000000 -50,074.73 0.00 0.00 12/29/2020 912828S27 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 6/30/21 0.0000 0.000000 -50,074.73 0.00 0.00 12/29/2020 912828S27 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 6/30/21 0.0000 0.000000 -50,074.73 0.00 0.00 12/29/2020 912828S76 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 7/31/21 0.0000 0.000000 -41,545.52 0.00 0.00 12/29/2020 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 2496.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 12/29/2020 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 2496.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 2,496.00 0.00 12/29/2020 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 2496.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 2,496.0000 0.000000 0.00 0.00 0.00 12/29/2020 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 2496.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 0.00 0.00 0.00 12/29/2020 912828YC8 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500% 8/31/21 0.0000 0.000000 -44,751.38 0.00 0.00 12/30/2020 31846V567 CASH RECEIPT SHORT-TERM CAPITAL GAIN DIV FIRST AM GOVT OB FD CL Z STCG PAYABLE 12/29/20 0.0000 0.000000 0.87 0.00 0.00 12/30/2020 31846V567 CASH RECEIPT SHORT-TERM CAPITAL GAIN DIV FIRST AM GOVT OB FD CL Z STCG PAYABLE 12/29/20 0.0000 0.000000 6.37 0.00 0.00 12/30/2020 912828S76 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 7/31/21 0.0000 0.000000 -27,880.43 0.00 0.00 12/30/2020 912828S76 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 7/31/21 0.0000 0.000000 -23,233.70 0.00 0.00 12/30/2020 912828S76 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 7/31/21 0.0000 0.000000 -41,820.65 0.00 0.00 12/30/2020 912828S76 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 7/31/21 0.0000 0.000000 -41,820.65 0.00 0.00 19 of 20 U.S. Bank Transaction History 10/01/2020 Thru 12/31/2020 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/30/2020 91282CBA8 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.125% 12/15/23 0.0000 0.000000 -334.82 0.00 0.00 12/31/2020 912796TY5 INTEREST EARNED ON U S TREASURY BILL 12/31/20 $1 PV ON 5000000.0000 SHARES DUE 12/31/2020 5,000,000 PAR VALUE AT 100 % 0.0000 0.000000 4,627.78 0.00 0.00 12/31/2020 9128287A2 INTEREST EARNED ON U S TREASURY NT 1.625% 6/30/21 $1 PV ON 19000000.0000 SHARES DUE 12/31/2020 0.0000 0.000000 154,375.00 0.00 0.00 12/31/2020 912828N30 INTEREST EARNED ON U S TREASURY NT 2.125% 12/31/22 $1 PV ON 5000000.0000 SHARES DUE 12/31/2020 0.0000 0.000000 53,125.00 0.00 0.00 12/31/2020 912828S27 INTEREST EARNED ON U S TREASURY NT 1.125% 6/30/21 $1 PV ON 27000000.0000 SHARES DUE 12/31/2020 0.0000 0.000000 151,875.00 0.00 0.00 12/31/2020 912828WR7 INTEREST EARNED ON U S TREASURY NT 2.125% 6/30/21 $1 PV ON 8000000.0000 SHARES DUE 12/31/2020 0.0000 0.000000 85,000.00 0.00 0.00 12/31/2020 912828XW5 INTEREST EARNED ON U S TREASURY NT 1.750% 6/30/22 $1 PV ON 5000000.0000 SHARES DUE 12/31/2020 0.0000 0.000000 43,750.00 0.00 0.00 12/31/2020 912828XX3 INTEREST EARNED ON U S TREASURY NT 2.000% 6/30/24 $1 PV ON 5000000.0000 SHARES DUE 12/31/2020 0.0000 0.000000 50,000.00 0.00 0.00 TOTAL OTHER TRANSACTIONS 58,136.0000 130,731,811.61 56,095.27 0.00 20 of 20 December 31, 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 December 31, 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, $31.0 million was contributed to the Long Term Operating Fund and $97.0 million was contributed to the Liquid Operating Monies. Organizational Issues  N/A Fixed Income Market Snapshot  U.S. Treasury yields rose steadily over the course of 4Q; the 10-year U.S. Treasury yield closed the quarter at 0.93%, up 24 basis points from Sept. 30, but off sharply from the year-end level of 1.92%. TIPS (Bloomberg Barclays US TIPS: +1.6%) strongly outperformed nominal U.S. Treasuries for the quarter as 10-year breakeven spreads widened from 163 bps to 199 bps. The Bloomberg Barclays US Aggregate Bond Index gained 0.7%, bringing its 2020 gain to 7.5%. Corporates strongly outperformed U.S. Treasuries for the quarter and the year (Bloomberg Barclays US Treasury: -0.8%; +8.0%; Bloomberg Barclays US Corporate: +3.0%; +9.9%) in December 31, 2020 September 30, 2020 Market Value Weight Net New Inv.Inv. Return Market Value Weight Domestic Fixed IncomeLong Term Operating Fund*657,618,803 74.45%31,000,000 1,406,042 625,212,761 82.93% Liquid Operating Monies*225,711,282 25.55%97,000,000 26,228 128,685,054 17.07% Total Fund $883,330,085 100.0%$128,000,000 $1,432,270 $753,897,814 100.0% Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund^0.21%4.42%3.56%2.68%2.32% Chandler 0.21%4.42%3.56%2.68%- Blmbg Govt/Cred 1-5 Year Idx 0.33%4.71%3.69%2.77%2.32% ML 1-5 Govt/Corp 0.37%4.65%3.69%2.79%2.36% Liquid Operating Monies^0.02%0.84%1.71%1.30%0.97% Chandler 0.02%0.84%1.71%1.30%- Citigroup 3-Month Treasury Bill 0.02%0.58%1.56%1.16%0.84% Total Fund 0.16%3.73%3.23%2.37%2.05% Target*0.30%3.82%3.27%2.46%2.05% 2 Orange County Sanitation District spite of record 2020 issuance. High yield corporates (Bloomberg Barclays High Yield: +6.5%; +7.1%) outperformed investment grade for the quarter but trailed for the year. High yield default rates (6.2% y-o-y as of December) continued to trend higher but are expected to peak far below levels reached in the Global Financial Crisis. Separately, municipal bonds (Bloomberg Barclays Muni Bond Index: +1.8%; +5.2%) outperformed U.S. Treasuries for the quarter but trailed for the year. Manager Performance  The Long Term Operating Fund generated a 0.21% return in the fourth quarter, which trailed the 0.37% return of the ML U.S. 1-5 Corp/Gov Index. Over the trailing one-year period, the Long Term Operating Fund gained 4.42%, which trailed the benchmark return of 4.65%. The manager ranked in the bottom quartile among the Callan Short Term Fixed Income peer group in the fourth quarter, but is above median over the trailing year. The fund ranks above median over all trailing periods longer than one year.  Credit spreads tightened in the fourth quarter, particularly among lower-quality credit, which led to modest underperformance for Chandler’s more conservatively positioned portfolio relative to the benchmark. The fund’s out-of-benchmark exposure to asset-backed securities, continued to outperform the overall index. Sector allocation remained relatively stable during the quarter. The portfolio had less than 30% invested in credit (21%) and less than the permitted 20% invested in the combination of asset-backed securities (4%), commercial mortgage backed securities (0%), and CMOs (0%) as of December 30, 2021 (see page 20).  The Liquid Operating Portfolio declined 0.02% (after fees) in the fourth quarter, trailing the Citigroup 3-Month Treasury Bill Index’s return of 0.02% by four basis points. Over the trailing year, the fund gained 0.69%, which outpaced the benchmark by 11 basis points. Cordially, Alex Ford Vice President Table of Contents December 31, 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 14.7% 13.7% 11.4% 16.3% 12.1% 19.9% 27.4% 31.4% 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 20.9% 21.0% 38.5% 2.8% 18.4% 17.1% 20.0% 20.0% Source: S&P Dow Jones Indices U.S. EQUITY Record highs in 2020 The S&P 500 Index hit a record high in 4Q20. The Index was up 12.1% for the quarter, bringing the 2020 gain to 18.4%. –Since its March low, the S&P is up over 70%, with all sectors posting increases greater than 40%. –4Q winner: Energy (+28%), but down 34% for the year –Top 2020 sector: Technology with 44% gain (+12% in 4Q) –Pandemic has cast a pall over certain sectors while rewarding others: online retail soared 69% in 2020, while hotels/cruise lines, airlines, and retail REITs dropped ~30%. –Apple, Microsoft, Amazon, Facebook, and Alphabet made up 22% of S&P 500 market cap at year-end, and for 2020, accounted for 12.1% of 18.4% Index return. Anti-momentum rally –In 4Q, value outperformed growth across the cap spectrum driven by vaccine progress, political clarity, and further stimulus. For the year, however, value trails growth by a significant margin due to Tech’s outperformance. –Fueled by the prospect of an economic recovery, small cap outperformed large in 4Q but was even on the year. Small value was the best performer for the quarter, but 2020 gain is a mere 4.6%. –4Q experienced a shift in YTD 2020 trends, attributed to expectations of broader economic recovery from the vaccine roll-out and the presidential election outcome. –Cyclical sectors such as Energy, Financials, Industrials, and Materials outperformed during the quarter. –Although stocks with the highest P/E’s significantly outperformed for the year, the trend shifted after the vaccine announcement and stocks with zero earnings estimates or P/E’s less than 10 shot up. Capital Markets Overview December 31, 2020 Sources: FTSE Russell, S&P Dow Jones Indices S&P Sector Returns, Quarter Ended December 31, 2020 Last Quarter 13.8% 8.0%6.4% 27.8% 23.2% 8.0% 11.8% 15.7%14.5% 4.9%6.5% Services Communication Discretionary Consumer Staples Consumer Energy Financials Health Care Industrials Technology Information Materials Real Estate Utilities Capital Markets Overview (continued) December 31, 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 16.0% 14.7% 14.0% 17.0% 15.8% 18.6% 17.5% 15.2% 16.9% 20.1% 15.3% 19.7% 11.2% 11.2% 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 7.8% 16.3% 15.9% 10.7% 7.6% 14.2% 12.8% 10.9% -10.5% 6.6% 14.5% 18.3% 29.5% 1.4% Source: MSCI GLOBAL/GLOBAL EX-U.S. EQUITY Vaccine rollouts extend and expand risk-on rally –Prospects of global economic recovery propelled by COVID- 19 vaccination fueled double-digit returns broadly across developed and emerging markets. –Expectations of reverting back to normal economic activity by late 2021 enabled risk assets to thrive. –Emerging markets outperformed developed markets, led by Latam—specifically Brazil. –Small cap outperformed large as business confidence improved with news of vaccination. Market rotates to cyclicals –Positive outlook on reflation trade stoked Energy, Materials, and Financials to drive the market. –Beta and volatility led factor performance due to market rotation. U.S. dollar vs. other currencies –U.S. dollar continued to lose ground as appetite for risk increased with the expectation that a path to global economic recovery is on the horizon. Growth vs. value –Value topped growth as sentiment shifted to cyclical sectors. 4Q20 belonged to value; does it have staying power? –COVID-19 benefited value as the quarter brought news of successful vaccines. –Financials, Travel, and Energy rebounded –MSCI World Growth (+12.4%) trailed MSCI World Value (+15.2%) over the three-month period. –Even with this divergence of style in 4Q20, growth still outpaced value globally by over 35% for the full year. Potential tailwinds for value –Higher interest rates on the heels of potentially higher inflation with government stimulus and businesses reopening –Continued rebound of discretionary spending in areas neglected in 2020 as markets reopen: lodging, travel The good news –Recent dollar weakness supports emerging markets. –Could continue in 2021—wider U.S. fiscal deficit plus stronger emerging market currencies on the heels of higher growth 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 0.7% 1.3% 0.2% 0.5% 1.7% 3.6% 6.5% 1.6% 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 7.5% 7.6% 3.3% 6.4% 16.1% 2.8% 7.1% 11.0% 0% 1% 2% 3% 0 5 10 15 20 25 30 Maturity (Years) 12/31/20 09/30/20 12/31/19 U.S. Treasury Yield Curves U.S. FIXED INCOME Treasury yields rose –The 10-year U.S. Treasury yield closed 4Q20 at 0.93%, up 24 bps from 3Q20 but off from the year-end level of 1.92%. –TIPS outperformed nominal U.S. Treasuries as 10-year breakeven spreads widened from 163 bps to 199 bps. –No rate hikes are expected until at least 2023. Bloomberg Barclays Aggregate gained slightly –Corporate credit outperformed treasuries as investors continued to hunt for yield. –Corporate credit ended the year up 9.9% despite record issuance in 2020. High yield bonds gained on the quarter as rally extended –High yield bonds outperformed IG in 4Q, returning 6.5%, but trailed IG for the year. –Leveraged loans gained 3.8% as demand remained strong to finish the year. Munis boosted by favorable supply/demand dynamics –Municipals outperformed Treasuries for the quarter, but remained down for the year. –Tax-exempt issuance was muted amid strong demand. –Lower quality outperformed for the quarter; however, higher quality outperformed for the year. U.S. credit attractive to non-U.S. investors –Central banks globally are adopting a “lower for longer” mindset toward rates. –89% of positive yields globally are in the U.S., spurring demand for U.S. corporate credit. –Lower LIBOR rates have decreased currency hedging costs; combined with a steep Treasury curve, that makes U.S. credit attractive to non-U.S. investors. Implications of U.S. rates rising in 4Q –U.S. Treasury rates rose in 4Q, most notably in the intermediate and long portions of the yield curve. –As Democrats won both seats in the Georgia run-off, greater fiscal stimulus is likely. This may lead to further steepening of the yield curve and increased inflation expectations. –A rising rate environment opens opportunities for floating-rate securities like leveraged loans, and makes securities with shorter durations such as securitized credit more attractive. Capital Markets Overview (continued) December 31, 2020 Sources: Bloomberg, Bloomberg Barclays, Credit Suisse 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 3.3% 0.9% 7.7% 5.1% 5.8% 9.6% 7.7% 3.9% 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 9.2% 5.6% 7.0% 10.1% 5.3% 2.7% 4.0% 7.5% 23 bps -5 bps -3 bps 12 bps 1 bps -5 5 15 U.S. Treasury Germany U.K. Canada Japan 3Q20 to 4Q20 Change in 10-Year Global Government Bond Yields GLOBAL FIXED INCOME Global fixed income rose amid monetary backdrop –Low rates and asset purchase programs continued to prop up the global bond market. –Broad-based U.S. dollar weakness resulting from continued confidence in risk assets dampened hedged returns as the USD lost 4.27% versus the euro, 5.43% versus the British pound, and 2.02% versus the yen. Emerging market debt ended the year positive –Emerging market debt indices gained in 4Q20, finishing the year in positive territory amid a global search for yield and renewed growth expectations. –U.S. dollar-denominated index (EMBI Global Diversified) underperformed local currency emerging market debt as U.S. rates rose; returns were mixed across the 70+ constituents. –Local currency index (GBI-EM Global Diversified) was up significantly, with broad-based gains across constituents. Capital Markets Overview (continued) December 31, 2020 Sources: Bloomberg, Bloomberg Barclays, JP Morgan                     Active Management Overview     Market Overview Active Management vs Index Returns Market Overview The charts below illustrate the range of returns across managers in Callan’s Separate Account database over the most recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in returns across those asset classes. An appropriate index is also shown for each asset class for comparison purposes. As an example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter. The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the Large Cap Equity manager database. Range of Separate Account Manager Returns by Asset Class One Quarter Ended December 31, 2020 Re t u r n s (5%) 0% 5% 10% 15% 20% 25% 30% 35% 40% 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 (62) (24) (49) (88) (93) (57) 10th Percentile 19.33 35.17 22.50 1.73 9.87 2.92 25th Percentile 16.53 31.21 17.98 1.35 8.72 1.75 Median 13.06 28.49 16.00 1.11 6.80 1.25 75th Percentile 11.06 26.39 14.74 0.88 5.85 0.4290th Percentile 9.43 23.97 12.96 0.66 5.08 (0.07) Index 12.15 31.37 16.05 0.67 4.82 1.15 Range of Separate Account Manager Returns by Asset Class One Year Ended December 31, 2020 Re t u r n s (20%) (10%) 0% 10% 20% 30% 40% 50% 60% 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 (53)(40) (66)(94)(45) (37) 10th Percentile 42.13 52.59 27.42 10.07 13.38 5.19 25th Percentile 34.66 33.38 19.38 9.41 12.90 2.78Median 19.74 15.20 11.45 8.82 10.24 0.49 75th Percentile 4.48 4.97 5.85 8.30 9.17 (2.79) 90th Percentile 0.82 (0.54)1.78 7.83 1.70 (6.53) Index 18.40 19.96 7.82 7.51 10.78 1.60 7Orange County Sanitation District Domestic Fixed Income Active Management Overview U.S. Treasury yields rose steadily over the course of 4Q; the 10-year U.S. Treasury yield closed the quarter at 0.93%, up 24 basis points from Sept. 30, but off sharply from the year-end level of 1.92%. TIPS (Bloomberg Barclays US TIPS: +1.6%) strongly outperformed nominal U.S. Treasuries for the quarter as 10-year breakeven spreads widened from 163 bps to 199 bps. The Bloomberg Barclays US Aggregate Bond Index gained 0.7%, bringing its 2020 gain to 7.5%. Investment grade corporates strongly outperformed U.S. Treasuries for the quarter and the year (Bloomberg Barclays US Treasury: -0.8%; +8.0%; Bloomberg Barclays US Corporate: +3.0%; +9.9%) in spite of record 2020 issuance. High yield corporates (Bloomberg Barclays High Yield: +6.5%; +7.1%) outperformed investment grade for the quarter but trailed for the year. High yield default rates (6.2% y-o-y as of December) continued to trend higher but are expected to peak far below levels reached in the Global Financial Crisis. Separate Account Style Group Median Returns for Quarter Ended December 31, 2020 0% 1% 2% 3% 4% 5% 6% 7% 8% 0.50 Defensive 0.80 Intermed 1.11 Core Bond 2.06 Core Plus 2.16 Extended Maturity 3.36 Bank Loans 6.11 High Yield Re t u r n s Blmbg Aggregate: 0.67% Blmbg High Yield: 6.45% Blmbg Long Gov/Cred: 1.68% Separate Account Style Group Median Returns for One Year Ended December 31, 2020 0% 5% 10% 15% 20% 25% 3.98 Defensive 7.12 Intermed 8.82 Core Bond 9.16 Core Plus 17.55 Extended Maturity 2.67 Bank Loans 6.73 High Yield Re t u r n s Blmbg Aggregate: 7.51% Blmbg High Yield: 7.11% Blmbg Long Gov/Cred: 16.12% 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 December 31, 2020, with the distribution as of September 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 December 31, 2020 September 30, 2020 Market Value Weight Net New Inv. Inv. Return Market Value Weight Domestic Fixed Income Long Term Operating Fund* 657,618,803 74.45% 31,000,000 1,406,042 625,212,761 82.93% Liquid Operating Monies* 225,711,282 25.55% 97,000,000 26,228 128,685,054 17.07% Total Fund $883,330,085 100.0% $128,000,000 $1,432,270 $753,897,814 100.0% *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 December 31, 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 December 31, 2020 Last Last Last Last Last 3 5 7 Quarter Year Years Years Years Domestic Fixed Income Long Term Operating Fund^ 0.21% 4.42% 3.56% 2.68% 2.32% Chandler 0.21% 4.42% 3.56% 2.68% - Blmbg Govt/Cred 1-5 Year Idx 0.33% 4.71% 3.69% 2.77% 2.32% ML 1-5 Govt/Corp 0.37% 4.65% 3.69% 2.79% 2.36% Liquid Operating Monies^ 0.02% 0.84% 1.71% 1.30% 0.97% Chandler 0.02% 0.84% 1.71% 1.30% - Citigroup 3-Month Treasury Bill 0.02% 0.58% 1.56% 1.16% 0.84% Total Fund 0.16% 3.73% 3.23% 2.37% 2.05% Target* 0.30% 3.82% 3.27% 2.46% 2.05% * 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 December 31, 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 December 31, 2020 Last Last Last 10 15 25-1/4 Years Years Years Domestic Fixed Income Long Term Operating Fund^ 2.20% 3.25% 4.23% Blmbg Govt/Cred 1-5 Year Idx 2.19% 3.13% 4.09% ML 1-5 Govt/Corp 2.24% 3.16% 4.11% Liquid Operating Monies^ 0.73% 1.38% 2.50% Citigroup 3-Month Treasury Bill 0.60% 1.16% 2.21% Total Fund 1.92% 2.89% 3.95% Target*1.91% 2.76% 3.73% * Current Quarter Target = 80.0% ML:Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill. ^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO. 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. 2020 2019 2018 2017 2016 Domestic Fixed Income Long Term Operating Fund^ 4.42% 4.70% 1.60% 1.18% 1.58% Chandler 4.42% 4.70% 1.60% 1.18% 1.58% Blmbg Govt/Cred 1-5 Year Idx 4.71% 5.01% 1.38% 1.27% 1.56% ML 1-5 Govt/Corp 4.65% 5.08% 1.40% 1.28% 1.62% Liquid Operating Monies^ 0.84% 2.39% 1.90% 0.91% 0.47% Chandler 0.84% 2.39% 1.90% 0.91% 0.47% Citigroup 3-Month Treasury Bill 0.58% 2.25% 1.86% 0.84% 0.27% Total Fund 3.73% 4.26% 1.72% 1.02% 1.15% Target* 3.82% 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 FTSE 3 Mo T-Bill Total Fund Target ML:Corp/Gov 1-5 Yr Blmbg Gov/Cred 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     Long Term Operating Fund Period Ended December 31, 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 0.21% return for the quarter placing it in the 87 percentile of the Callan Short Term Fixed Income group for the quarter and in the 35 percentile for the last year. Long Term Operating Fund’s portfolio underperformed the ML:Corp/Gov 1-5 Yr by 0.15% for the quarter and underperformed the ML:Corp/Gov 1-5 Yr for the year by 0.23%. Quarterly Asset Growth Beginning Market Value $625,212,761 Net New Investment $31,000,000 Investment Gains/(Losses) $1,406,042 Ending Market Value $657,618,803 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 6 Years Last 7 Years Last 10 Years Last 25-1/4 Year Years B(70)A(87)(63) B(25)A(35)(26) B(25) A(35)(25) B(40)A(46)(38)B(37) A(50)(35)B(36) A(36)(35)A(41)B(42)(40) A(15)B(31)(25) 10th Percentile 1.15 5.11 4.01 3.26 2.94 2.79 2.81 4.39 25th Percentile 0.75 4.69 3.69 3.06 2.73 2.58 2.58 4.11 Median 0.50 3.98 3.32 2.65 2.37 2.21 2.10 3.87 75th Percentile 0.30 3.54 3.18 2.42 2.15 1.99 1.84 3.60 90th Percentile 0.18 2.42 2.65 2.13 1.90 1.73 1.40 3.04 Long Term Operating Fund A 0.21 4.42 3.56 2.68 2.38 2.32 2.20 4.23 Blmbg Govt/Cred 1-5 Year Idx B 0.33 4.71 3.69 2.77 2.47 2.32 2.19 4.09 ML:Corp/Gov 1-5 Yr 0.37 4.65 3.69 2.79 2.50 2.36 2.24 4.11 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% 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% Long Term Operating Fund ML:Corp/Gov 1-5 Yr Blmbg Govt/Cred 1-5 Year Idx 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% 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 B(25) A(35)26 B(20)A(34)19 A(65)B(87)87 B(58)A(65)57 A(49)B(50)47 B(35) A(63)24 A(4)B(17)10 B(90) A(100) 89 A(21) B(38)27 A(1) B(4)4 10th Percentile 5.11 5.47 2.00 2.23 2.82 1.17 1.50 1.20 4.46 2.7225th Percentile 4.69 4.92 1.82 1.74 2.17 1.01 1.27 0.80 2.60 2.30 Median 3.98 4.52 1.69 1.31 1.56 0.91 1.11 0.65 1.81 1.85 75th Percentile 3.54 4.10 1.54 0.95 1.18 0.76 0.87 0.40 1.45 1.65 90th Percentile 2.42 3.59 1.33 0.66 1.04 0.64 0.73 0.29 0.92 1.44 Long Term Operating Fund A 4.42 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 4.71 5.01 1.38 1.27 1.56 0.97 1.42 0.28 2.24 3.14 ML:Corp/Gov 1-5 Yr 4.65 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 (5%) (4%) (3%) (2%) (1%) 0% 1% 2% 3% 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 December 31, 2020 (1.5) (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 Alpha Sharpe Excess Return Ratio Ratio A(80) B(96) A(57)B(68) A(42)B(69) 10th Percentile 0.91 1.27 0.40 25th Percentile 0.68 1.14 0.14 Median 0.37 1.04 (0.15) 75th Percentile 0.16 0.85 (0.56) 90th Percentile 0.05 0.72 (0.79) Long Term Operating Fund A 0.14 1.01 (0.09) Blmbg Govt/Cred 1-5 Year Idx B (0.06)0.93 (0.36) 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 December 31, 2020 (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Average Effective Coupon OA Duration Life Yield Rate Convexity (10)(8)(33)(21) (84) (68) (47) (28) 10th Percentile 2.41 3.11 1.59 3.09 0.18 25th Percentile 1.99 2.65 0.93 2.62 0.08 Median 1.85 2.19 0.65 2.11 0.02 75th Percentile 1.68 1.87 0.43 1.70 (0.00) 90th Percentile 1.02 1.19 0.30 1.17 (0.27) Long Term Operating Fund 2.44 2.50 - 1.80 - ML:Corp/Gov 1-5 Yr 2.61 2.75 0.36 2.21 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 December 31, 2020 0%10%20%30%40%50%60%70%80% US Trsy 34.2 20.6 63.0 Gov Related 31.9 50 % Mg r M V 50 % Mg r M V 2.3 10.6 Corp (incl 144A) 21.1 52.6 26.4 Other 7.4 ABS 3.5 15.4 Cash 1.6 1.0 CMBS 0.1 2.5 CMOs 0.1 0.8 Tax-Exempt US Muni 0.1 RMBS 4.9 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 (10) (11) 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 December 31, 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 US Trsy 34% CMBS 0% Gov Related 32% CMOs 0% Corp (incl 144A) 21% Tax-Exempt US Muni 0% Other 7% Cash 2% ABS 4% 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 20.1 1.9 1-3 41.6 60.7 3-5 38.3 37.4 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: 2.44 2.61 Quality Distribution 0% 20% 40% 60% 80% 100% AAA 11.5 70.0 AA 69.9 4.3 A 12.7 12.3 BBB 0.9 13.4 BB B CCC CC C N/R 5.0 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 December 31, 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 (0.02)% return for the quarter placing it in the 96 percentile of the Callan Money Market Funds group for the quarter and in the 24 percentile for the last year. Liquid Operating Money Net’s portfolio underperformed the Citigroup 3-Month Treasury Bill by 0.04% for the quarter and outperformed the Citigroup 3-Month Treasury Bill for the year by 0.10%. Quarterly Asset Growth Beginning Market Value $128,685,054 Net New Investment $97,000,000 Investment Gains/(Losses) $26,228 Ending Market Value $225,711,282 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 6 Years Last 7 Years Last 10 Years Last 25-1/4 Year Years (96)(28) (24)(26) (26)(26) (27)(27) (26)(26)(26)(25) (23)(21) (12) (23) 10th Percentile 0.34 1.70 2.14 1.86 1.59 1.38 1.11 2.47 25th Percentile 0.03 0.62 1.59 1.18 0.98 0.83 0.55 2.19 Median 0.00 0.34 1.27 0.89 0.75 0.64 0.44 2.05 75th Percentile 0.00 0.26 1.13 0.77 0.64 0.55 0.38 1.93 90th Percentile 0.00 0.18 0.93 0.61 0.51 0.44 0.30 1.81 Liquid Operating Money Net (0.02)0.69 1.56 1.15 0.97 0.82 0.58 2.35 Citigroup 3-Month Treasury Bill 0.02 0.58 1.56 1.16 0.97 0.84 0.60 2.21 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% 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% 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2426 2827 2212 3530 3033 2236 9822 9820 4424 1315 10th Percentile 1.70 3.20 1.89 1.42 1.32 0.28 0.35 0.30 0.85 0.12 25th Percentile 0.62 2.32 1.72 0.91 0.40 0.06 0.03 0.04 0.06 0.04 Median 0.34 1.96 1.53 0.61 0.14 0.01 0.01 0.01 0.01 0.01 75th Percentile 0.26 1.76 1.30 0.42 0.04 0.01 0.01 0.01 0.01 0.0190th Percentile 0.18 1.50 1.04 0.23 0.01 0.00 0.00 0.00 0.00 0.00 Liquid Operating Money Net 0.69 2.24 1.75 0.76 0.32 0.07 (0.06) (0.02)0.02 0.09 Citigroup 3-Month Treasury Bill 0.58 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% 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 December 31, 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 (30)(26)(26) 10th Percentile 1.00 0.44 0.54 25th Percentile 0.01 (0.09) (0.08) Median (0.20) (0.60) (2.33) 75th Percentile (0.28) (0.89) (2.71) 90th Percentile (0.39) (1.40) (2.83) Liquid Operating Money Net (0.06) (0.10) (0.12) 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/research-library to see all of our publications, and www.callan. com/blog to view our blog. For more information contact Barb Gerraty at 415-274-3093 / institute@callan.com. New Research from Callan’s Experts Under the Hood of Alternative Beta: Hedge Fund Monitor, 3rd Quarter 2020 | In this quarter’s Hedge Fund Monitor, Jim McKee explains and analyzes the newly introduced set of alternative risk premia (ARP) indices from Bloomberg and Goldman Sachs Asset Management. This index suite can help institutional investors evalu- ate the performance of their strategies that use ARP solutions. A Primer on Green Building Certifications | This essay by real assets consultant Aaron Quach examines “green building certifica- tions,” which seek to establish standards for sustainability and are used to assess the performance of a building or other commercial real estate project. Real estate investment managers can reduce their carbon footprint by acquiring buildings that are green-certified, obtaining certifications for existing properties, or developing new properties that will be green-certified. Research Cafe: Private Equity | In this coffee break webinar session, private equity experts Pete Keliuotis and Ashley DeLuce used the results of our exclusive Private Equity Fees and Terms Study to provide actionable insights for institutional investors to help them negotiate with private equity managers. Blog Highlights Will Boring Still Be Beautiful? | A simple, “boring” glidepath beat a diversified one over the last 10 years. Will that continue? The Kids Are Alright | Private equity is doing quite well given the disruptions caused by the COVID-19 pandemic. DOL Issues Final Rule on Selecting Plan Investments | The Department of Labor (DOL) issued its final rule providing guidance to plan sponsors on the financial factors to consider when evaluating plan investments, a follow-up to its proposed environmental, social, and governance (ESG) rule released four months ago. In the final rule, the DOL modified the ESG rule, most notably removing references to ESG and instead focusing on pe- cuniary versus non-pecuniary factors. The Private Equity Playbook: Playing Offense | Investors should maintain strong oversight of the in-place private equity program, par- ticularly after periods of disruption. Macroeconomic Alphabet Soup: V, W, L, U, or K? | While certain sectors of the economy have rebounded more quickly than expect- ed, the trajectory of the recovery is still unclear. Quarterly Periodicals Private Equity Trends, 3Q20 | A high-level summary of private equity activity in the quarter through all the investment stages Active vs. Passive Charts, 3Q20 | A comparison of active man- agers alongside relevant benchmarks over the long term Market Pulse Flipbook, 3Q20 | A quarterly market reference guide covering trends in the U.S. economy, developments for insti- tutional investors, and the latest data on the capital markets Capital Markets Review, 3Q20 | Analysis and a broad overview of the economy and public and private market activity each quar- ter across a wide range of asset classes Hedge Fund Quarterly, 3Q20 | Commentary on developments for hedge funds and multi-asset class (MAC) strategies Real Assets Reporter, 3Q20 | In this quarter’s edition, Munir Iman provides analysis of the performance of real estate and other real assets in 3Q20. Education 4th Quarter 2020 Events Miss out on a Callan conference or workshop? Event summa- ries and speakers’ presentations are available on our website: callan.com/research-library Please mark your calendar and look forward to upcoming invitations: March Workshop—Virtual A Fresh Look at Fixed Income—Generating Yield in a Zero Interest Rate Environment March 25, 2021, at 9:00 am 2021 National Conference Summer 2021 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 April 13-15, 2021 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. Additional information including registration can be found at: callan.com/events/april-intro-college-virtual/ Introduction to Investments—In Person July 14-15, 2021, in San Francisco 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 designed for individuals with less than two years of experience with asset-management oversight and/or support responsibilities. Tuition is $2,350 per person and includes instruction, all materials, breakfast and lunch on each day, and dinner on the first evening with the instructors. Additional information including dates and registration can be found at: callan.com/events/july-intro-college/ 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 @CallanLLC Callan “Research is the foundation of all we do at Callan, and sharing our best thinking with the investment community is our way of helping to foster dialogue to raise the bar across the industry.” Greg Allen, CEO and Chief Research Officer                     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 CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending December 31, 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 December 31, 2020 1 SECTION ||||||||||||||Section 1 |Economic Update 2 Economic Update ƒ ƒ ƒ Recent economic data suggests that the economy has lost momentum as virus cases have risen. We anticipated that economicdatawould soften duringthe wintermonths, and believe the near-term outlookremains challengingas the labor market remains under pressure and many regions have renewed business restrictions due to the virus. However, the passage of a new $900 billionCOVID-19fiscal relief bill shouldhelpcushionthe economyoverthe nextfewmonths, andwe believe the incoming Presidential administration will have a keen focus on getting the economy back on track. We also remain very optimistic about progress on vaccines. A limited number of vaccine doses have already been distributed, and we expect more widespread distribution in the second and third quarter of 2021. We believe the distribution of vaccines and therapeutics will help fuel the economic recovery later this year. We also expect the Fed’s highly accommodative monetary policy framework will continue to provide support for the financial markets. The Federal Open Market Committee (FOMC) kept monetary policy unchanged at their December meeting as expected, with the fed funds targetrate in arange of 0.0% to0.25%. The Fed intends to remain highly accommodative until theirgoals of maximum employment and higher inflation are achieved. The Fed’s summary of economic projections continues to signal that the target fed funds rate will remain unchanged until at least 2023, as policymakers do not expect inflation to exceed 2.0% during that timeframe. Until the Fed has made substantial progress toward achieving their dual mandate of maximum employment and price stability, they have set a floor for monthly asset purchases of at least $80 billion per month of Treasuries and $40billion per month of agency mortgage-backed securities. Notably, the Fed's outlook for GDP over the next few years was revised higher and the outlook for unemployment was revised lower compared with their previousforecastsinSeptember,whichsuggestsincreasedoptimism.Nevertheless, the outlook remainsuncertain andFed Chair Powell indicated that the Fed would increase policy accommodation further if progress toward their dual mandate slows. In 2020, the yield on 2-year Treasuries was down 145 basis points to 0.12% and the yield on 10-year Treasuries was down about 100basis points to 0.91%. The yield curve steepened modestly in December and month-to-date the yield curve has continued to steepen, likely due in part to favorable developments on the vaccine front. Month-to-date, the yield on 2-year Treasuries is little changed but the yield on 10-year Treasuries is up about 20basis points. We believe the Treasury yield curve is poised to steepen modestly further in 2021 as the economy reopens,drivenby anincrease inlonger-term ratesas the front end of the curve is likely to remain anchored near 0.0%. 3 Source: US Department of Labor Source: US Department of Labor Employment U.S. nonfarm payrolls declined by 140,000 in December. It was the first monthlydecline in nonfarmpayrolls since April oflast yearand camein well below expectations for a 50,000gain. The monthly decline was ledby the leisure and hospitality sector which experienced a 498,000 net decline in payrolls in December, along with modest declines in government jobs and education and health services. The unemployment rate was unchanged in December at 6.7% and has improved significantly from the peak of 14.8% last April. Nevertheless, more than 10.7million people remainunemployed.Workerswhoclassifiedthemselves asemployed butabsent fromwork in December continued to understate the unemployment rate by about 0.6%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed parttime foreconomicreasons, remained high butdeclined to 11.7% in December from 12.0% in November. The labor participation rate was unchanged at 61.5% in December and remains well below pre-pandemic levels. -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 787 790 806 892 862 716 787 748 711 757 758 797 842 767 5,072 5,198 5,322 5,507 5,781 5,527 6,089 6,370 6,798 7,222 7,823 8,472 9,398 - 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 October 02, 2020 -January 01, 2021 In the most recent week, the number of initial jobless claims decreased to 787,000 compared to 790,000 in the prior week. The level of continuing unemployment claims (where the data is lagged by one week) decreasedto about5.1millionfrom roughly5.2millionin the prior week. Although jobless claims have declined from the early stage of the pandemic, they have remained well above the 2019 average of 1.7 million. Given the resurgence of the virus and renewed lockdown measures,we believe the labor market is likely to remain under pressure over the near term. Source: US Department of Labor 5 Source: US Department of Labor Source: US Department of Commerce Inflation The Consumer Price Index (CPI) was up 1.2% year-over-year in November, unchanged from October. Core CPI (CPI less food and energy) was up 1.6% year-over-yearin November, also unchanged fromOctober. The Personal Consumption Expenditures (PCE) index was up 1.1% year-over- yearinNovember,versusup1.2%year-over-yearin October.Core PCE,which is the Fed's primary inflation gauge, was up 1.4% year-over-year in November, unchanged from October. Inflation remains below the Fed's 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 Consumer spending trends softened in November. On a year-over-year basis, retail sales were up 4.1% in November versus 5.5% in October. Onamonth-over-monthbasis,retail salesdeclined1.1%inNovember, with broad-based declines in many categories on a seasonally adjusted basis. Excluding vehicles and gas, retail sales fell 0.8% in November, following a 0.1% decline in October. Notably, retail sales makes up roughly one third of the personal consumption expenditures component of US gross domestic product (GDP), while services revenue comprises roughly two thirds. Spending on services has been hit particularly hard by the pandemic and lagged the pick-up in overall third quarter GDP. While retail sales remain higher on a year-over-year basis, we believe this has been partially boosted by the contraction in spending on services. The Consumer Confidence index declinedto 88.6in Decemberfrom 92.9in November. The index is well below pre-pandemiclevels 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 0.6% in November (following a 0.8% increase in October) butremained down 2.2% year-over-year. According to the Conference Board, a decelerating pace of improvement in the LEI in recent months suggests that economic growth has moderated heading into 2021. Furthermore, the Conference Board warns of potential downside risks to economic growth from a second wave of the virus and high unemployment. The Chicago Fed National Activity Index (CFNAI) declined to 0.27 in November from 1.01 in October. On a3-month moving average basis, the CFNAI declined to 0.56in Novemberfrom 0.85in October. The index slipped on a one month and 3-month basis, but a positive index reading corresponds to above trend growth. -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 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% S&P/Case-Shiller 20 City Composite Home Price Index YO Y ( % ) C h a n g e Total housingstarts increased 1.2% in Novemberto an annual pace of 1,547,000. Single family starts inched up 0.4% to a very strong annualized rate of 1,186,000, while multi-family starts increased 4.0% to an annualized rate of 361,000. On a year-over-year basis, total housing starts were up12.8%inNovember,drivenbygrowthinsingle-familystarts.Meanwhile, permits were up 6.2% on a month-over-month basis in November, to an annualized rate of 1,639,000 (the strongest rate since 2006). According to the Case-Shiller 20-Cityhome price index, home prices were up 7.9% year-over-year in October versus up 6.6% year-over-year in September. The housing market has been an area of strength 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. 9 Source: Institute for Supply Management Source: Federal Reserve Manufacturing The Institute for Supply Management (ISM) manufacturing index increased to 60.7 in December from 57.5 in November. Readings above 50.0 are indicative of expansion in the manufacturing sector. We believe aweakeningUS dollarhas been supportive of the US manufacturing sector throughout the pandemic. The Industrial Production index was down 5.5% year-over-year in November, versus down 5.0% in October. On a month-over-month basis, the Industrial Production index increased 0.4%in November, following a 0.9% increase in October. Capacity Utilization increased to 73.3% in November from 73.0% in October, but remains well below the long-run average of 79.8%. Overall manufacturing conditions have improved since the deep contraction in activity earlier this year, but industrial production remains lower on a year-over-year basis. 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 12/19 3/20 6/20 9/20 1.1% -4.8% -24.0% 25.4% -0.6% -1.6% -8.8% 12.0% 1.5% 1.1% 0.6% -3.2% 0.3% 0.1% 1.2% -0.4% 0.2% 0.1% -0.4% -0.4% 2.4% -5.0% -31.4% 33.4% 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 -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Gross Domestic Product (GDP) Accordingtothe thirdestimate,real USgrossdomesticproduct(GDP) grew at an annualized rate of 33.4% in the third quarter(up slightly from the advance and second estimates), following a 31.4% annualized decline in the second quarter. Third quarter GDP growth was by far the largest annualized gain on record but followed the largest annualized decline in GDP on record in the second quarter. Personal consumption expenditures rebounded in the third quarter and was by far the biggest contributor to third quarter GDP growth. The consensus estimate for fourth quarter 2020 GDP growth is 4.6%. The consensus forecast for US gross domestic product growth in 2021 is 4.0%, following an expected 3.5% decline in 2020. 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 marketfunctioning. Earlierthis year, policymakers reinstated the Commercial Paper FundingFacility andMoney MarketMutual FundLiquidity Facility.The Fedalso establishedthe PrimaryMarket Corporate Credit Facility,Secondary MarketCorporate CreditFacility, TermAsset-Backed Securities Loan Facility, Paycheck Protection Program Liquidity Facility, Main Street Lending Facility, and Municipal Liquidity Facility. The Fed has also provided short-term funding through large-scale repo operations and lowered the reserve requirement for depository institutions. Notably, many of the Fed's lending facilities are set to expire at the end of this year, including the Fed’s corporate credit, asset-backed securities, municipal lending, and Main StreetLendingprograms. The Fed will return the unused funds currently earmarked for those facilities to the Treasury. 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 8,000,000 Federal Reserve Balance Sheet Assets In $ m i l l i o n s 12 Paycheck Protection Program Small Business Farmers/Ranchers Payments to Individuals, Unemployment Assistance K-12 Schools, Higher Education Vaccine Purchases, Distribution, Testing Rental Assistance Food Stamps/Nutrition Childcare Sector Airlines, Mass Transit, Hwys, Airports, Amtrak Clean Energy Broadband Business $337 Billion (37%) Individuals $286 Billion (32%) $284 billion $40 Billion $13 Billion $286 Billion $82 Billion $68 Billion $25 Billion $13 Billion $10 Billion $45 Billion $35 Billion $7 Billion Phase 4 Fiscal Stimulus $908 Billion Schools $82 Billion (9%) Vaccination $68 Billion (7%) Safety Net $48 Billion (5%) Transportation $45 Billion (5%) Other $42 Billion (5%) $3.6 Trillion Stimulus And Counting Source: U.S. Congress Fiscal Package Amount CARES Act $2.23 Trillion Coronavirus Relief Bill $484 Billion Phase 4 Stimulus $908 Billion Total So Far $3.6 Trillion 13 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 Dec-20 Sep-20 Dec-19 Yi e l d ( % ) Bond Yields Treasury yields were much lower on a year-over-year basis at 2020 year-end. The 3-month T-bill yield was down 149 basis points, the 2-year Treasury yield was down 145 basis points, and the 10-Year Treasury yield was down 100 basis 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. 14 Section 2|SECTION ||||||||||||||Section 2 |Account Profile 15 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 December 31, 2020 16 Compliance As of December 31, 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. 17 Portfolio Characteristics Orange County Sanitation District Long Term 12/31/2020 9/30/2020 Benchmark* Portfolio Portfolio Average Maturity (yrs)2.68 2.62 2.74 Average Modified Duration 2.59 2.44 2.52 Average Purchase Yield n/a 1.78% 1.97% Average Market Yield 0.26% 0.22% 0.26% Average Quality**AAA AA+/Aa1 AA/Aa1 Total Market Value 657,628,543 625,217,609 *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’srespectively. Multiple securities were purchased across the Treasury, Agency, Supranational, Certificate of Deposit and Corporate sectors of the allocation. The purchased securities ranged in maturity from February 2021 to December 2025. Two securities were sold, several matured, and $31 million was contributed into the portfolio to facilitate the new holdings. As of December 31, 2020 18 Orange County Sanitation District Long Term Sector Distribution ABS 3.5% Agency 31.9% CMO 0.1% Corporate 21.1% Money Market Fund FI 1.6% Mortgage Pass Thru 0.1% Municipal Bonds 0.1% Supranational 6.7% US Treasury 34.2% Negotiable CD 0.8% December 31, 2020 September 30, 2020 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% As of December 31, 2020 The sector allocation was relatively stable. The Supranational exposure increased due to the Chandler team participating in a new issue deal in the sector while the ABS allocation contracted due to the pay down of principal and interest during the quarter. 19 Issue Name Investment Type % Portfolio Government of United States US Treasury 34.18% Federal National Mortgage Association Agency 14.35% Federal Home Loan Bank Agency 8.72% Federal Home Loan Mortgage Corp Agency 6.68% Intl Bank Recon and Development Supranational 3.58% Inter-American Dev Bank Supranational 2.26% Federal Farm Credit Bank Agency 2.16% First American Govt Obligation Fund Class-Z Money Market Fund FI 1.58% US Bancorp Corporate 1.50% Chubb Corporation Corporate 1.32% Toronto Dominion Holdings Corporate 1.32% Royal Bank of Canada Corporate 1.30% JP Morgan Chase & Co Corporate 1.22% Apple Inc Corporate 1.11% Bank of America Corp Corporate 1.10% Charles Schwab Corp/The Corporate 1.09% Honda ABS ABS 1.07% Berkshire Hathaway Corporate 1.04% Nissan ABS ABS 0.99% PNC Financial Services Group Corporate 0.98% ChevronTexaco Corp Corporate 0.95% IBM Corp Corporate 0.92% International Finance Corp Supranational 0.84% Intel Corp Corporate 0.82% Bank of New York Corporate 0.80% Honeywell Corp Corporate 0.79% Bank of Nova Scotia Houston Negotiable CD 0.76% John Deere ABS ABS 0.68% Honda Motor Corporation Corporate 0.67% Wal-Mart Stores Corporate 0.63% General Dynamics Corp Corporate 0.49% Wells Fargo Corp Corporate 0.48% Microsoft Corporate 0.47% Oracle Corp Corporate 0.46% Exxon Mobil Corp Corporate 0.46% Toyota ABS ABS 0.45% Morgan Stanley Corporate 0.45% Merck & Company Corporate 0.32% Issuers Orange County Sanitation District Long Term – Account #10268 As of December 31, 2020 20 Issue Name Investment Type % Portfolio Mercedes-Benz Auto Lease Trust ABS 0.32% Deere & Company Corporate 0.21% BlackRock Inc/New York Corporate 0.17% Federal Home Loan Mortgage Corp CMO 0.10% Federal National Mortgage Association Mortgage Pass Thru 0.09% University of California Municipal Bonds 0.06% Federal National Mortgage Association CMO 0.02% AMRESCO Residental Securities Corp CMO 0.02% GNMA Mortgage Pass Thru 0.01% 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 December 31, 2020 21 AAA AA A <A NR 12/31/20 11.5% 69.9% 12.7% 0.9% 5.0% 09/30/20 7.9% 72.5% 13.0% 1.0% 5.7% Source: S&P Ratings December 31, 2020 vs. September 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 12/31/2020 9/30/2020 Quality Distribution Orange County Sanitation District Long Term As of December 31, 2020 22 AAA AA A <A NR 12/31/20 78.7% 5.7% 14.9% 0.0% 0.6% 09/30/20 77.5% 6.3% 15.3% 0.0% 0.9% Source: Moody’s Ratings December 31, 2020 vs. September 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 12/31/2020 9/30/2020 Quality Distribution Orange County Sanitation District Long Term As of December 31, 2020 23 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 December 31, 2020 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 10.0% 3.4% 6.7% 19.4% 22.2% 22.4% 15.9% 0.0% Benchmark* 0.3% 0.2% 1.8% 32.9% 28.8% 20.1% 16.0% 0.0% *ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index Duration Distribution Orange County Sanitation District Long Term As of December 31, 2020 The duration of the portfolio contracted to 2.44 compared to 2.52 at the end of the prior quarter. The large cash contribution late in the year contributed to the shortening of the duration of the portfolio. The Chandler team will be working to keep the duration close to the benchmark duration in coming quarters. 24 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 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 0.21% 4.39% 4.52% 3.51%2.62% N/A 2.26% ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index 0.15% 4.43% 4.52% 3.50% 2.56% N/A 2.22% 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 endingvalue;it includesinterestearnings,realizedand unrealizedgains and losses inthe portfolio. Investment Performance Orange County Sanitation District Long Term As of December 31, 2020 25 Compliance As of December 31, 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 26 Portfolio Characteristics Orange County Sanitation District Liquid 12/31/2020 9/30/2020 Benchmark* Portfolio Portfolio Average Maturity (yrs)0.16 0.33 0.32 Average Modified Duration 0.15 0.33 0.32 Average Purchase Yield n/a 0.13% 0.17% Average Market Yield 0.07% 0.14% 0.17% Average Quality**AAA AAA/Aaa AAA/Aaa Total Market Value 225,705,362 128,667,549 *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’srespectively. Many securities were purchase across the Treasury, Agency, and Certificate of Deposit sectors to keep the portfolio positioned consistent with the strategy and to spend down the $97 million contribution late in December. The purchased securities ranged in maturity between January 2021 to July 2021. Multiple securities also matured during the quarter. As of December 31, 2020 27 Orange County Sanitation District Liquid Sector Distribution Agency 8.6% Corporate 3.2% Money Market Fund FI 4.7% Negotiable CD 1.8% Supranational 0.4% US Treasury 81.2% December 31, 2020 September 30, 2020 Agency 10.0% Corporate 7.4% Money Market Fund FI 2.3% Negotiable CD 1.2% Supranational 0.8% US Treasury 77.3% Commercial Paper 1.2% As of December 31, 2020 The sector allocation was relatively stable. The Treasury allocation increased to 81.2% of the portfolio due to the large contribution late in the year when liquidity in other investment vehicles was lacking. 28 Issue Name Investment Type % Portfolio Government of United States US Treasury 81.24% Federal Home Loan Bank Agency 8.64% First American Govt Obligation Fund Class-Z Money Market Fund FI 4.70% MUFG Bank Ltd/NY Negotiable CD 1.11% Toronto Dominion Holdings Corporate 0.78% Toyota Motor Corp Corporate 0.67% Royal Bank of Canada Negotiable CD 0.67% Charles Schwab Corp/The Corporate 0.62% Apple Inc Corporate 0.52% Intl Bank Recon and Development Supranational 0.45% Kimberly-Clark Corporate 0.34% Paccar Financial Corporate 0.27% TOTAL 100.00% Issuers Orange County Sanitation District Liquid – Account #10282 As of December 31, 2020 29 AAA AA A <A NR 12/31/20 44.7% 53.4% 1.9% 0.0% 0.0% 09/30/20 83.9% 11.4% 4.7% 0.0% 0.0% Source: S&P Ratings December 31, 2020 vs. September 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 12/31/2020 9/30/2020 Quality Distribution Orange County Sanitation District Liquid As of December 31, 2020 30 AAA AA A <A NR 12/31/20 96.8% 1.3% 1.9% 0.0% 0.0% 09/30/20 92.6% 2.7% 4.7% 0.0% 0.0% Source: Moody’s Ratings December 31, 2020 vs. September 30, 2020 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% AAA AA A <A NR 12/31/2020 9/30/2020 Quality Distribution Orange County Sanitation District Liquid As of December 31, 2020 31 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 December 31, 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 45.6% 27.4% 26.9% 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 December 31, 2020 The duration of the portfolio was stable ending the quarter at 0.33 compared to 0.32 at the end of September. 32 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 12 months 2 years 3 years 5 years 10 years Since Inception Orange County Sanitation District Liquid ICE BAML 3-Month US Treasury Bill Index 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 0.03% 0.87% 1.64% 1.73% 1.31% N/A 1.12% ICE BAML 3-Month US Treasury Bill Index 0.03% 0.67% 1.47% 1.60% 1.20% N/A 0.99% 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 endingvalue;it includesinterestearnings,realizedand unrealizedgains and losses inthe portfolio. Investment Performance Orange County Sanitation District Liquid As of December 31, 2020 33 Compliance As of December 31, 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 OC^E 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. 34 Portfolio Characteristics OC^E Lehman Exposure 12/31/2020 Portfolio 9/30/2020 Portfolio Average Maturity (yrs)11.80 12.32 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 54,741 56,821 *Portfolio is S&P and Moody’s, respectively. As of December 31, 2020 35 SECTION ||||||||||||||Section 3 |Consolidated Information 36 Portfolio Characteristics Orange County Sanitation District Consolidated 12/31/2020 9/30/2020 Portfolio Portfolio Average Maturity (yrs)2.03 2.33 Modified Duration 1.90 2.15 Average Purchase Yield 1.35% 1.65% Average Market Yield 0.20% 0.24% Average Quality*AA+/Aa1 AA+/Aa1 Total Market Value 883,388,646 753,941,979 * Portfolio is S&P and Moody’s respectively. As of December 31, 2020 37 Orange County Sanitation District Consolidated Sector Distribution ABS 2.6% Agency 26.0% CMO 0.1% Corporate 16.5% Money Market Fund FI 2.4% Mortgage Pass Thru 0.1% Negotiable CD 1.0% Supranational 5.1% US Treasury 46.2% December 31, 2020 September 30, 2020 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% As of December 31, 2020 38 SECTION ||||||||||||||Section 4 |Portfolio Holdings 39 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue 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 2,984.86 100.44 3.57% 2,998.01 63.08 0.00% 13.15 Aaa / AA+ AAA 0.16 0.17 43815NAB0 Honda Auto Receivables Trust 2019-3 A2 1.900% Due 04/15/2022 1,347,348.38 08/20/2019 1.92% 1,347,254.07 1,347,331.95 100.36 0.32% 1,352,166.83 1,137.76 0.21% 4,834.88 Aaa / AAA NR 1.29 0.23 47788CAC6 John Deere Owner Trust 2018-A A3 2.660% Due 04/18/2022 165,799.57 02/21/2018 2.68% 165,787.65 165,795.84 100.25 0.44% 166,215.73 196.01 0.03% 419.89 Aaa / NR AAA 1.30 0.12 477870AB5 John Deere Owner Trust 2019-B A2 2.280% Due 05/16/2022 646,522.38 07/16/2019 2.29% 646,519.92 646,521.18 100.20 0.30% 647,835.58 655.14 0.10% 1,314.40 Aaa / NR AAA 1.37 0.11 43814UAG4 Honda Auto Receivables Trust 2018-2 A3 3.010% Due 05/18/2022 631,002.32 05/22/2018 3.03% 630,988.57 630,997.56 100.83 0.33% 636,262.99 685.86 0.10% 5,265.43 NR / AAA AAA 1.38 0.31 43815HAC1 Honda Auto Receivables Trust 2018-3 A3 2.950% Due 08/22/2022 1,791,651.38 08/21/2018 2.98% 1,791,405.57 1,791,550.35 101.18 0.17% 1,812,873.53 1,468.16 0.28% 21,323.18 Aaa / NR AAA 1.64 0.43 47788EAC2 John Deere Owner Trust 2018-B A3 3.080% Due 11/15/2022 2,145,869.81 07/18/2018 3.10% 2,145,707.16 2,145,799.23 101.01 0.20% 2,167,631.05 2,937.46 0.33% 21,831.82 Aaa / NR AAA 1.87 0.35 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 2,049,816.70 101.40 0.26% 2,078,640.55 1,676.44 0.32% 28,823.85 Aaa / AAA NR 1.96 0.88 65479GAD1 Nissan Auto Receivables Trust 2018-B A3 3.060% Due 03/15/2023 2,222,777.01 07/17/2018 3.08% 2,222,705.00 2,222,754.32 101.37 0.42% 2,253,306.85 3,022.98 0.34% 30,552.53 Aaa / AAA NR 2.20 0.52 78445JAA5 SLM Student Loan Trust 2008-9 A 1.716% Due 04/25/2023 10,816.03 08/22/2008 1.78% 10,772.14 10,809.11 99.95 1.51% 10,810.95 35.07 0.00% 1.84 Baa3 / B B 2.32 2.53 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 4,184,834.82 102.04 0.43% 4,270,353.08 3,589.80 0.65% 85,518.26 Aaa / AAA NR 3.54 1.35 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 2,959,795.45 100.35 0.23% 2,970,383.68 578.84 0.45% 10,588.23 Aaa / AAA NR 3.79 1.66 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 3,234,563.79 100.17 0.29% 3,240,470.39 432.23 0.49% 5,906.60 NR / AAA AAA 3.80 2.01 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 1,479,803.35 100.32 0.34% 1,484,758.20 335.47 0.23% 4,954.85 Aaa / NR AAA 3.88 1.87 TOTAL ABS 22,874,771.74 1.78% 22,872,705.09 22,873,358.51 0.31% 23,094,707.42 16,814.30 3.51% 221,348.91 Aaa / AAA Aaa 2.78 1.09 Agency 3137EAEL9 FHLMC Note 2.375% Due 02/16/2021 7,500,000.00 02/26/2018 2.45% 7,484,475.00 7,499,341.80 100.27 0.23% 7,520,085.00 66,796.88 1.15% 20,743.20 Aaa / AA+ AAA 0.13 0.12 As of December 31, 2020 40 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 3130A7CV5 FHLB Note 1.375% Due 02/18/2021 5,365,000.00 02/17/2016 1.46% 5,343,325.40 5,364,430.55 100.16 0.18% 5,373,385.50 27,253.45 0.82% 8,954.95 Aaa / AA+ AAA 0.13 0.13 3135G0J20 FNMA Note 1.375% Due 02/26/2021 10,000,000.00 Various 1.28% 10,040,950.00 10,001,368.42 100.18 0.17% 10,018,430.00 47,743.06 1.53% 17,061.58 Aaa / AA+ AAA 0.16 0.15 313379RB7 FHLB Note 1.875% Due 06/11/2021 4,000,000.00 08/30/2017 1.67% 4,030,160.00 4,003,518.67 100.75 0.18% 4,030,096.00 4,166.67 0.61% 26,577.33 Aaa / AA+ AAA 0.44 0.44 3135G0U35 FNMA Note 2.750% Due 06/22/2021 7,500,000.00 06/28/2018 2.68% 7,515,225.00 7,502,404.68 101.24 0.14% 7,592,992.50 5,156.25 1.16% 90,587.82 Aaa / AA+ AAA 0.47 0.47 3135G0S38 FNMA Note 2.000% Due 01/05/2022 3,000,000.00 01/30/2017 2.04% 2,994,570.00 2,998,886.85 101.90 0.12% 3,057,090.00 29,333.33 0.47% 58,203.15 Aaa / AA+ AAA 1.01 1.00 3135G0T45 FNMA Note 1.875% Due 04/05/2022 5,000,000.00 05/05/2017 1.99% 4,972,500.00 4,992,960.12 102.21 0.12% 5,110,500.00 22,395.83 0.78% 117,539.88 Aaa / AA+ AAA 1.26 1.25 3133ELYR9 FFCB Note 0.250% Due 05/06/2022 8,850,000.00 04/30/2020 0.31% 8,838,760.50 8,842,455.68 100.19 0.11% 8,866,806.15 3,380.21 1.35% 24,350.47 Aaa / AA+ AAA 1.35 1.34 3135G0T94 FNMA Note 2.375% Due 01/19/2023 5,000,000.00 Various 2.78% 4,910,990.00 4,961,793.02 104.58 0.14% 5,229,005.00 53,437.50 0.80% 267,211.98 Aaa / AA+ AAA 2.05 1.99 313383QR5 FHLB Note 3.250% Due 06/09/2023 5,000,000.00 08/28/2018 2.87% 5,083,350.00 5,042,463.12 107.40 0.21% 5,370,180.00 9,930.56 0.82% 327,716.88 Aaa / AA+ NR 2.44 2.36 3137EAEN5 FHLMC Note 2.750% Due 06/19/2023 10,000,000.00 Various 2.84% 9,956,500.00 9,978,321.37 106.32 0.18% 10,631,710.00 9,166.66 1.62% 653,388.63 Aaa / AA+ AAA 2.47 2.40 3135G05G4 FNMA Note 0.250% Due 07/10/2023 6,775,000.00 07/08/2020 0.32% 6,760,433.75 6,762,761.69 100.24 0.16% 6,791,178.70 8,045.31 1.03% 28,417.01 Aaa / AA+ AAA 2.52 2.51 313383YJ4 FHLB Note 3.375% Due 09/08/2023 10,000,000.00 Various 2.88% 10,211,831.00 10,122,165.60 108.55 0.18% 10,855,290.01 105,937.50 1.67% 733,124.41 Aaa / AA+ NR 2.69 2.57 3130A0F70 FHLB Note 3.375% Due 12/08/2023 10,000,000.00 Various 2.79% 10,269,043.75 10,159,905.73 109.25 0.21% 10,925,240.00 21,562.51 1.66% 765,334.27 Aaa / AA+ AAA 2.94 2.82 3135G0V34 FNMA Note 2.500% Due 02/05/2024 5,000,000.00 02/27/2019 2.58% 4,980,850.00 4,987,998.06 107.11 0.20% 5,355,320.00 50,694.44 0.82% 367,321.94 Aaa / AA+ AAA 3.10 2.97 3130A1XJ2 FHLB Note 2.875% Due 06/14/2024 11,110,000.00 Various 1.96% 11,589,031.30 11,441,087.13 109.16 0.21% 12,127,353.81 15,083.37 1.85% 686,266.68 Aaa / AA+ NR 3.45 3.31 3133EKWV4 FFCB Note 1.850% Due 07/26/2024 5,000,000.00 08/13/2019 1.65% 5,048,280.00 5,034,768.01 105.60 0.27% 5,279,820.00 39,826.39 0.81% 245,051.99 Aaa / AA+ AAA 3.57 3.44 3130A2UW4 FHLB Note 2.875% Due 09/13/2024 2,500,000.00 09/12/2019 1.73% 2,635,950.00 2,600,530.08 109.67 0.25% 2,741,707.50 21,562.50 0.42% 141,177.42 Aaa / AA+ AAA 3.70 3.51 3135G0X24 FNMA Note 1.625% Due 01/07/2025 10,000,000.00 Various 1.28% 10,157,936.40 10,132,949.01 105.38 0.28% 10,537,680.00 78,541.66 1.61% 404,730.99 Aaa / AA+ AAA 4.02 3.87 As of December 31, 2020 41 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 3137EAEP0 FHLMC Note 1.500% Due 02/12/2025 12,335,000.00 Various 1.20% 12,510,182.05 12,480,916.33 104.90 0.30% 12,939,760.38 71,440.21 1.98% 458,844.05 Aaa / NR AAA 4.12 3.98 3130A4CH3 FHLB Note 2.375% Due 03/14/2025 5,225,000.00 03/19/2020 1.18% 5,526,848.25 5,479,249.10 108.27 0.39% 5,657,091.83 36,883.42 0.87% 177,842.73 Aaa / AA+ AAA 4.20 4.00 3135G03U5 FNMA Note 0.625% Due 04/22/2025 14,000,000.00 Various 0.63% 13,996,711.60 13,997,200.98 101.18 0.35% 14,164,570.00 16,770.84 2.16% 167,369.02 Aaa / AA+ AAA 4.31 4.25 3135G04Z3 FNMA Note 0.500% Due 06/17/2025 9,905,000.00 06/17/2020 0.54% 9,884,496.65 9,886,699.86 100.53 0.38% 9,957,546.03 1,925.97 1.51% 70,846.17 Aaa / AA+ AAA 4.46 4.41 3137EAEU9 FHLMC Note 0.375% Due 07/21/2025 5,030,000.00 07/21/2020 0.48% 5,004,950.60 5,007,175.38 100.05 0.36% 5,032,655.84 8,278.54 0.77% 25,480.46 Aaa / AA+ AAA 4.56 4.51 3135G05X7 FNMA Note 0.375% Due 08/25/2025 7,945,000.00 08/25/2020 0.47% 7,907,817.40 7,910,406.32 99.98 0.38% 7,943,260.05 10,262.29 1.21% 32,853.73 Aaa / AA+ AAA 4.65 4.60 3137EAEX3 FHLMC Note 0.375% Due 09/23/2025 7,660,000.00 09/23/2020 0.44% 7,636,943.40 7,638,182.19 99.83 0.41% 7,647,253.76 7,660.00 1.16% 9,071.57 Aaa / AA+ AAA 4.73 4.68 3135G06G3 FNMA Note 0.500% Due 11/07/2025 8,255,000.00 11/09/2020 0.57% 8,225,447.10 8,226,258.55 100.42 0.41% 8,289,530.67 5,617.99 1.26% 63,272.12 Aaa / AA+ AAA 4.85 4.78 TOTAL Agency 201,955,000.00 1.56% 203,517,559.15 203,056,198.30 0.25% 209,045,538.73 778,853.34 31.91% 5,989,340.43 Aaa / AA+ Aaa 2.90 2.83 CMO 03215PFN4 AMRESCO Residential Securities 1999-1 A 1.095% Due 06/25/2029 119,021.64 05/20/2011 4.56% 89,377.81 105,126.23 96.12 1.73% 114,400.03 25.34 0.02% 9,273.80 NR / A+ BBB 8.49 6.94 3133TCE95 FHLMC FSPC E3 A 3.903% Due 08/15/2032 4,473.70 03/11/1998 3.86% 4,478.39 4,475.29 101.13 1.98% 4,524.42 14.55 0.00% 49.13 Aaa / AA+ AAA 11.63 2.60 31397QRE0 FNMA FNR 2011-3 FA 0.835% Due 02/25/2041 135,973.22 12/20/2010 0.83% 135,930.74 135,944.76 101.50 0.39% 138,007.38 18.92 0.02% 2,062.62 Aaa / AA+ AAA 20.17 3.47 31394JY35 FHLMC FSPC T-58 2A 6.500% Due 09/25/2043 561,133.95 06/09/2011 5.40% 635,484.20 613,483.69 118.24 1.81% 663,473.56 607.90 0.10% 49,989.87 Aaa / AA+ AAA 22.75 3.86 TOTAL CMO 820,602.51 4.60% 865,271.14 859,029.97 1.59% 920,405.39 666.71 0.14% 61,375.42 Aaa / AA+ Aaa 20.53 4.18 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 4,000,656.77 100.12 0.29% 4,004,748.00 32,000.00 0.61% 4,091.23 Aa1 / AA+ NR 0.15 0.06 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 3,000,291.65 100.14 0.48% 3,004,302.00 22,220.00 0.46% 4,010.35 Aa1 / AA NR 0.16 0.09 As of December 31, 2020 42 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 369550BE7 General Dynamics Corp Note 3.000% Due 05/11/2021 3,160,000.00 05/08/2018 3.24% 3,138,038.00 3,157,395.02 100.96 0.33% 3,190,440.28 13,166.67 0.49% 33,045.26 A2 / A NR 0.36 0.36 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 2,498,911.53 100.54 0.21% 2,513,620.00 6,562.50 0.38% 14,708.47 Aa2 / AA NR 0.37 0.29 61747WAL3 Morgan Stanley Note 5.500% Due 07/28/2021 2,800,000.00 06/06/2014 3.24% 3,200,848.00 2,832,018.58 102.94 0.38% 2,882,331.20 65,450.00 0.45% 50,312.62 A2 / BBB+ A 0.57 0.56 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 3,044,566.46 100.69 0.22% 3,065,946.56 18,747.89 0.47% 21,380.10 Aaa / AAA AA+ 0.60 0.52 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 2,976,410.29 101.01 0.28% 3,030,210.00 16,783.33 0.46% 53,799.71 A3 / A A- 0.71 0.62 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 2,500,928.02 102.37 0.26% 2,559,257.50 26,000.00 0.39% 58,329.48 A1 / A AA- 1.10 1.00 69353RFB9 PNC Bank Callable Note Cont 1/18/2022 2.625% Due 02/17/2022 1,000,000.00 03/26/2018 3.32% 974,940.00 992,739.30 102.43 0.30% 1,024,297.00 9,770.83 0.16% 31,557.70 A2 / A A+ 1.13 1.03 084664BT7 Berkshire Hathaway Note 3.000% Due 05/15/2022 4,000,000.00 05/23/2017 2.30% 4,131,120.00 4,036,048.97 103.81 0.22% 4,152,544.00 15,333.33 0.63% 116,495.03 Aa2 / AA A+ 1.37 1.35 95000U2B8 Wells Fargo & Company Note 2.625% Due 07/22/2022 3,000,000.00 Various 2.99% 2,954,520.00 2,984,271.55 103.51 0.36% 3,105,357.00 34,781.26 0.48% 121,085.45 A2 / BBB+ A+ 1.56 1.52 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 4,191,035.18 104.24 0.33% 4,345,832.30 19,310.58 0.66% 154,797.12 A3 / A A 1.84 1.64 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 1,996,955.60 105.19 0.22% 2,103,714.00 25,016.67 0.32% 106,758.40 A1 / AA- AA- 2.06 1.92 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 6,738,479.46 104.76 0.24% 7,071,023.25 77,512.50 1.09% 332,543.79 A2 / A A 2.07 1.93 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 2,496,023.58 105.19 0.34% 2,629,665.00 31,138.89 0.40% 133,641.42 A1 / A AA- 2.08 1.93 44932HAH6 IBM Credit Corp Note 3.000% Due 02/06/2023 5,670,000.00 Various 3.26% 5,603,264.40 5,641,119.43 105.90 0.18% 6,004,660.42 68,512.50 0.92% 363,540.99 A2 / A NR 2.10 2.03 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 1,971,147.51 105.31 0.28% 2,106,128.00 16,200.00 0.32% 134,980.49 A3 / A A 2.20 2.13 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 2,473,450.64 105.02 0.28% 2,625,405.00 20,243.06 0.40% 151,954.36 Aa2 / AA A+ 2.20 1.98 As of December 31, 2020 43 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 58933YAF2 Merck & Co Note 2.800% Due 05/18/2023 2,000,000.00 10/26/2018 3.41% 1,948,640.00 1,973,191.38 106.05 0.25% 2,120,952.00 6,688.89 0.32% 147,760.62 A1 / AA- A+ 2.38 2.31 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 4,903,340.53 105.13 0.37% 5,256,725.00 16,125.00 0.80% 353,384.47 A2 / A- AA- 2.38 2.16 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 4,996,745.55 107.35 0.36% 5,367,575.01 11,180.56 0.82% 370,829.46 A2 / A A+ 2.44 2.28 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 3,468,378.79 106.36 0.33% 3,722,470.50 2,171.65 0.57% 254,091.71 Aa2 / AA NR 2.48 2.17 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 3,879,499.30 107.39 0.31% 4,166,902.72 1,832.22 0.63% 287,403.42 Aa2 / AA AA 2.48 2.33 02665WCJ8 American Honda Finance Note 3.450% Due 07/14/2023 845,000.00 07/11/2018 3.49% 843,538.15 844,259.46 107.70 0.39% 910,091.20 13,523.52 0.14% 65,831.74 A3 / A- NR 2.53 2.41 89114QC48 Toronto Dominion Bank Note 3.500% Due 07/19/2023 5,000,000.00 02/26/2019 3.04% 5,094,200.00 5,054,626.59 108.22 0.26% 5,410,915.00 78,750.00 0.83% 356,288.41 Aa1 / AA- AA 2.55 2.43 02665WCQ2 American Honda Finance Note 3.625% Due 10/10/2023 2,000,000.00 Various 3.64% 1,998,320.00 1,999,055.49 108.80 0.43% 2,176,002.00 16,312.50 0.33% 176,946.51 A3 / A- NR 2.78 2.65 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 1,250,135.52 109.17 0.33% 1,364,653.75 10,012.15 0.21% 114,518.23 A2 / A A 2.78 2.65 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 6,736,763.94 106.83 0.40% 7,130,835.75 76,354.59 1.10% 394,071.81 A2 / A- A+ 3.18 2.09 09247XAL5 Blackrock Inc Note 3.500% Due 03/18/2024 1,000,000.00 05/09/2019 2.69% 1,036,330.00 1,024,042.21 109.84 0.41% 1,098,403.00 10,013.89 0.17% 74,360.79 Aa3 / AA- NR 3.21 3.04 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 5,017,105.16 107.91 0.38% 5,395,365.00 19,965.28 0.82% 378,259.84 A1 / A+ A+ 3.36 3.07 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 3,011,782.69 107.82 0.38% 3,234,747.00 11,875.00 0.49% 222,964.31 Aa1 / AA+ NR 3.36 3.07 89114QCA4 Toronto Dominion Bank Note 2.650% Due 06/12/2024 3,000,000.00 06/12/2019 2.65% 3,000,570.00 3,000,392.91 107.15 0.55% 3,214,563.00 4,195.83 0.49% 214,170.09 Aa3 / A AA- 3.45 3.31 02665WCZ2 American Honda Finance Note 2.400% Due 06/27/2024 1,219,000.00 07/10/2019 2.49% 1,213,843.63 1,215,377.45 106.22 0.60% 1,294,819.36 325.07 0.20% 79,441.91 A3 / A- NR 3.49 3.36 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 6,559,483.86 106.93 0.57% 6,950,762.00 75,968.75 1.07% 391,278.14 A2 / A AA 3.54 3.37 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 2,596,893.52 108.48 0.64% 2,711,887.50 41,661.53 0.42% 114,993.98 A2 / A- AA- 3.56 3.32 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 7,257,447.49 105.82 0.57% 7,693,273.94 66,237.78 1.18% 435,826.45 A1 / AA- AA- 4.06 3.80 As of December 31, 2020 44 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 00440EAS6 Chubb INA Holdings Inc Note 3.150% Due 03/15/2025 2,000,000.00 10/28/2020 0.78% 2,203,740.00 2,195,702.67 110.38 0.64% 2,207,528.00 18,550.00 0.34% 11,825.33 A3 / A A 4.21 3.94 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 5,106,233.20 103.61 0.51% 5,180,435.00 5,625.00 0.79% 74,201.80 A2 / A A 4.42 4.21 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 1,514,018.48 102.19 0.65% 1,532,811.00 1,006.25 0.23% 18,792.52 A2 / A AA 4.44 4.33 TOTAL Corporate 130,733,000.00 2.70% 131,456,830.50 131,136,925.73 0.37% 137,561,199.24 1,007,125.47 21.07% 6,424,273.51 A1 / A+ A+ 2.40 2.20 Money Market Fund FI 31846V567 First American Govt Obligation MMKT Class-Z 10,413,934.72 Various 0.03% 10,413,934.72 10,413,934.72 1.00 0.03% 10,413,934.72 0.00 1.58% 0.00 Aaa / AAA AAA 0.00 0.00 TOTAL Money Market Fund FI 10,413,934.72 0.03% 10,413,934.72 10,413,934.72 0.03% 10,413,934.72 0.00 1.58% 0.00 Aaa / AAA Aaa 0.00 0.00 Mortgage Pass Thru 36225CAZ9 GNMA Pool# G2 80023 3.030% Due 12/20/2026 11,409.55 08/08/1997 2.92% 11,598.50 11,448.00 103.39 0.41% 11,796.72 28.81 0.00% 348.72 Aaa / AA+ AAA 5.97 2.47 36225CC20 GNMA Pool# G2 80088 1.670% Due 06/20/2027 8,992.74 08/11/1997 1.54% 9,189.46 9,035.39 101.86 1.30% 9,160.41 12.51 0.00% 125.02 Aaa / AA+ AAA 6.47 2.21 31348SWZ3 FHLMC FH 786064 2.257% Due 01/01/2028 1,579.26 02/18/2000 2.44% 1,540.80 1,569.60 99.93 2.19% 1,578.08 2.97 0.00% 8.48 Aaa / AA+ AAA 7.01 3.37 31371NUC7 FNMA FN 257179 4.500% Due 04/01/2028 10,705.20 12/05/2011 3.72% 11,321.80 10,979.28 108.30 0.91% 11,593.44 40.14 0.00% 614.16 Aaa / AA+ AAA 7.25 2.34 31417YAY3 FNMA Pool# FN MA0022 4.500% Due 04/01/2029 11,574.11 12/05/2011 3.76% 12,240.76 11,891.82 108.31 1.12% 12,535.95 43.40 0.00% 644.13 Aaa / AA+ AAA 8.25 2.50 3138EG6F6 FNMA FN AL0869 4.500% Due 06/01/2029 6,954.15 12/05/2011 3.77% 7,354.71 7,147.05 109.26 0.65% 7,597.91 6.08 0.00% 450.86 Aaa / AA+ AAA 8.42 2.44 36225CNM4 GNMA Pool# G2 80395 1.670% Due 04/20/2030 4,774.05 03/15/2000 1.73% 4,730.75 4,760.59 104.04 0.47% 4,966.71 6.64 0.00% 206.12 Aaa / AA+ AAA 9.31 2.86 36225CN28 GNMA Pool# G2 80408 1.670% Due 05/20/2030 35,807.33 03/15/2000 1.73% 35,443.65 35,693.57 104.04 0.48% 37,253.02 49.83 0.01% 1,559.45 Aaa / AA+ AAA 9.39 2.90 31403GXF4 FNMA Pool# FN 748678 5.000% Due 10/01/2033 1,318.11 06/10/2013 4.16% 1,416.97 1,380.45 112.89 0.74% 1,488.03 5.49 0.00% 107.58 Aaa / AA+ AAA 12.76 3.05 36225DCB8 GNMA Pool# G2 80965 1.620% Due 07/20/2034 31,941.85 07/19/2004 1.62% 31,921.90 31,932.81 104.39 0.26% 33,342.85 43.12 0.01% 1,410.04 Aaa / AA+ AAA 13.56 2.94 As of December 31, 2020 45 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 31406XWT5 FNMA Pool# FN 823358 3.640% Due 02/01/2035 91,103.52 01/11/2006 3.71% 90,391.78 90,758.12 104.40 0.97% 95,110.44 276.34 0.01% 4,352.32 Aaa / AA+ AAA 14.10 4.32 31406PQY8 FNMA Pool# FN 815971 5.000% Due 03/01/2035 105,426.67 06/10/2013 4.21% 113,333.69 110,603.92 116.26 0.47% 122,565.88 439.28 0.02% 11,961.96 Aaa / AA+ AAA 14.17 3.58 31407BXH7 FNMA Pool# FN 826080 5.000% Due 07/01/2035 13,805.58 06/10/2013 4.22% 14,840.99 14,488.97 116.27 0.28% 16,051.68 57.52 0.00% 1,562.71 Aaa / AA+ AAA 14.51 3.45 31376KT22 FNMA FN 357969 5.000% Due 09/01/2035 78,622.38 06/10/2013 4.22% 84,519.04 82,529.66 116.30 1.39% 91,436.65 76.44 0.01% 8,906.99 Aaa / AA+ AAA 14.68 4.45 31403DJZ3 FNMA Pool #745580 5.000% Due 06/01/2036 70,722.80 06/10/2013 4.26% 76,027.00 74,296.17 116.15 0.73% 82,142.41 294.68 0.01% 7,846.24 Aaa / AA+ AAA 15.43 3.76 31410F4V4 FNMA Pool# FN 888336 5.000% Due 07/01/2036 130,793.54 06/10/2013 4.25% 140,603.07 137,413.54 115.89 0.08% 151,573.36 544.97 0.02% 14,159.82 Aaa / AA+ AAA 15.51 3.25 TOTAL Mortgage Pass Thru 615,530.84 3.80% 646,474.87 635,928.94 0.63% 690,193.54 1,928.22 0.11% 54,264.60 Aaa / AA+ Aaa 13.81 3.58 Municipal Bonds 913366EJ5 Univ of California Rgts Med TE-REV 5.035% Due 05/15/2021 400,000.00 11/09/2010 5.04% 400,000.00 400,000.00 101.66 0.57% 406,632.00 2,573.44 0.06% 6,632.00 Aa3 / AA- AA- 0.37 0.37 TOTAL Municipal Bonds 400,000.00 5.04% 400,000.00 400,000.00 0.57% 406,632.00 2,573.44 0.06% 6,632.00 Aa3 / AA- AA- 0.37 0.37 Negotiable CD 06417MMB8 Bank of Nova Scotia Houston Yankee CD 0.280% Due 11/24/2021 5,000,000.00 11/24/2020 0.28% 5,000,000.00 5,000,000.00 100.00 0.28% 5,000,000.00 1,438.89 0.76% 0.00 P-1 / A-1 F-1+ 0.90 0.90 TOTAL Negotiable CD 5,000,000.00 0.28% 5,000,000.00 5,000,000.00 0.28% 5,000,000.00 1,438.89 0.76% 0.00 Aaa / AA Aaa 0.90 0.90 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 2,969,808.79 100.13 0.35% 2,973,760.02 28,957.50 0.46% 3,951.23 Aaa / AAA NR 0.07 0.07 4581X0CS5 Inter-American Dev Bank Note 1.875% Due 03/15/2021 5,000,000.00 Various 1.69% 5,059,610.00 5,001,820.48 100.32 0.33% 5,015,855.00 27,604.17 0.77% 14,034.52 Aaa / AAA AAA 0.20 0.21 45950KCJ7 International Finance Corp Note 1.125% Due 07/20/2021 2,500,000.00 11/09/2016 1.64% 2,441,600.00 2,493,181.55 100.51 0.20% 2,512,820.00 12,578.13 0.38% 19,638.45 Aaa / AAA NR 0.55 0.55 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 2,999,228.05 101.94 0.27% 3,058,110.00 28,864.58 0.47% 58,881.95 Aaa / NR AAA 1.05 1.03 As of December 31, 2020 46 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 459058FY4 Intl. Bank Recon & Development Note 2.000% Due 01/26/2022 10,000,000.00 Various 1.99% 10,006,350.00 10,001,024.42 101.91 0.21% 10,191,220.00 86,111.12 1.56% 190,195.58 Aaa / NR AAA 1.07 1.05 4581X0CZ9 Inter-American Dev Bank Note 1.750% Due 09/14/2022 6,500,000.00 Various 2.65% 6,249,655.00 6,406,848.88 102.67 0.18% 6,673,842.50 33,809.02 1.02% 266,993.62 Aaa / AAA AAA 1.70 1.68 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 6,224,193.68 100.97 0.40% 6,305,326.70 7,480.99 0.96% 81,133.02 Aaa / AAA NR 4.31 4.24 459058JL8 Intl. Bank Recon & Development Note 0.500% Due 10/28/2025 6,920,000.00 10/21/2020 0.52% 6,912,180.40 6,912,458.75 100.19 0.46% 6,932,947.32 6,055.00 1.06% 20,488.57 Aaa / AAA AAA 4.83 4.76 TOTAL Supranational 43,135,000.00 1.66% 42,847,805.45 43,008,564.60 0.30% 43,663,881.54 231,460.51 6.67% 655,316.94 Aaa / AAA Aaa 2.03 2.00 US Treasury 9127963W7 US Treasury Bill 0.085% Due 02/04/2021 15,000,000.00 12/29/2020 0.09% 14,998,725.00 14,998,795.83 99.99 0.09% 14,998,795.83 0.00 2.28% 0.00 P-1 / A-1+ F-1+ 0.10 0.10 912828T34 US Treasury Note 1.125% Due 09/30/2021 7,000,000.00 Various 1.88% 6,757,914.08 6,962,471.21 100.75 0.12% 7,052,773.00 20,120.19 1.08% 90,301.79 Aaa / AA+ AAA 0.75 0.74 912828T67 US Treasury Note 1.250% Due 10/31/2021 6,000,000.00 12/13/2016 1.92% 5,813,691.98 5,968,321.36 100.93 0.13% 6,055,782.00 12,845.30 0.92% 87,460.64 Aaa / AA+ AAA 0.83 0.83 912828U65 US Treasury Note 1.750% Due 11/30/2021 7,000,000.00 12/28/2016 2.06% 6,900,492.20 6,981,560.32 101.48 0.13% 7,103,362.00 10,769.23 1.08% 121,801.68 Aaa / AA+ AAA 0.92 0.91 912828V72 US Treasury Note 1.875% Due 01/31/2022 3,000,000.00 02/27/2017 1.84% 3,004,814.74 3,001,057.74 101.89 0.13% 3,056,718.00 23,539.40 0.47% 55,660.26 Aaa / AA+ AAA 1.08 1.07 912828J76 US Treasury Note 1.750% Due 03/31/2022 5,000,000.00 04/25/2017 1.85% 4,976,383.94 4,994,043.50 102.03 0.12% 5,101,560.00 22,355.77 0.78% 107,516.50 Aaa / AA+ AAA 1.25 1.23 912828XW5 US Treasury Note 1.750% Due 06/30/2022 5,000,000.00 07/25/2017 1.86% 4,973,454.25 4,991,962.54 102.43 0.13% 5,121,680.00 241.71 0.78% 129,717.46 Aaa / AA+ AAA 1.50 1.49 912828L24 US Treasury Note 1.875% Due 08/31/2022 6,000,000.00 09/27/2017 1.92% 5,987,832.60 5,995,892.32 102.90 0.13% 6,173,904.00 38,225.14 0.94% 178,011.68 Aaa / AA+ AAA 1.67 1.63 912828L57 US Treasury Note 1.750% Due 09/30/2022 16,000,000.00 Various 1.98% 15,822,656.25 15,938,448.94 102.82 0.13% 16,451,872.00 71,538.46 2.51% 513,423.06 Aaa / AA+ AAA 1.75 1.72 912828M80 US Treasury Note 2.000% Due 11/30/2022 8,000,000.00 12/22/2017 2.25% 7,907,500.00 7,964,130.56 103.58 0.13% 8,286,560.00 14,065.93 1.26% 322,429.44 Aaa / AA+ AAA 1.92 1.88 912828N30 US Treasury Note 2.125% Due 12/31/2022 5,000,000.00 01/24/2018 2.44% 4,926,562.50 4,970,274.33 103.98 0.13% 5,199,025.00 293.51 0.79% 228,750.67 Aaa / AA+ AAA 2.00 1.97 9128284D9 US Treasury Note 2.500% Due 03/31/2023 10,000,000.00 Various 2.75% 9,887,265.63 9,948,811.09 105.30 0.14% 10,529,690.00 63,873.63 1.61% 580,878.91 Aaa / AA+ AAA 2.25 2.19 As of December 31, 2020 47 Holdings Report Orange County Sanitation District Long Term - Account #10268 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 912828R69 US Treasury Note 1.625% Due 05/31/2023 5,000,000.00 05/30/2018 2.67% 4,757,226.56 4,883,000.75 103.57 0.14% 5,178,320.00 7,142.86 0.79% 295,319.25 Aaa / AA+ AAA 2.41 2.37 912828U57 US Treasury Note 2.125% Due 11/30/2023 15,000,000.00 Various 2.53% 14,723,632.81 14,833,459.00 105.73 0.15% 15,859,575.00 28,021.98 2.42% 1,026,116.00 Aaa / AA+ AAA 2.92 2.84 91282CBA8 US Treasury Note 0.125% Due 12/15/2023 6,500,000.00 12/29/2020 0.17% 6,491,367.19 6,491,383.18 99.88 0.16% 6,492,382.00 379.46 0.99% 998.82 Aaa / AA+ AAA 2.96 2.95 912828V80 US Treasury Note 2.250% Due 01/31/2024 7,500,000.00 Various 2.27% 7,491,503.91 7,494,522.88 106.39 0.17% 7,979,295.00 70,618.20 1.22% 484,772.12 Aaa / AA+ AAA 3.08 2.97 912828W48 US Treasury Note 2.125% Due 02/29/2024 10,000,000.00 04/24/2019 2.32% 9,911,718.75 9,942,475.12 106.13 0.18% 10,613,280.00 72,203.04 1.62% 670,804.88 Aaa / AA+ AAA 3.16 3.06 912828WJ5 US Treasury Note 2.500% Due 05/15/2024 7,000,000.00 06/10/2019 1.91% 7,193,046.88 7,131,915.37 107.76 0.19% 7,543,046.00 22,720.99 1.15% 411,130.63 Aaa / AA+ AAA 3.37 3.25 912828XX3 US Treasury Note 2.000% Due 06/30/2024 5,000,000.00 07/12/2019 1.88% 5,028,710.94 5,020,218.08 106.25 0.21% 5,312,695.00 276.24 0.81% 292,476.92 Aaa / AA+ AAA 3.50 3.40 912828WU0 US Treasury Inflation Index Note 0.125% Due 07/15/2024 11,404,744.00 Various 0.22% 11,292,956.76 11,365,063.67 107.07 (1.80%) 12,210,797.13 6,585.59 1.86% 845,733.46 Aaa / AA+ AAA 3.54 3.56 912828YH7 US Treasury Note 1.500% Due 09/30/2024 14,000,000.00 Various 1.72% 13,859,296.88 13,889,843.08 104.71 0.24% 14,660,072.00 53,653.85 2.24% 770,228.92 Aaa / AA+ AAA 3.75 3.64 9128283J7 US Treasury Note 2.125% Due 11/30/2024 16,500,000.00 Various 1.76% 16,783,886.72 16,724,378.57 107.29 0.25% 17,703,345.00 30,824.18 2.70% 978,966.43 Aaa / AA+ AAA 3.92 3.77 912828ZL7 US Treasury Note 0.375% Due 04/30/2025 12,000,000.00 Various 0.38% 11,998,515.63 11,998,665.33 100.36 0.29% 12,043,596.00 7,707.19 1.83% 44,930.67 Aaa / AA+ AAA 4.33 4.29 91282CAM3 US Treasury Note 0.250% Due 09/30/2025 6,500,000.00 10/16/2020 0.32% 6,477,656.25 6,478,571.27 99.62 0.33% 6,475,371.50 4,151.79 0.99% (3,199.77) Aaa / AA+ AAA 4.75 4.71 91282CBC4 US Treasury Note 0.375% Due 12/31/2025 7,000,000.00 12/29/2020 0.38% 6,999,453.13 6,999,453.43 100.08 0.36% 7,005,467.00 72.51 1.07% 6,013.57 Aaa / AA+ AAA 5.00 4.95 TOTAL US Treasury 216,404,744.00 1.61% 214,966,265.58 215,968,719.47 0.07% 224,208,963.46 582,226.15 34.18% 8,240,243.99 Aaa / AA+ Aaa 2.63 2.58 TOTAL PORTFOLIO 632,352,583.81 1.80% 632,986,846.50 633,352,660.24 0.22% 655,005,456.04 2,623,087.03 100.00% 21,652,795.80 Aa1 / AA+ Aaa 2.62 2.44 TOTAL MARKET VALUEPLUS ACCRUALS 657,628,543.07 As of December 31, 2020 48 Holdings Report Orange County Sanitation District Liquid - Account #10282 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration Agency 313385AD8 FHLB Discount Note 0.160% Due 01/04/2021 1,500,000.00 04/30/2020 0.16% 1,498,340.00 1,499,980.00 100.00 0.16% 1,499,980.00 0.00 0.66% 0.00 P-1 / A-1+ F-1+ 0.01 0.01 313385AX4 FHLB Discount Note 0.073% Due 01/22/2021 9,000,000.00 12/28/2020 0.07% 8,999,543.75 8,999,616.75 100.00 0.07% 8,999,616.75 0.00 3.99% 0.00 P-1 / A-1+ F-1+ 0.06 0.06 313385BL9 FHLB Discount Note 0.085% Due 02/04/2021 9,000,000.00 12/29/2020 0.09% 8,999,213.75 8,999,277.50 99.99 0.09% 8,999,277.50 0.00 3.99% 0.00 P-1 / A-1+ F-1+ 0.10 0.10 TOTAL Agency 19,500,000.00 0.09% 19,497,097.50 19,498,874.25 0.09% 19,498,874.25 0.00 8.64% 0.00 Aaa / AAA Aaa 0.07 0.07 Corporate 89114QBX5 Toronto Dominion Bank Note 2.550% Due 01/25/2021 1,750,000.00 05/06/2020 0.56% 1,774,762.50 1,752,268.32 100.12 0.76% 1,752,080.75 19,337.50 0.78% (187.57) Aa1 / AA- AA 0.07 0.07 494368BF9 Kimberly-Clark Note 3.875% Due 03/01/2021 750,000.00 05/14/2020 0.66% 768,877.50 753,880.74 100.53 0.66% 754,007.25 9,687.50 0.34% 126.51 A2 / A NR 0.16 0.17 69371RN93 Paccar Financial Corp Note 2.800% Due 03/01/2021 600,000.00 09/08/2020 0.25% 607,086.00 602,488.54 100.34 0.74% 602,052.00 5,600.00 0.27% (436.54) A1 / A+ NR 0.16 0.17 037833AR1 Apple Inc Note 2.850% Due 05/06/2021 1,155,000.00 05/08/2020 0.44% 1,182,327.30 1,164,515.08 100.81 0.50% 1,164,387.84 5,029.06 0.52% (127.24) Aa1 / AA+ NR 0.35 0.35 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 1,513,834.59 100.90 0.35% 1,513,563.00 5,041.67 0.67% (271.59) A1 / A+ A+ 0.38 0.38 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 1,396,560.95 100.90 0.31% 1,397,399.91 5,001.39 0.62% 838.96 A2 / A A 0.39 0.31 TOTAL Corporate 7,140,000.00 0.45% 7,275,820.95 7,183,548.22 0.53% 7,183,490.75 49,697.12 3.20% (57.47) A1 / A+ A+ 0.26 0.24 Money Market Fund FI 31846V567 First American Govt Obligation MMKT Class-Z 10,599,075.52 Various 0.03% 10,599,075.52 10,599,075.52 1.00 0.03% 10,599,075.52 0.00 4.70% 0.00 Aaa / AAA AAA 0.00 0.00 TOTAL Money Market Fund FI 10,599,075.52 0.03% 10,599,075.52 10,599,075.52 0.03% 10,599,075.52 0.00 4.70% 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 1,500,000.00 100.12 0.17% 1,501,732.50 10,625.00 0.67% 1,732.50 P-1 / A-1+ F-1+ 0.14 0.14 As of December 31, 2020 49 Holdings Report Orange County Sanitation District Liquid - Account #10282 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 55380TMD9 MUFG Bank Yankee CD 0.240% Due 04/21/2021 2,500,000.00 12/21/2020 0.24% 2,500,000.00 2,500,000.00 100.00 0.24% 2,500,000.00 183.33 1.11% 0.00 P-1 / A-1 F-1 0.30 0.30 TOTAL Negotiable CD 4,000,000.00 0.53% 4,000,000.00 4,000,000.00 0.21% 4,001,732.50 10,808.33 1.78% 1,732.50 Aaa / AA+ AA+ 0.24 0.24 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 1,004,511.97 100.45 0.24% 1,004,489.00 1,413.19 0.45% (22.97) Aaa / AAA AAA 0.39 0.40 TOTAL Supranational 1,000,000.00 0.22% 1,010,570.00 1,004,511.97 0.24% 1,004,489.00 1,413.19 0.45% (22.97) Aaa / AAA Aaa 0.39 0.40 US Treasury 912796UC1 US Treasury Bill 0.149% Due 01/28/2021 58,250,000.00 Various 0.15% 58,193,363.48 58,243,479.69 99.99 0.15% 58,243,479.69 0.00 25.81% 0.00 P-1 / A-1+ F-1+ 0.08 0.08 912796XE4 US Treasury Bill 0.126% Due 02/25/2021 10,000,000.00 Various 0.13% 9,991,378.33 9,998,075.00 99.98 0.13% 9,998,075.00 0.00 4.43% 0.00 P-1 / A-1+ F-1+ 0.15 0.15 912828WR7 US Treasury Note 2.125% Due 06/30/2021 8,000,000.00 Various 0.12% 8,118,398.44 8,079,193.78 100.99 0.14% 8,079,376.00 469.61 3.58% 182.22 Aaa / AA+ AAA 0.50 0.50 9128287A2 US Treasury Note 1.625% Due 06/30/2021 19,000,000.00 Various 0.10% 19,180,937.51 19,143,300.56 100.74 0.14% 19,141,018.00 852.91 8.48% (2,282.56) Aaa / AA+ AAA 0.50 0.50 912828S27 US Treasury Note 1.125% Due 06/30/2021 27,000,000.00 12/28/2020 0.09% 27,141,328.14 27,139,011.30 100.50 0.12% 27,135,000.00 839.10 12.02% (4,011.30) Aaa / AA+ AAA 0.50 0.50 912828WY2 US Treasury Note 2.250% Due 07/31/2021 8,000,000.00 Various 0.12% 8,144,296.88 8,098,575.69 101.23 0.15% 8,098,128.00 75,326.08 3.62% (447.69) Aaa / AA+ AAA 0.58 0.58 912828S76 US Treasury Note 1.125% Due 07/31/2021 43,000,000.00 Various 0.10% 43,267,968.77 43,256,528.08 100.59 0.12% 43,251,937.00 202,438.84 19.25% (4,591.08) Aaa / AA+ AAA 0.58 0.58 912828YC8 US Treasury Note 1.500% Due 08/31/2021 9,000,000.00 12/28/2020 0.09% 9,084,726.56 9,083,689.09 100.92 0.11% 9,082,971.00 45,870.17 4.04% (718.09) Aaa / AA+ AAA 0.67 0.66 TOTAL US Treasury 182,250,000.00 0.12% 183,122,398.11 183,041,853.19 0.14% 183,029,984.69 325,796.71 81.24% (11,868.50) Aaa / AAA Aaa 0.38 0.38 TOTAL PORTFOLIO 224,489,075.52 0.13% 225,504,962.08 225,327,863.15 0.14% 225,317,646.71 387,715.35 100.00% (10,216.44) Aaa / AAA Aaa 0.33 0.33 TOTAL MARKET VALUEPLUS ACCRUALS 225,705,362.06 As of December 31, 2020 50 Holdings Report OCSE Lehman Exposure -Account #10284 CUSIP SecurityDescription Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM MarketValue 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 12/31/2020 60,641.49 11/21/2014 0.00% 57,842.64 57,842.64 0.42 0.00% 25,621.03 0.00 46.80% (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 46.80% (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% 318,131.38 318,131.38 1.12 0.00% 6,720.00 0.00 12.28% (311,411.38) NR / NR NR 0.07 0.00 525ESC0Y6 Lehman Brothers Note-Defaulted 0.000% Due 10/22/2049 2,000,000.00 09/18/2008 0.00% 1,025,037.05 1,025,037.05 1.12 0.00% 22,400.00 0.00 40.92% (1,002,637.05) NR / NR NR 28.83 0.00 TOTAL Corporate 2,600,000.00 0.00% 1,343,168.43 1,343,168.43 0.00% 29,120.00 0.00 53.20% (1,314,048.43) NR / NR NR 22.19 0.00 TOTAL PORTFOLIO 2,660,641.49 0.00% 1,401,011.07 1,401,011.07 0.00% 54,741.03 0.00 100.00% (1,346,270.04) NR / NR NR 11.80 0.00 TOTAL MARKET VALUEPLUS ACCRUALS 54,741.03 As of December 31, 2020 51 SECTION ||||||||||||||Section 5 |Transactions 52 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 10/19/2020 91282CAM3 6,500,000.00 US Treasury Note 0.25% Due: 09/30/2025 99.656 0.32% 6,477,656.25 848.21 6,478,504.46 0.00 Purchase 10/28/2020 459058JL8 6,920,000.00 Intl. Bank Recon & Development Note 0.5% Due: 10/28/2025 99.887 0.52% 6,912,180.40 0.00 6,912,180.40 0.00 Purchase 10/30/2020 00440EAS6 2,000,000.00 Chubb INA Holdings Inc Note 3.15% Due: 03/15/2025 110.187 0.78% 2,203,740.00 7,875.00 2,211,615.00 0.00 Purchase 11/12/2020 3135G06G3 8,255,000.00 FNMA Note 0.5% Due: 11/07/2025 99.642 0.57% 8,225,447.10 0.00 8,225,447.10 0.00 Purchase 11/25/2020 06417MMB8 5,000,000.00 Bank of Nova Scotia Houston Yankee CD 0.28% Due: 11/24/2021 100.000 0.28% 5,000,000.00 0.00 5,000,000.00 0.00 Purchase 12/30/2020 9127963W7 15,000,000.00 US Treasury Bill 0.085% Due: 02/04/2021 99.992 0.09% 14,998,725.00 0.00 14,998,725.00 0.00 Purchase 12/30/2020 91282CBA8 6,500,000.00 US Treasury Note 0.125% Due: 12/15/2023 99.867 0.17% 6,491,367.19 334.82 6,491,702.01 0.00 Purchase 12/31/2020 91282CBC4 7,000,000.00 US Treasury Note 0.375% Due: 12/31/2025 99.992 0.38% 6,999,453.13 0.00 6,999,453.13 0.00 Subtotal 57,175,000.00 57,308,569.07 9,058.03 57,317,627.10 0.00 Security Contribution 10/31/2020 912828WU0 36,504.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 36,504.00 13.39 36,517.39 0.00 Security Contribution 11/30/2020 912828WU0 16,432.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 16,432.00 7.70 16,439.70 0.00 September 30, 2020 through December 31, 2020 As of December 31, 2020 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 Security Contribution 12/31/2020 912828WU0 5,200.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 5,200.00 2.99 5,202.99 0.00 Subtotal 58,136.00 58,136.00 24.08 58,160.08 0.00 TOTAL ACQUISITIONS 57,233,136.00 57,366,705.07 9,082.11 57,375,787.18 0.00 DISPOSITIONS Sale 10/19/2020 912828N89 6,000,000.00 US Treasury Note 1.375% Due: 01/31/2021 100.355 1.71% 6,021,328.13 17,934.78 6,039,262.91 28,484.65 Sale 10/22/2020 912828L99 6,500,000.00 US Treasury Note 1.375% Due: 10/31/2020 100.035 1.77% 6,502,285.16 42,501.70 6,544,786.86 2,950.34 Sale 11/10/2020 3135G0F73 7,500,000.00 FNMA Note 1.5% Due: 11/30/2020 100.079 1.87% 7,505,925.00 50,000.00 7,555,925.00 7,352.99 Subtotal 20,000,000.00 20,029,538.29 110,436.48 20,139,974.77 38,787.98 Maturity 11/01/2020 64971M5E8 1,400,000.00 New York NY TE-REV 4.075% Due: 11/01/2020 100.000 4.08% 1,400,000.00 0.00 1,400,000.00 0.00 Maturity 11/17/2020 3137EAEK1 5,000,000.00 FHLMC Note 1.875% Due: 11/17/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Subtotal 6,400,000.00 6,400,000.00 0.00 6,400,000.00 0.00 TOTAL DISPOSITIONS 26,400,000.00 26,429,538.29 110,436.48 26,539,974.77 38,787.98 September 30, 2020 through December 31, 2020 As of December 31, 2020 54 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 10/14/2020 912828WR7 5,000,000.00 US Treasury Note 2.125% Due: 06/30/2021 101.426 0.12% 5,071,289.06 30,604.62 5,101,893.68 0.00 Purchase 10/27/2020 9128287A2 5,000,000.00 US Treasury Note 1.625% Due: 06/30/2021 101.016 0.12% 5,050,781.25 26,273.78 5,077,055.03 0.00 Purchase 10/27/2020 912828S76 5,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.758 0.13% 5,037,890.63 13,451.09 5,051,341.72 0.00 Purchase 10/30/2020 9128287A2 4,000,000.00 US Treasury Note 1.625% Due: 06/30/2021 101.008 0.12% 4,040,312.50 21,548.91 4,061,861.41 0.00 Purchase 11/30/2020 9128287A2 5,000,000.00 US Treasury Note 1.625% Due: 06/30/2021 100.898 0.09% 5,044,921.88 33,780.57 5,078,702.45 0.00 Purchase 11/30/2020 9128287A2 5,000,000.00 US Treasury Note 1.625% Due: 06/30/2021 100.898 0.09% 5,044,921.88 33,780.57 5,078,702.45 0.00 Purchase 12/21/2020 55380TMD9 2,500,000.00 MUFG Bank Yankee CD 0.24% Due: 04/21/2021 100.000 0.24% 2,500,000.00 0.00 2,500,000.00 0.00 Purchase 12/28/2020 313385AX4 9,000,000.00 FHLB Discount Note 0.073% Due: 01/22/2021 99.995 0.07% 8,999,543.75 0.00 8,999,543.75 0.00 Purchase 12/29/2020 313385BL9 9,000,000.00 FHLB Discount Note 0.085% Due: 02/04/2021 99.991 0.09% 8,999,213.75 0.00 8,999,213.75 0.00 Purchase 12/29/2020 912828S27 9,000,000.00 US Treasury Note 1.125% Due: 06/30/2021 100.523 0.09% 9,047,109.38 50,074.73 9,097,184.11 0.00 Purchase 12/29/2020 912828S27 9,000,000.00 US Treasury Note 1.125% Due: 06/30/2021 100.523 0.09% 9,047,109.38 50,074.73 9,097,184.11 0.00 Purchase 12/29/2020 912828S27 9,000,000.00 US Treasury Note 1.125% Due: 06/30/2021 100.523 0.09% 9,047,109.38 50,074.73 9,097,184.11 0.00 Purchase 12/29/2020 912828S76 9,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.10% 9,054,492.19 41,545.52 9,096,037.71 0.00 Purchase 12/29/2020 912828YC8 9,000,000.00 US Treasury Note 1.5% Due: 08/31/2021 100.941 0.09% 9,084,726.56 44,751.38 9,129,477.94 0.00 Purchase 12/30/2020 912828S76 6,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.09% 6,036,328.13 27,880.43 6,064,208.56 0.00 Purchase 12/30/2020 912828S76 9,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.09% 9,054,492.19 41,820.65 9,096,312.84 0.00 September 30, 2020 through December 31, 2020 As of December 31, 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 Purchase 12/30/2020 912828S76 9,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.09% 9,054,492.19 41,820.65 9,096,312.84 0.00 Purchase 12/30/2020 912828S76 5,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.09% 5,030,273.44 23,233.70 5,053,507.14 0.00 Subtotal 123,500,000.00 124,245,007.54 530,716.06 124,775,723.60 0.00 TOTAL ACQUISITIONS 123,500,000.00 124,245,007.5 4 530,716.06 124,775,723.60 0.00 DISPOSITIONS Maturity 10/08/2020 912796TN9 5,000,000.00 US Treasury Bill 0.113% Due: 10/08/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Maturity 10/13/2020 313384K57 6,500,000.00 FHLB Discount Note 0.12% Due: 10/13/2020 100.000 6,500,000.00 0.00 6,500,000.00 0.00 Maturity 10/15/2020 46625HHU7 1,160,000.00 JP Morgan Chase Note 4.25% Due: 10/15/2020 100.000 1,160,000.00 0.00 1,160,000.00 0.00 Maturity 10/22/2020 9127962S7 5,000,000.00 US Treasury Bill 0.109% Due: 10/22/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Maturity 11/03/2020 00440EAT4 500,000.00 Chubb INA Holdings Inc Callable Note Cont 10/3/2020 2.3% Due: 11/03/2020 100.000 500,000.00 0.00 500,000.00 0.00 Maturity 11/05/2020 912796TP4 5,000,000.00 US Treasury Bill 0.1% Due: 11/05/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Maturity 11/23/2020 89233GLP9 1,500,000.00 Toyota Motor Credit Discount CP 0.26% Due: 11/23/2020 99.915 1,500,000.00 0.00 1,500,000.00 0.00 Maturity 11/24/2020 313384Q77 4,800,000.00 FHLB Discount Note 0.12% Due: 11/24/2020 100.000 4,800,000.00 0.00 4,800,000.00 0.00 Maturity 12/14/2020 92826CAB8 500,000.00 Visa Inc Callable Note Cont 11/14/2020 2.2% Due: 12/14/2020 100.000 500,000.00 0.00 500,000.00 0.00 September 30, 2020 through December 31, 2020 As of December 31, 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 Maturity 12/31/2020 912796TY5 5,000,000.00 US Treasury Bill 0.136% Due: 12/31/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Subtotal 34,960,000.00 34,960,000.00 0.00 34,960,000.00 0.00 TOTAL DISPOSITIONS 34,960,000.00 34,960,000.00 0.00 34,960,000.00 0.00 September 30, 2020 through December 31, 2020 As of December 31, 2020 57 Transaction Ledger Orange County Sanitation District Consolidated - Account #10283 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 10/14/2020 912828WR7 5,000,000.00 US Treasury Note 2.125% Due: 06/30/2021 101.426 0.12% 5,071,289.06 30,604.62 5,101,893.68 0.00 Purchase 10/19/2020 91282CAM3 6,500,000.00 US Treasury Note 0.25% Due: 09/30/2025 99.656 0.32% 6,477,656.25 848.21 6,478,504.46 0.00 Purchase 10/27/2020 9128287A2 5,000,000.00 US Treasury Note 1.625% Due: 06/30/2021 101.016 0.12% 5,050,781.25 26,273.78 5,077,055.03 0.00 Purchase 10/27/2020 912828S76 5,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.758 0.13% 5,037,890.63 13,451.09 5,051,341.72 0.00 Purchase 10/28/2020 459058JL8 6,920,000.00 Intl. Bank Recon & Development Note 0.5% Due: 10/28/2025 99.887 0.52% 6,912,180.40 0.00 6,912,180.40 0.00 Purchase 10/30/2020 00440EAS6 2,000,000.00 Chubb INA Holdings Inc Note 3.15% Due: 03/15/2025 110.187 0.78% 2,203,740.00 7,875.00 2,211,615.00 0.00 Purchase 10/30/2020 9128287A2 4,000,000.00 US Treasury Note 1.625% Due: 06/30/2021 101.008 0.12% 4,040,312.50 21,548.91 4,061,861.41 0.00 Purchase 11/12/2020 3135G06G3 8,255,000.00 FNMA Note 0.5% Due: 11/07/2025 99.642 0.57% 8,225,447.10 0.00 8,225,447.10 0.00 Purchase 11/25/2020 06417MMB8 5,000,000.00 Bank of Nova Scotia Houston Yankee CD 0.28% Due: 11/24/2021 100.000 0.28% 5,000,000.00 0.00 5,000,000.00 0.00 Purchase 11/30/2020 9128287A2 5,000,000.00 US Treasury Note 1.625% Due: 06/30/2021 100.898 0.09% 5,044,921.88 33,780.57 5,078,702.45 0.00 Purchase 11/30/2020 9128287A2 5,000,000.00 US Treasury Note 1.625% Due: 06/30/2021 100.898 0.09% 5,044,921.88 33,780.57 5,078,702.45 0.00 Purchase 12/21/2020 55380TMD9 2,500,000.00 MUFG Bank Yankee CD 0.24% Due: 04/21/2021 100.000 0.24% 2,500,000.00 0.00 2,500,000.00 0.00 Purchase 12/28/2020 313385AX4 9,000,000.00 FHLB Discount Note 0.073% Due: 01/22/2021 99.995 0.07% 8,999,543.75 0.00 8,999,543.75 0.00 Purchase 12/29/2020 313385BL9 9,000,000.00 FHLB Discount Note 0.085% Due: 02/04/2021 99.991 0.09% 8,999,213.75 0.00 8,999,213.75 0.00 Purchase 12/29/2020 912828S27 9,000,000.00 US Treasury Note 1.125% Due: 06/30/2021 100.523 0.09% 9,047,109.38 50,074.73 9,097,184.11 0.00 Purchase 12/29/2020 912828S27 9,000,000.00 US Treasury Note 1.125% Due: 06/30/2021 100.523 0.09% 9,047,109.38 50,074.73 9,097,184.11 0.00 September 30, 2020 through December 31, 2020 As of December 31, 2020 58 Transaction Ledger Orange County Sanitation District Consolidated - Account #10283 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Purchase 12/29/2020 912828S27 9,000,000.00 US Treasury Note 1.125% Due: 06/30/2021 100.523 0.09% 9,047,109.38 50,074.73 9,097,184.11 0.00 Purchase 12/29/2020 912828S76 9,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.10% 9,054,492.19 41,545.52 9,096,037.71 0.00 Purchase 12/29/2020 912828YC8 9,000,000.00 US Treasury Note 1.5% Due: 08/31/2021 100.941 0.09% 9,084,726.56 44,751.38 9,129,477.94 0.00 Purchase 12/30/2020 9127963W7 15,000,000.00 US Treasury Bill 0.085% Due: 02/04/2021 99.992 0.09% 14,998,725.00 0.00 14,998,725.00 0.00 Purchase 12/30/2020 912828S76 6,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.09% 6,036,328.13 27,880.43 6,064,208.56 0.00 Purchase 12/30/2020 912828S76 9,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.09% 9,054,492.19 41,820.65 9,096,312.84 0.00 Purchase 12/30/2020 912828S76 9,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.09% 9,054,492.19 41,820.65 9,096,312.84 0.00 Purchase 12/30/2020 912828S76 5,000,000.00 US Treasury Note 1.125% Due: 07/31/2021 100.605 0.09% 5,030,273.44 23,233.70 5,053,507.14 0.00 Purchase 12/30/2020 91282CBA8 6,500,000.00 US Treasury Note 0.125% Due: 12/15/2023 99.867 0.17% 6,491,367.19 334.82 6,491,702.01 0.00 Purchase 12/31/2020 91282CBC4 7,000,000.00 US Treasury Note 0.375% Due: 12/31/2025 99.992 0.38% 6,999,453.13 0.00 6,999,453.13 0.00 Subtotal 180,675,000.00 181,553,576.61 539,774.09 182,093,350.70 0.00 Security Contribution 10/31/2020 912828WU0 36,504.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 36,504.00 13.39 36,517.39 0.00 Security Contribution 11/30/2020 912828WU0 16,432.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 16,432.00 7.70 16,439.70 0.00 September 30, 2020 through December 31, 2020 As of December 31, 2020 59 Transaction Ledger Orange County Sanitation District Consolidated - Account #10283 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Security Contribution 12/31/2020 912828WU0 5,200.00 US Treasury Inflation Index Note 0.125% Due: 07/15/2024 100.000 5,200.00 2.99 5,202.99 0.00 Subtotal 58,136.00 58,136.00 24.08 58,160.08 0.00 TOTAL ACQUISITIONS 180,733,136.00 181,611,712.6 1 539,798.17 182,151,510.78 0.00 DISPOSITIONS Sale 10/19/2020 912828N89 6,000,000.00 US Treasury Note 1.375% Due: 01/31/2021 100.355 1.71% 6,021,328.13 17,934.78 6,039,262.91 28,484.65 Sale 10/22/2020 912828L99 6,500,000.00 US Treasury Note 1.375% Due: 10/31/2020 100.035 1.77% 6,502,285.16 42,501.70 6,544,786.86 2,950.34 Sale 11/10/2020 3135G0F73 7,500,000.00 FNMA Note 1.5% Due: 11/30/2020 100.079 1.87% 7,505,925.00 50,000.00 7,555,925.00 7,352.99 Subtotal 20,000,000.00 20,029,538.29 110,436.48 20,139,974.77 38,787.98 Maturity 10/08/2020 912796TN9 5,000,000.00 US Treasury Bill 0.113% Due: 10/08/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Maturity 10/13/2020 313384K57 6,500,000.00 FHLB Discount Note 0.12% Due: 10/13/2020 100.000 6,500,000.00 0.00 6,500,000.00 0.00 Maturity 10/15/2020 46625HHU7 1,160,000.00 JP Morgan Chase Note 4.25% Due: 10/15/2020 100.000 1,160,000.00 0.00 1,160,000.00 0.00 Maturity 10/22/2020 9127962S7 5,000,000.00 US Treasury Bill 0.109% Due: 10/22/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Maturity 11/01/2020 64971M5E8 1,400,000.00 New York NY TE-REV 4.075% Due: 11/01/2020 100.000 4.08% 1,400,000.00 0.00 1,400,000.00 0.00 Maturity 11/03/2020 00440EAT4 500,000.00 Chubb INA Holdings Inc Callable Note Cont 10/3/2020 2.3% Due: 11/03/2020 100.000 500,000.00 0.00 500,000.00 0.00 September 30, 2020 through December 31, 2020 As of December 31, 2020 60 Transaction Ledger Orange County Sanitation District Consolidated - Account #10283 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Maturity 11/05/2020 912796TP4 5,000,000.00 US Treasury Bill 0.1% Due: 11/05/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Maturity 11/17/2020 3137EAEK1 5,000,000.00 FHLMC Note 1.875% Due: 11/17/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Maturity 11/23/2020 89233GLP9 1,500,000.00 Toyota Motor Credit Discount CP 0.26% Due: 11/23/2020 99.915 1,500,000.00 0.00 1,500,000.00 0.00 Maturity 11/24/2020 313384Q77 4,800,000.00 FHLB Discount Note 0.12% Due: 11/24/2020 100.000 4,800,000.00 0.00 4,800,000.00 0.00 Maturity 12/14/2020 92826CAB8 500,000.00 Visa Inc Callable Note Cont 11/14/2020 2.2% Due: 12/14/2020 100.000 500,000.00 0.00 500,000.00 0.00 Maturity 12/31/2020 912796TY5 5,000,000.00 US Treasury Bill 0.136% Due: 12/31/2020 100.000 5,000,000.00 0.00 5,000,000.00 0.00 Subtotal 41,360,000.00 41,360,000.00 0.00 41,360,000.00 0.00 TOTAL DISPOSITIONS 61,360,000.00 61,389,538.29 110,436.48 61,499,974.77 38,787.98 Other Transactions Cash Capital Distribution 10/01/2020 525ESCIB7 0.00 Lehman Brothers Note-Defaulted Due: 01/24/2021 0.000 472.22 0.00 472.22 0.00 Cash Capital Distribution 10/02/2020 525ESC0Y6 0.00 Lehman Brothers Note-Defaulted Due: 10/22/2049 0.000 1,568.51 0.00 1,568.51 0.00 Subtotal 0.00 2,040.73 0.00 2,040.73 0.00 TOTAL Other Transactions 0.00 2,040.73 0.00 2,040.73 0.00 September 30, 2020 through December 31, 2020 As of December 31, 2020 61 Transaction Ledger OCSE Lehman Exposure -Account #10284 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Other Transactions Cash Capital Distribution 10/01/2020 525ESCIB7 0.00 Lehman Brothers Note-Defaulted Due: 01/24/2021 0.000 472.22 0.00 472.22 0.00 Cash Capital Distribution 10/02/2020 525ESC0Y6 0.00 Lehman Brothers Note-Defaulted Due: 10/22/2049 0.000 1,568.51 0.00 1,568.51 0.00 Subtotal 0.00 2,040.73 0.00 2,040.73 0.00 TOTAL Other Transactions 0.00 2,040.73 0.00 2,040.73 0.00 September 30, 2020 through December 31, 2020 As of December 31, 2020 62 Important Disclosures 2020ChandlerAssetManagement,Inc,An IndependentRegisteredInvestmentAdviser. 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 Item5of ourFormADV 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. 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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 componentsthereof are provided on an "as is" basis andlicensee's use it at licensee's own risk.ICE data, its affiliates and their respectivethirdparty do notsponsor,endorse,or recommendchandlerassetmanagement,or any of itsproductsor 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 substitutefortheexerciseoftheirownjudgment. 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 generalcoulddeclinedue toeconomicconditions,especiallyduring periodsofrisinginterestrates. Ratingsinformationhave beenprovidedby Moody’s,S&P andFitchthroughdatafeedswe believetobe reliableas ofthe dateofthis statement,however wecannotguaranteeitsaccuracy. 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 paymentof bothprincipaland interestand carriesa AA+/Aaa/AAAby S&P,Moody’s andFitch respectively. As of December 31, 2020 63 Benchmark Disclosures ICE BAML 3-Month US Treasury Bill Index The ICE BAML US 3-Month Treasury Bill Index is comprised of a single issuepurchased 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. Pleasevisitwww.mlindex.ml.comformoreinformation) 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 moreinformation) 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 scheduleandaminimumamountoutstandingof$1billionforUSTreasuriesand$250millionforall othersecurities.(Index:BVA0.Pleasevisitwww.mlindex.ml.comformoreinformation) As of December 31, 2020 64 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. January 31, 2021 STAFF REPORT Mid-Year Certificates of Participation (COP) Report for the Period Ended December 31, 2020 Summary The Orange County Sanitation District (Sanitation District) began issuing Certificates of Participation (COPs) in 1990. These COPs were a part of our long-term financing plan that included both variable interest rate and traditional fixed rate borrowing. Following are the current outstanding debt issues of the Sanitation District: In May 2010, the Sanitation District issued $80 million of fixed rate BABs, Series 2010A at a true interest cost of 3.68 percent for the issue. In December 2010, the Sanitation District issued $157 million of fixed rate BABs, Series 2010C at a true interest cost of 4.11 percent for the issue. In October 2011, the Sanitation District issued $147.595 million of fixed rate COPs, Series 2011A refunding a portion of the Series 2000 variable rate debt and a portion of the Series 2003 fixed rate debt. The true interest cost for the issue is 2.61 percent. In March 2012, the Sanitation District issued $100.645 million of fixed rate COPs, Series 2012A refunding the Series 2003 fixed rate debt. The true interest cost for the issue is 3.54 percent. In August 2012, the Sanitation District issued $66.395 million of fixed rate COPs, Series 2012B refunding the Series 2000 variable rate debt. The true interest cost for the issue is 1.50 percent. With the issuance of Series 2012B, there remains no variable interest rate COPs at the Sanitation District. In August 2014, the Sanitation District 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. In February 2015, the Sanitation District 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. Mid-Year COP Report For the Period Ended December 31, 2020 Page 2 of 2 In March 2016, the Sanitation District 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, the Sanitation District 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, the Sanitation District 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, "COP Rate History Report,” shows the various fixed interest rates of the Sanitation District’s ten debt issues. Attachment 1. Graph - COP Rate History Report 0.00 1.00 2.00 3.00 4.00 5.00 4- D e c - 1 9 18 - D e c - 1 9 1- J a n - 2 0 15 - J a n - 2 0 29 - J a n - 2 0 12 - F e b - 2 0 26 - F e b - 2 0 11 - M a r - 2 0 25 - M a r - 2 0 8- A p r - 2 0 22 - A p r - 2 0 6- M a y - 2 0 20 - M a y - 2 0 3- J u n - 2 0 17 - J u n - 2 0 1- J u l - 2 0 15 - J u l - 2 0 29 - J u l - 2 0 12 - A u g - 2 0 26 - A u g - 2 0 9-S e p - 2 0 23 - S e p - 2 0 7- O c t - 2 0 21 - O c t - 2 0 4- N o v - 2 0 18 - N o v - 2 0 2- D e c - 2 0 16 - D e c - 2 0 30 - D e c - 2 0 RA T E ( % ) DATE COP RATE HISTORY REPORT DECEMBER 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 Mid-Year Financial Report This Page Intentionally Left Blank ORANGE COUNTY SANITATION DISTRICTFINANCIAL MANAGEMENT DIVISION 10844 Ellis Avenue Fountain Valley, California 92708-7018 714.962.2411 www.ocsan.gov 12/31/20 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2020-1366 Agenda Date:2/10/2021 Agenda Item No:4. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: BUSINESS ANALYSIS SERVICES FOR RESOURCE PROTECTION DIVISION GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Recommend to the Board of Directors to: A. Award a Professional Consultant Services Agreement to EEC Environmental, Inc. for Pretreatment Program Consulting Services, for the procurement of Business Analysis services to document Resource Protection division business processes, Specification No. CS-2020- 1167BD, for a total amount not to exceed $385,625; and B. Approve a contingency in the amount of $38,563 (10%). BACKGROUND Historically,the Pretreatment Program work process,documentation,and data management were automated using computer applications developed in-house by the Orange County Sanitation District’s (Sanitation District)Information Technology (IT)division.In 2016,the Sanitation District implemented a vendor-customized commercial off-the-shelf (COTS)application based on the in- house application.During this COTS implementation,hundreds of the Pretreatment Program processes were automated,including management of over 200,000 data points each year.However, the COTS application is not currently configured to support all of the needed work processes and new regulatory requirements.Consequently,the automation has become outdated and difficult to restore. RELEVANT STANDARDS ·Comply with environmental permit 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 ·Protect OC San assets Orange County Sanitation District Printed on 2/2/2021Page 1 of 3 powered by Legistar™ File #:2020-1366 Agenda Date:2/10/2021 Agenda Item No:4. PROBLEM The Sanitation District has the need to document and update business processes to meet State and Federal environmental regulations and electronic data submittal requirements,while maximizing effective automation of the Pretreatment Program.The existing COTS application is out of date and requires excessive staff time and effort. PROPOSED SOLUTION Procure the services of a consultant to gather information,research current regulations,and document Pretreatment Program business processes to restore effective work process automation. TIMING CONCERNS Electronic data submittal requirements from the USEPA will become effective on 12/21/2025.The proposed business analysis effort is the first step leading to the selection,development,and implementation of a new automated application. RAMIFICATIONS OF NOT TAKING ACTION A decision not to award the Business Analysis services would result in continued lack of documentation of business processes,potential compliance issues,and the inability to provide highly automated software. PRIOR COMMITTEE/BOARD ACTIONS September 2013 -Approved a Professional Services Agreement with enfoTech &Consulting,Inc., Specification CS-2012-525BD,for Implementation of a Commercial-off-the-shelf Pretreatment Information Management System,for an amount not to exceed $749,993;first year technical support and maintenance for the amount of $65,266; and approved a contingency of $81,526 (10%). ADDITIONAL INFORMATION On July 13,2020,the Sanitation District issued a Request for Proposal (RFP)for Business Analysis services;the RFP closed on September 15,2020.The Sanitation District received a single response from EEC Environmental,Inc.A panel consisting of three Sanitation District staff reviewed and ranked the proposal.Individual scoring was the chosen method of evaluation for this procurement. Members of the team performed an independent review of the proposal and later met as a group with the buyer to discuss their preliminary scores and discuss any questions/concerns they had.The proposal was evaluated based on the following criteria: CRITERION WEIGHT 1. Qualifications & Experience of Firm 25% 2. Proposed Staffing & Project Organization 20% 3. Work Plan 25% 4. Presentation/Interview 10% 5. Cost 20% Orange County Sanitation District Printed on 2/2/2021Page 2 of 3 powered by Legistar™ File #:2020-1366 Agenda Date:2/10/2021 Agenda Item No:4. CRITERION WEIGHT1. Qualifications & Experience of Firm 25% 2. Proposed Staffing & Project Organization 20% 3. Work Plan 25% 4. Presentation/Interview 10% 5. Cost 20% The vendor was invited for an interview.The interview was conducted on October 8,2020. Following the interview,the evaluation team scored the firm based on both the proposal and interview using the evaluation criteria and weighting listed above.The proposal was accompanied by a sealed cost proposal. The cost proposal was opened and negotiated. Based on these results,staff recommends selection of EEC Environmental,Inc.for the procurement of Business Analysis services to document Resource Protection division business processes for a total amount not to exceed $385,625.The term of this Agreement will begin upon effective date of Notice to Proceed. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance.This item has been budgeted.(FY2020-21 and FY2021-22 Budget,Section 6,Page 36,Line item: Professional & Contractual Services). ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·Professional Consultant Services Agreement Orange County Sanitation District Printed on 2/2/2021Page 3 of 3 powered by Legistar™ Orange County Sanitation District 1 of 10 Specification No. CS-2020-1167BD Version 080919 PROFESSIONAL CONSULTANT SERVICES AGREEMENT Pretreatment Program Consulting Services Specification No. CS-2020-1167BD 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 EEC Environmental with a principal place of business at 1 City Boulevard West, Suite 1800, Orange, CA 92868 (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 Pretreatment Program Consulting Services "Services” as described in Exhibit “A”; and WHEREAS, Consultant submitted its Proposal, dated September 15, 2020; and WHEREAS, on February 24, 2021, 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. 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 submitted September 15, 2020 and Best and Final Offer submitted January 11, 2021 Exhibit “B-1” Sub-Milestone Costs submitted January 11, 2021 Exhibit “C” Acknowledgement of Insurance Requirements Exhibit “D” OCSD 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. Orange County Sanitation District 2 of 10 Specification No. CS-2020-1167BD Version 080919 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 7:00 a.m. and 4:30 p.m. Pacific Time. 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 the Scope of Work, 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 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 Three Hundred Eighty-five Thousand, Six Hundred Twenty-five Dollars ($385,625.00). 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). Orange County Sanitation District 3 of 10 Specification No. CS-2020-1167BD Version 080919 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 Sub-milestones completed in accordance with Exhibit “A” and Exhibit “B-1”. OCSD, at its sole discretion, shall be the determining party as to whether the Sub-milestones 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 CS-2020-1167BD 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 completed within 730 calendar days from the effective date of the Notice to Proceed. 9. Extensions The term of this Agreement may be extended only by written instrument signed by both Parties. 10. Performance Time is of the essence in the performance of the provisions hereof. 11. Termination 11.1 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. 11.2 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. 11.3 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. 11.4 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. 12. 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 Orange County Sanitation District 4 of 10 Specification No. CS-2020-1167BD Version 080919 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. 13. 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. 14. 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. 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. 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. Orange County Sanitation District 5 of 10 Specification No. CS-2020-1167BD Version 080919 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. 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. Orange County Sanitation District 6 of 10 Specification No. CS-2020-1167BD Version 080919 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. 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. Orange County Sanitation District 7 of 10 Specification No. CS-2020-1167BD Version 080919 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. 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. Orange County Sanitation District 8 of 10 Specification No. CS-2020-1167BD Version 080919 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. OCSD 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 OCSD Contractor Safety Standards while working at OCSD locations. If during the course of the Agreement it is discovered that OCSD 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 OCSD 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. Orange County Sanitation District 9 of 10 Specification No. CS-2020-1167BD Version 080919 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. 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: John Shaffer, CEO/Principal EEC Environmental 1 City Boulevard West, Suite 1800 Orange, CA 92868 Each party shall provide the other party written notice of any change in address as soon as practicable. Orange County Sanitation District 10 of 10 Specification No. CS-2020-1167BD Version 080919 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 EEC ENVIRONMENTAL Dated: _________________ By: ___________________________________ ______________________________________ Print Name and Title of Officer ______________________________________ IRS Employer’s I.D. Number ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1437 Agenda Date:2/10/2021 Agenda Item No:5. FROM:James D. Herberg, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: PURCHASE OF AN IMAGING FLOWCYTOBOT (IFCB) GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve a sole source purchase order to McLane Research Laboratories,Inc.for an Imaging FlowCytobot for an amount not to exceed $148,939 including estimated tax and shipping. BACKGROUND The Imaging FlowCytobot (IFCB)is needed for real-time sampling and analysis of plankton,including harmful algal species,for our core and regional ocean monitoring studies as required by our ocean discharge permit administered by the California Regional water Quality Control Board and the United States Environmental Protection Agency.This request is for the purchase of new equipment to enhance our understanding of harmful algal blooms (HABs)in our ocean discharge area and to integrate it into a larger statewide sampling effort. RELEVANT STANDARDS ·Ensure the public’s money is wisely spent ·Comply with environmental permit requirements ·Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard ·Cultivate a highly qualified, well-trained, and diverse workforce PROBLEM The Orange County Sanitation District (Sanitation District)discharge of nutrients “shall not cause objectionable aquatic growths”as defined in the California Ocean Plan.Previous studies have shown that nutrients such as nitrogen and phosphorous in wastewater effluents can promote and support the growth of phytoplankton that may cause harmful algal blooms,or HABs.The California Ocean Protection Council (OPC)recently initiated a 5-year project to develop a statewide,real-time HAB monitoring program that utilizes IFCB technology to sample and analyze marine phytoplankton. Currently,the Sanitation District’s ocean monitoring program does not routinely sample forOrange County Sanitation District Printed on 2/3/2021Page 1 of 2 powered by Legistar™ File #:2021-1437 Agenda Date:2/10/2021 Agenda Item No:5. Currently,the Sanitation District’s ocean monitoring program does not routinely sample for phytoplankton.There is a notable gap in our understanding of this potential emerging threat to Orange County’s coastal waters. McLane Research Laboratories, Inc. is the only company that commercially produces the IFCB. PROPOSED SOLUTION Award a sole source purchase order to McLane Research Laboratories,Inc.for an Imaging FlowCytobot (IFCB)in the amount not to exceed $148,939.The data generated from the IFCB at the Newport Pier site will be integrated with comparable data from the statewide OPC HAB monitoring program and will improve our understanding of the presence and potential causes of HABs in the Sanitation District’s sampling area. TIMING CONCERNS There is an approximately 6-month delivery period for an IFCB.The initial statewide IFCB deployments will begin in the Summer 2021.Integration into the larger monitoring program would be delayed if the IFCB is not purchased in a timely manner. RAMIFICATIONS OF NOT TAKING ACTION Inability to comply with the requirements of our ocean discharge permit. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District’s Purchasing Ordinance (FY 2020 -2021 Budget: Section 8, Page 100). The cost for the IFCB system has been budgeted as capital equipment for fiscal year 2020-2021.The quoted amount of $135,300 includes the IFCB system,IFCB beads,and a one (1)year warranty. Sales tax is estimated to be $11,839, and Shipping estimated at $1,800.00 for a total of $148,939. Date of Approval Contract Amount Contingency 02/10/2021 NTE $148,939 ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: N/A Orange County Sanitation District Printed on 2/3/2021Page 2 of 2 powered by Legistar™ ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2021-1447 Agenda Date:2/10/2021 Agenda Item No:6. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FISCAL YEAR 2021-22 BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Approve the FY 2021-22 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2021-22 budget update. BACKGROUND For the budget process,the Administration Committee establishes the Budget Assumptions and approves the Budget Calendar. Staff will make a brief presentation at the Committee meeting. RELEVANT STANDARDS ·Ensure the public’s money is wisely spent ·Produce appropriate financial reporting ADDITIONAL INFORMATION Currently,there are no proposed changes to the Orange County Sanitation District (Sanitation District)Fiscal Policy.The Fiscal Policy is published in the FY 2020-21 and 2021-22 Budget document (Section 3, Pages 1-8), and is available on the Sanitation District’s website. ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·FY 2021-22 Preliminary Budget Assumptions ·Budget Calendar 2021-22 ·Presentation Orange County Sanitation District Printed on 2/2/2021Page 1 of 1 powered by Legistar™ FY 2021-22 Preliminary Budget Assumptions 1 Economic Assumptions  Inflation for Orange County in FY 2021-22 is projected to be 1.8 percent based on the 2020 forecasted percentage change in consumer price index (CPI) obtained from Chapman University. Revenue Assumptions  After a one-year rate increase postponement, OC San will resume following the Board approved Sewer Service Fee Rate Schedule, the single-family residence (SFR) rate will increase by $4 (1.2 percent) to $343 in FY 2021-22, which is less than the projected CPI.  Note that each $1 increase in the SFR rate generates approximately $900,000 per year.  The capital facilities capacity charge (CFCC) fee captures only those infrastructure costs that relate to additional capacity. The proposed CFCC fee approved by the Board in March 2018 will increase by 7.5 percent for FY 2021-22. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and replacement, will be supported through user fees.  Given the Facilities Master Plan adopted in December 2017, a rate study was completed in December 2017 to ensure that the CFCC fee methodology remains equitable and to confirm that an appropriate share of system costs would be recovered from new development.  Due to recent enacted legislation, a follow-up to the rate study completed in 2017 for the CFCC methodology was completed in 2020 for cost recovery for Accessory Dwelling Units (ADU).  Revenues will be budgeted to reflect little growth in Equivalent Dwelling Unit (EDU) connections that have remained flat over the past five years.  Permit user rates for flow will increase by 3.8 percent, Biochemical Oxygen Demand (BOD) will increase by 0.5 percent and Total Suspended Solids (TSS) will increase by 2.7 percent for FY 2021-22 based upon the Rate Study completed in December 2017.  Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre.  Annexable property in OC San’s service area sphere is minimal; consequently, no FY 2021-22 income from annexation fees is anticipated.  Property tax revenues are preliminarily estimated to increase by approximately three percent from FY 2020-21 to $102,034,000. A two percent annual increase in Assessed Value is authorized by the state constitution and is included in the increases noted above. The additional increase in assessed value is from authorized increases to market value when property is sold at a higher value.  Earnings on the investment of OC San’s operating cash and reserves will be budgeted at 1.0 percent of the average cash and investment balance projected for the fiscal year.  No additional debt issuance is scheduled for FY 2021-22. FY 2021-22 Preliminary Budget Assumptions 2 Operating Assumptions  Operating expenses are expected to approximate the adopted FY 2020-21 budget of $174 million.  Average daily flows are projected at 188 mgd for FY 2020-21 and 188 MGD for FY 2021-22. The FY 2020-21 flow projection of 188 mgd reflects an increase of 2 mgd from the actual for the first 5 months of the current year and equals the final actual flow for FY 2019-20. Employee/Staffing Assumptions  Staffing level is expected to remain relatively flat. The total FY 2020-21 authorized staffing level is 639.00 FTEs, excluding Management Discretion positions.  Vacant positions as of 12/31/2020 are budgeted at 50 percent of step 1 for the remainder of FY 2020-21 and at 100 percent of step 2 for FY 2021-22.  New positions will be projected at 100 percent of step 1 for FY 2021-22.  A 3.0 percent vacancy factor on authorized positions has been budgeted for FY 2021-22. The actual vacancy factor is currently running at 4.5 percent. This vacancy factor accounts for time spent for recruitment and turnover.  The Memorandums of Understanding (MOUs) for the Orange County Employees Association (OCEA), the Local 501, and the Supervisor and Professional (SPMT) groups expire on June 30, 2022. Salary adjustments will be included in the budget for COLA based upon the current MOUs.  Retirement costs for employees enrolled in Orange County Employees Retirement System (OCERS) Plan H are estimated at a rate of 13.22 percent of the employee’s base salary for FY 2021-22, down from 13.24 percent in FY 2020-21. The rates for Plan H include OC San’s pickup of 3.5 percent of employees’ required contributions. Employees enrolled in OCERS Plan B are estimated at a rate of 11.23 percent of the employee’s base salary for FY 2021-22, up from 11.11 percent in FY 2020-21. All employees hired on or after January 1, 2013 are enrolled in OCERS Plan U and are estimated at a rate of 9.88 percent for FY 2021-22, down from 10.02 percent in FY 2020-21. Interns are not enrolled in OCERS, so their retirement benefits are calculated at 6.2 percent (FICA rate).  Other employee benefits and insurances will be budgeted to increase in FY 2021-22 by moderate but yet to be determined amounts. Materials, Supplies, & Services Assumptions  The proposed operating budget will continue to reflect an emphasis on safety, security, and maintenance of plant assets and infrastructure.  An amount equal to half of one percent of the Operating materials and services budget will be a contingency for prior year re-appropriations. Since the current year’s budget lapses on June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year. FY 2021-22 Preliminary Budget Assumptions 3  An amount equal to 0.85 percent of the Operating materials and services budget will be the General Manager’s contingency budget. These funds will be allocated to appropriate line items during the year after requests and justifications for unanticipated needs are approved by the General Manager.  Resource needs for strategic initiatives will be included in the budget. Capital Improvement Program Assumptions  The FY 2021-22 cash flow budget, based on the most current Validated Capital Improvement Program (CIP), is the target.  The baseline CIP cash flow for FY 2021-22 is $241 million.  Continual evaluation of the CIP by Financial Management, Project Management Office and Planning may result in deferral or reduction of some projects and a resultant increase in Operations & Maintenance (O&M) repair costs for materials and services, if the net cash flow impact is a decrease.  For the first five months of FY 2020-21, $51.3 million of the $147.6 million CIP budget, approximately 34.8 percent, was expended. Debt Financing  When required, OC San issues Certificates of Participation (COP) as needed to fund the CIP and to maintain reserves.  COP debt will only be used for CIP and capital expenses, not for operating expenses.  No additional new debt issuance is scheduled for FY 2021-22.  Capital financing plans no longer include future borrowings over the next ten years as the approved user fee schedule is considered sufficient.  Borrowing will be included only for facilities which do not add capacity and that are funded by all users for replacement, rehabilitation, and improved treatment.  Upon COP’s becoming callable or maturing, a determination will be made as to the benefit of paying off the obligation or refinancing the debt.  There is consideration of refunding or paying off the callable 2011A issue, 2012 A/B issues and / or the 2018A maturing issue. Reserve Assumptions The existing reserve policy is summarized as follows: ► A cash flow criterion will be established to fund operations, maintenance, and certificates of participation expenses for the first half of the fiscal year, prior to receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this criterion will be established as the sum of an amount equal to six months operations and maintenance FY 2021-22 Preliminary Budget Assumptions 4 expenses and the total of the annual debt (COP) service payments due in August each year. ► An operating contingency criterion will be established to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer service fees were considered and adopted. The level of this criterion will be established at an amount equal to ten percent of the annual operating budget. ► A capital improvement criterion will be maintained to fund annual increments of the capital improvement program. The target level of this criterion has been established at one-half of the average annual capital improvement program over the next ten years. ► A catastrophic loss, or self-insurance, criterion will be maintained for property damage including fire, flood, and earthquake, for general liability and for workers' compensation. This criterion is intended to work with purchased insurance policies, FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake, of which OC San currently has limited outside insurance coverage of $25 million, has been estimated to be as high as $1.3 billion. The level of this criterion has been set at $100 million should such a catastrophic event occur. This criterion amount will assist OC San with any short-term funding needs until Federal and State assistance becomes available. ► Accumulated capital funds will be set aside for certain specific, short-term capital improvements as the need and availability arise. ► A capital replacement/renewal criterion has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives. Based on the Facilities Evaluation Report completed in December 2017, the current replacement value of these facilities is estimated to be $3.56 billion for the collection facilities and $7.18 billion for the treatment and disposal facilities. The initial criterion level has been established at $75 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030. ► Provisions of the various certificates of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are not available for the general needs of OC San and must be maintained at specified levels. The current level of required COP service reserves is projected to be $170.8 million. ► Accumulated funds exceeding the levels specified by OC San policy will be maintained for future capital improvements and rate stabilization. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this criterion. FY 2021-22 Budget Update Manual Tasks Responsibility Event/Due Date PHASE I – BUDGET PREPARATION Preliminary Budget Assumptions Identified Financial Planning 12/29/20 Preliminary Budget Assumptions & Draft Budget Calendar Presented to Managers Team (MT) Financial Management 1/11/21 Preliminary Budget Assumptions & Draft Budget Calendar Presented to Executive Management Team (EMT) Financial Management 1/11/21 Capital Improvement Program (CIP) – Annual Resource Forecast complete – review resources Needed to complete active CIP projects. Engineering Project Management Office (PMO) 1/21 /21 Preparation for Budget Kickoff / Training Session:  Salary and benefits download to Excel worksheets  Develop line item worksheets with mid-year actual expense Prepare/update budget instruction manual Financial Planning 1/21/21 Budget Kickoff / Training Session:  Distribute budget instruction manual update  Conduct budget training session  Review submission deadlines Financial Planning 1/28/21  Operating Divisional Budgets: New Position and Change to Existing Position Decision Packages Due to Human Resources (Laura Maravilla, Ext. 7007) with copies to Lina Hsiao Divisional Budget Coordinators 2/5/21 Operating Budget: Promotional Items Request Forms and Conference Request Forms Due to Public Affairs (Jennifer Cabral, Ext. 7581) Divisional Budget Coordinators 2/5/21 Capital Equipment Budget: Vehicle Capital Equipment Decision Packages Due to Fleet Services (Bob Bell, Ext. 7214) Divisional Budget Coordinators 2/5/21 Capital Equipment Budget: Computer Capital Equipment Decision Packages Due to Information Technology (Rob Michaels, Ext. 7260) Divisional Budget Coordinators 2/5/21 Budget Assumptions Presented to Administration Committee Financial Management 2/10/21 Mid-Year Financial Report to Administration Committee Financial Management 2/10/21 Budget Calendar Division Budget Packages Due to Financial Planning:  Projection of 2020-21 actual operating costs  Proposed operating costs for 2021-22  Operating Budget Expense Detail  Meetings, Memberships and Training Requests  Capital Equipment Decision Packages (other than computer and vehicle decision packages which were due on 2/5/21)  New program decision packages (Financial Planning will compile and provide PDF document to each division for printing and use during the budget review process. Finance Planning will update salary information into the Preliminary Division Budget Document.) Divisional Budget Coordinators 2/19/21 Mid-Year Financial Report to Board Financial Management 2/24/21 Complete the Compilation of the Preliminary Division Budget Update Packages Financial Planning 2/26/21 CIP – Project Budget Reviews Complete Engineering PMO 3/1/21 Department Budget Narrative – Updates of the Budget Executive Summary Due to Financial Planning Department Budget Coordinator 3/19/21 CIP – Validated CIP budgets delivered to IT/Finance Engineering PMO 3/29/21 PHASE II - BUDGET REVIEW Divisional Budgets - Distribution of Preliminary Line Item Requested Budgets to Department Heads and Managers along with Analysis/Questions for Review Financial Planning 3/1/21 Operating Budget – Information on New Positions, Position Upgrades & Reclassifications Submitted to the General Manager Human Resources 3/5/21 Operating Budget – Division Budget Review Meetings with Finance and Division Representatives Financial Planning & Division Representatives 3/8/21 – 3/12//21 Operating Budget - Completion of Preliminary Divisional Budgets and Compilation into Departmental Budgets Financial Planning 3/15/21 Operating Budget – Recommendations to General Manager Financial Planning 3/15/21 Final Operating Budget – General Manager Review of Budget Recommendations Financial Planning, General Manager, & Department Heads 3/22/21 – 3/26/21 FY 2021-22 Budget Update Manual Capital Equipment Budget – Requests Reviewed & Approved Financial Planning, General Manager, & Department Heads 3/22/21 – 3/26/21 Operating Budget – Report of General Manager's Decisions on New Positions, Position Upgrades & Reclassifications Submitted to the Financial Planning General Manager 3/29/21 CIP – Approve Proposed CIP Budget EMT 3/22/21 CIP – Operations Committee information item – Review of Proposed Budget Engineering 5/7/21 PHASE III - BUDGET PRESENTATION Operating Budget – Presentation of Preliminary Budget Update by Division/Department to EMT Financial Management 4/12/21 Operating Budget Update – Overview to Administration Committee Financial Management 4/14/21 CIP – Final CIP Budget Document Preparation and Incorporation into Final Budget Document Financial Planning 4/19/21 CIP – Review draft of Final Budget Document pages with Engineering Planning & PMO Financial Planning 4/19/21 CIP – Section 8 Executive Summary complete Engineering Planning 4/26/21 Initial – Proposed Budget finalized Financial Planning 4/28/21 General Manager’s Budget Message Completed General Manager/ Financial Management 5/10/21 Approval of General Manager’s Budget Message General Manager 5/13/21 Final - Proposed Budget to Printer Financial Planning 5/24/21 PHASE IV - BUDGET DELIBERATIONS Final Draft - Proposed 2019-20 Budget Update Presented to Committees Financial Management Ops – 6/2/21 Admin – 6/9/21 Public Hearing & Board Adoption Board of Directors 6/23/21 PHASE V – DISTRIBUTION OF BUDGET Final line item budget and equipment budgets posted in H:\ntglobal Financial Planning 7/5/21 2/2/2021 1 OC San FY 2021-22Budget Assumptions Presented by: Wally Ritchie, Controller Administration Committee February 10, 2021 Economics • Inflation for Orange County is projected to be approximately 1.8%. Revenue • After a one-year rate increase postponement, OC San will resume following the Board approved Sewer Service Fee Rate Schedule, the single-family residence (SFR) rate will increase by $4 (1.2 percent) to $343 in FY 2021-22. Reserves • Current reserve policy is unchanged. Budget Development Assumptions 2 1 2 2/2/2021 2 Comparison - SFR Rates LA C S D OR A  Lo m a IR W D Fr e s n o OC S D Ea s t  Ba y  MU D Un i o n  Sa n i t a r y Du b l i n  Sa n  Ra m o n Sa c r a m e n t o Ci t y  of  LA Ce n t r a l  Co n t r a  Co s t a   Va l l e j o Sa n  Di e g o Sa n  Fr a n c i s c o $1,169 $715 $636 $598 $573 $469 $444 $439 $455 $430 $339 $313 $309 $296 $213 $- $200 $400 $600 $800 $1,000 $1,200 San Francisco Vallejo Sanitation/Flood Control District City of Los Angeles Central Contra Costa Sanitary District City of San Diego Dublin San Ramon Services District Sacramento County East Bay MUD Union Sanitary District City of Hayward OC San Irvine Ranch Water District City of Fresno Oro Loma Sanitary District Los Angeles County Annual Single Family Residential Rates(July 2020) 3 • Average daily flows are projected to be 188 mgd for FY2021-22. This projection reflects an expected increase of 3.9 mgd from the actual for the first six months of the current year. • Operating expenses are expected to approximate the previously adopted FY 2021-22 budget of $174 Million. Operations 4 3 4 2/2/2021 3 • Staffing level is expected to remain essentially flat. The current authorized staffing level is 639 FTE. • A 3% vacancy factor will be budgeted for authorized positions. • Salary adjustments will be based on current MOUs. • Moderate increases in benefits are anticipated. Staffing 5 • Cash flow assumptions are based on the most recent validated CIP and the 2017 Facilities Master Plan. • Baseline CIP is $241 million for FY 2021-22. Capital Improvement Program (CIP) 6 5 6 2/2/2021 4 • The District will issue debt in the form of Certificates of Participation (COP) as the chief mechanism for funding the CIP and to maintain reserves if required. • No additional “new money” debt issuance is scheduled for FY 2021-22. • Maturing or Callable Debt will be reviewed for payoff or refinance. Debt Financing 7 Budget Summary Revenues FY 21-22 Ten Year Cash Flow Fees and Charges $ 359M (73%) $ 3,734M (72%) Property Taxes 102M (21%) 1,129M (22%) Interest / Other 33M ( 6%) 292M ( 6%) Total Revenues $ 494M $ 5,155M Expenditures FY 21-22 Ten Year Cash Flow Operating $ 174M (30%) $ 1,947M (35%) CIP / RRR 241M (41%) 2,747M (50%) Debt Service 67M (11%) 650M (12%) Reduction of LT Liab. 102M (17%) 102M ( 2%) Other 7M ( 1%) 36M ( 1%) Total Outlays $ 591M $5,482M Net Surplus (Deficit) $ (97M) $ (327)M 8 7 8 2/2/2021 5 • Budget Assumptions February • Review of Revenues March • Review of Expenditures April Budget - Key Meeting Dates 9 • Operations CommitteeBudget Overview May, June • Administration Committee Budget Elements ReviewMay, June • Board Meeting FY 21-22 Budget Update Approval June Budget - Key Meeting Dates 10 9 10 2/2/2021 6 Questions ? 11 11 ADMINISTRATION COMMITTEE Agenda Report Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 File #:2020-1327 Agenda Date:2/10/2021 Agenda Item No:7. FROM:James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: INVESTMENT PERFORMANCE RESULTS GENERAL MANAGER'S RECOMMENDATION RECOMMENDATION: Information Item. BACKGROUND Chandler Asset Management (Chandler)serves as the Orange County Sanitation District’s (Sanitation District)Investment Manager.Chandler’s Deputy Chief Investment Officer,William Dennehy II,CFA,will be providing an informational presentation on the performance of the Sanitation District’s short-term and long-term investment portfolios over the past year. RELEVANT STANDARDS ·Ensure that investment proposals and decisions are based on clearly defined standards ·Orange County Sanitation District Investment Policy ·Ensure the public’s money is wisely spent ATTACHMENT The following attachment(s)may be viewed on-line at the OC San website (www.ocsan.gov)with the complete agenda package: ·OC San Staff Presentation ·Chandler Presentation Orange County Sanitation District Printed on 2/2/2021Page 1 of 1 powered by Legistar™ 2/2/2021 1 OC San Reserves & Investments Presented by: Wally Ritchie, Controller Administration Committee February 10, 2021 1) Next Year's Dry Period (Cash Flow Reserve) 50% of the Operating Budget 2) Operating Contingencies 10% of Operating Budget 3) Next Year's Dry Period Debt Service 100% of August Certificates of Participation (COP) Debt Service 4) Debt Service Reserve 10% of the Outstanding COPs 5) Capital Improvement Reserve 50% of average Capital Improvement Program (CIP) for the next ten years 6) Operating & Capital Share of Catastrophe Funds 7) Replacement and Refurbishment 2% of the average CIP per year Seven Reserve Criteria 2 1 2 2/2/2021 2 Next Year's Dry Period (Cash Flow Reserve) 50% of the Operating Budget Next Year's Dry Period Debt Service 100% of August COP Debt Service Debt Service Reserve 10% of the Outstanding COPs Non-Discretionary Criteria 3 Operating Contingencies 10% of the Operating Budget Capital Improvement Reserve 50% of the average CIP for the next ten years Operating & Capital Share of Catastrophe Funds Replacement and Refurbishment 2% of the CIP Per Year Discretionary Reserve Criteria 4 3 4 2/2/2021 3 First • Provide safety of principal Second • Provide sufficient liquidity Third • Earn a commensurate rate of return consistent with the constraints imposed by the objectives listed above Investment Objectives 5 The Orange County Sanitation District’s Investment Policy is consistent with California Government Code •Long-Term • Compares to the ICE BAML 1-5 Year • Corporate Government Rated AAA – A Index •Short-Term • Compares to the 3-month T-Bill rate• Operates with a maximum maturity of 1-year Portfolios - Long-Term and Short Term 6 5 6 2/2/2021 4 • Approximately $658 million Long-Term Portfolio – Asset Allocation Category Percent US Treasury 34% Agency 32% US Corporate 21% Supranational 7% Asset Backed Sec 4% Other 2% Total 100% 7 • Approximately $226 million Short-Term Portfolio – Asset Allocation Category Percent US Treasury 81% Agency 9% Money Market 4% US Corporate 3% Negotiable CDs 2% Supranational 1% Total 100% 8 7 8 2/2/2021 5 Questions ? 9 9 CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending December 31, 2020 Orange County Sanitation District SECTION 1 Firm Overview SECTION 2 Economic Update SECTION 3 Account Profile Table of Contents As of December 31, 2020 1 SECTION |Section 1 |Firm Overview 2 Specializing in Investment Management for Public Agencies California Based, Independent & Employee-Owned •Fixed income specialist since 1988 •Founded by public investment professionals •Serve institutions with public sector focus •Headquartered in San Diego, CA Custom Investment Programs •Investment solutions based on your risk profile and return goals •Strategies for operating, short, and long term reserves •Direct contact with investment management team Stable Team of Investment Professionals •Team of investment professionals average over 25 years portfolio management experience •Disciplined, repeatable investment philosophy and process •Proprietary investment analysis “We believe if we do what is right for our clients, our own success will follow.” Assets Under Management $22.2 Billion Corporate ≤1% Non Profit1% Healthcare 18% Sub-advised 1% Public 80% Chandler Asset Management Assets as of December 31, 2020.3 Lasting Partnerships with Neighbors and Peers Local Water District, Sanitation District, and Utilities Clients Client Name Managed Since Coachella Valley Water District 2019 East Orange County Water District 2016 Eastern Municipal Water District 2018 Elsinore Valley Municipal Water District 2017 Moulton Niguel Water District 1995 Orange County Sanitation District 2014 Rancho California Water District 1996 San Bernardino Municipal Water Department 2013 Temescal Valley Water District 2016 Three Valleys Municipal Water District 2009 Upper San Gabriel Mun. Water District 2014 Walnut Valley Water District 2009 West Valley Water District 2018 Western Municipal Water District 2001 Neighboring Public Agency Clients Client Name Managed Since City of Brea 1996 California Insurance Pool Authority 2013 City of Buena Park 2005 City of Costa Mesa 2013 City of Fountain Valley 2015 City of La Habra 1999 City of Mission Viejo 1995 City of Newport Beach 1991 City of San Clemente 2013 City of San Juan Capistrano 2018 City of Westminster 2003 East Orange County Water District 2016 Moulton Niguel Water District 1995 Orange County Sanitation District 2014 Orange County Transportation Authority 2018 Transportation Corridor Agencies 2014 Chandler’s water agencyclients and sample Inland Empire area clients as ofDecember31,2020.Both listsonly include clients that have given permission to belisted.It is not known whether theclients listedapprove or disapprove ofChandler Asset Management andthe advisory services provided.Includes discretionary and non-discretionary relationships. 4 Our Experienced Team is a Resource for the District Investment Professionals Responsibility Industry Experience Firm Tenure Martin Cassell, CFA CEO, Chief Investment Officer Leads the investment team, firm oversight 1987 1991 William Dennehy II, CFA Deputy Chief Investment Officer Implements portfolio strategies, performs credit analysis, and serves as Co-Chair of Credit Committee and Economic and Market Analysis Committee 1992 2011 Scott Prickett, CTP Deputy Chief Investment Officer Implements portfolio strategies, monitors alignment with client objectives, and serves as Co-Chair of Economic and Market Analysis Committee 1987 2014 Jayson Schmitt, CFA Deputy Chief Investment Officer Implements portfolio strategies, performs credit analysis, and serves as Co-Chair of Quantitative Analysis Committee and Sector Committee 1994 1995 Julie Hughes Senior Portfolio Strategist Implements portfolio strategies and monitors alignment with client objectives and policies 1993 2014 Christopher McCarry, AIF Senior Portfolio Strategist Implements portfolio strategies and monitors alignment with client objectives and policies 2001 2013 Carlos Oblites Senior Portfolio Strategist Implements portfolio strategies and monitors alignment with client objectives and policies 1995 2017 Ted Piorkowski, CFA Senior Portfolio Manager Implements portfolio strategies, performs credit analysis 1987 1999 Shelly Henbest, CFA Senior Credit Analyst Research and credit analysis; Co-Chair of Credit Committee 2000 2009 Genny Lynkiewicz, CFA Senior Portfolio Manager Implements portfolio strategies, performs credit analysis, and serves as Co-Chair of Sector Committee 2000 2015 Devin Weinstein, CFA Portfolio Manager Implements portfolio strategies, performs credit analysis 2015 2018 Client Service and Operations Responsibility Industry Experience Firm Tenure Nicole Dragoo, IACCP COO, Chief Compliance Officer Responsible for regulatory compliance, directly manages investment operations and oversees firm’s administrative functions 2000 2001 Don Penner Director of National Accounts Develops the firm’s sales, client service and marketing strategies 2001 2010 Ryan Tauber Managing Director, Business Development Leads the marketing and relationship management team 1999 2020 Mia Corral Brown Senior Relationship Manager Client service and relationship management 1997 2004 Jeannie Palmero Senior Client Service Manager Client service and reporting 1994 2007 5 Section 2|SECTION |Section 2 |Economic Update 6 Economic Update    Recent economic data suggests that the economy has lost some momentum.We believe the near-term outlook remains challenging as the labor market remains under pressure and many regions have ongoing business restrictions due to the pandemic.However,the recent passage of a new $900 billion COVID-19 fiscal relief bill should help cushion the economy over the next few months,and the Biden Presidential administrationis already laying the groundwork for another round of fiscal stimulus.We also remain optimistic about progress on vaccines and expect more widespread distribution in the second and third quarter of 2021.We believe the distribution of vaccines and therapeutics will help fuel the economic recovery later this year.We also expect the Fed’s highly accommodative monetary policy framework will continue to provide support for the financial markets. The Federal Open Market Committee (FOMC)kept monetary policy unchanged at their January meeting as expected,with the fed funds target rate in a range of 0.0%to 0.25%.The Fed also continues to purchase $80 billion of Treasuries permonth, and $40 billion of agency mortgage-backed securities per month.The Fed intends to remain highly accommodative until their goals of maximum employment and higher inflation are achieved.Fed Chair Powell said it would be premature to begin talking abouttapering their asset purchases and said they will telegraph their plans well in advance of any changes in monetary policy.Notably, Chair Powell also said that the Fed believes inflationwill pick up in the coming months, but the increase is likely to be transient.As such,we expect the Fed to look through any near-term increase in inflation,even ifit begins to exceed 2.0% this spring, and is likely to keep policy on hold for at least the next 6-12 months. In 2020,the yield on 2-year Treasuries was down 145 basis points to 0.12%and the yield on 10-year Treasuries was down about 100 basis points to 0.91%.The yield curve steepened modestly at year-end and continued to steepen in January, likely due in part to favorable developments on the vaccine front.In January,the yield on 2-year Treasuries edged down about one basis point while the yield on 10-year Treasuries increased 15 basis points.We believe the Treasury yield curve is poised to steepen modestly further in 2021 as the economy reopens,driven by an increase in longer-term rates as the front end of the curve is likely to remain anchored near 0.0%. 7 Paycheck Protection Program Small Business Farmers/Ranchers Payments to Individuals, Unemployment Assistance K-12 Schools, Higher Education Vaccine Purchases, Distribution, Testing Rental Assistance Food Stamps/Nutrition Childcare Sector Airlines, Mass Transit, Hwys, Airports, Amtrak Clean Energy Broadband Business $337 Billion (37%) Individuals $286 Billion (32%) $284 billion $40 Billion $13 Billion $286 Billion $82 Billion $68 Billion $25 Billion $13 Billion $10 Billion $45 Billion $35 Billion $7 Billion Phase 4 Fiscal Stimulus $908 Billion Schools $82 Billion (9%) Vaccination $68 Billion (7%) Safety Net $48 Billion (5%) Transportation $45 Billion (5%) Other $42 Billion (5%) $3.6 Trillion Stimulus And Counting Source: U.S. Congress Fiscal Package Amount CARES Act $2.23 Trillion Coronavirus Relief Bill $484 Billion Phase 4 Stimulus $908 Billion Total So Far $3.6 Trillion 8 Federal Reserve Source: Federal Reserve Source: Bloomberg Last year,the Fed took a wide range of aggressive actions to help stabilize and provide liquidity to the financial markets.The Fed 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.Last year,policymakers reinstated the Commercial Paper Funding Facility and Money Market Mutual Fund Liquidity Facility.The Fed also established the Primary Market Corporate Credit Facility,Secondary Market Corporate Credit Facility,Term Asset-Backed Securities Loan Facility,Paycheck Protection Program Liquidity Facility,Main Street Lending Facility,and Municipal Liquidity Facility.The Fed has also provided short-term funding through large-scale repo operations and lowered the reserve requirement for depository institutions. Notably, many of the Fed's lending facilities expired at the end of 2020,including the Fed’s corporate credit,asset-backed securities,municipal lending, and Main Street Lending programs. 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 8,000,000 Federal Reserve Balance Sheet Assets In $ m i l l i o n s 9 Source: US Department of Labor Source: US Department of Labor Employment U.S.nonfarm payrolls declined by 140,000 in December.It was the first monthly decline in nonfarm payrolls since April of last yearand came in well below expectations for a 50,000 gain.The monthly decline was led by the leisure and hospitality sector which experienced a 498,000 net decline in payrolls in December,along with modest declines in government jobs and education and health services.The unemployment rate was unchanged in December at 6.7%and has improved significantly from the peak of 14.8%last April.Nevertheless,more than 10.7 million people remain unemployed.Workers who classified themselves as employed butabsent from work in December continued to understate the unemployment rate by about 0.6%.The U-6 underemployment rate,which includes those who are marginally attached to the labor force and employed part time foreconomic reasons,remained high butdeclined to 11.7%in December from 12.0%in November.The labor participation rate was unchanged at 61.5% in December and remains well below pre-pandemic levels. -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 ( % ) 10 Initial Claims for Unemployment 847 914 927 784 782 806 892 862 716 787 748 711 757 758 4,771 4,974 5,175 5,072 5,198 5,322 5,507 5,781 5,527 6,089 6,370 6,798 7,222 - 2,000 4,000 6,000 8,000 10,000 12,000 In t h o u s a n d s Initial Jobless Claims Continuing Claims Initial Claims For Unemployment October 23, 2020 -January 22, 2021 In the most recent week,the number of initial jobless claims decreased to 847,000 compared to 914,000 in the prior week.The level of continuingunemployment claims (where the data is lagged by one week)also declined slightly to about 4.8 million from roughly 5.0 millionin the prior week.Although continuing jobless claims are much lower than the peak of nearly 25 million last May,they remained well above the 2019 average of 1.7 million. Source: US Department of Labor 11 Source: US Department of Labor Source: US Department of Commerce Inflation The Consumer Price Index (CPI)was up 1.4%year-over-year in December,versus up 1.2%year-over-year in November.Core CPI (CPI less food and energy)was up 1.6%year-over-year in December,unchanged from November.The Personal Consumption Expenditures (PCE)index was up 1.3%year-over-year in December,versus up 1.1%year-over-yearin November.Core PCE,which is the Fed's primary inflation gauge,was up 1.5% year-over-year in December, versus up 1.4% year-over-year in November. Inflation remains below the Fed's longer-run 2.0% 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 12 Source: The Conference Board Source: Federal Reserve Bank of Chicago Economic Activity The Conference Board’s Leading Economic Index (LEI)rose 0.3%in December (following a 0.7%increase in November)but remained down 1.7%year-over-year.According to the Conference Board,a decelerating pace of improvement in the LEI in recent months suggests that economic growth continues to moderate. However,the Conference Board expects the economy to gain momentum throughout the year. Meanwhile,the Chicago Fed National Activity Index (CFNAI)increased to 0.52 in December from 0.31 in November.On a 3-month moving average basis,the CFNAI edged up to 0.61 in December from 0.59 in November.The index improved on both a one month and 3-month basis, and a positive index reading corresponds to above trend growth. -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 13 Source: US Department of Commerce Source: US Department of Commerce 3/20 6/20 9/20 12/20 -4.8% -24.0% 25.4% 1.7% -1.6% -8.8% 12.0% 4.1% 1.1% 0.6% -3.2% -1.5% 0.1% 1.2% -0.4% 0.0% 0.1% -0.4% -0.4% -0.2% -5.0% -31.4% 33.4% 4.0% Components of GDP Federal Government Expenditures State and Local (Consumption and Gross Investment) Net Exports and Imports Total Gross Private Domestic Investment Personal Consumption Expenditures -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Gross Domestic Product (GDP) According to the advance estimate,real US gross domestic product (GDP)grew at an annualized rate of 4.0%in the fourth quarter of 2020 (slightly below expectations of 4.2%),following 33.4%growth in the third quarter and a 31.4%annualized decline in the second quarter. Personal consumption expenditures rose at an annual rate of 2.5%in the fourth quarter,falling short of the 3.1%consensus estimate.We believe the resurgence of the virus in the fourth quarter and the delay in fiscal relief contributed to the slower than expected growth.The consensus forecast for US gross domestic product growth in 2021 is 4.1%,following a 3.5%decline in 2020.The consensus estimate calls for GDP growth to moderate in the current quarter to an annualized rate of 2.3%.GDP growth is expected to reaccelerate in the second and third quarter of this year, as vaccine distribution becomes more widespread. 14 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 Jan-21 Oct-20 Jan-20 Yi e l d ( % ) Bond Yields Treasury yields are much lower on a year-over-year basis.The 3-month T-bill yield was down 149 basis points,the 2-year Treasury yield was down 120 basis points,and the 10-Year Treasury yield was down 44 basis points,year-over-year,at January month-end.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. 15 SECTION |Section 3 |Account Profile 16 Compliance As of December 31, 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. The Orange County Sanitation District’s Investment Policy is consistent with California Government Code. 17 Portfolio Characteristics Orange County Sanitation District Long Term 12/31/2020 9/30/2020 Benchmark*Portfolio Portfolio Average Maturity (yrs)2.68 2.62 2.74 Average Modified Duration 2.59 2.44 2.52 Average Purchase Yield n/a 1.78%1.97% Average Market Yield 0.26%0.22%0.26% Average Quality**AAA AA+/Aa1 AA/Aa1 Total Market Value 657,628,543 625,217,609 *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. As of December 31, 2020 18 Orange County Sanitation District Long Term Sector Distribution ABS 3.5% Agency 31.9% CMO 0.1% Corporate 21.1% Money Market Fund FI 1.6% Mortgage Pass Thru 0.1% Municipal Bonds 0.1% Supranational 6.7% US Treasury34.2% Negotiable CD 0.8% December 31, 2020 September 30, 2020 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% As of December 31, 2020 19 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 December 31, 2020 0 -0.25 0.25 -0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 10.0% 3.4% 6.7% 19.4% 22.2% 22.4% 15.9% 0.0% Benchmark*0.3% 0.2% 1.8% 32.9% 28.8% 20.1% 16.0% 0.0% *ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index Duration Distribution Orange County Sanitation District Long Term As of December 31, 2020 20 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 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 0.21%4.39%4.52%3.51%2.62%N/A 2.26% ICE BAML 1-5 Yr US Corp/Govt Rated AAA-A Index 0.15%4.43%4.52%3.50%2.56%N/A 2.22% 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 includesinterestearnings,realized and unrealized gains and losses in the portfolio. Investment Performance Orange County Sanitation District Long Term As of December 31, 2020 21 Compliance As of December 31, 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 The Orange County Sanitation District’s Investment Policy is consistent with California Government Code. 22 Portfolio Characteristics Orange County Sanitation District Liquid 12/31/2020 9/30/2020 Benchmark*Portfolio Portfolio Average Maturity (yrs)0.16 0.33 0.32 Average Modified Duration 0.15 0.33 0.32 Average Purchase Yield n/a 0.13%0.17% Average Market Yield 0.07%0.14%0.17% Average Quality**AAA AAA/Aaa AAA/Aaa Total Market Value 225,705,362 128,667,549 *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. As of December 31, 2020 23 Orange County Sanitation District Liquid Sector Distribution Agency 8.6% Corporate 3.2% Money Market Fund FI 4.7% Negotiable CD 1.8% Supranational 0.4% US Treasury 81.2% December 31, 2020 September 30, 2020 Agency 10.0% Corporate 7.4% Money Market Fund FI 2.3% Negotiable CD1.2% Supranational 0.8% US Treasury 77.3% Commercial Paper 1.2% As of December 31, 2020 24 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 December 31, 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 45.6% 27.4% 26.9% 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 December 31, 2020 25 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 12 months 2 years 3 years 5 years 10 years Since Inception Orange County Sanitation District Liquid ICE BAML 3-Month US Treasury Bill Index 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 0.03%0.87%1.64%1.73%1.31%N/A 1.12% ICE BAML 3-Month US Treasury Bill Index 0.03%0.67%1.47%1.60%1.20%N/A 0.99% 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 includesinterestearnings,realized and unrealized gains and losses in the portfolio. Investment Performance Orange County Sanitation District Liquid As of December 31, 2020 26 Important Disclosures 2020ChandlerAsset Management,Inc,An IndependentRegisteredInvestment 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 marketvalue,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 inItem5of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return.The deduction of advisory fees lowers performance results.These results include the reinvestment of dividends and other earnings.Past performance may not be indicative of future results.Therefore,clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.All investment strategies have the potential for profit or loss.Economic factors,market conditions or changes in investment strategies,contributions or withdrawalsmay materiallyalter the performanceand 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 managementfee,theincurrence of whichwould have theeffect of decreasing historicalperformance results.It isnot possible to invest directlyin 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 andtheir respective third party suppliers disclaim anyand 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 includedin,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 theindexdataoranycomponentthereof,and the indices and index data and all components thereof are provided on an "as is"basis and licensee'suse it at licensee's own risk.ICE data,its affiliates and theirrespectivethirdpartydonotsponsor,endorse,or recommendchandlerassetmanagement,or any of itsproducts orservices. 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 tobe 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 offutureresults.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 asubstitutefortheexerciseoftheirownjudgment. 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 theborrowermaynotbe 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 declinedue toeconomic conditions,especiallyduring periods of rising interestrates. Ratingsinformation have been providedby Moody’s,S&P andFitch through data feeds we believeto be reliable as of the date of this statement,howeverwe cannot guaranteeits 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 andtimelypaymentof both principal and interest and carries a AA+/Aaa/AAA by S&P,Moody’s andFitch respectively. As of December 31, 2020 27 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 anewlyselected issue.The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to,but not beyond,three months from the rebalancing date.(Index: G0O1.Please visitwww.mlindex.ml.com formoreinformation) 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,includingUSTreasury,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&PandFitch).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 atpointofissuance,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 moreinformation) 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,USagency,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, qualifyingsecuritiesmust 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 minimumamountoutstandingof $1 billion forUS Treasuries and$250millionfor all othersecurities.(Index:BVA0.Pleasevisit www.mlindex.ml.comformoreinformation) As of December 31, 2020 28 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.